International Fleet World July 2015

THE NEW SEAT IBIZA INFINITELY CUSTOMISABLE

EASY CONNECT WITH FULL LINK

CONNECT LOGO DETAIL

SEAT DRIVE APP

The new SEAT Ibiza offers your business more connectivity, colour choices, safety features and engine options than ever before!

SEAT FOR BUSINESS

TECHNOLOGY TO ENJOY

CAN A GOODVALUE CAR BLOW YOUR MIND?

The new KARL

Design and functionality at its best.

Meet the brand-new KARL! With up to 5 doors, 6 airbags, Park Assist, Hill Start Assist and best-in-class rear seat roominess – all German engineered. Find out more on opel.com

Fuel consumption in l/100 km: urban 5.6–5.4, extra-urban 3.9–3.7, combined 4.5–4.3; CO2 emissions combined 104–99 g/km.

contents THE NEW SEAT IBIZA INFINITELY CUSTOMISABLE

EASY CONNECT WITH FULL LINK

CONNECT LOGO DETAIL

SEAT DRIVE APP

The new SEAT Ibiza offers your business more connectivity, colour choices, safety features and engine options than ever before!

SEAT FOR BUSINESS

TECHNOLOGY TO ENJOY

Publisher Jerry Ramsdale jerry@fleetworldgroup.co.uk

16 Leasing mobility solutions for fleets.

22 Autonomous driving in action.

28 David McGonigle of Mazda Europe.

49 Renault’s New Kadjar on the road.

Editor John Kendall john@fleetworldgroup.co.uk Deputy Editor Alex Grant alex@fleetworldgroup.co.uk Business Editor Natalie Middleton natalie@fleetworldgroup.co.uk Features Editor Katie Beck katie@fleetworldgroup.co.uk Fleet Consultant Ross Durkin ross@fleetworldgroup.co.uk Sales Director Anne Dopson anne@fleetworldgroup.co.uk Sales Executives Darren Brett darren@fleetworldgroup.co.uk Claire Warman claire@fleetworldgroup.co.uk Circulation Tracy Howell tracy@fleetworldgroup.co.uk Dawn Mitchell dawn@fleetworldgroup.co.uk

04 Fleet Review John Kendall on mergers, autonomous driving and lowering CO2.

06 Inside Knowledge Possible FCA alliances and the effect on the fleet industry.

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

16 Management How to make operational leasing work for your fleet.

Head of Production Luke Wikner luke@fleetworldgroup.co.uk

20 RVs European Insight: Analysing trends in the French leasing sector.

Designers Tina Ries tina@fleetworldgroup.co.uk

22 Technology Experiencing autonomous driving at first hand in Nevada.

Samantha King sam@fleetworldgroup.co.uk

26 Technology Why connectivity represents the future for fleet vehicles...

28 Interview David McGonigle of Mazda Europe on its dealers’ revitalisation.

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

30 Interview Hyundai’s Chan-Uk Jun on the challenges of growing the brand.

32 Fleet Focus RUSSIA: In a struggling economy, the outlook appears uncertain...

38 Show Review Highlights from the Fleet World Fleet Show 2015 at Silverstone.

40 International Fleet Academy Advice for developing a global fuel strategy.

42 Profile How Nissan’s diverse product range is targeting worldwide growth.

STAG Publications

46 Launch Report Toyota Avensis / Mazda CX-3 / Volvo XC90 / Renault Kadjar. ®

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

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

internationalfleetworld.com / 03

fleet review

This month, editor John Kendall discusses the reality of reducing CO2 emissions, autonomous driving in the real world and mergers...

CO2 reductions?

Autonomy concerns

Reducing carbon dioxide emissions was the focus of a European Commission conference in Brussels in June, ‘Driving Road Decarbonisation Forward’. Commissioner Miguel Arias Cañete told the conference that a new car in Europe is 22% more efficient than in 2007 and a new car in 2021 should be 40% more efficient. His comments followed a G7 summit in Germany which affirmed a commitment to limiting global warming to 2ºC and called for a complete decarbonisation of the global economy this century. This won’t be easy for a world that has been dependent on energydense, carbon-rich fuels for the last few centuries, but is it realistic?

ACEA, the European Automotive Manufacturers Association, says that the automobile industry is committed to playing its part. The organisation says that, “Despite the impressive CO2 reductions for new vehicles, progress in reducing overall road transport emissions has not followed the same pace.” That’s partly because many older vehicles remain in use, inevitable as the recovery from the European financial crisis is still proceeding. ACEA reckons that among the other issues that need to be considered are the carbon content of fuels, driver behaviour, infrastructure and the potential for intelligent transport systems (ITS). We know that electric vehicles are the most likely long-term solution, but we need progress in generating the huge quantities of electricity required from carbon-free sources.

Part of the contribution from the automotive sector is likely to involve partly removing control of driving from drivers. A driver can make a huge impact on fuel consumption and autonomous driving could help to reduce fuel consumption.

We carry a report on an autonomous driving exercise in the US in this issue. The technology is already there, we all experience times when we would prefer to sit back and let the car drive us home, but there are still legal barriers to be dealt with and still questions over who would be in control of the vehicle.

04 / internationalfleetworld.com

Potential mergers Fiat Chrysler Automobiles (FCA) may not have persuaded GM that a merger was a good idea, but FCA chief executive officer Sergio Marchionne believes and has stated for some time that further mergers are inevitable. Part of this is because global car sales are slowing down and manufacturers can’t rely on continued sales growth in one region to offset slow growth elsewhere. The switch away from carbon-based fuels is going to need considerable investment, which is difficult for companies facing declining profitability. Analysts seem to agree with Marchionne. The way ahead will be more cooperation and more mergers.

Sergio Marchionne CEO of Fiat Chrysler Automobiles

visit internationalfleetworld.com

Challenges Solutions Progress Mobility has to keep moving – to keep pace with changing times. In light of issues ranging from climate change and a decline in natural resources to traffic jams in urban areas, we all need to go back to the drawing board and find new mobility options that are not only efficient, but also sustainable. The AlphaCity Corporate CarSharing concept and the AlphaElectric eMobility solution were just the first steps in Alphabet’s long-term strategy. Experience the future of flexible fleet management now.

Business Mobility. Tailor-made for you at www.alphabet.com

inside knowledge

When two become one...

With FCA’s recent merger rumblings, Frost & Sullivan research analyst automotive & transportation, Manish Menon, analyses the future for automotive alliances...

“

Okay FCA, just stop!” was how General Motors (GM) GMC. Factoring in these aspects, GM has also recently rebuffed Fiat-Chrysler Automobiles (FCA) on a undergone a major restructuring at a group level. A deal possible GM-FCA merger. FCA has lately been punchbetween GM and FCA looks highly unlikely and it showing above its weight to make overtures to numerous cases that FCA wants GM more than GM wants FCA. auto-manufacturers. FCA CEO Marchionne has repeatConsidering their strong portfolio in the small car edly expressed his opinion regarding the inevitable segment, PSA seems to be the most likely automaker consolidation in the automotive industry towards FCA should approach. A merger would help both reaping better synergies, especially when over-capacbrands to focus on their strengths, while at the same ity is a major unsolved issue. time gain sufficient market impetus for each other in Closely analysing both brands explains GM’s stance: those regions in which the other lags behind. PSA has a Just like GM, FCA has a strong SUV and LCV portfolio, rather strong small car portfolio that FCA can benefit yet with a much wider reach in the segment. With 21 from and needs to become more of a global player. models FCA produces close to 2.2 million vehicles in Together PSA and FCA can cater to their specific needs this category encompassing the Americas, Europe and of filling the gaps in each other’s portfolio. Yet a merger Asia. With 34 models GM on the other hand barely with PSA seems to be a slightly difficult proposition as manages to produce the same number of vehicles as PSA itself is struggling to recapture the market domiFCA in the SUV and LCV segment and predominantly nation they once had. caters to the Americas only.

The future is all about succeeding in the market or Comparing the small car segment and hybrid succumbing to its dynamics. There are three possibilicapabilities of the two however, we notice that FCA ties for FCA to succeed. If Marchionne is seriously significantly lags behind and finally it becomes clear considering bringing GM on board, there is a back-door why Marchionne is pushing for a merger with GM. way to do it and FCA might well be pursuing it. The Despite serving the same geographical base and second option would be to partner with tech-giants with 38 models having two more such as Google or Apple. A disrupthan GM, FCA racks up just about tor such as these is what FCA “Considering their strong needs, as it would instantaneously 2.1 million vehicles in the A/B/C segment which is less than half equip the automaker with groundportfolio in the small car of what GM produces globally in breaking technological prowess segment, PSA seems to be the same segment. A merger across automated driving, best-inwith FCA would therefore be a class connectivity/HMI among the most likely automaker big gamble for GM, as it would other things, something FCA is FCA should approach.” only benefit FCA, while at the currently not well known for. same time being a liability to GM. Thirdly, partnering with PSA seems Meanwhile, GM is trying to run lean by avoiding the to be the most logical way ahead. PSA will bring in the addition of any new factory capacity. Since 2010, GM volumes required for FCA in Europe, while FCA can has shut down operations for low-volume brands such help PSA to become a global automaker by helping the as Hummer, Pontiac and Saturn and kept alive highFrench group with its manufacturing facility and dealvolume brands such as Buick, Chevrolet, Cadillac and ership network globally, a win-win situation for both.

06 / internationalfleetworld.com

SIMPLY CLEVER

INVEST IN THE SPACE PROGRAMME.

Combined fuel consumption and CO2 emissions for the Superb model: 4.0–6.2 l/100 km, 100–165 g/km

The New ŠKODA Superb. With attractive TCO. Employees want to travel in style. The CFO wants to travel on a budget. Finally, as Fleet Manager, you can satisfy them both with the new Superb. With class-leading spaciousness and dynamic design this car is stylish yet practical. And with minimum operating costs and low emissions, it could be your most efficient employee ever. Add to it some of the finest safety and connectivity features available today, and this car is an incredible return on your fleet investment. skoda-auto.com

facebook.com/skoda

manufacturer news

Nissan leads way on CO2 reductions, reports T&E

N

issan is leading the way on improving its CO2 emis‐ sion, with a 12.1% reduction in official CO2 figures last year.

And according to Transport & Environment’s latest cars and CO2 report the carmaker has also been the best performer in driving fuel efficiency since EU CO2 limits were proposed in 2008, cutting CO 2 by an average of 5.5% annually.

Nissan is also joined by four other carmakers – Peugeot Citroën, Volvo, Toyota and Daimler – that are ahead of schedule to achieve the 95g/km target by 2021, based on past progress. Renault, Ford and Volkswagen are also broadly on schedule to meet their 2021 target.

The report also found that four carmakers – Fiat, GM, Honda and Hyundai – need to significantly accelerate progress to achieve the 2021 target, while the last three have yet to meet their 2015 targets.

First-ever petrol-powered VW Golf BlueMotion brings 99g/km olkswagen has launched its most efficient petrol VMarked Golf yet in the form of the new TSI BlueMotion. out as the first petrol‐powered Golf to be launched under the company’s ‘BlueMotion’ brand‐ ing, the new model offers official fuel consumption of 4.3l/100km along with 99g/km from the 115hp 1.0 TSI unit.

The engine is offered with both the standard 6‐ speed manual gearbox and the optional 7‐speed dual‐clutch gearbox (DSG).

Wraps come off new Opel Astra pel has revealed the new seventh‐generation Astra, which make its world premiere at the O Frankfurt Motor Show in September.

Audi to launch three new SUVs by 2020 A

udi is planning three new SUVs by the end of the decade, including a Q1 crossover, luxurious Q8 and a model with an electric drivetrain.

Revealed during the carmaker’s 126th Annual General Meeting, held in Neckarsulm, the cars are a few of the newcomers which will take its range to 60 models by 2020 – up from 52 in 2015. The company will invest €24bn in its facilities by the end of 2019, developing new technologies and increasing production capacity.

New SUV models will arrive starting with the Q1 next year, underpinned by the same platform used in the A3 and offering a crossover variant in the A1 model line.

The Q8 – which will take on the Mercedes‐Benz GL‐Class (soon to renamed the GLS) will follow in 2019 and is likely to share its platform with the new Q7 launching later this year.

There are fewer details about the third SUV, which Audi says will be a sports‐focused model featuring an electric drivetrain, due in 2018.

08 / internationalfleetworld.com

The new model is based on an all‐new light‐ weight vehicle architecture that offers more compact dimensions. Engine line‐up includes petrol and diesel units ranging from 95hp to 200hp. Addi‐ tions to the range include the new 145hp1.4‐litre ECOTEC Direct Injection Turbo, a four‐cylinder unit from the same family as the one‐litre, three‐cylin‐ der engine seen in Corsa, ADAM and VIVA. There’s also a base‐level 105hp 1.0 ECOTEC Direct Injection Turbo petrol engine and a 1.6 CDTi ‘Whisper Diesel’ range with outputs starting from 95hp.

Technology highlights include the OnStar personal connectivity and service assistant, which is available on the Astra from launch and brings a range of safety and comfort services.

For the latest news, visit internationalfleetworld.com

BMW reveals new 7 Series

MW has unveiled its new 7 Series, which gains a new B hybrid construction as well as an

updated engine line‐up and new plug‐in hybrid models.

Depending on market, the engine line‐up includes a heavily revised V8 powerplant married up with the latest version of the intelligent all‐wheel‐drive system in the BMW 750i xDrive and BMW 750Li xDrive models.

The line‐up of six‐cylinder in‐line units includes the 326hp 3.0‐litre petrol in the 740i and 740Li long wheelbase models, as well as the 265hp diesel unit in the BMW 730d and BMW 730Ld models, both of which bring improved performance and efficiency. All versions come with rear‐wheel drive as standard and diesel models are available with xDrive as an option.

There are also three new plug‐in hybrid models – the BMW 740e, and the BMW 740Le and 740Le xDrive – which arrive next year.

The 7 Series also debuts new technology including a gesture‐controlled contact‐free infotainment system and remote control parking that can drive into tight spaces without the driver present.

fleetweet a few soundbites from a month in fleet

@KPMG Twitter account of KPMG, global network of audit, tax and advisory services

74% of manufacturers are willing to spend upwards of 4% of revenues on R&D over the next year

@jonathan_burn Jonathan H Burn, senior reporter, Auto Express Magazine

It took Audi 50 years to sell 2 million cars in the UK. In China, it sold 3 million in almost half that time

@harrismonkey

Kia officially enters Mexican market

K

ia has officially launched in Mexico, one of the last remaining global markets in which it didn’t have a presence.

The carmaker has opened 21 dealerships in 10 major cities, with an additional 26 dealers expected to be in operation by January 2016 and a total of 65 dealers serving customers by 2017.

Three import models will be initially available: the Forte ('Cerato' or 'K3' in some markets) sedan, Sportage compact SUV, and Sorento midsize SUV. These will be joined by the new Optima midsize sedan in November 2015.

