INTERNATIONAL
FLEETW RLD All that matters in the world of fleet
July 2016
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THE NEW SEAT ATECA WITH WIRELESS CHARGER A BETTER WAY TO ENJOY STAYING CONNECTED
TECHNOLOGY TO ENJOY SEAT FOR BUSINESS Average fuel consumption: 4.3 - 6.2 l/100 km. Average CO2 mass emissions: 112 - 143 g/km. Provisional data.
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THE NEW SEAT ATECA ADVANCED TECHNOLOGY FOR MORE ENJOYABLE BUSINESS
TECHNOLOGY TO ENJOY The New SEAT Ateca comes equipped with the latest technology to make the day-to-day work easier and simpler. From the Wireless Charger and Full Link technology to the Virtual Pedal and TrafďŹ c Jam Assist, every feature aims to make your workday stress free. Thanks to all of this, business becomes easier and more enjoyable.
SEAT FOR BUSINESS Average fuel consumption: 4.6-6.6 l/100 km. Average CO2 mass emissions: 94-154 g/km.
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INTERNATIONAL
FLEETW RLD All that matters in the world of fleet
July 2016
contents
If your phone isn’t NFC compatible, scan the QR code
THE NEW SEAT ATECA WITH WIRELESS CHARGER A BETTER WAY TO ENJOY STAYING CONNECTED
TECHNOLOGY TO ENJOY SEAT FOR BUSINESS
FOLLOW US ON:
SE AT.COM
Average fuel consumption: 4.3 - 6.2 l/100 km. Average CO2 mass emissions: 112 - 143 g/km. Provisional data.
Publisher Jerry Ramsdale jerry@fleetworldgroup.co.uk
06 Possible ‘Brexit’ ramifications.
16 Under the skin of Peugeot’s 3008.
28 François Goupil de Bouillé of Infiniti.
30 Analysing Volvo’s fleet portfolio...
Editor John Kendall john@fleetworldgroup.co.uk Deputy Editor Alex Grant alex@fleetworldgroup.co.uk Business Editor Natalie Middleton natalie@fleetworldgroup.co.uk Features Editor Katie Beck katie@fleetworldgroup.co.uk Sales Director Anne Dopson anne@fleetworldgroup.co.uk Sales Manager Harry Whyte harry@fleetworldgroup.co.uk Sales Executive Claire Warman claire@fleetworldgroup.co.uk Circulation Tracy Howell tracy@fleetworldgroup.co.uk Dawn Mitchell dawn@fleetworldgroup.co.uk Head of Production Luke Wikner luke@fleetworldgroup.co.uk Designer Samantha King sam@fleetworldgroup.co.uk Web Designer Dan Desta daniel@fleetworldgroup.co.uk
04 Fleet Review John Kendall on why parts longevity is now the norm. 06 Inside Knowledge How the UK car industry could be affected by ‘Brexit’. 08 News The biggest stories from a month in the international fleet world. 16 Spotlight An in-depth look at Peugeot’s new user-chooser friendly 3008. 18 Business Why the effects of a potential ‘Brexit’ are so difficult to predict. 20 Feature Examining the increasing popularity of mobility packages in Europe. 24 Fleet Focus Ireland’s impressive financial recovery and car sales boom.
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
27 IAM Report Advice for driving in Ireland for business travellers. 28 Interview François Goupil de Bouillé on Infiniti’s new fleet focus. 30 Profile The success of new XC90 and Volvo’s plans for the new CMA platform. 34 Launch Report SEAT Ateca / Smart Fortwo Cabrio / Ford Transit / Audi A4 Avant.
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40 Fleet in Figures Breaking down the latest global vehicle sales by region.
internationalfleetworld.com / 03
fleet review This month, editor John Kendall looks at the possible fallout of the EU referendum, Ireland’s resurgence and Infiniti’s big plans.
UK referendum UK voters have cast their votes in favour of leaving the European Union and it’s clear the UK will be leaving one of the largest free trade agreements in the world. It is likely to have a very big impact on the motor industry in the UK, which could be good or bad, depending on where you are reading this. Since I travel around Europe quite often, I see people from many different countries working together, because they are free to do so. The products we buy benefit as a result. There are many problems too and every member state would like to see changes, but the message I have heard quite clearly in the past few months is that very few people outside the UK can understand why the UK might want to leave.
Lifetime parts I can remember when cars needed replacement parts frequently. Wiper blades, brake linings, spark plugs, shock absorbers and other parts because they simply didn’t last the lifetime of the vehicle. The ‘bounce test’ was always part of buying a used car, to see if the shock absorbers needed replacing. A recent trip with Monroe which produces shock absorbers for a large number of cars across the world showed how and why things have changed. Shock absorbers are
built in clean room conditions with parts that are designed to last the lifetime of the vehicle. Electronic control systems provide ride comfort and handling that would have been impossible a few years ago. And most of us may not even notice it.
Ireland soars We cover Ireland in our country profile this issue. The 2008 financial crisis hit the country harder than many other European countries and left the economy there in ruins. As we see on page 24, the turnaround has been remarkable. Growth has returned to the economy and that is having a positive effect on the car market. Ireland has a good track record in attracting investment into the country and this has played a part in helping to stabilise the economy.
Infiniti’s ambitions I would not underestimate just how difficult it is to establish a new car brand. Hyundai is about to begin the process with Genesis and Infiniti, although established in the US for as long as Lexus, is still a relatively new kid on the block in Europe. The arrival of C-segment models could change the company’s fortunes in Europe and we caught up with vice-president François Goupil de Bouillé to hear Infiniti’s plans for the fleet sector on page 28.
Thinking big... Carlos Ghosn with Infiniti’s new Q60, which alongside C-segment models should put Infiniti firmly on the fleet map.
visit internationalfleetworld.com
04 / internationalfleetworld.com
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inside knowledge
Stay or leave? IFW Editor John Kendall considers what leaving the EU could mean to the UK motor industry...
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y the time you read this, the electorate in the UK will have voted in the national referendum on whether or not the country should remain a member of the European Union and we now know the vote supported the campaign to leave. UK motor manufacturing has gone through many changes since I first wrote about the motor industry almost 28 years ago, but it is still an important and integrated part of the EU automotive manufacturing sector. It is the fourth largest motor manufacturer in the EU, behind Germany, Spain and France and produced 1,587,677 cars and 94,479 commercial vehicles in 2015. Manufacturing includes cars and light CVs from Aston Martin, Bentley, Caterham, Honda, Jaguar Land Rover, Lotus, LTC, McLaren, MG, Mini, Morgan, Nissan, Opel/Vauxhall, Rolls Royce and Toyota. DAF and Dennis Eagle produce trucks while Alexander Dennis, Euromotive, Mellor, Minibus Options, Optare, Plaxton, Warnerbus and Wrightbus build buses and coaches. Ford builds engines as does Bentley, BMW, Cummins, Honda, JLR, Nissan and Toyota. Then there's the extensive supply chain, making the required components as well as centres of design and engineering excellence. In a sense this is just the tip of the iceberg as there are financing operations, highly detailed transport operations and many other related activities, which altogether employ thousands of people. I have visited many manufacturing sites over the years and am currently finishing a press trip with a prominent component supplier. Over the years I have learned about the wafer thin profit margins in the supply chain, part of the highly cost conscious competition that goes with a market economy.
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That also applies to the motor manufacturing sector. Plants from the same company, but different parts of the EU are involved in repeated competitive tendering processes to win the contract to manufacture replacement models. With model cycles stretching from between four and 10 years, depending on the vehicle, manufacturing plants cannot guarantee that they will be building the replacement for Model X, just because they are building the current vehicle. Ever since I first wrote about the industry 28 years ago, manufacturing overcapacity has plagued the global industry. There are too many plants building too many vehicles, which helps to make it a buyers' market, but it has proved a difficult problem for the industry to solve. UK voters could have made it easier for manufacturing planners to solve some of these problems. Now the UK will be leaving the EU and the free movement of British products and people is put in doubt and tariff barriers are raised, motor manufacturing in the UK may be facing a bleak future. Why would manufacturers make future investments in such circumstances? Skills don't necessarily carry the same levels of importance that they used to. Look how quickly motor manufacturing has matured in South Korea which had no skill base or industry 40 years ago. UK plants have been established in places where there was no history of motor manufacturing. Then there is the example of Australia, where an established motor industry and supply chain will have virtually disappeared by the end of next year. It has gone because as soon as one manufacturer closed its doors, the supply chain was no longer viable.
Meet the game changer
The new Hyundai Tucson
This is the car that demonstrates the power of change. Bold, expressive design, a completely new platform and class-leading internal dimensions combine to make the all-new Tucson an unbeatable package. There’s a wide-opening panorama roof, smooth-changing 7-speed dual-clutch transmission and other desirable features that are unique in this class. Competitive pricing, low operating costs and high residual values make the all-new Tucson an ideal fleet vehicle. But the major attractions are the way it looks and the way it drives. The new Hyundai Tucson. Change is good.
Combined fuel consumption for the Tucson range: 4.6 - 7.6 l/100 km. Combined CO2 emissions for the Tucson range: 119 - 177 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
manufacturer news
New Mercedes E-Class Estate revealed
ercedes‐Benz has revealed the new E‐Class, M which goes on sale later this year. The sixth‐generation model offers a cargo volume of 670 litres and rear head and legroom said to be the best in this class. The rear seat backrest folds down in a 40:20:40 split at the press of a button, extending capacity to 1,820 litres with space for a Euro Pallet.. From as soon as late 2016, the estate will again be available with a third, folding bench seat for children. From launch, the new estate will be available in the E 200 model version with a 184hp four‐cylinder petrol engine along with the 194hp E 220 d featuring an all‐ new four‐cylinder diesel engine, and the 211hp E 250. In the fourth quarter of 2016, the 150hp E 200 d will follow, accompanied by the six‐cylinder E 350 d and the 333hp E 400 4MATIC. At market launch, all models are equipped as standard with the new 9G TRONIC nine‐speed automatic transmission. Emissions start from 109g/km for the E 200 d with official NEDC combined consumption of 4.2l/100km.
Infiniti EMEA new appointment
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nfiniti has appointed Olivier Marion as EMEA corporate sales general manager as part of a number of major changes within the sales operations and network devel‐ opment team. Effective immediately, Mr Marion will be based in Montigny‐le‐Breton‐ neux, France and will be responsible for planning and implementing sales strategies that ensure business continuity, managing and leading all business‐to‐business sales as well as defining core fleet and used cars strategies. Before joining the premium brand, Mr Marion was corporate sales general manager in Nissan Motor Company, where he had started his career as interna‐ tional fleet sales manager in 2013.
Ford launches budget KA+ five-door hatchback
Skoda publishes design sketch of Kodiaq large SUV
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koda has previewed its forthcoming Kodiaq large SUV with new design sketches, ahead of its debut at the Paris Motor Show in September. The new images show that the production version is likely to remain faithful to the concept, and brings sharp creases, crystalline‐shaped headlights – in homage to Czech crystal glass art, plus a long wheelbase and short overhangs. No images of the interior have been published but Skoda said it will bring generous space and the largest boot in its class, while the two extra seats in the third row will be offered as an optional extra.
