International Fleet World June 2012

JUNE 2012

internationalfleetworld.com

INTERNATIONAL

FLEETW RLD Essential Business Information for International Fleet Decision Makers

inside SWOT Volkswagen Up!

Fit for fleet Tips for healthier drivers

Electric future?

Why Renault’s Z.E. electric vehicle range is here to stay...

JUNE 2012

internationalfleetworld.com

INTERNATIONAL

FLEETW RLD Essential Business Information for International Fleet Decision Makers

inside SWOT

INTERNATIONAL

FLEETW RLD

Volkswagen Up!

Fit for fleet Tips for healthier drivers

Electric future?

Why Renault’s Z.E. electric vehicle range is here to stay...

Publisher Ross Durkin ross@fleetworldgroup.co.uk Editor John Kendall john@fleetworldgroup.co.uk Deputy Editor Natalie Wallis natalie@fleetworldgroup.co.uk Motoring Editor Alex Grant alex@fleetworldgroup.co.uk 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 Production Manager Luke Wikner luke@fleetworldgroup.co.uk Designers Tina Ries tina@fleetworldgroup.co.uk Samantha Hargreaves sam@fleetworldgroup.co.uk Internet Editor Luke Durkin durks@fleetworldgroup.co.uk

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

STAG Publications

®

internationalfleetworld.com

VIEWPOINT

CONTENTS

MANAGE RISK...

Since we are focusing on risk management in this issue, it seems appropriate to focus on one of the principal reasons for implementing risk management policies: safety.

The European Union has a plan to cut road deaths by 50% by 2020. The recently issued statistics for road deaths across the EU for 2011 will therefore make disappointing reading. Although road deaths fell by 2% compared with 2010, it represents a significant slowing of the progress made in 2010, when road deaths were reduced by an average of 6%.

More worrying is the increase in road deaths in several EU countries. These are not all countries adversely affected by the European financial crisis. In Germany for instance, provisional figures show that road deaths increased by around 10% and by 18% in Sweden.

These are countries whose motor manufacturers have had a particular emphasis on safety. Estonia had the worst rate of increase with 29% more road deaths last year.

But the figures need some analysis too. Sweden’s increase took the figure for road deaths per million people from 28 to 33, while Poland, which had the worst record, saw deaths rise from 102 to 109. The country with the lowest death rate is the UK where the rate rose from 32 to 33 in 2011.

Some of the accident rate increases are in countries where car sales have been increasing sharply. Clearly there is much to be done and fleet managers can help by implementing policies that will promote safety and reduce risk taking.

04 News Analysis 10 Beijing Motor Show 14 RAI Truck Show 16 EV News Analysis The latest from the EV Fleet World.

20 Risk Management How fit are your drivers and how can their health be improved?

24 Operator Profile ALD INTERNATIONAL.

27 Strategy European residual value confidence.

28 Strategy Report from Iveco’s Defence division in northern Italy.

30 Fleet Focus: GERMANY 33 Remarketing Portuguese cross-border remarketing.

34 Fleet Profile RENAULT

41 Launch Report Chevrolet Volt / Mazda CX-5 / Renault Megane / Ford Ranger.

46 S.W.O.T. Volkswagen Up!

48 Fleet in figures 50 2012/13 Fleet Calendar

10 20 28 46

John Kendall Editor

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

IFW June 2012

03

news analysis

Renault-Nissan signs MoU for AVTOVAZ majority stake The Renault-Nissan Alliance and state corporation Russian Technologies have signed a memorandum of understanding to form a joint venture, which will acquire a 74.5% stake in AVTOVAZ, Russia’s largest carmaker and the manufacturer of Lada.

Renault has had a 25% stake in AVTOVAZ since 2008, and will invest an additional €235.7m into the joint venture, while Nissan will acquire (€353.5m), giving the Alliance a majority stake at 67.13%. The Alliance will perform due diligence over the coming months, and expects to close the transaction by the end of the year, beginning periodic payments in 2014.

Russian Technologies will restructure its outstanding loans with AVTOVAZ, expecting to realise €177,500 from the sale of the manufacturer’s non-core assets, and will extend its interest-free debts beyond their maturity date to give it a strong balance sheet with no liquidity constraints.

Once complete, the joint venture will acquire all Russian investment company Troika Dialog’s stake in AVTOVAZ, giving the Alliance a key foothold in Europe’s fastest-growing economy – expected to grow from 2.65m vehicles last year to 2.9m this year – of which roughly a fifth are Lada models.

Renault and Nissan will work with Lada to update its core model range, launching cars across all three brands. Five of these will be manufactured in AVTOVAZ’s Togliatti plant, which recently gained a new assembly complex to boost capacity by 350,000 vehicles to one million per year.

Speaking at the signing in Paris, Renault-Nissan Alliance chairman and CEO, Carlos Ghosn, said: ”Today’s memorandum is the latest step in an expanding collaboration that helps modernise the leader of Russia’s auto industry. Just as Renault and Nissan will continue their technology transfer to AVTOVAZ plants, our AVTOVAZ colleagues will contribute more and more to the Alliance’s multicultural management bench.”

Ford EcoBoost engine production to triple by 2015 Ford is predicting that over half Ford of Europe cars will be powered by the new EcoBoost petrol engine family in the next three years, tripling production from 141,000 vehicles in 2011 to 480,000 in 2015.

Of the 1.3 million vehicles expected to be fitted with the new engines in the 2012-2015 period, the majority are expected to feature the new 1.0-litre EcoBoost recently introduced in the Focus. The C-MAX and new B-MAX will be offered with this unit later this year, followed by other models, totalling 800,000 units.

The 1.6 EcoBoost is expected to account for 400,000 European Fords, with the UK-manufactured engine accounting for over a million global cars in the same period. ”EcoBoost delivers a combination of fuel efficiency and performance that would have seemed impossible in a petrol engine just a few years ago,” said Barb Samardzich, vice president of product development, Ford of Europe. ”It provides all the performance, refinement and torque customers want with the fuel consumption of smaller engines.”

LeasePlan and Swedbank renew Baltic Agreement Dutch leasing company LeasePlan has renewed its Baltic Alliance Agreement with Swedbank, which has the largest vehicle leasing presence in Estonia, Latvia and Lithuania.

LeasePlan, which operates in 30 global markets, signed the agreement with Baltic Car Lease, now Swedbank, in 2004. Clients needing fleet management and leasing services in the region will continue to be referred to Swedbank, while those outside will be referred to LeasePlan, excluding Swedish customers.

The agreement continues to give LeasePlan broader geographic coverage and scope for international fleet programmes, while also providing information for its international clients using its globally consolidated reporting products.

04

internationalfleetworld.com

for the latest news, visit internationalfleetworld.com

General Motors joins US diesel market General Motors will launch a 2.0-litre diesel version of the Chevrolet Cruze in the United States next year, aiming to net a slice of the growing market opened by the Volkswagen Group, BMW and Mercedes Benz.

It’s the first time an American manufacturer has offered a diesel model in its own market, and could pave the way for Ford and Chrysler, both of whom already have access to the technology, to offer similar models in the United States in the near future. Traditionally a market that has favoured petrol models, diesel sales grew more than 27% last year, with experts predicting it could account for 6% of sales by 2015. ”Small displacement diesel engines could fill an important niche in Chevrolet’s diverse four-cylinder lineup,” said Mike Weidman, Cruze marketing manager. ”We recognize this technology’s considerable appeal, particularly with young male car buyers, and we are ready to win them over with quality, torque and fuel economy.”

Skoda names Rapid

Skoda has unveiled a close-to-production version of the MissionL concept car at Auto China 2012 in Beijing, announcing that it will come to Europe as the Rapid before the end of the year.

The new model uses the new Volkswagen Group MQB platform, and is said to mark the next step in the carmaker’s biggest ever model offensive, with one new vehicle due to be released every six months over the coming years. China and Europe will get market-specific versions, each manufactured locally.

Volkswagen to build Amarok in Europe

PHH Arval expands to Australasia Australian fleet management, leasing and salary packaging solutions company sgfleet has joined the PHH Arval Global Alliance, extending its reach to Australia and New Zealand.

The Alliance, which has operated for 17 years, already covered almost 40 countries and two million vehicles before the latest signing. Members meet twice a year to discuss global fleet solutions, international mobility trends and joint initiatives, such as global reporting.

Robbie Blau, Chief Executive Officer of sgfleet, commented: ”Membership in this prestigious Alliance allows us to offer a global fleet solution to our multi-national clients. In addition, the Alliance gives us access to world class products and strategies that complement our expansive offering to our clients.”

Responding to high global demand, Volkswagen has announced it will extend production of the Amarok pickup to its commercial vehicle plant in Hanover, alongside other European commercial vehicle models and body of the Porsche Panamera.

The manufacturer said the opening of the assembly line at the start of May followed extensive modernisation of the former LT facility and integration of the Amarok into the existing paint and body shops, as well as building the line itself.

Once up to capacity in June, some 185 Amaroks will roll off the Hanover production line each day, totalling 40,000 units annually for European and African customers. Amarok production will continue in the existing Pacheco site in Argentina, with most vehicles destined for Latin America and South America.

IFW June 2012

05

news analysis

Qashqai cashes in – Nissan's medium SUV jumps 21.5% in European Q1 registrations.

European car sales decline 7.5% in Q1 European car sales declined 7.5% in the first three months of 2012, with the large volume reductions in France and Italy balancing out small-scale growth in Germany and the United Kingdom, according to the latest figures from automotive intelligence company JATO Dynamics.

Sales dropped 21.6% in France, from 647,454 in Q1 2011 to 507,841 in the same period of this year, while Italy recorded a fall from 517,391 units to 408,235 representing a 21.1% decline. Of the five biggest European markets, Germany and the United Kingdom were the only two to record increases, at 1.3% and 0.9% respectively, while sales in Spain declined by 3.8%.

Of the top ten car brands, only the German companies showed sales improvements during the first quarter. But there is growth elsewhere, particularly among the value brands where Kia recorded a 26.2% increase to 128,661 units, sister brand Hyundai grew its sales by 12.5% to 114,571 units and Skoda reported its best quarter ever, increasing its sales to 159,400 units, a 9% increase.

Across the five biggest markets, the Volkswagen Group reported the biggest fleet sales, totaling 155,433 units in the “true fleet” sector for the quarter, an increase of 0.1%, while Volkswagen itself was the largest volume seller overall in these countries.

Strongest performing cars included the Nissan Qashqai with a 21.5% uplift, likely to have been helped by the new 119g/km dCi 130 engine introduced at the end of last year, and the all-new Toyota Yaris at 18.1%. The Volkswagen Golf also improved its year-on-year performance in March.

Gareth Hession, vice president, research at JATO said: ”Mainstream brands have been hit hardest by the continued economic uncertainty with French and Italian brands – Renault, Peugeot, Citroën and Fiat – particularly affected as their home markets saw a reduction in sales year–to-date with a combined loss of over 200,000 units.”

06

internationalfleetworld.com

Chrysler drives Fiat Group profit boom Fiat Group has released its first quarter results, with an increase in revenue driven by a strong performance by the Chrysler Group, in which Fiat owns a 58.5% majority share since confirming the Giulietta-based Dodge Dart for production in January.

Chrysler Group’s Q1 net income more than quadrupled, from just over €91m in Q1 2011 to €372m this year, with a 55% increase in operating profit to €589m year on year and a €1.3bn free cash flow. Meanwhile, the group reduced its debt from €2.6bn to €1bn in the same period.

Vehicle shipments increased 25%, from 485,000 to 607,000 while sales increased by a third to 523,000. For the first time in its history, Chrysler was also the market leader in Canada, a market that grew 9% year on year to 371,000 vehicles.

Fiat’s own results were less positive, however. The declining European market resulted in a 5.7% decrease in revenues year on year to €8.7bn while trading profit was break-even, largely due to a weak Italian market, Fiat Group said. Car haulier strikes in Italy had also affected the group’s production and deliveries.

The weak Italian market has also suppressed Fiat’s commercial vehicle sales. Its market share across Europe fell 1.5% year on year, but increased 0.1% without its home market factored in. Outside its mass-market brands, Fiat’s luxury and performance marques increased their revenue 11.5% to €0.7bn, while components remained stable at €2bn.

Sergio Marchionne, chairman and chief executive officer of Chrysler Group LLC, said: ”We continue to deliver on the targets in our five-year plan and are now focused on successfully launching the Dodge Dart, a car that is a true melding of Chrysler’s and Fiat’s engineering and styling strengths.”

for the latest news, visit internationalfleetworld.com

Coca Cola faces $21m damages for ‘vague’ mobile phone policy Coca Cola Refreshments USA Inc is facing a €16.5m ($21m) corporate responsibility challenge after a United States jury ruled that its ‘vague and ambiguous’ mobile phone usage policy was the cause of one of its delivery drivers injuring a pedestrian while taking a call.

Court documents are said to have shown that the company was aware of the distraction risks of using a mobile phone while driving, yet its policies meant employees were freely allowed to operate company vehicles throughout the United States while doing so. Information about the number of deaths and injuries from using mobile phones while driving were also withheld from employees, according to the documents.

Attorney Thomas J. Henry, a spokesperson for one of the two law firms representing the injured party at the court in Corpus Christi, Texas, said this meant Coca Cola was a corporate giant with a huge safety problem.

Bob Hilliard, a lead trial lawyer in the case, commented: ”Today's verdict I hope sends a message to corporate America that you can't have employees on a cell phone and endanger the motoring public. ”We now have a safer community, state, and country and now Coke gets to join, against their will, other Fortune 500 companies who volunteered to have a no cell phone use while operating company vehicles policy.”

Next generation Astra to be built at Ellesmere Port Vauxhall has confirmed it will build the next generation Astra at its Ellesmere Port plant in Cheshire, safeguarding the factory and its workforce until the early 2020s and creating around 700 more jobs.

Production of the new model will begin in early 2015 on a threeshift operation that will build a minimum of 160,000 vehicles per year. Vauxhall said preparatory investment will total £125m for upgrades, as well as recruiting extra staff. Ellesmere Port will be the lead plant of two in Europe building the next Astra.

The announcement follows a new labour agreement, signed in mid May, which comes into force in 2013 and lasts the lifetime of the next Astra. Aimed at improving flexibility and reducing fixed costs, Vauxhall said it will make the facility one of the most competitive in its manufacturing network. This also includes increasing local supply content to at least 25%, improving efficiency and creating further jobs.

Vauxhall Chairman and managing director, Duncan Aldred, commented: ”This is great news for the Ellesmere Port plant, our employees, the local community, our suppliers, the Vauxhall brand and the UK. We have been able to develop a responsible labour agreement that secures the plant’s future. This is assisted by the government‘s industrial strategy; increasing its focus on the manufacturing sector and creating ideal ground for companies to build up long term investments.”

in brief...

Summer range refresh at BMW BMW has announced a range refresh for July, which will add an entry level petrol engine to the 1 Series, xDrive four-wheel drive to the 3 Series Sedan and new equipment for the 6 Series.

The 530d, 330d and X3 xDrive 20d will also be available with optional technology for Euro6 compliance.

Sofico makes fleet information mobile Global fleet software supplier Sofico has launched a smartphone and tablet version of its Miles package, giving fleet managers and drivers remote access to productivity tools, maps, contract terms, accident forms and maintenance alerts on the move.

The company said Miles Mobile is aimed at improving efficiency while reducing paper usage and cost.