The company also confirmed that all Kia vehicles sold in Mexico will be covered by its seven‐year/150,000 manufacturer's warranty.

European fleets could save €28bn a year through efficiency measures

C

orporate fleet managers in Europe could save millions of tonnes of CO₂ and €28bn a year through using available efficiency measures and clean technologies. That’s according to a new report prepared for Greenpeace by analysts CE Delft.

In its report on ‘Saving fuel, saving costs’, the organisation says that 45% of the total greenhouse gas emissions from road transport in the EU come from company fleets but adds the impact of fleet managers’ purchasing decisions is far greater than this, as fleet managers control a large proportion of the supply of used vehicles in the private market.

The report – available on the Greenpeace website – covers a wide variety of different approaches to reducing fuel consumption and the potential savings available.

Chris Harris, automotive journalist

Countless Audi Le Mans victories = Meh. One Porsche Le Mans victory = Awesomeness to the power of infinity. Funny old world. (I'm happy!!)

@ACEA_eu Twitter account for the European Automobile Manufacturers' Association (ACEA)

Average new car CO2 #emissions were 123.4g in 2014 compared to 186g in 1995 - a 33.7% drop

@khaleejtimes Twitter account for Khalee Times, Middle Eastern media group

After Google, #China's web giant #Baidu to launch a driverless car #rivals

@CBCToronto Twitter account for CBC Toronto news channel

Mexico now makes more cars than Canada, a trend that's not expected to change

internationalfleetworld.com / 09

The most important meeting of 2015.

The new CLA Shooting Brake.

A Daimler Brand

Space and design meets less emission. Take a decision for comfort and an intelligent energy management. www.mercedes-benz.com/fleet

Provider: Daimler AG, MercedesstraĂ&#x;e 137, 70327 Stuttgart, Germany

environmental news

CVO Barometer shows strong fleet appetite for electromobility H

ybrid, electric and plug‐in hybrids are widely used by European fleets, with many more consid‐ ering adding the technology in the next three years, according to the 2015 research from the Corporate Vehicle Observatory (CVO) Barometer.

Conducted by Arval, the annual research interviewed over 4,500 fleet decision makers across 15 countries, discussing already deployed technologies and those being considered in the near future. The results are divided into large businesses – with over 100 employ‐ ees – and small businesses.

Hybrid technology, which is the most established in Europe and offers the greatest choice of models, continues to lead demand. Of the large businesses studied, 16% said they already have hybrids on their fleet, led by the Netherlands, UK and France, where 35%, 26% and 21% are using the technology.

Demand for plug‐ins is heavily weighted towards the Netherlands. Substantial incentives have driven 30% of large businesses to deploy plug‐ins, while 24% have electric vehicles, compared to European averages of 8% and 10% respectively. One in eight (12%) large

British fleets have plug‐in hybrids, and 10% have elec‐ tric vehicles, putting it among the most advanced markets for electromobility in Europe.

Predictably, smaller businesses have been slower to adopt new technology, but the weighting towards hybrids is less than in larger fleets. Hybrids are found on 3% of these businesses’ fleets, compared to 2% for electric vehi‐ cles and 1% for plug‐in hybrids. A further 11% are consid‐ ering hybrids, while electric vehicles and plug‐in hybrids are under consideration with 7% of respondents.

Despite limited refuelling infrastructure, hydrogen fuel cells are also beginning to account for a growing share of the vehicle mix. Europe‐wide, 1% of large and small businesses are running hydrogen fuel cell vehicles on their fleets, and Poland has proportionally the high‐ est take‐up in both cases – at 6% and 4% respectively.

The results showed electrification is overtaking the use of Compressed Natural Gas and Liquefied Petroleum Gas. Only 4% of large fleets are using each fuel type, compared to 1% and 3% among smaller businesses, and study‐wide average anticipated take‐up over the next three years was outstripped by hydrogen fuel cell vehicles.

Audi confirms electric SUV for 2018 launch udi will launch a high‐performance electric SUV in 2018, which will be one of eight new models due before A the end of the decade.

Announced during its 126th Annual General Meeting, the carmaker revealed little about the newcomer, but said it would be a sports‐focused model with an electric drivetrain, launching into the upper‐mid size SUV segment.

This suggests Audi could be working on a coupe‐like SUV based on the next Q5, though it’s unclear whether the drive‐ train will be fully electric or a plug‐in hybrid or range‐exten‐ der with an electric four‐wheel drive system.

Both technologies have been demonstrated in concept vehicles and production models. A fully electric four‐wheel

12 / internationalfleetworld.com

drive SUV, meanwhile, would offer a unique rival to the forthcoming Tesla Model X. Audi is investing €24bn in its facilities and staff in the meantime, and the eight new models will include two further SUVs in the Q range, beginning with the Q1 next year.

The Q1 will share its platform with the A3 and marks Audi’s entry into the hotly‐contested compact crossover segment, while the Q8 will give Audi a rival to the Mercedes‐ Benz GL‐Class (soon to be renamed GLS‐Class), when it completes the SUV range in 2019. In both cases, platform sharing would enable Audi to equip them with an e‐tron plug‐in hybrid drivetrain.

For the latest EV news, visit evfleetworld.com

Volkswagen to begin EV production in China

V

olkswagen Group has struck an agreement to produce its first electric vehicles in China as part of its ongoing joint venture with SAIC Motor Corporation.

Its factory in Anting, west of Shanghai, will now be expanded ready to accommodate the new technology, with production of an electric version of the C‐segment Lavida – its biggest‐seller – due to begin in 2017.

With diesel take‐up at only 1% in China, plug‐ins form a large part of Volkswagen Group’s plans to meet the Chinese government’s 95g/km average CO2 cap by 2020. A range of 20 electric and plug‐in hybrid vehi‐ cles will launch “in the near future”, the manufacturer said in May. Anting, also confirmed for a C‐segment hatch from 2016, will be upgraded for electric vehicle production and Volkswagen said it will expand its research and development expertise in China, including fuel cell and plug‐in hybrid technology.

Volkswagen Group has plans to invest €22bn in its Chinese joint ventures by 2019. This latest announcement comes as part of this investment.

First Autobahn hydrogen station goes live G

ermany’s first hydrogen filling station on the Autobahn network is now open, beginning what will become a nationwide roll‐out of 50 such sites, connecting the country’s biggest cities.

Located at the Geiselwind truck stop, on the A3 between Würzburg and Nuremberg in Southern Germany, the €250,000 site is a collaborative installa‐ tion between Daimler, Linde and Total. Once complete, the network will enable hydrogen fuel cell electric vehicles to travel throughout Germany – already one of Europe’s most advanced markets for the technology.

Seven of Germany’s 18 hydrogen stations are operated by Linde, and this will be one of 20 installed as part of the ongoing partnership with Daimler. Its loca‐ tion was chosen because German truck stops are accessible from both sides of the Autobahn, as well as via local roads, reducing the investment needed to deploy the network nationwide.

EV 30 in numbers

Source: BMW UK

BMW i3s on DriveNow’s London car sharing fleet, said to be the city’s largest EV fleet.

in brief Ford shares electric vehicle patents Ford has made a selection of its 650 elec‐ tric and hybrid patents available via license to its competitors, and hopes to to accelerate research and development.

Tesla Motors shared its EV technology last year, while Toyota opened its hydrogen patents in January, but Ford is the first to charge rivals a fee for the information.

Addison Lee acquires Climatecars Addison Lee launched Addison Lee Eco in February 2015, adding 350 hybrid vehi‐ cles to its 4,800‐strong fleet. Climatecars, which has over 650 business customers across Greater London, already has an all‐ hybrid fleet of 115 vehicles, which will be added to the company's corporate, VIP and international divisions.

U.S. Blink charging network targets fleets ChargePoint has upgraded its Blink Network charging points in the United States to include mileage tracking for fleet operators. Introduced via soft‐ ware update and based on feedback from customers, the company says it will enable fleets to track charging frequency, energy consumption and driving trends remotely.

EVtweet of the month @MAC_europa A new car today in the EU is 22% more efficient than in 2007.

Targets work.

€28

Annual cost savings for European fleets if they switch to plug-in vehicles, according to analysts CE Delft.

Source: Greenpeace

internationalfleetworld.com / 13

industry news

New Ibiza launched S

EAT’s new Ibiza range will go on sale in July with new engines, more safety features and a new range of connectivity and infotainment systems. SEAT has joined with Samsung to develop connectivity solutions which will initially see the Samsung Galaxy A3 offered with the pre‐installed SEAT ConnectApp in over 35 countries. The new Ibiza is the first SEAT model to be offered with ‘powered by Samsung’ connectivity.

This system uses MirroLink integration with Android smartphones. ‘Read to me’, and ‘Voice Reply’ allow emails, text messages and Facebook or Twitter account content to be read out using a voice synthe‐ sizer and for a reply to be dictated in return.

Apple iOS devices will not be excluded. Using SEAT’s Full Link connectivity enables iOS devices to be connected with phone, message, music and maps controlled from the Ibiza touchscreen. Other func‐ tions are due to be added later.

New Ibiza gains new headlamps with LED daytime running lights, new 16 and 17‐inch wheels and two new paint colours. New colour packs allow a degree of individualisation.

Additional safety equipment includes a drowsiness warning system, and multi‐collision brake, which automatically slows the vehicle following a severe collision. Where the airbag was activated, the elec‐ tronic stability programme will apply the brakes and the hazard warning lights will be activated.

New petrol and diesel engines, already in use in other VW Group models are introduced. This includes new three‐cylinder petrol and diesel engines. 1.0‐litre petrol engines produce 75, 95 and 110hp, while the new 1.4TDI diesels offer 75, 90 and 105hp. The 75hp diesel emits 88g/km CO2 on the EU combined cycle and the 95hp 1.0 TSI engine 94g/km.

Enterprise Holdings expands into Saudi Arabia nterprise Holdings has expanded into the King‐ E dom of Saudi Arabia and the wider Arabian Peninsula through a partnership with the Al Jomaih Group, one of the country’s largest industrial and consumer businesses.

The newly created vehicle rental business, Al Jomaih Auto Rental (Ajar), will open a network of branches at major airport, city and community locations in Saudi Arabia throughout 2015.

The company, which will operate the Enterprise‐ Rent‐A‐Car, National Car Rental, Alamo Rent A Car and Ajar brands, also intends to sub franchise across the states of the Gulf Cooperation Council (United Arab Emirates, Bahrain, Kuwait, Oman, Qatar) and the Levant region (Jordan and Lebanon).

ICC partners with Novatel Wireless for new EMEA telematics solution

ehicle‐to‐business technology provider, In‐Car V Cleverness has teamed up with Novatel Wireless to offer a new telematics solution for fleets.

The new solution will be deployed in the UK in May 2015 and will be commercially available throughout Europe, the Middle East and Africa (EMEA) for commer‐ cial and consumer telematics markets, where growth is expected to increase considerably.

Martin Bramwell, MD of In‐Car Cleverness, said: “With Novatel, we can now offer unrivalled pinpoint vehicle tracking, precision accident detection and accurate driver behaviour profiling which gives our offering the competitive edge we were looking for.”

New Alphabet solution highlights fleets’ potential to go electric lphabet has launched a new tool that can identify A where fleets can introduce electric vehicles in line with their individual mobility needs.

The Electrification Potential Analysis (EPA) tool forms part of the firm’s AlphaElectric EV consulting approach and uses real‐life client data supplied by removable loggers that are temporarily fitted to vehicles to record data such as speed, distance travelled, acceleration behaviour and parking. The information gathered reveals the total fleet energy consumption and CO2 emissions, and can be used as the basis for an eMobility proposal by Alphabet.

14 / internationalfleetworld.com

The new Hyundai i30 and i40

Business travel redefined.

The striking new Hyundai grille signals a significant upgrade in the world of business travel. Both cars offer refined performance from engines that deliver an optimum balance of power and efficiency. There’s also the availability of a 7-speed dual-clutch transmission, heated and ventilated front seats, Bi-Xenon headlamps and other user-friendly technologies.

Factor in low cost of ownership, and even your finance department will appreciate the upgrade. The Hyundai i30 and i40. Expect more.

Hyundai i30: Fuel Consumption 3.6 - 7.3 l/100 km, CO2 Emissions 94 - 169 g/km. Hyundai i40: Fuel Consumption 4.2 - 7.5 l/100 km, CO2 Emissions 110 - 176 g/km.

The 5-year unlimited mileage warranty is valid in all EU member states + EFTA. Warranty is subject to local terms and conditions. For taxi or rental usage model specific restrictions apply. For more information, visit www.hyundai.com/eu

MANAGEMENT Operational Leasing

“In the mature markets additional growth will come from enhanced services and insurance offerings around the core leasing contract.�

LeasePlan 2014 annual report

16 / internationalfleetworld.com

Diverse markets diverse needs The market for operational leasing is changing and companies need to listen to what emerging markets need, reports Steve Banner.

W

estern Europe is a mature market so far as opera‐ tional leasing and major fleets are concerned, but there are still opportunities for growth. They lie with small to medium‐size busi‐ nesses (SMEs) that are becoming increasingly attuned to the benefits that full‐service leasing can deliver, says Pascal Serres, deputy chief executive officer at ALD Automotive.

In emerging markets however, such as those in South America, there is still plenty of scope for expansion with big corporate clients’ he believes. ALD has already detected a trend in Brazil for exam‐ ple to move vehicles off company balance sheets and switch to opera‐ tional leasing instead.

Growth in emerging markets

SME is key sector

“As a consequence we’re witnessing an increase in the demand for operational leas‐ ing of well above 20% on a yearly basis in some emerging countries,” Serres reports.

“The new and emerging leasing markets provide the most growth poten‐ tial as the benefits of leasing rather than purchasing vehicles take hold,” says LeasePlan in its 2014 annual report.

“Additionally, large multinational organi‐ sations operating in these countries are increasingly looking for co‐ordinated, global fleet management.

“In the mature markets additional growth will come from enhanced services and insurance offerings around the core leasing contract, as well as from the SME sector,” it continues. “Further consolidation in the mature markets is also expected.”

“SMEs offer major potential that has yet to be fully realised if indeed it has been realised at all,” says Carsten Kwirandt, head of marketing and business development at Alphabet International. “Private leasing is another area of potential growth.”

Attuned to the growth opportunities afforded by SMEs in certain key countries, Arval reports that its SME Solutions oper‐ ation leased out 150,000 vehicles in 2014.

Dedicated to international corporate accounts, its International Business Office achieved exactly the same level of success.

Even troubled Russia generated growth for Arval in 2014, a year that saw its world‐ wide leased fleet expand by 6% to 725,000 vehicles. It saw its Russian activities grow by 13% while at the same time enjoying increases of 18% in Brazil, 21% in

internationalfleetworld.com / 17

→

MANAGEMENT Operational Leasing

Diverse markets diverse needs and a healthy 27% in Turkey. → Hungary Arval’s Turkish business has been boosted by the cross‐selling of other financial products to the corporate sector in conjunction with BNP Paribas, its owner. The same policy has been adopted in Morocco and Poland as well as in more‐mature France, Belgium and Italy.

