International Fleet World June 2013

The

oPel Commercial Vehicles

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With ecoFLEX technology. Now in our full range.

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THE NEW SEAT LEON Technology to enjoy

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ENJOYNEERING THE MOST BEAUTIFUL WAY OF DRIVING A FUNCTIONAL CAR Sleek and eye-catching, the new SEAT Leon is beautiful and practical. The Leon is designed for maximum performance with low consumption and great safety, making it a powerful choice for fleet. The latest technology is part and parcel of the Leon. Enjoy maintenance-free SEAT Full LED headlamps that light your way as well as advanced safety features like our Automatic Post-Collision Braking System and the Tiredness Recognition System, for which the Leon received the maximum 5-star Euro NCAP rating. The user-friendly EASYCONNECT system allows you to operate the Leon’s large array of infotainment and navigation options through a single touchscreen. Form and function live together comfortably in the new SEAT Leon.

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SEAT FOR BUSINESS Average consumption: 3.8-6.0 l/100 km. Average CO2 mass emissions: 99-139 g/km.

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OPEL COMMERCIAL VEHICLES

THE NATURAL WAY OF COST REDUCTION. With ecoFLEX technology. Now in our full range.

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

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

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VIEWPOINT

CONTENTS

It is difficult not to seize on the rise in the European car market in April – the first month since September 2011 that registrations have risen, and see it as the start of a revival in the market. But it’s clear that two more selling days compared with April 2012 certainly had something to do with it.

The UK market seems to be in a fairly buoyant mood, but speak to people in the industry and they still see any recovery as a fragile affair. Has Europe got over the worst? There seems to be evidence that the rate of decline in sales is slowing in the worst affected markets – Spain, France, Italy and Portugal – but at the same time, other previously buoyant markets like Germany and the Netherlands seem to be struggling now. Let us hope that talk of a prolonged Japanese-style recession is not what is waiting for us.

In the meantime, it is clear that the European manufacturers who sell globally are quite understandably putting their money where the markets are and that still means China and the Americas. Despite a weakening in the market earlier in the year, car sales in China have risen 16.2% in the January to April period, compared with that in 2012. The growth may not be so positive in North America, but it still represents continuing growth, while in Central and South America, the market is growing strongly.

We need to see greater economic stability in Europe before it filters through to individual industries and that may still be further away yet.

04 News Analysis 10 EV News Analysis 12 Risk Management How diagnosis of sleep apnoea could help manage risk in fleet.

17 ECO Marathon 2013 Sign up to Europe’s new economy driving event.

20 2013/14 Fleet Calendar 22 Shanghai Auto Show Non-stop launches in Shanghai.

28 Risk Management Are your drivers distracted?

32 FOCUS ON...

CZECH REPUBLIC.

35 Remarketing 36 Strategy European residual value confidence.

38 FLEET PROFILE Kia Motors

45 Launch Report Mercedes-Benz E-Class / Peugeot 2008 / Mercedes-Benz Sprinter / MAN TG.

50 Fleet In Figures Analysing the latest ACEA sales charts.

17 28 38 47

John Kendall Editor

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IFW June 2013

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news analysis

Audi plans further growth Audi is investing €11bn in expanding its production network, including plants in Hungary, China and Mexico, and says it is improving its competitiveness in the major markets in Europe, Asia and North America.

Speaking at the 124th Annual Shareholders’ Meeting of the company in Neckarsulm, Board of Management chairman (CEO)< Rupert Stadler, stated: ”We are now in a crucial phase, because we are positioning Audi for the next surge of growth.” By 2015, Audi will implement the biggest investment programme in the company’s history, with a total volume of approximately €11bn. Nearly half that amount, €5.3bn, will be applied to strengthen and expand the German plants in Ingolstadt and Neckarsulm.

Audi expects to sell more cars in 2013 than in its record year in 2012, with sales in the first four months of the year up 6.7% to 503,000. Production of the A3 saloon is due to begin in Hungary in June. This will be followed by a new plant at Foshan in China later in 2013, built with joint venture partner FAW. By 2016, the new plant in Mexico is scheduled to be producing the Q5 at San José Chiapa.

Ford expands North American capacity

Ford will add a further 200,000 units of capacity in its North American manufacturing plants this year, following a 400,000-unit capacity increase last year. This will be achieved by shortening the summer shut down from two weeks to one and raising production by 40,000 units. In addition, the company will recruit over 3,000 hourly paid workers to meet customer demand for the best-selling models. ”To meet surging customer demand for our top-selling cars, utilities and trucks, we are continuing to run our North American facilities at full manned capacity, and we will add 200,000 units of annual straight-time capacity this year,” said Jim Tetreault, vice president of North America Manufacturing. ”Approximately 75% of our plants are running at a three-crew, three-shift or four-crew pattern in order to ensure we’re getting more of our products into dealerships.” Increased production will affect Explorer, Fusion and F-Series models.

Mexico launch for Leon SEAT will launch the five-door Leon in Mexico during June and the three-door Leon SC towards the end of the year. The launch will help to consolidate SEAT’s position as the ninth best-selling brand in the country.

SEAT sales have grown by over 60% there over the past two years from 13,380 in 2010 to 21,114 in 2012 and by 8.5% in the first four months of 2013. The company plans to extend its current network of 50 dealers in the coming months.

Mexico is currently SEAT’s sixth most important market and the second most important outside Europe, after Algeria. Global sales have risen by 11.5% between January and April 2013. Germany is the brand’s strongest market following sales growth of 30.6% to the end of April to 23,702, ahead of SEAT’s home market, Spain, where sales have risen by 10.7% to 22,356.

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Nissan meets FY2012 target

Nissan announced its financial year 2012 results in May for the year ending 31 March 2013, filed with the Tokyo Stock Exchange. The company saw net revenues of €90.17bn, with net income of €3.21bn. The company announced an operating profit of €4.90bn and an ordinary profit of €4.96bn. Nissan claims a record sales high of 4.914m units during the year, up 1.4% on FY2011.

Carlos Ghosn, Nissan president and chief executive officer, said: ”Fiscal 2012 was marked by both successes and challenges for Nissan. We ended the year with a sound balance sheet, record global sales, an improved brand, and an expanded presence in critical growth markets. Equally important, we have taken countermeasures that will enable us to navigate the headwinds that lie ahead and resume significant growth. As we enter the third year of the Nissan Power 88 mid-term plan, I am confident we have the right strategy in place to deliver on our business objectives.”

Sales were up 5.4% in the US to 1.14m units, while sales fell 5.3% in China to 1.18m, affected by the islands dispute. In Europe and Russia, sales dropped 7.5% to 660,000 units, while in Japan, sales slipped 1.3% to 647,000 units. Sales rose in Thailand, Brazil and the Middle East, up 16.3% to 959,000.

Nissan is forecasting a global sales increase of 7.8% to 5.3m units in FY2013. Launches planned for the coming year include the Datsun brand.

For FY2013, Nissan is forecasting an increase in revenue, profit and income, although changes to reporting standards mean that under the new accounting methodology, revenue is expected to be €85bn, operating profit €5.0bn, ordinary profit €5.29bn and net income €3.44bn.

Volvo Cars breaks even Volvo Cars broke even in 2012 with a full-year operating income of €2.11m, down from €237m in 2011, with revenues of €14.6bn, compared with €14.8bn in 2011. ”We are in the midst of perhaps the most intense transformation in the group's history,” said Håkan Samuelsson, president and CEO of Volvo Cars. ”Despite a challenging market situation we continued to invest in important future technologies, such as VEA (Volvo Engine Architecture) and SPA (Scalable Product Architecture). At the same time we managed our cost side effectively. This balance is vital as we build our future as a strong independent car manufacturer in the premium segment. ”Our strategy for 2013 is to retain market shares in the countries in which we operate by strengthening our presence in our segments, but with even more precision than before,” Samuelsson continues. ”The highly competitive climate is likely to continue in 2013, and impacted by macro trends we expect our sales in 2013 to be on par with last year. At the same time, we are well-positioned to capture positive sales trends and new customers, with an almost entirely renewed product range about to be launched into markets.”

First EV taxi fleet for Hong Kong Chinese EV maker BYD handed over a fleet of battery electric taxis in Hong Kong in late May. 45 BYD e6 taxis have joined the fleet of the Hong Kong Taxi and Public Light Bus Association. The five-seat e6 crossover model is powered

by Iron-Phosphate batteries, with a re-charge time of two hours using AC charging equipment developed by BYD. The company claims a 300km range on a full charge.

BYD and its partner Sime Darby Motors Group are setting up 47 chargers in nine locations near car parks throughout Hong Kong initially. The charging stations are already established across Hong Kong Island, Kowloon, New Territories and Lantau Island.

IFW June 2013

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news analysis

GM sources Nissan light CV for North America GM and Nissan have announced an agreement to produce a light commercial vehicle for sale in the US and Canada. The vehicle will be based on the Nissan NV200 and will be available from autumn 2014. The NV200 is on sale in Europe, North America and other markets. ”Our fleet customers have asked us for an entry in the commercial small van segment, so this addition to the Chevrolet portfolio will strengthen our position with fleets and our commercial customers,” said Ed Peper, U.S. vice president of GM Fleet and Commercial Sales.

The GM model will be badged Chevrolet City Express and will be Chevrolet’s first entry into the small van sector in North America. It will be powered by a 2.0-litre four-cylinder petrol engine, driving the front wheels through a CVT automatic transmission. Other equipment will include ESC electronic stability control, ABS brakes, 15-inch steel wheels, a fold-down passenger seat with seat back tray table, 20 load lashing points in the load area, six roof rack mounting points and six airbags as standard.

Europcar announces Q1 results European car rental provider Europcar has announced its Q1 financial results. Compared with Q1 2012, revenue is down -2.5% to €381.9m, adjusted operating income is up +105.4% from -€2.5m to €0.1m, adjusted corporate EBITDA has improved by 18.1% from -€28.5m to -€23.3m and net debt has increased by 1.0% to -€2,898.1m. ”In a quarter of traditionally low activity for our industry and in a challenging economic environment, Europcar succeeded in improving its Corporate EBITDA, despite a slowdown in revenue,” said Roland Keppler, chief executive officer of Europcar group. ”The many initiatives taken on costs and cash flow in the framework of the group’s Fast Lane 2014 transformation plan combined with improved fleet utilisation and new customer approach, yield tangible impact. Europcar is increasingly well positioned to consolidate its results and to capture the longterm growth perspectives of the mobility markets.”

A new management team for the company appointed in February 2012 has already brought about change. The lowcost brand catering for leisure business InterRent has been rolled out in Portugal, France, Spain and the UK, with a German branch the most recent addition. While there has been increased activity in the company’s leisure sector, this has been offset by a slowdown in corporate business.

VW builds new Chinese plant

Electric bike fleet for Hong Kong government The Hong Kong government has also joined the electric fleet initiative by taking delivery of 59 2012 Zero S electric motor cycles. The majority of the electric bikes will be used by the Hong Kong Police, with a smaller allocation for the Hong Kong Airport Police and some for use by the Hong Kong Agricultural, Fisheries and Conservation Department for use at country parks. In addition, the Transport Department will use some of the motorcycles for rider examinations. The deal was completed by Zero Motorcycles’ first eastern Asia distributor, Yuen Ho Trading, based in Hong Kong.

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Volkswagen and its Chinese joint venture Shanghai Volkswagen have begun construction of a new plant in Changsa, in Hunan Province, south-central China. The plant is due to be completed by the end of 2015 and will have an installed capacity of around 300,000 vehicles per year. It will be a full production facility with press shop, body shop, paint shop and final assembly areas.

The Changsa plant is one of seven new plants to be built

by VW and its joint ventures, Shanghai Volkswagen and FAW Volkswagen. Shanghai Volkswagen currently operates vehicle plants in Shanghai and Nanjing as well as Yizheng in Jiansu province. Two more factories in Ningbo and Urumqi are currently under construction. FAW Volkswagen builds vehicles at plants in Changchun and Chengdu, with another under construction at Foshan in southern China.

for the latest news, visit internationalfleetworld.com

BMW targets new plants and e-Mobility BMW is set to continue investment in the company’s future with a new plant planned for Brazil, expected to produce up to 30,000 vehicles a year. Production is due to begin in 2014, with over €200m investment in Brazil in the coming years.

By the end of 2014, the company will have introduced around 25 new models.

10 of these will be completely new. Development costs will continue to rise though, says the company. ”In this way, we are preparing for the company’s next phase of growth and making the BMW Group more competitive for the future. Anyone who wishes to shape the mobility of tomorrow must make the necessary investments today,” commented chairman of the Board of Management of BMW AG, Norbert Reithofer, at the recent Annual General Meeting. ”We aim to maintain a good balance of sales between the three major regions of the world: Europe, the Americas and Asia,” emphasised Reithofer. In 2012, 18.9% of sales were made in the US and 17.7% in China.

The company will launch the i3 EV by the end of the year, featuring carbonfibre bodywork and an aluminium chassis, resulting in a weight saving of between 250kg and 350kg compared with a conventional EV.

in brief...

