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FLEETW RLD Essential Business Information for International Fleet Decision Makers SE AT.COM
THE NEW SEAT LEON SC Technology to enjoy
SEAT FOR BUSINESS Average consumption: 3.8-6.0 l/100 km. Average CO2 mass emissions: 99-139 g/km.
ENJOYNEERING
BMW i
Sheer Driving Pleasure
BORN ELECTRIC. NATURALLY INTELLIGENT. What should a car offer that’s up to reinvent urban mobility? More than just zero-emission driving pleasure, we reckon. That’s why the BMW i3 Concept Coupe, the latest outlook on the upcoming megacity vehicle, includes intelligent ConnectedDrive features that will simplify your driving. Its navigation system not only provides you with the most efficient and eco-friendly route for maximum range, it also shows all available charging stations along the way. And you can manage every aspect of the charging process via your smartphone. All these innovations coming this year. More: bmw-i.com/i3coupe
BMW i. BORN ELECTRIC.
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JULY/AUGUST 2013
internationalfleetworld.com
INTERNATIONAL
FLEETW RLD Essential Business Information for International Fleet Decision Makers SE AT.COM
Technology to enjoy
ENJOYNEERING
Average consumption: 3.8-6.0 l/100 km. Average CO2 mass emissions: 99-139 g/km.
Publisher Ross Durkin ross@fleetworldgroup.co.uk Editor John Kendall john@fleetworldgroup.co.uk Deputy Editor Natalie Middleton natalie@fleetworldgroup.co.uk Motoring Editor Alex Grant alex@fleetworldgroup.co.uk Editorial Assistant Katie Beck katie@fleetworldgroup.co.uk Sales Director Anne Dopson anne@fleetworldgroup.co.uk Sales Executive Darren Brett darren@fleetworldgroup.co.uk Circulation Manager Tracy Howell tracy@fleetworldgroup.co.uk Head of Production Luke Wikner luke@fleetworldgroup.co.uk Designers Tina Ries tina@fleetworldgroup.co.uk Samantha Hargreaves sam@fleetworldgroup.co.uk
Published by Stag Publications Ltd, 18 Alban Park, Hatfield Road, St Albans, Herts, AL4 0JJ tel +44 (0)1727 739160 fax +44 (0)1727 739169 email ifw@fleetworldgroup.co.uk web fleetworld.co.uk
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THE NEW SEAT LEON SC
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CONTENTS
Reaching agreement on vehicle emissions is never an easy thing to achieve, particularly as toxic emissions limits have become tighter and now the focus is shifting to carbon dioxide emissions. There has been plenty of discussion about the effects of CO2 emissions on our environment and even for those who do not believe the weight of scientific evidence that suggests we need to act swiftly on the issue, there is a clear need to reduce our dependence on oil. Reducing fuel consumption, and with it carbon dioxide emissions, is a pretty good way to achieve that. But there is disagreement on how to proceed between the EU member states. Germany has apparently put forward proposals to bring more flexibility to the EU Commission’s proposal to set a goal of 95g/km of carbon dioxide emissions from cars from 2020. In June, Germany abandoned a proposal to allow ‘supercredits’ – which would have allowed accrued credits from before the new rules apply to be carried forward – trading low emissions cars such as electric vehicles against the highest polluting models. Germany could not get enough support for the proposal and is apparently trying a different tack. Critics say that Germany produces too many high polluting cars and wants to buy time. This time it would allow supercredits to be multiplied for each low emission vehicle produced. But Germany still needs to gain the support of other countries that, in some cases, will be able to meet the limits.
04 News Analysis 10 EV News Analysis 12 Coming soon... Renault Trucks’ refreshed range.
16 Strategy European residual value confidence.
18 Industry analysis The effect of facelifts on residual values.
20 ECO Marathon 2013 Europe’s new economy driving event.
22 FOCUS ON... THE NETHERLANDS.
33 2013/14 Fleet Calendar 34 Management ALD’s Stephane Renie on the importance of allowing for local differences.
36 Interview Rich Byczek of EV supplier, Intertek.
38 FLEET PROFILE Honda
45 Launch Report VW Beetle / Skoda Octavia Combi / BMW 3 Series GT / Scania Streamline.
50 Fleet In Figures Analysing the latest ACEA sales charts.
12 20 38 47
John Kendall Editor
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IFW July/August 2013
03
news analysis
Ford to axe Australian production by 2016 Ford has announced its intention to end local production in Australia by October 2016, ending what will be a 91-year history of manufacturing there. The company will continue with plans to launch updated versions of the Falcon, Falcon Ute and Territory in 2014. Altogether Ford expects to increase the number of new vehicles offered on the Australian market by 30% by 2016. Ford gives the reasons for closing its Australian plants as increasingly challenging market conditions, including market fragmentation and the high cost of manufacturing. The company says it has lost approximately AU$600 million (€473m) in the last five years on its operations there. ”All of us at Ford remain committed to our long history of serving Australian customers with the very best vehicles that deliver cutting edge technology at an affordable cost,” said Bob Graziano, president and CEO of Ford Australia. ”Unfortunately, due to challenging market conditions we are unable to do that longer-term while continuing to manufacture locally.” The closure will result in the loss of approximately 1,200 jobs at Ford’s Broadmeadows and Geelong manufacturing plants. Australia is currently one of four product development hubs for Ford globally, employing over 1,000 staff in the country, and the company says this will continue. The manufacturer is also significantly enhancing its sales and service offering in Australia. The company has appointed a dedicated consumer experience team to provide customers with better aftersales service. ”We have a range of projects under way to significantly enhance our customer’s experience with Ford,” said Graziano. ”This includes one of the only programs in Australia that provides a capped price on all servicing costs for seven years.” In April, former Ford boss Jac Nasser forecast the end of car manufacturing in Australia because the Australian exchange rate was at a 30 year high, there is excess capacity in the worldwide motor industry, a weak Japanese currency and a weak Euro. ”When you put that mix together,” he said, ”It’s difficult to expect a relatively small but talented Australian auto industry to work its way.” Mr Nasser said it was difficult to predict when vehicle production would end in Australia, but said he thought that if one of the three manufacturers decided to close its Australian operation, the weakened supplier base would swiftly make it unviable for the other two to remain.
European commission adopts eCall proposals The European Commission has adopted two proposals to introduce an eCall system across Europe by October 2015. eCall would automatically call emergency services in the case of a serious accident by dialling ‘112’, the panEuropean single emergency number. The proposals adopted would ensure that from October 2015 all new model passenger cars and light-duty vehicles would be fitted with 112 eCall and the necessary infrastructure would be created to receive and handle eCalls in emergency call response centres. The proposals have been welcomed by the European Automobile Manufacturers Association (ACEA), which says that any public eCall service must be pan-European and available to all customers before the system becomes obligatory. ”Throughout the development process ACEA has consistently outlined the importance of parallel contributions from all stakeholders,” said ACEA secretary general, Ivan Hodac. ”Everyone and everything has to be in place for it to work.” Public service answering points must be ready in all member states and mobile network operators must be prepared before in-vehicle systems are enforced, says the organisation. ACEA has expressed its concern that the proposed enforcement date will not give enough time for the manufacturers to implement the necessary technical adaptations.
TomTom launches Tachograph Manager TomTom has launched Webfleet Tachograph Manager at the recent transport logistics show in Munich. The system supports remote and manual download, as well as archiving and analysis of tachograph data to comply with legislation. Remote downloading of the data works by using a connection with TomTom’s LINK on-board unit.
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for the latest news, visit internationalfleetworld.com
Europcar and Advantage enter partnership
Europe-based vehicle rental company Europcar Group and Franchise Services of North America have announced that they will form a worldwide partnership. Franchise Services operates the Advantage Rent A Car brand in North America, currently from major airport locations in the United States. Under the agreement, Europcar customers will be served by Advantage in the USA and Advantage customers will be served by Europcar in the rest of the world, with effect from 19 August 2013. Speaking to International Fleet World, Europcar CEO, Roland Keppler, said: ”The US market is very important for the car rental industry. It’s the biggest single market. We have decided to team up with Advantage because they have the same philosophy as we do. Advantage is currently number four in the US market, both in terms of philosophy and ways of looking at the business, they are very close to us and we have been able to conclude this partnership in a really short time-frame.” Europcar has had a strategic alliance with Enterprise and this partnership comes to an end on 18 August. Mr Keppler told us that Europcar still sees opportunities in China, India and Brazil. ”These are still areas we need to develop, but this time the US was the big focus for us.” Europcar will continue to operate the InterRent, National and Alamo brands in the EMEA area separately from the agreement with Advantage.
Cellocator launches driver safety and eco driving software
car2go launches in Denver Daimler subsidiary, the car sharing company car2go, has launched in Denver, Colorado in the US. The company will introduce 300 car2go Smart fortwo vehicles, which will be available for shared use in the Metropolitan Denver area 24-hours a day, seven days a week. In each city where car2go is established, the company lays out a dedicated Home Area where the service is available. This takes in the major attractions and areas for that city. The Denver Home Area extends north from Interstate 70 to E. Yale Avenue and west from Sheridan Boulevard to Québec Street, covering an area of 109 km2.
GM introduces remote services as standard General Motors has announced the new RemoteLink Key Fob services programme for OnStar equipped 2014 Chevrolet, Buick, GMC and Cadillac models. Thirty-six 2014 model year GM models are compatible with the mobile app. ”GM owners request remote door unlock assistance through OnStar more than 60,000 times each month, so it makes sense for us to offer RemoteLink Key Fob Services to enable customers to lock, unlock or start their vehicle from anywhere they have a wireless or cellular connection,” commented Mary Chan, president of GM Global Connected Consumer. Remote start is currently the most popular remote service accessed by users of the RemoteLink mobile app. Additional services include monitoring oil life, fuel level range, tyre pressures and fuel consumption. Customers can simply download the free application to a compatible smartphone. The five-year period runs from the vehicle delivery date. The app can be used for starting a car on a cold day to warm it up or checking that you locked it in an airport car park.
Cellocator has launched driver safety and eco-driving software, which it calls Cello-IQ. The software is used to process and interpret information from the vehicle into driver safety and ECO-scores, said to reflect the driver’s relative level of risk fuel consumption and carbon dioxide emissions footprint relative to a selected group. ”Cello-IQ is a revolutionary system, offering an end to end driver behaviour and fleet safety solution, to assist fleet managers in enhancing driver safety and operating efficient fleets,” said Noam Cimand, VP sales & marketing at Cellocator. ”It is a perfect fit for numerous telematics software developers who wish to add driver behaviour and fleet safety to their fleet management software platform.”
IFW July/August 2013
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news analysis
More production capacity for Honda in China
Honda’s joint venture company in China, Guangqi Honda has begun construction of a third production line and an engine plant at the existing ZengCheng plant. The new production line will include solar powered electricity generation with a capacity of 10,000kW, claimed to be the largest capacity solar power generation system installed by a car manufacturer in China. The third line is due to become operational in 2015, initially with a production capacity of 120,000 units per year. This will expand the existing capacity of the plant to 600,000 units per year. The company is also planning to expand capacity further by up to 240,000 units. This would give Honda a total annual manufacturing capacity in China of over 1.01 million units.
J.D Power highlights design related problems J.D Power has released the results of its 2013 Initial Quality Study, based on models available in the US. The report says that the majority of problems – almost two-thirds, that owners of new vehicles experience in the first 90 days of ownership are design related rather than manufacturing defects. Such problems are far less likely to be solved by the dealer than manufacturing issues, says the report. The report gives the example of a component that may work as it was designed to do, but owners rate it as a problem because it may be difficult to understand or operate. Of the design related problems, the survey reckons that just 9% of owners take the vehicle to a dealer within the first 90 days of ownership and only 13% of the problems are resolved. For manufacturing defects, the survey found that 28% of owners take their cars back to the dealer and 42% of the time the problem is resolved.
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Volvo uses crowdsourcing to shape Volvo On Call Volvo Cars has used a global crowdsourcing initiative on the company’s global and local Facebook pages to help shape the future of the Volvo On Call mobile application. The most popular ideas from the survey that have not yet been implemented in the application include a feature to help find car keys when misplaced, a feature to pay for parking through the application, a reminder to warn when parking time is about to expire and a feature to show where the nearest fuel station is when fuel is running low. Other trends emerged from the exercise, including recording many personal preferences, such as seat and mirror settings, preferred routes, notifications when the driver is about to pass a favourite restaurant or enter toll roads that he or she wants to avoid. Volvo on call is available for a range of smartphones including iPhone, Android and Windows phones. The app is available for cars from 2012 model year onwards. Volvo says it received feedback from thousands of participants in the exercise.