Siemens electrifies heavy trucks German electrical component manufacturer Siemens has unveiled an eHighway concept in the United States, which will allow heavy trucks to be driven electrically supplied by overhead lines. These feed electricity to an electric motor in Siemens’s own hybrid drivetrain, allowing them to switch back to using a diesel engine on conventional roads.

Hybrid quattro hints at future drivetrains Audi has debuted another of its new technologies in motorsport. The R18 e-tron quattro Le Mans racer debuts a new version of the carmaker’s four-wheel drive system, using a V6 TDI engine to power the rear wheels and electric motors at the front, and Audi has hinted that it will inform the development of future production models.

IFW June 2012

07

From 109 g/km CO²*– the most efficient E-Class of all time.

The E 300 BlueTEC HYBRID.

A Daimler Brand

At 4.2 litres of diesel per 100 kilometres, the new hybrid offensive from Mercedes-Benz – the E 300 BlueTEC HYBRID – is setting the benchmark when it comes to fuel consumption in the luxury business class vehicle segment. The modular hybrid concept with lithium-ion battery sets new record values in terms of efficiency with economical and comfort-enhancing innovations like the ECO start/stop function. Furthermore, it wins people over with its impressive driving experience and exemplary fuel consumption figures. The new efficiency record holder is also available as an estate. Find out more at www.mercedes-benz.com/fleet

*Fuel consumption urban/extra-urban/combined: 4.3–4.2/4.3–4.2/4.3–4.2 l/100 km, combined CO emissions: 112–109 g/km.

Figures do not relate to the specific emissions or fuel consumption of any individual vehicle, do not form part of any offer and are intended solely to aid comparison between different types of vehicle.

motor show review BEIJING SHOW

China shows its metal The Motor Show of the Year? With 18m cars sold in 2011, China is the largest car market in the world. Despite slower growth in 2011, the new car market still grew by 8%. Predictably, there was plenty to see at the Beijing Show in April and they can’t get enough of SUVs… as John Kendall reports.

Audi RS Q3 Concept A first for Audi at Beijing – the first time that the RS badge has been applied to an SUV, shown here in concept form. Power comes from a 360PS variant of Audi’s five-cylinder 2.5-litre direct injection TFSI petrol engine, driving through a seven-speed automated S-Tronic transmission. The body features familiar RS styling cues with carbonfibre reinforced mouldings used for the parts such as the front spoiler.

BAIC

BMW 3 Series long wheelbase

Beijing Auto displayed a range of models, which in Chinese fashion include origins from a number of European manufacturers, via its various joint ventures. The C70 shown here is a re-working of the previous generation Saab 9-5, while the E-series is based on the smart forfour, despite its similarity to the Mercedes B-Class.

The LWB 3 Series got its world debut at the Beijing Show, before production begins at the new Shenyang plant, under its joint venture with Chinese partner Brilliance. The wheelbase is extended by 11cm to suit Chinese tastes and provide greater rear-seat comfort. Chinese customers will be able to choose between the 335Li, the 328Li, or the 320Li. Partner Brilliance also displayed the Greater China Concept premium saloon and H230 concept, a small saloon powered by 1.3 or 1.5-litre engines.

BYD Qin BYD claims to be the largest supplier of rechargeable batteries worldwide and displayed electric vehicles at the Geneva Show in 2011. The company describes this prototype as a concept plug-in hybrid and it could go into production as early as next year. BYD says the Qin is a ‘dual mode EV’ and describes it as a performance model.

Chery @Ant concept Chery TX was the inevitable SUV concept from Chery, but the @Ant concept was an intriguing take on a commuter vehicle, that can be joined to others travelling in the same direction.

10

internationalfleetworld.com

Citroen Numero 9 concept

Changan One of the top four automotive manufacturers in China, Changan, also known as Chana, built over 1,837,000 complete vehicles in 2011, according to the China Association of Automobile Manufacturers. The company has also established R&D centres in the UK, Italy, the US and Japan. The Raeton has been shown before as the CD101 concept, but as the Raeton is in production ready form. It is pitching at the premium sector. Also making its debut was the CS35, a small crossover with a 1.6-litre engine, shown as the S101 concept at Frankfurt last year.

Denza NEV Concept Denza, a joint venture between Daimler and BYD, made its show debut at Beijing with the NEV (New Energy Vehicle) concept. The battery electric vehicle has been designed in China for the Chinese market. The rear seat area has been created to feel like a lounge, with reclining seats and ambient lighting.

Externally the chrome finish can be illuminated. A production model is planned for 2013.

Unveiled at Beijing to mark the launch of the DS line in China this year, the concept gives a hint at the styling cues of the next three DS models – a C-segment premium saloon, an SUV and a D-segment executive saloon, says Citroen. The company describes Numero 9 as, “A new take on the shooting brake”.

It comes with plug-in hybrid power, boasting CO 2 emissions of 39g/km and a 50km electric range.

Fiat Viaggio Designed in Turin, based on the Fiat CUSW (Compact, US Wide) architecture, which spawned the new Dodge Dart, CUSW was in turn derived from the Alfa Romeo Giulietta architecture.

The result is a C-segment four-door, five-seat saloon, which will be built under a GAC-Fiat joint venture in China. It will be on sale in China from Q3 2012.

Ford EcoSport Ford showed off the production version of its small EcoSport SUV, first seen at the Delhi Motor Show earlier this year. The new model will be built in China at Ford's factory in Chongqing. The company's Asia Pacific chief Joe Hinrichs added that it would be sold worldwide.

“We have high expectations for this model, it's an SUV that is the right size for cities and those who will buy it we see as urban adventurers.”

Hinrichs said, “we are adding around 3,000 more jobs in the region over the next three years and China is now our largest manufacturing base outside of Detroit.” The company also unveiled its new Explorer and the Kuga at the Beijing show.

IFW June 2012

11

motor show review BEIJING SHOW

Honda Concept S Honda unveiled the Concept C and Concept S and said that this was the start of a new approach that did not rely on growth in the US. The company’s sales in China slipped last year and both these models have been developed with Honda's Chinese partners. The Concept C is a budget small car, and likely to remain a model just for China. But the larger Concept S, developed in partnership with Dongfeng Motor, is likely to go global.

“In the past, that kind of thing was always done in Japan,” chief executive Takanobu Ito told reporters at the show. “This will be a global car, but it starts in China. We need to move further away from a US-centred global growth.” He said that Honda needed to catch up with its rivals in China by offering more products.

Jaguar XJ Ultimate

Lamborghini Urus

China will be a new market for Jaguar Land Rover once the company's joint venture with Chinese partner Chery Automobile starts up. Insiders at the Beijing motor show said the venture will not start making vehicles for at least three years, but it will be a valuable asset for JLR in the surging Chinese market.

The company has a 50% stake in the JV, which is expected to make Jaguar and Land Rover models.

At the Geneva Show we saw Bentley joining in and at the Beijing show Lamborghini jumped on the SUV bandwagon, mind you it does have 600PS under the bonnet. The Urus is purely a four-seater concept at the moment. Despite the 600hp, the company said the car would have lower CO2 emissions than its rivals, while it will also be lighter.

Production is a distinct possibility with the company targeting the USA, Middle East, Russia, China, Germany and the UK. Lamborghini boss Stephan Winkelmann said: “SUVs make up one of the most successful market segments worldwide, and the Urus is the most extreme interpretation of the SUV idea: it is the Lamborghini of the SUVs.”

Mercedes Concept Style Coupe The Concept Coupe Style was given its official unveiling in Beijing having been seen in Los Angeles the week before.

Under the sleek four-door coupe body, power comes from a 213PS four-cylinder turbocharged petrol engine driving through a four-wheel-drive system. Mercedes says the concept is almost production ready and it is expected to go on sale next year, possibly as the CLA.

12

internationalfleetworld.com

MG Icon Concept The MG Icon is the famous British brand's current thinking on direction and styling said design chief, Tony Williams. The car is under 4m long and based around the MG3's B platform.

According to Williams, “We will wait and see what the reaction to Icon is here at the show and in other places we'll take it to. It is purely a concept at the moment, a decision on production is some way down the line but what I can say is that some aspects of the design will find their way into future products. One thing for certain is that you will see more different types of MG in the future.”

Peugeot Urban Crossover Concept SUVs and crossovers have really taken hold in the Chinese car market and Peugeot took the opportunity at the Beijing show to take the wraps off the Urban Crossover Concept. It has elements of the HR1 concept first seen at the Paris motor show two years ago and, according to Peugeot has the elegance and refinement of a saloon with the “cheekiness and mischievousness” of an SUV. It's a real global design as well, coming out of the company's styling studios in China, Brazil and France. A bit like Ford's EcoSport, it's an SUV for use in cities. The “double-bubble” roof design and spoiler have been inspired by the RCZ coupé, said Peugeot, which is aiming the car at ‘young city dwellers’.

Roewe E50 EV Roewe showed the E50 EV at Beijing ahead of its launch in China in October. The model has been seen as a concept before as the E1. Press reports suggest that only 1,000 E50 models will be manufactured in 2012. The compact hatchback is said to be Roewe’s irst EV. An MG variant is also expected.

Renault Talisman Renault unveiled the Talisman, a version of the SM7 made by its South Korean af iliate Samsung. This model will only be available in China with a choice of two engines, a 2.5 litre V6 unit and 3.5 litre V6 mated to either a CVT or a sixspeed automatic transmission.

SEAT Ibiza Cupra Concept According to SEAT, the Ibiza Cupra Concept is a close to production-ready. It was given its world debut in Beijing, ahead of the market launch in Europe towards the end of 2012. The turbocharged and supercharged 1.4-litre TSI engine produces 180PS and drives through a seven-speed DSG automated transmission. The high-performance hatchback follows in the footsteps of previous Ibiza Cupra models. “We are presenting the Ibiza Cupra Concept at the Beijing Motor Show because this compact athlete will be an important element in the development of our brand in this key market”, commented SEAT President James Muir.

Skoda MissionL Concept Beijing gave consumers another sight of the Rapid – a compact hatchback said to fit between the Fabia and Octavia, as the MissionL concept, first seen at Frankfurt last year. The Rapid will go on sale in Europe later this year, with a Chinese version due to make its debut in 2013. “As part of its growth strategy, Skoda has initiated the largest model offensive in its corporate history and will bring a new vehicle to market every six months on average in the years ahead,” Skoda CEO Winfried Vahland said at the brand's Beijing press conference.

Shanghai VW Lavida Over 700,000 Lavida saloons have been sold in China since the original model was launched in June 2008, which according to VW makes it one of the most successful cars in Chinese automotive history. The new model will not be available in Europe. Standard equipment includes ABS brakes with ESP and front airbags.

IFW June 2012

13

cv show review RAI SHOW

New technologies displayed at the RAI Show It’s not the show it used to be, but the Amsterdam CV Show had a number of new products for visitors to see, says Steve Banner.

Fitting a solar panel to the roof of a temperature-controlled van and using it to power the refrigeration unit is a viable means of making your vehicle more environmentally-friendly according to Alex Hup, sales manager at Carrosseriefabriek Harderwijk of the Netherlands. It exhibited an insulated VW Transporter with just such a system at the Amsterdam RAI show.

The panel is used to charge lead acid batteries, which in turn drive the refrigeration compressor. If they become discharged, the alternator takes over the task until they are recharged.

“The beauty of the panels is that they work no matter whether the engine is running or not,” said Hup. All they need is light, he adds: strong sunshine is a bonus, but not essential.

They reduce the power drain on the vehicle’s electrical system too.

A prototype, the Transporter on display will only handle chilled loads – not fullyfrozen – at temperatures down to 0

degrees C, and Hup admits that as things stand it would cost €7,000 more than a conventional refrigerated van. “We should be able to reduce this to more like €3,000 to €4,000 euros over the next six months though,” he promised.

The weight of the batteries also means that the vehicle suffers a 100kg weight penalty when compared with mainstream designs.

Another interesting conversion was on display on the Opel stand:

Fuso is part of the Daimler group and Canters are sold through the MercedesBenz commercial vehicle network in the UK. As well as a version of the latest Daily that will run on compressed natural gas (CNG), Iveco was exhibiting a lightweight Daily 35C21 articulated tractor unit with a small fifth wheel coupling and a 9.6-tonne gross train weight. Such combinations have been used to haul semi-trailers carrying bulky yet lightweight items ranging from foam stuffing for furniture to kayaks, but cannot be driven using an EU car driver’s licence.

Renault reckons the new Energy Stop & Start system unveiled in the Kangoo cuts its CO2 emissions to 115g/km and its permile running cost by 15%. Mercedes of course points out that its battery-powered E-CELL Vito produces no emissions at all, and was exhibiting it as a sevenseater people carrier alongside a Sprinter with a 7G-Tronic seven-speed automatic gearbox.

Van den Born’s Opel Vivaro platform cab refuse collection tipper

Carrosseriefabriek Harderwijk’s insulated VW Transporter

14

internationalfleetworld.com

It was a Vivaro platform cab transformed into a tipper with a refuse collection body by Dutch converter Van den Born.

Designed for use in narrow city streets that would be barred to a bigger vehicle, it offers a 500kg payload capacity.

It is a vehicle likely to appeal to local authorities, and so is Fuso’s 4x4 Canter.

Making its debut, the high-rise off-roading 6.5-tonner is fitted with selectable four-wheel-drive and comes with a standard rear diff lock.

6.5t Fuso 4x4 Canter, with high-rise off-road ability

ENGINEERS AND DESIGNERS FOUGHT ABOUT THIS CAR. BOTH WON.

» 7-year warranty* » From 3.7 l/100 km » From 97 g CO2/km

THE NEW KIA CEE’D. EXCITEMENT. QUALITY. FLEET-ABILITY. There are some occasions when you have to choose between beauty and brains. This isn’t one of them. Inside this attractive, well-engineered packaging you’ll find our new Kia cee’d. The perfect role model for our fleet range: designed, engineered and built in Europe, dynamic but with low consumption and low CO2 emissions, high residual value, with innovative technology backed up by a unique 7-year manufacturer warranty. It seems you can choose to have it all. Time to meet a different kind of fleet: www.kia.eu

www.kia.eu *7-year / 150,000 km Kia warranty for all Kia models with initial registration after 01/01/2010; valid in all EU member states (incl. Norway, Switzerland and Iceland) subject to local terms and conditions.

Fuel consumption (l / 100km) / CO2 (g / km): urban from: 4.1 / 109 to 7.2 / 189, extra-urban from: 3.5 / 91 to 4.5 / 118, combined from: 3.7 / 97 to 6.0 / 139.

EV news analysis

New EV charging standard introduced from 2014 A team of seven carmakers from the United States and Germany have unveiled a new fast-charging technology, which will allow compatible vehicles to be recharged in less than 20 minutes.

The Combined Charging System project is supported

by Audi, BMW, Daimler, Ford, General Motors, Porsche and Volkswagen, who have all agreed on a single-port recharging technology which could be used in Europe and the United States.

It uses one-phased AC-charging, fast three-phase AC-charging, DC-charging for home use and ultra-fast DC-charging for public stations, meaning future vehicles will be able to use almost any outlet. The project is also aimed at rolling out a more affordable public recharging infrastructure.

Industry bodies the International Society of Automotive Engineers (SAE) and ACEA have both approved the technology for new vehicles. Commercially available charging stations with the technology will be available this year, with compatible vehicles to follow in 2013.

Single port, fast-charging technology

First wind-powered hydrogen station opens in Berlin

Opel and its HydroGen4 fuel cell project partners Total and Enertrag have opened the first wind-powered hydrogen refuelling station in Berlin.