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ord has unveiled its KA+ five‐door hatchback, F which replaces the Ka city car to provide a budget‐orientated supermini to rival models such as the Dacia Sandero and Opel Karl/Vauxhall Viva. The KA+ is based on Ford’s global small‐car platform, and is slightly shorter than the Fiesta, but 29mm taller. Ford promises class‐leading front headroom and best‐in‐class legroom for rear passengers. The KA+ also brings 270 litres of luggage space plus 60/40 split‐folding rear seats, and 21 stowage locations for small items throughout the cabin. Just one engine will be offered – a new 1.2‐litre Duratec petrol engine with 70 and 85hp power outputs and combined with a standard five‐speed manual transmission. Both engine options offer CO2 emissions of 114g/km, with official combined fuel consumption of 5.0l/100km. Order books are open now and first deliveries start later this year.
For the latest news, visit internationalfleetworld.com
Audi previews new A5 Coupe
A
udi has unveiled its lighter, more aerodynamic and more spacious second‐generation A5 Coupe, ahead of its launch in Europe from this autumn. The newcomer is based on the latest A4, and will get assistance and connectivity systems shared with the saloon, including Apple and Android smartphone connectivity and the ‘virtual cockpit’ digi‐ tal instrument panel. Styling updates bring changes to the single‐frame grille plus new headlights and a longer bonnet. The new version is slightly longer, narrower and lower than its predecessor, but with increased space for passengers and luggage. Its 465‐litre boot is almost as large as the biggest compact executive sedans. Helped by the use of new materials and a lightweight design, the new model is up to 60kg lighter. Five engines are on offer: two TFSI and three TDI power units, producing 286hp, with fuel economy from 4.1l/100km and 106g/km CO2 emissions for the 2.0 TDI ultra. It also features Audi's new quat‐ tro four‐wheel drive system, which can decouple the rear axle to save fuel when the extra traction isn't required.
fleetiinquotes a few soundbites from a month in fleet
It's encouraging to see that manufacturers are cleaning up engine emissions. Both large and small displacement engines are capable of hitting the latest targets if correctly optimised.
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Nick Molden, CEO and founder of Emissions Analytics, on latest EQUA Air Quality Index ratings.
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Benefiting from many years in direct contact with our clients, I know their challenges and requirements first-hand. Meeting their needs is and remains my top priority.
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Richard Schooling, Alphabet’s new chief commercial officer, on his appointment.
Updated Opel Zafira Tourer revealed
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pel has announced details of its refreshed Zafira Tourer MPV, which arrives from this autumn. The latest MPV is marked out by a subtle update of the exterior styling, including reshaped front and rear light units, the former featuring adaptive LED lighting which is said to be a segment first. The cabin takes cues from the Astra and Insignia, with a new centrally mounted touchscreen replacing many of the physical buttons on the redesigned dashboard. Functions such as the Flex7 seating are unchanged. Two IntelliLink infotainment systems will be offered for the new Zafira. R4.0 IntelliLink offers Apple CarPlay and Android Auto compatibility. Furthermore, Opel will offer Navi 950 IntelliLink for customers looking for an infotainment system with on‐board navigation. Opel OnStar will also be offered. Engine details have not been announced yet.
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Introducing new laws when there’s no enforcement simply means those who play by the rules are stuck with more costs while the cowboys carry on doing what they think they can get away with.
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James Firth from the FTA on plans for an EU public consultation on operator licensing.
internationalfleetworld.com / 09
E-fficiency Class. The new E-Class by Mercedes-Benz. Masterpiece of Intelligence. Equipped with new diesel and PLUG-IN HYBRID engines, as well as the most innovative technology in its class, to fulfil one aim: Making your fleet more efficient, more comfortable, more economical. mercedes-benz.com/fleet
environmental news
PSA’s new-generation EV rollout starts with DS
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SA Groupe will launch its first plug‐in hybrid in 2019 as a high‐performance DS model, with eleven plug‐ins planned to follow over the following two years across its three brands. Confirmed at the group’s ‘Innovation Day’ event, the French carmaker said it will develop plug‐in models on two platforms – EMP2, as used by the Peugeot 308 and Citroën C4 Picasso, and the CMP architecture being developed with its Chinese partner Dongfeng Motors for global use in the compact segments. EMP2 will accommodate two and four‐wheel drive plug‐in hybrid technology, for saloons or hatchbacks and crossovers respectively. Both will use petrol engines producing between 150 and 200hp, paired with a powerful electric motor and eight‐speed automatic gearbox, and offer an electric range of up to 58km. Four‐wheel drive versions have a second electric motor at the rear axle, similar to the Hybrid4 system, and a slightly larger‐capacity battery – 13kWh instead
of 12kWh. Unusually, for a plug‐in hybrid, these will also charge at up to 6.6kW, as offered by fast domestic and workplace chargers. Fully electric models will be offered on an adapted CMP platform, which PSA Groupe has been developing for just over a year. These will target the B and C segments, providing a range of up to 450km from a 50kWh battery and ultra‐fast DC rapid charging restoring 80% of the range in half an hour via a Combined Charging Standard connector. As yet, PSA Groupe hasn’t confirmed which models will get the technology, but the first plug‐in hybrid will be marketed under the DS brand in 2019 and likely to be found in the brand’s forthcoming crossover. Seven models, spanning Citroën, DS and Peugeot, will have plug‐in hybrid drivetrains by 2021. The e‐CMP plat‐ form’s first EV will also arrive in 2019, with four further electric cars across the three brands to be available by 2021.
DC rapid charging speeds to triple this year
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he CHAdeMO DC rapid charging standard, used by Korean and Japanese manufacturers, will soon be upgraded to offer three times the power output of today’s units, preparing for larger batteries in next‐generation electric vehicles. Developed by the Japanese CHAdeMO Association, the standard is used by Kia, Mitsubishi, Nissan and PSA Groupe and has a maximum power output of 50kW ‐ enough to offer an 80% charge in around half an hour, ideal for short‐stop locations such as motorway rest areas. With new models getting higher battery capacities, that output will need to increase to avoid long stops. The asso‐ ciation’s new protocol will enable 150kW charging
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without changing the connector, which means upgraded units will still be able to offer a slower charge for older vehicles. It expects the first units to be ready early next year, and is already working towards a 350kW version. CHAdeMO’s secretary general, Dave Yoshida, said: “One of the purposes of the Association is to evolve CHAdeMO protocol so that it can better respond to market needs. We see a movement towards mass market EVs with higher capacity batteries and we, as the Association of fast charging protocol, will prepare for it by working on the high power protocol. This will enable faster deployment of the high power charging infrastructure, in preparation for EVs that can charge with higher power.”
For the latest EV news, visit evfleetworld.com
Entry-level Tesla Model S offers in-life range upgrades
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esla has equipped the entry‐level Model S with the same 75kWh battery pack used in the Model X, but with 20% of the capacity ‘locked’ as an optional extra. The revised line‐up means the carmaker only has to build two battery packs, despite offering three different versions, which is said to cut production costs. It reintroduces the Model S 60kWh, but buyers can opt to upgrade to 75kWh as a cost option, either at the factory or as an over‐ the‐air software upgrade after delivery. Tesla said the entry‐level 60kWh is targeting monthly costs similar to a compact executive saloon – a market it will be challenging head‐ on with the Model 3 next year. All cars are fitted with the sensors for the Autopilot driver assistance technology, but only the autonomous braking and side collision avoidance systems are unlocked as stan‐ dard. The 60kWh version can also be fitted with a dual‐motor four‐ wheel drive system.
Mercedes-Benz fuel cell SUV to launch in 2017
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ercedes‐Benz will become the first manufacturer to offer a series‐produced plug‐in hybrid with a hydrogen fuel cell drive‐ train instead of a petrol or diesel engine, featuring a version of the GLC confirmed for a 2017 launch. The GLC F‐Cell is a result of Daimler developing a 30% smaller hydrogen fuel cell system which fits into a conventional engine compartment, and which requires 90% less platinum to manufacture, cutting costs. A pair of hydrogen tanks store enough ‘fuel’ to travel 450km on a three‐minute fill. Otherwise, it functions much like the GLC 350 e petrol‐electric plug‐in hybrid, which is built on the same production line. Its 9kWh lithium‐ion battery offers a 50km electric range, charged via a socket on the rear bumper. Daimler has yet to confirm pricing or launch markets, but sales are likely to be weighted towards regions with developed refuelling infrastructure.
in brief Kia joins smart charge project Kia Motors America is supplying six Soul EVs to the University of California, Irvine, as part of a project which will develop and demonstrate vehicle‐to‐grid smart charging software algorithms. The aim is to enable EVs to function as backup energy storage during peak demand, reducing the need for additional grid capacity.
Route Monkey receives R&D funding for EV driver app Algorithm specialist Route Monkey has received €360m from Scottish Enteprise to help accelerate development of a smartphone app which will plan EV driving routes based on the available range and charging points. The solution is aimed at consumers and smaller leets.
Zipcar launches 50-strong PHEV fleet in London Car sharing service Zipcar has deployed a leet of 50 Volkswagen Golf GTE plug‐in hybrids in central London, supported by a network of dedicated charging points. The cars are available for the same cost as a petrol equivalent, and are part of the city’s target of 50% electric sharing leet by 2025.
Veefil goes global with government investment Australian fast charging specialist Tritium has received AU$5m (€3.3m) to increase capacity for international exports of its Vee il charger. The invest‐ ment comes from the government’s Busi‐ ness Development Fund, and is equally split between public and private funding.
0.92%
EV in numbers
Plug-in share of all registered vehicles in Birmingham – four times the concentration of London. Source: Department for Transport
100
BMW i3 electric vehicles deployed on the LAPD’s motor pool fleet. Source: LAPD/BMW
internationalfleetworld.com / 13
business news
New partnership to bring transparency to fleet insurance
in brief
leetVision has partnered with insurance specialist, FleetInsurancePlus to FBetween assist fleet clients in bringing transparency to their total cost of insurance. them, the two companies are providing consultancy for fleet
New hydrogen project
clients to help to identify a proper fleet insurance strategy which takes into account a variety of factors, including risk profiles and corporate culture. As a result, they believe they are able to make savings of between €150‐ 300 per vehicle per year by optimising the total cost of insurance (TCI). Bart Vanham, director of FleetVision/TCOPlus, said: “For each and every budget and corporate culture, the optimal mix can be put together to achieve the optimal result.”