Honda cuts US Fit EV lease price Honda has cut the price of the Fit EV US monthly lease from $389 to $259 for new and existing customers. The deal includes a new three-year lease term, which requires no down payment and includes unlimited distance, routine maintenance and collision coverage. A 240V home charging station is also included in the package, although this does not cover the cost of installation. Existing Fit EV customers are also included in the deal. Honda says the online application process has also been speeded up and the network of qualified Fit EV dealers in California, Oregon, New York, New Jersey, Massachusetts, Maryland, Rhode Island and Connecticut will have expanded from 36 to 200 by the end of June.
for the latest news, visit internationalfleetworld.com
Daimler Trucks launches Daimler Trucks Asia Daimler Trucks will group together Mitsubishi Fuso and Daimler India Commercial Vehicles under the brand name of Daimler Trucks Asia. The company says that this will open up opportunities for significant growth in promising, emerging markets in Asia and Africa. The combined companies have a planned sales target of 290,000 units until the year 2020 representing a significant portion of Daimler trucks sales target of over 500,000 trucks in 2015 and 700,000 trucks in 2020. Daimler Trucks is starting production of five new FUSO truck types in the Daimler India Commercial Vehicles plant.
in brief... Mercedes builds two millionth CV in Brazil Mercedes-Benz has built its two millionth commercial vehicle at its Brazilian plant 57 years after production started. The figures represent approximately 1.4 million trucks and 600,000 buses. The company sold some 15,820 commercial vehicles in Brazil during the first five months of the year, over 50% more then in the same period in 2012.
Ford Focus Electric production starts Ford has started production of the Focus Electric, the first electric vehicle to be built by Ford in Europe. The car features a lithium-ion battery driving a motor producing 145hp and has a top speed of 135km/h. Each Focus Electric is equipped with a 6.6kW integrated on board charger that can deliver a driving range of around 96km with two to three hours charging from a 32A power supply. The car has a range of about 160km on a full charge, which will take three to four hours.
Volvo demonstrates self-parking car Volvo has given a glimpse of the future by demonstrating a self-parking car. �Autonomous Parking is a concept technology that relieves the driver of the time-consuming task of finding a vacant parking space. The driver just drops the vehicle off at the entrance to the car park and picks it up in the same place later,� says Thomas Broberg, senior safety advisor at Volvo Car Group. The system would need transmitters in the road system to make it work and inform the driver when the service is available. He or she can then activate the system using a mobile phone application. All they then have to do is get out of the car where they want and the system will then park the car without a driver. Sensors detect other vehicles and road users and the car is braked automatically to avoid them. The new Volvo XC90, due next year, will be available with some autonomous steering functions.
Ryder to sponsor green expo Ryder will sponsor the 2013 Alternative Clean Transportation Expo at the Walter E Washington Convention Centre in Washington DC, U.S. Ryder executives will discuss how fleets can evaluate the total cost of ownership for heavy-duty natural gas vehicles. And also how to aid the deployment of alternative fuels fleets by using rental and leasing.
Volvo Trucks plans DME for North America Volvo Trucks has announced that it will introduce trucks powered by DME within the next two years in North America. The company already has vehicles powered by the fuel operating in Sweden. Diesel engines can run on the fuel without further modification and it can be produced from renewable sources.
IFW July/August 2013
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With distance function, park assistance function and role model function. The new E-Class. Efficiency in top form.
A Daimler Brand
The new benchmark for efficiency. With a combined consumption of just 4.1 l/100 km, the E 300 BlueTEC HYBRID has CO2 emissions of only 107 g/km. That makes it one of the most economical models in its class and the ideal vehicle for any fleet. www.mercedes-benz.com/fleet
Fuel consumption urban/extra-urban/combined: 4.2–4.1/4.2–4.1/4.2–4.1 l/100 km; combined CO 2 emissions: 110–107 g/km. Figures do not relate to the specific emissions or fuel consumption of any individual vehicle, do not form part of any offer and are intended solely to aid comparison between Provider: Daimler AG, Mercedesstraße 137, 70327 Stuttgart
different types of vehicle. The vehicle shown features optional equipment.
EV news analysis
Hybrid delivery vehicle to cut CO2 by 25% at DHL DHL Supply Chain has begun a ”proof of concept” trial of a new hybrid truck, claiming its unique drivetrain could offer a 25% reduction in fuel consumption and CO2 emissions compared to a conventionally powered model. The two-year development project was carried out by DHL’s GoGreen and engineering teams with the expertise of British hybrid specialist, Magtec. Capable of driving purely using electricity, it can also recapture energy while decelerating, which is stored in a supercapacitor. DHL said the vehicle is best suited to inner-city routes, and will be used by NHS Supply Chain, which the company runs, in London for the duration of the trial. If it proves successful the technology is set to be a big part of its urban, local and home delivery operations in the future. Jonathan Chadburn, vice president of commercial and fleet services (UK Transport) at DHL Supply Chain, said: ”This latest innovation underlines DHL Supply Chain’s commitment to sustainability and to driving better results for our customers. We always strive to improve our environmental performance and are proud to be at the forefront of green innovation in the logistics sector.” Deutsche Post DHL has already tested technology including hybrids, natural gas and biogas, dual fuel and aerodynamic modifications on its delivery
fleet as part of its GoGreen programme. Launched in 2008, this is aiming for a 30% reduction in CO2 emissions by 2020, based on 2007 figures, and at a 16% reduction to date is already over half way there. In May, the company announced it will have 141 electric vehicles on its delivery vehicle fleet in Germany by 2016, including 50 compact scooters developed in partnership with StreetScooter and RWTH Aachen University. Deutsche Post DHL’s German fleet is one of the largest in the country.
Germany announces tax breaks for plug-in company cars Germany has announced tax advantages for electric company cars to be introduced next year, aimed at improving electromobility take-up among corporate buyers who account for a third of sales in the country, news agency Reuters has reported. Less than 3,000 electric vehicles were sold in Germany last year, far behind targets of one million to be on the roads by 2020 set by Chancellor Angela Merkel. Until now, company car drivers have been taxed 1% of a vehicle’s gross list price to use a vehicle for private use, putting the usually more expensive electric models at a tax disadvantage. From the 1st January 2014, private users will be able to offset the list price at €500 per kilowatt-hour of battery size, up to the value of €10,000,
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and is applicable to battery electric and plug-in hybrids. The amount which can be offset shrinks annually by €50.
for the latest news, visit evfleetworld.com
New partnership aims to tackle hydrogen infrastructure in United States The United States Department of Energy (DoE) has launched a public-private partnership aimed at reducing the cost of deploying a network of refuelling stations for hydrogen fuel cell vehicles. Named H2USA, the project will bring key stakeholders in the hydrogen fuel cell industry, including carmakers, industry bodies, component manufacturers and hydrogen specialists, together to solve infrastructure challenges and leverage low cost natural gas resources. Regional divisions of Hyundai, Mercedes-Benz, Nissan and Toyota have already joined. The United States has recently started utilising its shale gas resources to produce electricity, which has reduced the cost of producing hydrogen through electrolysis. Research and development supported by the DoE has already reduced fuel cell costs by 35% since 2008 and more than 80% since 2002, while doubling durability and cutting the use of expensive platinum parts by 80% since 2005.
Bosch & Evatran announce wireless charging package
in brief... Mercedes-Benz takes Nürburgring electric lap record The 740bhp Mercedes-Benz SLS AMG Coupe Electric Drive has set a 7:56.235 minute lap record for production electric vehicles at the Nürburgring Nordscheife in Germany. Days beforehand, Audi had revealed the R8 e-tron which previously held the record was no longer due to go to production. The electric SLS is on sale in selected markets, priced at €416,500 in Germany.
Toyota to recall 242,000 hybrids for brake fix
Bosch Automotive Service Solutions has formed a world-first distribution and installation agreement with Evatran Group to install wireless electric vehicle charging systems at customers’ homes in the United States. The Plugless Level 2 Electric Vehicle Charging system is claimed to be the first commercially available wireless charger, and includes a pad mounted on the floor, which allows Chevrolet Volt and Nissan LEAF owners to simply park and charge without any physical connections. Under the agreement, a Bosch-certified electrician will provide on-site estimates and install the pad, control panel and associated wiring, while Bosch Car Service centres will be trained to fit the on-vehicle components required for wireless charging. Bosch will also provide a three-year warranty and on-site surveying and advice for customers.
Toyota has begun a recall of 242,000 hybrids globally to replace potentially faulty brake pressure regulators. Cars including the Prius which were built between March and October 2009 could potentially leak nitrogen into the brake fluid, causing reduced braking force and a longer pedal stroke. To date, 93 cases have been reported worldwide, with no accidents or injuries as a result.
Pan-European charging network announced
Israeli company Better Place, famed for its battery switch stations for electric vehicles, has filed for liquidation six years after it was launched. The company said it had failed to raise additional funds or resources to continue with the business, and asked for court assistance to protect employees, customers and creditors. Main partner Renault will continue to provide after-sales servicing for affected Fluence Z.E. vehicles.
A joint venture of German service providers and vehicle manufacturers has launched a shared platform which will allow electric vehicle owners to access charging points located all over Europe via a single membership. The intercharge project is the brainchild of Hubject, a joint venture comprising BMW Group, Daimler, Bosch, Siemens and utility companies RWE and Energie Baden-Württemberg (EnBW). Charging point providers in Benelux, Germany and Austria have already signed up to join the pan-European network. Speaking at the launch in Berlin, Andreas Pfeiffer, managing director of Hubject GmbH, said: ”By starting the eRoaming platform we and our partners have provided the solution to a fundamental emobility issue. intercharge will enable all users of electric vehicles to charge easily and anywhere.”
Electric car venture Better Place files for liquidation
City of Copenhagen takes delivery of 15 hydrogenpowered Hyundai ix35s The City of Copenhagen in Denmark has taken delivery of the first assembly lineproduced ix35 Fuel Cell vehicles from Hyundai in support of its aim to become carbon-neutral by 2025. Hyundai is to produce a run of 1,000 ix35 FCEVs for business leasing in Europe, ahead of mass market commercialisation in 2015.
IFW July/August 2013
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coming soon...
D RANGE Revised Midlum cab is the face of the new Renault Trucks D Range
K RANGE
D RANGE
RENAULT reviews range New light and heavy truck models and revisions for the rest of the range bring the Renault Trucks fleet proposition up to date, as John Kendall reports.
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N
o truck manufacturer has ever renewed its entire range at one stroke – until now. Renault Trucks has been able to call on its incorporation in the Volvo Truck Group and the company’s existing relationships with others to help bring this about. The company has used engines originally designed by Volvo Trucks subsidiary UD Trucks of Japan for its new distribution models. As before the 11 and 13-litre diesel engines for the long distance range are shared with Volvo Trucks, but now the integration of drivelines is closer than before. A new light truck has been developed in co-operation with Nissan. Renault Trucks has offered a variant of the Nissan Cabstar light truck, badged Renault Maxity, but the new light truck will extend that co-operation further. The big news is the replacement of the Renault Trucks heavy range of flagship long-haul Magnum, originally launched in 1990, and Premium, as well as the Kerax and Premium Lander construction models. Renault has designed a new modular cab to replace those used on all these models. Renault has simply named the long distance Magnum/Premium replacements as the ‘T’ range and the construction models with two ranges, the heavy haulage and heavy construction ‘K’ range and lighter ‘C’ range. Renault claims fuel consumption for the T range is reduced by up to 5% compared with the outgoing models. The cab is available in four different sizes: Day Cab, with standard roof but without a bunk, Night and Day Cab which is longer than the day cab and still with the standard roof. Then there are two sleeper cabs. The smaller Sleeper Cab has the same basic loor area as the Night and Day Cab, plus high roof and optional upper bunk. The lagship High Sleeper Cab model offers the
T RANGE
high roof but with a lat loor giving 2,013mm of standing headroom, 200mm more than the Sleeper Cab and two bunks. This version with the lat loor is not available in right hand drive. T range engine choices run to either an 11-litre or 13-litre Euro6 engine, depending on cab. Each engine is available with three power ratings. For the 11-litre engine this means, 380hp, 430hp or 460hp and for the 13-litre engine, 440hp, 480hp or 520hp. A 12-speed automated transmission is standard in all cases, although a manual gearbox is available as an option. Renault Trucks offers its Opti leet leet management and
telematics software package. With the system, the vehicle can be tracked, operational data can be monitored for the driveline and drivers’ hours can also be monitored. Data can also be recovered from the tachograph and driver’s card. Drivers can also use Opti leet to send messages to their operating base. The company’s Optifuel system will monitor driver performance in real time and give feedback to the driver. The data is also available to leet managers and driver trainers. Opti leet and Optifuel are available across the new Renault Trucks model ranges. The middleweight distribution models are based mostly on the existing Renault Midlum cabs, updated to accommodate the additional cooling needed to meet Euro6 emissions regulations. The D range will consist of the 10–18-tonne GVW ‘D’, the ‘D Wide’ for heavier 18–26-tonne GVW vehicles, ‘D Access’ for 18–26-tonne GVW refuse and recycling vehicles and the light D two-metre cab, developed with Nissan to cover the 3.5-tonne to 7.5-tonnes gross weight range. This model will be released at a later date and will use the Nissan Atleon cab from the company’s light truck range. In total, Renault Trucks offers nine types of cab with the D range, excluding the D two-metre range. The D cab is 2.1m wide and the D Wide cab 2.3m wide. D cabs are available as Day, Global and a variety of Crew cabs with four, six, or eight seats. The D Wide cab is offered as a Day, Global, Night and Day and Sleeper Cab while the D Access, designed for waste and recycling operations, is only available with a low entry three or four seat cab. The D two-metre cab will have up to three seats, while the range will include models at 3.5-tonnes GVW, including a heavy duty model, 5.6-tonne GVW, 6.5-tonne GVW and 7.5tonne GVW. The 3.5–6.5-tonne GVW models will be powered by a 150hp version of the DTI 3, 3.0-litre engine, while the heaviest 7.5-tonne GVW model will have a more powerful 180hp version of the engine. All models will be offered with a six-speed manual gearbox, while the 7.5-tonner will be offered with an automated six-speed transmission. The D range models will be powered by revised 5.1 and 7.7-litre engine ranges, derived from engines developed by UD Trucks in Japan. For the D two-metre range, power will come from a 3.0-litre engine supplied by Nissan. There are two power options for the four-cylinder 5.1-litre DTI 5 engine, rated at 210hp and 240hp. The six-cylinder, 7.7-litre DTI 8 engine shares its design characteristics with the DTI 5 engine and is available with 250hp, 280hp and 320hp. Again, automated transmissions are standard equipment, based on six and 12-speed gearboxes. There is also a choice of six and nine-speed ZF manual transmissions. The C and K ranges will cover the multi-wheeler construction and heavy haulage sector up to 120-tonnes GCW. K is designed to replace the current Kerax range. The new truck ranges represent a €2bn investment from the Volvo Group and follow on from the launch of the new Volvo Trucks range at the Hanover Show last year. The new heavy-duty cab is not shared with the new Volvo FH, so it seems likely that the new Renault cab could be used on products from UD Trucks in Japan and Eicher Trucks in India, both Volvo Truck subsidiaries. The development has taken place over ive years. 300 vehicles have covered some 10 million km with a further ive million hours of bench tests in a range of temperatures between -40 degrees centigrade and +60°C.