Toyota most valuable brand Toyota returned to the top slot in the BrandZ Top 100 Most Valuable Global Brands 2013. The company’s brand value rose by 12% to €18.6bn ($US 24.5bn) in the past year. The company has been placed in the top slot six times since 2006.

LMC Automotive and CARCON Automotive form alliance LMC Automotive and CARCON Automotive have announced that the two companies have reached an agreement to provide market intelligence on the South American automotive market. CARCON Automotive will be LMC’s exclusive representative in South America, focusing on Brazil and Argentina. They will also collaborate on forecasting and consulting projects.

Iveco wins electric deal in Iraq

Nissan and CarCharging expand US EV charger network Nissan has joined forces with The CarCharging Group to expand the network of fast chargers for electric vehicles across the US. The two companies will work together to determine where the rapid chargers should be in key regions across the US by the end of the year.

Initially the companies plan to introduce 48 Nissan-branded quick chargers, primarily in California and on the US east coast. CarCharging will target consumers with information about the EV charging network. This will include the opportunities for drivers without a garage, the benefits of a public EV charging network and the subscription charges.

CarCharging is also developing a mobile application to provide real-time charging station location details, with turn-by-turn navigation to all charging stations in the network. LEAF drivers and participating Nissan dealers will be given charge cards free of charge, giving access to the ChargePoint Network across the US.

Iveco has signed an agreement with the Ministry of Electricity in Iraq to supply around 1,660 vehicles over three years. The deal is valued at €125m and specifies the delivery of vehicles from Iveco’s light and medium ranges between 3.5 and 18tonnes GVW, to include Daily and Eurocargo models.

AGA grows in 2012 Allianz Global Assistance has announced a 20.1% increase in operating profit to €113m and 9% increase in turnover to €2.238bn in 2012.

Roadside assistance grew by 8.8% and represents 38% of Group turnover, including growth of 26% in the Asia Pacific region.

IFW June 2013

07

With distance function, park assistance function and role model function.

The new E-Class. Efficiency in top form.

A Daimler Brand

The new benchmark for efficiency. With a combined consumption of just 4.1 l/100 km, the E 300 BlueTEC HYBRID has CO2 emissions of only 107 g/km. That makes it one of the most economical models in its class and the ideal vehicle for any fleet. www.mercedes-benz.com/fleet

Fuel consumption urban/extra-urban/combined: 4.2–4.1/4.2–4.1/4.2–4.1 l/100 km; combined CO 2 emissions: 110–107 g/km.

Figures do not relate to the specific emissions or fuel consumption of any individual vehicle, do not form part of any offer and are intended solely to aid comparison between Provider: Daimler AG, Mercedesstraße 137, 70327 Stuttgart

different types of vehicle. The vehicle shown features optional equipment.

EV news analysis

Streamlining and high demand put Tesla in the black Tesla Motors has become a profitable business during the first quarter of 2013, for the first time in its 10-year history, telling shareholders it expected to exceed its global delivery target of 20,000 Model S electric luxury cars by the end of the year.

The California-based carmaker recorded a $15m (€11.6m) profit for the first quarter, a GAAP profit of $11m (€8.6m), and as well as supplying EV drivetrain parts to Toyota and Mercedes-Benz, production of its own large executive sized Model S is ramping up. This totalled 5,000 units for the three-month period, with 400 leaving its factory each week.

Tesla said it was counting 4,900 of these in its revenue, exceeding its Q1 guidance of 4,500 units.

During the second quarter, the carmaker is expecting to produce another 5,000 cars of which around 10% will be the first European models.

The rate of orders for the long-range electric saloon car is said to be exceeding 20,000 per year globally, and Tesla expects to have delivered 21,000 vehicles during 2013.

Margins are also increasing on each Model S. Manufacturing times are down by 40% compared to December, helped by a stabilised supply chain, while better inventory management had offered a $30m (€23.3m) saving in the first quarter as well as reducing expenditure on logistics. Raw materials usage

was down by 26%, despite an 80% rise in unit production.

The carmaker said it would continue to streamline its operations, paving the way for a more affordable thirdgeneration electric car, which is rumoured to be targeting the compact executive segment. A total of 30 service locations and 15 stores will open worldwide by the end of this year, bringing the totals to 59 and 49 respectively, as Tesla establishes its European network ahead of the Model S sales launch this summer.

Low-CO2 Lexus GS hybrid will target diesel dominance Lexus has unveiled its diesel-rivalling GS 300h saloon at the Shanghai Motor Show, with a target of under 110g/km CO2 emissions offering a competitive rival to the most efficient German executive models.

The latest GS launched in Spring 2012, including a lower emission GS 450h hybrid. Sales totalled 47,787 worldwide last year, six times its predecessor’s final full-year volume, but a low-carbon drivetrain is a vital part of the line-up in CO2-taxed Europe and with 141g/km emissions the GS 450h has lacked the tax efficiency of diesel-powered rivals.

This new drivetrain, shared with the forthcoming IS 300h, uses a four-cylinder petrol engine and electric motor, claimed to emit 110g/km CO2. Figures which will put it close to the current class-leader, the 109g/km Mercedes-Benz E300 BlueTEC Hybrid and ahead of the 123g/km BMW 520d Auto and 132g/km Audi A6 2.0 TDI Multitronic.

Lexus GB general manager of fleet and remarketing, Neil Broad, told Fleet World in a recent interview that the manufacturer was targeting the contract hire and leasing industry with a combination of competitive pricing and low carbon.

Based on the IS 300h, this would position the most efficient GS to date similarly to an automatic BMW 520d.

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Volkswagen Group puts focus on plug-in hybrids The Volkswagen Group has identified plug-in hybrids as an area of ‘great potential’ according to chairman of the board of management, Prof. Dr. Martin Winkterkorn.

Speaking at the 34th International Vienna Motor Symposium, Winterkorn said the group’s new modular component system, already used in the latest Golf, A3, Leon and Octavia and soon to underpin numerous body styles in the B, C and D-segment, would allow the carmaker to fit every kind of drive system into all of its new models.

Plug-in hybrid versions of the Audi A3 and Porsche Panamera are set for market introductions in the near future, closely followed by the Volkswagen Passat, Audi A6 and Porsche Cayenne, Winterkorn told delegates. ‘Over the coming years we will electrify all vehicle classes in this way and help electrically powered motoring to make the breakthrough.’

in brief...

200 EVs to be put to test in Spain Spanish utility provider Endesa has partnered with Mitsubishi in a fouryear, €60m project to introduce 200 electric vehicles and 229 charging stations across the Spanish city of Malaga. The Zem2All (Zero Emissions to All) project will allow the companies to examine grid impact and usage for an in-depth study.

U.S. federal fleet targets 10,000 hybrids under new initiative The United States General Services Administration (GSA) has announced a fleet consolidation initiative aimed at boosting the federal fleet’s hybrid content to 10,000 vehicles.

Under the initiative, the GSA will fund any incremental cost of replacing eligible vehicles with new hybrid models, with a target of reducing the federal fleet’s fuel use by 3.8m litres per year.

Consolidating with GSA Fleet will also allow departments to benefit from endto-end fleet management services for a low monthly rate, including acquisition and disposal, maintenance control, accident management, fuel and loss prevention services and detailed data to help manage operations.

‘Providing a hybrid federal fleet is an essential part of GSA’s commitment to making government agencies as efficient and effective as possible,’ said GSA acting administrator, Dan Tangherlini.

Hybrids bring class-leading efficiency to new S-Class Mercedes-Benz has revealed that its new S-Class range will include both diesel-electric and plug-in hybrid drivetrains, the latter offering CO2 emissions of 74g/km when it joins the range next year.

The lighter and more aerodynamic luxury saloon will be available with the same modular hybrid system as in the E-Class. In Europe, this will use the 2.1-litre, fourcylinder diesel engine and offer 4.4l/100km fuel economy with CO2 emissions of 115g/km. Markets with a preference for petrol engines will be offered a V6 petrol version, with best in class emissions compared to Audi, BMW and Lexus luxury hybrids.

Next year, the range will grow to include the carmaker’s first plug-in hybrid.

The S500 Plug-in Hybrid will emit 74g/km with an official combined fuel consumption figure of less than 4.0l/100km.

90% production increase for Volvo’s first hybrid Volvo Cars has announced it will almost double production of the V60 Plug-in Hybrid in Europe to 282 units per week as a result of strong demand in the region. The manufacturer is targeting 10,000 unit sales for the diesel-electric plug-in hybrid during 2014, with Holland, Belgium and Italy among its biggest markets.

Microsoft UK adds first EVs to fleet Microsoft UK has taken delivery of two Nissan LEAF company cars, following a five week company-wide trial of the electric vehicle. A pair of quick charging units will be installed at its headquarters in Reading to allow new and future LEAF company car drivers to recharge at work.

Mitsubishi to recall nearly 4,000 plug-in vehicles in Japan Mitsubishi is recalling 3,839 Outlander Plug-in Hybrids and 68 MicabMiEVs in Japan, following an investigation into recent battery faults. The manufacturer said a screening process during production had generated debris which had led to a short circuit in the batteries. This has now been removed. Owners have been contacted for recalls and European versions of the i-MiEV and forthcoming Outlander PHEV are understood to be unaffected.

IFW June 2013

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risk management

SLEEPING ON THE JOB An early diagnosis of OSA could help manage risk in your fleet, says ResMed. bstructive Sleep Apnoea (OSA) affects around 3% of the population in the UK alone, and is considered to be responsible for up to 20% of road traffic accidents*. Those most at risk of being diagnosed with the condition are overweight, middle-aged men. Unfortunately, due to spending hours behind a wheel each day, professional fleet drivers find themselves at an increased risk of suffering from sleep apnoea.

OSA affects breathing due to a partial or total closure of your airway behind the tongue while you’re sleeping. This results in episodes of brief awakening to restore normal breathing. In severe cases this can be hundreds of times a night, but on most occasions you will be completely unaware this is taking place.

It can be extremely difficult to recognise that you suffer from sleep apnoea due to the fact that the most noticeable symptoms take place while you are asleep. However, your partner may have noticed you consistently snore or you stopping breathing during the night. It’s imperative you do not ignore these signs as they could be a symptom of OSA. For mild snorers, lifestyle changes such as weight loss or off the shelf solutions may help, but persistent loud snoring should be taken seriously and investigated further by a doctor as you may have a more serious problem that requires treatment. Other symptoms include excessive daytime sleepiness, waking with a dry mouth/sore throat, difficulty concentrating, irritability, high blood pressure and depression.

If you think you are suffering from sleep apnoea you should make an appointment to see your doctor and mention your symptoms. Your doctor will refer you to

O

Continuous Positive Airway Pressure treatment is prescribed for sleep apnoea

a sleep clinic to confirm your diagnosis. If you are a commercial driver, mention this too so that your treatment can be fasttracked where possible.

Once diagnosed; you will need to notify your relevant driving licence authorities and your employer. There is a common misconception that this will mean that you will lose your licence. This simply isn’t the case. You may have to stop driving for a very brief period. Since there is a quick and effective remedy, this diagnosis does not mean the end of your driving career.

Every case is different, and you will need to follow the advice of your doctor, but once you are successfully treated, and this has been confirmed by the sleep clinic, you should be able to resume driving normally and will be much safer on the roads.

Beccy Mullins, head of Patient Services at ResMed and registered sleep nurse says; “Sleep apnoea is a serious condition that often goes unrecognised but is easily treated. Many sleep centres will, where possible, fast track those who drive for a

living, ensuring treatment is commenced quickly and successfully so as to have minimum impact on their career.”

So how is sleep apnoea treated? If you are diagnosed, you will most likely be prescribed Continuous Positive Airway Pressure treatment. This is usually referred to as CPAP and involves wearing a mask at night, connected to a small CPAP device which delivers a stream of air whilst you sleep, keeping your airway open, and ensuring a healthy night’s sleep.

Most importantly, the signs and symptoms of OSA need to be recognised initially so that the driver can move on to be diagnosed and treated. This will restore energy, improve quality of life, and prevent serious illness in the future.

If you are concerned about sleep apnoea symptoms, diagnosis and treatment visit: www.realsleep.co.uk for more information. *SleepMed 2010

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SIMPLY CLEVER

The New ŠKODA Octavia Combi.

For your fleet with amazing dimensions.

Combined fuel consumption and CO2 emissions for the Octavia Combi model: 3.8–6.1 l/100km, 99–141 g/km

Timeless design, unrivaled interior space, modern engines that are almost exclusively available in Green tec versions and high level of safety supported by advanced driver assistance systems, all that and much more is offered by the New ŠKODA Octavia Combi. A car that will perfectly represent your company while at the same time it will delight you in terms of operational costs and residual value. The new Octavia is available in many motorizations including a two-litre diesel with an engine power of 110 kW. Contact us and we will find the best solution just for you. At the same time we will most gladly introduce you to other ŠKODA car models. www.skoda-auto.com/fleet

INNOVATIONS KEEP YOUR BUSINESS RUNNING. AND DRIVING. A revolutionary concept: the all-new BMW 3 Series Gran Turismo brings together head-turning aesthetics with the most spacious interior ever in a BMW 3 Series.