Building on existing business Following clients you already have a rela‐ tionship with as they expand around the globe can pay dividends too.

If Serres and his colleagues work with a company in a mature market and become aware that it also has an opera‐ tion in a market that is rather less mature then they will seek to persuade it to let them service that operation too. Having established a bridgehead in the country concerned they will then seek to persuade other, locally based, fleets to use their services as well.

Sounds easy? “We’ve got around 20 countries on our global shopping list,” says Serres – but in reality it can be tough going with many years of hard work required.

For a start, operational leasing requires a comprehensive support network of franchised dealers, well‐equipped inde‐ Pascal Serres, deputy chief executive officer, ALD Automotive

18 / internationalfleetworld.com

pendent workshops with trained techni‐ cians, and fast‐fit tyre, exhaust and battery operations. Such support is patchy in sub‐Saharan Africa with the exception of South Africa, which is one among many reasons why operational leasing has yet to gain a foothold there.

“Some of the countries next‐door to South Africa are starting to show poten‐ tial though,” he says.

Cultural differences Then there are differences in cultural attitude to be borne in mind, not to mention local rules, tax regimes and the challenge posed by indigenous leasing companies that may not welcome outside competition.

Japan and South Korea cannot be classed as emerging markets, yet there ought to be potential in both countries.

Incomers may find it difficult to unlock however, says Serres.

“They are dominated by strong finan‐ cial and industrial groups that take 70% to 80% of the available business,” he points out. Their complex web of inter‐ locking share‐holdings is difficult for third parties to cut through.

“China is the biggest car market in the world, it cannot be ignored and we’ve been active there for eight or nine years,” Serres continues. “It is still the case though that company cars tend to be the preserve of top executives and have to be provided with a driver. You have to deal with some demanding regulations, there are constraints on the availability of licence plates and over‐ seas organisations like ours have to work with a local partner.

“You’re also competing with cheap public transport, and that includes cheap taxis,” he continues. “As a consequence we only have a comparatively‐modest 3,000 cars in China and we’re close to being the operational leasing market leader.

“There are now Chinese companies that are considering supplying ordinary members of staff with cars but it may take time for the idea to become accepted.”

Emering markets bring challenges Neighbouring India is a more mature market and an easier one to operate in says Serres but it is one that throws up its own challenges.

“Finance leasing dominates and if anybody has a car and wants to dispose of it they tend to sell it to family and friends,” he says. “We’re introducing products there but it is slow going and there are all sorts of different local state taxes you have to contend with.

“That said it is an easier market to compete in than China.”

ALD saw double‐digit growth in India in 2014 adding 1,500 new contracts, an increase of almost 15%. Overall ALD grew its worldwide fleet to over 1.1m vehicles last year, a boost of 9.8%, so in percentage terms India was one of the company’s star performers.

Other stars included Mexico, which experienced a 25.6% rise in business last year. ALD’s Brazilian operation expanded by nearly 30% with 4,400 vehicles added to the fleet despite the ups and downs of the country’s economy.

“Inflation is an ongoing problem in Brazil, sticking stubbornly above target levels and growth prospects face constraints in the form of tight labour market conditions, weak investment and a burdensome regulatory environ‐ ment,” says White Clarke Group execu‐ tive vice president, Brendan Gleeson.

“Tax regulations, high tax rates and bureaucratic red tape have been persist‐ ent barriers to investment.”

Local competition Staying with emerging markets, Turkey has the advantage that it is familiar with the concept of the company car but incoming leasing companies face stiff competition from local rivals who occupy the top five slots.

“They tend to set the rules,” Serres remarks. “It’s a complicated country.”

Incomers are making some headway however. February saw LeasePlan become the 100% owner of LeasePlan Turkey having acquired the minority 49% stake in

LPD Holding AS, LeasePlan Turkey’s hold‐ ing company, from Dogus Group.

“We are becoming increasingly successful in promoting the advantages of operational leasing in Turkey and will continue to introduce new products and services to the market,” says LeasePlan Turkey managing director, Turkay Oktay.

“Looking ahead, we aim to grow our market share further, maintaining a strong focus on customer satisfaction.”

Last year saw LeasePlan expand its global footprint even further with the opening of LeasePlan Canada through its Canadian partner Foss National Leasing.

Like ALD, LeasePlan believes that SMEs represent a valuable opportunity for growth, while stressing that there are still some major companies in key Euro‐ pean markets that have yet to appreciate the benefits operational leasing can bring. Its expanding SME portfolio now embraces over 235,000 vehicles and it has set up a specialist team tasked with developing, implementing and managing global SME strategy.

Central and Eastern Europe Arval’s growth in Hungary last year high‐ lights the opportunities that still exist in Central and Eastern Europe.

Those opportunities are not lost on Netherlands‐based Business Lease Group, which acquired Fleet Management Serv‐ ices (FMS) in Romania late last year. One of the pioneers of operational leasing and car fleet management in its home country, FMS has over 3,000 contracts in place which makes it Romania’s largest independent provider according to Business Lease.

“With a strategic location, a growing economy, a large market and an educated workforce with excellent language skills, Romania offers great potential for inter‐ national companies,” says Business Lease director of business development, Philip Aarsman. The company is active in Slova‐ kia, Poland, Hungary and the Czech Republic too.

“Eastern Europe is proving to be one of the leasing industry’s high spots,” says a White Clarke spokesman.

Mobility solutions Just as younger drivers in Western Europe appear to be as interested in mobility solutions which involve public transport, car‐sharing and modes of sustainable travelling such as cycling as they are in exclusive use of a company car, the same may be the case with at least some of their coun‐ terparts in emerging markets.

That could work to the advantage of companies such as Alphabet, which has made AlphaCity, its leasing‐based corporate car‐sharing solution, avail‐ able in ten European countries. AlphaElectric, its eMobility solution, has now been rolled out to 14 – Australia, Italy and Austria all joined the party in 2014 – and Alphabet aims to integrate electric vehicles into AlphaCity.

Companies can also opt for the Alphabet Mobility Budget. Currently avail‐ able in the Netherlands, it allocates a set sum to employees that they can spend flexibly on the mode of travel of their choice: everything from car‐ sharing to train tickets.

It is a concept that Alphabet proposes to roll out in other markets. “We are moving away from the classic company car and towards holistic corpo‐ rate mobility solutions,” says chief executive officer, Ed Frederiks.

It is a trend confirmed by LeasePlan. Embracing 20 countries worldwide, its MobilityMonitor survey shows that nearly 10% of company car drivers whose vehicles are leased are interested in corporate car sharing.

Sharing brings administrative challenges embracing everything from cleaning (who left the vehicle dirty?) and damage (who put a dent in it?) to responsibility for fines (who rocketed past a speed camera at twice the speed limit?) and keeping track of the keys. In response, LeasePlan will be launching a new car‐sharing programme later in the year.

Car or smartphone?

“We see that younger generations are relatively more willing to share cars. And with more and more people living in cities, the interest will increase in the coming years,” LeasePlan’s chief commercial officer, Nick Salkeld says.

“When I was 18 I wanted a car and a motorcycle but today’s 18‐year‐olds want an iPhone,” observes Alphabet’s Kwirandt. “And what many busi‐ nesses want nowadays is much more mobility for all of their employees, not just those who are allocated a company car.

“As a consequence we’re now dealing with the corporate social respon‐ sibility manager and the human resources manager as well as the chief executive officer, the chief financial officer and the fleet manager.

“It does not mean all the company cars are being got rid of but what it does mean is that there is a move away from assets and towards services; and we’re positioning ourselves as a one‐stop‐shop.”

internationalfleetworld.com / 19

RVs

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

European Insight: Trends in the French Leasing Sector The French contract hire sector looks buoyant, with RVs improving, although rental rates have risen, reports Experteye.

C

Leasing index survey, which tracks forecasted residual values (RV), servicing, maintenance and repair (SMR) costs and rental rates in six European countries using data supplied by major leasing companies.

More recently, the picture in France looks quite settled.

Over the last six months, rental rates have crept up by only +1.1% and have started falling in the latest quarter, with a ‐1.7% reduction in leasing prices since March this year.

French optimism in future residual values has also subsided, with forecasted RVs moving by only +1.7% in the last six months and +0.5% for the quarter. SMR budgets

ompanies operating vehicle fleets in France have suffered a +5.4% increase in rental rates over the past year. New car prices are up by +4.8% in the last 12 months, and the servicing, maintenance and repair (SMR) budgets built into contract hire rentals have also gone up by +3.5%; both of which impact the cost of leasing.

Yet the French contract hire sector appears positive about the economy and future used vehicle market, with forecasted residual values improving by +2.5% since June 2014, having risen steadily over the last two years.

The figures come from the latest Experteye European

CHANGES IN RV FORECASTS, SMR COST FORECASTS AND LEASE RENTALS

Forecast Residual Values

Forecast Service, Maintenance and Repair Costs

Current Rental Rates

3-month change 12-month change 3-month change 12-month change 3-month change 12-month change France

+0.5%

+2.5%

-0.7%

+3.5%

-1.7%

+5.4%

Germany

+0.8%

+3.9%

-7.1%

-1.1%

-3.0%

+8.1%

Italy

+2.5%

+5.6%

+0.8%

-4.7%

+0.6%

-0.3%

Portugal

-4.0%

+1.1%

-2.6%

-4.9%

+1.5%

-3.6%

Spain

+1.3%

+2.6%

-3.9%

+3.5%

-1.0%

+5.8%

UK

+1.1%

-1.5%

-1.0%

+4.1%

-2.7%

+3.5%

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

• Twelve-month comparisons show change since June 2014.

• Three-month comparisons show change since March 2015.

20 / internationalfleetworld.com

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

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

Market summaries – 3 and 12 months to May 2015 FRANCE: Rental rates have gone up by +5.4% in France over the last 12 months, but are down by ‐1.7% for the latest quar‐ ter. French SMR budgets built into contract hire rentals rose by +3.5% over the last 12 months, but fell by ‐0.7% in the last three months. After a year that saw forecasted RVs improve by +2.5% they have only moved by a very small +0.5% since March 2015.

appear to be fluctuating, and since the back end of 2014 they have fallen by ‐5.3%, but have only shifted by ‐0.7% in the last three months.

Yet Experteye’s managing director, Rick Yarrow, explains that for companies operating fleets in France, fortunes currently depend on the types of vehicles on lease.

“If you are a French business operating a fleet of light commercial vehicles (LCVs), you will have enjoyed a far better time of late than those with car fleets,” explained Mr Yarrow.

“Compared to the +5.4% rise in car leasing, LCV rental rates have dropped by ‐2.8% in the last year, and are down by ‐9.6% over the last two years; a significant saving for commercial vehicle operators.

“Nevertheless, French car fleet operators are not suffering the worst price rises across the nations we survey,” continued Yarrow. “In Germany, contract hire rates have shot up by +8.1% in the last year and in Spain they have risen by +5.8%.

“In the UK prices have risen by slightly less than in France (+3.5%), and in Italy and Portugal rental rates have come down by ‐0.3% and ‐3.6% respectively.”

Interestingly, French forecasted residual values as a percentage of new car prices have still not recov‐ ered since the recession. Part of the Experteye survey creates an index which tracks movements in RVs each year, and after six years, France’s RVs remain below the ratios reported back in 2009.

“On the 1st January 2009 we gave all forecasted residual values a nominal index of 100 and have been tracking their movements as a proportion of new car prices ever since,” said Yarrow.

“Six years on and France’s small, medium, large and luxury cars all sit below the index they started with, only executive models producing stronger forecasted RVs now than they did back then.”

GERMANY: German fleet operators have suffered the largest annual hike in monthly rentals of all nations surveyed, with a +8.1% price rise since June 2014. In the last three months, however, German contract hire rentals have seen the greatest fall with a ‐3% reduction in rental rates. SMR budgets have reduced by ‐7.1% since March 2015, following a year that saw a ‐1.1% drop. Forecasted resid‐ ual values improved by +3.9% for the year, but have settled to +0.8% in the last three months.

ITALY: With forecasted RVs rising by +5.6% in the last year, Italy is the most optimistic of all nations surveyed. They remain in 1st place following a +2.5% RV improvement since March 2015. Italian SMR budgets rose by a small +0.8% in the last quarter after a year that saw them fall by ‐4.7%. Rental rates were down by ‐0.3% since June 2014, but up by +0.6% for the quarter.

PORTUGAL: Forecasted residual values have fallen by ‐4% in the last quarter, the biggest reduction of all nations surveyed

by Experteye. This follows a year that had seen RVs rise by +1.1%.

SMR budgets dropped by ‐4.9% in the last 12 months, and ‐2.6% during the most recent quarter. Rental rates have come down by ‐ 3.6% for the year but rose by +1.5% this quarter.

SPAIN: Rental prices rose by +5.8% in Spain during the last 12 months, but have fallen by ‐1% in the latest quarter. SMR budgets have seen a swing, with a +3.5% increase for the year turning into a ‐3.9% reduction this quarter. Forecasted residual values are up by +2.6% since June 2014 and +1.3% since March this year.

UK: In the last year, the UK is the only nation surveyed to have seen forecasted residual values fall (‐1.5%), however they recov‐ ered in the last quarter with a +1.1% strengthening. Rental prices fell by ‐2.7% in the last three months following a year that saw a +3.5% price rise for UK fleet operators. SMR budgets were up by +4.1% since June 2014, but down by ‐1% since March this year.

internationalfleetworld.com / 21

TECHNOLOGY Autonomous Driving

Rise of the machines Automotive technology can take tasks from drivers and give them to computers. How safe is this asks Ian Norwell, in Nevada on the first licenced autonomous truck?

A

utonomous cars have some test history in Japan and in the US, but large vehicles have also been quietly assembling the technology bank required to join the club. For the general public, a compact car driving itself is an exciting novelty, and a glimpse into the future. But a 44‐tonne autonomous driv‐ ing (AD) truck, operating in the same way raises fears as well as eyebrows.

Most of the major truck makers are looking at autonomous trucks as a possi‐ ble addition to the ‘platooning’ idea, where several heavy vehicles run together in a train to save fuel. But platooning is fraught with public acceptability issues, and the infrastructure investment to segregate them from regular traffic would be huge. The idea has been around for over twenty years, but most industry watchers think that it carries too much baggage, for now anyway. Enter, stage left, the autonomous truck.

Legislation For the heavy truck industry, the legisla‐ tive burden of successive Euro emission levels may have drained their R&D budg‐ ets, but they’ve not been idle. In fact, while they have been led by legislators to the cleaner engines table, those tables have been turned when it comes to safety. From November registrations onward, all heavy trucks sold in the EU must have AEBS (advanced emergency braking systems) and LDW (lane departure warning).

We can’t imagine that this legislation would have been framed if truck makers had not first invented the devices. But when it comes to autonomy, there are legal bars to putting vehicles on the road in Europe that do not have the driver in control. For ‘control’ read steering, because the myriad cruise control and braking systems that are already in place do not clash with this legislation.