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Think you can have too
Think Again. Hyundai understands everyone is unique and that different people need different solutions. That’s why we’re proud to announce the arrival of our newest model, the all new Hyundai i30 3 door. More options for you to choose from, the same quality for you to enjoy. For more information, please proceed to Hyundai.com/eu Fuel consumption in MPG (l/100km) for New Generation i30: Urban 29.7-68.9 (9.5-4.1), Extra Urban 51.4-80.7 (5.5 - 3.5), Combined 40.9 -76.3 (6.9-3.7), CO2 Emissions 162-97g/km.
much of a good thing?
fleet strategy
UK optimism bucks a pessimistic trend in Europe The UK is the only European market to show big gains in residual values, while forecast SMR costs are climbing in France and Portugal. Experteye gives us the story. With forecasted residual values climbing by +7.3% during the last 12 months, and +7% in the last quarter, UK contract hire and leasing companies are bucking the trend, with their European counterparts reporting a downward shift in values. Since June last year, Portugal has seen a -7.4% fall in its forecasted residual values, Spain a -3.4% drop, Italy -2.1%, Germany -0.9% and France -0.2%. In the last three months, some signs of renewed optimism have returned with France and Germany both reporting a +0.3% rise in their forecasted residual values (RV), yet the other nations surveyed (apart from the UK) have fallen once again. The figures from the Experteye European Leasing index reflect a volatile European market. As well as pessimism in the future used vehicle market, there is also volatility in servicing, maintenance and repair (SMR) budgets. In Portugal, the SMR element of contract hire rentals has risen by +8.7% in the last year. France sits in second place with a +6.5% rise, followed by the UK (+1%), Italy (+0.7%) and Germany (+0.4%). Yet in Spain, budgets have plummeted by -11.1% The Experteye survey tracks forecasted residual values (RV), servicing, maintenance and repair (SMR) costs and rental rates in six European countries using data supplied by major leasing companies. In a European economy that has seen some dramatic shifts in pricing policies, and varied views on the health of the future used vehicle market, there have been some interesting and diverse changes in the last twelve months. In France, rental rates have risen by +6%, the most of all nations surveyed, whereas Portuguese fleet operators have enjoyed a -7.3% reduction in prices.
Market summaries – 3 and 12 months to May 2013 FRANCE: French fleet operators have seen rental prices rise by +6% in the last year and +4.7% in the most recent quarter, making them the hardest hit with price hikes of all nations surveyed. SMR budgets have shot up by +6.5% since June 2012 and +0.3%
since March this year. Forecasted residual values remain relatively stable with a -0.2% drop since June last year and a slight +0.3% improvement since March. GERMANY: Germany has been very stable with little movement in any of its pricing elements. Forecasted RVs moved down by -0.9% in the last year, but have climbed by +0.3% in the latest quarter. SMR budgets rose by +0.4% for the twelve months but have remained unchanged since March (0%). Rental rates have seen a small drop with -0.9% over the year and quarter. ITALY: During the last three months Italy has seen the largest fall in SMR budgets of the nations surveyed, albeit only at -2.6%. During the course of the year they rose by +0.7%. Forecasted residual values have fallen by -2.1% since June 2012 and -0.3% in the latest quarter. Rentals rose by +0.8% last quarter after coming down by -1.3% for the year. PORTUGAL: Portugal has been seeing some exceptional shifts in the elements which make up its contract hire rentals. In the last twelve months forecasted residual values took a -7.4% downturn whilst SMR budgets rose by +8.7%. The impact on rentals was a -7.3% drop, although the trend has been less dramatic since March this year. In the last three months forecasted RVs have come down by -1.1%, SMR remains unchanged (0%) and rentals have reduced by -1.4%. SPAIN: Spain has seen a massive -11.1% fall in its SMR budgets during the year, with a -1.5% fall during the latest quarter. Forecasted RVs for the year have come down by -3.4% and by -0.7% since March. Rentals remained relatively unchanged over the last twelve months (-0.5%) with a -1.4% shift for the quarter. UK: The UK stands out when it comes to con idence in the future used vehicle market. Forecasted RVs have risen by +7.3% for the year and +7% for the quarter. The UK is the only nation to show an increase in RVs for the year. SMR budgets remain stable with a +1% increase since June 2012 and a +0.2% increase last quarter. Rentals have hardly moved with a -0.2% shift for both the year and quarter.
CHANGES IN RV FORECASTS, SMR COST FORECASTS AND LEASE RENTALS Forecast Service, Maintenance Current Rental Rates and Repair Costs 3-month change 12-month change 3-month change 12-month change 3-month change 12-month change +0.3% -0.2% +0.3% +6.5% +4.7% +6.0% +0.3% -0.9% +0.0% +0.4% -0.9% -0.9% -0.3% -2.1% -2.6% +0.7% +0.8% -1.3% -1.1% -7.4% +0.0% +8.7% -1.4% -7.3% -0.7% -3.4% -1.5% -11.1% -1.4% -0.5% +7.0% +7.3% +0.2% +1.0% -0.2% -0.2% Forecast Residual Values
France Germany Italy Portugal Spain UK
Notes: • The comparisons are for vehicles with a contract duration of 36 months/90,000km. • Twelve-month comparisons show change since June 2012. • Three-month comparisons show change since March 2013.
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• Rental rate changes compare the rates in effect at the time of the survey with those in effect three or twelve months ago. • RV and SMR changes show the change in participating leasing companies’ forecasts of residual values and maintenance costs over the period.
The new
OPEL ADAM
find the one, you are designed for. What’s your style? What are you driven by? Express yourself and customize your ADAM in a way that fits best to you and your life. www.opel.com Fuel consumption combined 5.5–5.0 l/100 km; CO2 emissions combined 129–118 g/km (according to R (EC) No. 715/2007). Efficiency class D–C.
industry analysis Launch timing for the new A-Class was crucial as the new model became a BMW 1 Series competitor, transforming the A-Class brand image.
Time for a facelift? Is it worth waiting for the facelift and what will happen to the value of the current model, asks Maarten Baljet of BF Forecasts. Take the motor shows in Geneva, New York and Shanghai - at each of them lots of novelties have been presented. Between the really new models you can also find facelifted cars. New bumpers, different headlamp design or just some additional chrome - in case of minor changes, facelifts can be hard to recognize even for true car fans. Is a facelift actually that interesting for a car buyer anyway? On one hand facelifts are a good opportunity for the manufacturer to get rid of any teething problems and to incorporate some improvements. But besides these changes that are made on the car as such, facelifts can have wider implications as well. Let us have a look at the different effects that a facelift can have on the residual value behaviour of the particular model. Generally, the pre-facelift car's value will suffer, when a new and, presumably, more desirable car is launched. The more significant the changes are, the bigger the difference in value will be. Nevertheless, this gap
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is unlikely to exceed 3% of the new car price; whereas, in case of a complete model change, it can be as high as 10%. Residual values are often mentioned as a percentage of the MSRP. Take the case of a car model with an ‘old’ face leaving the factory at the beginning of summer, which leaves the plant with a sleek new front in autumn, this can make a difference of roughly 3% when reselling the car after three years time. If this car costs €25,000, we are talking about a €750 loss. Therefore, it is worth taking the residual value impact into consideration when managing your fleet, be it big or small. The above example describes a relatively extensive facelift. How significant a facelift is required to be is also related to the success of the model concerned. If the car is selling well, a facelift may actually not be necessary. Adopting slight changes can, however, be an effective way for a manufacturer to increase the profile of a model and encourage the media and potential car
buyers to pay attention to the car. In such a case major improvements are not required, as the main goal is to be in the spotlight. Therefore, a minor facelift can be the right measure. The contrary can also be true. Because of its lack of success in Europe, BMW had to come up with a serious makeover of the ‘old’ 7 Series (E65). When the Bangle-designed limousine hit the market in 2001, the automotive press could not stop writing about the remarkable design. Although in the USA, Russia and Asia there were some people who liked the old styling, in this case the makeover was really called for. There are also situations where facelifts have almost no impact at all. If there have been multiple changes already, it becomes obvious that the lifecycle is ending. Hence, the used car buyer will not be that attracted by the idea of owning the still-actual model any more. For this reason it is not realistic to expect a significant residual value improvement coming with the second
It’s all in a name Current Passat below is actually an extensive facelift of the previous model (right), but still seems fresh.
About time too... BMW’s 2001 MY 7 Series was long overdue but revitalised the brand’s luxury offering with radical styling cues.
or even third facelift. Just think of the current Volkswagen Touran, which has been on the market since the beginning of this millennium and after several cosmetic changes - is still available for sale. Post-facelift is pre-model change! If a car has been on sale for, let’s say, three years and then receives a facelift, you can bet on a completely new model to come in another four years, at the latest. With a brand new generation standing in the showrooms, the residual values of both the facelifted and original models come under pressure. In order not to endanger the desirability, and therefore the new car sales and residual values, of the outgoing model, car makers try to keep the introduction of a new car secret for as long as possible. Strategically, the car maker may deviate from this principle, for example if a close competitor is coming up with a new model too. Think of the spectacular A-Class concept shown by Mercedes-Benz
just before the launch of the new 1 Series BMW. As I pointed out earlier, the model change impact from a forthcoming new model will again be much stronger than the impact of, ‘just’ a facelift. But it is not always that easy to see the difference between a facelift and a model change. The current Passat was presented as ”The New Passat,” although we were actually dealing with an extensive facelift. Does it matter anyhow? For a residual value forecaster it does! A completely new model will be ‘fresh’ for many years; whereas, the facelifted car will have a successor much earlier. At the end of the day, it will be necessary to keep both future model changes and facelifts on the radar. With this information as the basis, we make a precise calculation of the related residual value risk. This helps you in taking a well-founded decision on whether to wait for the facelift, or accept a discounted offer for a wellequipped phase-out model.
It is not always that easy to see the difference between a facelift and a model change. IFW July/August 2013
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ALD Automotive
ECO Marathon Paris to Frankfurt 9-10 September 2013
How LOW can you go? An economy driving event challenging fleet operators and motor manufacturers to see who can make the 600km journey from Paris to Frankfurt using the least fuel, or with the greatest improvement over the manufacturers’ published fuel consumption figures
How you can enter the ALD ECO Marathon... You can request a place by completing the registration form at – www.aldecomarathon.com. We give priority to entrants working for fleet companies and those with ecodriving experience, but there are plenty of opportunities for others to get involved.