Europcar moves into Spanish car sharing market
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uropcar Group has acquired Spanish car sharing specialist Bluemove. The acquisition, terms of which have not been disclosed, has been announced through the Ubeeqo car sharing start‐up in which Europcar took a majority share at the start of 2015. “We are pleased that this acquisition strengthens, with Ubeeqo, our leadership in mobility markets and allows us to attract and address new customers. Together, we are going to simplify customers’ lives by provid‐ ing them with solutions that adapt seamlessly to their usage patterns and mobility needs,” commented Philippe Germond, chairman of the Europcar Group Management Board.
A new project to significantly expand the European hydrogen vehi‐ cles refuelling infrastructure and fleet has been announced. The six‐ year H2ME 2 project will include the deployment and operation of 1,230 fuel cell vehicles and add 20 extra hydrogen‐refuelling stations (HRS) to the European network.
EU explores operator licensing in EU The European Commission has announced the first of three consultations about changes to operator licensing. The consultation is open until 15 September 2016, with full details on the European Commission website.
BCA strengthens team
KAR Auction Services acquires GRS Remarketing S‐based KAR Auction Services has announced the acquisition of GRS Limited in the UK for an undisclosed amount. UJimRemarketing Hallett, KAR CEO and chairman, said: “During the past 20 years, GRS has established a successful online vehicle remarketing business in the UK through robust technology, effective sales and operations, a healthy buyer network and strong relationships with commercial customers. KAR is committed to international growth, and the acquisi‐ tion of a leading technology business like GRS complements our wide range of vehicle remarketing services.” GRS will be renamed ADESA UK following the completion of the sale. Jonathan Holland, vice president of business development for ADESA UK, will assume the position of MD.
Quartix appoints head of French operations
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uartix has appointed Donato Quagliariello to a director‐level role to head up its French operations. Mr Quagliariello brings to Quartix an extensive track record of success in international business development at ExxonMobil and Cedo. Andy Walters, MD of Quartix Ltd, commented: “We are delighted to welcome Donato to the company. His education and background in inter‐ national sales and marketing are a perfect fit with the requirements of our operations in France, which have been steadily growing since 2010.’’
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BCA has appointed Konrad Zwirner to the new role of European strate‐ gic development director. The firm said the move signals a strategic goal to deliver pan‐European supply chain solutions.
Sofico reaches milestone Sofico has reached a new milestone for its Miles software platform. The technology is now in use at 30 differ‐ ent sites in 18 countries, managing 1.25m vehicle contracts.
CoolKit expansion UK‐based CoolKit has appointed Netherlands‐based ClimaRunners as its first authorised distributor in continental Europe for its full range of refrigerated vans, van conversions and associated products.
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SPOTLIGHT Peugeot 3008
Tough stuff Likely to be a key model for Peugeot’s user-chooser presence, the new 3008 makes a decisive step into the centre of the crossover sector, as Alex Grant explains.
Less weight, more space Despite the outgoing 3008’s versatility, it perhaps failed to achieve its full potential because it looked more like an MPV than an SUV. That’s not a mistake Peugeot is making twice – the new version looks, perhaps predictably, like a scaled up 308, with a flat bonnet and smaller window line adding a muscular look. Visually, it’s unmistakeably an SUV, and that’s important. Using the 308’s platform has saved an average of 100kg compared to the old car, despite a slight overall increase in size. Exterior dimensions are almost the same as the benchmark Nissan Qashqai, with more space in the cabin and almost a 25% increase in boot capacity – this is now one of the best in the class. All seats except the driver’s can fold flat, accommodating loads up to three metres long. Those are the MPV qualities that crossover customers desire.
CO2 from 100g/km The engine line-up is similar to the 3008. Likely to be the preferred fleet option, diesels comprise 100 and 120hp versions of the 1.6-litre BlueHDI engine, alongside the 2.0-litre unit with 150 or 180hp (the latter found in sporty GT versions) and 1.2 and 1.6-litre turbocharged petrols. The BlueHDI 120 is the most efficient, emitting 100g/km CO2 – equating to around 3.8l/100km, which puts this among the most economical C-SUVs on the market. Automatic transmissions are offered on all except the BlueHDI 100, and Peugeot is offering its all-terrain traction control system – Advanced Grip Control – in the 3008, which suggests there won’t be a four-wheel drive version, and there’s no news on a hybrid either. As a clever move to avoid reduced efficiency on top trims, the 19-inch wheels use narrow, low rolling resistance tyres.
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Moving upmarket The 3008 has a strong emphasis on technology. Like the 308, most of the physical controls have moved to the 203mm central display, and the infotainment system features full Android and Apple smartphone streaming, a capacitive touchscreen and navigation with TomTim live traffic information. Early photography shows a 312mm customisable screen in front of the driver, though this is likely to be optional. To be expected, there’s a full suite of driver assistance features available too, including active braking and lane-keeping, traffic sign recognition and a simulated topdown view for easier parking. The 3008 also features a docking station to charge an electric bike or scooter in the boot.
FLEET FACT Only the RenaultNissan crossovers offer lower CO2 emissions than the 3008.
What we think... The C-SUV segment is a part of the market defined as much by design as it is by functionality, and the 3008 finally looks right for the job. Peugeot says this sector accounts for 10% of European sales, and that’s exactly where its newcomer will aim. But with competitive newcomers from SEAT and Renault and the biggest-selling models looking better than ever, Peugeot will still have its work cut out finding a place on choice lists. AG
internationalfleetworld.com / 17
FEATURE Brexit
Bracing for Brexit Leasing companies are preparing for the results of Britain’s Brexit referendum, but the consequences are hard to predict, reports Tim Cross.
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s the British prepare themselves for life after the referendum, when the UK voted to leave the Euro‐ pean Union. While UK citizens are tied up with the pros and cons of EU membership, businesses are more concerned with the ‘ifs’ and ‘whens’ of this historic deci‐ sion. While most companies wish to stay out of the politi‐ cal debate, they must now all prepare for the consequences of the UK, one of the top five markets in the European fleet and leasing sector, leaving the Union. The problem faced by all businesses is that it’s hard to draw contingency plans for Brexit when we can’t be sure of how the UK outside the EU would look. Will it reach a Norwe‐ gian‐style agreement to join the European Economic Area, where it maintains access to the single market, still comply‐ ing with EU regulations and unable to restrict immigration? Or a Swiss style series of bilateral accords, where it has access to only certain sectors of the single market? There are many models for Britain’s relationship with the EU, now that is has chosen to leave, and therefore many uncertainties.
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Too soon to comment? The leet sector is not spared these uncertainties. Those in the industry feel it is too soon to comment on the impact of Brexit. A spokesman for the British Vehicle Renting and Leasing Asso‐ ciation (BVRLA) told us that at the moment, there is very little detailed analysis of the regulatory or economic implications of a British departure, and the potential risks involved, which of course makes planning ahead dif icult. Leasing companies are preparing for the forthcoming changes as best they can though; LeasePlan, for example, says that while a stable busi‐ ness environment is preferable, they have contingencies in place and will now be working even more closely with their customers. Despite the uncertainties, we can still map out possible consequences. In some ways, the impact of Britain leaving Europe on leet and leasing will be muted. Fiscal treatment of leasing, for example, is already controlled by each individual country within the EU, so there is no reason for the UK to change these rules following the exit from Europe. “Leasing and the iscal
“If the UK were not to secure free trade terms with the EU, any British cars sold in Europe would become subject to tariffs, and vice versa.”
rules around it, company car taxation and the like, are deliv‐ ered at individual country level. In that regard, with Brexit, I wouldn’t have thought there’ll be much change,” says Graeme Banister, Frost and Sullivan’s leet specialist.
Tax rates and standards That’s not to say Brexit won’t have consequences. Differences in regulations and standards could theoretically appear between the EU and UK, hindering trade in vehicles between the two, but depending on any trade deals struck post‐Brexit, the UK may have to keep the same regulatory standards as the EU anyway. That would certainly be the case for UK manufac‐ tured vehicles sold within the EU. A change in Britain’s VAT rate could hit the industry. With‐ drawing from Europe will give Britain free reign over VAT; however, it’s unlikely we will see a change from the current rate any time soon. The UK already has room within the EU’s constraints to move its VAT rate either up or down from its current level, and so if the UK’s government wanted a lower or higher rate, they’d likely already have changed it. UK leasing companies might now have to renegotiate discounts with car manufacturers. Banister questioned: “Might suddenly the UK being outside Europe lead to differing discounts? On the basis that a big chunk of the production and the manufacturers are based on the continent, would they start saying, our master agreement was for Europe, you’re now not a part of Europe, so we’re going to have to start rene‐ gotiating those terms? That could be a rami ication.” Where master agreements don’t explicitly mention the UK, they may need to be reviewed, which would open up opportunities for renegotiations. This could see UK companies reach better or
worse terms, depending on the agreement reached. Brexit’s impact on the automotive industry more widely will hit leet and leasing too. If the UK fails to secure free trade terms with the EU, any British cars sold in Europe would become subject to tariffs, and vice versa. European car manu‐ facturers themselves would have to pay more for British engines, and other car parts. Britain would also be excluded from future trade deals that the EU strikes, and it may have to wait to make its own deals; US President Barack Obama recently stated that Britain will now go to ‘the back of the queue’ for trade negotiations following an exit from the Union.
Lease accounting rules Any of these changes that Brexit may bring, though, will likely pale in comparison to the upcoming adjustments to lease accounting rules. New regulations to comply with and tariffs on car sales between the UK and EU will be costly, but if leasing is forced on to balance sheets, the whole industry may have to adapt. Banister emphasised: “That’s the more pressing, top of mind issue for all those involved in leasing right now. When leasing does become on balance sheets, rather than off as it is now, what will that mean? Are we going to move more to a ‘right of use’ system, rather than leasing? That potentially has huge rami ica‐ tions for the leasing industry.”Asked whether Brexit could affect these changes, Graeme said: “I wouldn’t have thought so. They’re international discussions… in the same way that they’ll apply to the US, if (the UK) is on its own, they’ll apply there too.” Since Britain has now voted to leave, leet and leasing will certainly feel the effects. For leasing companies though, atten‐ tions will be focused elsewhere, on the bigger challenges that linger on the horizon.
internationalfleetworld.com / 19
FEATURE Operational Leasing
Business car or mobility package? The Power of Choice ALD Free gives employees the freedom to build their own flexible mobility packages.
Is the traditional business car likely to vanish? Will mobility packages provide an alternative? Steve Banner considers the future.
I
s the company car dead? Reaching such a conclusion might be under‐ standable when reading some of the publicity material pumped out by many of the world's major automotive leasing companies. Instead of discussing the finer points of operational leasing agree‐ ments they seem to be rather more inclined to focus on car‐sharing along with mobility packages that include everything from tram tickets to bicycle rental. Such ways of getting from A to B
20 / internationalfleetworld.com
are of course more environmentally‐ friendly than jumping into a diesel hatchback; even one that meets the latest and most‐stringent exhaust emission regulations. In some cases lessors have no option but to seek alternative ways of provid‐ ing business transport given the legisla‐ tive pressures that are being imposed on both them and their customers. Other imperatives include the need for fleet operators to be ‘seen to be green’ by their customers, which means doing
all they can to shrink their carbon foot‐ print and minimise emissions of NOx and particulates. “In future the provision of a financed vehicle with all the added ancillary services required to keep it on the road will simply not be enough to meet the changing mobility needs of companies and their employees,” says Hitachi Capi‐ tal Vehicle Solutions chairman, Simon Oliphant. “Travelling on company busi‐ ness may mean using public transport ahead of using a car.”