Both partners have been using Opel’s Chevrolet Equinoxbased HydroGen4 SUV in Berlin as part of an ongoing trial.

Enertrag’s hydrogen station in the city’s Prenzlau district can now supply green hydrogen gas to Total’s refilling stations, for use in the government-supported Clean Energy Partnership.

Opel said the project marked the next step in the development of a refuelling infrastructure for hydrogen fuel cell vehicles. Although hydrogen itself is abundant, the process of mass-producing it is energy-intensive, which undoes some of the carbon reduction from a fuel cell vehicle.

Hydrogen fuel cell vehicles are driven by an electric motor and make their own electricity using an electro-chemical reaction, offering conventional refuelling times with no CO2 emissions at point of use and only water vapour coming out of the tailpipe.

Hydrogen and EVs not mainstream before 2025 – Shell Road transport is likely to remain dependent on oil-based fuels for the next 20 years, with electromobility and hydrogen unlikely to become mainstream until before 2025, according to Shell.

Speaking at a recent All Party Parliamentary Discussion on Peak Oil and Gas in London, the group’s general manager for alternative energy and fuel development, Arthur Reijnhart, said a more diverse selection of fuels would be vital for counteracting the growth in energy demands by 2050, caused by emerging economies and population growth. Some 96% of all transport is driven by oil-based fuels. ”It’s not easy to switch,” he said. ”Fuels need to compete on the availability, affordability and environmental impact, and Shell is not willing to be sacrificing any of these. It’s too early to say if there’s a fuel that does it all, until then there’ll be a combination.”

The group is already investing in biofuels, particularly sugar cane ethanol in Brazil, while ‘second generation’ biofuels from woodchips and bio-waste are predicted to represent ‘percentages of its oil business’ in the future.

16

internationalfleetworld.com

Reijnhart said cost, range and technology was a challenge to electric vehicles, but that they could be suitable for urban transport. Shell believes plug-in hybrids will offer broader appeal, with hydrogen promising as a future fuel due to its abundance and zero tailpipe CO 2 emissions. But this isn’t expected to be a money-making industry until 2025, reaching maturity in 2035, and is reliant on greener hydrogen production before it offers significant CO2 reductions. ”The problem is commercial, the tremendous up-front cost of the change,” Reijnhart explained. ”It needs to compete and to reach the scale where the selling of hydrogen is a self-sufficient proposition. But the market needs to cross that bridge, then the building blocks are in place to decarbonise hydrogen production.” ”The future isn’t fuelling everything from small cars to planes with oil-based fuels. We see liquid hydrocarbons as the majority of the mix, for the next two decades. The more power required the more you’re tied to liquids, including biofuels. The light duty sector will make the biggest changes.”

for the latest news, visit internationalfleetworld.com or subscribe to EV Fleet World at fleetworldsubscriptions.co.uk

Audi opens battery centre in Germany Audi has opened its high voltage battery project house in Germany, which will develop battery units for the carmaker’s hybrid and electric models, planned to fill every market segment by 2020.

The 3,500m2 facility took two years to complete and is based in Gaimersheim, two kilometres from Audi’s Ingolstadt plant. It employs around 100 newly-hired electronics experts, and is home to Audi’s electromobility partners including Panasonic, aiming to promote collaboration between the parties involved.

Michael Dick, member of the board of management for technical development, said: ”Here we are building up important development and manufacturing expertise for high-voltage batteries with a view to future model series. At the same time, we are ensuring that they meet Audi’s exacting quality requirements.”

Audi began its three-year state-funded EV research project last December, with €13bn earmarked for property, plant and equipment ready for hybrid and electric vehicle development.

Toyota and Gamesa investigate Spanish EV infrastructure Spanish wind farm manufacturer Gamesa has added a Toyota Prius Plug-in hybrid to its fleet for six months, as part of a partnership with the carmaker to gather information to help the mass-market adoption of plug-in vehicles in Spain.

During the trial, the company will identify limiting factors and charging requirements in urban locations and at one of its wind farms, with data to be fed back to Toyota. The carmaker will provide this to the Movele initiative, co-ordinated by the Spanish Institute for Energy Diversification and Savings (IDEA), which will use it to show the financial viability, energy savings and technical aspects of plug-in vehicles.

Gamesa began building its own charging points earlier this year at its electrical components factory in Valencia, and has installed them at the factory and its headquarters in Madrid. The company is also working on an energy management programme to avoid grid overload from EV charging.

in brief...

Nissan LEAF a best-seller in Norway Nissan has delivered its 1,000th LEAF in Norway, six months after its sales launch. It makes the model the country’s second most popular Nissan, and the ninth biggest selling passenger car in February at 2% of the total market. The carmaker said it showed how comprehensive incentives for owners could boost sales.

Electric rental fleet to launch in Berlin Daimler’s car2go short-term rental service launched in Berlin in April, with the launch fleet of 1,000 smart fortwo city cars set to be replaced with electric versions as the city’s infrastructure develops. Trials of the fortwo electric drive will begin before the end of the year, priced the same as the petrol model.

Hertz announces Oxford EV car club Global car sharing club Hertz on Demand has signed a Memorandum of Understanding with charging point manufacturer Chargemaster to establish an electric vehicle carsharing scheme in Oxford, UK. The service will launch with ten LEAFs, with charging provided by Chargemaster’s POLAR network.

EXP 9F could be Bentley’s first hybrid

Toyota announces POD Point partnership across EU

Bentley has hinted at engine options for a production version of the EXP 9F concept car at the Auto China 2012 show in Beijing, including a plug-in hybrid with 130g/km CO2 emissions.

A talking point at the Geneva Auto Salon in March, it appeared in Beijing with a 600bhp twin-turbo W12 petrol engine. The plug-in hybrid version would be a first for Bentley, featuring a V6 petrol engine and electric motor to offer sub-five-second 62mph sprint and 30-mile electric range.

Toyota has selected London-based EV charging point manufacturer POD Point as its approved partner to install units at its dealerships throughout the European Union as it launches the Prius Plug-in. POD Point already exports to countries including Spain, the Netherlands, Ireland, Norway, Denmark and large volumes in the United States.

IFW June 2012

17

New Hyundai i20. Think Again.

With automatic light and rain sensors, 5 Year Triple Care with unlimited mileage warranty, rear view camera and keyless entry, the New Hyundai i20 is the perfect combination of senses to make your life easier. See for yourself, visit www.hyundai-fleet.eu or your local dealer and think again.

Fuel consumption in MPG (l/100km) for New i20 range: Urban 34.9 - 78.5 (8.1- 3.6), Extra Urban 58.9 - 94.2 (4.8 - 3.0), Combined 47.1- 88.3 (6.0 - 3.2), CO2 Emissions 140 - 84g/km.

risk management

FITNESS TO DRIVE How your employees can live more healthily, and be safer behind the wheel Driving can be stressful, tiring, and demanding on the mind and body, yet little thought is given to the physical wellbeing of employees when they are behind the wheel. Alex Grant investigates the biggest health problems associated with at-work driving, and the cures.

At-work drivers are almost 50% more at risk of accidents than other motorists, even with higher mileage taken into account. They account for a third of all collisions, or 1,000 deaths and 13,000 serious injuries each year in the UK and, according to the Royal Society for the Prevention of Accidents, many of these could be avoided by explaining the benefits of a healthier lifestyle more clearly.

We’ve looked at some of the key health areas affected by driving and how motorists can improve their mind and body, to be fitter and safer behind the wheel.

The problem of a tired mind on drivers SYMPTOMS: Although alcohol is commonly perceived to be the biggest cause of accidents, sleep deprivation can actually impair driving more than being over the legal blood/alcohol limit. A lack of deep sleep causes the brain to process information more slowly, delaying reaction times and reducing the driver’s ability to concentrate or make decisions.

EFFECTS: A recent study by Loughborough University showed fatigue was a contributory factor in 20% of fatal or serious motorway crashes. Tired drivers are also 50% more likely to be seriously injured or killed than those who are properly rested, because in many cases they don’t make an attempt to avoid the crash. Yet research by the Department for Transport showed over half of respondents had driven while they were tired, adding that the igure was limited because it only covered those who admitted to it.

CURE: Short naps of up to 15 minutes are the best way to boost alertness. Caffeinated drinks can be helpful too, but research in America has shown the effects are short-lived, with slow reaction times returning within an hour. Naps and caffeine should be seen as emergency solutions, though. The best cure is to plan drivers’ duty cycles to avoid extended working hours.

CAFFEINE IS A ONE-HIT FIX, BUT NOT A CURE Neil Greig, director of policy and research at the Institute of Advanced Motorists, says: ‘Energy drinks are good as a quick fix, but they’re no substitute for regular breaks. Having a high-caffeine drink is a one-off hit – you can’t repeat it, as this type of drink does not produce the same effect in a couple of hours’ time.’

20

internationalfleetworld.com

Big meals burn energy and cause tiredness SYMPTOMS: During digestion, the brain diverts blood to the gut to absorb nutrients into the bloodstream, causing a drop in oxygen to the brain itself. The larger the meal, the more energy is required to digest it and the more drivers will feel drowsy as a result.

Carbohydrate-rich meals, such as chips or pasta, can also be problematic. The high glucose content of these foods causes the body to release insulin to speed up absorption into the body, but causes a rise in the levels of a chemical called tryptophan in the brain. When it reaches the brain, tryptophan is converted to melatonin, which is a hormone that promotes sleep.

EFFECTS: The period between 2pm and 4pm is the second most common time for fatigue-related accidents, and these are often caused by the after-effects of eating a large meal.

CURE: Drivers should avoid stodgy lunchtime meals in favour of lighter snacks and salads to kerb early-afternoon drowsiness and stay hydrated to maintain concentration – the brain relies on water to function properly. Taking a break after a large meal can also reduce the risks.

TAKE A PACKED LUNCH RATHER THAN STOCK UP AT SERVICES Jill Joyce, senior policy and research adviser at the Institution of Occupational Safety and Health (IOSH), recommends taking sandwiches, bottled water and a flask of coffee or tea for long trips, avoiding the temptation to rely on whatever fat and sugar-rich snacks are available at motorway services and fuel stations en route.

Sleep apnoea is a breathing disorder that causes fatigue during the day

A lack of physical fitness in your employees EFFECTS: There are few studies into the effects of physical itness on drivers’ ability to be safe on the road. However, Kevin Clinton, head of road safety at RoSPA in the UK, says there’s a proven link between obesity and sleep apnoea, a breathing disorder which can cause problems with sleeping, in turn leading to fatigue during the day. Drivers with sleeping disorders are between six and 15 times more likely to have an accident while driving, than those without.

Long-distance drivers are also exposed to risks from deep vein thrombosis – blood clots formed during long periods of inactivity.

Although usually only discussed in relation to long-haul lights, a 2002 study showed 70% of DVT-prone travellers had recently travelled long distances in a car, exposing them to the same risks.

CURE: Regular exercise will improve physical itness, and there are established treatments in place for those suffering from sleep apnoea. Encourage regular long-distance drivers to be checked for susceptibility to DVT, and enforce frequent breaks to reduce the risk.

IFW June 2012

21

risk management

Stress causes bad decisions to be made

Heart rate is increased when under stress, due to the release of adrenalin

SYMPTOMS: The feeling is caused by the ‘ ight or light’ mechanism that prepares us for physical challenges. Under pressure, this causes the brain to release adrenaline, a stimulant, which increases heart rate, tenses the muscles and changes the way we process information.

EFFECTS: While this allows us to make decisions more quickly, which is ideal for responding to immediate threats, stress usually means they’re not considered fully, which can be dangerous when driving a car. Drivers under stress make decisions because they are thinking instinctively and short term – a sort of ‘tunnel vision’ – and are not planning and assessing their actions over the longer term.

Prolonged periods of stress are also very tiring for the body, and over time leads to the same slower brain functions as fatigue.

CURE: Stress is caused by not feeling in control, so preparation for every journey can help at least take that element of uncertainty out of the equation. Neil Greig says: ‘Knowing what to expect ahead in terms of delays, giving yourself plenty of time for the journey, having fuel in the car, knowing the car is in good shape mechanically and knowing your route etcetera will all help reduce worry.’

Music has also been shown to calm drivers. Softer tunes can slow brainwaves, which in turn lead to a reduction in the heightened heart rate and breathing caused by stress.

WORK IS STRESSFUL, AND DRIVING DOESN’T HELP RoSPA says 85% of motorists find driving itself stressful, regardless of other pressures, so ensuring drivers are fully prepared, trained and relaxed for the journey is vital.

At the very least, a decent demo session should be undertaken, especially for long-distance drivers before they commit to a car for three or four years.

The problem of poor posture on the body EFFECTS: Long periods of being sat in badly adjusted seats puts stress on muscles and joints, leading to long-term neck, arm, leg and back pain.

CURE: Many companies give advice to avoid poor posture while using computers, heavy machinery or other of ice equipment. But it’s just as important to ensure drivers adjust their driving position appropriately too: RoSPA advises leets to consider work vehicles in the same bracket as other heavy machinery. At the very least, a decent demo session should be undertaken, especially for long distance drivers before they commit to a car for three or four years.

Most cars now offer heavily adjustable seats, rake and reach adjustment for steering wheels and headrests which can be ixed to prevent whiplash in an accident – if they don’t, should they be on the choice list?

22

internationalfleetworld.com

Can your drivers see well enough?

SYMPTOMS: Drivers’ eyesight can deteriorate over time, and without regular eye tests this can go unnoticed.

The DVLA says drivers must be able to read a newstyle number plate font from 20 metres away, but in some cases drivers won’t have reassessed this more recently than their test, and complying with this doesn’t necessarily indicate adequate vision for driving.

EFFECTS: Awareness is equally low from leet operators. Specsavers Corporate Eyecare recently studied leet managers from 164 companies, representing a combined 414,000 drivers, and found two-thirds didn’t know the legal requirements for vision. Only 38% of those studied said they tested drivers’ eyesight before they drove for work.

CURE: Ultimately it’s the employee’s responsibility to make sure their eyesight is up to scratch, but recent legislation such as the Corporate Manslaughter Act could change this if it’s tested in court. Encouraging regular eye tests for professional or long-distance drivers could avoid problems later down the line.

Alcohol can remain in the bloodstream for many hours after drinking, and food only delays, not reduces, the effect.

Alcohol, now, and the morning after EFFECTS: Even small amounts of alcohol impair concentration and judgement, and can exacerbate existing drowsiness, and 5% of all fatal crashes, 9,700 per year, are attributed to being over the legal limit.The problems are ongoing the morning after. Alcohol is dif icult to metabolise, causes a reduction in deep sleep, and leads to a loss of water and nutrients in the bloodstream.

CURE: The easiest solution is not to drink over lunch, or avoid driving afterwards, rather than guessing. Alcohol limits are confusing, and a recent government household study showed 77% of respondents don’t know what they are. And personal abilities to deal with alcohol vary depending on factors including body weight and age, and aren’t affected by eating a big meal – food only delays the absorption into the bloodstream, delaying the associated problems.

In the UK, RoSPA’s Kevin Clinton advises: ‘It is impossible to accurately calculate how much alcohol is in your body, and whether you are above or below the drink-drive limit. Every year, about 90,000 people are convicted of drinking and driving, and face a driving ban of at least 12 months, a large ine and possible imprisonment. Many drink drivers are caught the morning after they have been drinking.’

PEOPLE KNOW ALCOHOL AFFECTS DRIVING, BUT STILL DRINK UK Government research found two-thirds of drivers have driven after one or two drinks, for example over lunch, even though three-quarters believed you should not drink at all before driving.