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FUEL consumption, CO2 emissions, smarter driving, journey planning... all key issues for fleet decision makers both within individual markets, and across the borders. Fleet World magazine has been organising high-profile economy driving events in the UK for over 14 years. Now it’s time for fleet managers across Europe to rise to the challenge of the first ALD ECO Marathon – an economy driving event organised by International Fleet World magazine, in partnership with ALD Automotive and TRACKER. The ALD ECO Marathon will take place on Monday 9 and Tuesday 10 September 2013. The event starts in Paris on the morning of Monday 9 September, with an overnight stay in Luxembourg, before carrying on to the finish in Frankfurt on the afternoon of Tuesday 10 September, timed to coincide with press day at the Frankfurt Motor Show.
How will the winners be decided? Economy driving, smarter driving, eco-driving – different names for the same thing – using skilful driving techniques in order to get from A to B using as little fuel as possible. The ALD ECO Marathon will be a “real world” test of driving skills where drivers compete in standard production fleet cars on a variety of roads. And they will need to complete the course within time limits which ensure that they keep up with traffic at all times. There will be two overall winners in the 2013 ALD ECO Marathon. The first will be the driver who completes the journey using the least possible amount of fuel over their chosen route, in other words the fewest litres per 100km. The second will be the driver who demonstrates the highest percentage improvement over the figures published by the motor manufacturer for the vehicle used.
in partnership with
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About ALD Automotive ALD Automotive is the vehicle leasing and fleet management business line of the Société Générale group, operating 960 000 corporate vehicles in 37 countries. Being the global reference in providing innovative and sustainable mobility solutions, ALD supports everyday the success of its customers via personal services and reference quality. We deliver flexible solutions made simple inspired by our culture for excellence, exceeding fleet managers and employees expectations. Driven by passion, vision and expertise, ALD develops true partnerships creating value for all our stakeholders.
About TRACKER TRACKER is one of the world’s leading suppliers of vehicle tracking services, with over a million systems installed to date. Celebrating 20 years of market-leading success, TRACKER’s award winning fleet tracking systems help companies meet the challenges facing them today. TRACKER Fleet incorporates groundbreaking, patented technology, providing important cost-saving benefits, not just for the shortterm by identifying fuel inefficiency, but also longer-term by providing valuable insights into driver and business behaviour.
IFW July/August 2013
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fleet focus THE NETHERLANDS
BEST-SELLER
KIA PICANTO
DOWN BUT NOT OUT
EST SELLER SECOND BIGG PEUGEOT 107
The Dutch may have invented car leasing in the 1950s and this maturity could be helping to support the market as recession takes hold, reports John Kendall.
BORN IN 1928 DAF Trucks is the Netherlands’ oldest vehicle manufacturer
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For a relatively small European country, the Netherlands has a comparatively large automotive sector. According to the Dutch Automotive Industry website, the industry employs some 45,700 people across OEMs, suppliers, R&D institutions and others. Around 10,000 are employed in manufacturing, with approximately 6,500 building trucks, 2,000 building cars and 1,700 building buses. This makes the industry one of the largest in the Dutch manufacturing sector. DAF Trucks is the Netherlands’ oldest surviving vehicle manufacturer, dating back to 1928. The company is now owned by the US PACCAR Company that produces Peterbilt and Kenworth trucks in North America. Besides DAF, Scania, the Swedish truck manufacturer, now part of the VW Group, also produces trucks in The Netherlands and there are also the specialist truck manufacturers Ginaf and Terberg. The Nedcar plant can trace its routes back to the production of DAF cars and until recently the Mitsubishi Colt and Outlander were produced here for Europe. The VDL group, which is involved in bus and coach production, under the Berkhof and Bova brands, will be producing the MINI in the plant from 2014. In addition there are specialist car manufacturers Donkervoort and Spyker. The manufacturing sector naturally brings a supplier base with it. Well known names such as Philips, TomTom and Bosch are among those manufacturing in the Netherlands. Besides these, in the fleet and leasing sector, LeasePlan is a Dutch company. The Dutch car market is having a difficult time at the moment. In 2012, the market fell by -9.6% from 555,843 in 2011 to 502,528. Since then the market decline has gathered pace, with ACEA data showing that in the first four months of 2013, the Dutch car market contracted by -29.6% to 146,063, compared with 207,468 in the same period in 2012. ALD’s general manager in the Netherlands, Carel Bal, told us that the market is expected to decline to between 400,000 and 420,000 new cars in 2013. The problem appears to lie in a growing Dutch economic crisis. Dutch house buyers capitalised on a booming property market in the 1990s and now that property prices are falling, many buyers have
been left with high levels of debt. The Dutch economy as a whole has the highest level of debt in the Eurozone. It’s no surprise that car sales have plummeted against this background. Gauging the size of the car fleet sector is never easy as it depends on how a business car is defined and how fleet sales are defined. We asked a selection of those involved in the business vehicle sector for their views on the market. Anne Brons is the marketing and business development director for Alphabet in the Netherlands. His estimate is that around 872,000 business cars are on the road in the Netherlands, making up 12.3% of the market. Around 70,000 business cars were added in 2012. He also suggests that there are 7,042,000 cars registered on Dutch roads. ALD’s Carel Bal estimates that there are just over 700,000 leased business cars on the road in the Netherlands and that registrations of these have dropped 37% so far in 2013. Niels Beringen at Arval in the Netherlands estimates that approximately one third of all new cars sold is leased. That figure is supported by Carel Bal (pictured) at ALD who suggests that the percentage of leased cars in the Dutch market is around 32%, possibly the highest in Europe. This could be in part be due to the maturity of the leasing market in the Netherlands, “It started in the late 1950s,” he says, “Initially, this was a way of financing the car and it has gradually evolved more into servicing the car. “For at least two decades in Holland we have had the full leasing concept, which means it’s much more like a service concept than a finance concept. It’s in line with the Dutch economy – outsourcing is prevalent in Holland, not only for car leasing but other activities too. So it means that the market is already densely populated with leasing companies and is quite mature.” The Netherlands has a CO2 based car taxation system and this has had a great influence on car sales. As Niels Beringen of Arval told us, “10 years ago the choice for a new lease vehicle was mainly based on emotional arguments. These days it's mainly based on financial arguments. Therefore manufacturers that produce lots of vehicles with low Benefit-in-Kind taxes are the most popular right now.”
Among those he lists Renault, Ford, Mitsubishi and Toyota. For ALD customers, Volkswagen is the favourite, followed by Ford and Renault. Anne Brons at Alphabet also lists Volkswagen as the most popular brand, followed by Renault and Peugeot. Mr Brons (pictured) explains the Dutch market in some detail, “Dutch people buy relatively small cars. The downsizing trend, which already began several years ago, is evident from the recent BOVAG and RAI Association analysis of car sales figures for 2012. “The reason for this trend stems mainly from the fact that, in our country, purchasing behaviour is greatly influenced by the tax regulations concerning passenger cars. This small-car trend emerged when the basis for private car/motorcycle taxation and the maximum amount of additional tax for private use of a company car was altered from net catalogue price to CO2 emissions. “According to the most recent figures on the sales of passenger cars in 2012, it appears once again that Dutch people watch their pennies carefully when buying a car. If a comparison is also made between types of owners, it is clear that small and smaller vehicles are being used by both private and business drivers. “The top three cars purchased for private use are led by the Kia Picanto, followed by the Peugeot 107 and the Volkswagen up! For the business consumer, the Renault Megane tops the list, followed by the Volkswagen Polo and the Ford Focus. All three models are well represented in the 14% additional tariff for the private use of a company car (there are four different tariffs depending on CO2 emissions: 0%, 14%, 20% and 25%). From this, it is patently obvious that the effects of the addition (read: one gram of CO2 more or less) have a huge impact on the Dutch market. Compared to a few years ago, the ‘model mix’ has made a clear shift to smaller cars.” Looking at the lease car market, Carel Bal at ALD believes that the Dutch recession has had an impact on the market. In addition he says that, “We notice that in our fleet, the number of returned vehicles is relatively low this year. If we look at cars registered four years ago – the average contract duration is around 45 months, a
IFW July/August 2013
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¡
fleet focus THE NETHERLANDS
Down but not out... ¡
bit longer than average, I think, in Europe, which means that we have relatively low returns. If there are low returns, there are fewer new registrations.” ALD charted a rise in business car registrations of some 0.4% in 2012, but in the first quarter of 2013, the market has declined by some 0.3% compared with the 29.6% decline in the first four months of the year for the passenger car market overall. This suggests that the recession is not yet having a great impact on the business car sector. By comparison the light CV sector is small, with around 850,000 vehicles in the parc, reckons Anne Brons at Alphabet, with a fairly even division between light and larger van models. Niels Beringen says that around 60,000 new light CVs were sold in 2012, with Volkswagen, MercedesBenz, Opel and Renault the most popular brands. ALD data suggests that light CVs take around 21% of the lease market. As discussed already, there are four existing Benefit-in-Kind tax bands applicable to company cars used privately, based on 0%, 14%, 20% and 25% of the car’s value. The 0% band applies to electric vehicles and plug-in hybrids. According to Niels Beringen, an additional 7% tax band is due to be added in 2014. Given the maturity of the leasing market, it is not surprising that Carel Bal suggests that full operational leasing is the most popular leasing method in the Netherlands. His colleague, Lonneke Van Der Horst (pictured), is the marketing and strategy manager for ALD in the Netherlands and she says that full operational leasing takes around 80% of the Dutch car leasing market. Niels Beringen sees a different model at Arval; “Self purchase is the most popular, followed by financial leasing for smaller companies and operational leasing fo larger companies. Sometimes businesses lease via car credit,” he says. Anne Brons also sees purchase as the most favoured method with full operational leasing and short-term rental also popular. Favoured finance methods include banks, car manufacturers, deal-
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ers and businesses using their own capital. Lonneke Van Der Horst says, “We have nearly 8,000 electric vehicles and plug-in hybrids on Dutch roads at the moment, mainly for business use – a number that is quite large compared with other countries.” The figure is helped by the low rate of BiK tax. Looking ahead, Carel Bal at ALD expects to see average annual distances driven falling and a shift in mobility trends. “We see more combinations of methods of transport coming up,” he says, “We see either drivers taking a very small car and having an additional one for special purposes like holidays, or a combination with trains. In other words, the trend is moving from the possession of a car more to the use of a car, which means car sharing becomes more important.” Lonneke Van Der Horst adds, “In future we think that the environment will become even more important, particularly with taxation being based on environmental factors.” Car sharing and flexible mobility are trends that both Arval and Alphabet expect to see develop more too. Like ALD, Alphabet expects to see environmental factors growing in importance as Anne Brons explains, “Electric driving is currently undergoing a spectacular development. More and more car manufacturers
are responding to the increasing demand for environmentally friendly cars by launching their own electric models onto the market. At Alphabet, we are convinced that a certain proportion of Business Mobility can and should be electric. “The use of EVs in fleets is positive for business and for the environment: increased cost-efficiency and an enhanced corporate image go hand-in-hand with a significantly reduced carbon footprint. eMobility implementation makes perfect business sense. With EVs as components of a company fleet, a mix of engine types is created, which makes the fleet more efficient and sustainable. “Many people have been suspicious of eMobility up to now. Is it convenient? Can I drive wherever I want to? We respond that today’s eMobility is cost-effective, convenient and ready to be implemented more extensively in the business world. Consequently, we have developed and just launched AlphaElectric, a Business eMobility solution that makes the integration of EVs into fleets easier and more convenient than ever before. “We believe that eMobility will prove to be a popular solution for urban Business Mobility over the coming years. Most city trips are short, so EVs are ideal. eMobility will also play an important role in car sharing, in particular, in corporate car sharing.”
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JULY/AUGUST 2013
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INTERNATIONAL
FLEETW RLD Redefining Green Motoring AFTER 14 years of intensive research and development, Hyundai has begun delivering the world’s first hydrogen fuel cell electric vehicle to European fleet customers. It’s another step towards ambitious environmental targets.
www.hyundai.com
The future...now NO longer a technology of the future, Hyundai has made the hydrogen fuel cell car a reality today. The first production 15 ix35 FCEVs have been delivered to Copenhagen in Denmark, where they will be used as part of the municipal fleet as the city moves towards a carbon neutral goal in 2025. It’s a landmark moment for Hyundai, which in February became the world’s first manufacturer to build a hydrogen fuel cell electric vehicle on an assembly line. Targeting 95g/km fleet-wide average CO2 emissions targeted by 2020, the ix35 is the halo product for the Blue Drive sub-brand applied to the carmaker’s most efficient models, and the spearhead of its drive towards ever-greener transport.