The primary barrier is the 1968 Vienna

22 / internationalfleetworld.com

Convention on Road Traffic. That was writ‐ ten when AD was the stuff of science fiction, and it’s clearly in need of an update. But modifications have, and continue to be made to this legislation, so it is not a closed door. UN/ECE Regulation R 79 for steering systems made space for park assist systems, but limiting the speeds to 10km/h.

Demo Despite this, Daimler Trucks ran a pre‐ IAA event in July 2014, deploying Daim‐ ler board members, transport ministers, parliamentary representatives, university professors, and the private use of a long stretch of newly‐completed A14 motor‐ way near Magdeburg in Germany, where they showcased their latest technology ‐ the AD truck. A mix of cameras and radar sensors are used to keep Daimler’s proto‐ type AD truck on course. With predictive powertrain control (PPC) looking 3km ahead, a radar sensor in the grille scans the immediate road ahead. It has a range of 250m, scanning an 18º segment, with an additional short‐range sensor cover‐ ing 70m and a 130º view. The radar sensor is already used in proximity control and electronic brake assist (EBA).

The road is also scanned by stereo cameras (developed from the mono version in LDW) with a range of 100m, and a scope of 45º horizontal and 27º vertical. It identifies lanes, pedestrians, moving and stationary objects, the condi‐ tion of the road surface and information on traffic signs. Data from side sensors is ‘fused’ to present a complete picture, which can be shared with other AD vehi‐ cles. LDW data is used to control that vital element, steering.

Same suit, different pocket Moving the development on needs on‐ highway evaluation, mixing it with regu‐ lar traffic. And so to Las Vegas, Nevada in May 2015. It is one of 5 US States that

has passed legislation allowing AD vehicles on public roads.

With the breadth of Daimler Trucks global product portfolio, they didn’t need to jump through hoops to bring a European Actros to the US; they could use their lead‐ ing class 8 truck, the Freightliner Cascadia Evolution. So the shelves that are buckling under the weight of safety devices in the Mercedes‐Benz R&D department in Stuttgart were plundered, and the booty shipped over to Daimler Trucks North America (DTNA) in Portland, Oregon.

Like the plot of a novel, it now becomes clear that the safety devices that have been introduced over the last 15 years have been stepping‐stones to AD. Cruise control, their adaptive and predictive siblings, automated manual transmissions (AMTs), EBA, AEBS and LDW are now ready to all join hands.

Departing the Las Vegas Motor Speedway, our Cascadia tractor‐trailer combination was driven in conventional mode. At a specific waypoint on the freeway, the driver was given the option to let ‘Highway Pilot’ take over. Accepting the offer, the driver sat back, feet off pedals and hands off the wheel. We’ve driven heavy trucks that can competently drive up hill and down dale, but turning corners was a novel addition.

Wolfgang Bernhard, member of the board of management of Daimler AG, responsible for Daimler Trucks & Buses says that driv‐ ers will be able to do other work while a truck is in AD mode, and he claims that the stress currently induced by the boredom of long motorway driving shifts, will actually be reduced. We see issues here.

“Moving the development on needs highway evaluation, mixing it with regular traffic.”

→

internationalfleetworld.com / 23

TECHNOLOGY Autonomous Driving

Rise of the machines... blame game → The After being wowed by the technology, and the ceremonial screwing‐on of the first official legal AV (autonomous vehi‐ cle) licence plate by the Nevada State Governor, Brian Sandoval, there are however questions to be answered over the very nub of who is in control.

In the event of an accident, we currently look to the driver, if there is no apparent mechanical failure. Daimler says that the driver still remains in control, “We are not talking about driverless trucks,” declared Martin Daum, President and CEO of DTNA. But we do wonder how a driver can be deemed to be still in control, if he is fill‐ ing out worksheets, or booking back‐ loads – part of what “other work” might well be. We know that AEBS3 can execute

a full pressure emergency stop with no driver input, but if a driver does not actu‐ ally have his eyes on the road ahead, and one of the safety systems that highway pilot relies on fails, who would be responsible for any resulting collision?

If a driver is being encouraged to get on with ‘other work’, how culpable can he or she be? We understand that this is a development project, but there are some questions that need answering at the outset, and this is one of them.

Yes, there are autopilots on commer‐ cial aircraft, and they are accepted as part of enabling technology. But air traf‐ fic control works within minimum toler‐ ances of 1,000 feet (305m) of vertical separation, plenty of time for a pilot to act and intervene if needed. A truck’s separation from other traffic is not in

Supertruck project Also wheeled out at the Las Vegas Motor Speed‐ way was Freightliner’s answer to the challenge thrown out to the truck industry by the US Depart‐ ment of Energy in 2009. The so‐called ‘Stimulus Act’ applied to all US industry, but the truck busi‐ ness was charged with a 50% efficiency improve‐ ment in tonnes moved per litre/kilometre.

Federal funds backed the DoE’s ‘Supertruck’ project, and Freightliner’s approach was to take a 2009 Cascadia tractor as their baseline. They’ve either worked miracles, or that baseline was a poor performer, because the result is a claimed 115% efficiency gain. To be fair, they have thrown a lot of ideas and good sense at it. Adding a trailer to the equation, aerodynamics were radically improved with both wind tunnel and computa‐ tional fluid dynamics (CFD).

Other major elements were a down‐speeded engine, waste‐heat recovery (into lithium‐ion batteries) and extensive use of aluminium (cutting 1,270kg off a tractor and trailer tare weight). T J Reed, DTNA’s director of product strategy says, “There’s so much more that can be done, if legis‐ lators would work with the industry better.” He says that if the bulky exterior mirrors were replaced with cameras and interior screens, it could save as much as 1.5% on fuel.

24 / internationalfleetworld.com

that league, and we would argue that the driver’s attention needs to be directed to where the constantly changing environ‐ ment is unfolding, out on the road.

The debate will be interesting, and Daimler has moved it on in one big step.

“It remains our goal to be in a position to offer the Highway Pilot in series‐ produced vehicles from the middle of the coming decade,” declared Daum.

He’s clearly not daunted by any of the hurdles that lie ahead.

Sci‐fi movie fans may recall the words of Schwarzenegger’s Terminator. “Human decisions are removed from strategic defence. Skynet begins to learn at a geometric rate. It becomes self‐aware at 2:14 a.m. Eastern time, August 29th. In a panic, they try to pull the plug.” Of course, it could never happen with trucks.

COMMITTED TO FOCUSSING ON

QUALITY AND INCREASING YOUR SATISFACTION

DIALOGUES CONSEIL

ALD Automotive is committed to offering you the highest quality of service, allowing you to concentrate on your core business.

Going the extra mile is part of our culture.

Providing customer care processes, satisfaction surveys, drivers’ support, we make your satisfaction our top priority and ensure to be at your side wherever you need us.

www.aldautomotive.com

TECHNOLOGY Connected Cars

Connectivity

is the future Data exchange between vehicles and other information sources will play a greater part in driving in the future. Steve Banner reports.

T

echnology looks set to take more and more of the decisions made by drivers out of their hands on both safety and environmental grounds as vehicles become increasingly autonomous. Those are among the messages that could be gleaned from Continental Automotive’s Continental TechShow 2015.

Held at the Contidrom, Continental’s vast proving ground some 30kms from Hanover, Germany, it was a pick‐and‐ mix showcase of the almost‐bewilder‐ ing variety of innovations the global automotive components giant has under development.

Vehicles will increasingly be at the centre of a constant exchange of anonymised data between each other (V2V) and the surrounding infrastruc‐ ture (V2I), says Continental. As well as

ensuring that each car keeps a safe distance from its neighbour it will help drivers anticipate what they are likely to encounter around the next corner.

Also helping drivers look beyond their immediate horizon is Continen‐ tal's newly developed dynamic eHori‐ zon, which gives drivers a picture of the highway conditions they will face over the next few kilometres. “It uses the cloud to turn eHorizon’s digital map into a high‐precision and constantly up‐ to‐date information carrier,” says Helmut Matschi, head of Continental’s interior division and a member of the executive board.

It can be married to Connected Enhanced Cruise Control, another development. It allows dynamic eHori‐ zon to work with on‐board radars and cameras to ensure that a correct, safe,

“Vehicles will increasingly be at the centre of a constant exchange of anonymised data between each other and the surrounding infrastructure. ” Continental

26 / internationalfleetworld.com

fuel‐efficient speed is maintained at all times as inclines, bends and changes to the speed limit are anticipated.

“All the driver has to do is steer,” says Dr Stefan Luke, head of advanced driver assistance systems and automation.

“What we are doing is implementing another important element in the move‐ ment towards highly and indeed fully‐ automated driving.”

Those sensors may include Lidar. It measures distance by illuminating a target with a laser beam and analysing the reflected light.

“The information delivered online is always integrated with the data and sensor information available in the vehicle so that safety‐relevant systems have several redundant data sources at all times,” says Luke. “That way, we prevent actions being taken on the basis of incorrect information.”

Even when drivers assume a greater degree of control, technology will be used constantly to influence the deci‐ sions they make.

Accelerator Force Feedback Pedal is a prime example. It tells the driver when the accelerator pedal can be released and the car allowed to coast, cutting fuel usage by 2% to 3% says Continental.

It does so by using haptic feedback, which gives whoever is at the wheel the sensation that the pedal is pushing back against his right foot.

Ever accidentally gone through a red traffic light because you were daydreaming or distracted? Traffic Light Assist show the status of the light controlling the highway ahead on a display on the fascia and tells you how close you are to it; a useful reminder believes Continental and a way of reduc‐ ing the risk of collisions.

Active intervention may of course be necessary if a car is thundering towards a stationary or moving obstruction with the driver showing no intention of stop‐ ping. Continental has devised systems that will automatically bring it to a halt in an emergency and has additionally come up with Road Departure Protection.

It detects if a driver has become drowsy and is drifting out of one lane on the motorway into an adjacent one – and potentially into the path of oncoming traffic – or off the highway altogether and down a waiting embankment.

Not only does it trigger an alert, it also takes control of the steering and steers the vehicle back into the lane it should be in.

“It serves as a virtual guard rail,” says Steffen Linkenbach, head of systems and technology North America, chassis and safety division.

As the car moves back onto the right course the newly awoken driver will hopefully glance in the exterior rear‐ view mirrors.

If Continental has its way however – and the law in force in many global markets changes ‐ those mirrors will be replaced by rear‐view cameras that transmit remarkably‐clear images to screens on the dashboard. They elimi‐ nate blind spots too.

“The effects of unwanted optical phenomena such as glare and weak light can be compensated for,” says Alfred Eckert, director, advanced engineering department, chassis and safety division.

“Eliminate the mirrors and air‐resis‐ tance is reduced which in turn reduces fuel consumption,” he continues.

“Furthermore, wind flow noise at higher speeds is diminished.”

Fish‐eye cameras are at the heart of

Continental’s Surround View, which allows the driver to see everything that is going on all around the car on a dash‐ board display; a useful facility when manoeuvring at low speeds.

Continental is convinced that contin‐ ued pressure to cut emissions of CO2 and other harmful pollutants and force cars to become more frugal means that the future lies with mild hybrids, plug‐in hybrids and pure electric drives.

The pressure to cut emissions is more acute in some parts of the globe than others given the problems they face with urban air quality.

For the Chinese market Continental has come up with an electrically‐driven rear axle that combines the motor, the differential and the inverter in a single housing. It delivers a 15% weight saving, says the company, and means that all the connections that would be required if the main components were housed as sepa‐ rate units are eliminated.

Continental is also busy with 48v electrics, including a 48v Eco Drive mild hybrid. It cuts the engine when it is safe to do so to allow the car to coast to save fuel while enabling it to re‐start instantly when needed, resulting in a claimed cut in consumption of around 21% on urban journeys.

“If we rely purely on combustion engines then it will become increasingly difficult to comply with the ever‐stricter rules governing fuel consumption and CO2 emissions that are in force around the world,” warns Dr Bernd Mahr, head of the powertrain division’s hybrid elec‐ tric vehicle business unit. “By 2020 they will demand reductions ranging from 20% to 35%.”

Demanding targets – but targets the global motor industry will have to meet.

internationalfleetworld.com / 27

INTERVIEW David McGonigle, Mazda Europe

Building on re-branding Mazda is re-branding its dealer network across Europe to help retail and fleet customers to get the information they need in the digital age. John Kendall reports. azda has probably never expanded as rapidly as it is doing in 2015. This year, the company has launched revised versions of the Mazda3, Mazda6 and CX-5 SUV. It has also launched the Mazda2 and CX-3 B-segment SUV. Still to come is the new MX-5, due in the next few months.

At the same time, the company has been undergoing a re-branding exercise for its dealers across Europe, designed to make dealerships stand out more and also to respond to how customers now find information about cars they are thinking of buying.

M

Re-branding for 1,600 dealers “It’s a big project,” says David McGonigle, director sales and aftersales operations, Mazda Motor Europe, “We plan to convert every dealer in Europe in a three year time period – that’s 1,600 dealers.” The changes cover the interior and exterior of the dealerships.

“I came up with the base ideas, getting inspiration from certain retailers and certain looks and one or two things from artists,” explains McGonigle, “What we were told by the suppliers was that they had never seen a car manufacturer do this so quickly, but one of the secrets is that we’ve made it a very reasonable investment from a dealer perspective, it’s not costing them an absolute fortune. It’s designed to be big impact, low cost and in the showroom it’s designed to give a beautiful environment to give customers a really good experience.”

New logo for dealers Externally, Mazda dealers will adopt a logo that the company has been using at motor shows for a few years. This is set on a black background. The plan is that dealers and Mazda at motor shows will all carry the same branding. External décor includes aluminium mesh set on black and the dealer totem pole is

28 / internationalflfeetworld.com

“This year, Mazda has launched revised versions of the Mazda3, Mazda6 and CX-5 SUV and has also launched the Mazda2 and CX-3.”

finished in black with the Mazda logo.

Mazda recognises that some dealers may have difficulty accommodating the expanded Mazda range inside their showrooms, as the company does not specify that dealerships should have a specific floor area. But, not surprisingly, the company wants to ensure that cars on external display are Mazda models. “Basically the idea is to create a big visual impact, whether you are close or a few hundred metres away,” says McGonigle.

“Inside, we have stuck to a few principles. One is that the cars are the stars and a little bit like an art gallery, you need a fairly blank background to show the design cues of the vehicles.

Digital is part of the deal “The main piece of furniture is an ‘interaction unit’, which is where you can have your reception and you also have an area where you can have digital engagement for people to put iPads and things on the bar. We’ve done some work on digital to have interesting functionality for customers to configure cars and discover more about the features and benefits that we have in the cars which are getting fairly complex.

“It’s very important that we’ve bridged the gap between digital content and a physical unit in the showroom where people can sit, relax, have a cup of coffee and use tablet computers or whatever they wish.”