Car sharing Launched in June 2015, initially in the Netherlands and Luxembourg, LeasePlan’s SwopCar car‐sharing service is rapidly increasing in popularity, says chief commercial offi‐ cer, Nick Salkeld. “We developed it in order to meet the growing demand for driver mobility solutions that go beyond traditional lease products,” he explains. “As a result of trends such as urbani‐ sation, sharing, eco‐awareness and the rise in the use of mobile devices and connectivity, we foresee a shift from vehi‐ cle‐oriented services to services oriented around the needs of the individual driver. “To stay ahead of these changes we’ve developed a mobility strategy. It gives us the opportunity to extend the LeasePlan offering from full‐service vehicle leasing to a range of forward‐ thinking, flexible solutions,” he continues. “Our company will be a one‐stop‐shop for corporate mobility by delivering a package of flexible, customisable offerings including rental, short‐ and long‐term leasing, car‐sharing and pool management for every‐ body from large international clients to small and medium‐size enterprises and private leasing clients. “This strategy has resulted in SwopCar among other solu‐ tions,” he says. “By allowing a company’s employees to take and share a SwopCar when needed, vehicle utilisation is
Green zone Aware that it needs to address urban air pollution, the Chinese government is turn‐ ing Lingang, the southern district of Shang‐ hai, into a Green Zone. It involves placing tight restrictions on anything powered by an internal combustion engine. Business people and private motorists still need to get about, however, and public transport is not always the answer. As a consequence BA‐SHI, Arval’s Chinese partner, suggested that the government sanction the introduction of a car‐sharing
maximised, carbon emissions are reduced and the need for parking spaces is considerably diminished.” Eligible employees can check vehicle availability and plan their trip accordingly by using an online reservation platform and a smartphone app. They can do this themselves without constant recourse to the fleet manager who in turn no longer faces the burden of organising a traditional pool car service. Cleaning, refuelling and maintenance are all taken care of by LeasePlan’s network of service providers. “We’re offering more flexibility and lower costs,” Salkeld says. “We’re now rolling out SwopCar in over 11 countries,” he continues. “Among those we are focusing on are Italy, Spain, France and Portugal. “We’re getting a lot of interest from other countries outside Europe too, including the United Arab Emirates (UAE). We should be present with it in at least 20 countries within the next 12 months or so.”
programme similar to one that Arval has developed for use in other markets. Adjusted to local requirements, the scheme was successfully piloted in 2015. In March of this year it was implemented using an initial 30 electric Roewe e50s plus five hybrid Roewe 550s, all Chinese‐built. Operating under the U‐LIN CarShar‐ ing banner, the programme is starting by addressing the private market. It will then move on to tackle the corporate sector through Arval Jiutong, created as a joint venture last year. The scheme is being supported by the Alipay e‐payment service.
Mobility chain “Until recently car leasing companies were convinced that car financing and company car service delivery were their core activities and always would be, but we were wrong,” says Kent Bjertrup, chief commercial officer at ALD Inter‐
national. "There is only one way to continue to succeed in car leasing and fleet management in Europe and in emerging countries and that is to consider the complete mobility chain.” With that aim in mind, ALD has launched ALD Free. It describes it as a plat‐ form that will enable employees to shape their own, custom‐built mobility packages and view their travel history 24/7. All sorts of combinations are available ALD says, from an electric bike to a chip‐ card that will enable staff members to avail themselves of various combina‐ tions of public transport. Individuals can immediately see which options are avail‐ able within their budget and their employer's requirements. “It means companies can give their employees more control over their own mobility which makes them more attractive places to work,” says ALD Automotive marketing and strategy manager, Lonneke van der Horst.
internationalfleetworld.com / 21
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FEATURE Operational Leasing
Tailor-made Leasing companies are increasingly aware of the need to offer multimodal travel solutions to suit businesses’ needs and budgets.
→
Mobility packages There is growing interest in mobility packages that include everything from bus tickets to bicycle hire and it is an area LeasePlan is addressing. “In the Netherlands we’ve got Mobility Mixx with over 100,000 users of our mobility card and we’ve got a similar scheme in Belgium,” he says. “We’re offering mobility programmes in a number of other countries too and they are pretty successful,” Salkeld continues. “But in each case we have to look at the level of demand from our clients before we introduce such schemes and we have to recognise that they may not be suitable for all countries.” The Netherlands can support Mobility Mixx because it has such a well‐developed infrastructure. Not all countries do. Salkeld does not see schemes such as SwopCar and Mobility Mixx gradually eliminating the traditional company car acquired under a contract hire with maintenance agreement. “Instead I think they will expand the market,” he observes. “They represent incremental business.” Far from being in decline, operating leases still have plenty of potential for growth, he contends. “In France and Italy their level of penetration is no more than 10% and 15% respectively while in Poland it is less than 10%,” he points out. “Remember that the demand for operating leases is still helping Lease‐
22 / internationalfleetworld.com
Plan achieve year‐on‐year growth levels of over 8%,” Salkeld says. “The tradi‐ tional company car continues to account for 95% of our activities.”
Flexible leasing Lease periods may shorten however in line with the needs of clients and reflecting the fact that they may be being offered contracts by their own customers that are shorter in duration. “That’s why we’ve introduced Flexi‐ Plan,” Salkeld explains. “We originally launched it in Spain and it describes a lease that can run from one to 24 months, that is fully flexible in terms of mileage and that is not subject to a termination fee.” Assuming the customer can pass LeasePlan’s credit checks, it can be the ideal solution for start‐ups that cannot be certain about what their future transport needs are likely to be, and for businesses in countries still facing a degree of economic uncertainty. “We’re working on implementing it in Greece for example,” says Salkeld. BMW‐owned Alphabet is not ignoring alternative approaches to mobility and its AlphaCity corporate car‐sharing programme is now well established. Electric cars are being promoted under the AlphaElectric banner and the company can analyse a fleet and the routes its drivers use to determine where battery‐powered vehicles can be integrated into the mix.
It has recently revamped its Alph‐ aGuide app which delivers all sorts of useful information that users can access on their smartphones; what time they should leave to arrive at an appointment on schedule for example. More features will be added as the app evolves further.
Ride hailing Determined not to be left behind, and following a somewhat different tack, Volkswagen Group is investing US$300m in ride‐hailing provider Gett. Active in over 60 cities worldwide, including Moscow and New York, Gett enables consumers to book on‐demand transport for both people and goods. Its Gett for Business service is aimed at corporate clients and is used by over 4,000 companies worldwide. The deal will involve special car fund‐ ing packages being made available by VW to licensed Gett drivers. Gett will be rolling out its services across Germany during the first half of 2017 and plans to expand elsewhere in Europe. VW board of management chairman, Matthias Müller, says; “Ride‐hailing will be at the centre of our new mobility‐on‐ demand business which we are building up as our second pillar alongside our classic automobile business. “Our investment in Gett gives us instant access to a service which can benefit people all over the world,” he adds. And Gett and VW intend to co‐operate over autonomous driving.
If you want to manage your fleet efficiently and transparently, you need to consider alternatives to traditional closed-end calculations. By unbundling the services in a pay as you go model, you’ll not only achieve targeted potential savings, but you’ll also capitalize on proactive services. What exactly does this mean to you? As a world leader in fleet management, ARI supports you in your ongoing operations, e.g. billing, remarketing, fuel cards, maintenance repair or damage claims. We will also meticulously optimize all processes based on big data concepts. And always, with transparency in the foreground, thanks to online access to all decision-relevant reports and with open accounting based on actual costs per month, vehicle and service module.
Discover a new dimension of fleet management. +49-711-6676-17100 | sales@arifleet.de
FLEET FOCUS Ireland
Return of the Celtic Tiger? Hyundai Tucson Tucson sales only began in 2015, when the car took 158th place in the Irish registrations table. In 2016 it is the best selling model.
Ireland has made an impressive recovery from the 2008 financial crisis and that is having a positive effect on the motor vehicle market, reports John Kendall.
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Toyota Toyota has had a strong presence in the Irish market for many years and continues to be a top-performing brand there.
W
ith a population of around 4.8m, the Republic of Ireland is one of the smaller countries in Europe, forming the bulk of the island of Ireland after the country was partitioned in 1922. Ulster in the north‐east of the island has remained part of the United Kingdom ever since. Ireland was particularly badly affected by the 2008 finan‐ cial crisis, leaving the country with heavy debts and a bank‐ ing crisis. Property prices rose steeply in the years before 2008, encouraging heavy borrowing to fund property purchases. The resulting collapse left banks and individuals with a large debt burden.
FINANCIAL RECOVERY, STRONG CAR MARKET It’s a different story eight years on. Ireland has made a remarkable recovery which has been led by export business in the biotechnology, finance and computer services sectors. Ireland has developed expertise in attracting inward invest‐ ment over many years and that seems to have helped the country to recover. Arguably this is good news too for the business car sector, where it would be reasonable to expect growth in the Irish car market, although against that, the Irish population is concentrated around two major cities, Dublin on the east coast and Cork in the south. Over 40% of the population lives within 100km of Dublin according to the CIA World Fact Book. There are smaller concentrations around Limer‐ ick and Galway, further west from Dublin. Outside the cities though, agriculture is a cornerstone of the economy and the population is spread thinly across the countryside. Access to a car is important for such a rural population. Overall, around 33% of the population is under the age of 25. Data from the Society of the Irish Motor Industry (SIMI) shows that new passenger car registrations reached 99,708 for the first five months of 2016, with the highest volume in January (39,722) followed by progressive decline through the following months. That compares with a total of 80,889 for the same period in 2015, representing a 23.3% increase over the January to May period in 2015. Sales followed a similar pattern with high registrations in January followed by similar declines as the year proceeded.
The January peak is explained by the Irish system of car registrations. Like the UK, there are changes of vehicle regis‐ tration plate twice a year with new plates in January and July. As the 2015 registrations graph shows, there is a simi‐ lar pattern to each half year, with registrations peaking in January and July followed by progressive decline until the next plate change. The fall‐off in sales is more pronounced through the autumn and winter months. For 2015, SIMI data shows full year passenger car regis‐ trations of 124,947, a figure that should be exceeded in July this year. That total represented a 29.8% increase over 2014 registrations. A report from the Bank of Ireland suggests that part of that performance was fuelled by scrappage and trade‐in offers. This report forecasts that new car sales will reach around 160,000 by the end of 2016. As the manufacturer data shows, the market is tightly contested with comparatively few registrations separating Volkswagen, Toyota and Hyundai. Toyota has had a strong presence in the Irish market for many years and continues to be a top‐performing brand there. Volkswagen was the leading brand in 2016, with the Volkswagen Golf the best‐selling model, a pattern similar to many other markets in Europe.