Real-world feedback BY 2015, a total of 1,000 will have been leased to European fleet customers, providing real-world feedback which will inform the next generation car. In the meantime, refuelling stations will become more readily available, while manufacturing costs will shrink to make it suitable for mass-market adoption. Production will ramp up to 10,000 units, showing the carmaker’s confidence in this innovative new technology.
A commitment to hydrogen power THE ix35 FCEV’s third-generation fuel cell technology is the result of 14 years of intensive research and development, achieving a 55% increase in range, 15% efficiency improvements and an 80% reduction in manufacturing costs compared to its predecessor. Yet this advanced vehicle is manufactured on the same assembly line as the conventionally-powered ix35 in Ulsan, South Korea. Hyundai remains the only manufacturer to do so.
Mainstream appeal HYUNDAI’S efforts to make fuel cells mainstream are already being recognised. At the 2013 European Motor Show in Brussels, the ix35 FCEV won the FuturAuto award in recognition of its world-first production-line assembly. The car was also praised during the 2013 Fleet World Honours, where it received the Technology Award for bringing hydrogen fuel cells a step closer to mass-market adoption.
The ix35 FCEV is a halo for Hyundai’s Blue Drive sub-brand, used by the manufacturer’s most efficient vehicles. Production of the ix35 began in February 2013. Driving range of nearly 600km.
Zero emissions, zero compromise HYDROGEN fuel cells are at the cutting edge of electric motoring. The ix35 is driven using a 136bhp electric motor, but instead of needing lengthy recharge times it can generate its own electricity on board using a chemical reaction similar to reverse electrolysis. Compressed hydrogen is fed into the fuel cell stack where it expands and is separated into positive and negative ions using a catalytic membrane. The negative ions pass through an external circuit, generating electricity which is used to power the motor and charge the car’s lithium ion battery. Reunited with the positive ions and combined with air on the other side, the drivetrain’s only emission is pure water vapour.
This offers the best of all worlds. The ix35 FCEV offers the same responsiveness and silent driving of an electric car, but with refuelling times in minutes rather than the hours taken to recharge a battery. It features the same spacious interior as the conventionally powered ix35, and once its two hydrogen tanks are full, it can travel for 594km before it needs to visit another fuel station. Hydrogen is abundant, and could even be harvested from rainwater using electricity from renewable sources, making this a truly environmentally friendly fuel.
Groundwork for the next generation WITH market-ready technology, Hyundai has been demonstrating the benefits of hydrogen fuel cells via real-world trials for several years. EU policy makers have access to a fleet of demonstrator vehicles in Brussels, and most recently, the ix35 FCEV was one of a fleet of the carmaker’s greenest models to be offered for exclusive test drives in Berlin, driven by senior representatives from 100 European businesses. Municipal fleets in Copenhagen, Denmark and Skåne, Sweden have already signed contracts to lease the vehicle for everyday use, and Hyundai Motor Europe’s president, Mr Byung Kwon Rhim is confident that others will follow: ‘Hyundai Motor is committed to hydrogen as the fuel of the future for Europe,’ he said. ‘Delivering assembly-line produced ix35 Fuel Cell is evidence that we have a realistic solution to the region’s sustainable mobility needs.’ In the meantime, it continues to support projects which are working towards the infrastructure needed to make the technology viable. Hyundai is one of four carmakers to involved with the development of a Nordic hydrogen refueling network, and is part of the UK H2Mobility consortium charged with launching similar stations in the United Kingdom.
Municipal fleets in Copenhagen, Denmark and Skåne, Sweden have already signed contracts to lease the vehicle for everyday use.
For more information on the ix35 FCEV, please contact: Frank Meijer, European Fleet Sales & Remarketing Manager, Hyundai Motor Europe GmbH fmeijer@hyundai-europe.com
www.hyundai.com
“Hyundai Motor is committed to hydrogen as the fuel of the future for Europe.� Mr Byung Kwon Rhim, president, Hyundai Motor Europe.
2013/14 fleet calendar International Fleet World’s guide to what’s happening in the fleet industry in the coming months – when, where and how to find out more info... July 6-7 Seoul Auto Salon 2013, Hall A COEX, Seoul, South Korea (PC,LCV) www.seoulautosalon.com September 4-5 Cenex Low Carbon Vehicle Event, Milbrook Proving Ground, UK (PC, LCV) www.cenex-lcv.co.uk 10-14 Moscow Auto Salon COMTRANS, Russia (LCV, CV) www.oar-info.ru 10-22 Frankfurt International Motor Show, Germany (PC) www.iaa.de October 4-13 Bucharest International Motor Show, Romania (PC, LCV) www.siab.ro 18-27 Johannesburg International Motor Show, South Africa (PC, LCV, CV) www.johannesburgmotorshow.co.za 29 Van Excellence Conference 2013, Dunblane, Scotland (LCV,CV) www.fta.co.uk/events November 2-10 Athens International Motor Show, Greece (PC, LCV) www.seaa.gr 5-9 Dubai International Motor Show, Dubai World Trade Centre, Dubai, UAE (PC) www.dubaimotorshow.com 14-17 COMVEX Istanbul Commercial Vehicles, Buses and Components Expo, Turkey (LCV, CV) www.osd.org.tr 22-1 December Los Angeles Auto Show, USA (PC) www.laautoshow.com 23-1 December 43rd Tokyo Motor Show, Japan (PC, LCV, CV) www.tokyo-motorshow.com 27-2 December Riyadh International Motor Show, Riyadh Exhibition Center, Murooj Area, Olaya St, Riyadh Saudi Arabia (PC), www.recexpo.com January 2014 15-26 North American International Auto Show (NAIAS), Detroit USA (PCV) www.naias.com 17-19 Memphis International Motor Show, Memphis Cook Convention Center, Tennessee, USA (PC, LCV, CV) www.motortrendautoshows.com/memphis February 8-17 Chicago Auto Show (provisional), Chicago, USA (PCV, LCV) www.chicagoautoshow.com March 6-16 Geneva International Motor Show (provisional), Switzerland (PCV) www.salon-auto.com April 8-11 NAFA Institute and Expo, Minneapolis Convention Center, Minneapolis, USA ( (PC, LCV, CV) www.nafa.org/conference 21-29 Beijing Auto Show, Beijing China International Exhibition Center Exhibition Hall, Beijing, China (PC, CV) www.chinaexhibition.com KEY: PC – passenger cars // LCV – light commercial vehicles // CV – commercial vehicles
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management
Local business for local needs To be successful in a range of countries, you must allow for local differences. ALD’s Stephane Renie talks to John Kendall. One of the biggest mistakes any senior executive with a global brief can make is to view all developing markets as being essentially the same. They are not – they are all at different stages in their evolution and have to be tackled accordingly. That is certainly the case so far as fullservice leasing is concerned, says ALD international sales and business development director, Stephane Renie. “If you look at Brazil for example then you soon see that full-service leasing is very well accepted,” he
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says. “We’ve got well over 13,000 cars out on contract there and we’re competing against all the other key international players in the sector, who are also present. “We’re competing against some strong local providers too.” Turkey is in some respects similar to Brazil contends Renie. “We’re enjoying double-digit growth in a market that is very competitive, very price-driven and with some strong local players,” he observes. Contrast this with the situation in China, he says, where full-service packages still do not enjoy the popularity that they should. “We’ve been there since 2006, we're the
only international company of our type that is in place and currently fully operational – our competitors are locally-owned – yet we’ve still only managed to supply 1,300 cars,” he says. “They are usually for top executives and provided with a driver. “It’s all a long way from the situation in Brazil but we have big hopes for China,” he continues. “One day demand will accelerate: and when it does, it will accelerate big-time.” ALD will be in a strong position to benefit when that happens. So will rival Arval. It entered China in 2012 and plans to start delivering its first cars to
One day demand will accelerate: and when it does, it will accelerate big-time. Stephane Renie, ALD international sales and business development director
customers during the course of this year. India presents yet another set of challenges and ALD is active there too. Competition is tough, regulations are quite complex – “that’s one of the main issues” – and it can be a challenge to convince businesses to provide their employees with cars when public transport remains so important, says Renie. “There’s a massive reliance on powered two-wheel transport too,” he observes. A further problem with India for a company like ALD, Renie says, is that when companies do supply a car to an employee they often deliberately set the residual value artificially low to allow the individual concerned to buy it at a knock-down price after a few years. From the staff member’s viewpoint it is a means of obtaining extra remuneration without being landed with a tax bill. “It is not the sort of package we offer though,” says Renie, who occupied senior posts with Renault and media agency Carat France before joining ALD in early 2011. Elsewhere, along with Wheels Inc, its North American partner, ALD has forged a partnership with Australia’s FleetPartners, which has over 60,000 vehicles under management in Australia and New Zealand. “For some of our clients it is important for us to have a worldwide presence and it is a way of enabling us to get into a mature market,” he explains. “It would be difficult for us to enter Australia otherwise.” Opportunities in certain far-flung markets should go some way towards counteracting the sluggish economic growth still bedevilling so much of Europe. However, Europe is by no means a disaster area so far as full-service
leasing is concerned, says Renie. “We’ve seeing strong growth in much of Central and Eastern Europe,” he reports. “Admittedly the corporate sales market in Western Europe isn't looking so good – we won't be seeing double-digit growth in France, Italy and Spain that's for sure – but SMEs offer plenty of potential. “Cash is tight so far as they are concerned in the current climate so they are more willing to consider an operating lease than they might have been in the past.” ALD is increasing its presence in the sector. “We’re also placing more emphasis on white label partnerships with manufacturers,” Renie says. “We’ve now got 85 white label deals worldwide.” Proposals by the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) to change the way in which vehicle leases and rental agreements are treated for accounting purposes could potentially have a massive impact on fullservice/operating leases worldwide. The aim is to put them on the lessee's balance sheet and Renie believes that this is what will eventually occur. “It will be difficult to say what the consequences will be though until we see the final document,” he observes. “It’s an interesting and tricky situation, the devil will be in the detail – will the standard be implemented immediately once agreed in a sort of ‘big bang’ or will it be brought in gradually? And a lot of things may influence what ultimately happens. “However, I do not believe a requirement to put assets acquired under an operating lease on a balance sheet will have a major
impact on the acquisition method companies choose,” he continues. “I think it will trigger a lot of discussions but I certainly do not think we will experience a tsunami of businesses currently using operating leases suddenly changing their minds.” Other considerations will have more influence, he believes. “A lot of them will revolve around whether firms want to use their own cash to acquire vehicles or whether they would rather invest it in their core activities: in research and development for example,” Renie observes. Then there are all the other advantages that operating/full-service leases bring he adds, not the least of them being making it easier for companies to budget ahead and include maintenance costs. Renie goes on to point out that the IASB/FASB proposals will only apply to publicly-quoted companies. “A large percentage of the business we do is with SMEs and with some quite large groups that remain family-owned,” he says. They will not be affected. He doubts that implementation of the proposals will result in public companies that use operating leases switching to finance leases. However some of them may move to outright acquisition he suggests assuming they have the cash - and bring in a fleet management company. “If they do this though they will still have to shoulder the residual value risk,” he points out. That will not be the case if they stick to an operating lease. All in all, he is convinced that fullservice leasing has a positive future. “We grew by more than 4% last year and we believe we can continue this level of expansion,” he states.
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interview
CHARGING AHEAD Do fleets need a harmonised EV charging network? John Kendall asks Rich Byczek from Intertek.
I
ntertek is a technology company originally involved in testing, inspecting and certifying products, but now has involvement in a wide range of industries beyond these areas too. One of these is electric vehicles, batteries and the associated infrastructure. Global standards and harmonisation is one of the barriers to greater acceptance of EVs and we spoke to Rich Byczek (right) from Intertek who has a great deal of experience with these subjects. The US has a 110 volt domestic electrical system and that presents some issues regarding available electrical current for charging, but the EV sector has developed strategies for dealing with this. “There are published standards in the US that cover the charging stations, DC fast chargers, the connectors and the specific safety circuits,” says Mr Byczek. The safety circuit standards have also been harmonised with Canada and Mexico, so there is an agreed standard for these in North America. “We expect in the very near future that the completion of harmonising the other charging station circuits and coupler circuits will become trinational,” says Mr Byczek. There is also an accepted design standard for the the vehicle charging connectors for the AC charging stations. It’s slightly different for the DC fast charging stations, as Mr
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Byczek explains: “We have a network in place of the Japanese standard systems, but these are being augmented with an SAE standard connector that will support DC fast charging. “The expectation is that many of the third party charger manufacturers will be able to modify their systems to either have both connectors or allow for a conversion to the SAE-style connector as those vehicles that support the SAE connector are released. So for North America we feel there is a pretty good offer in place. “In Europe they have adopted the IEC standards for the basic safety and designs. Currently, one of the connectors is common with the SAE standard connector. The nice part about the IEC standards are that they are functionally compatible with the SAE,
although some of the connectors may differ to support the different electrical systems in Europe.” The differences tend to be dealt with by using adapter cables. “So in Europe we can see some pretty good harmonisation, although the safety standards differ a bit from the US, they are fairly similar and the job of adapting is not so great to take a North American charging station and adapt it for Europe,” says Mr Byczek. “On the Asia Pacific side, there’s not so much harmonisation, particularly on the DC fast charge. We have the Japanese standard, which is pretty well adopted in Japan both on the safety and performance side. China is basically working with old safety and design standards and are looking to differentiate themselves from the Japanese standard. So it’s really in Asia that there’s a lack of standardisation in both the design and the safety requirements.” Mr Byczek believes that most commercial fleets will provide their own DC quick charging systems and for these, a harmonised system is probably less important because most charging will probably be carried out at depots. He believes it will be some time before there is widespread adoption of electric vehicles and consequently some time before a charging infrastructure is widespread.