IFW June 2012

23

operator profile ALD International

ALD plans global growth The economic crisis has not slowed growth for ALD, in fact the company has recorded compound growth of 9% per year for the past nine years. Tim Kendall reports.

It’s the day after Francois Hollande’s victory in the French Presidential elections and as the Euro takes a battering, the French markets are up – austerity is suddenly a dirty word in France. Talk is instead turning to growth – something ALD Automotive has sustained throughout the economic turbulence of the past few years.

That’s because the leet management and leasing industry tends not to ride the economic rollercoaster quite as readily as other industries, according to Pascal Serres, Deputy CEO, ALD International (left): “Full service leasing is an anti-cyclical product, so we’ve continued to grow on the sell-side throughout the inancial crisis of the last few years. In fact today we’re in a great position – we’ve come out of the crisis stronger.”

It’s a con ident statement, but with the need for company cars and other forms of corporate mobility remaining strong whatever the economic weather, full service leasing continues to offer a low-risk, capital ef icient way of inancing new vehicles. And with a leet of over 917,000 vehicles worldwide, ALD enjoys a substantial slice of the pie, as the second largest player in Europe and the third largest globally.

The company itself dates back to 1946, with its roots in Belgium, but has only latterly been under the corporate umbrella of French banking giant, Societe Generale, under whose tenure it has enjoyed

24

internationalfleetworld.com

compound annual growth of 9% for the last nine years.

Societe Generale’s interest in full service leasing and leet management is relatively recent however, having founded the Temsys leasing brand in France in the early ‘90s and acquired ALD Automotive from Deutsche Bank in 2001. That move took its leasing and leet management operations into the

global market, setting the foundation for the company’s international growth ambitions.

And it saw the company’s geographical foothold in the leet management industry spread from France into Spain, Germany, Morocco, the UK and the Czech Republic.

International expansion remained ALD’s focus, with the subsequent acquisition in 2002 of Ford’s full service leasing

In the developing markets such as Mexico, we’ve enjoyed huge growth, with fleet volumes almost doubling over the past year.

subsidiary, Hertz Lease, marking its next major milestone: “The Hertz acquisition gave us the basis of our current structure – with its operations in Benelux, northern Europe, Italy and the Nordic countries”, explains Serres.

Today, when set against the shifting powerbase of the global economy, a diversified geographical footprint remains one

of ALD’s strong suits. Although strongest in Western Europe where its fleet extends to nearly 580,000 vehicles, the French headquartered company has been quick to jump on emerging market opportunities, investing in Brazil, Russia, India and China (‘BRIC’) as well as Turkey and North Africa between 2003 and 2007, to exploit the strong growth potential in younger markets.

But with growth in full service leasing slowing in Western Europe to around 3.5%* over the coming year, its presence across 37 countries undoubtedly helps ALD to hedge its exposure to slowing markets and exploit growth wherever the action is.

According to Serres, the customer base in its key emerging markets and BRIC countries is not primarily domestic in origin, but intertwined with ALD’s international customer base (which makes up 43% of the fleet): “In the developing markets such as Mexico, we’ve enjoyed huge growth, with fleet volumes almost doubling over the past year. The majority of customers in these markets are big multinationals – often North American and Western European pharmaceutical or technology companies – the kind of customers that are always going to need cars wherever they operate.”

Catching the rest of the big industry players napping is one way of stealing a march on the competition – and ALD reckons to be the only international leet management company with an established presence across Brazil, Russia, India and China. That’s a nice place to be right now, with recent

industry analysis predicting 19%* compound annual growth over the next four years in those markets.

So ALD is courting big corporates in the less mature territories, but where are the opportunities in the established markets coming from? Along with many of its competitors, ALD reckons SMEs are providing the Western European leasing industry with growth opportunities: “the market is progressively moving towards SMEs and through our distribution channels we can reach many of these customers,” comments Serres.

The distribution channels Serres refers to are primarily white label arrangements with car manufacturers – an area in which ALD considers itself a pioneer: “All in all we have more than 70 agreements in place, with the likes of Ford, Opel/Vauxhall, Toyota, Renault, Kia, Hyundai, PSA and others – we’re regarded as the specialists in the industry when it comes to white label products.”

The other obvious channel to tap into new SME customers is via the retail banking sector – and again ALD is building a distribution network by working not only with its parent company Societe Generale, but white-labelling to other banks – including RBS’ embattled Lombard brand in the UK. Around 30,000 vehicles are currently managed this way through partnerships with the banking network, but this is on the increase, and ALD’s UK arm expects the Lombard deal to add another 30,000 contracts over the next ive years.

Adding new contracts may be the key to *Source: Datamonitor IFW June 2012

25

¡

operator profile ALD International

ALD plans global growth ¡

success on the sell side, but for a company that last year acquired nearly 250,000 vehicles, disposing of them effectively is vital to protect the bottom line. And one area that’s affected ALD during the global inancial meltdown is the vagaries of used car residuals. Like most of its competitors with very large leet portfolios, implementing a multichannel remarketing strategy and putting as much metal in front of as many traders as possible, seems to be the way to go.

“Between 2009 and 2010 we had issues with the used car market – we were making some heavy losses because of falling residual values. Last year though, we sold 175,000 cars through our remarketing channels, including our own online auction platform, ALD carmarket, which we now use across most territories,” explains Serres.

“A lot of dealers have signed up – it’s quick, low-cost, and the best tool for disposing of vehicles effectively.”

ALD is focused on the online platform for its remarketing plans, but around 10% of vehicles also get sold on to their original drivers at the end of lease – the average term of which is 42 months. What of its approach to leet industry hot topics like sustainable mobility and risk management?

Like most of its competitors, ALD has embraced the bene its of offering branded solutions that help its customers comply with ever tightening health and safety legislation and gain greater insight into the carbon footprint impact of their leets.

“These are growth areas for us and most customers are very keen to participate – it’s cost effective and particularly where HR departments are involved in leet decisionmaking, becoming more important,” acknowledges Serres.

Working with customers on areas like ecodriving techniques to improve driver behaviour under the ALD DriveSafe programme, it also uses telematics-based solutions such as ProFleet2, which provides leet managers with auditable records of business journey data. According to ALD this system helps identify danger areas like driver fatigue and enables fleet managers to keep a watch on potential risk points such as

26

internationalfleetworld.com

speeding or harsh acceleration and braking.

The ability to drill down into private vs. business use also has obvious bene its from a tax reporting perspective, and being able to automatically send messages to drivers when a service is due is another bene it of the system. “It’s all about improving communications between the driver and the lessor,” comments Serres.

Offered initially by ALD Automotive UK, ProFleet2 is now being rolled out in other European territories, starting with the Spanish market. As for the drive to reduce CO2 emissions, not many in the industry

ALD is also involved in the Better Place scheme, which allows replacement of depleted batteries with fully charged ones in less than 3 minutes (now operating on the Renault Fluence Z.E. in Denmark), but Serres admits the leet market appeal is currently limited: “Deployment to customers is still at an experimental level for the time-being – the key issue is the increased cost and limited choice on the EV market. And of course, the constraints of range outside the urban environment.”

As for the future, any concerns about growth, austerity and the ravaged Eurozone

ALD is also involved in the Better Place scheme, which allows replacement of depleted batteries with fully charged ones in less than 3 minutes (now operating on Renault Fluence Z.E. in Denmark)

could con idently claim to be blazing a trail with electric vehicles, but a good track record with EVs does bolster ALD’s environmental credentials somewhat. As an early adopter of the technology, it now has a leet of 1,000 EVs throughout Europe.

are not showing too readily – “We don’t forecast any serious decline, but the markets in some Mediterranean countries like Spain, Italy and Greece won’t see much expansion – we can’t see any major growth there over the coming 2 to 3 years.”

ALD Automotive – Facts & Figures Fleet size – 917,000 vehicles Under management only – 26% Full Service Leasing contracts – 74% Largest direct market – France (282,880 vehicles) Geographical spread – 37 countries across 4 continents Newest market – Serbia (2007) Oldest market – Belgium (1946)

fleet strategy

Rate increase as vehicle costs rise The Eurozone backdraft appears to be fanning the cost flames for French fleets, with residual values rising slower than new car prices and SMR costs.

French fleet operators have suffered a +6.4% rise in rental prices in the last twelve months as new car prices, servicing and maintenance and repair (SMR) budgets climb.

Since May 2011 French new car prices have risen by +2.1%, with SMR budgets increasing by +8.3% during the same period.

Even with a +3.9% improvement in forecasted residual values, this still leaves French customers seeing the largest hike in rental prices according to the Experteye European Leasing Index.

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

SMR budgets are rising in a number of countries with the +8.3% rise in France over the last year followed closely by a +6.1% in the UK, +5.3% in Italy and +1.9% in Portugal.

Yet there appears to be some respite in the last quarter as French rental rates have reduced by -3.5% – the largest quarterly drop of the surveyed nations. German customers have also enjoyed a three month reduction of -2.2%, the UK -0.8% and Spain -0.5%, with Italian rentals climbing by +1.5% and Portugal +0.7%.

Market summaries – 3 and 12 months to April 2012 FRANCE: With a +6.4% rise in rental costs in the last twelve months, France has seen the greatest increase in its rental rates of all nations surveyed. With a +2.1% rise in new car prices and a +8.3% hike in French SMR budgets, the cause is apparent.

However, confidence remains in the future used vehicle market with forecasted residual values (RV) rising by +3.9%. The last quarter shows the picture settling, with RV forecasts at +0.4%,

SMR budgets -0.2% and rental rates -3.5%.

GERMANY: Germany has shown the greatest confidence in future used vehicle prices with a +4.6% rise in forecasted RVs since May 2011 (the largest of nations surveyed), adjusting to a +0.6% rise in the last quarter. German fleet operators have enjoyed a -3.8% drop in rental prices, and this continues in the recent quarter with a continued -2.2% fall. Annual SMR budgets are relatively stable with a slight -1.7% reduction, with a -0.9% drop in the three months since February 2012.

ITALY: SMR budgets have risen by +5.3% in the last twelve months, albeit reducing by -1.8% in the last quarter. Italian rental rates have remained stable for both the year and the quarter with a +0.3% and +1.5% rise respectively. Forecasted residual values are also relatively stable with a +1.0% increase for the year and -1.3% drop for the quarter.

PORTUGAL: Portugal has shown least confidence in the future used vehicle market with a -3.2% fall in forecasted RVs since May 2011. During the last quarter, the country remains least optimistic with a -3.7% drop. SMR budgets have shifted by +1.9% during the course of the year and +1.2% in the last three months, and rental rates have stabilised with a negligible +0.7% rise since February 2012 after a year which has seen a +1.3% rise.

SPAIN: Annual UK SMR budgets have risen by the second largest amount in the Experteye survey, with a +6.1% increase. This is at +2.0% for the quarter. Rental rates for the year are down by -2.0%, however the last quarter has seen a minor reduction of -0.8%. Forecasted residual values for the periods surveyed have been stable with a -0.7% reduction since May 2012 and a -0.2% shift since February 2012.

CHANGES IN RV FORECASTS, SMR COST FORECASTS AND LEASE RENTALS Forecast Residual Values

Forecast Service, Maintenance and Repair Costs

Current Rental Rates

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

+0.4%

+3.9%

-0.2%

+8.3%

-3.5%

Germany

+0.6%

+4.6%

-0.9%

-1.7%

-2.2%

-3.8%

Italy

-1.3%

+1.0%

-1.8%

+5.3%

+1.5%

+0.3%

Portugal

-3.7%

-3.2%

+1.2%

+1.9%

+0.7%

+1.3%

Spain

+1.4%

-0.9%

+2.7%

-2.9%

-0.5%

-2.2%

UK

-0.2%

-0.7%

+2.0%

+6.1%

-0.8%

-2.0%

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

• Twelve-month comparisons show change since May 2011.

• Three-month comparisons show change since February 2012.

+6.4%

• 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.

IFW June 2012

27

fleet strategy Iveco Defence

HEAVY HITTERS

To play the game of defence vehicle sales is to sit at the table with high rollers. You need resources and nerve.

Ian Norwell reports from Iveco’s defence division in northern Italy.

PARALLEL UNIVERSE The economics of producing chassis for the defence market is a world away from the pricing and volumes that apply to civilian sales. Add the Byzantine workings of various countries’ defence departments, their proclivity for moving the goalposts mid-match, and the glacial pace at which bids are processed, and it becomes clear that it’s a business with unusual rules.

Of course the prizes are big, with any eventual orders often matching a manufacturer’s annual national sales of regular commercial vehicles. But you need crystal balls too. As the quill hovers over a 25year repair and maintenance contract for thousands, not hundreds of vehicles, you sign in the certain knowledge that it will be your successor who will be weathering the inancial whirlwind of any miscalculation, and not you.

TYROLEAN TRUCK PLANT Iveco’s Bolzano plant in the northern Italian Tyrol, has a long history of defence contracting, since Lancia started there in 1937. With two other development centres in Italy, another in Ulm in Germany and a further operation in Brazil – serving a substantial 2,000-vehicle contract with the Brazilian army – they have a global reach. It’s re lected in the 50 or so countries on their customer list,

We have recently paid special attention to the seating in the armoured crew compartment

28

internationalfleetworld.com

which includes 20 NATO members.

The turnover igures show an unsurprising home-based bias, with 56% of contracts serving the Italian defence forces. However, with the rest of Europe accounting for 20%, and other world markets taking the remainder, it looks like a wellbalanced portfolio.

Iveco supplies the UK Ministry of Defence with heavy Trakker chassis, 206 of which are in service with the Royal Engineers of the British Army.

And Iveco’s Light Multirole Vehicle (LMV) appears in the British Army’s leet as the Panther, 400 of which are in service, with an unspeci ied proportion currently in Afghanistan. Feedback from this active theatre is channelled into product revisions and the impact of the IEDs (Improvised Explosive Devices) and mines has spurred innovation.

SEAT OF LEARNING Our tour of the plant revealed a distinct leaning toward the defensive developments related to occupant protection, rather than other more overtly offensive equipment. Carlo La Corte is the sales engineer for Iveco’s multirole range and he gave us a guided tour of the plant and the LMV in particular. He said, “We have recently paid special attention to the seating in the armoured crew compartment.” He went on to explain that blast energy from IEDs has been redirected by clever design with a three-stage process that progressively reduces the blast effect that reaches the cabin.

Firstly, the armoured underside of the truck is not lat, but V-shaped like the hull of a boat. This helps de lect blast energy away to the sides. A double skinned loor is the next line of

defence. Crew seats were previously mounted directly to the upper loor skin, but the metal supports that held the seats to the loor were themselves transmitting blast energy up into the seat and crippling occupants.

A radical re-design turned the problem on its head. Instead of bolting the seats to the floor with metal, they are now secured to the roof, and to the floor, by angled webbing. It looks like seat belt material, but with more than a whiff of carbon fibre about it, and the tension of an over-tightened ratchet strap. This design effectively suspends the seat in mid-air, from the floor and the roof, and reduces the structures that connect it to the vehicle, to the absolute minimum. It’s a very different picture of risk management from usual fleet concerns.

A CASE FOR REVIEW Some basic re-engineering of the transmission components was also called for. The heavy-duty transfer gearbox was relocated further back in the chassis to prevent it being blown into the cabin.

To give a rough idea of the forces involved in an IED blast, the recording devices that can be placed on board (‘black-box’ style) are triggered by forces in excess of 50G. Pressure sensors that measure the increases in atmospheric pressure reach 17 bar.