Manufacturer
Volume
Share %
Volkswagen
10,741
10.77
Toyota
10,491
10.52
Hyundai
10,299
10.33
Ford
9,908
9.94
Nissan
8,313
8.34
Skoda
6,520
6.54
Renault
5,873
5.89
Opel
5,663
5.68
Kia
4,609
4.62
Audi
4,061
4.07
Source: SIMI
internationalfleetworld.com / 25
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FLEET FOCUS Ireland
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TUCSON LEADS THE MARKET But as the following table shows, the pattern has changed for 2016, where the best selling model is concerned. Tucson sales only began in 2015, when the car took 158th place in the Irish registrations table, but this is a notable change, with an SUV as the best selling model in the country. SUV sales have been steadily rising in Ireland, not surprising given that many minor roads are of comparatively poor quality. The Tucson’s predecessor, the ix35 only achieved seventh place last year, with the Qashqai in third place, making it the best‐selling compact SUV in Ireland in 2015. Data on sales by body type suggests that hatchback models are the best selling so far this year, but MPVs now occupy second place. Traditional saloon cars with a sepa‐ rate boot were traditionally the preferred body type, but this body style is now the third best‐selling type in 2016. SUVs are classified generically as ‘Jeep’ in Ireland and are the fourth best‐selling body style so far in 2016. Diesel is still the preferred fuel in Ireland, with diesel‐ powered vehicles accounting for some 70.5% of the market so far in 2016. Diesel fuel is currently around 12% cheaper than petrol, which helps to explain its popularity. Petrol/elec‐ tric hybrid models have accounted for 1.6% of the car market this year, while take‐up of electric cars is small, accounting for just 0.28% of the market. That may be small but it is the largest alternative fuel sector in the Irish car market, with plug in petrol‐electric hybrids accounting for 0.15%.
Model
Volume
Share %
Hyundai Tucson
5,068
5.08
Volkswagen Golf
3,623
3.63
Ford Focus
3,289
3.3
Skoda Octavia
3,229
3.24
Nissan Qashqai
3,129
3.14
Toyota Corolla
2,606
2.61
Ford Fiesta
2,606
2.61
Toyota Yaris
2,462
2.47
Volkswagen Passat
2,289
2.3
Toyota Auris
1,993
2.0
Source: SIMI
SHARP RISE IN CV REGISTRATIONS Commercial vehicle sales are usually a good barometer of the health of an economy and for 2016 Light CV sales are running 26.7% ahead of the January to May period in 2015. SIMI data for 2015 shows that total LCV registrations for the year rose by 41.7% compared with 2014. For 2016 Ford is the market leader with Transit leading the Transit Connect, followed by the Volkswagen Caddy in third place. The heavy truck market is growing at an even faster rate, with registrations in 2016 running 53% ahead of 2015. Scania is the best selling truck brand, with Volvo close behind and Volvo leading the sales charts for specific models. The models selling well suggest growth in both the distribution and construction sectors.
26 / internationalfleetworld.com
SIMI has carried out its own analysis of the first quarter of this year. Author and economist Jim Power points out that the Irish economy returned to pre‐financial crisis levels of activity by early 2015 and has continued to improve since, supported by rising levels of employment and tax revenues on the increase. Power believes that GDP growth could reach 4.5% in 2016. Immediate concerns about the Irish economy are centred on the UK referendum on 23rd June, concerning continued membership of the EU. The UK is Ireland’s biggest trading partner and there are very real concerns about how the Irish economy might be affected by a vote to leave the EU.
INSURANCE COSTS RISING The cost of motoring has also helped the motor industry. Power writes, “In the year to March, the cost of petrol was 11.1% down on a year earlier; the cost of diesel was down 17.7%; and the price of an average new car was down by 2.8%.” On the other hand, insurance costs are rising, “The cost of insurance increased by 32.4%, and is now 47.6% higher than March 2012.” This appears to be related to the increase in the number of insurance claims. Despite the strengthening economy, Power highlights areas that could still challenge economic growth. This includes a banking sector that is still not functioning effec‐ tively, particularly for SMEs, a target area for many vehicle leasing companies. New cars attract VAT at a rate of 23% and new vehicles must also pay a vehicle registrations tax (VAT). This is banded by CO2 emissions, and the tax increases with the emissions level. The rate of tax, based on the vehicle’s open market selling price (OMSP), starts at a rate of 14% OMSP for cars with CO2 emissions up to 80g/km and rises to 36% OMSP for cars with CO2 emissions over 226g/km. It is not easy to find data on the Irish car leasing sector. The pan‐European organisation Leaseurope does not carry data. When we last looked at Ireland, business cars accounted for around 20% of new car sales. With the increase in new car sales in Ireland and the strength of the economy this figure may have increased slightly. The Bank of Ireland points to a weak used car sector, the result of the prolonged financial problems after the 2008 crisis. With limited choice, there is a ready market for ex‐ fleet cars, which should help to ensure good residual values for the next two years, reckons the Bank.
IAM REPORT Ireland
Driving in Ireland Advice for people driving for business from IAM RoadSmart.
I
f you drive in the Republic of Ireland, there are many similarities to driving in the UK, not least that in both countries, cars are driven on the left side of the road and are usually right‐hand‐drive. Be aware that in common with many parts of Europe road laws are strictly enforced in Ireland with very little leeway, although a police officer is not often seen in rural areas. Drink driving laws are similar to the UK, only allowing 0.8 milligrams of alcohol per millilitre of blood. Fines and a points system for Irish drivers have made a great deal of difference to driver behaviour. Be warned that speed limits are implemented rigorously and speed cameras are even more frequent than the UK. Ireland has changed to the metric system for road signs, so distance and speed limit signs are shown in kilometres and kilometres per hour. There was a transition period when both old and new signs were still shown giving a mix of imperial and metric measurement, but the old signs have now been removed. Ireland has also made steps to improve the road signage and it is easier to navigate by roads signs than ever before. You should always carry your driving licence, vehicle registration document and certificate of motor insurance. If your licence does not incorporate a photograph, ensure you carry your passport to validate it. If the vehicle is not registered in your name, carry a letter from the registered owner giving you permission to drive. Be aware that on the spot fines are issued for parking
offences and you should ensure an official receipt is issued by the officer collecting the fine. European registered vehicles displaying Euro plates (circle of 12 stars above the national identifier on blue background) no longer need a national identity sticker when driving in European Union countries. You should not use your horn between 11.30pm and 7am. Dipped headlights must be used in poor daytime visibility and motorcycles must use dipped headlights during the day at all times. As in most countries, it is illegal to drive and use a hand‐ held mobile phone in Ireland. Parking regulations are strictly enforced, particularly in Dublin city with tow trucks and vehicle disabling programs in operation. Many motorways in Ireland are toll roads. The tolls vary in cost so it is advisable to visit the Transport Infrastructure Ireland website at www.tii.ie. That said, motorways in the Irish Republic are still relatively few, linking the strategic cities such as Dublin, Cork and Galway and the tolls are generally quite low. The M50 carries a toll on a strategic section near Dublin airport and the best way for visitors to pay is online. Drivers collecting a hire car from the airport are most likely to be liable for the toll, unless heading north. Number plate recognition is used to identify non‐payment but drivers are given up to 8pm the following day to pay, see www.eflow.ie/i-want-to/pay-a-toll for payment options, which can be made via a smartphone.
internationalfleetworld.com / 27
INTERVIEW François Goupil de Bouillé INFINITI
To the alliance and beyond Infiniti is setting out to be the third Renault-Nissan Alliance brand, volume and premium is the plan as John Kendall finds out.
I
nfiniti, originally the luxury division of Nissan was launched in 1989 in North America. It was 2008 before the company thought the time was right for a European launch but without diesel engines, appeal was limited until those options became available. We have had to wait until this year for models that can make an impact in the mainstream European sectors – the C‐segment hatchback and crossover/SUV – as Infiniti brings both the Q30 and QX30 to market. The car is based on the Mercedes‐Benz A‐ Class platform with a range of Renault‐Nissan Alliance and Daimler powertrain options.
Customer promise François Goupil de Bouillé, Vice President of Europe, Middle East and South Africa is responsible for fleet business in the region. “One thing we are proud of is that we presented the prototype and now we have presented the final car and it is very close to the prototype,” he says, “This is also a promise that we want to make to the customer that when we show something, we want it to become reality. “With those products, we have volume products; the Q30 and QX30 that are targeting what we call the C‐premium, the
mid‐size premium market, which is the biggest in Europe and what is fantastic about this market is that it is growing. The premium market is growing but this mid‐size premium market is growing faster than the market. We are coming to market at the right moment and we have tried to come with something different, we don’t want to copy anyone. “Infiniti means different design, it’s a reference of a sort to our Japanese origin. We can go to the customer and tell them that we have something different and new.” At the Geneva Show this year Infiniti also launched the Q60 Sport Coupe and revised Q50 saloon. “With the Q60, this is different. It is not a volume car, it’s a ‘halo’ car,” says de Bouillé, “When you are premium, you need to have this kind of product.” According to de Bouillé, Infiniti wants to position itself as a premium brand but with volume sales, “So we will also have to become a volume fleet premium manufacturer. We have already made quite a lot of progress. We have been successful with the Q50. For instance if you go to Paris you will see quite a lot of Infinitis. We are also starting to make some progress in the UK, which is the big fleet market. The Q30 and QX30 will definitely be a much more credible entry for fleet business.”
Q30
28 / internationalflfeetworld.com
QX30
“targeting the growing mid-size premium market”
Fleet strategy
Alliance premium brand
Fleet business is likely to be important for the two C‐segment models, particularly with the strength of the SUV and crossover markets worldwide. Infiniti has a strategy for its fleet business and de Bouillé says that results so far are better than expected, “Our strategy is to go to the big fleets and say that we do not have the brand awareness or image of some of our competi‐ tors, but we would like to see if our products would interest your user‐choosers. “Then what we try to do is have say three cars and be modest and see how the drivers react. And guess what? The reaction in fleets is the same as it is among private buyers. A minority of fleet customers are user‐choosers, but it’s quite a big minority. They are not conservative though – conserva‐ tives are those who will remain with their current brand and we cannot chase everyone. “They are looking for something different, but they need something credible. We can match the quality requirement. We are investing in the fact that we are different. We have some fleet customers where we came with one, two or three cars as I said and now they have 50 cars or 60 cars running, because we can attract customers who are looking for something different.” Building a brand identity, particularly for a new manufac‐ turer wanting to establish a premium image is difficult in a crowded marketplace. Nissan has a strong brand image, particularly with fleet managers, where products like Qashqai have such a good reputation. How can Infiniti build on that reputation and also establish its own brand identity?