In Europe we can see some pretty good harmonisation, although the safety standards differ a bit from the US. Rich Byczek, Intertek
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fleet profile HONDA
Honda looks to the future Honda has emerged strongly from the recession, but it is still one of the least fleet-focused automakers, writes Mark Bursa.
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onda remains the most independent of all automakers. Over the years it has steered clear of alliances and mergers, instead preferring to plough its own furrow, sticking to the blueprint laid down by the company’s founder, the late Soichiro Honda. This has proved a double-edged sword. While Honda has developed an ef icient and lexible global manufacturing network, it has remained somewhat quirky. A reluctance to develop diesels, for example, has limited Honda’s ability to penetrate European leets over the years, though this is now inally being addressed.
H
SALES PERFORMANCE IN 2012 Honda’s global spread, including a strong presence in North America and throughout Asia, saw it perform strongly in 2012. Honda sold a record 3.817 million vehicles globally last year, up 19% year-onyear as it recovered from the effects of the Japanese Tsunami and Thailand loods of 2011. Sales grew in its largest market, the US, and many Asian markets, though European sales fell 7% thanks to continued tough conditions, and sales in China were adversely affected by anti-Japanese sentiment among Chinese people.
Tour guide Latest Honda Civic Tourer Concept shows the shape of things to come...
HONDA WORLDWIDE CAR SALES 2011-2012 Region
2011
JAPANESE DOMESTIC MARKET
2012
% Change year-on-year
Japan -Cars -Mini-vehicles North America -USA
503,000 378,000 125,000 1,317,000 1,147,000
745,000 423,000 321,000 1,639,000 1,422,000
+48% +12% +157% +24% +24%
South America Europe, CIS, Middle East, Africa -Europe Asia and Oceania China Excluding Japan total Global sales total
116,000
159,000
+38%
233,000 158,000 301,000 624,000
237,000 148,000 432,000 603,000
+2% -7% +43% -3%
2,592,000 3,072,000 3,095,000 3,817,000
+19% +23%
Source: Honda
GLOBAL PRODUCTION IN 2012 Worldwide production in 2012 showed a year-onyear increase for the irst time in two years. Japanese production rose for the irst time since 2010, while production outside set an all-time record for calendar year production.
HONDA: GLOBAL PRODUCTION, 2012 Region
Units
% Change year-on-year
Japan North America Europe China Other Asia Other Rest of world total Total Source: Honda
1,029,313 1,691,088 165,606 617,399 441,215 166,236 3,081,544 4,110,857
+44.8% +53.3% +69.9% -4.5% n/a +73.7% +40.2% +41.3%
Sales in Japan rebounded sharply to 745,165 vehicles, a 48% y-o-y jump, partly a re lection of the effects of 2011’s devastating Tsunami. Honda had three cars in the domestic top 10: Fit (Jazz in Europe) was the third best-selling car of 2012, with sales of 209,281 units, with Japan-market Freed and Step WGN in fourth and ninth respectively with sales of 106,316 and 63,707 units. Sales of mini-vehicles experienced a year-onyear increase for the irst time in six years, since 2006, with the N BOX at number two in the sector, with sales of 211,162 units. Honda has raised its sales target in Japan by 16% for the next iscal year (ending March 2014) upwards by 16% its sales target in Japan for the next iscal year (ending March 2014) to 850,000 vehicles. This could be a cautious forecast – according to the Nikkei newspaper, sales in Japan are expected to jump 22% in the year ending March 2014, boosted by increased demand for mini vehicles. Honda also plans to gain more market share next year with its redesigned Fit subcompact and adding SUV and sedan versions starting next fall, along with a hybrid Accord. Honda expects sales to increase through the year, and plans to sell 350,000 units in the first six months and 500,000 units in the second half of the 2013-14 fiscal period.
HONDA SALES IN JAPAN, 2012 Vehicle type
Units
% Change year-on-year
Passenger cars 423,851 +12.0% Mini-vehicles 321,314 +157.0% Honda Total 745,165 +48.0%
¡
Source: Honda
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fleet profile HONDA
¡ EXPORT STRATEGY
NORTH AMERICA
Exports from Japan continued to decline as Honda’s overseas production facilities continue to serve local markets. Exports continued to decline, following a fall in 2011. Honda continues to reduce its exports from 54% of total Japanese production six years ago to around 20% last year, equivalent to 214,000 units. Honda wants to cut back on the number of cars it exports from Japan in a bid to counter the strength of the Yen which in 2012 added up to US$1,200 to the cost of each car exported. Although the Japanese Government has this year moved to counter this, the trend toward fewer Japanese exports and more local build at transplants will continue. Honda plans to shift all production of USbound Fit (Jazz) hatchbacks from Japan to Mexico in 2014. The company exported 67,000 of the model last year, with 40,000 going to the US. And although Honda is ending UK production of the Jazz from 2014, European versions are unlikely to be sourced from Japan. Some of the previous generation models came from the exportonly joint venture plant in China, while Honda’s new Indian plant is another option.
HONDA EXPORTS FROM JAPAN, 2012 Destination
Units
% Change year-on-year
North America Europe Asia Other Total
132,225 18,415 31,082 32,840 214,562
-18.2% -45.8% +140.4% +23.4% -8.7%
Source: Honda
Economic conditions in Europe remain very challenging but we have been encouraged by good customer demand for our new models. Manabu Nishimae, President, Honda Motor Europe.
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In 1982, Honda became the irst of the Japanese automakers to produce cars in North America when the irst Accord rolled off the assembly line at the Marysville, Ohio, car plant. Since then, Honda has invested around US$12.5bn in its North American manufacturing operations, including more than US$1.2bn in the past two years. The most recent spend was US$200m in new investments in its Russells Point, Ohio, transmission plant and Anna, Ohio, engine plant, which will add 200 new manufacturing jobs. Honda now builds cars, engines and transmissions in North America at seven vehicle plants, three vehicle engine plants and two transmission plants, with capacity of 1.63m vehicles per year. By 2014, when it starts production at its eighth North American car plant, now under construction in Celaya, Mexico, North American capacity will be 1.92m units. A compact SUV to compete with the Nissan Juke, based on the 2013 Detroit Show ‘Urban SUV’ concept, will be produced in Mexico. This will be launched in Japan at the end of 2013, followed by North America and Europe in 2014. Honda also will increase exports from North America. Major components exports will be bolstered by almost 70% in 2013 to assembly plants in South America, Europe and Asia. By the end of 2014, Honda says it will become a net exporter of vehicles from North America – exporting more than it imports – as its plants in the US, Canada and Mexico take on a larger responsibility for the introduction of global models sold in multiple countries. Honda recently began exporting US-made vehicles in Korea after the rising Yen made exports from Japan uncompetitive. It exports to 40 countries and shipments in 2013 are expected to reach around 100,000 Honda and Acura vehicles. While Honda has undoubtedly been successful in the US, its leet penetration is extremely low. The brand remains primarily a retail brand, with just 2% of 2012 sales – approximately 28,000 cars – being sold to leets. This compares poorly with Toyota or Hyundai, which sell around 10% of their total sales to leets, or Nissan, which sells 15% to leets. Ford, leet leader in 2012, sold 30% of its total volume to leets – a total of 674,000 cars.
EUROPEAN RECOVERY IN 2013 Honda sales have rebounded in the irst quarter of 2013, despite the overall fall in European new car registrations. In Q1, the brand registered 40,499 units in Europe – up 16.3% compared to the same period in 2012. This is against an overall fall in new car registrations in the EU of 9.8% compared to the irst three months of 2012. Honda Q1 sales were particularly strong in the UK, its European manufacturing base, with registrations up 23.0%. Honda puts its European recovery down to strong customer demand for recently launched models. Honda Motor Europe President, Manabu Nishimae, said: “Economic conditions in Europe remain very challenging. Nonetheless, we have been encouraged by good customer demand for our new models such as the CR-V and the 1.6-litre diesel i-DTEC Civic.” Honda will continue to strengthen its range in Europe by adding the 1.6-litre i-DTEC engine to the CR-V in autumn 2013. A new Civic Tourer model will join the range in early 2014. Both these new derivatives will be built at the Honda UK Manufacturing (HUM) facility in Swindon, south-west England. Swindon has suffered during the recession – at the height of the inancial crisis in 2009 it stood idle for four months while stocks were balanced. But last year Honda announced a US$400m investment at the plant, aimed at reaching a target volume of 250,000 units annually within three years. Nevertheless, continued uncertainty in European markets has resulted in 800 layoffs at the plant this year. Production in 2012 was double 2011 levels, at 183,000 units, of which 60% was exported to 60 markets worldwide. HUM builds the Civic, and started production of the new CR-V SUV late last year. It is also producing the new low-CO2 1.6-litre diesel engine for Civic and, CR-V models. Currently it builds the Jazz subcompact, but the next-generation model will not be British-built.
Strong demand New Civic i-DTEC has proved popular
EUROPEAN FLEET SALES Honda has traditionally been a retail brand, and its presence in the leet market has been hampered by the lack of a competitive diesel engine. This is about to change with the addition of a new 94g/km CO2, 78mpg 1.6-litre diesel Civic, replacing 2.2-litre versions. The all-new powerplant has been developed exclusively for Europe, and is being built at Swindon. In the UK, for example, Honda’s annual leet sales have fallen from a peak of more than 39,000 in 2008 to less than 18,000 last year. Early indications are that the new engine, together with a more targeted approach with leasing companies and large corporate clients, is having a positive effect. In Q1, Honda’s UK leet sales are up 10% in an overall leet sector that has grown by 3%. A return to pre-recession leet sales levels will take time, however. Corporate sales manager, Lee Wheeler, said a six-year target of growing leet sales to 30,000 was the broad plan. New models, such as the Civic Tourer and a twowheel drive CR-V will help the growth plan.
LONG-TERM GROWTH AMBITIONS Honda has ambitious growth plans that should take its global output to more than 6 million vehicles over the next ive years. Last year Honda President, Takanobu Ito, outlined Honda’s worldwide targets for the iscal year ending March 2017. He said emerging markets would drive growth, including India and China, as Honda plans to strengthen its line-up of cheaper models aimed at these regions. Indeed, Ito said that by 2017, 50% of Honda’s sales were expected to come from emerging markets.
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fleet profile HONDA
¡ CHINA Honda has two large-scale joint ventures with two major Chinese automakers – Dongfeng Motor and Guangzhou Automobile. Despite the recent problems regarding Japanese goods in China, these are both extremely successful and growing rapidly. Despite a second-half decline in Japanese car sales, Dongfeng Honda’s sales rose 10.5% to a record 282,000 units in 2012, compared with an average growth of 6.8% seen in the overall passenger vehicle market. Top-selling model was the new CR-V SUV, of which 169,000 were sold in 2012, 5.6% more than in 2011. Meanwhile, in 2012 sales of the Civic rose 2.1% to 79,700 units, and Dongfeng Honda released its irst MPV model last year, the Elysion. In July 2012, Dongfeng Honda of icially launched operations at its second auto plant, which has a capacity to manufacture 100,000 vehicles a year and has raised overall annual production capacity of the JV to 480,000 units. Meanwhile the Guangzhou-based JV, called Guangqi Honda Automobile (GHAC), has started construction of a third production line and an engine plant within the existing Zengcheng plant site. It is scheduled for operation in 2015 with initial capacity of 120,000 units, expandable to 240,000 units. When the third plant is fully open, GHAC’s overall capacity will be increased from the current 480,000 units to 600,000 units. Honda’s combined capacity in China through the two JVs will reach 1.2m units – it is targeting sales of that level by 2015, double the level achieved in 2011.To achieve this, more than 10 new models will be launched in China between 2013 and 2015, including Hybrid vehicles.