With reliability crucial, we were interested to note that the LMV’s drive train was the same 190hp, three-litre, four-cylinder unit from the Iveco Daily van, mated to a six-speed automatic transmission from ZF. As the vault-like door closed, complete with its 8cm thick window glass, it did inspire con idence, but we still wouldn’t want to test it in service.

ECONOMIES OF SCALE Away from the skewed economics of the defence business, we used a couple of new Iveco Daily vans to drive between the Bolzano factory and the Daily production plant in Suzzara. As a test drive it revealed a number of minor improvements on the previous version, most notably lower noise levels and another upgrade in it and inish.

On the way between plants, we called in to see Iveco’s newest and biggest dealer point in Italy.

Sitting on one of Europe’s prime road and rail freight crossroads near Verona, it has been set up as a €20m joint venture with the local municipality to put a large dealer on the ground that can take advantage of the high volumes of local traf ic.

And they are certainly there.

The neighbouring ZAI (Zona Agricola Industriale) is a 2.5 million square metre logistics centre that handles 4,000,000 trucks and vans in transit each year. Iveco’s Of icine Brennero operation has been trading for just over a year and it’s already serviced 8,000 trucks, sold 580 new truck chassis and shifted 300 used ones.

Fleet service business is Europe-wide and dealer principal, Federico Gaiazzi (below left), has assembled a range of leet maintenance services other dealers would kill for. He says, “This is such an important European hub, only those dealers who provide every conceivable service will win business. Fleet operators increasingly want one source of service. We’ve set out to try and hit that target.”

Apart from ‘vanilla’ truck and bus sales and service, there’s segregated compressed natural gas (CNG) maintenance, toll collect installation (a necessary evil for European hauliers), a ‘chrono service’ (available with no appointment), tachograph calibration, trailer repair, overnight servicing and a €2.5M parts inventory on site that should keep the wheels rolling.

The survival of dealers hasn’t made as many headlines in recent times, or generated as much sympathy, as hauliers going bust. But with this the only dealer in Italy owned by Iveco, the manufacturer clearly prefers to have ‘owner-drivers’ in the chairs for their network when it comes to keeping minds concentrated on pro itability.

However, apart from getting instant feedback from the leet operating industry from an enterprise like this, they can also afford the capital setup costs that would probably deter an independent. The workshops were particularly striking, with pits cast into the loor at construction stage, and a common access walk way to link them all. Hydraulic ram lifts capable of raising a loaded and coupled tractor-trailer combination gave the kind of quality edge to service that can only come from a new site and deep pockets.

Their bravery was rewarded in year one with a €60M turnover. Not bad for a dealer.

IFW June 2012

29

fleet focus GERMANY

Germany forges ahead, despite softening market A powerful manufacturing base, world renowned brands and a developing leasing sector sounds like a good place to do business.

Is everything in the garden rosy? John Kendall finds the answers.

PREMIUM SUCCESS German carmakers such as BMW (above), MercedesBenz, Audi, VW and Porsche continue to outperform the market trends 30

internationalfleetworld.com

The most significant growth can be found in the Medium SUV segment with models like the Volkswagen Tiguan, Skoda Yeti, AUDI Q5 and Mercedes GLK from German manufacturers as well as models like Dacia Duster, Hyundai ix35 and Kia Sportage from import brands

Since Germany played a significant part in establishing the global motor industry in the late 19th century, perhaps we should not be surprised that the industry is thriving today and that German motor manufacturers continue to outperform the market trends in Europe. It usually follows that countries with a strong automotive manufacturing sector do not provide many opportunities for motor vehicle importers and that seems to be true of Germany.

Data available from the International Organisation of Motor Vehicle Manufacturers (OICA) suggests that in 2011 6,311,318 motor vehicles were manufactured in Germany, consisting of 5,871,918 passenger cars and 439,400 commercial vehicles, representing a 6.9% increase compared with 2010. OICA data rates Germany as the fourth largest motor vehicle manufacturer in the world.

According to data from the European Automobile Manufacturers’ Association (ACEA), in 2010, Germany had 47 vehicle and engine assembly plants, compared with 38 in France and 32 in the UK, although if press reports are correct, Germany stands to lose the GM plant at Bochum, following the announcement that the next generation Opel/Vauxhall Astra will be built at the company’s Ellesmere Port plant in the UK. Besides the major German car manufacturers: Audi, BMW, Mercedes-Benz, Porsche and Volkswagen, Mercedes-Benz and Munich-based MAN also produce trucks and buses. The only large foreign manufacturers building vehicles in Germany are Fiat, Ford, General Motors and Volvo Trucks.

Fiat is represented through its Iveco heavy truck subsidiary, which builds Magirus heavy truck and fire-fighting vehicles.

Magirus was a German heavy truck maker, bought by Fiat when Iveco was established in the 1970s.

Both General Motors and Ford are regarded as German manufacturers in Germany since both have had manufacturing operations in the country for many years.

Ford set up vehicle assembly in Germany in 1925 and GM acquired Opel in 1931.

The registration growth seen in 2011 appears to be continuing in 2012, if at a reduced rate of growth. 3,173,634 passenger cars were registered in Germany in

2011, 8.8% more than in 2010. In the period January to April 2012, data from ACEA shows that 1,047,702 new cars were registered in Germany, 1.8% more than for the same period in 2011. Registrations for April, at 274,066 were 2.8% higher than for April 2011, against an average 6.9% decline for the EU27 countries. The average decline for January to April 2012 was 7.5%.

For commercial vehicles, the German International Association of Vehicle Manufacturers (VDIK) suggests that Germany is bucking the trend in CV registrations. With over 26,000 registrations, the market was down 1% in April, with heavy commercial vehicles up 7% to 6,000 compared with the downward trend across Europe. Compared with 2011 the January to April period recorded 102,000 new CV registrations in Germany, down approximately 1%. Again this is a better performance than the European average, with EU27 Q1 new CV registrations down 9.6%.

Despite the relative strength of the German economy, German drivers have been no more immune to emissions pressures and rising fuel prices than any other EU member states, and downsizing has been the trend amongst drivers. According to JATO Dynamics: “The most significant growth can be found in the Medium SUV segment with models like the Volkswagen Tiguan, Skoda Yeti, AUDI Q5, Mercedes GLK from German manufacturers as well as models like Dacia Duster, Hyundai ix35 and Kia Sportage from import brands, which have more than doubled in volume in the past five years. These models combine low CO2 and comparatively low fuel consumption with customers appreciating features such as higher seating position, more passenger and luggage space and the ‘sporty outdoor’ image attached to the segment.

This trend has come at the expense of Luxury SUVs and small and Medium MPVs, as sales volumes have dropped significantly for these models over time.”

JATO also points to growth in the Asegment. Growth for the sector, with models such as the Fiat 500, Ford Ka and Hyundai i10, has been 12% since 2007.

Growth in 2009 was 106%, but much of this can be accounted for by the German scrappage scheme. But the arrival of the

VW Up! and its cousins the Skoda Citigo and Seat Mii, is likely to stimulate sales in the segment this year.

Not surprisingly, the lower-medium segment is another strong performer, since the VW Golf is the best selling car in Europe.

Besides the Golf, the Opel Astra and Ford Focus are strong performers in the sector with the Renault Megane, Peugeot 308, Hyundai i30 and Kia cee’d also performing well. According to JATO, the segment has grown by almost a fifth since 2007 and now accounts for 15.7% of the new car market in Germany. Business sales in this sector are also buoyant.

Altogether, German manufacturers account for around 45% of the new car

BEST SELLER

VW GOLF

ORMER STRONG PERF YUNDAI i30 H

MANY

MADE IN GER

MERCEDES-B

ENZ TRUCKS

IFW June 2012

31

¡

fleet focus GERMANY

Germany forges ahead... ¡

market, although JATO points to significant differences in performance. While VW has experienced growth of nearly 13% between 2007 and 2011, Mercedes has seen volumes fall by a similar amount. Similarly Opel market share has dropped from 9.1 to 8.0% while Ford’s has increased from 6.8 to 7.3%.

For imported brands, Hyundai has risen from the 15th best selling brand to ninth between 2007 and 2011, while Toyota has moved down from 7th to 11th. At the same time the Toyota Auris has been displaced as the best selling import by the Hyundai i30.

German business car drivers may be looked upon with a degree of envy by their counterparts in other countries. A flat-rate tax of 1% of the gross list price is levied for private use. Vehicle tax has been partially linked to carbon dioxide emissions and cylinder capacity since 2009. German drivers must also pay for a car radio licence to receive public broadcast services while radio and navigation systems must also be licensed for business use, even if they are not used.

According to LeasePlan, 80% of the company car market is accounted for by Audi, BMW, Ford, Mercedes-Benz, Opel and VW. Some 60% of company cars are financed by leasing, says LeasPlan, with a significantly higher proportion of leasing in large fleets. “Generally it can be said that, the bigger a company is, the more leasing as a financing method is preferred. The full-service-leasing share for big fleets is about 75%,” reckons LeasePlan and adds, “The future trend for leasing is increasing, also because the share of leased company cars in the small fleet segment will be increasing in the years to come.”

That said, JATO reckons that Germany is still some way behind the UK and Netherlands in terms of contract hire and leasing shares, “Due to the low interest rates, cash-rich companies are considering outright purchase again with the fleet management part often being outsourced to specialists,” says JATO. Both LeasePlan and ALD point to low take up for electric vehicles at the

32

internationalfleetworld.com

moment. Factors affecting this include the small number of available models from German manufacturers, limited range and the small network of vehicle charging points for electric vehicles. Even so, the White Clarke Group Asset Finance Survey for Germany sees EVs as a growth area for the leasing sector. Overall German car leasing business in 2011 grew by 12%.

It is low emissions models that tend to be fleet favourites. “Every second customer of LeasePlan Germany has green elements implemented in his or her car policy,” says LeasePlan, “To influence the company car drivers' choice positively, companies tend more and more to apply ‘bonus-malus’ systems which employ CO2 emission caps. This way the company car driver benefits financially from an environmentally friendly choice. On the other hand the driver has to make an out-of-pocket payment, if he insists on driving a nonenvironmentally friendly model. There are also companies that rule out highemission models right from the start. For fleet managers, low-emission is a synonym for low-cost due to the fact that 30% of the total costs of ownership consist of fuel.”

VIEWPOINT

THE LEASING INDUSTRY ALD highlights the strength of the used car market in Germany: ”A lot of cars are being transferred from other markets to Germany for re-marketing now,” says Karsten Rösel (below), general manager, ALD Automotive Germany. ”That’s an effect here that leasing companies have to deal with, so there is over-supply of the typical leasing returns. Besides all the positive dynamism, we see a drastic increase in dealer and manufacturer registrations,” he continues. This introduces what Mr Rösel refers to as ‘artificial market dynamism’. ”The dealers register a lot of cars and newly leased cars are then being marketed quickly after registration for decreased pricing.” This could be a way of dealing with models that are not selling in crisis-hit economies like Spain and Greece, or for models that are coming towards the end of their life cycle. Instead of selling them at large discounts, manufacturers prefer to offer low leasing rates. The Autorola report on Portugal opposite also discusses this pan-European marketing trend.

Auctions in Portugal are going increasingly down the online route

PORTUGAL ONLINE CROSS-BORDER REMARKETING HELPS COUNTRIES MANAGE THEIR USED CAR INVENTORIES MORE EFFICIENTLY Demand for online cross-border remarketing is booming currently as it helps entire countries manage their used vehicle stocks efficiently on the back of a difficult economic climate.

Countries in recession such as Portugal that are faced with a huge stock of used vehicles with no major trade or consumer demand are using cross-border remarketing to sell and export these vehicles online to free up much needed cashflow.

Meanwhile, other countries where used vehicle demand exceeds vehicle supply are using online crossborder remarketing channels to source stock and drive an alternative source of profitability at a time when new car sales are falling in most European countries.

Autorola is Europe’s largest online remarketing company with subsidiaries in 17 European countries and over 70,000 buyers registered in 32 countries. It is running 100 cross-border online auctions at any one time through its website, offering buyers thousands of cars for sale. ”Cross border buying and selling has been growing over the last couple of years, but the problems experienced by the global economy has seen this area grow dramatically in the first few months of 2012,” said Peter Grøftehauge, Autorola’s owner and chief executive. ”If an entire country is not buying used cars then the danger for asset owners is that they sit parked up for months losing money. Cross-border remarketing enables them to put vehicles up for sale through our online channel and within a few weeks quickly dispose of those cars, freeing up much needed cash,” he added.

Two working examples of countries/markets benefiting from cross-border remarketing.

Demand for new cars in Poland is very low with dealers being penalised by the Government for importing new cars. This has led to a high demand for used cars and Autorola Poland’s import sales figures are up 45% year-to-date as dealers buy stock online through Autorola from across Europe. Portugal’s economic challenges have been well documented and demand for cars both new and used has fallen dramatically. Portugese leasing companies, asset owners and dealers are offering their used cars online to quickly dispose of unwanted stock. Autorola Portugal has experienced a 589% increase in used car exports online in 2012.

ADVICE AND TIPS ON CROSS BORDER BUYING AND SELLING

•

SELLERS Vendors should price vehicles realistically to ensure they don’t undervalue or overvalue a car. Speak to Autorola’s experienced team to help with valuations.

•

Photographs and supporting paperwork about individual cars – including a damage report if applicable – should always accompany a car for sale online.

•

The more information a buyer has available to them the greater their confidence in buying a car remotely online, and the more likely you are to achieve a quick sale at the right price.

•

Different makes and models of cars are in demand in different countries – Autorola can provide you with this type of advice country by country.

•

BUYERS Once you have purchased a vehicle your money sits safe in an escrow account and is only released to the vendor once you have received and are happy with your car.

•

If there are questions you have on a car up for sale, then email or pick up the phone to the online remarketing supplier. They will happily help answer any questions you may have.

•

Good online remarketing suppliers should offer help and support in the event of a dispute between seller and buyer.

IFW June 2012

33

fleet profile RENAULT

IS RENAULT’S FUTURE ELECTRIC? Nissan’s position in the best-selling global markets means it’s outselling Alliance partner Renault by a large margin, but focus on electric vehicles and other markets outside Europe could build future sales for the French brand. Mark Bursa reports.

Interesting times for the French half of the Renault-Nissan alliance. With Europe’s economy still mired, Renault’s reliance on its home continent has seen it outshone in recent years by its Japanese partner. Overall, the Renault-Nissan Alliance captured 10.7% of the global market in 2011, up from 10.3% the previous year.

Alliance chairman and CEO, Carlos Ghosn, expects Nissan to extend its lead as the biggest player in the Alliance and to outstrip the global forecast. He expects Nissan to increase sales by 10% in 2012, to a record 5.35m vehicles, as part of a plan to achieve an 8% global market share and 8% operating pro it margin by March 2017.

Nissan shifted 4,669,981 units in 2011, with impressive growth of 14.4% on 2010. By contrast, last year, Renault sold 2,722,062 units worldwide, up 3.6% on 2010 sales. Even Russian AvtoVAZ Lada, now a full member of the alliance, saw more rapid sales growth in 2011, up 10.9% to 637,179 units.

Nissan, of course, has a more even geographical spread, with a strong presence in the world’s top three markets – China, the US and

34

internationalfleetworld.com

Japan. Renault is largely absent from all three. But then again, the global nature of the alliance gives balance, so perhaps this is somewhat harsh. Nevertheless, Renault has moved to address some of its weaknesses. And while a US market entry is unlikely, Renault has built plants in Brazil and India and formed a new Chinese alliance with Dongfeng, Nissan’s long-standing partner.