The reason that Mazda has provided the digital space in the showroom is because they have produced a series of 32 short video sequences for each car. “The reason for doing that was that there were so many

Mazda CX-3

features that it must be extremely difficult as a sales person to describe every single feature accurately and in detail,” explains McGonigle, “Depending on what the customer is interested in hearing about, having a reference digitally where you get a short video that perfectly describes the feature means that the customer doesn’t have to listen to a sales person.”

Of the 1,600 dealerships across Europe, Mazda has so far completed 400 interior revisions and 200 exterior revisions. The process will be accelerated over the next few months and several hundred dealerships are expected to be re-branded in that time, says McGonigle, “We aim to have around 1,000 completed in the next 12 months.”

Staff motivation is also part of the rationale, “We’re trying to give the people who work in the dealerships something they can be proud of,” says McGonigle, “Hopefully it influences how they engage with a customer.”

Big fleet? Small fleet?

Mazda is not generally a manufacturer that gets involved in big fleet business, unless a fleet expresses a desire to involve the company. “We’ve tried to create an environment where whether you are retail or fleet, you should be looked after in the right way,” explains McGonigle. We’re keen to continue to build the user-chooser quality fleet elements of our sales business.” Fleet demand is across the board reckons McGonigle, “We’re in a fantastic position where we have extremely high demand

across Europe, to the point that we have varying levels of waiting time. It’s a nice position. The product is being pulled by the consumer. They see the benefits; they see things that they like in our products and they are ordering the cars.

“We don’t have a European fleet team, but we do look at a number of fleet related areas to try and help the national sales companies. For example, we commission car-to-market studies, so prior to the new cars coming to market, we engage in dialogue with the product and residual value experts to try and evaluate and understand from a residual value perspective and a cost perspective if the vehicle is positioned in the right place. We do that very early so if we need to consider making adjustments then we can.

“We also commission residual value studies for each car line and continue the residual value studies through the life cycle of the car. We also co-ordinate best practice in markets on fleet, so we take some of the good things we see, especially in the sophisticated fleet markets – the UK and Germany.

The fleet segment has matured in other markets across Europe in the past few years and is catching up, so they are having to put fleet infrastructures in place as well, applying some of the things we have learned over the years in the bigger markets.”

Mazda is invited to tender for blue-chip business across Europe and although the company will respond positively, it will allow each market to respond as it sees fit. “Every market is different in terms of pricing, specification and remarketing at the end of contract.”

internationalfleetworld.com / 29

INTERVIEW Chan-Uk Jun, Hyundai Motor Europe

Re-positioning the brand Remarketing needs careful management with a fast growing brand, particularly when moving upmarket.

John Kendall reports.

yundai with sister brand Kia is one of the fastest growing brands around the world. European registrations data from ACEA shows registrations growing faster than the 6.8% average for the EU with registrations in the January to May period up 9.0% on 2014 to 189,536, giving the company a 3.3% EU market share.

The company has launched a string of new and revised products in recent months. The new Tucson was unveiled at the Geneva Show in March, set to replace the ix35. This followed the unveiling of the new Generation i20, including the coupe and revised i30 and i40 in December. The continual product development means that Hyundai Europe’s fleet re-marketing organisation has had to carefully manage the brand as it moves into premium territory. “We have been working on this for a while,” Chan-Uk Jun deputy general manager fleet and remarketing Hyundai Motor Europe, told IFW recently, “But now with the new design direction of the Hyundai Tucson, which is the third vehicle wholly under the responsibility of our chief designer Peter Schreyer, shows that the

H

30 / internationalflfeetworld.com

main purchase reason for all our vehicles will no longer be price, but design.

The last model where we changed this was the i20 and that also moves the Tucson half a level up.

“We are not competing directly with the Qashqai, we are more of an alternative to the premium brands. We are transforming from a price value brand in the first place towards a modern mainstream premium brand, where quality and design will convince the customer.

“Every mainstream manufacturer wants to be in a mainstream premium position like Volkswagen. The key difference is that we will achieve this and still make money with each car. Not even Volkswagen is able to do this.”

Hyundai also has the benefit of a new range. Currently the oldest model is the i10, launched in late 2013. “We will have renewed all the other cars by the end of this year,” adds Chan-Uk. Moving upmarket also highlights the care that is needed in managing residual values. “Overall in Europe, we are fourth in used cars,” comments ChanUk, “We have dramatically reduced our exposure in the short-term over the last

three years. We have a shortage of nearly new used cars in some markets, because the dealers also need the specification range to offer the complete range of vehicles. We are still limiting our exposure in the short term channels, which doesn’t make it easier, so there are dealers who are trying to find cars on the market so that they have the right offer in their showroom.

“We have a strong used car brand, helped by the long warranty, particularly for private customers, and a strong residual value helps as well. Therefore what we have done in the past 18 months has been to focus on customer quality, because the speed at which the brand is changing must also be reflected by the dealer network. That means that the dealer must also be able to serve other types of client. That will also affect the used car area sooner or later.

“So what I would want to see is that we have very good used car locators with search engines on the internet in every country and the right description of the product. We are not there yet, but we understand that there’s a list that we have to work on.”

New MOvaNO

we just woN Gold.

ANd GreeN. Gebrauchtwagenreport 2015 Gewinner seiner Klasse www.gebrauchtwagenreport.com

The Opel Movano is now officially a double winner: award-winning in the transporter class as vehicle with the best deKrA Mängelindex (deKrA fault index) in any mileage range in its vehicle class* and of the ‘Green Van 2015’ for outstanding eco-friendliness by the Verkehrsrundschau.

opel.com *Findings are based on vehicle inspection data from Germany.

Fuel consumption combined 9.5–6.8 l/100 km; Co2 emissions combined 249–177 g/km (according to r (eC) No. 715/2007).

FLEET FOCUS Russia

Down... but not Out The Russian economy is struggling and improvement is not likely in the immediate future. John Kendall reports.

T

hree years ago, when the Western European car mar‐ ket was still suffering from the European economic crisis, Russia offered hope for struggling European manufacturers looking for markets with growth potential.

It’s a very different picture now in 2015. The impact of eco‐ nomic sanctions following the Russian annexation of Ukraine combined with falling oil prices and the devalua‐ tion of the Ruble have combined to take their toll on the Russian economy.

CAR SALES STILL FALLING Compared with May 2014, the May 2015 car and light CV market in Russia fell by ‐37.6% while the January to May market was down by a similar ‐37.7% compared with the same period in 2014. Total sales for the period fell from 1,030,533 in January – May 2014 to 641,933 in the same period this year, according to data from the Association of European Businesses (AEB). Lada remains the strongest selling brand by a considerable margin with January – May 2015 sales down ‐29.8% compared with 2014 to 114,270.

By comparison Hyundai, in second place is down ‐7.8% to 67,155 followed by sister brand Kia in third place with sales down ‐19.0%. Renault badges many Dacia models as Renault for Russia and this has helped to make the com‐ pany the fourth best selling brand in the country, but with sales down ‐41% to 47,130, while alliance partner Nissan is also down ‐41% with sales of 41,636.

Only two further manufacturers in the top 10 are Russ‐ ian. The list is otherwise dominated by European brands, although there are a number of Chinese manufacturers rep‐ resented on the Russian market. Lifan is the highest placed as the 23rd best selling manufacturer in the Russian light vehicle sector, with Geely and Chery not far behind. Lifan sold 3,796 cars between January and May this year, a ‐55% reduction on the same period in 2014.

OPEL AND SEAT WITHDRAW, FORD RESTRUCTURES The Renault‐Nissan Alliance was one of the Western Euro‐ pean companies that became involved in the Russian market,

32 / internationalfleetworld.com

when it formed a strategic alliance with Russian manufac‐ turer Avtovaz in 2012. Under the agreement, the Renault‐Nis‐ san alliance acquired a majority stake in the alliance and Carlos Ghosn became chairman of the Avtovaz board in 2013.

Renault has maintained its involvement in the country but others have decided to pull out for the time being.

GM decided to restructure its Russian business in March this year. As a result, Opel will pull out of Russia by the end of the year and Chevrolet will scale its involvement right down. This will leave US built products, such as the Corvette, Camaro and Tahoe on sale as well as Cadillac, but the mainstream Chevrolet models, mostly sourced from Korea, will not be sold. This will see production at the GM Auto plant in St Petersburg end by mid 2015. GAZ builds GM vehicles under contract but that will also cease this year. Explaining the decision, GM President Dan Ammann said, “This decision avoids significant investment into a market that has very challenging long‐term prospects.”

GM also has a joint venture with Lada parent company Avtovaz to produce the 4x4 Chevrolet Niva, which can trace its ancestry back to the Lada Niva 4x4, sold across the world from the 1980s. Production and sales of the Chevro‐ let Niva will continue.

Fiat is considering withdrawing Alfa Romeo, while Volk‐ swagen withdrew SEAT in April 2015, although other Volk‐ swagen Group brands remain on sale in Russia. Ford, like Mazda, Toyota and Isuzu operates in Russia through a joint venture with Russian manufacturer JSC Sollers.

In April, Ford announced that it had taken control of the joint venture, although its 50% equity stake remains unchanged. The Ford Sollers joint venture recorded a loss of 5.5 billion Rubles (€90.3m), according to Reuters, in 2014. Ford moved quickly to consolidate its position, appointing Mark Ovenden as president and CEO of Ford Sollers. Ovenden moves from chairman and managing direc‐ tor of Ford of Britain, where he has been in post since 2011.

Prior to that appointment he was managing director and president of Ford of Russia, a post he held for three years and his familiarity with the market is seen as an asset.

Kia Rio was the third bestseller in Russia between January and May 2015

The Lada Granta was the best selling model on the Russian car market between January and May 2015.

This C segment model is available as a four‐door saloon or five‐door hatchback. 49,542 models were sold, a ‐15.3% drop compared with 2014. The Hyundai Solaris, a re‐badged Accent, is the second best selling car in Russia this year, with 44,455 sales between January and May, just 554 fewer sales than in the same period in 2014. The Kia Rio followed in third place, followed by the Lada Kalina and Renault Duster, which carries the Dacia badge in other markets. According to the CIA some 27.7% of roads in Russia are unpaved. The popu‐ larity of SUVs is growing.

LEASE CONTRACTS EXTENDED The falling demand for new cars is not surprisingly hav‐ ing an impact on the business car sector, “We don’t buy as many new cars and lease them out, but we keep a ‘flat’ fleet,” explains Kent Bjertrup, general manager at ALD Automotive Russia. That effectively means extend‐ ing contracts, the same technique used by leasing com‐ panies during the European economic crisis. “98% of our customers are international companies that lease their fleet from ALD, Bjertrup added. “International investors are saying, “let’s wait and see where the econ‐ omy is heading”, so they would rather have a car that although isn’t new is good quality and prolong the con‐ tract for a year. Then maybe in a year they will have much better vision of where the economy is heading.”

Bjertrup has seen other developments in the economy too. Russian prices have traditionally carried high profit margins, which has led to companies being compara‐ tively cash rich. But the change in economic fortunes has meant that more companies are retaining those profits, “So they do not sit on as much money any more and we have seen that some companies that were previously buying cars are re‐considering their approach and are interested in leasing their fleets now.”

CRISIS BRINGS OPPORTUNITY “A crisis is always a time for opportunities,” he said.

“That’s one of the opportunities we have seen. Another is that it has been a very much retail driven economy in Russia, so Toyota, for example, has almost no fleet sales in Russia, a lot is retail. Now we are seeing increased interest from these manufacturers to implement white label agreements that we normally have with car man‐ ufacturers around the world.

“When I read the international press, it seems like a big crisis and of course, numbers confirm that. But once you are actually in the environment, business is still taking place and life continues. We have a fleet of 18,500 cars.”

ALD’s operation in Russia also covers the Ukraine and although business is flat in Russia, Bjertrup has seen a different picture in that country, “In Ukraine we have seen some local competitors forcing their customers to give back their cars because they need to sell the cars to raise cash.”

internationalfleetworld.com / 33

→

FLEET FOCUS Russia

The Hyundai Accent was the second best-seller in Russia with 44,455 sales

→

HIGH INTEREST RATES “Smaller, local leasing companies here in Russia have been struggling for funding. When the interest rate exploded, funding was very expensive and the Russian banks were not able to re‐finance themselves because of the sanctions. It has definitely been a difficult time,” said Bjertrup. Russian” Russian interest rates reached 30% at one stage, but the central bank rate is currently at 11.5%, having risen from 11% to 17% at the beginning of the year. Expectations are that it will return to 11% by the end of July.

Statistics are not easy to find regarding the Russian car market, apart from those produced by the AEB. According to Bjertrup, there are around 40m passenger cars on Russ‐ ian roads and around 2.24m are in the corporate sector.

Some 2.3m new cars were sold in 2014 and of those, Bjertrup says that less than 9% were sold to corporate fleets. Compared with Western Europe, the total seems small. As Bjertrup explains, cars are not generally given as a salary enhancement in Russia: “A lot of cars are needed as a tool for work. We have a lot of pharmaceutical compa‐ nies and medical representatives have a car to visit clients, but for middle management, it is not so common for a com‐ pany car to be part of their package.”

SUVs are gaining in popularity with Russian buyers as they are elsewhere around the world, but since price is a factor in the business car sector, Bjertrup says that more popular models include the Ford Focus, Renault (Dacia) Logan, Skoda Octavia and Volkswagen Polo, particularly in saloon form. Chevrolet models have also proved popular on

34 / internationalfleetworld.com

the ALD fleet, but the withdrawal of mainstream Chevrolet models will obviously change that in future.

Although AEB data lists all light vehicles and does not separate light CVs from others, Russian manufacturer GAZ is probably the largest light CV producer in Russia. AEB data shows that in the January to May period sales were down ‐32% in 2015 compared with 2014 to 17,311. Mer‐ cedes‐Benz van sales have not been greatly affected with sales down ‐2% in the same period to 2,530. VW van sales have fallen by ‐51% to 2,735.

Business cars are not taxed differently from privately bought cars in Russia according to Bjertrup, “We used to have a property tax on company cars but no longer. Since 2013 there has been no difference in the taxation of corpo‐ rate and private cars.”

MOSCOW INTRODUCES PARKING CHARGES The Moscow authorities have recently started to charge for parking, which brings it into line with many other cities around the world. The complication, according to Bjertrup is that cars must be registered in the name of the driver, even if it is owned by a company, so this has presented a few administrative issues.

Bjertrup sees little prospect of economic growth until international sanctions are lifted and that is not likely to happen while there is fighting in Eastern Ukraine. “We expect GDP growth to be negative especially this year and I guess best case next year will be zero,” he comments, “We expect to see some bounce‐back in 2017.”

IAM REPORT Russia

Russian roulette Advice to business drivers around the world from the Institute of Advanced Motorists.

I

f you have been asked to go to Russia for business it is likely your employer will have hired a driver for you.

However, if you are asked to drive yourself there are a number of things you must be aware of first.

The rules of the road are generally similar to the rest of Europe, but in practice they are often ignored by drivers and not applied consistently by the authorities. Drivers in Russia are often described as fast and aggressive, so you must be aware of what is going on around you.