CHINA MARKET PROBLEMS Honda’s attempts to build a strong base in China have taken a blow in recent months after anti-Japanese sentiment lared up over a territorial dispute between the two countries. The dispute centres on a group of tiny islands in the East China Sea – known as Senkaku in Japan and Diaoyu in China. The islands for years have been controlled by Tokyo but are also claimed by Beijing. The islands were privately owned, but were bought by the Japanese government, a move that provoked violent anti-Japanese demonstrations across Mainland China in late 2012. A number of Honda and Toyota dealerships were burnt down and Japanese cars were smashed up in the streets. For Honda, the result was a 35% drop in year-on-year sales in September 2012 to 76,100 units, resulting in production cutbacks at Honda’s Chinese plants, which switched to shorter working hours and slower line speeds. There are indications that the situation has now settled down. While sales still showed a drop in April 2013, the most recent igures, for May 2013, show Honda’s Chinese joint ventures with Dongfeng and Guangzhou sold 54,564 cars in the country during the month, up 4.6% over May 2012.
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Meet Crider Honda’s latest production sedan – Crider – will soon debut in China, positioned between Civic and Accord.
THAILAND Honda has several manufacturing plants in the AsiaPaci ic region, including facilities in Malaysia, Indonesia, Vietnam and the Philippines. These are relatively small-scale operations building, in many cases, cars from CKD kits. However, encouraged by generous government subsidies, Honda Automobile (Thailand) Co (HATC) has invested heavily in Thailand, where it currently manufactures Brio, Amaze, Jazz, City, Civic, Accord and CR-V at a large plant in Ayutthaya Province. This plant was affected by the loods of 2011, and was forced to close until March 2012. It is now operating at its full capacity of 280,000 units, a level it reached at the end of January 2013. To meet rising demand, Honda plans to expand the plant's capacity to 300,000 units in 2014. HATC is now building a second assembly and engine plant with an annual production capacity of 120,000 units. Located in the Prachinburi Province, the new plant is scheduled to become operational in 2015. Construction will begin in July 2013. Honda says Prachinburi will be its most advanced manufacturing facility in the Asia and Oceania region, adopting innovations from Honda’s latest Yorii auto assembly plant in Japan. The plant will primarily focus on building small and sub-compact models, as stipulated by Thailand’s ecocar incentives scheme, which offers incentives to invest in new capacity, including tax-free holidays of up to ive years and duty-free import of manufacturing equipment for companies investing in new facilities to produce a minimum of 100,000 small ‘eco-cars’ cars per year for sale domestically and for export.
Now, a new compact City living Brio range, designed Late last year, Honda Cars India Honda has stopped building specially for emerging (HCI) announced it would spend Civic in India as sales are falling, markets, along with the a further US$600m on its Indian but City is proving popular. Jazz/Fit hatchback will operations over the next 5-10 play a key role in Honda’s years, almost doubling its total Indian comeback. Brio has investments in the country. performed well since its This includes a second manuintroduction in 2012, liftfacturing plant, which is currently ing total sales 35% to being built at Tappugada in 73,300, Honda’s best Rajasthan province at a cost of performance since it US$464m. HCI will start manufacbegan operations in India. turing vehicles at the new plant The carmaker has about before April 2014. 3.9% of the total passenIts car production capacity will ger car market in the country, placing it ifth. be 120,000 units a year, the same as the Greater Noida plant in Brio-platform models will use a new Indian-built, 1.5-litre, the state of Uttar Pradesh, thus doubling Honda’s Indian capacity. diesel, which will be manufactured at its plant in Tapukara, Shigeru Yamazaki, senior vice-president and director, marketing Rajasthan. The diesel engine plant has a capacity of 163,000 and sales of HCI, said the company planned to introduce ive new units. It will initially build engines with about 80% local models by 2015. content, expected to rise to 90%. Honda also plans to export Honda has needed to act in India, where its sales have been engine components from this plant to Europe. declining. Between 2009 and 2011, Honda India saw its market The company plans to widen the Brio and Jazz model. The share decline to 1.6% from 3.2% as sales fell to 47,548 units from Brio platform consists of the Brio, the Amaze sedan and a 62,337. Analysts said Honda did not adapt to fast-changing planned seven-seater MPV, while the Jazz platform supports customer preferences for smaller, more affordable vehicles and the Jazz, the City sedan and a planned compact SUV. diesel engines. Honda is also considering a low-cost budget car for the Honda has stopped building the Civic in India as sales are Indian market, below the Brio compact, which could be based falling, with other Honda models such as the City proving more on one of its Japan-market 660cc Kei cars. This would popular. The Civic’s segment has been in decline, falling 29% in compete with budget models including the Tata Nano, Maruti the 2012-13 iscal year, and Civic sales plunged 70% to just 685 Alto and Hyundai Eon. units during the same period.
INDIA
BRAZIL
Flood warming Despite the floods of 2011, HATC is seeing demand hotting up in Thailand with existing plants at full capacity.
Honda’s existing factory in Sao Paulo opened in 1997, and has a maximum output of 140,000 cars. The plant builds Fit, City and Civic models, and is close to full capacity – and as a result, Honda is evaluating more than a dozen locations in Brazil for a possible second factory in the country. Honda's share of the Brazilian car market – the world’s fourth largest – grew from less than 1% before its local factory opened in 1997 to more than 4% in 2008. But its market share has slipped in recent years as rivals ramp up production. Fit (Jazz) performing well in buoyant Brazil.
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UK registered charity no 1072105. Patron HRH The Princess Royal.
launch report BMW 3 Series GT p46 Skoda Octavia p47 Volkswagen Beetle Cabriolet p48 Scania Streamline p49 Spacious, flexible and good to drive, the Gran Turismo is a better fit for European tastes than its 5 Series equivalent. p46
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launch report
BMW 3 Series Gran Turismo Is BMW’s long wheelbase, fastback 3 Series a niche too far? Alex Grant finds out. SECTOR Compact Executive PRICE €36,150 – €51, 450 FUEL 4.5 – 8.1l/100km CO2 119 – 189g/km Choosing a 3 Series used to be simple: a choice of saloon or Touring, coupe or convertible, all desirable new and used, sharing the same high dynamic abilities and powerful, efficient engines. But the latest F30-generation 3 Series is part of a much larger family. The standard saloon and Touring are still in place, the coupe, convertible and a rumoured rival to the Audi A5 Sportback will be sold as the 4 Series, the X3 SUV is about to gain a sportier X4 sibling, and buyers looking for a bit of extra luxury will be directed towards the 3 Series Gran Turismo. Given that the 5 Series GT hasn’t won over legions of BMW buyers across Europe, you may be wondering where this new car is going. The 3 GT isn’t a direct A5 rival, and unlike the 5 GT it’s not based on a larger platform. Instead, the 3 Series GT is based on the long wheelbase F30 saloon sold in China, but with frameless windows and a higher, steeply raked roofline. A niche too far? Perhaps, but it does have its uses. Back seat passengers are given 5 Series amounts of legroom with noticeably broader shoulder space and individually reclining backrests, and BMW was keen to point out the extra loadlength and shoulder room on offer.
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There’s more space for bulky items in a 3 Series Touring, but the ability to fit longer loads in the GT means it’s potentially more useful in real-world situations. The big difference, though, is the way loads fit in. That long boot hatch means it’s even easier to get boxes into this than it is into a Touring, with which this shares a simple folding mechanism for its three-piece rear bench. There’s even a sculpted compartment under the boot floor, shaped to hold the dismantled pieces of parcel shelf in place. BMW has carried most of the range structure across from the saloon, starting with a base trim level and the option of the Luxury, Sport and Modern Line packages offered on the rest of the 3 Series family, and the M Sport recently added. Across North America, Asia and Europe, the GT is expected to account for around 10% of the 3 Series volume, now the coupe and convertible have been separated, with Germany the exception at 21%. Almost all of the engines are also familiar, with 20i, 28i and 35i petrols and 18d and 20d diesels available from launch, and a four-wheel drive 20i xDrive and the 35d diesel to follow. Predictably, BMW expects the 320d GT to be the big seller in most markets, but there’s no EfficientDynamics
version as in the saloon. As a result, the 318d GT is the most efficient of the range, with CO2 emissions of 119g/km and combined fuel consumption of 4.5l/100km. Although it lacks the punch of the fleetfavourite 20d engine, extra economy doesn’t completely blunt the 318d GT. There’s enough power available to make this a relaxed motorway car, only really let down by a lot of grumble at low speeds, and its 143PS output is delivered progressively through the rev range. Despite a 140kg weight gain and the longer wheelbase, the GT feels almost as agile and fun to drive as the saloon. As good as it is, though, it’s understandably a niche model. Western European used markets are familiar with the Touring, and the price difference between a 320d GT and 520d is small, with the larger car offering slightly better fuel efficiency. It makes this a good car, but a model with limited appeal against the already strong 3 Series range.
verdict Spacious, flexible and good to drive, the Gran Turismo is a better fit for European tastes than its 5 Series equivalent, but high pricing and divisive styling could limit its appeal.
Skoda Octavia Combi The thinking man’s estate car offers flexibility some MPVs can’t match, reckons Alex Grant. SECTOR Lower medium PRICE €16,640 – €30,510 FUEL 3.8 – 6.7l/100km CO2 99 – 156g/km For Skoda, Simply Clever is more than just a slogan – it's the backbone of everything the company does. It means that while the Octavia Combi offers few real surprises, it’s full of neatly executed ideas, which make this an incredibly versatile load carrier. This is a big part of Skoda’s European sales footprint. It’s the biggest seller in its segment across Europe, and in some markets sales are split almost identically between this and the hatchback. Simplicity is even extended to the model range, which in most markets follows the same Active, Ambition and Elegance range structure employed across the Skoda range. Engines comprise three petrols and two diesels, with four-wheel drive available on selected units depending on the market. A Greenline package, which cuts fuel consumption to 3.3l/100km and CO2 to 87g/km on the 1.6 TDI, will be available on all trim levels by the end of the year. Stylistically, it’s crisp, elegant and simple in its design, if a little conservative inside and out. The plastics are soft touch, the doors close with a solid, Germanic thunk and everything is logically laid out. But beneath that simplicity, the Octavia is a brilliant piece of design. The boot
floor covers a compartment big enough to store roof bars, and drops with a tug on a handle at the back to offer extra loading height. Not only does the rear bench fold forward, but the front passenger seat will too, offering up to a 3.0-metre flat load length from tailgate to dashboard. With bag hooks just inside the tailgate, a floor which folds into partitions and optional cargo nets to hold loads in place, the Octavia is almost as flexible inside as you'd expect from an MPV. We tested the car with a near empty boot, but the smaller engines, a 1.2 TSI and 1.6 TDI both with 103bhp, are ample for a car of this size. It’s these which will make up the bulk of sales, in retail and fleet respectively, but the larger 1.4 and 1.8 TSI and 2.0 TDI are better suited to those needing to haul heavier loads. Four-wheel drive is offered on the 2.0 TDI in all European markets, while availability on the 1.6 TDI and 1.8 TSI varies. It’s a clever Haldex system, which only sends power to the rear wheels when required, and while it’s best suited to the 2.0 TDI it doesn’t blunt even the 1.6 TDI’s performance too heavily even on steep inclines. The big sacrifice is in fuel consumption and CO2 emissions, which
rise from 3.7l/100km and 110g/km to 4.9l/100km and 124g/km on the 2.0 TDI. Ride height is identical to the twowheel drive models, which limits this to smooth but loose surfaces, but an outdoor pack and rugged Scout version are both coming soon. Four-wheel drive Octavias also benefit from a multi-link rear suspension setup, compared to the simplistic torsion bar fitted to their two-wheel drive equivalents. Aside from the vRS, which launches this summer with diesel and petrol engines and in both body styles, these are the only Octavias to get the more advanced setup. Ride quality even with the torsion beam is perfectly respectable though. This isn’t a car which makes your hair stand on end or your pulse race – at least not until the vRS arrives this summer. But it’s a model which delights on design and packaging, offering a more appealing workhorse than a C-segment MPV.
verdict With solid build quality, plenty of ingenious storage solutions and ultra-efficient engines, it’s all the car you'll ever need, for a lot less money than you'd think.