“We work very closely with our Alliance colleagues, both Nissan and Renault,” says de Bouillé, “It’s a win‐win situation for a very simple reason. Fleet customers have several needs and may also need some premium cars. By having a premium brand, the Alliance can answer all customer needs. If you cannot offer a premium brand, another manufacturer will come and make the offer instead. That’s life. We always say that Infiniti is the premium brand of the Alliance and we are working very closely with Renault and Nissan and have had some success, for instance with big fleets already.” That suggests that there is already a Renault‐Nissan‐ Infiniti Group fleet operation. “The first thing we are look‐ ing at is to locate them together,” says de Bouillé, “We are calling it the co‐operation system, which means we co‐oper‐ ate in everything that we do. If we think about international key accounts, national key accounts, leasing companies, rental companies, it’s an asset for us to approach the busi‐ ness as the other brand of the Alliance. “Even with B2B business where it is smaller volumes, we could have for instance, one of our colleagues in Renault, or in Nissan who has a B2B customer and he is looking for one car, possibly a Q70 or something similar. As we are locating the fleet teams in the same place, then the communication can be very fast. We are really trying to establish an Alliance team mindset and with several key accounts to get a systematic Alliance approach to the customer, but there is still a lot to do.” Infiniti is working with SCI leasing as a partner on ‘white label’ products. “Through them we have contact with other companies for specific products such as insurance,” contin‐ ues de Bouillé, “We are making good progress on that, although we are not at the same level in all countries. In France SCI is very strong but we also have a very efficient co‐ operation with AXA. There are still a lot of opportunities to tackle and we will make it.”
François Goupil de Bouillé, Infiniti’s Vice President of Europe, Middle East and South Africa
“A minority of fleet customers are user-choosers, but it’s quite a big minority.” Q50
“has proved a sales success”
Q60 Sport Coupe
“not a volume car, a ‘halo’ car”
internationalfleetworld.com / 29
PROFILE Volvo
Investing in the future
Volvo Cars closed 2015 with its best sales result on record, boosted by the introduction of the first models from its ambitious product renewal strategy. With a new manufacturing architecture in place and plans to electrify the entire range, Volvo hopes to continue this positive trend for many years to come‌.
30 / internationalfleetworld.com
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Manufacturer Volvo Total sales 2015 503,127 Headquarters Gothenburg, Sweden Global market share 0.7% No. of models 7
from the top
XC90 provides sales boost...
V
olvo Cars sold more than half a million vehicles for the irst time in the brand’s 89 year history in 2015, closing the year with 503,127 cars sold. Volvo reported strong sales from all three of its core global regions, with sales in the key market of Europe up 11% to 269,249; representing 54% of the total global volume. The home market of Sweden is historically loyal to the Volvo brand, and Swedish buyers alone purchased 71,200 Volvo’s in 2015, representing 14% of the worldwide sales volume and 21% of the Swedish passenger car market. Volvo’s sales success looks set to continue into 2016, with retail sales in Europe up 7% to a total of 16,951 cars in January. Several key markets including Sweden, Belgium and Germany have reported steadily increasing sales for the irst half of the year, with new XC90 accounting for much of the growth. The success of the model has necessitated a third shift be added to the Torslandaverken plant in Sweden to meet regional demand. Volvo’s revival in the USA continued to gain momentum in 2015, with sales up 24%, also helped by the launch of XC90. For January 2016, Volvo US reported 4,243 retail sales, up 12% on the same month last year. Sales were again boosted by the continued success of XC90, which was also the best‐selling Volvo model in the US for the month. Construction is now underway on Volvo’s new $500m (€442m) manufacturing facility in South Carolina, which is due to be operational in 2018. The new plant will mean that Volvo has an industrial presence in each of its three core regions (Europe, China and the US) for reduced delivery times. China was Volvo’s largest individual market in 2014, and the brand had predicted a continued sales uplift in the region. Due to the challenging sales envi‐ ronment, however, sales in China remained lat for much of 2015, before experi‐ encing an 11% uplift in Q4. This accounted for a strong end to 2015, during which time Volvo reported a more than 15% increase in sales for November and Decem‐ ber. As well as the introduction of XC90, the incremental sales success can also be attributed to locally produced XC60 and S60L; a long wheelbase variant of S60 aimed at the chauffeur market. Volvo’s best selling model overall in 2015 was XC60, with 159,617 sold. According to automotive research irm JATO, the model was also the best‐selling midsize SUV overall in Europe in 2015. Launched in 2008, XC60 has recorded steadily improving sales every year since, with over 750,000 units sold to date. With the new 2017 XC60 due to launch this year, interest in the model is only set to increase. New XC90, meanwhile, contributed 40,621 total sales in 2015 – a strong performance given its short time on sale. According to the brand’s end of year results, the most popular saloon was the lagship V40 (83,357), followed by V60 (51,333) and refreshed S60 (35,962).
VOLVO Global sales, by market – 2015 China USA Sweden Western Europe Other markets Total
2014 81,574 56,371 61,357 182,157 84,407 465,866
2015 81,588 70,047 71,200 198,049 82,243 503,127
% change +0% +24% +16% +9% -3% +8%
Anders Gustafsson, senior vice president EMEA region, Volvo Cars, on the success of XC90 and plans for the new CMA platform. After XC90's first year on sale, how has it performed in fleet? New XC90 has had a very good irst year, also in terms of leet sales. But to be honest, we’ve been pleasantly surprised by the amount of customers that have opted for the higher Inscription trim level. We’ve also seen that our T8 Twin Engine plug‐in hybrid variant is very popu‐ lar: almost 20% of all XC90s sold are plug‐in hybrids, which is encouraging. Do you see a continued role for diesel plug-in hybrids after V60? That is unlikely. The bene it with petrol‐based plug‐in hybrids is that they can be offered globally. On our new CMA platform for the C‐ segment, we will therefore focus on petrol plug‐in hybrids, as we have done with the SPA‐based plug‐in hybrid variants of new XC90, S90 and V90. We have ambitious plans to electrify our entire leet. Do you see your future sales mix being weighted towards smaller cars in Europe? We do plan to expand our offering in the C‐segment with the new CMA platform, so that may very well be re lected in our sales mix. But our strength is based on having a compet‐ itive offering in all major segments. Is Volvo’s Vision 2020 programme still a priority for the brand? Absolutely, we want to remain the industry leader in the area of safety. With the help of more advanced active and passive safety systems, as well as autonomous drive technol‐ ogy, we are getting closer and closer to our vision that no one will be killed or seriously injured in a new Volvo by 2020.
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PROFILE Volvo
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Where are they made?
1 2 4 6
3
Manufacturing plant locations
FIN fleet in numbers
1 million The number of electrified cars Volvo aims to sell by 2025.
43km Range of XC90 with T8 Twin Engine AWD on electric power alone.
100
The number of Volvo cars currently involved in autonomous driving trials in China.
32 / internationalfleetworld.com
1
Volvo Cars Torslandaverken, Sweden – Volvo S60, Volvo S90, Volvo V60, Volvo V90, Volvo XC90.
2
Volvo Cars Ghent, Belgium – Volvo V40, Volvo S60, Volvo XC60.
3
Xhejiang Geely-Volvo, Chengdu, China – Volvo S60L, Volvo S90L, Volvo XC60.
4
Zhejiang Geely-Volvo, Daqing, China – Volvo XC Classic (XC90).
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Swedish Motor Assemblies, Kuala Lumpur, Malaysia – LHD Volvo S60, Volvo V40, Volvo V60, Volvo XC60, Volvo XC90.
6
Berkeley County factory, South Carolina, United States – Estimated completion: 2018.
5
Introducion of Compact Modular Architecture
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olvo has an ambitious schedule of new launches and refreshes planned up until 2017, with plans to grow total sales volume to 800,000 cars. New models will be built using the existing Scalable Product Archi‐ tecture (SPA) platform for the 90 models and the midsize 60 series, and a new Compact Modu‐ lar Architecture (CMA) for the compact 40 series. The CMA platform is designed to support the brand’s latest drivetrains, including a new line of three‐cylinder engines and the four‐cylinder petrol and diesel units introduced in its larger models. Volvo has also confirmed a T5 Twin Engine plug‐in hybrid, using a three‐cylinder petrol engine, and a fully electric drivetrain. Shared technology between SPA and CMA will include the infotainment, climate and data network and safety systems, streamlining the manufacturing process. New XC90 was the first model to be manufactured on the SPA platform, soon to be joined by the S90 sedan and V90 wagon, which replace the S80 and V70 (and XC70) respectively. The new model brings technologies including an upgraded version of the Pilot Assist semi‐autonomous drive feature seen on XC90, which can help keep the car properly aligned within lane markings up to motorway speeds of around 130kph. Engines include a T8 Twin Engine plug‐in hybrid powertrain. Volvo recently previewed its XC40 crossover and S40 saloon, also built on the CMA platform. In line with the 60 and 90 series, XC40 will put Volvo up against the Mercedes‐Benz GLA, Audi Q3 and BMW X1, and is the more important addi‐ tion for the UK and Western European markets. S40 sedan is a smaller segment in these markets, but the hatchback version of this car – likely to feature upright rear light units similar to XC40 concept – will replace the outgoing V40, which remains a core part of its global model range. The brand is currently developing its irst all‐electric car, with a predicted arrival date in 2019, and has said it will offer at least two hybrid versions of every model in the range. Volvo expects 10% of the cars it sells globally to be electri ied by 2020. “It’s is a deliberately ambitious target,” commented Håkan Samuelsson, president and chief executive of Volvo Cars. “It is going to be a chal‐ lenge, but Volvo wants to be at the forefront of this shift to electri ication.”