The inancial results look OK too, with Renault group revenues rising 9.4% year-on-year in 2011 to €42.628 billion and operating income almost doubling to €1.244bn versus €635m in 2010 – which pleased Ghosn: “Thanks to the hard work of all its employees, Renault coped with the different crises faced throughout the year, exceeding the free cash- low objective for 2011.”

In particular, Ghosn highlighted the strong performance outside the EU: “The 19.2% increase in group sales outside Europe, notably in Brazil and Russia, illustrates the group’s international growth. In 2012 we expect international sales to be well in excess of 43% of the total.”

Sales outside Europe reached a record 1,172,686 units, driven by fast-expanding markets such as Russia (up 40%), Turkey (up 13%) and Latin America (up 10%). In total, six of the Group’s top ten markets were located outside Europe in 2011, with Brazil replacing Germany as Renault’s second-biggest market after France.

Renault’s sales in Brazil, where it plans to expand capacity in 2013, grew 21%, in a market that expanded just 3%, to a record 194,300 units. Renault market share stood at 5.7%, up 0.9 percentage points from 2010 and powered by demand for small cars such as the Sandero and Clio hatchbacks, and the Logan saloon.

In Russia, Renault posted both record sales and market share. Sales jumped 60% to 154,734 units, making it Renault’s fastest-growing market. Market share rose to 5.8%, up 0.7 percentage points from the previous year. Sales were led by Logan and Sandero as well as the Fluence mid-size sedan.

In Europe, Renault remained the second-largest brand after Volkswagen taking an 8.6% share of the passenger car and light

commercial vehicle market. In Europe, sales rose in certain markets: Netherlands (+16%), Germany (+9%), Austria (+9%), and Belgium/Luxembourg (+5%). But sales fell in others, notably the economically troubled southern European markets of Portugal (-30%), Spain (-17%) and Italy (-10%).

Renault’s top-selling passenger cars in Europe were the Megane, Clio and Twingo, suggesting that Renault’s strength remains with the private buyer of smaller cars rather than large leet customers.

This doesn’t apply to the van sector, where strong leet sales continued to make Renault Europe’s light commercial vehicle leader – for the fourteenth consecutive year – with a 15.6% market share.

Renault expects the global market for cars and light commercials to grow 4% year-on-year in 2012 with markets outside Europe continuing to grow, especially Brazil (5%) and Russia (8%). By contrast, the continued economic uncertainty in Europe is likely to result in the European market shrinking once again, by 3% to 4%, including a decrease of 7% to 8% in France.

¡

Renault coped with the different crises faced throughout the year, exceeding the free cashflow objective for 2011.

Carlos Ghosn, CEO, Renault-Nissan Alliance

IFW June 2012

35

fleet profile RENAULT

¡

FRANCE Van sales are particularly strong in Renault’s home market, and have helped the company maintain a steady market share in France against the backdrop of a declining market.

In 2011, one in three vans registered in France was a Renault model. Renault’s leadership position gave it a 32% market share (36% for the group, including Dacia LCVs). Three vehicles – Kangoo, Clio van and Master – took the top three places in 2011. A new Tra ic is due in 2014, and this will be built in France as well as Spain and the UK. The alliance with GM will continue, but the manufacturing arrangements have been changed, so the GM Luton plant in England will now produce solely for Opel/Vauxhall (which sell the van as the Vivaro), while Renault will build its own new Tra ic at Sandouville in northern France.

Strong LCV sales helped Renault maintain leadership in the French leet market, with a share of more than 30%. However, leet sales of passenger cars declined steeply by 3.6 percentage points. Renault puts this down to pulling back from aggressive pricing policies in the leet sector.

Overall Renault group car and van registrations, including Dacia-brand vehicles, declined by 7.5% in France in 2011 compared with 2010. The group took 26.1% of the market, down 1.7 percentage points on 2010. Renault brand sales fell by 6.4% and Dacia by 14.4%.

Renault group car sales accounted for a 24.7% market share, roughly the same share as in 2010.

Clio and Mégane were the top two sellers in France, and four Renault group vehicles were among the French 2011 top ten best-sellers list: Twingo at number 6, and Dacia Duster at number 10.

Maintaining share is seen as a decent achievement – as well as a weak domestic market, depressed further by the end of Government incentives in 2010, Renault sales in the irst half of 2011 were hit by the effects of the Japanese Tsunami. Renault’s sales recovered strongly in the second half of the year, especially among private consumers, where the Group is market leader with a 25% share.

The situation is not likely to improve until the second half of the year.

Bernard Cambier, senior vice president, market area France, said: “2012 is going to be tougher. The car and LCV market is likely to contract by 7% compared with 2011, with a steep fall of around 17% in the irst quarter. Against this backdrop, the Renault group’s performance in the early part of the year will slacken, particularly for the Dacia brand. Nonetheless, the Group expects to at least maintain its sales performance at 2011’s levels, with Dacia sales surging in the second half of the year.”

Megane and Clio were the best sellers in France in 2011

Top 15 markets for Renault group (excl. Lada), 2011 Country France Brazil Germany Russia Turkey Italy South Korea Argentina Spain Iran

Sales 689,022 194,300 181,176 154,734 140,827 122,920 109,221 106,040 99,092 93,578

Source: Renault

36

internationalfleetworld.com

Market share 26.1% 5.7% 5.3% 5.8% 16.3% 6.4% 7.0% 13.0% 10.9% 5.9%

LATIN AMERICA Outside Europe, Renault is strongest in South America. The Group turned in record sales and market share (6.1%) with nearly 400,000 vehicles sold from Mexico to Argentina. Brazil is now the Renault group’s second-biggest market, after sales there rose 21% in a market that expanded by 3%. The Renault brand set new records for sales (194,300 units) and market share (5.7%).

In Argentina, sales exceeded 106,000 units for the irst time, rising 29%.

Market share was 13%. The brand’s success in Brazil and Argentina is being driven largely by Renault Sandero Phase 2, which was launched in Spring 2011 and developed exclusively for these markets. Renault Duster, launched in October, was also well received.

In Mexico, where volumes were up 28%, the Renault brand achieved its best ever showing for market share since 2001 (2.6%) and sold 23,132 units.

In Colombia, the Renault brand posted record sales, with 46,820 units, 23% higher than in 2010, and consolidated its No.2 ranking in the market with a 15.6% market share.

UK

INDIA India is seen as a key market for Renault, which has built a major new plant near Chennai. This is an alliance plant that also builds Nissans. It has a capacity of 400,000 units, but in 2012 is likely to produce around 30,000 Renaults. In 2011 Koleos and Fluence were launched, and in 2012 the range will be expanded with the addition of three new vehicles, including the Duster.

Renault Koleos has been a success story in India

Renault has struggled in the UK recently, with sales tumbling in 2011 to 68,449 cars, a fall of 28% over 2010. Market share dropped from 4.71% to 3.53% last year – a far cry from Renault’s late 1990s heyday when levels around twice that were achieved.

A number of factors have contributed. Laguna has sold badly since the second generation model was launched in 2001, and the third-generation model has done little to improve competitiveness in a sector that has both declined and shifted away from volume brands.

As a result, Laguna is one of a number of models to be dropped from the Renault UK range at the start of the year as part of sweeping cutbacks. As well as Laguna, Espace MPV, Modus compact MPV and Wind sports car have all been axed, as well as passenger versions of the Kangoo LCV. This has left Renault with a streamlined four-model range in the UK comprising just Twingo, Clio, Megane and Scenic.

Renault claimed combined sales of these models accounted for less than 10% of its UK volume. A new Espace is due in 2013, and this is likely to be reintroduced to the UK. In place of the withdrawn models have come a range of four electric cars, plus, inally, a UK launch for the Dacia budget brand, with RHD Sandero and Duster models being sourced from India. The Dacia brand will be sold through Renault dealers.

Renault’s UK restructure also involves a reduction in its dealer network by around one-third from 190 to around 135 by the end of the year, and a 50-person headcount reduction at its Rickmansworth head of ice.

The restructure also means Renault has throttled back heavily on leet business in the UK. Sales director, Darren Payne said last year that Renault UK would be pulling out of all leet business except “true leet sales”, apart from a small volume of van rental, and this will result in Renault’s leet share halving over the next year.

Payne said the company had taken the decision to only sell cars that were inherently pro itable and not dependent on the strength of the pound against the euro to create margins, as well as pulling away from doing expensive leet business just for the sake of volume.

Much of the surviving leet business is likely to be LCV-driven, such as a recent deal for Interserve, an international support services and construction group, which last December awarded a contract to Renault UK for the supply of more than 400 LCVs following an extensive tender process. The new leet includes Kangoo, Tra ic and Master models.

Total Renault group car and LCV sales by region (excluding Lada), 2011

RUSSIA Not counting the AvtoVAZ operation, which is now under the control of the Renault-Nissan alliance, the Renault brand recorded both record sales and market share in Russia, with a 60% increase to 154,734 vehicles sold and a 5.8% share of the market. The Renault brand ranks among the top ive on the market, thanks to the success of Renault Logan, Sandero and Fluence. Vehicles are built at a plant in Moscow, Avtoframos, the site of a former Moskvich factory.

France Europe* (excl. France) Total Europe Euromed Eurasia Americas Asia-Africa Total excl. Europe

2011 689,022 860,354 1,549,376 308,631 170,808 396,933 296,314 1,172,686

2010 744,735 898,948 1,643,683 272,758 106,694 317,028 287,202 983,682

% change -7.5% -4.3% -5.7% +13.2% +60.1% +25.2% +3.2% +19.2%

Total

2,722,062

2,627,365

+3.6%

¡

* Europe = European Union (24 countries) + Croatia, Iceland, Norway & Switzerland. Source: Renault

IFW June 2012

37

fleet profile RENAULT

DACIA BRAND ¡

Renault’s revival of the former Communist automaker Dacia, based in Pitesti, Romania, has been one of the automotive successes of the past decade. Dacia now has a range of low-cost models, and the brand has been developed as a ‘value’ brand within the RenaultNissan alliance.

Renault has long links with Dacia – the factory has produced Renault-based vehicles since it started production in the late 1960s.

Dacia managed to survive through the post-communist years, becoming part of Renault in 2000. A range of low-cost models – project X90 – was revealed in 2004, starting with the Logan sedan.

Further investments have seen additional models – panel van, MCV (station wagon) and pick-up derivatives of Logan, and then separately-branded hatchback, (Sandero), SUV (Duster) and MPV (Lodgy). All use the same common platform and running gear.

The brand has been extremely successful – not just in emerging markets, but in Western Europe, where it has sold strongly in both France and Germany. France is the biggest export market for Dacia, with 94,000 units, which represents a 3.5% market share. Germany comes next, with 43,452 Dacias sold, up 7.8% on 2010. Sales in Italy increased by 15% to 26,838 units.

The cars are sold through Renault dealers and are sold on a no-haggle ixed-price basis, targeting private customers – there are no leet discounts.

Duster

38

internationalfleetworld.com

Dacia sold 343,233 units worldwide in 2011, including 240,000 in Europe. This was down slightly on 2010’s 348,723 vehicle sales. The top selling model was the Duster SUV, with 161,200 units sold, followed by the Logan models (95,452) and Sandero (86,578).

In Romania, Dacia sold 30,867 units, the majority being Logan (21,099). This is 16% fewer than a year before, when it sold 36,730 units in Romania. As the Romanian car market dropped by 8.3% in 2011, Dacia managed to retain 28.9% of the total sales.

Other strong Dacia markets include Morocco (22,356 units), Turkey (21,339) and Algeria (19,242). Spain comes next, with 15,641 units, followed by Belgium (14,700), Poland (7,382), Switzerland (6,051) and Austria (5,697).

In France, Dacia was the number seven passenger car brand in 2011. Sales fell 0.6% last year to just under 90,000 units, though this was due to the expiration of government Sandero subsidies for LPG powered vehicles and to engine supply constraints stemming from the tsunami in Japan. Maximum use of production Lodgy capacity from September onward was not enough to offset the irst-half fall in output.

In France, Dacia ranks number five for sales to private consumers. The new Duster SUV was ranked the sixth most popular model among private consumers, with 2011 sales up 165.5% on 2010. UK sales are due to start in June 2012, initially with the Duster and Sandero models.

Dacia has been developed as a ‘value’ brand within the RenaultNissan alliance

ELECTRIC VEHICLES A cornerstone of Carlos Ghosn’s plans for Renault is electric vehicles. You could argue he’s betting the farm on it. Renault has launched an extensive EV programme, seeing the launch of four battery-electric vehicles this year.

These range from the Twizy two-seater to the ZOE hatch, Fluence Z.E. saloon and Kangoo Z.E. MPV and van. The Renault Nissan alliance will have the capacity of 500,000 EVs by 2013 worldwide, so it is well placed to service any sales boom.

Renault estimates electric vehicles will represent around 10% of automobile sales in France by 2020, and it wants to be the leading player. Initiatives include an alliance with French supermarket chain E Leclerc to set up 500 EV charge points in the car parks of 50 of its hypermarkets as a plan to bring about massive EV charging infrastructure to France.

Electric vehicles are being targeted largely at leets – especially companies that want to implement corporate environmental responsibility programmes. Already a large number of French companies have placed signi icant orders for Kangoo Z.E. vans.

Last October Renault announced orders for a total of 15,637 Kangoo Z.E. vans from 19 French companies, including 10,000 for La Poste, 1,500 for ERDF, 1,200 for UGAP, 510 for Veolia Environnement, 450 for GDF-Suez and 330 for Spie.

Renault Kangoo Z.E. is priced from €15,000 in France (ex-VAT, and including a €5,000 Government environmental bonus). The vans come in two wheelbases and are produced at the Maubeuge plant in France alongside internal-combustion Kangoos.

The irst UK leet order – six vans for advertising company JCDecaux, was placed in April, six months ahead of the vehicle’s British launch. The vans will be used to enable staff to travel between JCDecaux’s UK sites, which cover all major cities, including London, Manchester, Birmingham and Glasgow.

Meanwhile two leading UK eco-chauffeur leets have taken delivery of Renault’s new battery-electric saloon, the Fluence Z.E.

Climatecars and Greentomatocars, which run large leets of Toyota Prius hybrids, are each running two of the ive-seat saloons, on a six-month trial, and both companies are believed to be considering adding the vehicle to their leets on a permanent basis.

The Fluence Z.E. is a 100% electric private hire vehicle with a range of up to 115 miles on a single charge. All four Fluence Z.E.s are based in Central London, with both companies ensuring their costs and electricity usage are minimised through charging via the Source London network and their own in-house charging points.

Greentomatocars said it would use the Renault Fluence Z.E. strategically for speci ic shuttle runs and events for its clients, rather than day-to-day private hire duties. “Using the vehicles for these purposes, such as between a company’s of ice and the nearest station at the start and end of the working day, maximises the reduction in emissions, and ensures the vehicles stay well within their daily mileage limits,” said managing director Jonny Goldstone.

Even the Twizy electric quadricycle has leet potential.

Telecoms company Orange has ordered 100 Twizys as part of ongoing plans to reduce CO2 emissions and energy usage. The vehicles, which are on a long-term lease through Arval, will be provided to employees on a loan basis for urban business use, with the irst 14 examples already deployed in the Ile-deFrance region.

Orange leet management director Jean Zermati said Twizy could be added to leets in other countries depending on suitable duty cycles and a supporting service infrastructure. Twizy joins a number of plug-in vehicles already deployed on the group’s French leet, including the Renault Kangoo ZE, Renault Fluence Z.E, Peugeot iOn and Toyota Prius Plug-in.