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launch report
Volkswagen Beetle Cabriolet It was inevitable, but is the new Beetle Cabriolet worth your attention? John Kendall reports. SECTOR Cabriolet PRICE €21,540 – €32,650 FUEL 4.5 – 7.8l/100km CO2 118 – 180g/km The unveiling of the new Beetle two years ago at the 2011 Shanghai Show presented car buyers with a curious option – the second new car based on the same 1930s design, this one replacing the previous model. In fact it could be argued that the latest new Beetle pushed into new retro design territory since it had also picked up design cues from the most famous Beetleinspired model, the Porsche 911. Happily the new, new Beetle looked a lot better for it. It looks more sporty and more purposeful, adding further appeal. And once it had arrived it was only a matter of time before the cabriolet appeared – making its debut at the Los Angeles Show last November. Lower, longer and wider than its predecessor, it features a larger boot at 225-litres and the rear bench now folds. The design team have moved the windscreen further back compared with the previous cabriolet, which is said to add 12mm more headroom in the back. The lined hood folds down at the touch of a button in 9.5 seconds and can be raised in 11 according to Volkswagen, a job that can be done at speeds up to 50km/h. Retro design is not everyone’s choice, but the new Beetle has found a more distinct character than before, to my eyes, both inside and out. The interior feels more like
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the original Beetle with its flatter dashboard, but at the same time it’s a thoroughly modern design with the same position of controls that you would find in a Beetle or other modern Volkswagen – a pleasing effect. Not surprisingly there is a similar wide choice of engines to that available in the Golf. Petrol options start with a 1.2 TSI 105hp direct injection unit and continue with the 1.4 TSI 160hp engine and the 210hp 2.0-litre TSI petrol engine similar to that in the Golf GTI. CO2 emissions from the 1.2-litre TSI are given as 142g/km, with 158 for the 1.4-litre TSI and 174/180g/km for the 2.0-litre TSI. The higher emissions are for DSG gearbox equipped models. Fleets may be more attracted to the 1.6 and 2.0-litre TDI diesels offering 105hp and 140hp respectively. 1.6-litre diesels are available with BlueMotion Technology, giving CO2 emissions of 118g/km or 119g/km with the optional seven-speed DSG gearbox. CO2 emissions for the 2.0litre diesel range from 134 to 145g/km. Unfortunately the diesel models were not available at the launch event, but the 1.4-litre and 2.0-litre TSI engines have very different and distinct characteristics. The 2.0-litre TSI model comes with air-cooled Beetle levels of noise and, fun though that was – particularly
with the DSG gearbox blipping the throttle between gear changes – I think that could be irritating after a while. The 1.4-litre TSI engine was a good blend of performance and low noise levels – much easier to live with on a longer-term basis. But for emissionsrelated tax conscious markets, the lower CO2 output diesels would be attractive too. I didn’t set the roof against the stopwatch but like most modern convertibles, it moves through the opening and closing process fairly quickly while you hold the open/close button down, beeping to let you know that the process is finished. Once up – necessary during the UK summer showers that prevailed throughout our driving – the lined hood is surprisingly effective at masking noise. With four electrically operated windows and an optional screen set behind the front seats to prevent buffeting, you can have as much wind in your hair as you want, or not. Rear seat passengers would probably be more comfortable if they were small.
verdict Its retro styling won't be to everyone's taste, but the Beetle Cabriolet looks good, drives very well and is assembled with high quality materials.
Scania Streamline Euro6 Scania Streamline introduces reduced fuel consumption and improved aerodynamics. Ian Norwell reports. SECTOR Heavy Truck GCW 40 – 60 tonnes ENGINE 9.0 – 16.4-litres POWER 250 – 730hp
ENGINES IMPROVED If you thought Euro6 was a done deal, think again. Scania has revealed significant upgrades to the Euro6 models it launched two years ago. Scania’s second generation Euro6 450hp and 490hp engines provide a claimed 2% improvement in fuel consumption, and a 13-litre, six-cylinder engine equipped with selective catalytic reduction (SCR) at 410hp, is predicted to be among the most frugal. It will appear in the P, G and R-series Scania trucks with a relatively high AdBlue additive consumption rate of 6%, on the basis that high AdBlue/lower fuel consumption is a cheaper alternative to low AdBlue/higher fuel consumption. A new disengaging air compressor will also improve efficiency, with a claimed 1% fuel consumption benefit alone, and gearbox oil capacity has been reduced to cut churning losses. Silencers are claimed to be the smallest on the market for Euro6, and intake systems are revised to maintain high exhaust temperatures. AdBlue tanks have got creative too. “We found some handy air spaces inside the chassis frame, so we moulded new AdBlue tanks to fit,” says Scania’s Per-Erik Nordström. Engine management software has been further refined and a lighter,
stronger rear axle is installed. 11 new engines come to the P, G and R-series trucks, and the new Streamline brings an aerodynamic makeover as well. But the two most interesting developments for fleet managers are under the skin.
for improvement. A monthly phone call from the coach, who has all the driver’s performance data to hand, could help prevent this loss of effectiveness and it is hoped it will have a long-term effect on driving style.
OPTICRUISE REMOTE ACCESS Two vital elements that workshops and fleet owners need to know about are what faults might be developing on a truck far from home, and how the driver is performing. Scania Communicator has been delivering information to service managers for some time now, but only when back at base. Now they will be able to run a, ‘health check’ on their truck from the office in Sweden, for instance, even if the truck is being driven along the E62, south of Milan. Worn components, or deteriorating oil quality can be flagged up early, meaning that the appropriate parts can be ordered and the technician with the right skills booked. “It will increase uptime and help to avoid delays that cost money,” says Nördstrom. Driver training is known to become less effective after a driver returns to reallife operations. It’s a natural process. But Scania is pioneering one-to-one coaching that uses the driver data to zero in on areas
Scania’s Opticruise AMT (automated manual transmission) is well known and liked among drivers. It now gets the GPS-guided predictive cruise control that surveys the approaching landscape and adjusts gearshifting strategies to match. Dubbed Scania Active Prediction (SAP), this will be standard specification on all Streamline models. Also integrated in the AMT is a choice of three performance modes, from four available. Depending on application, standard, economy (fully integrated with SAP), power and off-road are the options. If required, fleet managers can modify their initial choices later, at their local dealer. Drivers get an easier life too, with upgraded interiors and new seats. The headline on the press release for the new Streamline declares; “Saving up to 8% of fuel.” As ever, the ‘up to’ part is the escape clause, but with drivers and workshops able to focus on details as never before, you just might achieve a good proportion of that.
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fleet in figures
European decline continues It comes as no surprise that the European passenger car market continued its decline in May. Elsewhere the story continues to be far more positive, reports John Kendall.
GM will be branding the Nissan NV200 as a Chevrolet for the US market from 2014.
May brought further decline in European new car sales, a pattern that has become all too familiar in recent years. According to data from LMC Automotive, overall registrations declined by -5.6% across the region for May to 1,022,151, compared with May 2012. For the year to date, registrations in the January – May period 2013 are down -6.3% to 4,952,800 compared with the same period in 2012. Looking at individual markets, LMC’s data shows that among the big European markets, the UK is continuing its positive
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run. As Polk points out in its Europe Early Registration Report for May, the UK car market has grown for 15 consecutive months. In May, LMC shows that the market rose 11.0% compared with May 2012 to 180,111, while for the year to date, the UK market was up 9.3% to 948,666, which sets the market on course for around 2.1m registrations overall in 2013. LMC shows that the UK selling rate – showing units sold per year is up 6.1% year to date (YTD). Looking at the year to date igures for the
other major European markets, Germany slipped back again after posting an increase in April. German registrations were down -8.8% YTD to 1,219,717, although the selling rate is down -3.8% YTD. France is down -11.9% YTD to 739,975 registrations, although a selling rate down -8.9% suggests that the rate of decline may be slowing. Italian registrations are down -11.6% YTD to 606,302 and the selling rate suggests that the 2013 market could finish down on 2012 at around 1,302,410 units.
Registrations in Spain are down -5.8% YTD to 313,572, while LMC shows the selling rate for Spain looking positive at 0.7%. This could see the market finish 2013 up on 2012 by a few thousand units. Other markets that could follow this lead include Portugal, Norway and Denmark, while Belgium could finish 2013 more or less level with 2012 registrations. The Netherlands recorded the largest percentage decline YTD, down -30.6% compared with 2012, reflecting the high levels of debt in the country and consequent collapse in demand. Turning to individual car manufacturers, Volkswagen still leads the Western European car market by a sizeable margin with 547,435 registrations YTD, down -10% on last year, according to Polk. This gives Volkswagen a 171,641-unit advantage over second placed Ford. The top five places are taken up by Renault, Peugeot and Audi respectively. Mercedes-Benz is the only brand to be showing an increase in registrations YTD, with 256,466, up 2.0% on 2012, making the brand the seventh best seller in Europe. Outside Europe, the overall picture is generally bright. LMC Automotive records a global seasonally adjusted annualised sales rate of 82.8m units/year – close to the company’s forecast of 83.4m units for 2013. Scotiabank reports a surge in sales in South America of more than 30% year-on-year, with double digit increases in Asia too. Scotiabank forecasts a total market in China of 11.79m units in 2013, a +10.4% rise on 2012. Since India has slowed down this year, the bank is forecasting a 2.02m car market for India in 2013, matching the figures for 2012. LMC reports a -6% decrease in the annual selling rate for China, down to 22.0m units per year. New model launches following the Shanghai Auto Show helped to boost the market in May. LMC shows the sales rate in May was also falling in Japan, down almost -3% from April to 5.4m units per year. For South Korea, LMC reports a six-month
high for the selling rate, reaching 1.57m units per year in May. LMC says, “While the slowing of the economy is a risk, sales could rise further when labour disputes at Hyundai/Kia are resolved and supply constraints removed.” According to LMC, US light vehicle sales in May 2013 were up 8%, compared with May 2012. This splits down to a 4.6% rise for passenger cars and 12% rise for light trucks. Large pickup trucks enjoyed particularly good sales according to LMC, with May sales up 24% compared with May 2012. Scotiabank records annualised US passenger vehicle sales of 15.3m units in May, compared with 15.1m in the preceding three months. Scotiabank says this reflects the highest consumer confidence since early 2008, as well as easy credit and an improving house market. LMC comments that retail sales led May fleet sales in the US. Polk reports that light vehicle registrations in Brazil continue to grow with YTD sales to the end of May up 8.8% to 1,404,925. April was still a better month with a total of 316,705 registrations, compared with 300,614 in May. Polk says that although tax incentives remain in the Brazilian market, there were two national holidays in May, which helped to slow the market. According to Polk, Fiat led the Brazilian light vehicle market with a 14.1% rise in registrations in May, attributed mainly to fleet sales. Hyundai and Toyota saw the most growth, attributed to small vehicles launched in late 2012. Hyundai launched its HB20 saloon model in May and recorded 4,363 registrations, giving it fifth place in Brazil in May behind the Fiat Siena (10,748 units), Volkswagen Voyage (8,349 units) Chevrolet Classic (7,882 units) and Chevrolet Prisma (5,537 units). Hyundai will start a third shift at its Brazilian plant to satisfy demand. Nissan seems to be suffering in Brazil, with Polk forecasting 2013 sales down 29% for the brand, but starting to recover next year when the company opens a new plant in the country.
Volkswagen still leads the Western European market with 547,435 registrations YTD.
US LIGHT CV SECTOR EXPANDS We reported last month that GM would be branding the Nissan NV 200 as a Chevrolet for the US market from next year. Polk’s Tom Libby looked at the expansion of the US light CV sector in a recent blog posting. He noted that before 2009, there was only one light CV segment in the US market, traditionally dominated by the Ford E-Series. Ford then began importing the European Transit Connect to offer a smaller model and it is this segment that looks set to grow. Besides the Chevrolet-badged Nissan NV200, Nissan is due to begin sales of the NV200 itself this year. Next year Chrysler is set to launch the Ram Promaster City, another European import in the shape of a re-badged Fiat Doblo Cargo. There is also the suggestion that Volkswagen will sell the Caddy in the US. Ford will bring the latest Transit Connect to market in the US next year too. It won’t stop there. In the large van category, Ford will replace the E-Series with the two-tonne Transit in 2014. Ram has already stated its intention to import a re-badged Fiat Ducato from Europe, sold as the Ram Promaster. This is not so much a European invasion of the US light CV sector as manufacturers seeking to maximise profit from products that sell in comparatively small numbers compared with passenger cars. If the costs can be offset against increased global sales, it will not only satisfy a perceived need in the US market, but also push the globalisation of product, with the resulting cost reductions, one step further on.
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SIMPLY CLEVER
The New ŠKODA Octavia Combi. For your fleet with amazing dimensions.
Combined fuel consumption and CO2 emissions for the Octavia Combi model: 3.8–6.1 l/100km, 99–141 g/km
Timeless design, unrivaled interior space, modern engines that are almost exclusively available in Green tec versions and high level of safety supported by advanced driver assistance systems, all that and much more is offered by the New ŠKODA Octavia Combi. A car that will perfectly represent your company while at the same time it will delight you in terms of operational costs and residual value. The new Octavia is available in many motorizations including a two-litre diesel with an engine power of 110 kW. Contact us and we will find the best solution just for you. At the same time we will most gladly introduce you to other ŠKODA car models. www.skoda-auto.com/fleet