An innovation, which combines opposites â&#x20AC;&#x201C; even when it comes to performance and economy: in fact, the powerful BMW 318d Gran Turismo* with its 143 hp boasts stunning CO2 emissions of just 122-119 g/km. In other words: saving resources has never been more fun. Find out more at www.bmw-corporate-sales.com

BMW CORPORATE SALES.

BMW 318d

4.6 l /100 km 105 kW (143 hp)

* BMW 318d Gran Turismo: EU fuel consumption: 4.6-4.5 l/100 km (combined), CO2 emission: 122-119 g/km (combined)

The all-new BMW 3 Series Gran Turismo

www.bmw-ics.com

Sheer Driving Pleasure

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NEWS from the global fleet community

INSIGHT from experts into the fleet industry

ADVICE best practice for running your fleet

NEW EVENT!

in partnership with

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ALD Automotive

ECO Marathon Paris to Frankfurt 9-10 September 2013 An economy driving event challenging fleet operators and motor manufacturers to see who can make the 600km journey from Paris to Frankfurt using the least fuel, or with the greatest improvement over the manufacturers’ published fuel consumption figures How low can you go?

What is economy driving?

How will the winners be decided?

Fuel consumption, CO2 emissions, smarter driving, journey planning... all key issues for fleet decision makers both within individual markets, and across the borders.

Fleet World magazine has been organising high-profile economy driving events in the UK for over 14 years. Now it’s time for fleet managers across Europe to rise to the challenge of the first ALD ECO Marathon – an economy driving event organised by International Fleet World magazine, in partnership with ALD Automotive and TRACKER. The ALD ECO Marathon will take place on Monday 9 and Tuesday 10 September 2013.

The event starts in Paris on the morning of Monday 9 September, with an overnight stay in Luxembourg, before carrying on to the finish in Frankfurt on the afternoon of Tuesday 10 September, timed to coincide with press day at the Frankfurt Motor Show.

Economy driving, smarter driving, eco-driving – different names for the same thing - using skilful driving techniques in order to get from A to B using as little fuel as possible. It sounds very simple at first, but there are many considerations to take into account, such as the time required to complete the journey, the route taken, the style of driving adopted and event the vehicle used.

That’s why the ALD ECO Marathon will be a “real world” test of driving skills where drivers compete in standard production fleet cars on a variety of roads. And they will need to complete the course within time limits which ensure that they keep up with traffic at all times.

There will be two overall winners in the 2013 ALD ECO Marathon.

The first will be the driver who completes the journey using the least possible amount of fuel over their chosen route, in other words the fewest litres per 100km.

The second will be the driver who demonstrates the highest percentage improvement over the figures published by the motor manufacturer for the vehicle used. This permits a wider range of vehicles to take part in the event and recognises that many fleets operate larger vehicles, not just diesel-powered superminis. ¡

FRANKFURT

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ALD Automotive

ECO Marathon Paris to Frankfurt 9-10 September 2013

How do we measure fuel economy?

The benefits of smarter driving

There are many devices, including factory-fitted items, which can measure fuel economy and many of them are very accurate. But for the sake of consistency, the MPG Marathon is based on a brim-to-brim measurement of how much fuel is used over the duration of the course.

With modern fuel tanks coming in numerous shapes and sizes, each car’s tank is brimmed with fuel with one side jacked up to ensure that there is no air trapped anywhere inside the tank. Competitors can check fuel levels before the event, after which time the fuel cap is sealed for the duration to avoid enroute top-ups.

Prizes will be awarded for the best overall fuel economy and the best percentage increase compared to the manufacturer’s figures, both in each vehicle class and overall for the event.

Reduced fuel costs Petrol and diesel prices have reached new records recently, and wasted fuel is no longer something businesses and private drivers can ignore. The MPG Marathon proves that not only is car choice important, but that correct driver training can help save substantial fuel costs, too.

Reduced environmental impact Never have companies had a more apparent responsibility to do their bit to save the environment. No matter how big or small your fleet, greener driving means instant, cost-free reductions in carbon emissions, in turn helping to slash the environmental impact of day-to-day business.

Reduced maintenance Gentle driving has benefits that go beyond simply reducing fuel consumption. Smoother drivers also cause less wear and tear on vehicles, meaning they spend less time off the road for maintenance and, in turn, cost less to run.

Improved safety Eco-conscious driving is also safer. Erratic drivers don’t only use more fuel, they’re more prone to accidents, too. The MPG Marathon encourages gentle, considerate and smooth driving, contributing to a safer fleet, lower insurance costs and less chance of having cars out of action for repairs.

Reduction in stress levels More relaxed driving also has benefits for employee health. Erratic driving causes stress levels to rise, which can affect concentration, make drivers tired and increase the risk of heart problems.

Encourage drivers to slow down and take it easy on the road, and you’ll have a happier, healthier and more productive fleet.

How you can enter the ALD ECO Marathon...

You can request a place by completing the registration form at – www.aldecomarathon.com.

We give priority to entrants working for fleet companies and those with ecodriving experience, but there are plenty of opportunities for others to get involved

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About ALD Automotive ALD Automotive is the vehicle leasing and fleet management business line of the Société Générale group, operating 960 000 corporate vehicles in 37 countries.

Being the global reference in providing innovative and sustainable mobility solutions, ALD supports everyday the success of its customers via personal services and reference quality.

We deliver flexible solutions made simple inspired by our culture for excellence, exceeding fleet managers and employees expectations.

Driven by passion, vision and expertise, ALD develops true partnerships creating value for all our stakeholders.

About TRACKER TRACKER is one of the world’s leading suppliers of vehicle tracking services, with over a million systems installed to date. Celebrating 20 years of market-leading success, TRACKER’s award winning fleet tracking systems help companies meet the challenges facing them today.

TRACKER Fleet incorporates groundbreaking, patented technology, providing important cost-saving benefits, not just for the short-term by identifying fuel inefficiency, but also longer-term by providing valuable insights into driver and business behaviour.

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2013/14 fleet calendar International Fleet World’s guide to what’s happening in the fleet industry in the coming months – when, where and how to find out more info...

June 4-5 The Blue and Amber Light Fleet Exhibition, Telford International Centre, Telford, UK (Emergency services) www.napfmevent.org.uk 15-23 Sofia International Motor Show, Bulgaria (PC) www.svab.bg 20-30 Buenos Aires International Motor Show, Argentina (PC, LCV) www.elsalondelautomovil.com.ar July 11-14 Seoul Auto Salon 2013, Hall A COEX, Seoul, South Korea (PC, LCV) www.seoulautosalon.com September 10-14 Moscow Auto Salon COMTRANS, Russia (LCV, CV) www.oar-info.ru 10-22 Frankfurt International Motor Show, Germany (PC) www.iaa.de October 4-13 Bucharest International Motor Show, Romania (PC, LCV) www.siab.ro 18-27 Johannesburg International Motor Show, South Africa (PC, LCV, CV) www.johannesburgmotorshow.co.za November 2-10 Athens International Motor Show, Greece (PC, LCV) www.seaa.gr 5-9 Dubai International Motor Show, Dubai World Trade Centre, Dubai, UAE (PC) www.dubaimotorshow.com 14-17 COMVEX Istanbul Commercial Vehicles, Buses and Components Expo, Turkey (LCV, CV) www.osd.org.tr 22-1 December Los Angeles Auto Show, USA (PC) www.laautoshow.com 23-1 December 43rd Tokyo Motor Show, Japan (PC, LCV, CV) www.tokyo-motorshow.com 27-2 December Riyadh International Motor Show, Riyadh Exhibition Center, Murooj Area, Olaya St, Riyadh Saudi Arabia (PC), www.recexpo.com January 2014 15-26 North American International Auto Show (NAIAS), Detroit USA (PCV) www.naias.com 17-19 Memphis International Motor Show, Memphis Cook Convention Center, Tennessee, USA (PC, LCV, CV) www.motortrendautoshows.com/memphis February 8-17 Chicago Auto Show (provisional), Chicago, USA (PCV, LCV) www.chicagoautoshow.com March 6-16 Geneva International Motor Show (provisional), Switzerland (PCV) www.salon-auto.com April 8-11 NAFA Institute and Expo, Minneapolis Convention Center, Minneapolis, USA ( (PC, LCV, CV) www.nafa.org/conference KEY: PC – passenger cars // LCV – light commercial vehicles // CV – commercial vehicles

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motor show review SHANGHAI SHOW

Non-stop launches in Shanghai Global debuts from Maserati were among the many launches, mainly for the Chinese market at Auto Shanghai as John Kendall reports.

> Chang’an CS95 Chang’an’s CS95 SUV concept, shown in the picture, was one of five models from the company to make their world debut at Shanghai. Chang’an, also known as Chana, is one of China’s largest motor manufacturers. The covers also came off the company’s first high-performance hatchback coupe – Eado XT, the Grand Reaton limousine, Eado hybrid and a new MPV model named Zunxing. No further details are available. The company also showed its BlueCore powertrain products and InCall, InCare, InDrive and InNature intelligent technologies.

> BMW X4 BMW’s latest Sports Activity coupe, the X4, unveiled in concept form at Auto Shanghai, “offers a preview of the future of the BMW X family,” says BMW. It will be built in the USA, alongside the X5, X6 and X3. It will probably be to the X3 what the X6 is to the X5 – based on the same platform but with coupe styling at the rear. BMW says it will be 4,648mm long, 1,915mm wide and 1,622mm high with a 2,810mm wheelbase. There’s no word on power but the X3 engines look a likely option.

> Chery β5 concept SUV The β5 concept previewed the production model T21, which will use the company’s iAuto platform – combining a number of technologies which the company has branded CLOUDRIVE – an intelligent cloud entertainment system and ACTECO – an advanced powertrain system, which will use technologies such as dual clutch transmission, CVT and advanced engine technology including turbocharging and variable valve timing. The company claims over 85kW/litre for its 1.6TGDI petrol engine.

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> Citroën DS Wild Rubis concept Citroën’s latest DS concept car is a plug-in hybrid car pairing the company’s 225hp 1.6-litre THP petrol engine with a 70hp electric motor driving the rear wheels. The lithium-ion battery pack gives the Wild Rubis a range of 50km under electric power. Both petrol engine and electric motor can be used together for full power acceleration, yet Citroën claims CO2 emissions of 43g/km. Citroën’s designers have added sound to the car, which is claimed to make “crystal-like whispering sounds” to accompany the car’s lighting configurations.

> Detroit Electric SP:01 Revived electric car brand Detroit Electric unveiled what it claims to be the fastest electric production sports car, capable of speeds up to 249km/h and with a range of over 290km. The rear-wheel drive car is powered by a mid-mounted electric motor and features a lightweight 37kWh battery pack and lightweight construction, giving a total weight of 1,068kg. The car is built on the Lotus Elise's aluminium platform carrying a carbon fibre body. Re-charging is said to take 4.3 hours using the company’s home charging unit. Detroit Electric plans to have the car on sale in target markets by the end of August. Two more high-performance models are promised by the end of 2014.

> FAW Toyota Ranz concept EV Toyota’s Chinese joint venture with First Auto Works (FAW) introduced Ranz – a budget EV China-only subbrand for the companies. Ranz was launched in March ahead of the Shanghai Show. The car launched at the show is based on the Toyota Corolla Ex. Series production is planned for 2014.

> Toyota Yundong Shuangqing II This concept hybrid vehicle, under development at the Toyota Engineering and Manufacturing R&D centre in Changshu, was one of two global launches of Toyota models that will be built exclusively for China. The other unveiling was of the FT-HT Yuejia designed as a six-seater, for younger buyers. Toyota did not give a launch date or further details for production versions of the two cars.

> Ford Escort Concept It’s a new kind of compact car, said Ford, in unveiling the Escort concept – designed specifically for Chinese customers “who value exceptional roominess, uncompromised functionality and sophisticated design”. The compact sector represents around 5.5 million units a year in China. Ford plans to launch five new plants and 15 new vehicles in China by 2015.

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motor show review SHANGHAI SHOW

> Honda Concept M

¡

> Geely/Detroit Electric launch Besides launching its electric sports car in Shanghai, Detroit Electric and Volvo owner Geely announced the formation of a strategic partnership to develop EVs and electric drive systems for China. The irst products of the partnership will go on sale under Geely’s Emgrand brand in 2014. The irst car will be based on the EC7, the company’s best seller in China. The EC7 EV will be aimed at business users and public sector organisations. Sales are expected to grow from 3,000 by 2015 to around 30,000 in three years’ time.

> Hyundai Mistra concept Hyundai previewed its mid-sized family saloon designed specifically for China and scheduled to go on sale later this year. The car is a joint venture between Hyundai’s Group R&D Centre and the Beijing Hyundai Technical Centre and is positioned between the Sonata and Elantra. The name was inspired by the city in southern Greece. The car has been designed for an urban population, targeting young families in their 20s and 30s. Hyundai has not discussed engine options.