By the end of 2013, Orange is aiming for have “several hundred” electric or hybrid vehicles in use globally, contributing to a planned 20% reduction in CO2 emissions and 15% reduction in energy consumption by 2020, compared to 2006 levels.

IFW June 2012

39

ONLINE NOW! For all your fleet needs, visit internationalfleetworld.com

NEWS from the global fleet community

INSIGHT from experts into the fleet industry

ADVICE best practice for running your fleet

AND to receive IFW every month, visit fleetworldsubscriptions.co.uk and register your details for FREE

19:31 Page p_IF W_Feb'12 1 :Lay

out 1

JANUARY > FEBRUA RYJAN 2012 UARY

25/1/12

11:05

Page

1

DIARY DATE

INTIENRTNEATION RNATIAL O FLE FE LE TW ET RLDNAL > FEBRUA

RY 201

internationalfleet

2

world.com

18/4/2012 inter

natio Visit evfleets how.co.unalfleetworld. com for more informa k tion and to register for the event

W RL D

Essential Busin Esse ess ntiInform ation for Intern al Busin ational Fleet Decis ess Inf ormati ion Makers on for Intern ational Fleet De cision driving towards

lower fleet emissions

Reaping the o said dividW enhds effic

can’t b ie e excit ncy ing?

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

The new

MOKKA

THINK BIG. RIDE CLEVER. World premiere at the Geneva Motor

www.opel.com

The A ll New

Fuel consumption combined 7.0–4.9 l/100 km; CO2 emissions combined 159–129 g/km (according

inside SWOT

Show.

to R (EC) No. 715/2007).

Suzuki SX4

On show

LA & Tokyo review

s

Off balance

Lease accou

Makers

launch report Mazda CX-5 p42 Chevrolet Volt p43 Renault Megane p44 Ford Ranger p45

A delight to drive with none of the vague steering that you might associate with SUV models in this class. p42

IFW June 2012

41

launch report

Mazda CX-5

Mazda has fleets firmly in its sights with the CX-5. It could be on to a winner, reckons John Kendall.

SECTOR Medium SUV PRICE €26,600 – €35,800 (approx) FUEL 4.6 – 6.0l/100km CO2 119 – 144g/km Mazda has been a relatively small player in the fleet market, but the unveiling of its SKYACTIV technology package – a combination of measures to improve fuel efficiency and reduce vehicle weight, should help to improve the company’s fleet presence. The first model to benefit from the new technology is the CX-5 compact crossover, which made its debut at the Frankfurt Show in 2011 and we can expect to see the new Mazda6 before the year is out, which will also benefit from the technology.

Mazda is quick to point out that SKYAC TIV is not just about improving engine and drivetrain efficiency, but about improving efficiency in three key areas – engine, transmission and vehicle weight. In essence that is what all mainstream manufacturers are doing, but Mazda has taken the view that all models will adopt the technologies, not just selected low emissions variants. It has also taken some interesting steps with engine compression ratios, but this is not the place to discuss those.

The important thing is the end results, and on paper those seem to be impressive. For the CX-5, Mazda is offering one 165hp 2.0-litre petrol and two 2.2-litre diesel engines, producing 150hp or 175hp. Six-speed manual and automatic transmission is available with

42

internationalfleetworld.com

both engines and similarly front or four-wheel drive is available with all engines, but for both transmission and drive options, availability will depend on individual markets.

For the all-important fuel consumption and emissions data, the 2.0-litre petrol engine with manual transmission will return 6.0l/100km (139g/km CO2). For the diesels, the manual front-wheel drive 150hp engine should return 4.6l/100km (119g/km CO2), or 5.3l/100km (139g/km CO2) with automatic transmission. Four-wheel drive 150hp and 175hp diesels should return 5.2l/100km (136g/km CO2) or 5.5l/100km (144g/km CO2) with automatic transmission.

These are all good figures for a medium SUV, particularly one with the performance that’s available from the new diesels. Part of the reason is the weight reducing part of the SKYACTIV equation. With weights in the 1,400kg – 1,620kg range, similar to major rivals, all engines are equipped with Mazda i-Stop automatic stop and start to minimise fuel consumption in stop/start traffic. The UK specification models we drove were equipped with a high level of standard equipment, including ESP electronic stability control, hill hold assist, Mazda’s Smart City Brake Support (low speed accident avoidance system), 17-inch alloy wheels, rain-

sensing front wipers and light-sensing lights, dual-zone climate control system, Bluetooth connectivity and cruise control, but specification may differ according to market.

So, it’s another medium SUV, you might think, similar in size to its many rivals. As our drive in the 150hp front-wheel drive and 175hp four-wheel drive manual models showed, the CX-5 is both capable and likeable.

Turn the engine on and the first thing that becomes obvious is how quiet the diesels are.

Noise levels are similar to a petrol engine. The trade-off is road noise, which tends to go with the tyres fitted to SUVs. I would have preferred to hear less. After that, there is little to complain about. Performance is brisk, its fuel consumption is impressive – we registered 5.5 – 6.7l/100km on our test route in Scotland.

And it’s a delight to drive with none of the vague steering that you might associate with SUV models in this class. There’s space to carry five adults in comfort and luggage space is reasonable compared with its competitors.

verdict

The CX-5 looks good, delivers on fuel consumption/emissions, is comfortable and quick. Mazda hopes it will have strong fleet appeal and there is no reason why not.

Chevrolet Volt

Interested in Ampera? Don’t forget the Chevrolet Volt, says Steve Moody.

SECTOR Executive EV PRICE €34,800 approx (excluding tax) FUEL 1.2l/100km CO2 27g/km We’ve driven the Opel Ampera quite a few times already, but amid the hype, it shouldn’t be forgotten that the Chevrolet Volt also shares that European Car of the Year accolade.

For fleets looking to source this clever range-extending vehicle, the obvious strategy is to go to Opel/Vauxhall with its well-established fleet credentials and vast dealer network.

But Chevrolet is keen for a slice of the action too. Although specified more towards the tastes of retail buyers, Chevrolet believes it can make in-roads in the European corporate market, because this car is unique – and that’s not a claim manufacturers can often make, even though they try.

Susan Docherty, president and managing director of Chevrolet Europe said: “The Volt is the first mass-produced car that combines the efficiency and carbon footprint of an electric vehicle with a range and degree of flexibility previously unthinkable in this segment.”

She might be right: the powertrain is certainly very clever. The Volt has a 150hp electric drive unit consisting of two electric motors, with a 1.4-litre petrol engine that never directly powers the wheels, instead being used to produce electricity for the

electric motors when the stored energy in the battery has been used.

What this means in reality is that you have around 60 – 70km of stored energy and another 350km using this on-board generator. The clever bit is how strategic you can be, ‘holding’ your stored energy for areas when it can be used at its most effective and cutting the range extending mode in for energy sapping stretches.

We managed a solid 60km on battery, which then settled down to an overall 3.8l/100km average over 140km, which was made up with at least half of the journey with high-speed motorway driving.

If a driver’s commute is less than 60km, they will hardly use any fuel ever as long as the car is plugged in at home and work.

There are a number of innovations that help economy: the grille has been closed for enhanced aerodynamic efficiency. The car is immensely slippery – as aerodynamic as most sports cars thanks to its sleek body – and by reducing the energy needed to overcome air resistance, Volt aerodynamicists contributed an estimated 12km of electric range, and 70km of extended range. Even its special lightweight 17-inch wheels are made of forged aluminium. Special low rolling-resistance

tyres were developed specifically for the European market to provide optimum electric vehicle range, noise, feel, and dynamic performance.

The electro-hydraulic brake system contributes to recharging the vehicle’s battery pack during braking. It enables 100% regenerative braking, 100% friction braking (traditional disc braking), or any combination of each.

The stationary charging can be done to suit the driver: using a standard power outlet, owners can fully recharge the battery in six hours. The Volt can be charged in three ways. In “immediate” mode, charging begins as soon as the vehicle is connected to an electrical outlet. In “delayed departure time” mode a time is selected via the touchscreen, and charging is automatically completed in time for a scheduled departure.

For the third mode, Volt owners can save money by choosing when the battery is recharged – perhaps at night for example.

verdict

The Vauxhall Ampera is fleet’s first port of call, but the Chevrolet Volt is just as refined, just as stylish and just as clever.

Don’t forget it.

IFW June 2012

43

launch report

Renault Megane

Updated Megane’s better value and looks make a tempting fleet package, says Alex Grant.

SECTOR Lower Medium PRICE €19,800 – €31,300 FUEL 3.5 – 7.7l/100km CO2 90 – 190g/km Renault’s growing electric vehicle range might be stealing the limelight at the moment, but the changes are just as important, if not more so, elsewhere in the range.

In a tough market the Megane – which sits in the most hotly contested sector in Europe – needs to be a very focused product.

Though not as revolutionary as the likes of the Twizy, it has a vital role to play as the carmaker’s biggest-selling car, and the outgoing model has had the tough task of reclaiming the trust lost by its reliability-plagued predecessor, a car frequently found listed as a top offender for warranty-related faults.

Thankfully for Renault, it’s performed well. The carmaker claims a 40% reduction in first-year reliability issues compared to the old car, marked by a four-year “excellent” reliability rating from ADAC, and there was a noticeable improvement in materials throughout. That’s a good basis for netting buyer interest, but prioritising quality cost much-needed distinctiveness, held back further by competitive but ultimately unremarkable fuel consumption figures.

These are both issues solved here.

Renault has updated the styling with a few subtle panel changes, and the end result is a car that’s become much more modern and stylish in line with the rest of the segment.

44

internationalfleetworld.com

There’s also a well-equipped entry-level trim to bring the start price down.

But the most notable cost reductions come from under the bonnet. The refresh introduces the first of Renault’s downsized petrol engines, the 1.2-litre TCe 115, which replaces the less powerful 1.6 16v unit in the outgoing car.

Rivals may have beaten Renault to the post, but this is a capable offering. At 5.3l/100km it offers a 1,132km range, emitting 119g/km CO2, which should make a competitive alternative to a more expensive diesel. Though it lacks the flexibility of Ford’s 1.0 EcoBoost Focus, it’s lively at high revs and doesn’t sound strained when it gets there.

Also new is the 1.6-litre dCi 130, introduced in the Scenic last year. It’s a great fit in the smaller car too, purring through the revs with almost no clatter and offering petrol-like progressive power delivery from under 2,000rpm. Fuel economy is impressive at 4.0l/100km, while CO2 emissions of 104g/km put a wide margin between the Megane and similarly-powered rivals.

But the headline-grabber here is the revised 1.5-litre dCi 110, which now shrinks to a classleading 3.5l/100km and 90g/km regardless of body style, in turn resulting in a 1,713km range – the highest of any car on sale.

Both diesels are eligible for eco subsidies in France and the Netherlands, contributing to a 25% reduction in running costs for the dCi 110 compared to its predecessor. The only cost of the lower output engine is refinement.

It feels a generation behind the dCi 130 in terms of power delivery and engine clatter.

It corners well, too. Behind the brilliant Renaultsport version, it’s easy to forget how well the standard car holds the road.

Ride quality is good, while the brakes and steering feel reassuringly mechanical.

Drivers opting for the range-topping GT Line of the hatchback and Sport Tourer also gain Coupe-derived suspension settings, resulting in even better handling.

The braver styling and marked reduction in costs mean the Megane is now a noteworthy C-segment contender. Ironically, the most efficient models might actually now be cheap enough to make a case for themselves against Renault’s own limelight-stealing electric vehicle range.

verdict

The outgoing Megane had plenty to offer. Its replacement boasts best-in-class economy, superior quality and styling, plus an attractive warranty and assistance programme.

Ford Ranger

The new Ford Ranger is a step change from its Mazda-based predecessor, reckons John Kendall.

SECTOR Pickup PRICE €18,246 – €30,190 (approx) FUEL 8.6 – 10.6l/100km CO2 219 – 281g/km Ford launched the Ranger towards the end of last year and it became the first pickup to be awarded a five-star EuroNCAP rating, scoring 89% for overall safety.

Side curtain airbags are standard on all European Rangers, as are side airbags, three-point seatbelts for all five seats and ESP electronic stability control.

Like the outgoing model, the Ranger is available with three body styles, single cab (Regular), extended cab (Super) and double cab. Two-wheel drive Regular and Super cab models are available, while all double cabs feature four-wheel-drive.

Ford offers two engine options. Most customers are expected to opt for the 2.2-litre 150hp diesel, derived from the Euro5 Transit engine range. This is available with both 4x2 and 4x4 models. Ford quotes combined fuel consumption of 8.6l/100km (228g/km CO2) for 4x4 models and 8.3l/100km (219g/km CO2) for 4x2 models. For models with the sixspeed automatic transmission, Ford quotes 12.5l/100km (264g/km of CO2). Ford is also offering the five-cylinder 200hp common-rail diesel, first seen in the Transit, but dropped from the Euro5 Transit engine line-up. The 200hp engine is only available in double-cab models and Ford quotes combined fuel consumption of 9.9l/100km (264g/km of CO2)

for manual models. There is also a 125hp variant of the 2.2-litre diesel reserved for single cab models with both 4x2 and 4x4 drive.

The variety of engine, body and drive configurations gives the Ranger a gross payload between 1,117kg for the 3.2-litre double cab automatic and 1,309kg for the 2.2-litre single cab 4x4 model. The maximum permissible towing weight for 4x2 models is 2,500kg and 3,350kg for 4x4 models – greater than any rival.

The load area is 1,544mm wide with 1,139mm between the wheel arches and sides are 511mm deep. Bed length measurements are 2,317mm for Regular cab models, 1,847mm for Super cab models and 1,560mm for double cabs.

It’s a larger and altogether more accomplished pick-up than the Mazda-based predecessor, with a cabin that offers comfort and equipment much more like a car. Most buyers will opt for the Transit-based 2.2-litre 150hp diesel, which offers the best performance/economy compromise. The obvious comparison is with the VW Amarok and the VW probably offers better engine refinement, but the Ranger’s slightly gruffer engine note is quite in keeping with a pickup truck.

There is better refinement from the 3.2-litre engine but the rising cost of fuel and the

higher fuel consumption will keep sales low.

We sampled the Ranger both on and off road and arguably Ford has drawn on its ownership of Land Rover to deliver a highly competent off-roader. The load sensing ESP includes hill descent control and trailer sway mitigation among other features.

Specification may vary according to market.

Such control makes off-road driving very simple, even for drivers with little experience, because the system will stop the vehicle from running away downhill when going either forwards or backwards.

On-road, the Ranger proved to be equally competent. The ride is firmer than the Amarok but good by pickup standards, running unladen. The engine has plenty of torque, making the Ranger suitable for towing or demanding off-road use and it can cruise comfortably at highway speeds. The six-speed automatic gearbox is available with both 150hp and 200hp engines and could be a good choice for towing.

verdict

The Ranger offers the practicality of a pickup truck, with impressive on and off-road ability. The range of models available should suit leisure and work users equally well.

IFW June 2012

45

S.W.O.T.

In association with

Volkswagen Up!

Up and away...

Will VW’s entry to the city car sector help fuel even more growth for the company? Fleet Influence assesses its potential.

STRENGTHS Small, but perfectly formed, the up! is cute, fun and effective. It does not try to be retro, yet uses many such features to deliver a thoroughly modern solution.