VOLVO fleet model range
V40
S60
Variants: 5dr hatchback Markets: Europe, Asia, Africa, South America, Oceania. Fuel: 3.2-6.4l/100km CO2: 82-149g/km
Variants: 4dr sedan Markets: Global. Fuel: 2.1-7.8l/100km CO2: 49-179g/km
V60
XC60
Variants: Wagon Markets: Global. Fuel: 1.8-8.1l/100km CO2: 49-186g/km
Variants: : SUV Markets: Global. Fuel: 4.5-7.7l/100km CO2: 117-179g/km
S90
V90
Variants: : 4dr sedan Markets: Global. Fuel: 1.9-7.2l/100km CO2: 44-165g/km
Variants: Wagon Markets: Europe, Asia, Africa, North America, Oceania. Fuel: 2.1-7.4l/100km CO2: 47-169g/km
XC90 Variants: SUV Markets: Global. Fuel: 2.1-11.5l/100km CO2: 49-186g/km
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SEAT Ateca Can SEAT’s long-overdue crossover take on the best in its class? Alex Grant finds out. SECTOR Crossover PRICE €19,990–€35,580 FUEL 4.2–6.1l/100km CO2 112–131g/km
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hanges are afoot at SEAT. Having spent its first three decades under Volkswagen Group rule defining itself with hot hatches, wild colours and low pricing, newly appointed president Luca De Meo is out to give the brand its own identity, and to find mainstream segments where it can compete credibly. That’s a focus it’s needed for a long time, and the Ateca crossover is an entirely logical and long overdue addition. This Leon‐sized SUV puts SEAT into a segment with lower discounts, higher margins and more user‐chooser volume than its traditional target areas. It’s a fashionable family‐ mover to replace the Altea, an upmarket motorway cruiser to retain upsizing Leon customers in ways the Exeo never managed, and a huge conquest opportunity too. There’s certainly a sense of that move upmarket. Though it looks like an upwardly‐stretched Leon, the Ateca feels noticeably more premium. Cabin materials are consis‐ tently higher quality, and it’s full of neat design details, projecting its own silhouette from the puddle lights, bathing the interior in an ambient glow at night and turn‐ and the load cover is a solid shelf instead of a retractable ing the daytime running lights orange while indicating. It’s blind. Without the optional under‐floor compartment, the best‐finished SEAT to date. there’s nowhere to store it when it’s not being used. The driving experience will be familiar to On‐board technology is more impressive, anyone who’s driven a Leon, or any of the particularly SEAT’s first overhead camera FLEET FACT other Group products which use this platform. system with a myriad of viewpoints including It’s sure‐footed and agile, though obviously one for hitching trailers, which is far more useful slightly more top‐heavy than its sibling, the than the usual ultrasonic sensors – but it gets SEAT’s controls are reassuringly weighted – particu‐ those too. All versions have an intuitive touch‐ Juke-rivalling larly in Sport mode – and it rides much like screen infotainment system, mid‐spec models smaller SUV will any other road‐biased SUV. get Apple CarPlay and Android Auto, but navi‐ launch in 2017. Adaptability is a key selling point, and the gation is only standard on the X‐CELLENCE trim Ateca is good, if not outstanding. There’s level. Autonomous emergency braking and plenty of room for front and rear occupants and the boot attention assist are included across the range. is generous for a car which is at the smaller end of its class. The 115hp 1.6 TDI Ecomotive is the likely fleet favourite. However, the rear seats don’t slide to extend the cargo area It wasn’t available on the launch, but should be as quiet and efficient as it is in other Volkswagen Group products, if a little behind Renault and Nissan on CO2. There are also two 2.0‐litre TDI engines, with 150hp or 190hp, the latter mandating DSG and four‐wheel drive which are optional on the former. Though it’s a capable off‐roader, SEAT expects most will be front‐wheel drive. Petrol options are just as noteworthy, comprising the 115hp 1.0‐litre and 150hp 1.4‐litre EcoTSI units. On‐paper fuel economy is close enough to the diesel engines to make both of them worthy of being considered for fleet use, and CO2 emissions are low too. The 1.4 is a great all‐rounder which can shut off two cylinders to save fuel. Production hasn’t started on the smaller engine yet, but the Golf and A3 with the same unit are best suited to urban use. So the Ateca shapes up to be a competitive, if not class‐ leading, crossover as well as a great fit within the SEAT portfolio. It’s all the best qualities of the popular Leon, scaled up for one of the most desirable and fast‐growing sectors of the market, and deserves to do very well.
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what we think De Meo sees crossovers as sports cars for families, and the Ateca is well positioned to take on the driver-focused part of this segment. It looks, feels and drives like a quality product, and offers a wide choice of technologies and engines for fleets. That should bode well for success in the corporate sector.
highlights Two fleet-relevant petrol engines, three competitive diesels Spacious, high-quality cabin with large luggage area Touchscreen on all models, Apple and Android connectivity on most. internationalfleetworld.com / 35
Smart Fortwo Cabrio Smart’s tax-conscious drop-top is better than ever, says John Kendall. SECTOR City car PRICE €14,305–€18,590 FUEL 4.3l/100km CO2 99g/km
I
it all the way down. If you choose to do that, you can have a long‐standing thought about open top cars: remove the roof bars too and they can be stored in the speed is relatively unimportant, although many of folding tailgate, so if it rains, you can take cover fairly them are designed with performance pretensions. quickly. The roof can also be operated from a button on The smell of freshly mown grass or flowers is a big part of the key fob. the appeal, along with the wind in your hair, for those of Open top Fortwos weigh around 40‐55kg more than the you with enough hair for the experience. coupe while the inferior aerodynamics increase the EU So if the car is capable of little more than 120km/h, but combined fuel consumption from from 4.1l/100km to has the required two seats and the roof is easy enough to 4.3l/100km. That still gives the car combined CO 2 raise or lower from the driver’s seat, it is likely to fulfil emissions of 99g/km making it a tax‐efficient option many people’s open top motoring needs. If it sounds like for countries with CO2‐related tax regimes. Our UK spec‐ I am describing the latest Smart Fortwo, you are right. ification Prime model came well The latest version appeared last year, equipped, but specification may differ sharing its major structure and compo‐ in other markets. nents with the Renault Twingo, Although it was progressively although the resemblance is stronger improved over the years, earlier between the forfour and the Renault. Fortwos with the automated clutch There is a variety of engines available transmission are remembered for their including the 71hp 999cm3 three‐ ponderous gear‐change and slow take‐ cylinder petrol engine tested here. It is up from rest, which could be frustrat‐ available with either a five‐speed ing when trying to join busy traffic. manual or six‐speed ‘twinamic’ dual The twin‐clutch transmission is a clutch transmission. Both come with major improvement, giving faster and automatic Start/Stop. A 90hp smoother changes. The ride quality is turbocharged 898cm3 version is also also an improvement ensuring that the available. Again, automatic Start/Stop Smart is now better all‐round. is standard and there is the same The Smart has obvious I soon abandoned the ‘roof back, rear choice of transmission. appeal for low mileage screen up’ position because the rear The roof has three layers and makes users who want a low screen seemed to catch the air flowing a good job of reducing external noise over the top of the car, adding a lot of when fully up. Electric power rolls it up cost, low tax, open top wind noise. Folding it right back with or down and Smart claims it can be car and it’s a big improvethe rear screen folded away seemed to lowered in 12 seconds at any speed. A ment over earlier overcome the problem, so perhaps the glass rear screen is included and you models. Fun in the sun. mid position is best suited to stop/start can either roll the roof back, leaving traffic speeds. the rear screen in place or you can fold
what we think
36 / internationalfleetworld.com
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NEWS from the global fleet community
INSIGHT from experts into the fleet industry
ADVICE best practice for running your fleet
Ford Transit EcoBlue The all-new 2.0-litre EcoBlue engine transforms Ford’s Transit and Transit Custom, says Dan Gilkes.
*C – Transit Custom, T – Transit
SECTOR Mid-heavy van PRICE €24,900-£36,200 (C*), €28,790-£41,900 (T*) CO2 157-179g/km (C*), 174-212g/km (T*)
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six‐speed automatic later this year on front drive models. ord has downsized the engines in its Transit and Ford has added Side Wind Stabilisation and Pre‐Collision Transit Custom van models, replacing the previous Assist with Pedestrian Detection to the assistance systems 2.2‐litre Duratorq with the new 2.0‐litre EcoBlue on offer. Inside the cab, SYNC 2 voice‐activated connectiv‐ range. EcoBlue will eventually power a wide range of vans ity is available on large Transit models, with a 150mm and cars, with power outputs of 100‐240hp. touchscreen for navigation. Transit Custom sticks with the Initially both Transit and Transit Custom models will be original SYNC system and a 100mm screen. offered with three ratings, of 105hp, 130hp and 170hp. The ride has been improved with new rear dampers, for The 105hp engine delivers 360Nm of torque, represent‐ improved roll and vertical control. Ford will also offer a ing 5hp and 50Nm gains over the previous 100hp model. rear air suspension option on the Transit Custom Kombi The 130hp engine, expected to be the most popular, comes people‐carrier for the first time. The hydraulic power steer‐ with 385Nm, up 5hp and 35Nm versus the previous 125hp ing systems on both vans have been engine. The range‐topping 170hp motor upgraded to deliver lower driver effort features 405Nm, 15hp and 20Nm more. and improved control. Despite the power and torque gains, On the road EcoBlue is an impressive Ford claims a 13% drop in fuel consump‐ engine, providing more than enough tion, with CO2 emissions starting at just power to haul the largest Transit along, 157g/km. Service intervals have been even in 105hp form. Higher‐powered stretched to two years/60,000km. models deliver more of the same, with low The engine has internal exhaust gas rpm torque offering easy acceleration and recirculation (EGR) with a close‐coupled hill climbing ability in half‐laden vans. oxidation catalyst and diesel particulate Once up to speed engine noise almost filter. Selective catalytic reduction (SCR) disappears. Both vans demonstrate a completes the Euro 6 emissions pack‐ new level of refinement that matches age, cutting NOx by 55% over the previ‐ Ford’s claims of car‐like noise, vibration ous model. The engines also contribute and harshness. Notably the door seals to a 1.2dB reduction in in‐cab noise. The EcoBlue Transit and seem to have been tweaked ‐ there was Both vans have a 21‐litre AdBlue tank, Transit Custom mark a no wind noise around the top of the which should last for around 9,600km. To major step forward for doors even on faster stretches of road. offset the additional weight of the AdBlue With the promise of fuel savings and and dosing system, Ford has increased Ford. Lower operating longer service intervals, the EcoBlue gross weights on all models below 3.5‐ costs should go some engine should prove popular with tonnes. The system will have an impact on way to offset slightly fleet managers, while drivers will 3.5‐tonner payloads though. higher pricing. welcome the improved refinement and Six‐speed manual transmissions remain additional power. standard. However Ford will finally offer a
what we think
38 / internationalfleetworld.com
Audi A4 Avant More spacious, quieter and aerodynamic, the new A4 Avant is better all round, reports John Kendall. SECTOR Compact Executive PRICE €32,950–€53,700 FUEL 3.8–6.4l/100km CO2 99–147g/km
A
The Volkswagen Group 2.0‐litre TDI 150hp engine is nother Audi A4 should be something to look rapidly becoming a benchmark four‐cylinder diesel. Volk‐ forward to and the latest incarnation of Audi’s swagen has tarnished the image of diesel power, which long running model does not disappoint. is so hard to explain when it produces an engine that is There is a predictably wide range of petrol and diesel capable of impressively low fuel consumption, good engines with four or six cylinders and power outputs performance and low noise levels, like this variant of the from 150hp to 272hp. Audi claims an all‐new platform 2.0 TDI engine, arguably one of the best yet and in Euro for the car with revised six‐speed manual, seven‐speed 6 form, one of the cleanest. The available blend of S‐tronic dual clutch and eight‐speed tiptronic torque performance and economy is an enviable one. The converter automatic options. Quattro four‐wheel drive manual gearbox is a slick shifting unit, but it is hard to is predictably an option, standard with 2.0 TFSI 252hp beat the S‐tronic dual clutch gearbox. That is probably a and 3.0 TDI 272hp engines. Entry level power comes cost too far for some fleets, although from the 1.4‐litre 150hp TFSI turbo good for residual values and it makes petrol engine, while the 2.0‐litre TDI Stop/Start traffic less tiring. The 150hp diesel driven here, with six‐ impressive torque from the engine speed manual transmission is likely to manages the ‘Eco’ Ultra gearing on our be a popular choice for fleet drivers, test car well where fourth, fifth and featuring CO2 emissions from 99g/km sixth all overdrive ratios. in the ‘Ultra’ low emission model, The quality of the A4 has improved rising to 121g/km, depending on wheel so much over the years and the size and transmission choice. build quality of the latest is the best Audi claims class‐leading luggage yet. The days when A4 rear seat space with the rear seats up – 505 passengers struggled for leg room are litres, extending to 1,510 litres with also over, there is room for adults to sit the rear seats down. Options include in comfort. the Audi virtual cockpit, first seen on Our test car was fitted with the the TT, LED matrix headlights and a Undoubtedly impressive, virtual cockpit, giving drivers a great selection of new driver assistance with improved space, deal of choice over the information systems. Standard kit on UK specifica‐ quality and economy, displayed in the ‘instrument panel’. It is tion models includes 17‐inch alloys, easy to change what information is Xenon or LED headlights, Audi smart‐ but competition is fierce displayed, but it is a cost that many phone interface, Audi drive select, and even the VW Passat fleet operators may feel is not justified. three‐zone climate control and 7‐inch is creeping into traditional Audi’s standard instruments are colour MMI monitor. Check your local Audi territory. impressive too, with the clear markings specification as it is likely to differ that have become an Audi feature. from that in the UK.