> Maserati Ghibli Maserati’s second four-door model, the Ghibli, was shown for the irst time at the Shanghai Show. While the mid-size Ghibli and Quattroporte will both share the same V6 and V8 petrol engines they will have different power outputs. The V6 will produce 410hp in the Ghibli S and 330hp in the Ghibli. The Ghibli will also have the distinction of being the irst diesel-powered Maserati. The 275hp V6 turbo diesel has been developed

by Maserati engineers and is said to offer fuel consumption below 6.0l/100km, with 160g/km CO2 emissions.

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Honda’s MPV Concept M has been developed mainly for the Chinese market.

The carmaker says that most MPVs in China are based on commercial vehicles. Honda says the car will offer the attributes of a passenger car with a comfortable and spacious cabin and the fun of driving. The Concept M was designed at Honda’s R&D Centre in Japan and Honda says that it is making progress in developing a series production model, based on the concept and plans to bring it to market next year.

> Kia Horki-1 Concept Under Kia’s Horki-1 Concept car sits Kia’s new Cerato/Forte platform, while the name of the concept will be the new local brand name for models produced by Kia’s joint venture with Dongfeng Yueda Kia (DYK).

The plan is that Kia and its joint venture will follow a dualbrand strategy distinguishing Kia models from the Horki designs. The irst Horki models are expected to appear in H2 2015. It is not clear if the concept will become a series production model. Kia promises further details later.

> Mercedes-Benz Concept GLA Mercedes-Benz described the GLA concept as a “Close to production study”, previewing the forthcoming GLA-Class, a four-seat compact SUV based on the A-Class platform. The concept is powered by a four-cylinder 2.0-litre 211hp turbocharged petrol engine and drive is transmitted through a 7G-DCT dual-clutch seven-speed automated transmission to Mercedes’ lightweight 4MATIC four-wheel drive system. The headlamps feature laser technology. Mercedes says this means more light on the road, while they also function as projectors. Any format that can be operated through Mercedes Comand Online system can be the source – from a smartphone, the internet or from a hard drive.

> MG3 preview and urban concept MG gave a preview of the European MG3 supermini at Shanghai ahead of its European launch later this year. The production car takes styling cues from the MG ZERO concept vehicle from three years ago. The car was designed at MG’s UK base and will be built in the UK for Europe. MG says it will accommodate 4 1.8m tall occupants. MG claims class-leading rear seat headroom too. The car will be powered by a 105hp SOHC 16-valve petrol engine.

> Peugeot 301

> Nissan Friend-ME concept Young Chinese buyers are the target for the Nissan FriendME four-seat concept. The car is designed as much as a social space as a driving machine, aimed at the generation of young Chinese without brothers and sisters. It would be based on an existing Nissan car and is designed to use a battery electric-drive system. The four individual seats are positioned so that they can all see the same information displays as the driver. The centre console runs the length of the car and this is where the displays are housed, blending with the onyx black surface when not in use.

> SEAT Leon SC SEAT launched the Leon SC at Auto Shanghai, due to go on sale in China in 2014. The three-door SC is the first Leon to be produced with three doors. The new Leon, built on the VW Group MQB platform, is said to be the lightest vehicle in its segment and the first to be offered with LED headlamps. The SC has a wheelbase shortened by 35mm compared with the five-door Leon.

Peugeot claims that sales in China have risen by 31%.

Besides the Roland Garros models displayed at Shanghai, designed for the Chinese market, Peugeot displayed its budget 301 model, launched at the Paris Show last year and aimed at African and Eastern European markets as well as China. 301 sales are due to begin there at the end of 2013. It will compete in the Chinese M segment, said to represent over 50% of the Chinese market. Chinese Peugeot models will also receive the ‘E-power’ engine range, including the 1.6 CVVT and 1.6-litre THP engines, as well as the 1.2 and 1.8-litre THP engines and 1.8-litre CVVT engine.

> Porsche Panamera Plug-in Hybrid The Panamera S E-Hybrid made its world debut at Shanghai, introducing a new twin turbocharged 3.0-litre V6 petrol engine, more powerful electric motor and a high performance lithium-ion battery in place of the nickel metal hydride battery used in the previous Panamera hybrid. The 70kW (95hp) electric motor will carry the car up to 35km in electric mode and to speeds up to 135km/h. NEDC combined fuel consumption and emissions are given as 3.1l/100km and 71g/km CO2.

The V6 engine replaces the 4.8-litre V8, giving 20hp more power, and 18% lower fuel consumption.

> Volkswagen CrossBlue Coupe Volkswagen says the CrossBlue concept gives an indication of the future design direction for its Volkswagen SUVs. The five-seat concept is 4,889mm long, 2,015mm wide and 1,679mm high, with a wheelbase that is shorter than the Touareg. It also features a new plug-in hybrid system, combining a 295hp V6 direct-injection petrol engine driving through a six-speed DSG gearbox, with a 40kW motor at the front and 85kW motor at the rear. NEDC combined figures give 3.0l/100km and 6.9l/100km with the batteries depleted. Electric range is a claimed 33km. Based on the VW Group MQB componentry would give a wide choice of powertrain options.

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ADVERTORIAL

HYUNDAI DEBUTS WORLD’S FIRST MASS-PRODUCED HYDROGEN POWERED VEHICLE It’s a groundbreaking moment for emission-free transport across the globe, as Hyundai unveils the very first hydrogen powered fuel cell vehicle to be produced on an assembly line.

As the fifth largest car manufacturer in the world, Hyundai’s commitment to the environment has always matched its commitment to innovation.

Consequently, the development of fuel cell technology - and its unparalleled effect on both the motor industry and the environment - has long been a priority. Run entirely on hydrogen, fuel cell vehicles emit nothing but pure water, reducing environmental impact to zero and offering a viable, and exciting, solution for future mobility.

Currently, almost all of the major manufacturers are in the process of researching and developing fuel cell models. But it is Hyundai who have taken this remarkable technology to the next level. After fourteen years and hundreds of millions of euros in research and development, Hyundai, with the aim of making fuel cells available to the masses and not just the few, initiated the development of the world’s first fuel cell assembly line.

This pivotal step marked the beginning of mass-production for the sustainable technology - and an important turning point for the industry as a whole.

With the new infrastructure in place, Hyundai’s first ix35 fuel cell rolled off the assembly line at the end of February 2013. Suddenly, the technology of the future became a reality for today.

By mass-producing fuel cell vehicles, Hyundai is confident that it will be able to reduce costs, learn from and improve upon the available technologies, and commercialise hydrogen powered transport to bring it to the mainstream sooner rather than later.

As Hyundai’s 3rd generation fuel cell vehicle, the emission-free ix35 offers technology, comfort, convenience and performance on a par with conventional internal combustion cars. Acceleration to 100 km/h takes 12.5 seconds, and the top speed is an impressive 160 km/h.

The generous hydrogen capacity allows for a driving range of up to 594 km per single fuelling, making the ix35 suitable for both long distance journeys and every day use.

Two mid-mounted hydrogen storage tanks with a total capacity of 5.64 kg, a 100 kW (136 hp) fuel cell stack and a state of the art 24 kW lithiumpolymer battery pack co-developed with LG contribute to added convenience, while the extremely low consumption of 0.95 kg/100 km maximises efficiency.

All at no compromise to interior space.

At the 2013 European Motor Show in Brussels, Belgium, the ix35 fuel

cell received the prestigious FuturAuto award for being the first mass-produced, hydrogen powered fuel cell vehicle to be commercially available.

Of course, all of this is just the beginning. In recent years, real world testing of hydrogen powered vehicles, constant in-house development and improvement of technology, and solid partnerships with relevant organisations and agencies has helped position Hyundai as one of the global leaders in eco-technology. With the introduction of their pioneering fuel cell production line, the possibilities are even greater.

Hyundai have already committed to a schedule of delivering 1,000 units of the hydrogen-powered model for both public and private fleets by 2015.

Hyundai aim to reduce the CO 2 average of their entire fleet to 95 g/km by 2020. Contracts to lease the ix35 fuel cell to municipal fleets in Copenhagen, Denmark and Skåne, Sweden have already been signed, and others will almost certainly follow, as confidence in the market readiness of fuel cell vehicles grows. In Europe, the European Union has already established a hydrogen road map and initiated construction of hydrogen fueling stations to accommodate the carbon-free transport of the not too distant future.

Not surprisingly, as a company, Hyundai recently placed 17th in Interbrand’s Top Global Green Brands of 2012 report. This ambassador of zero-emission technology may have ambitious plans, but they also have the kind of unwavering commitment to environmentally-friendly future mobility that will make it happen.

risk management

Are your drivers distracted?

Distracted drivers are responsible for many deaths and injuries around the world.

Steve Banner finds out what action is being taken to deal with the problem. overnment bodies and enforcement authorities worldwide are homing in on distracted driving as a major risk to road safety: and if fleet operators and the drivers who work for them are not prepared to take action to mitigate this risk, then the police and courts are showing that they are more than willing to do the job for them. That means fines, action taken against employees’ driving licences, potential damage to the public image of the company concerned and the way in which it is perceived by its customers, and expensive civil litigation if somebody is injured as a consequence of irresponsible action by one of the company's drivers.

Distracted driving means for example texting, emailing, or having a hand-held cell phone pressed to your ear while at the wheel, but can encompass other activities as well. They can include eating, drinking, trying to read a map and even turning your head to speak to a fellow employee sitting in a rear seat.

Leading the charge against distracted driving is the USA’s Department of Transportation headed by Transportation Secretary, Ray LaHood. He and his department have been running a major campaign for the past three years highlighting the danger and have even set up a website – www.distraction.gov – to help battle it.

“It’s an epidemic, and while we have made progress in raising awareness about this risky behaviour, the simple fact is that people are continuing to be killed and injured and we can put an end to it,” he says. “Personal responsibility for putting down that cell phone is a good first step but we need everyone to do their part, whether it is helping to pass strong laws, educating our youngest and most vulnerable drivers or starting their own campaign to end distracted driving.”

The campaign has long received the

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backing of President Barack Obama. Back in September 2009 he signed an executive order directing federal employees not to text while driving government fleet vehicles or while driving privately owned grey fleet vehicles on government business.

The order also encouraged – but did not compel – federal contractors and others doing business with the government to adopt and enforce their own policies banning texting while driving on the job. In September 2010 the Federal Motor Carrier Safety Administration banned all truck and bus drivers from texting while driving and followed this up with a ban on the use of hand-held cell phones too in November 2011.

The size of the problem in the USA alone is indeed considerable. More than 3,300 people were killed and 387,000 were injured in crashes involving a distracted driver in 2011 according to figures compiled by the National Highway Traffic Safety Administration (NHTSA).

In a recent court case, one of the USA's biggest corporations was hit with a $21m (€16.3m) bill for damages after one of its drivers who was using a cell phone collided with another motorist causing severe injuries.

LaHood's campaign is facing an uphill struggle.

A recent survey carried out on behalf of the NHTSA revealed that in any given daylight moment around 660,000 drivers in the USA are manipulating electronic devices or using cell phones. That is despite the fact that texting while at the wheel is completely banned in 39 States and using a hand-held cell phone at the wheel is banned in ten.

In a renewed attack, last year saw the NHTSA announce a grant programme worth around $17.5m to reward States that have enacted and are enforcing anti-distracted

driving laws, including anti-texting statutes.

The cash could be used to, for example, train police of icers to spot drivers who are surreptitiously tapping out text messages while travelling down the freeway.

LaHood is also tackling the problem from another angle as part of his ‘Blueprint for Ending Distracted Driving’ plan and is urging manufacturers to limit the distraction risk presented by systems installed in their vehicles, including communication, navigation and entertainment devices.

Issued by the NHTSA earlier this year, the voluntary guidelines include recommendations to limit the time drivers must take their eyes off the road to perform any task to just two seconds. They also suggest that manufacturers should disable certain functions unless vehicles are parked including manual text entry for the purposes of text messaging and Internet browsing, video phoning and video conferencing and the display of certain types of text, including text messages, web pages and social media content.

The USA is not the only country where distracted driving is an issue. In Australia, a survey carried out by the Department of Infrastructure and Transport in 2011 revealed that while 59% of drivers with a mobile phone said they used it while driving, only 28% said they had a hands-free kit: evidence that a large number juggle with a hand-held phone instead.

The research also showed that 31% of drivers with a mobile read text messages and 14% send them while at the wheel.

In Canada, distracted driving was a contributing factor to 104 collision fatalities in British Columbia in 2010 while distracted drivers are three times more likely to be involved in a crash than attentive drivers according to the Ministry of Transportation in Alberta. All ten

Canadian provinces have some form of distracted driving legislation in place.

Allstate Insurance Company of Canada says that 80% of collisions on the country’s roads are caused by distracted driving with nearly three out of four drivers admitting to driving while being distracted.

The Automobile Association of South Africa is concerned about the problem too, with 7.2% of drivers in morning rushhour traffic observed using hand-held phones in a recent survey.

“The greatest issue with mobile phone use while driving is the lack of capacity of the human brain to react to external stimuli, assimilate information and decide on appropriate action while concentrating on something else: a conversation in this case,” it observes. “Drivers using cell phones look

at but fail to see up to 50% of the information in their driving environment.