WEAKNESSES In 75hp form, the economy of a three-cylinder 1.0-litre engine can disappoint when the car is driven enthusiastically. It is a chal-

46

internationalfleetworld.com

lenge to drive carefully when carefully does not reward in terms of driving enjoyment.

If frugality is what you want, think about choosing the 60hp BlueMotion.

OPPORTUNITIES Bring on the five-door. Already available in some countries, it needs to be on offer everywhere and is likely to address some of the practical shortcomings of the three-door.

THREATS Whilst reasonably well packaged and offering a rewarding drive, the up! has plenty of competition, all offering their own unique interpretation of the ‘city car plus’: Ypsilon, Ka, 500, Aygo, Panda and i10 amongst many others.

This is a crowded sector of the market with a wide band of pricing. up! may just prove to be too tame and a little too expensive.

For some, city cars just don’t feature on the radar. Not just because they are so small, but also because they are not ‘proper’ cars. Take the new Volkswagen up!, for example. Hampered from the outset by the common view of many manufacturers that something this small must have a silly name and at worst, a punctuation mark. The version we drove was the ‘high up!’ (right there with the Aygo Go!).

With a length of just 3,520mm, Volkswagen have achieved a class leading wheelbase of 2,420mm – which is 120mm better than the Ford Ka – whilst being 100mm shorter overall. Very impressive design and engineering which results in a rather cute, snub nosed appearance due to the lack of overhang.

Dependent upon country, the up! comes in both three and five-door with either a five-speed manual or auto transmission form (neither the five-door nor the auto are available in the UK yet).

Volkswagen has adopted an enclosed front panel around which a narrow inlet feeds cooling air to the engine. This contributes to the attractive face of the up!, although flat, forward facing, painted body panels rarely bode well for the fly population and stone chips.

Viewed side on, the cleanly sculpted panels deliver an impression of solidity

and the trailing edge of the rear quarter suggests a tall fin, which shields the tailgate. Clever rear light design matched with a full glass tailgate deliver an attractive rear end.

Inside, the first thing that strikes is the ‘painted’ dashboard. Retro, yet perfectly in keeping with this fresh and modern design.

The front seats – especially in the leather look option finish – are very well designed and the driving position offers sufficient adjustment for all but the tallest drivers.

Whilst rear access is very tight, the rear seats are adequate (this may sound critical, but remember just how small this small car is), firm but comfortable.

The ‘Maps and more’ touch screen navigation and infotainment device (VW’s words, not mine) is a neat plug in and slick in all areas except perhaps the phone installation. The need to disable a number of functions on your mobile phone, before you can pair it, is the only thing that is not up to it in the up!

The tiny boot is sufficient to carry the shopping of an anorexic mouse, provided it has no plans to entertain.

Across Europe, there is a single threecylinder, 1.0-litre, petrol engine on offer, either with 60 or 75hp (44/55kW) outputs and both with BlueMotion low-emission variants. Italy only takes the 75hp whilst

France appears to take everything, currently offering 40 variants in both 3 and 5-door form, plus auto transmission as well as the manual 5 speeds.

On the road, the 75hp petrol engine fitted to the high up! has been equipped, courtesy of the VW audio department, with an engine note that suggests a lot more than it actually has. The initial take off requires a handful of revs and even then seems somewhat pedestrian in its progress. However, move up through the gears, keep those revs up and this car starts to surprise you. Even at cruising speeds only legally permitted in certain areas of Europe, this car remains enthusiastic and, more importantly for such a small car, stable – in control.

On rural, winding roads, the up! has a comfortable ride, which remains well balanced even if the road surface does not.

No GT handling here, but good enough.

It is a bit of a tiny dancer.

How to sum up the up!? As a city car, it is OK. That may be to damn with faint praise, but that is because it is better than that. It can actually do the long distance cruise pretty well and so must be considered to be more than a city car. Much more. But, of course, if you want more than a city car, the up! is missing one ingredient: practicality.

You don’t get much of that in a car this small.

CROSS BORDER COMPARISONS List Price

UK

Portugal

Spain

Italy

Germany

France

Euro – Low end

9,295

10,768

9,970

10,600

9,850

9,650

Top end

13,145

14,440

12,680

13,400

14,300

15,480

£S – Low end

7,995

-

-

-

-

-

Top end

11,305

-

-

-

-

-

take up!

take up!

-

take up!

take up!

take up!

move up!

move up!

move up!

-

move up!

move up!

high up!

high up!

high up!

high up!

high up!

high up!

up! black

black up!

black up!

black up!

black up!

black up!

up! white

white up!

white up!

white up!

white up!

white up!

Spec & Trim

Engines

Petrol

1.0 (60PS)

-

-

1.0 (60PS) BlueMotion

1.0 (75PS)

1.0 (75PS) BlueMotion

-

-

IFW June 2012

47

fleet in figures

Europe down, other major markets up European registrations are still being held back by financial problems, but the US is 10% up, Japan is showing strong recovery and China may be down, but the volumes are still large.

The new BMW 3 Series boosted sales by 16.8% in April 2012 compared with 2011.

The latest data from ACEA, the European Vehicle Manufacturers Association, shows that across the EU 27 countries, new car registrations in April were 6.9% lower than in April 2011 at 1,017,912. Taking figures for January to April 2012, ACEA says the market declined 7.5% compared with the same period in 2011 to 4,332,342.

Perhaps predictably, it is the southern European markets suffering the worst effects of the European Debt Crisis that have seen the biggest falls. For the January to April period 2012 compared with 2011, registrations in Greece were down 39.1% to 21,588, in Italy 20.2% to 537,170, Portugal 46.8% to 31,932 and Spain down 7.0% to 260,369.

Registrations in France were down 17.5% to 674,382, but the rate of decline

Top 10 Brands Make

April 2012

April 2011

% Change Feb

April YtD 2012

April YtD 2011

Volkswagen

139,124

150,658

-7.7%

572,485

578,551

-1.0%

Ford

79,632

88,130

-9.6%

365,122

394,032

-7.3%

Renault

70,654

85,025

-16.9%

296,738

384,733

-22.9%

Peugeot

70,557

74,024

-4.7%

288,654

340,471

-15.2%

Opel/Vauxhall

68,798

82,015

-16.1%

296,437

353,486

-16.1%

Citroen

61,782

59,125

+4.5%

252,249

284,808

-11.4%

Audi

61,171

58,997

+3.7%

241,364

231,627

+4.2%

BMW

55,574

53,826

+3.2%

212,912

211,701

+0.6%

Fiat

55,008

61,845

-11.1%

209,146

259,684

-19.5%

Mercedes-Benz

50,896

48,303

+5.4%

203,221

188,736

+7.7%

Source - JATO

48

internationalfleetworld.com

% Change YtD

fall was greatest for light CVs up to followed by the Nissan Altima (112,559) has slowed from 21.5% for Q1.

3,500kg gross vehicle weight, where Q1 and Honda Civic (101,592). The bestThe growth patterns we have seen in registrations were down 11.2% to selling truck could only be the Ford previous months, with big gains in the 368,763. Registrations for vehicles above F-series (191,280).

Baltic states and Eastern Europe appear that weight were down 2.4% to 74,702. to be continuing, with registrations for The largest market, France was down the period up 21.5% in Estonia to 5,593, CHINA 6.6% to 102,450, with the UK falling 20.6% in Hungary to 18,248, 11.2% in Q1 statistics from the Chinese Association 14.7% to 61,688. The third largest Poland to 101,736 and 24.5% in Romania of Automotive Manufacturers show that market, Germany posted a 0.1% increase to 18,272. The large markets such as vehicle sales passed 4,792,665 units, to 52,342.

Germany and the UK are still posting down 3.4% on Q1 2011. At some positive growth at 1.5% to 1,047,702 and 3,773,709 units, passenger car sales were 1.4% to 705,878 respectively. down around 1.25% on Q1 2011 and comGLOBAL Amongst European manufacturing mercial vehicle sales were down some Automotive News reports that in Q1, Toyota groups, Renault and Fiat have seen regis10.6% on Q1 2011 to 1,018,956. topped the global sales charts with 2.49 miltrations fall the most in the first four In terms of production, Chinese manulion vehicles sold. That puts the company months of 2012 compared with 2011. The facturers built 1,880,582 cars in March, ahead of General Motors, which sold 2.28 two companies have seen decreases of 16.9% more than in February. Q1 figures million and Volkswagen with 2.16 million.

21.2% to 364,030 and 18.2% to 286,870 show car production reached 3,771,156, respectively. In terms of individual up 1.1% on 2011. But at 1,013,083, Q1 UNITED STATES brands, Renault registrations are down commercial vehicle production was down Data from Wards Auto shows that for the 23.5% to 289,417, Fiat down 19.4% to 11.4% on 2011.

January to April 2012 period, US light 205,282, Alfa Romeo down 31.8% to vehicle registrations reached 4,637,337, 34,795 and Vauxhall/Opel down 16.4% to up 10.3% on the same period in 2011. GM JAPAN 288,490. Japanese brands are continuing sold more vehicles than its rivals with a Q1 registrations for passenger cars to suffer with Mitsubishi registrations total of 821,707 (-0.4%), ahead of Ford reached 2,396,275, 45.8% up on Q1 2011. down 30.6% to 27,660, Honda down with 707,267 (+5.0%) and Toyota with Mitsubishi was the only manufacturer to 21.6% to 44,588 and Suzuki down 16.6% 665,328 (+12.1%). With 535,808 sales, post a decline in sales, which were 12.2% to 53,354. Lexus is the only Japanese Chrysler is up 33.2% on the same period down on Q1 2011. The highest selling brand to post an increase with registralast year. Other notable performers brand, Toyota, sold 920,291 cars, up tions up 10.6% to 10,007 for the period. include Hyundai, Kia, Mazda, Subaru, 58.25% on Q1 2011. The strong performEven Volkswagen has seen sales slide, BMW and Volkswagen, all posting doubleances from most Japanese manufacturers down 2.0% to 1,031,850. Elsewhere, the digit percentage increases. demonstrate their continuing determinasame manufacturers that have experiThe best selling car in the US so far tion to recover from the events triggered enced growth so far this year are continuin 2012 is the Toyota Camry (142,225), by last year’s tsunami. ing to see registrations rise. The re-launched Jeep is enjoying a Top 10 Models 49% rise in registrations for the period to 8,981 and Land Rover April 2011 % Change April YtD April YtD % Change April 2012 Make is up 38.3% to 36,326, a rise April 2012 2011 YtD attributable to buoyant sales of the Range Rover Evoque, accord42,492 -12.6% 159,773 166,083 -3.8% Volkswagen Golf 37,151 ing to JATO Dynamics. Jaguar registrations are also up 11.6% 28,444 -8.8% 117,108 130,305 -10.1% Ford Fiesta 25,927 to 8,321, due to the arrival of the XF 2.2 diesel, reckons JATO. Kia 31,476 -23.1% 111,615 125,529 -11.1% Volkswagen Polo 24,193 and Hyundai continue to perform strongly with Hyundai up 22,336 -7.8% 86,946 111,359 -21.9% Renault Clio 20,604 9.3% to 144,993 and Kia up 23.2% to 106,017.

24,357 -16.5% 93,838 108,713 -13.7% Opel/Vauxhall Corsa 20,338 VW maintains its place as the 24,445 -18.1% 84,129 104,356 -19.4% Opel/Vauxhall Astra 20,019 best selling brand, with the Golf still the best selling model in 21,008 -6.3% 94,547 92,679 +2.0% Ford Focus 19,677 Europe, the Ford Fiesta in second place and VW Polo third.

16,724 +3.3% 65,516 72,280 -9.4% Fiat Panda 17,268 The European economy is also taking its toll on CV registraBMW 3 Series 17,171 14,707 +16.8% 53,928 53,001 +1.7% tions, which fell 9.6% during Q1 2012 compared with the same Volkswagen Passat 16,863 22,315 -24.4% 72,379 75,842 -4.6% period in 2011 to 451,244. The Source - JATO

IFW June 2012

49

2012/13 fleet calendar International Fleet World’s guide to what’s happening in the fleet industry in the next 12 months – when, where and how to find out more info...

June 6-10 Brno Autotec (CV) www.bvv.cz CANCELLED 14 Fleet Safety Forum Awards, Birmingham, UK www.fleetsafetyforum.org/event/fleetsafetyawards.aspx August 31-9 September Moscow Auto Salon (PC) www.oar-info.ru September 20-27 Hanover 64th International Motor Show (CV) www.iaa.de 22-30 Jakarta, 20th Indonesian International Motor Show (PC, LCV) www.dyandra.com 25-26 National Association of Police Fleet Managers Conference and Exhibition, Peterborough, UK www.napfmevent.org.uk 29-14 October Paris Mondiale de l’Automobile (PC, LCV) www.mondial-automobile.com October 10-12 Kiev International Motor Show, TIR’2012 (CV) www.autoexpo.ua 11-12 Annual Conference of European Leasing and Automotive Rental Industry, Cannes, France www.annual-convention.eu 20-28 Sydney International Motor Show (PC, LCV) www.motorshow.com.au 24-4 November São Paulo, 27th International Automobile Trade Show (PC, LCV) www.salaodoautomovel.com.br 26-28 Oslo Motor Show (PC) www.messe.no November 2-11 Istanbul International Auto Show (PC) www.odd.org.tr 23-2 December Guangzhou International Automobile Exhibition, China (PC, CV) www.autoshow-gz.com 30-9 December Los Angeles Auto Show (PC) www.laautoshow.com December 2-6 Riyadh International Motor Show, Saudi Arabia (PC) www.recexpo.com 7-16 Bologna Motor Show, International Automobile Exhibition (PC, LCV) www.gl-events.it January 2013 18-20 Tokyo Auto Salon 2013 www.tokyoautosalon.jp 19-27 North American International Auto Show, Detroit (Industry Preview, 16-17) (PC) www.naias.com February 8-17 February Chicago Auto Show (PC) www.chicagoautoshow.com March 7-17 Geneva 83rd International Motor Show (PC) www.salon-auto.ch KEY: PC – passenger cars // LCV – light commercial vehicles // CV – commercial vehicles 50

internationalfleetworld.com

A whole new online interactive experience!

Designed specifically for the web, EV Fleet World is a dynamic all-new, interactive digital magazine.

Subscribe for free at fleetworldsubscriptions.co.uk to receive your monthly issue, direct to your inbox.

Issue 004

in association with

EV NEWS

UE S IS

4 00NLINE

HIGHLIGHTS

O

W NO

T ER ght P EX insi V eE et fle m th try fro dus in C MI e A N iv DY ract nt e e int cont s EV new &

ROAD TEST VAUXHALL AMPERA DIGITAL MAGAZINES FOR THE 21st CENTURY

evfleetworld.co.uk

SIMPLY CLEVER

Cutting edge technology that helps cut costs.

ŠKODA Superb Combi. When it comes to a business, your company is only as reliable as its partners. Adding a ŠKODA vehicle to your fleet gives you the much needed quality and reliability, especially in today’s economic storm. Our state-of-the-art technology and attention to detail finds its way into every aspect of our cars – design, development, production, safety, running costs and also after sales service. Your fleet choice of ŠKODA Superb Combi will fully match your company‘s high standards. Consequently the car has earned the ‘Best in Class’ Running Cost in Spain, France, Italy and UK, besides also being nominated as the ‘Best in Class’ Residual Value forecast in Germany according to Eurotax-Glass’s.

www.skoda-auto.com/fleet

Combined fuel consumption and CO2 emissions for the Superb Combi model: 4.4–10.2 l/100 km, 114–237 g/km