However, you have nothing to fear if you have some prior knowledge!

These are the documents you must carry: a full valid driv‐ ing licence with up‐to‐date conviction information, an inter‐ national driving permit, proof of insurance/green card, if using your own vehicle, proof of identity (like a passport), proof of ownership and a valid Russian visa. Your vehicle must also carry the following: a warning triangle, head‐ lamp beam deflectors if appropriate, a first aid kit, a fire extinguisher and spare bulbs.

Other general rules that have the potential to catch out the unawary are that dipped headlights must always be used during the day, it is illegal to drive a dirty car especially with mud on the number plates (which can attract a fine of up to 2,000 Roubles) and turning right at a red light is not allowed when there is no special green arrow to filter traffic light.

Apart from Moscow and St Petersburg, road condi‐ tions are largely very poor. Additionally if you can avoid travelling during rush hour you will save your‐

self a big headache; for instance Moscow is among the ten worst cities in the world for traffic jams, which last an aver‐ age of two‐and‐half hours.

Good preparation is vital for travelling in Russia – almost all direction and name signs are in Russian only, so a satel‐ lite‐navigation system may be helpful (these are easy to buy). And think about refreshments before you set out; as petrol stations, rest areas, cafes and toilets are infrequent.

While much of Europe has very low limits for drinking and driving, Russia has a zero tolerance policy. If a driver is caught, your licence could be suspended for two years.

Speed limits are shown in kilometres per hour. Within built‐up areas the speed limit is 60km/h, rising to 90km/h beyond these zones and 100km/h on highways.

Fines for breaking the speed limit are commensurate with the amount you break it by. For instance exceeding the limit by 10‐20km/h could result in a warning or fine of 100 Roubles. Exceeding it by more than 60km/h and you are looking at a 2,000 to 2,500 Rouble fine, disqualification for up to six months or suspension of your licence.

It is also important to carry some Roubles with you; despite the toll road systems in Russia being relatively recent, all charges are payable in cash. One completed toll road you may encounter is the 18km section of the Lipetsk Highway M4 from Moscow to Novorossiysk, where the charge is 10 Roubles per car.

So as long as you keep your wits about you and get conversant with the peculiarities of Russian driving law, you should have a memorable journey.

internationalfleetworld.com / 35

FLEET FOCUS Russia

From Russia with love Depressed 2015 Russian car market has a hint of good news, says Dave Moss.

A

t the mercy of everything from international sanctions to currency devaluation, political uncertainty, and only partially successful vehicle scrappage schemes, in the last eighteen months the Russian car market has fallen far and fast from its 2012 peak, when 2.2 million new cars were sold..

According to data from JATO dynamics, in the first three months of 2015, 360,882 cars were sold in Russia, around 35% less than the 566,138 sold in the same period last year. In April sales fell over 41%, in May the fall was 38%. No car manufacturer or importer has escaped this crisis untouched, and Russia’s traditional top selling market segments have suffered most, as retail buyers have held off purchasing decisions. City car sales have dropped 57%, small car sales by 24%, and the lower medium sector is down by around 44%.

36 / internationalfleetworld.com

LOYALTY TO HOME MANUFACTURERS Loyalty to home based makers remains strong. All Lada’s models feature amongst the best sellers – with the price leading Granta topping the first quarter sales chart. Mar‐ ket development investment has seen the Hyundai Solaris and Kia Rio both improve their share year on year, to com‐ fortably take second and third places. These three models alone accounted for over 20% of all cars sold in Russia in the first quarter of 2015 – and the Rio went on to top the sales chart in May. Overall the impact on manufacturers has been very uneven, but Suzuki, Peugeot, Citroën and Honda have been hit hard, each with sales down by over 75% this year.

Commentators have begun raising questions about future production prospects, after General Motors announced the ending of manufacturing operations and withdrawal

of the Opel nameplate from Russia later this year. Chevro‐ let will also disappear, though its specialist sporting mod‐ els seem likely to remain available.

PREMIUM SECTOR GROWTH Meanwhile the premium market sector contains a hint of good news. Sales growth has been charted by JATO dynam‐ ics in the largest upper medium, executive and luxury saloon sectors since 2010, when large executive car sales grew by 50%, and luxury SUV sales almost doubled in a year. Premium marques, mostly from Germany and Japan, have been in demand ever since, and more luxury saloons were sold in Russia in the first three months of 2015 than in the same period last year. The contrast is clear: sales of the top 20 luxury cars have fallen 9.8% year on year; in the mainstream market equivalent sales are down over 18%.

Russian buyers see luxury cars as very desirable prod‐ ucts. Regional automotive analyst for Frost and Sullivan, Anna Ozdelen, says: “Premium vehicles have been in demand not only among high‐income customers, but also among middle‐class buyers, who like to display their social status. So they purchase premium cars, rather than invest in real estate and property. Also, at the end of 2014, demand for premium vehicles rose as buyers tried to pro‐ tect themselves from devaluation of the Rouble.”

Two Autostat Analysis polls late in 2014 showed how much Russian consumers value premium auto brands. In one, owners were asked if they would recommend their brand to others: 70% named Mercedes Benz, which topped the list, followed by Land Rover and BMW. A second poll asked how likely respondents were to buy another car from the same maker. Amongst 31 brands, Mercedes Benz again came top, with Volvo second, and BMW, Lexus, Land Rover and Audi all in the top ten.

A great image and high perceived status helped pre‐ mium cars to a 6% market share in Q1 2015, against 4.4% last year. Current premium market leader Mercedes Benz sold almost 10,000 cars in three months, entering Russia’s top ten best selling manufac‐ turer list for the first time, but to stay on top the marque faces a growing problem: unlike princi‐ pal competitors BMW and Audi, it does not make cars in Russia.

LOCAL MANUFACTURE For makers determined to stay in this market, currency deval‐ uation and political uncertainties underline the importance of local manufacturing capability. But there’s another worry for premium and luxury car makers: local manufacture is becoming necessary to secure purchasing by state and official bodies, which are increasingly being directed to choose locally built vehicles over imports. Mercedes‐Benz parent company, Daimler AG, will not want to risk losing such business to com‐ petitors, and is reportedly finalising a joint venture for local assembly of its S‐Class saloons.

Audi builds A6 and A8 models in a Volkswagen plant at Kaluga, though its Q3 and Q5 SUV's are proving more pop‐ ular. BMW currently assembles its 5 and 7 Series saloons and SUV’s – including the X5, top luxury SUV so far in 2015 – in a joint venture with Avtotor in Kaliningrad. Other lower‐volume premium brands available in Russia include Land Rover, Porsche, Lexus and Infiniti.

Anna Ozdelen of Frost and Sullivan believes Daimler AG is seeking a partner and location to build many more of its cars locally: “It’s no surprise that Daimler is looking to open a plant in Russia to build A, E, and S‐Class models, and ML and GL‐Class SUVs,” she says. “Their sales volumes have been high, and rivals Audi and BMW already have the com‐ petitive advantage of local assembly.” However, latest reports suggest political uncertainties may have delayed Daimler's project.

GOVERNMENT ASSISTANCE Looking to help secure the industry's future, since April the Russian government has offered subsidised car loans, and consumer leasing has been introduced, with facilities avail‐ able to both company buyers and individuals. The Ministry of Industry and Trade expects these and other measures to add 300,000 car sales in 2015 – but its still forecasting a 24% market decline, to just 1.98 million vehicles.

Analyst Anna Ozdelen expects that, in time, current mar‐ ket forces will rearrange the Russian automotive landscape.

She says: “With declining sales across all segments, weaker brands will leave the marketplace, with temporary produc‐ tion stoppages likely. Much depends on the political situa‐ tion, but we still expect strong brands like Mercedes‐Benz to increase their share, and by 2016 demand for premium vehicles may be picking up.”

internationalfleetworld.com / 37

SPONSORED BY

SHOW TIME! There was something for everyone at the Fleet Show 2015, with hundreds of fleet managers descending upon sunny Silverstone in the UK for the biggest and best fleet show ever. Visitors took the opportunity to catch up with suppliers in-between the thousands of test drives taking place throughout the day. With record attendances and hundreds of cars available to test, the driving area of Silverstone was constantly buzzing. Inside the state-of-the-art Silverstone Wing, nearly 100 exhibitors ensured that there were plenty of new and innovative products for fleets to discover.

38 / internationalflfeetworld.com

internationalfleetworld.com / 39

NAFA International Fleet Academy

Supply & demand CHAPTER 14

Developing a global fuel strategy This chapter explains the challenges of establishing a fuel strategy for an international operation and provides an overview of some of the issues that can affect fuel supply.

Reproduced with the kind permission of NAFA Fleet Management Association, this is the latest in a series of extracts from the International Fleet Academy Global Fleet Guide.

40 / internationalfleetworld.com

Fluctuating supply Fuel is a sophisticated global commodity, with pricing deter‐ mined by fluctuating supply and demand and even market speculation. Production is no longer a simple distillation process. Crude oil is run through multiple processing units that break down the crude oil and hydrocarbon atoms at the molecular level, before reconstituting them into the various products in use today.

This complexity, coupled with fewer refineries and increased environmental and regulatory pressures for cleaner fuel, effectively limits fuel production so it cannot easily be adjusted to meet spikes in fuel demand. There are numerous factors that may impact on fuel availability and cost; such as natural disaster, war, political uprising and currency exchange rates.

Potential risks Although most of these factors are outside an organisation’s control, they still must be aware of their implications when assessing fuel costs and each opportunity to minimise costs and mitigate risk should be carefully evaluated.

In terms of exchange rates, a simple example of its impact is the case of Australia, which buys its fuel from Singapore.

Since the price of refined petrol in Singapore is expressed in US dollars, the exchange rate between Australia and the US affects the price Australians pay for petrol. Even if the price of refined petrol in Singapore remains the same, the exchange rate between Australia and the USA can change, so people may pay more or less for petrol in Australia.

Fleet managers should also stay in touch with changes in government laws as they pertain to fuel taxation, as well as changes in the fuel quality standards required by a govern‐ ing body. Managers must also comply with regional envi‐ ronmental issues associated with fuel, especially those regarding on‐site storage of fuels.

Measuring fuel spend It can be extremely difficult to measure fuel costs and effi‐ ciency across different territories due to the varying factors in each area. Country differences that may affect fuel costs include fuel specifications, speed limits, fuel grades and fuel types. As a result, the emissions and fuel mileage ratings of vehicles built by the same manufacturer with the same engine size will, in many cases, vary from country to country.

Readers can review the full article – and much more – by purchasing the Global Guide through the NAFA website: www.nafa.org/

“ It is imperative for fleet managers to adopt a strategy to isolate fuel expenses and usage within the borders of a single country.”

Add to this equation the different taxes and regulations on fuel, variances in currency value, and even fuel measure‐ ments (i.e. gallons or litres) from one country to the next, and the full complexity of fuel pricing can be appreciated.

That is why it is imperative for fleet managers to adopt a strategy to isolate fuel expenses and usage within the borders of a single country.

It is important for fleet managers to consider what they are measuring. What kind of access to reliable data is avail‐ able? In most countries, with the aid of accurate reporting tools, operators now have the controllable data required to establish an effective global fuel strategy. In countries with‐ out such infrastructure, management of fuel can become laborious, inefficient, and unreliable.

Benefits of fuel cards A one‐year measurement is preferred by most companies to establish their fuel usage baseline. This one‐year period is enough time to account for changes in the business cycle, along with mileage variations that many times are weather related. Shorter lengths of time may reflect a seasonal spike for the business application.

Beyond a standardised time period, companies need to establish benchmarks by measuring various aspects of a vehi‐ cle fleet in a given area or country. These benchmarks include the number of vehicles operating in each country, corporate average fuel economy and corporate average fuel price.

Separating the average cost paid for one type of fuel versus another enables a fleet manager to compare the costs of each fuel type within the fleet. The results of such a comparison may impact the engine choice in a company’s future vehicle selector.

Next month...

We examine why fuel costs vary by territory and learn how to budget effectively.

internationalfleetworld.com / 41

PROFILE Nissan

Meeting global needs With a broad product portfolio including hybrid and fully electric drivetrains, Nissan is targeting worldwide growth with ambitions to become Europe’s number one Asian brand by 2016‌

42 / internationalfleetworld.com

view

Manufacturer Nissan Total sales 2014 5,310,064 Headquarters Yokohama, Japan Global market share 8.2% No. of models 27

from the top

Success of crossover models

N

issan recorded a global sales uplift of 4% year‐on‐year to 5,310,064 units in 2014, thanks largely to success in Europe, Mexico and the USA helping to counteract the downturn the brand experienced in a number of East Asian markets. Nissan hopes to counter this decline with the development of the sales network and the launch of a number of new models targeted specifically at the Asian markets in the coming months.

Sales increased 11% year‐on‐year to 1,386,895 units in the USA, marking an all‐ time calendar year record following the success of models including the Altima, Sentra, and Nissan LEAF. Sales success continues into 2015, with registrations in April up 5.7% year‐on‐year, thanks in large part to a surge in interest in the Rogue and new Murano.

Nissan also enjoyed a sales uplift of 11% in Mexico in 2014, driven by an end of year boost courtesy of the X‐Trail and the March. As of April 2015, sales are up 26% year‐on‐year due to the continued success of the X‐Trail and the new NP300 Fron‐ tier truck. Nissan has been the sales leader in Mexico for 71 consecutive months, and the brand is committed to developing its presence in Latin America.

Argentina has become a key component of Nissan´s strategy to gradually position itself among the top three brands in the region. Nissan will build pick‐up trucks at Renault’s industrial complex in Cordoba from 2018 following an investment of US $600m (€533m) from the Renault‐Nissan Global Alliance. Nissan sells more than 300,000 trucks each year and is a leader in the one‐tonne truck segment, with more than 14 million units sold worldwide.

In Europe, sales increased by 13% year on year in 2014, supported by demand for the X‐Trail and new Pulsar. Sales increased a further 8% year‐on‐year in April 2015, boosted by the completion of Nissan’s ambitious release schedule which saw 12 new models launch in Europe by March 2015.

Nissan outlined its European growth strategy at a press conference to celebrate the new product range, revealing a strong focus on crossovers: “We continue to invest in our strong manufacturing footprint in Europe,” said Paul Willcox, chairman of Nissan in Europe. “We have seen the best‐ever European sales with a 50% increase in five years and new versions of the pioneering Qashqai, Juke and X‐Trail, reinforcing Nissan’s crossover leadership with sales exceeding 410,000.”

Last year, some 80% of all Nissan vehicles sold in Europe were built in Europe.

Round‐the‐clock production has been introduced at the Sunderland plant in the UK where, in addition to Qashqai, Juke, Note and LEAF, the site also builds the battery cells for both Nissan LEAF and e‐NV200.