“What this means in effect that while we are talking/texting on the phone, vital road information is not being processed by the brain, resulting in decisions being made with incomplete information: quite often with disastrous consequence,” it continues. “Studies have shown that drivers talking on cell phones are four times more likely to be involved in a crash compared with those who are not.”

South Africa’s roads are dangerous enough anyway without adding to the risk the association points out, with an average of 40 people killed and 25 permanently disabled daily. Around 1m crashes occur a year, it adds, involving almost 1.8m vehicles.

Fleets can of course instruct their driv-

ers not to text, email, tweet or eat while at the wheel and provide hands-free kits – although even their use is questionable given that you may end up talking while driving, albeit without a phone actually in your hand: and a complicated and extended discussion is not something to be engaged in if you are trying to negotiate a busy stretch of highway at the same time.

Operators can also alter their working practices so that employees are not required to respond to calls or messages while driving from point A to point B. Policies laid down by a distant head of ice have to be enforced on the ground however and it is at the sharp end where prudent risk management practices are sometimes ignored. The urgent need to communicate with a driver to ensure that a consignment

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risk management

Are your drivers distracted? ¡

of goods is picked up can sometimes take precedence over carefully crafted statements of sound risk management practice.

Technology can be used to ensure good practices are followed, however, according to The Canary Project.

Based in Columbia, South Carolina, USA, it has come up with Corporate Canary, a version of its distracted driving prevention app that it has developed specifically for fleet operators. It notifies fleet managers when employees use their employer-provided iPhones or Android phones (but not those that are their personal property) while driving company vehicles.

Corporate Canary reports when drivers make and receive phone calls, text, check emails or use social media while at the wheel as well as revealing their whereabouts and whether they are speeding.

Managers can choose to receive these reports either daily or weekly.

They can be used as a carrot as well as a stick says The Canary Project’s chief executive of icer, Jani Spede. “They can help businesses reward their safest drivers for honouring company policies,” she says.

In the UK, Romex World has developed a DDP – Driver Distraction Prevention – app that can be installed in drivers’ phones. Once again, it does not affect personal phones owned by employees.

Within a minute of the start of a journey it cuts off and blocks all voice calls and locks the keypad to prevent texting and emailing. Employees receive an announcement via their phone if a message has been missed so that they can stop somewhere safe in order to deal with it.

Romex has also developed a set of reports that can, for example, analyse speeding by comparing actual speed with the speed limit on the road concerned.

They can also monitor the possible onset of fatigue based on employees driving for too long without a break or driving having

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been engaged in other activities: meetings that have gone on all day for example.

Drivers who are distracted can be saved from themselves by a growing army of onboard safety devices now being installed in vehicles either as options or as standard features. While their presence should not be used as an excuse for texting or tweeting while behind the wheel, specifying them is certainly likely to reduce the risk of a collision and subsequent litigation.

Among the safety options available on Mercedes-Benz’s new Sprinter van, which recently received its press launch in Dusseldorf, Germany, is Blind Spot Assist.

Designed to reduce the risk of drivers blundering into cyclists, motorcyclists and other vulnerable road users because they had failed to notice their presence, the alert takes the form of an illuminated red triangle in – as appropriate – the nearside or offside exterior rear view mirror.

If you do not notice the triangle, and indicate to pull out anyway, then it will start to lash and a warning buzzer will sound.

Also on the options list is Collision Prevention Assist.

When a Sprinter equipped with it was driven at speed under test conditions towards a Citan light van travelling ahead hauling a full-scale inflatable model of a Citan on a trailer, the system’s radar spotted when the Sprinter was getting too close. That triggered an alert, which prompted the Sprinter’s supposedly daydreaming driver to react and slam on the brakes, averting an accident.

Adaptive Brake Assist immediately intervened to make certain they were applied to maximum effect.

Says Mercedes-Benz’s head of product management and marketing for large and medium vans, Norbert Kuntz: “Such assistance systems can prevent up to 43% of rear-end collisions involving vans.”

Drivers who are distracted can be saved from themselves by a growing army of onboard safety devices.

The Canary Project’s safe driving app, Corporate Canary.

fleet focus CZECH REPUBLIC

Strong fleet showing in Czech Republic The Czech Republic claims some of the oldest motor manufacturers in the world and a strong fleet sector. John Kendall reports.

BEST SELLER Homegrown Skoda Octavia is the firm fleet favourite in the Czech Republic.

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The Czech Republic is one of the smaller and newer central European nations, having been established as an independent nation in 1993, when the former Czechoslovakia was split into the Czech Republic and Slovakia. The country was admitted to the European Union in 2004, but maintains its own currency, the Czech crown.

The Czech Republic has had a long involvement with the motor industry. Tatra, which has evolved into a specialist truck maker, claims to have the oldest vehicle factory in Europe, having begun production in 1850. The first car was produced in 1897 and the first truck in the following year.

Now the company is a specialist producer of heavy off-road and military trucks.

Czech car maker Skoda makes a similar claim to Tatra – as one of the five oldest vehicle manufacturers in the world. Like Tatra, it has produced a range of motorised vehicles from cars to trucks and railway locomotives. Today it is a wholly owned subsidiary of the VW Group and produces cars, engines and transmissions in the Czech Republic. Once the company’s expansion plans have been completed, it will be able to produce up to 2,400 cars a day at its Czech facilities.

Alongside the established Czech brands, other manufacturers have also chosen to produce vehicles in the Czech Republic.

Toyota and PSA Peugeot Citroën established Toyota Peugeot Citroën Automobile (TPCA) as a joint venture near the city of Kolin in the early 2000s. The plant was built to produce the Toyota Aygo/Peugeot 107/Citroën C1 and production began in February 2005, with Toyota responsible for vehicle production. The plant can produce up to 300,000 cars per year, and around 99% of those are exported. TPCA invested over €650m in the plant, which had a turnover of €164m in 2011.

Toyota and PSA have not been the only manufacturers to be attracted by the Czech Republic’s central location and workforce skills. Hyundai established an assembly plant at Nošovice in the east of the country, not far from the Slovakian border. The plant began producing the i30 in November 2008. In mid-May 2013, the factory produced its one millionth car.

Hyundai has invested €1.2bn in the plant, which has an annual turnover of €3.2bn.

Almost 3,500 people are directly employed there and produced 300,000 i30, ix20 and ix35 models in 2012.

SOR and Iveco also produce buses in the Czech Republic. According to the US Central Intelligence Agency, the automotive industry is the largest single industry in the country, accounting for almost 24% of Czech manufacturing. The industry produced over one million cars for the first time in 2010, of which over 80% were exported. OICA statistics show that the Czech Republic produced 1,171,774 cars and 7,164 commercial vehicles in 2012, an overall reduction of 1.7% compared with 2011.

The Czech Confederation of Industry does not expect to see a significant revival in the country’s domestic economy in 2013 and expected to see a moderate fall in sales across the economy in the early months of the year, followed by a modest revival in the second half of the year. The expected result is sales growth of around 1.5% in 2013.

ACEA data shows that registrations in the first four months of 2013 were down 14.3% to 51,514 compared with the same period in 2012 and down 9.2% for April 2013 to 15,061, compared with April 2012.

In 2012, car registrations for the year totalled 193,369.

According to ALD’s general manager in the Czech Republic, Petr Kohout, some 120,000 of those sales were company driven, over 60% of new cars. “It has been increasing over time, because the retail market is slowing down enormously,” explains Mr Kohout. The total new car sales figure is possibly distorted though, he

thinks, because several brands re-export cars, exploiting different prices in different countries. “The estimates are roughly 10% to 15% of all claimed sales are re-exports.”

It is not surprising to find that Skoda has a strong position in the Czech new car market. Mr Kohout says that overall Skoda has a market share of around 30%: “For the business sector we are talking around 50% for passenger cars.” Add Volkswagen, particularly the Passat, to the equation and it climbs further, “I don’t have official statistics on the business sector, but based on our leasing company portfolio, we are talking here about 60% market share when you take Skoda and Volkswagen combined.”

The Octavia is the Skoda of choice for business users. “Octavia is absolutely number one”, says Mr Kohout. “The Octavia is considered a lower medium segment car.

If you take cars like the Volkswagen Passat or Ford Mondeo, for example, which are in the medium segment, they are also compared with the Skoda Superb.

“Skoda hopes that the new Rapid will kind of bridge the gap between Fabia and Octavia, but so far we haven’t seen that happening much. Whoever does not want an Octavia wants to save money on lower ranking positions in the company hierarchy, goes for the Fabia.”

The picture is different for the commercial vehicle sector, which is in the region of 5% to 7% compared with the size of the total car market. Ford used to lead the

The Hyundai i30 is manufactured in the Czech Republic.

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fleet focus CZECH REPUBLIC

The Aygo, built in a joint venture between Toyota and Peugeot Citroën is built at Kolin alongside the Peugeot 107 and Citroën C1.

Strong fleet showing in Czech Republic... ¡

market with the Transit, but now there is a more even spread of manufacturers. The LCV market has been more affected than the car sector with falling sales. “Ford, Fiat, Renault, Volkswagen, Peugeot have comparable sales figures for all five brands with Citroën close behind.”

Business cars are subject to an additional tax compared with private cars in the Czech Republic. According to ARI Fleet’s International Fleet Taxation Guide, this tax, known as road tax is levied according to engine size. The rate varies from CZK 1,200 (€46.4) for cars with engines below 800cm3 capacity to CZK 4,200 (€162.4) for cars with engines over 3,000cm3 capacity and is payable quarterly in advance, in April, July, October and December, although reductions are applicable.

There are exemptions to road tax, for electric and alternative fuel vehicles.

These include electric and hybrid vehicles as well as vehicles fuelled with compressed natural gas (CNG), liquefied petroleum gas (LPG) or E85 ethanol.

Almost 50% of business cars are financed externally, says Petr Kohout of ALD. “The most popular method is a loan and this accounts for around 56% of business car financing in the Czech Republic,” Mr Kohout explains. “Until 2008, finance leasing was the dominant product. Then

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the law changed. The advantage of leasing was that you could amortise the lease costs faster than if you bought the car as an asset. So you could amortise the leasing instalments or the car value over 36 months, while for a direct purchase, it could be amortised over 48 months, so you had a one-year advantage.

“Unfortunately for leasing companies like us, this advantage has been lost, by the change. Now basically, leasing does not have any advantage over outright acquisition, from the income tax law perspective.”

Not surprisingly, the change in treatment of financial leases has had a noticeable impact on the take-up for them. “Unfortunately, financial leasing has been in decline; for example last year, almost 25% year-on-year. The proportion of finance leasing on the total financing is now less than 10%. Operating leases account for around one-third of all finance. Obviously there are specialists in operating leases such as ALD, LeasePlan and Arval. Finance leasing and loans are typically provided by a bank, or the leasing companies.”

The Czech car parc is ageing and ALD expects that environmental concerns will increase the pressure to renew the existing fleet, “But this is a long-term prospective in terms of the volume of new cars,” says Petr Kohout. “What we see today is com-

panies are buying used cars to save money, so we need to distinguish long-term and short-term trends.

“In terms of financing, it is difficult to predict because it very much depends on the regulatory framework. Our government is discussing the acceleration of the amortisation regimes for new investments as a pro-growth strategy.

“We believe the operating lease must grow proportionally at least, because it is a standard Western European method of financing and unfortunately we haven’t seen such rapid growth over recent years, so we don’t see such a convergence, but we believe it will grow. We also believe that unless financial leasing changes the regulatory framework, it will basically become extinct in time, so we will be here talking about loans and operating leases.”

Mr Kohout says that the proportion of financed cars declined last year by a few percentage points. “That’s not a big thing, but it may be explained by two things,” he says.

“You take a loan in a bank and it’s difficult to track if the load is used for buying the car or not. If you are a company you can have a capital loan for the acquisition of cars.

“The second aspect is that companies are generally thought to be holding on to their cash, so they don’t feel it’s the right time to increase their commitments to financing.”

remarketing Internet auctions are in as high demand as used Skoda stock in the carmakers domestic market.

CZECH REPUBLIC

Czechs choose online remarketing The Czech Republic’s used market is very dynamic with buyers switched onto online buying, says Autorola’s country managing director, Rene Buzek. he Czech Republic’s new and used car industries are quite stable, but compared with countries in Western Europe, they are relatively new and still finding their feet. This means the market is very dynamic and not so reliant on traditional ways of doing business, unlike some of the established markets. The use of the Internet for vehicle buying and selling is prevalent. ”Used car buyers, and that means predominantly franchised dealers, are very experienced in online buying,” explains Autorola Czech Republic’s managing director, Rene Buzek. ”They are looking for the right stock and they use the internet very proactively to source vehicles and that often means buying cars from other countries, through Autorola’s crossborder online trading platforms,” he adds.