what we think
internationalfleetworld.com / 39
fleet in figures
Autonomous vehicles set to grow Autonomous vehicle sales could reach 21 million in 2035, meanwhile global sales growth remains strong, reports John Kendall. Autonomous driving IHS estimates that between now and 2035 almost 76m vehicles with some degree of autonomy will be sold globally.
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he onward march of car sales for 2016 seems unlikely to slow in the immediate future. At the begin‐ ning of June, the European Automobile Manufacturers Association (ACEA) announced that it was revising its 2016 growth forecast for Europe. In January the organisation reckoned on growth of 2% this year, but now ACEA reckons that 5% more than 2015 is more likely, which would take the 2016 total to over 14 million, but still short of the 15.5m reached before the 2008 financial crisis.
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Meanwhile in North America record high sales are expected for 2016. According to Scotiabank’s latest Global Auto Report, Mexico has posted double‐ digit growth, although sales in Canada have slipped back. Scotiabank says this is because the recent earthquake in Japan led to brief plant closures in North America. Annualised sales figures for the United States for May were running at 17.3m units reckons Scotiabank, which is slightly ahead of 2015, but below the bank’s 2016 forecast of
17.7m. Light trucks accounted for 10.2m of the annualised figure. Scotiabank says that weak fleet activity was offset by the growing popularity of crossover models. Sales of small crossovers are running at 52% above May 2015 according to the bank, taking a record share of the US light vehicle market. ACEA’s revised forecast for Europe is in line with the 5.2% growth for the region during Quarter 1, according to the organisation’s recently published Economic and Market Report on the EU
Automotive Industry for Q1 2016. Look‐ ing at the EU in particular, 3.8m cars were registered in Q1, up 8.2% on Q1 2015. The ACEA report shows that Japan was the largest single source of passenger car imports to the EU with 142,077 imported vehicles in Q1 2016, a 16.6% increase over 2015. Turkey was the second largest source of imports with 134,111 imported cars, down ‐2.9% on Q1 2015. South Korea was the third largest source of imported cars with 102,061 imported, up 18.3% on Q1 2015. The US and Morocco were the two other largest sources of imported passenger cars in Q1 with 55,858 from the US, up 5.0% on Q1 2015, while imports from Morocco rose 11.0% to 42,049. By contrast, the US was the recipient of the largest number of EU‐built passenger cars in export trade with 261,029 being exported, down 11.0% on Q1 2015. The flow of vehicles to Turkey almost matched the number imported to the EU with 130,733 exports, up 6.7% on Q1 2015. China was the third largest destination for EU exports with 111,658 cars in Q1, a reduction of ‐25.5% compared with Q1 2015.
Autonomous vehicles set for growth IHS Automotive is forecasting that in 2035, sales of autonomous vehicles will reach around 21 million worldwide. The estimate has been substantially increased in the light of recent develop‐
ments and research from motor manu‐ facturers. IHS estimates that between now and 2035 almost 76m vehicles with some degree of autonomy will be sold globally. The report does not define what some sort of autonomy means. Considering that adaptive cruise control is available on a number of cars now as well as traffic jam assistance, which will keep a car in lane as well as accelerate it and apply the brakes to a standstill in stop/start traffic, it seems reasonable to assume that these vehicles would be classified as semi‐autonomous. “Global sales of autonomous vehicles will reach nearly 600,000 units in 2025,” said Egil Juliussen, Ph.D, director of research at IHS Automotive. “Our new forecast reflects a 43% compound annual growth rate between 2025 and 2035 – a decade of substantial growth, as driverless and self‐driving cars alike are more widely adopted in all key global automotive markets,” he said. IHS expects the US to take the lead in adopting autonomous vehicles. The company predicts that US sales will begin with several thousand sold in 2020, growing to almost 4.5m sold in 2035. “The U.S. market is expected to see the earliest deployment of autonomous vehicles as it works through challenges posed by regulation, liability and consumer acceptance,” says IHS. China is expected to be the largest market. “IHS forecasts that more than
5.7m vehicles sold in China in 2035 will be equipped with some level of auton‐ omy, the single largest market for the technology, according to analysts, despite a later start.” The major markets in Western Europe are expected to be the third largest market for autonomous vehicles with IHS forecasting sales exceeding 3m units in 2035, with a further 1.2m vehi‐ cles in Eastern Europe then. The Middle East and Africa will not be far behind with IHS suggesting that over 1m vehi‐ cles sold in 2035 in the region will have some level of autonomy. Looking to Japan and South Korea combined; IHS reckons that there will be almost 1.2m vehicles enabled with some form of autonomous technology in 2035. The question remains, what level of autonomy will have been reached by that time? With platooning experiments having been carried out in April in Europe with trucks, and other experi‐ mental autonomous driving exercises in Europe and the US, we have the techno‐ logical capabilities for autonomous highway driving already. By 2035, highway autonomous driving is likely to be relatively commonplace, possibly with a combination of vehicle platoon‐ ing for trucks and lane departure/adap‐ tive cruise control systems on cars, it may be too soon for the greater complexities of autonomous driving in city traffic by then.
BMW X1 Sales of the new BMW X1 helped BMW to grow True Fleet registrations by 52.5% in France.
internationalfleetworld.com / 41
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fleet in figures
Autonomous driving With autonomous experiments on cars and trucks having been carried out in Europe and the US , we have the technological capabilities for autonomous highway driving already.
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European True Fleet sector
Germany
DataForce’s analysis of the European True Fleet sector, focussing on the top five markets of France, Germany, Italy, Spain and the UK shows another month of impressive growth. Overall for April, the total average growth across all five markets was 12.1% compared with April 2015. Italy posted the highest percentage increase with growth of 22.2%. For the January to April period (YtD), average growth was 9.3% with Spain maintaining the high‐ est percentage growth rate at 15.1%. Dataforce says that the YtD volume for the five countries in total is the highest since 2008.
A growth rate of 11.8% in April was the second month of double‐digit growth in the German True Fleet sector, says Dataforce. Again, this far exceeded the 6.1% growth in the retail sector. The top four brands are all German: Volk‐ swagen, Audi, BMW and Mercedes‐Benz followed by Ford and Skoda. For Skoda, it’s April True Fleet volumes were 30% higher than in April 2015, with notably strong performances from the Octavia with 25.5% growth and the Superb, which posted growth of 109.7% compared with April 2015. This result meant the Superb achieved its highest ever True Fleet sales in Germany.
France
Italy
The True Fleet sector in France has grown at an average rate of 13.3% YtD, which according to Dataforce is more than twice as high as the growth rate in the retail sector. The market is led by Renault, followed by Peugeot and Citroën, with DS in 16th place. The Volkswagen Golf as the ninth best seller for the month was the only foreign model in the top 10 in France. Sales of the new X1 and 2 Series Active Tourer/Grand Tourer helped BMW to grow True Fleet registrations by 52.5%. Kia, taking 13th place was helped by sales of the new Sportage. The Korean brand reached its highest share of the French True Fleet market to date.
As already noted, Italy’s True Fleet sales in April were running at 22.2% higher than in April 2015, with YtD registra‐ tions 13.5% up on 2015. The April True Fleet registrations volume was the high‐ est recorded to date for Italy in April. BMW in fifth place saw April True Fleet registrations rise by 43.4%, while Nissan in seventh place saw a 57.8% increase. The company’s 5.1% market share was its best yet in True Fleet, helped by sales of the Qashqai and X‐TRAIL. Toyota in 11th place recorded True Fleet growth of 107%.
42 / internationalfleetworld.com
Spain Spain recorded an April True Fleet
increase of 15.8% compared with April 2015 and Dataforce says that 15 out of the top 20 brands increased their fleet volume compared with April 2015. Volk‐ swagen was the market leader with a 9.2% market share, followed by Renault with 9.0%. While SUV growth is dominat‐ ing registrations in Spain, as in many other countries, Spain’s other success story has been the small car segment, which recorded a 14.9% rise in April. The best selling model was the Renault Clio.
UK Growth rates may be smaller in the UK, but the market volumes are among the largest in the European True Fleet sector. A change of registration plate in March saw demand depressed in February with an increase of 4.8% growing to +6.5% in March, the month of the registration plate change. Growth continued into April with an 8.4% rise compared with April 2015, representing over 70,000 True Fleet registrations. Retail registrations dropped by ‐2.5% during April. Vaux‐ hall/Opel led the sector, followed by Ford, Volkswagen and Nissan. Further down the rankings, Dataforce recorded growth of 23.7% for fifth placed Mercedes‐Benz and 28.9% for seventh placed BMW. Land Rover in 15th place saw an increase of 80.4% compared with April 2015, giving the company its highest True Fleet share yet.
DIARY DATE
THE GREATEST SHOW IN FLEET
SILVERSTONE CIRCUIT
11TH MAY 2017
Find out more at thefleetshow.co.uk
DECISION-MAKERS WANTED
With Autonomous Follow Assist. The Adaptive Cruise Control in the Opel Insignia* not only maintains the speed you set but also automatically keeps the selected distance to the vehicle in front. This innovation transforms your Cruise Control into an Autonomous Follow Assist. You decide where you are going, the Insignia does the rest.
The Insignia. The decision-maker’s choice. *Fuel consumption combined 10.6–3.8 l/100 km; CO2 emissions combined 244–99 g/km (according to R (EC) No. 715/2007). Picture shows optional equipment.