The two‐millionth Qashqai rolled off the production line at Sunderland in Novem‐ ber 2014, and Nissan’s all‐electric LEAF also achieved a sales landmark when the 100,000th model was bought by a UK customer in January. The LEAF is now avail‐ able in 35 countries on four continents and tops the sales charts in Norway, includ‐ ing several months where it has outsold petrol and diesel cars.

NISSAN Global sales, by territory Territory Japan USA Mexico Europe China Total

2013 492,792 1,249,455 264,148 653,743 1,209,503 5,105,830

2014 428,729 1,386,895 293,204 738,730 1,221,598 5,310,064

% change -13% +11% +11% +13% +1% +4%

Guillaume Cartier, senior vice-president sales & marketing at Nissan Europe, on opportunities for LEAF five years on, and the importance of the connected car.

During five years of LEAF sales, how has the fleet customer base evolved?

Around 30% of all LEAF sales in Europe are generated by fleet clients.

Over the last two years we have experienced a growing interest in LEAF from international corporate customers, both to generate TCO savings but also as part of car shar‐ ing programmes.

Our Carwings technology allows remote control of the LEAF and is a clear asset for rental, taxi or car shar‐ ing buyers. On top of this we have measured 90% fleet client satisfaction with LEAF and this reliability helps build confidence and loyalty.

How have fleets responded to Pulsar, and what are your expectations for the model?

Pulsar has been well received by the major European fleet operators.

Customers acknowledge several key assets in Pulsar such as the exceptional roominess, safety and technology package, helping to meet both user chooser expectations and car policy requirements. We will deliver over 15,000 Pulsars to fleet buyers in 2015.

Is connected car technology an important R&D area for Nissan?

Telematics and connected vehicles are now clearly a must for the major fleet clients. The future of TCO manage‐ ment is directly related to communi‐ cating with the vehicle, and Nissan is already launching its own telematics and vehicle data provider.

Connectivity is essential and Nissan‐ Connect provides connected technol‐ ogy at an affordable price. The latest version of Connect features Safety Shield with moving object detection, Around View Monitor to give all‐round visibility and autonomous emergency braking to protect drivers.

internationalfleetworld.com / 43

→

PROFILE Nissan Assembly plant locations

→

Where are they made?

USA • Nissan Smyrna Plant, Tennessee, USA – Altima, Maxima, LEAF, Pathfinder, Rogue • Nissan Canton Plant, Mississippi, USA – Altima, Frontier, Xterra, Murano South America • Nissan Motor (Mexico), Aguascalientes Plant – March (Micra), Versa Note, Sentra • Nissan Motor (Mexico), Cuernavaca Plant – Sentra, Tiida, NP300, Frontier • Nissan Motor (Brazil), Resende Plant – March (Micra) • Renault Nissan (Brazil) Paraná Plant – Livina, Grand Livina, Livinia X-Gear, Frontier Europe • Nissan Sunderland Plant, UK – Qashqai, Note, Juke, LEAF • Nissan Barcelona Plant, Spain – Pathfinder, Navara • Nissan St. Petersburg Plant, Russia – X-Trail, Murano, Teana (Maxima) • Nissan Togliatti Plant, Russia – Almera Africa • Nissan Motor (South Africa), Pretoria Plant – NP300 Hardbody, NP200 • Nissan Motor (Egypt S.A.E), Giza Plant – X-Trail, Navara, Sunny (Sentra)

Asia • Dongfeng Nissan Guangzhou Plant, China - Sylphy, Sunny (Sentra), Tiida, March (Micra), Livina, Qashqai, X-TRAIL, Teana (Maxima), Murano • Yulon Motor Co Ltd., Miao Li Hsien, Taiwan – Teana (Maxima), Sylphy, Livina, Livina Geniss, March (Mirca) • Nissan Motor (Thailand), Bang Sao Thong Plant – March (Micra), Navara, Teana (Maxima), Sylphy, Almera, Pulsar • Nissan Motor (Indonesia), Jawa Barat Plant - Grand Livina, March (Micra), X-TRAIL, Juke, Serena, Livina X-Gear, Evalia • Tan Chong Motor Assemblies, Kuala Lumpur, Malaysia – Navara • Tan Chong Motor Assemblies, Selangor, Malaysia - Grand Livina, Teana (Maxima), Almera, Serena S-Hybrid, X-Gear • Nissan Motor (Philippines), Laguna Plant – Sunny (Sentra), X-TRAIL, Grand Livina, Almera • Universal Motors Corporation, Makati City, Philippines - Frontier, Navara, Patrol • TCIE Vietnam Pte. Ltd, Chieu District, Vietnam – Sunny (Sentra) • Kancheepuram Plant, India – March (Micra), March Active (Micra Active), Sunny (Sentra), Evalia, Teana (Maxima), Terrano

Expansion of global range

R

ecently launched in North America, the 2016 Maxima is the eighth‐ generation model in a series that has enjoyed cross‐generational appeal.

The luxury sedan’s 3.5‐litre VQ‐series V6 has been redesigned with more than 60% new parts, offering a claimed 15% improvement in fuel econ‐ omy. The model is an adaption of the Sport Sedan Concept shown at the 2014 North American Auto Show, and features the NissanConnect infotainment system paired with a standard seven‐inch Advanced Drive Assist Display (ADAD) within the instrument cluster.

Nissan is targeting a resurgence of growth in East‐Asia with the launch of a number of models designed specifically to appeal to young, affluent Asian buyers. Recently launched in China, Nissan aims to bring more sustainable mobility options and an enhanced SUV offering to the country with the new Murano Hybrid. Equipped with the new supercharged petrol engine and an electric motor paired with a compact Lithium‐ion battery, Nissan claims that driving performance is equivalent to a 3.5‐litre V6 engine with fuel economy of a 2.0‐litre four‐cylinder.

Previewed by the Friend‐ME concept and Lannia Concept which debuted in 2013 and 2014 respectively, the design and development of new Lannia was led

by Nissan Design China in an attempt to infuse the new model with local flair and insight into driver expectations. Available in China from the autumn, new Lannia is designed to offer a driver‐centric cockpit enhanced with comfort features and connected car technology.

Available in Japan from May 2015, the Nissan X‐Trail Hybrid is a key part of the brand’s strategy to boost its share of the Japanese market. New X‐Trail Hybrid achieves a 75% reduction in NOx ‐ making it eligible for tax exemptions in emissions‐focused Japan, and is expected to perform well in a market where hybrid vehicle sales remain strong.

Nissan’s new seven‐seat version of its e‐NV200 van and MPV is available from this month in Japan and Europe, and is billed as the world’s first pure elec‐ tric seven‐seater. Boot space with all seats in situ is 870 litres, rising to 2,940 with the second row of seats rolled forward and folded and the sixth and seventh seats folded to the side. According to Nissan, the seven‐seat version fills a gap in the market for an EV capable of accommodating larger groups of people. The model is powered by the same electric powertrain as the LEAF and offers an electric range of 106 miles on a full charge.

44 / internationalfleetworld.com

NISSAN fleet model range NISSAN’s diverse global fleet model range comprises 27 models.

Moco Variants: Kei car Markets: Japan.

Fuel: 3.3-4.0l/100km* CO2: 77-93g/km*

Dayz Variants: Kei car Markets: Japan.

Fuel: 3.3-4.4l/100km* CO2: 77-102g/km*

Dayz Roox Variants: Kei car Markets: Japan.

Fuel: 3.8-4.4l/100km* CO2: 88-102g/km*

Micra / March Variants: 5dr hatchback Markets: Global.

Fuel: 4.3-5.4l/100km CO2: 99-125g/km

Latio / Sunny/ Versa / Almera

Lafesta

Qashqai

Variants: MPV Markets: Japan.

Fuel: 6.1l/100km* CO2: 142g/km*

Variants: Crossover Markets: Europe, South America, Asia, Africa, Oceania.

Fuel: 3.8-7.7l/100km CO2: 99-178g/km

Cube

Altima / Teana

X-Trail / Rogue

Variants: MPV Markets: North America, Asia.

Fuel: 5.3-7.6l/100km* CO2: 123-176g/km

Variants: 4dr sedan Markets: Europe, North America, Asia, Oceania.

Fuel: 7.5-9.3l/100km CO2: 174-216g/km

Variants: 3/5dr hatchback, 4dr sedan, wagon, MPV, SUV, crossover, coupe Markets: Global.

Fuel: 4.9-8.3l/100km CO2: 129-192g/km

Note / Versa Note

Maxima

Murano

Variants: 5dr hatchback Markets: Europe, North America, Asia.

Fuel: 3.5-5.1l/100km CO2: 90-119g/km

Variants: 4dr sedan Markets: North America.

Fuel: 7.8l/100km* CO2: 187g/km*

Variants: Crossover Markets: North America, Asia.

Fuel: 8.4-10.7l/100km* CO2: 195-248g/km*

Livina / Grand Livina / X-Gear

Serena

Xterra

Variants: MPV Markets: Asia.

Fuel: 6.3-7.9l/100km* CO2: 146-183g/km*

Variants: SUV Markets: North America.

Fuel: 10.7-11.8l/100km* CO2: 248-275g/km*

LEAF

Elgrand / Quest

Pathfinder

Variants: 5dr hatchback Markets: Global.

Fuel: Electric CO2: 0g/km (tailpipe)

Variants: MPV Markets: North America, South America, Asia.

Fuel: 9.3-11.1l/100km* CO2: 216-258g/km*

Variants: SUV Markets: North America, South America, Africa, Oceania.

Fuel: 8.4-10.2l/100km CO2: 200-240g/km

Pulsar / Tiida

370Z / Fairlady Z

Armada

Variants: 5dr hatchback Markets: Europe, Asia, Africa, Oceania.

Fuel: 3.6-7.8l/100km CO2: 160-187g/km

Variants: 3/5dr hatchback, 4dr sedan, wagon, MPV, SUV, crossover, coupe Markets: Global.

Fuel: 10.5-11.2l/100km CO2: 245-262g/km

Variants: SUV Markets: North America.

Fuel: 12.4l/100km* CO2: 288g/km*

Sylphy Classic / Almera

GT-R

Patrol

Variants: Coupe Markets: Europe, North America, Asia, Africa, Oceania.

Fuel: 11.8l/100km CO2: 275g/km

Variants: SUV Markets: Europe, South America, Africa, Oceania.

Fuel: 14.5l/100km CO2: 336g/km

Variants: 4dr sedan Markets: North America, South America, Asia, Africa Fuel: 4.4-6.7l/100km* CO2: 102-155g/km*

Variants: MPV, crossover Markets: South America, Asia.

Fuel: N/A CO2: N/A

Variants: 4dr sedan Markets: Europe, Asia.

Fuel: 7.2-8.5l/100km CO2: 171-201g/km

Sylphy / Sentra / Pulsar Sedan Variants: 4dr sedan Markets: Europe, North America, Asia, Africa.

Fuel: 6.7-7.8l/100km CO2: 160-187g/km

* Figures converted from economy tests other than NEDC

Juke Variants: Crossover Markets: Global.

Fuel: 4.0-7.4l/100km CO2: 104-169g/km

internationalfleetworld.com / 45

Toyota Avensis Benchmarking premium brands has given the Avensis a helping hand, says Alex Grant.

SECTOR Upper Medium PRICE €23,640–€36,340 FUEL 4.2–6.5l/100km CO2 108–149g/km

T

the Avensis is unusual for Toyota in that there are no plans to oyota reckons word of mouth plays a big part in Aven‐ offer a hybrid version. While there are plans to offer hybrids sis sales, and they’re probably right. This might not in every segment, it says the Prius and Lexus IS 300h better be the most high‐profile car in its segment, which as serve the demands of this one. a whole has suffered in recent years, but its customers are There’s a relaxed solidity to the way the Avensis drives. Its loyal, often buy other Toyotas and generally rate the owner‐ stiffer bodyshell and new steering and suspension setup offer ship experience very highly. confident cornering and a supple ride over rough surfaces on These are good foundations for a business car, and three even its biggest wheels. But it’s no driver’s car. This is an quarters of European volume is sold to fleets, but the chal‐ exceptionally capable way to cover long distance in comfort, lenge it’s faced is getting user‐choosers to discover its finer but it’s not a machine which will ever entice you to take the points. This refresh – the second for this generation – long way home as you might in a Ford Mondeo. recognises that it has to appeal to buyers who are also look‐ Recognising that it’s the part of the car ing at premium brands. drivers see the most, efforts to improve From an operator perspective, revi‐ the aesthetics and consistency of materi‐ sions to the diesel engine range are als, colours and switchgear have made a certainly appealing. Toyota has replaced marked improvement to the cabin, and its own 2.2‐litre diesel with a BMW‐ the Toyota Touch 2 infotainment system sourced 2.0‐litre unit, essentially the is quick to respond and easy to use. Aside same 143bhp engine usually denoted by from some buffeting around the mirrors, an 18d badge. This cuts CO2 emissions by there’s very little noise at speed.

24g/km and is expected to be the biggest The wagon is an excellent load‐carrier seller, it’s incredibly quiet on the move too. Its rear bench folds flush with the with a broad spread of torque, and the boot floor, under which is a compartment claimed 4.5l/100km is competitive too. for the tonneau cover. Toyota Safety Those seeking additional frugality have Sense, with lane‐keeping, forward‐colli‐ the option of a new 1.6‐litre diesel shared sion and road sign alerts and automatic with the Verso, and thus with the MINI Better looking, nicer high beam, is standard across the range, Countryman Cooper D, which replaces the inside and with a choice which should reduce insurance costs.

2.0‐litre D‐4D offered to date. This is as of two competitive This might be a largely rational choice, hushed on the move as the larger engine, but the smarter design and cabin, with a and fine for motorway cruising, but it new diesel engines, drop in running costs, should help push lacks torque at low revs and needs to be the Avensis offers the able Avensis further onto buyers’ worked hard while accelerating. It’s very plenty of reasons for radars. This won’t transform Toyota’s D‐ much the economy option. drivers to take notice. segment sales, but it adds appeal for that The 1.6, 1.8 and 2.0‐litre petrol engines all‐important word of mouth. are low‐volume options in Europe, and

what we think

46 / internationalfleetworld.com

Mazda CX-3 A welcome addition to the B-segment SUV sector, reckons John Kendall.

SECTOR Crossover PRICE €17,990–€28,190 FUEL 4.0–6.4/100km CO2 105–150g/km

T

he small SUV currently seems unstoppable, with Trim options will vary by market, but there are up to nine Mazda the latest to introduce a model to take on the paint colours, 18‐inch aluminium wheels and options Nissan Juke, Ford EcoSport, Jeep Renegade and Opel include a head‐up display, seven‐inch touchscreen, MZD Mokka. The CX‐3 made its European debut at the Geneva Connect with smartphone connectivity and a choice of apps, Show in March and is now going on sale across Europe. satellite navigation and rear parking camera. Similarly, a In many respects, the car is a scaled down CX‐5, making range of i‐Activsense driver assistance systems is available use of the company’s Kodo design language and its SKYACfrom active cruise control to land departure warning.