Not surprisingly there is a strong following for Skoda, both in the used market and typically ex-fleet stock, which is hitting the market between three and five years of age at between €5,000-€7,000 in price. ”Although working from a stable base, the used market can change very rapidly. Up until a few months ago there was a strong demand for used cars with damage. But recently we have seen this begin to change with consumers looking to buy better quality cars that have covered lower distances,” says Buzek.

Some of this stock is being sourced cross-border by trade buyers as typically leasing companies and banks in the Czech Republic will try and dispose of stock directly to the consumer first. As a result, their reputation and profile with these buyers is sometimes a challenge. ”As the leasing sector grows, so the number of used cars coming back off contract will increase, which is why we see the leasing sector providing us with a large growth area. An online remarketing channel can quickly build a vendor’s brand if it offers good stock with the right level of provenance,” says Buzek.

An Autorola online auction lasts between two and four days with or without reserves, depending on a vendor’s appetite to sell and the type of stock for sale. Autorola’s Prague office works closely with other subsidiaries, in particular Austria, to help cope with peaks in demand and to cover off pan-European vendor and seller interest, plus that of OEMs that are just beginning to look at online remarketing more aggressively. ”Autorola is well placed to help leasing companies, finance companies and OEMs to further build their used profile and help them cater for the ever-growing demand from dealers online for used cars. By taking over the entire remarketing process from appraisal and storage to refurbishment and transportation helps them deliver an effective full-service solution. ”Online can also help dealers be more proactive with selling over-age stock which is becoming a problem as dealers push to increase their market share,” says Buzek.

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fleet strategy

French fleet operators suffer price hike as rental rates rise Rental costs depend on where you live, with French fleet operators seeing costs rise, while Portuguese fleets have seen costs fall, finds Experteye.

Fleet operators in France have seen their rental costs rise by +5.1% during the last twelve months, at a time when Portuguese customers have seen theirs come down by -5.8%. And while rates in Portugal have settled in the last quarter, with a smaller -0.5% shift, France continues to see prices rise with a +4.2% increase since February this year.

The figures from the Experteye European Leasing index reflect mixed opinion across Europe of the strength of the future used vehicle market and servicing, maintenance and repair (SMR) budgets. In the last twelve months, the UK has reported a +3.6% improvement in its forecasted residual values (RVs), yet Portugal has seen its decline by -7.2%. Portuguese SMR budgets have risen by +7.4%, but in Spain they have reduced by -6.2%. In the last quarter, UK confidence in future used vehicle values has improved further with a +6.3% increase; the largest of all nations surveyed.

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

In a shaky European economy, there are dramatically different views on forecasted RVs and SMR budgets. Yet interestingly, these do not always re lect on the rental rates. With an annual -7.2% reduction in RVs and a +7.4% rise in SMR budgets, Portugal’s rental rates would be expected to rise. But the country’s contract hire and leasing companies have dropped their monthly rates by -5.8%, bene iting leet customers and shielding them from the volatile market conditions.

Market summaries – 3 and 12 months to April 2013 FRANCE: French fleet operators have suffered the largest annual and quarterly hikes to their rental costs, with a +5.1% rise during the last twelve months and +4.2% in the last three months. SMR budgets have risen by +5.4% since May 2012 although annual forecasted RVs have remained unchanged (0%). In the recent quarter, there has been little movement in budgets with a +0.5% rise in RVs and -0.1% SMR increase.

GERMANY: Businesses operating vehicle leets in Germany have enjoyed a -1.9% drop in rental rates in the last quarter, the largest three month reduction of all nations surveyed. This follows a year when they fell by -0.8%. SMR budgets have remained reasonably stable, with a +0.4% shift since May 2012 and a +0.5% rise since February this year. Forecasted RVs have also seen little movement with a -1.2% annual reduction and -0.1% for the quarter.

ITALY: Italy has reported the biggest fall in its quarterly SMR budgets, with a -3.6% downturn. This follows a year when they had risen by +2.9%. Forecasted residual values have moved very little, with a -0.6% fall in the last twelve months and +0.3% in the last three. Rental rates came down by -2.9% during the course of the year, but have moved back up very slightly by +0.5%.

PORTUGAL: Portugal continues to see dramatic shifts in its forecasted RVs and SMR budgets with a -7.2% fall in RVs in the last twelve months and a +7.4% rise in SMR. Yet this has resulted in a -5.8% reduction in rental rates. For the quarter, the picture is more stable with a -0.3% fall in forecasted RVs and a -0.7% drop in SMR budgets.

Rental rates since February 2013 have only moved by -0.5%.

SPAIN: Of the nations surveyed by Experteye, Spain has seen the largest annual fall in its SMR budgets with a -6.2% downward shift. Yet it has also reported the largest quarterly rise of +1.9%.

Confidence is improving in the future used vehicle market with a +1.2% increase in anticipated RVs in the last quarter after a year that had seen RV forecasts drop by -2.9%. Rental rates are relatively steady, with a +0.8% increase since May 2012 and a 0.7% reduction since February this year.

UK: The UK is showing by far the most con idence in the future used vehicle market, with a +6.3% increase in forecasted RVs in the last quarter; its nearest rival being Spain at +1.2%. In the last three months, con idence remains with a +3.6% rise. SMR budgets are stable with a +1.0% shift for the year and +0.4% for the quarter. And UK leet operators are seeing very little change with rental rates, with a -0.2% fall in prices for both the year and the quarter.

CHANGES IN RV FORECASTS, SMR COST FORECASTS AND LEASE RENTALS Forecast Service, Maintenance Current Rental Rates and Repair Costs 3-month change 12-month change 3-month change 12-month change 3-month change 12-month change +0.5% +0.0% -0.1% +5.4% +4.2% +5.1% -0.1% -1.2% +0.5% +0.4% -1.9% -0.8% +0.3% -0.6% -3.6% +2.9% +0.5% -2.9% -0.3% -7.2% -0.7% +7.4% -0.5% -5.8% +1.2% -2.9% +1.9% -6.2% -0.7% +0.8% +6.3% +3.6% +0.4% +1.0% -0.2% -0.2% Forecast Residual Values

France Germany Italy Portugal Spain UK

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

• Twelve-month comparisons show change since May 2012.

• Three-month comparisons show change since February 2013.

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

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

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fleet profile KIA MOTORS

The brand played on

Kia's global expansion and response to local market needs has been truly impressive. The brand has expanded in Europe through the recession, while others have seen their market share dwindle, as Mark Bursa reports.

Kia has given a masterclass in acting global and thinking local 38

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ia’s rise from unknown Korean small car brand to full-range global automaker has been rapid – just 22 years have passed since the irst Kia Pride hatchbacks rolled off the boat from Korea at Sheerness docks, launching the brand in Europe, with the UK as the irst market.

Since then, Kia has given a master class in acting global and thinking local. It has consolidated its European presence, replacing independent importers with company-owned subsidiaries. Massive R&D and manufacturing facilities have been established in Europe, and the US, designing and building cars speci ically suited to local tastes.

Kia has even appointed local managers to some of its most senior positions, most notably former Audi chief designer Peter Schreyer, who is credited with the massive recent improvements in the appeal of Kia’s products, and who now oversees product development at both Kia and Hyundai.

K

Better by design Kia Motors’ design chief Peter Schreyer has been credited with the increased appeal of Kia’s model range

Despite its success, Kia can still raise the hackles. At last year’s Paris Motor Show, Arnaud Montebourg, France’s industry minister, refused to visit the stands of Kia and its sister company Hyundai, and accused the Korean companies of “unacceptable conditions of dumping” – selling cars at below market price.

The complaint came in the wake of a new free trade agreement (FTA) between the EU and Korea. Under the terms of this, EU tariffs on imported Korean cars fell from 10% to 6.6% for small cars and 4% for mid-sized and large cars, and the tariffs are due to be eliminated completely in 2014.

You can see why the French are complaining.

While both the French automakers, Renault

and PSA Peugeot Citroën, are seeing sales tumble in Europe, the Koreans are growing so well that Kia is now back to pre-recession 2007 levels.

Korea may still be a challenging market for European automaker exports, but that’s hardly Kia or Hyundai’s fault. The Korean producers counter the dumping accusation by pointing to the fact that well over half the cars they sell in Europe are actually built here. Kia makes 60% of its European volume at Zilina in Slovakia, a massive and sophisticated plant opened in 2007.

This plant, along with Hyundai’s near-identical plant in the Czech Republic, has a major advantage over the established plants run by the French automakers and others. For a start, they bene it from lower labour costs in the EU expansion states of Central Europe. Secondly, they’re much more ef icient than older Western European plants as they are highly automated and extremely lean.

They give the Koreans an advantage, but a fair one resulting from fortunate timing and a wise choice of location. And a cursory inspection of price charts suggests there is no way the Koreans are dumping, as Kia’s prices are pitched very close to mainstream European and Japanese brands.

Gone are the days when Kia was considered an entry-level budget brand. In 2013, Kia is mainstream. IHS Global Insight automotive analyst, Paul Newton, told the BBC last year: “In Europe, Kia is beginning to compete with the likes of Ford, General Motors and Volkswagen, on brand image and quality rather than price alone.”

Kia UK President and CEO, Paul Philpott, compares Kia’s story to electronics giant Samsung. “The Kia story has some parallels with Samsung in Europe, which came in with low-priced products. A certain part of the population bought them, then they worked on quality and design and are now outselling Sony. Who would have believed that 20 years ago?”

GLOBAL SALES PERFORMANCE Kia is becoming increasingly global. In the 1990s, everything was exported from Korea.

But now, in addition to the Zilina plant, Kia has opened a factory in the US state of Georgia; it has built two production plants in China and is currently working on a third. In Malaysia, cars are assembled from CKD kits by local manufacturer Naza.

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fleet profile KIA MOTORS

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In addition, cars are made in Vietnam and the Philippines, and Kia models are built under license in Iran. Production of the Kia Rio 5-door hatch and 4-door saloon begins in January at Hyundai’s St. Petersburg, Russia, plant, in which Kia holds a 30% stake. The Rio is built alongside the Hyundai Solaris and Accent/Verna models. Kia has recently committed to building a factory in Brazil, though the actual plans are still under discussion.

The result in 2012 has been a major increase in global sales for Kia cars and commercial vehicles. Full-year sales reached an all-time high of 2,710,017 units, representing an annual year-on-year increase of 9.3%. Europe led the way, with sales of 571,033 units, a 19.5% year-on-year increase. Of that regional total, Western Europe accounted for 338,000 units – a 15% increase over 2011 in spite of continuing economic dif iculties in several market areas.

In North America Kia sold 635,399 units, a 15.4% year-on-year increase, while Chinese sales totalled 512,167 units, an 11% year-onyear increase. Other markets accounted for 509,358 units sold, a 2.7% year-on-year increase. The only decline was in Kia’s home market, with Korean sales of 482,060 representing a 2.2% year-on-year decrease.

Kia’s best-selling global model was the Picanto/Pride subcompact, with 380,064 units sold worldwide last year, followed by the Sportage (below) with 373,000 units.

EUROPEAN SALES SURGE The European sales increase is particularly impressive, as it has been achieved against a backdrop of a declining market, and without distress marketing. Indeed, Kia claims it has raised its prices by an average 2.5% each year for the past three years, shifting the focus away from undercutting its rivals towards head-on competition.

Kia has also been clever at riding the waves of incentive programmes, such as scrappage schemes, in various European countries between 2008 and 2011. With relatively low-priced entry models and appealing long warranties (seven years in the UK, for example), Kia became one of the go-to brands for scrappage trade-ins, bolstering its retail sales – if doing little for its leet business.

Kia has also been nimble in selecting which European markets on which to focus.

In the second half of 2012, for example, Kia abandoned a strategy of trying to win stable across-the-board growth in Europe. Instead, Kia concentrated on Northern Europe rather than struggling Mediterranean markets: “We will boldly retreat from lowpotential markets and concentrate our efforts in Germany, the UK, and Scandinavian countries,” said vice chairman, Lee Hyung-Keun.

The result has been surprising – sales in the irst quarter of 2013 in Western Europe were up 3% in a market down 10% to

almost 83,000 units. Kia sales grew 12% in the UK in Q1, 3% in Germany and despite the reduced focus on southern Europe, Kia recorded a major 22% upswing in the troubled Italian market.

Kia UK’s Philpott said growth would only slow as Kia runs out of global capacity. “All our plants are running lat out and if this continues then there will have to be a decision within the next 18 months to two years about increasing capacity. Until then we will concentrate on improving quality even more and retaining our existing customers,” he told auto industry website just-auto.com.

Kia Europe President, Brandon Yea, has set an annual sales target of 420,000 by 2016 in the EU and EFTA markets, in a market that will recover from 12-14 million units in the same timeframe. He said Kia had a right-sized dealer network to handle this growth, with 2,146 dealers across Europe. “We don't plan to add more,” he said, though quality would be improved.

This will include a number of new ‘Red Cube’ lagship dealers in major towns and cities. There are currently three in the UK, but more than 100 of the Kia’s 173 British dealers have already upgraded their premises or moved to new homes, and the transformation is due to be completed this year.

New-build dealerships will adopt the redclad look, though elements of the restyled corporate showroom identity are being incorporated into all dealerships worldwide.

Sportage Kia’s sleekly-styled SUV has proved remarkably popular in Europe

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ZILINA FACTORY Kia chose Zilina for its European factory for reasons of logistics, supplier proximity, infrastructure, workforce and “economic considerations”, which included business-friendly labour laws and low taxation.

The plant was built in less than two years, and started production in December 2006. Overall investment has been €1.4 billion since 2004, and since the launch of volume production, more than 1,275,000 cars had left the plant by the end of 2012.

It’s an impressive site – clean, bright, futuristic and very heavily automated. It’s modelled on Kia’s newest Korean plants, such as the equally heavily robotised Hwa Sung plant. The body shop is 100% automated, with more than 310 robots capable of welding eight different body versions on the same line. The line runs constantly – even when the inal assembly line shuts for meal breaks or shift changes, the robots keep on welding.

Zilina also has an on-site engine shop churning out petrol and diesel engines, while a large amount of work is done offsite. The inal assembly shop is relatively small because nearly half of each car is made up from modules assembled by suppliers and delivered to the line on a just-in-time basis.

In total, 15 major modules are assembled by local suppliers, including major systems such as a front-end module that integrates headlamps and radiator; front and rear suspensions and dashboard. The line is fast – 60 units per hour – so at 100% ef iciency Kia produces a car a minute.

This translates to a record 292,000 cars and 464,000 engines in 2012, respective increases of 15% and 29% over 2011. A three-shift operation was introduced with 3,900 workers in January 2012, building the C-segment Cee'd in three body styles, Bsegment Venga and Sportage SUV. Only the small Picanto and Rio, Carens MPV and Sorento SUV are now sourced from Korea.

In 2012, Zilina plant built 136,500 Sportage (47% of output), 120,600 cee'd (41%), and 34,900 Venga (12%). Sportage output was up 34% year-on-year; the current model was launched in 2010. Last year about 22% of production went to Russia, 12% to the UK, 11% to Germany, 6% to France and 5% to Italy.

The 2013 target is 290,000 vehicles and 490,000 engines. GT versions of the three-door Pro_cee’d are being produced from May 2013. Engine output of 464,000 was up 29% with diesels accounting for 45%. The most popular engine assembled at Zilina in 2012 was the 1.6-litre diesel – 21% of total output.

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fleet profile KIA MOTORS

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EUROPEAN FLEET SALES By using scrappage schemes and other incentive programmes to grow sales, Kia has focused on the retail market. But leet still makes up a signi icant part of Kia’s business in northern European markets where it has a betterestablished presence, such as Germany or the UK. In the UK, for example, where leet accounts for 52% of the overall market, Kia’s penetration is 45%, said Paul Philpott. Kia Motors (UK) set a new record sales total of 66,629 cars in 2012 compared to 53,615 in 2011 and is targeting 70,000 units in 2013. This gave Kia a 3.26% of the UK new car market – up from 2.76% in 2011. Kia's share of the retail segment is higher than leet – 4% and 3.5% respectively.

Sales are growing as Kia expands its range, which now covers all mainstream sectors from A (Picanto) via B (Rio), C, (cee’d) and D (Optima), plus compact MPV (Carens), compact SUV (Sportage) and large SUV (Sorento).

“We are inding that new leet customers want a strong range,” Philpott said.

Indeed, the surprising strong seller in the UK has been the Sportage, which has gained considerable traction with user-chooser leet buyers and was Kia’s number 1 leet model in 2012. Overall UK best-seller was cee'd with 15,380 units, followed closely by Sportage with 14,964 and Picanto with just over 14,500 units sold.

In Germany, where estate cars are popular, the cee’d Sportwagon has been a strong seller. The leet proposition is stronger too, as residual values have improved thanks to the latest models.

The UK is seen as the test-bed for much of Kia’s leet sales techniques.

These include the excellent long warranty terms that form a major part of Kia’s marketing approach. “It is a seven-year, 100,000 miles warranty, fullytransferable, and there is no insurance element to it,” said Philpott. “We have had it since 2010 and it is a core part of our brand offering. We had people going into dealers asking ‘what is the catch?’ People have now seen there is no tactical promotional reason.”

In the UK, Philpott believes 100,000 sales a year is achievable mid-term, though he is not prepared to put a timeframe to this. And if Kia can maintain its 45% leet split, that will represents a signi icant presence in the company car sector. Philpott said growth would come through an increased focus on contract hire and leasing and for Kia’s dealers to focus on business sales to small and medium enterprises (SMEs). Meanwhile Kia is expanding its network of UK business specialist dealers from 18 to 25 to offer improved geographic coverage and support for leet customers.

Kia cee’d Kia’s best seller in the UK in 2012

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US SALES Kia has enjoyed 18 consecutive years of sales growth in the US, inishing 2012 with a record total of 557,000 for a market share of 3.85%.

That represented a 14% increase on sales of 485,500 in 2011.

Three Kia models sold more than 100,000 units in America in 2012 – Optima, Sorento and Soul. Optima and Sorento are made at the Kia Motors Manufacturing Georgia (KMMG) plant in West Point, Georgia, opened in November 2009 at a cost of €0.76bn ($US 1bn).

Optima was added in 2011, and has performed strongly against US market-leaders such as the Toyota Camry and Honda Accord. Its only limit is supply: the plant has rapidly reached its capacity of 360,000 units, despite operating three shifts.

As a result, 2013 sales will only grow moderately, according to Michael Sprague, Kia’s North American vice-president for marketing. “Globally we a now at capacity. All markets are clamouring for more,” he said.

Kia has dismissed as “groundless” recent reports in the Korean Financial News newspaper that it was in talks with Georgia state of icials to construct a new “KMMG 2” plant, with an output of 150,000 vehicles a year, alongside the West Point factory.

As in Europe, Kia tailors its North American models to local tastes. The US Optima has signi icant differences to the European model, which is sourced from Korea. The $130m Kia Design Center America in Irvine, California, which handles North American design work, opened in 2008.

Kia’s leet presence in the US is lower than in Europe, though it has grown signi icantly in 2013.

Individual igures are not available, but combined Hyundai-Kia leet sales are up 55%, while retail volume has fallen 8%, in the irst four months of 2013. In April 17% of the vehicles sold by the two Korean brands went to leet buyers, up from just 10% a year earlier.

CHINA In China, Kia Motors is partnered with one of the major local automakers, Dongfeng Motor. Their joint venture company, Dongfeng Yueda Kia (DYK), established in 2002 at the start of the Chinese market boom, has been extremely successful, and more than quadrupled its China sales between 2007 and 2011, with volumes leaping from 101,427 units in 2007 to 432,518 units in 2011, rising again to 512,167 in 2012.

Popular models include the K2 (a Chinese version of the B-segment Rio), Csegment Forte (Cerato in some markets) and Sportage SUV. China has continued growing in 2013, with Q1 sales up 23.9% to 144,559 units, making China Kia’s fastest-growing market this year.

DYK recently broke ground for a third car assembly plant in the Yancheng Economic Development Zone in Jiangsu Province. The factory will have annual capacity of 300,000 vehicles when completed in the irst half of 2014. It is designed with a lexible layout that will allow expansion to 400,000 units in the future, which would take Kia’s Chinese capacity to 830,000 vehicles a year, in combination with the two existing plants in the zone, which build 130,000 and 300,000 units respectively.

The new plant will be located only 5km from DYK’s second plant, which opened in December 2007.

Hyundai Motor Group chairman, Chung Mong-Koo, said the third plant “will be an opportunity for us to make further

progress on the quality front as well as increase overall customer satisfaction”. Kia plans to produce China-specific models at the new plant, designed for local market preferences, and sold under a new subbrand, Horki.

DYK revealed the Horki Concept-1 at the recent Shanghai motor show, and the irst production car will be built from 2015. The brand name is the phonetic pronunciation of two Chinese characters, according to Kia. ‘Hor’ means China, while ‘Ki’ translates as vehicle. Horki has been created in response to a directive from the Chinese government for foreign JVs to establish dedicated local brands. Many other automakers, including VW, Nissan, GM and Honda, are also creating new ‘local’ China brands.

Kia’s joint venture with DYK in China has been extremely successful

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UK registered charity no 1072105. Patron HRH The Princess Royal.

launch report Mercedes-Benz E-Class p46 Peugeot 2008 p47 Mercedes-Benz Sprinter p48 MAN TG p49 The 2008 marks a move into a new niche for Peugeot, but it covers a few gaps in existing ones. p47

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launch report

Mercedes-Benz E-Class Heavily revised E-Class offers broader appeal without abandoning its core qualities, says Alex Grant.

SECTOR Executive PRICE €40,430 – €121,023 FUEL 4.1 – 10.5l/100km CO2 107 – 246g/km While the rest of the Mercedes-Benz range has steadily got younger in feel, the E-Class has until recently stuck firmly to its roots. A 60-year lineage has shown this to be a car for those who like the traditional brand hallmarks of high-quality, premium saloon cars – solid, reliable and comfortable rather than sporty.

But, as the brand’s recent efforts show, sportiness sells. Since the outgoing E-Class launched in 2009, key rivals from Audi, BMW, Jaguar and Lexus have all been renewed, and each has its own sportsstyled trim level. By comparison, even the outgoing E63 AMG wasn’t a radical departure from its ultra-conservative siblings.

There’s been a very noticeable effort to change this. Despite the heavily updated styling, most of what’s under the skin of the new E-Class is unchanged. That’s not a bad thing, as it means the fleet-friendly engines and ultra-efficient diesel-electric hybrid are carried forward. The difference is, they’re now packaged in a much sharper, far more youthful body shell.

Visually, very little of the old car is left.

The bulge over the rear arches, inspired by the 1950s Ponton which kick-started the E-Class series, has been replaced by twin swage lines adopted from the carmaker’s

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latest models. Also absent are the quad headlamps found on the last three generations of E-Class, replaced by two units with LED daytime running lights giving an outline impression that they’re split into four.

This is also the first time Mercedes-Benz has offered two different grilles on the E-Class saloon. In line with the C-Class, buyers can now choose from the traditional chrome slats or a thicker-slatted option with a prominent three-pointed star. In some markets – the UK, France and Italy included – most trim levels are equipped with the latter.

Inside, the E-Class is now closer in style to the CLS, inheriting a column-mounted gear selector for automatic versions and a central analogue clock backed by silver air vents. Unusually, the interior can be customised irrespective of the exterior trim.

From the driver’s seat, what is new is a full package of assistance systems adopted from the S-Class. The E-Class is available with options including a camera system offering a bird’s-eye view of parking spaces, lane keeping and accident avoidance systems and a twin-camera forward scanning device at the top of the windscreen. A step forward from radar or laser-based systems, this can view the road ahead in three dimensions, recognising white lines, direc-

tion of movement and the differences between pedestrians and other traffic.

Engines range from the most efficient E300 BlueTEC hybrid, which uses a 2.1-litre diesel engine and electric motor to offer 4.1l/100km economy and segment-leading CO2 emissions of 107g/km, to the hot-blooded E63 AMG super saloon. These also include two highly efficient four-cylinder petrol units with CO2 emissions of 138g/km and a single Euro6 compliant six-cylinder diesel.

But it’s the core diesels that offer perhaps the best all-round package for European buyers. Even the most efficient E220 CDI, with its 170hp 2.1-litre unit, is an incredibly refined way to travel – comfortable, effortless and incredibly quiet at high and low speeds, only feeling like it needs a little extra power when accelerating away from short slip roads. Fuel consumption, at 4.7l/100km with CO2 emissions of 123g/km, means there’s still an efficient E-Class without opting for the pricier hybrid.

verdict Ultimately the E-Class offers a slightly softer and less involving drive than the 5 Series, but a thorough facelift has turned the conservative executive car into a real head-turner.

Peugeot 2008 Alex Grant finds there’s more to the 2008 than just a 208 with extra ground clearance.

SECTOR B-crossover PRICE €15,200 – €24,450 FUEL 3.8 – 5.9l/100km CO2 98 – 135g/km The 2008 marks a move into a new niche for Peugeot, but it covers a few gaps in existing ones. This diminutive crossover is aimed at attracting customers out of compact MPVs, supermini estates and even offering an additional choice for those who would have defaulted to a lower-medium model.

It’s a shrewd move. Rivals such as the Nissan Juke and MINI Countryman have helped compact crossover volume overtake equivalent estates and MPVs in Europe, and it’s a sector set to receive newcomers from most mass-market manufacturers.

This also alters Peugeot’s fleet appeal. The 207 SW, which isn’t being directly replaced, had been a popular rental model, while small MPVs tend to perform well in Motability schemes. Peugeot expects the vast majority of 2008 sales to be user-choosers, almost a complete reversal of the 207 SW, and two thirds will be conquests from other brands.

As compact crossovers are popular on the used market, and tend to attract higher residuals than small estates or MPVs, leasing rates should be attractive too.

So Peugeot is expecting downsizers to represent a decent share of sales, in turn helping the 2008 follow the 208’s lead in top-heavy demand for trims. The Allure, three levels up from base spec, should be

the most popular trim, just like its sibling.