TIV design technologies, designed to reduce weight and Mazda claims that there is class leading space and driver’s improve engine efficiency. seat adjustment for the CX‐3 and driver comfort is good.

The format is familiar, with both two and four‐wheel drive Instruments are clearly laid out ahead of the driver and the available, Mazda differs from many is in its drivetrain control layout echoes that of other current Mazda models. options. Downsizing is the popular way Diesel is likely to be the engine of to reduce fuel consumption, usually with choice for many fleets and in many ways turbocharging in the mix too. While it is the best all‐rounder of the engines. that’s true of the diesel power option – It offers good refinement and impressive Mazda’s new 1.5‐litre diesel shared with torque – better than either petrol engine. the Mazda2, the petrol engine seems The petrol engines are refined too and unfashionably large at 2.0‐litres, even although they lack the torque of the though Mazda has chosen direct injec‐ diesel, offer good performance. tion for better efficiency. Mazda Rear legroom is a reminder that the describes this as “Rightsized” and it CX‐3 is based on a comparatively short comes with i‐stop idle‐stop as standard wheelbase – there wouldn’t be much with the option of Mazda’s i‐ELOOP knee room sat behind a tall driver. Other‐ brake energy recuperation system. wise ride comfort is good. The route 120hp and 150hp versions are available. included a wide variety of surfaces and One output is available from the 1.5‐ considering the short wheelbase and Diesel power would be litre diesel – 105hp. There’s a choice of large wheel diameter, the CX‐3 can soak the obvious choice for six‐speed manual or six‐speed automatic up the poor surfaces well. long distance drivers transmission, but only the petrol engines With all seats in use, the car provides offer a choice of 2WD and automatic B‐segment like boot space with 350 but the petrol engine transmission. If you want a diesel auto, it litres, including space beneath the floor provides a good alternawill be 4WD. Not surprisingly, the lowest to store high value equipment like tablet tive for those covering fuel consumption and emissions comes computers and cameras. This can be shorter annual distances. from the diesel 2WD manual with expanded to 1,250 litres with the rear 4.0l/100km and 105g/km CO2 emissions. seats folded.

what we think

internationalfleetworld.com / 47

Volvo XC90 The XC90 is an impressive alternative to its rivals, reckons John Kendall.

SECTOR Large SUV PRICE €52,400–€76,160 FUEL 2.5–8.0l/100km CO2 59–179g/km

V

Volvo’s Drive‐E branding for efficiency. olvo did a great job of building up expectations There are three engine choices for the XC90 – D5 before the XC90 was seen in public for the first time twin‐turbo diesel producing 225hp and 470Nm with EU at the Paris Show last year. This followed several combined fuel consumption of 5.8l/100km and CO 2 emis‐ months of images of the interior, details of the engine sions of 149g/km. The T6 turbocharged and super‐ options, safety equipment etc. When we finally saw it, charged petrol engine produces 320hp and 400Nm and replacing the model that first went on sale in 2002, new offers an EU combined fuel consumption figure of XC90 was a larger and more imposing car than the one it 8.0l/100km with CO2 emissions of 179g/km. replaced. If anyone thought that Volvo had lost its touch in Still to come is the T8 plug‐in hybrid, which combines building large cars to carry people, dogs and grandfather the T6 petrol engine with a rear‐mounted 82hp electric clocks, here was the car to prove them wrong. motor. Using the current EU test cycle, official fuel Volvo has carefully trained us so that when we think consumption is a barely credible Volvo, we think safety and the XC90 has 2.5l/100km with preliminary CO 2 plenty of new safety equipment. emissions of 59g/km. An all‐wheel‐ There’s everything from Run Off Road drive system is standard for the D5 and to protect your spine and keep you T6, mated to an eight‐speed automatic firmly strapped in if you should leave transmission co‐developed with Aisin. the road at speed, to an ability to recog‐ Fleet drivers are likely to find the D5 nise pedestrians or cyclists stepping suits their budgets and tax regimes best. into your path ahead, day or night and Considering the size of the car, it deliv‐ bringing the car to a rapid halt if you ers good performance and refinement. don’t. There’s plenty more too. Then The T6 is also a pleasant engine to live there’s the large touch screen in the with, but fuel consumption and CO2 centre of the dash, which will integrate emissions have less fleet appeal. The T8 your Apple or Android phone with ease may also attract some fleet attention, and much more besides. It also replaces but it is likely to be an expensive option. many of the switches you might expect The safety systems, Air suspension is an option too and I to find. It’s impressive. Apple CarPlay comfort, space and low drove both steel and air‐sprung models. and Google Android Auto will both be emission diesel will be Although the air suspension settings are available with the car later this year. adjustable using the drive mode selector The great mystery surrounded what what many SUV fleet I found the settings either too soft or too the car was actually like to drive. Its customers want. An firm and preferred the steel suspension. predecessor had been well regarded, interesting alternative to Otherwise, the XC90 is an attractive could the new model top it? Volvo prom‐ established large SUVs. proposition, if you want a large seven‐ ised no more than four‐cylinders for seat SUV. petrol and diesel engines, carrying

what we think

48 / internationalfleetworld.com

Renault Kadjar From a standing start, the Kadjar has joined the cream of the crossover crop, says Alex Grant.

SECTOR Crossover PRICE €22,990–€32,800 FUEL 3.8–5.8l/100km CO2 99–130g/km

R

Extended Grip system, which adds Mud and Snow tyres and enault admits it’s better known for superminis and switchable traction control tuned for loose surfaces.

MPVs than crossovers, but the Kadjar is aiming to Most cars will feature Renault’s internet‐connected alter that. Positioned to take on the Nissan Qashqai R‐Link 2 infotainment system, controlled by a seven‐inch and other mid‐size crossovers, this will be a cornerstone of screen with smartphone‐like capacitive scrolling, zooming an evolving range, focused on attracting user‐choosers. and drag‐and‐drop rearranging of icons. However, although The business case is obvious. A fifth of global car sales and Renault has adopted a multitude of driver assistance tech‐ 23% of European volume is crossovers. The Kadjar will also nology, the Kadjar doesn’t get the top‐down Around View be the first Renault built in China, where 26% of the rapidly Monitor or Nissan’s clever stability‐boosting Active Ride growing domestic market opts into this type of car.

Control or Active Trace Control systems. It does, however, So, building on the Captur, this is another step towards a share the Qashqai’s luggage boards, which enable the boot full crossover range, to be topped in three years by the next‐ to be divided into smaller sections, generation Koleos, which is likely to be including under‐floor storage. road‐focused like the latest Nissan X‐Trail.

Equipment levels are generous, with It’s making a strong start, looking like volume weighted towards mid and high‐ the already popular Captur and sharing spec versions, depending on the market. the segment‐leading Qashqai’s platform.

However, top‐spec versions move from That means not only does it offer excel‐ 17 to 19‐inch wheels, which has a lent on‐road manners, but the cost noticeable effect on ride quality and savings from standardising parts have affects fuel consumption. This moves the been re‐invested into cabin materials. dCi 110 engine from 99 to 103g/km, European fleet volume is likely to be though Renault is offering business‐ weighted towards the 110hp Renault‐ specific trims on small wheels, or a no‐ Nissan 1.5‐litre diesel, which consumes cost downsizing to cater for fleets.

4.3l/100km and emits 99g/km of CO2 as For a manufacturer known for in the Qashqai. It’s one of the best small segment‐defining vehicles and a high diesels on the market; remarkably quiet The Kadjar joins the level of innovation, the Kadjar doesn’t despite its small size, and available with a segment as one of the change the game. Instead, it has all the dual‐clutch transmission which doesn’t best options, and is well style and versatility that customers seek curb its fuel economy. from what is essentially a high‐riding The engine range is completed by a tuned to user-choosers. hatchback, underpinned by excellent pair of 130hp units, one turbocharged But consider the 19-inch engines and a great chassis. Qualities petrol and the 1.6‐litre turbodiesel also wheels carefully before which stand to serve Renault very well as used in the Scenic, optionally equipped ticking the box. it makes the shift towards a range with with four‐wheel drive. Selected two‐ crossovers at its core. wheel drive versions also include the

what we think

internationalfleetworld.com / 49

fleet in figures

Mixed May markets Growth in strong markets was challenged by problems elsewhere.

Is re-adjustment coming? John Kendall finds out.

Ford The Ford Fiesta was the UK’s best-selling vehicle in May 2015.

W

e have got used to reporting the fairly relentless rise in the European, Chinese and North American new car markets over the past two years or so and current sales and registration data from around the world paints a fairly similar picture. That said, LMC Automotive data for May showed that global light vehicle sales fell in May by ‐1.4%, which as LMC points out is the weakest result so far in 2015.

As LMC puts it, “The decline is a

50 / internationalfleetworld.com

reminder that if solid growth in the large markets – China, the US, Western Europe – is not sustained, then the steep falls in distressed markets, such as Brazil or Russia, may not be offset and global expansion could stall for a period of time.” That said, the LMC year to date (YtD January to May) data shows that overall sales are still growing year‐on‐year (YoY). For 2015 YtD, sales grew overall by 1.1% to 36,786,713 YoY, compared with 2014.

US sales hit record high May data from LMC shows that the 1.63m light vehicle sales in the US in May was the highest number on record.

YtD US sales are up 4.5% to 7,033,148.

LMC attributes the success to, “Histori‐ cally low automotive loan rates and historically high loan durations, consumer purchases are continuing strongly as real personal disposable income is increasing and consumer confidence remains high.” The Scotia‐

bank Auto report indicates that the annualised selling rate reached 17.7m units in May, increased from a 16.6m average between January and April.

Interest in luxury models Canada is also enjoying a buoyant light vehicle market with YtD sales up 2.8% to 754,451. May volume was a record at around 198,000 units. Carlos Gomes at Scotiabank points to a 20% surge in purchases of luxury models.

Declining Chinese market There are continuing signs that the Chinese light vehicle market may be slowing. LMC reports May sales at 1,928,875 a 0.4% increase over May 2014. Even so, YtD sales are up 3.8% to 10,247,973. The selling rate has fallen from 24m units a year to 23.8m in May. LMC reports that the Chinese economy, exports and fixed asset investment continued to fall in May.

Italy on the rise Italy saw registrations rise by 15.2% YtD compared with 2014 to 725,516.

LMC say the Italian market has been, “Boosted by pent‐up demand from private customers replacing ageing vehicles. Additionally, the World Expo in Milan that began in May provided support as car rental agencies prepared for the busy period.”

IHS reports that 9.5m cars in Italy are over 15 years old and that this will help to maintain sales momentum, “IHS Automotive currently expects that the Italian passenger car market will grow by over 5.5% YoY in 2015 to 1.45m registrations, with an even larger gain anticipated in 2016 that will continue until the end of the decade as the need to replace becomes even more impor‐ tant. Even so, the number of registra‐ tions made will be considerably below the previous decade, with little sign that it will be close to returning to those highs in our current forecast visibility.”

Public holidays impact sales Demand for new passenger cars in West‐ ern Europe continued the upward trend that has been the case for the preceding 20 months. But commentators agree that the number of public holidays across the major markets in May slowed the pace of growth. In May, registrations rose by a comparatively modest 1.3% compared with May 2014 to 1,109,893.

Registrations YtD rose by 6.8% to 5,805,367, according to ACEA data.

The five major markets of France, Germany, Italy, Spain and the UK all posted positive YtD growth, but the picture is different when looking at the May data. France and Germany saw regis‐ trations slip back compared with May 2014. For France, the market decreased by ‐3.5% to 143,771 and for Germany the decrease was greater at ‐6.7%, with a May total of 256,385. LMC suggests that it is company car sales that are responsible for most growth in Germany. The performance in both markets is reckoned to be the result of fewer selling days.

Scrappage incentives for Spain The Spanish market continues to thrive with YtD registrations up 21.7% to 443,888 according to ACEA data, while May registrations rose by 14.0% to 94,030 compared with May 2014. The Spanish Government announced the eighth and final extension of the PIVE scrappage scheme. IHS Automotive commented that, “Despite the adjust‐ ment of the terms of the scheme, there has been an increase of 6.2% YoY in private demand despite the scheme having been announced half way through the month. Gains continue to be recorded for company cars as well with registrations having increased by 37.7% YoY to 24,531 units. Registra‐ tions from rental car fleets have also grown by 9.8% YoY to 24,754 units, despite the slowdown recorded by this category in April.”

Replacement cycle renewals Although registrations in the UK in May

registered a moderate increase for the month of 2.4% YtD, the market has risen by 6.8% to 1,119,072 registrations. IHS Automotive cites new model launches, with good business and consumer confi‐ dence among the factors for growth, but reckons the most important factor is, “The highly competitive discount and incentives and environment that is still fuelling sales volumes at the UK’s car dealers. In addition cars bought on a three‐year cycle following the stabilisa‐ tion of the last global recession are now being replaced.” Overall IHS Automotive does not think that the growth in UK registrations is likely to last beyond the end of 2015, “We are also looking at around a 3.0% YoY fall the following year (2016), back to 2.47 million units, and further decline beyond that as it settles at a lower level.”

Sales to rental fleets and dealer regis‐ trations have been highlighted as help‐ ing to boost the European market by IHS Automotive. But Carlos Da Silva, manager for the company’s European light‐vehicle sales forecast thinks that these tactics are receding, “OEMs are now starting to feel sufficiently confi‐ dent in the short‐term outlook that they consider artificial support as less important,” he reckons. “Now let's factor in that company car demand has been healthy throughout Europe so far and there may finally be room for some more optimism.”

Recession in South America The weakness of the Brazilian economy is shown in recession, high interest rates, rising inflation and weakening employment, which are all helping to drive the economy and car sales down.

Car finance is costing around 25% per annum according to Scotiabank, which doesn’t expect things to improve until interest rates fall. LMC data for Brazil and Argentina shows that YtD, the market is down ‐20.2% to 1,310,542 with the May market down ‐24.6% compared with 2014 to 250,234.

internationalfleetworld.com / 51

THE NEW SEAT IBIZA INFINITELY CUSTOMISABLE

TECHNOLOGY TO ENJOY The New SEAT Ibiza is the perfect space that brings together all you need for business. It comes with all the technology and comfort to enjoy every journey even more. With Full link technology your car’s infotainment system becomes a mirror of your smartphone, seamlessly bringing the connectivity experience safely to the road and keeping you connected to your colleagues no matter where you are. The New SEAT Ibiza has an EcoTSI engine at its heart, meaning you won’t have to sacrifice power for efficiency. And with an extensive choice of stylish Colour Pack combinations, you can make it truly yours.

EcoTSI ENGINE

CONNECT YOUR PHONE

COLOUR PACKS

The EcoTSI engine can cover 100 km on 4.1L of fuel, emitting just 94 g of CO2 per km.

Technology that seamlessly brings the connectivity experience safely to your car.

Match body colour with exterior and interior details by choosing your combination.

FOLLOW US ON:

Average fuel consumption from 3.4 to 4.5 l/100 km. Average CO2 mass emissions from 88 to 118 g/km.

SE AT.COM