Under the skin, the 2008 shares its platform and wheelbase with the 208, gaining a raised ride height and slightly wider front and rear track. The latter is similar to the 208 GTI, and contributes to impressive stability for what should be a top-heavy vehicle. Instead, the 2008 rides and corners much more like a C-segment car than its underpinnings would suggest. An impressive feat for a car which, in its lightest guise, weighs only 100kg more than a range-topping Volkswagen up!

Visually it’s not as obviously a crossover as the Juke or Countryman, but the 2008 makes a surprisingly rugged-looking small car.

Chunky wheel arches with high ground clearance and aluminium scuff plates help it look less like an MPV than the larger 3008, but there won’t be a four-wheel drive version due to low demand. Instead, it uses Peugeot’s Grip Control package, comprising mud and snow tyres and a clever traction control system set using a rotary dial in the cabin.

The engines are a surprise. It’s the bigselling HDI 92 which feels the best suited, offering linear pulling power from just above idle, while the more powerful HDI 115 lags until around 1,600rpm. The petrol engines are similar, with the three-cylinder VTi 82 the star performer and a more effi-

cient, flexible unit than the lethargic VTi 120 with its sloppy gearbox. More threecylinder petrols are set to follow.

For most buyers, though, it’s the space that will appeal. Despite sharing its dashboard and low-mounted steering wheel with the 208, the cabin is noticeably larger and neatly packaged too. The seats fold flat easily, and the roofline is stepped like a Matra Rancho to give more headroom in the back. It’s just a shame the 3008’s split tailgate and movable boot floor haven’t moved down a class.

It’s so neatly packaged, that it’s a surprise to find the panoramic roof presents such a large problem for those in the back.

While it adds to the glazed area of the cabin, it follows the roof height from the front of the cabin, reducing the raised rear section to lumps underneath the roof rails and dramatically cutting headroom.

But, with lower-medium comfort and the agility and efficiency of a supermini, the 2008’s faults are easy to overlook.

verdict Priced at around €2,000 over an equivalent five-door 208, the 2008 has the space, styling and versatility to hold onto C-segment customers while the 308 is replaced.

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launch report

Mercedes-Benz Sprinter Euro6 engines and extra safety equipment put the updated Sprinter ahead again, John Kendall explains.

SECTOR Large van PRICE TBA RANGE From 6.3l/100km CO2 From 165g/km Vans that are new from the ground up tend to come around every 10 to 12 years with good reason. Firstly fleets want to be able to transfer equipment such as racking when the vehicle is replaced with a new one. If it is a different size, buyers would simply buy an alternative. Simple economics also play a large part. Sales volumes are considerably lower than for a car, so it takes far longer to sell enough to cover the cost of the initial investment. Like heavy trucks, the replacement model cycle now tends to be dictated by emissions regulations, where required changes can be engineered into the vehicle structure and engine revisions made as necessary.

Mercedes has established a loyal following for the current Sprinter range, launched in 2006. Rumours of a new model have been circulating for around two years and it seemed logical that it would be designed to meet the next round of emissions regulations in Europe – Euro6, which depending on the complicated weight definitions applicable to a vehicle in this class will come into force between September 2014 and September 2015. The principal change which the legislation will bring is to reduce emissions of oxides of nitrogen (NOx) still further. To do so will mean that additional

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exhaust after-treatment and engine cooling will be needed.

In essence that is what the new Sprinter has been designed to do. The basic body structure remains unchanged and the same basic engine range from 1.8-litre petrol engine to V6 diesel is used, but the front of the vehicle has been re-designed to improve cooling and the engines have been re-engineered to meet the Euro6 emissions limits.

Mercedes was the first manufacturer to fit electronic stability control (ESC) as standard to its vans – the Sprinter first – and it’s no great surprise that the company’s focus on safety has also been stepped up. The new Sprinter will be equipped with Crosswind Assist as standard, to help drivers maintain straight line stability in a severe crosswind.

The system uses the ESC system to correct for the force of the wind and was first introduced on the GL Class model in 2011. Now it’s the Sprinter’s turn.

The Sprinter retains the same appearance from a distance, but on approach the subtle changes become more obvious. The grille is larger and more upright than before and the headlamps have also been modified to adopt the latest lighting technology. The bonnet is higher than before, to improve pedestrian protection. Inside, the dash moulding and

interior are fundamentally the same as before, but there is new seat trim, a new steering wheel and other subtle changes.

Euro6 diesel engines will use selective catalytic reduction (SCR) after-treatment to control NOx emissions. It’s the same system used on trucks and some diesel cars and involves using the AdBlue additive that is injected into the exhaust stream. Sprinters will carry 18 litres of the fluid with AdBlue consumption of around 3.5l/1,000km. Operators will have to get used to topping up the tank to prevent it going into limp-home mode. BlueEfficiency models will offer combined fuel consumption as low as 6.3l/100km.

On the road, the Sprinter feels like the current model, which is no bad thing, as it is one of the best vans in its class to drive. A demonstration of the Crosswind Assist, which is only activated at speeds above 80km/h, shows that it works effectively to keep the vehicle in lane.

verdict Enough to keep the Sprinter ahead, at least until the new two-tonne Ford Transit next year. The additional safety features should make it more appealing to fleets.

MAN TG Ian Norwell went to Munich to see what MAN has to offer with their new TG range.

SECTOR Heavy Truck GCW 44 tonnes ENGINE 10.5, 12.4 and 16.2-litres Euro6 320-680hp

ADDED COST AND VALUE With all the truck makers forming a more or less orderly queue to bring their Euro6 models to market, they are having to add upgrades to sweeten the price increase pill. The extra plumbing, chemistry sets and convoluted stainless steel boxes that make up the after-treatment package on a heavy truck engine at Euro6, cost money to make.

Some of the “Euro” emissions levels have been relatively inexpensive, and chassis makers have been able to limit the damage for fleet buyers, but the Euro6 round of emission regulations has forced price increases of between €10,000 and €12,000 per chassis. That’s a pill that needs sweetening and the easiest way is to throw spec at it that has already been developed for larger or better-equipped models.

It accelerates the ‘trickle-down’ effect that is a normal process by which the equipment levels slip down the weight range. MAN does not have a new cab – at least not the ‘body-in-white’, they don’t.

So the benefits are not as apparent as on some others.

Des Evans, MAN’s CEO in the UK, announced at the recent UK International CV Show that prices would rise by between 8% and 10% for Euro6. Along with that

comes a new interior for the light and middleweight ranges – the TGL and the TGM and refinements to the heavy TGX. In a break with tradition, the lighter trucks have done better from this makeover, especially in the transmissions department where drivers and fleet engineers will both be happier. We took the opportunity to drive the new TGX tractor at 40 tonnes, but first we tried an upgraded TGL at 12 tonnes.

TGL The urban multi-drop truck works hard for its living, as does its driver. For the fleet engineer, clutches are a necessary evil and his parts shelves always have a few waiting.

The good news is that they will move down the list of fast-moving parts as the new TG range has standardised on MAN’s TipMatic AMT (automated manual transmission). They represent a very pleasant convenience for the tractor-trailer drivers that have enjoyed them for a few years now, but it’ll be a true transformation for the light rigid truck that shifts gears many hundreds of times a day.

The TGL 12.250 4x2 with refrigerated box body that we drove was a pleasure, and the ride and handling were not as affected

by the inevitably top-heavy bodywork as we had expected. Fuel, frayed nerves and friction material will all be saved.

The percentage of a light truck’s total chassis price that is represented by the cost of an AMT has kept it away from this class of truck – until now. The TGL’s cab interior is much improved and looks ready for battle on the high street.

TGX Des Evans proudly claimed at the UK CV Show that MAN had sold the most 6x2 tractors in the UK over the first quarter of 2013. Whether that’s supply, product quality or transaction price at work, who can tell? We suspect all three.

The TGX 18.480 that we drove reminded us how good the product had become.

True, it had some spec thrown at it, but the ride and handling were as safe and surefooted as anything else we’ve driven.

Air suspension front and rear and CDC (continuous damping control) were responsible. The interior was familiar (no revision) but a high-quality environment all the same. The TG range offers existing fleet operators more, especially at low gross weights, and it also should give newcomers food for thought.

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fleet in figures

European sales rise in April It’s still a mixed picture for global vehicle sales, but the general trend is upwards, with America and China strong in particular. John Kendall reports.

The BMW 3 Series is one of the few models in the top 10 that saw registrations rise YtD

It’s a change to start our market report with news that the Western European market posted its irst increase in registrations in April since September 2011. Registrations rose across the EU 27 countries by 1.7% in April, compared with April 2012 to 1,038,343.

But the European Automobile Manufacturers Association (ACEA) sounded a note of caution in reporting the increase, “The region counted on average two more working days compared with the same month last year, which would account for the increase”, says ACEA. The year to date (YTD) igures underline the point. Across the EU27, registrations for January to April are down -7.1% compared with the same period in 2012 to 4,026,946, a reduction of 308,323 registrations.

Looking closer at the April igures, Germany, Spain and the UK posted increases of +3.8%, +10.8% and +14.8% respectively.

LMC Automotive points out that the Sea-

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sonally Adjusted Annualised Rate (SAAR) for registrations in Germany climbed to about 3.0m units/year although it has luctuated around this level since the start of the year. LMC says that the selling rate in Spain actually fell back a little during the month, although the increase was enough to improve the YTD igures. For the UK, LMC highlights a 32% increase in private sales in April and a combination of good deals, improved customer con idence and a rise in replacement demand are given as reasons for the increase. It seems likely that the results also continued to re lect the twiceyearly registration plate change in the UK in March with demand spilling over into April, hence the rise in private sales.

As the -7.1% decline in YTD registrations suggests, Europe is still a weak market. Finland posted a +142.6% increase in April registrations, but YTD igures show a -27.8%

decline overall. April igures for France suggest that the rate of decline may be slowing, with registrations down -5.3% to 157,749 for the month and down -12.3% YTD. Despite the April increase for Germany, the YTD igure is still -8.5% down on last year, keeping the four-month igure below 1.0m units. The market is still falling in Italy, down -10.8% for April and -12.3% YTD. Among the smaller EU countries, Belgium saw the market rise +9.7% in April and +2.8% YTD. Denmark is following a similar trend with April up +30.7% and YTD up +9.2%. Estonia, with its population of around 1.0m is also looking bright with registrations up +22.2% in April and +17.9% YTD. Looking at brands across the EU, Daimler registrations have risen +2.8% overall YTD, with Mercedes-Benz’ +4.0% increase offset

by Smart’s -6.5% decline. Otherwise Dacia continues to perform well with registra-

TOP 10 BRANDS Apr 2013

Apr 2012

% Change Apr

146,951

138,044

+6.5%

525,505

572,043

-8.1%

Ford

80,148

80,004

+0.2%

308,493

365,916

-15.7%

Renault

69,737

70,026

-0.4%

263,883

296,421

-11.0%

Opel/Vauxhall

68,437

67,892

+0.8%

277,597

295,859

-6.2%

Audi

66,965

61,586

+8.7%

237,031

242,048

-2.1%

Peugeot

65,486

70,901

-7.6%

254,953

289,271

-11.9%

Mercedes-Benz

56,716

50,847

+11.5%

208,284

203,457

+2.4%

BMW

54,282

55,750

-2.6%

212,921

213,532

-0.3%

Citroën

53,820

61,512

-12.5%

210,386

252,499

-16.7%

Fiat

52,824

54,811

-3.6%

206,883

209,196

-1.1%

% Change YtD

Make Volkswagen

Apr YtD 2013

Apr YtD 2012

% Change YtD

Source - JATO Dynamics

TOP 10 MODELS Apr 2013

Apr 2012

% Change Apr

Apr YtD 2013

Apr YtD 2012

Volkswagen Golf

43,175

36,608

+17.9%

155,542

159,347

-2.4%

Renault Clio

26,352

20,420

+29.0%

101,691

86,845

+17.1%

Volkswagen Polo

25,460

23,917

+6.5%

94,306

111,489

-15.4%

Peugeot 208

24,007

7,738

-

90,902

12,415

-

Ford Fiesta

23,564

25,836

-8.8%

101,282

117,162

-13.6%

Opel/Vauxhall Corsa

19,788

20,043

-1.3%

83,320

93,647

-11.0%

Ford Focus

18,715

19,860

-5.8%

79,936

94,801

-15.7%

BMW 3 Series

17,105

17,215

-0.6%

65,292

54,002

+20.9%

Audi A3/SR/RS3

16,787

11,545

+45.4%

49,908

45,938

+8.6%

Opel/Vauxhall Astra

16,321

19,165

-14.8%

68,166

82,117

-17.0%

Make

Source - JATO Dynamics

tions up +18.3% YTD, helping to offset Renault’s -10.8% decline. Kia registrations have continued to perform well, up +4.1% YTD, although Hyundai has slipped into a -2.8% decline YTD. Others posting increases include Jaguar, (+19.6%), Land Rover (+12.6%) and Honda (+14.0%).

Despite the extensive new product range from Ford, the company’s registrations have taken the biggest hit so far this year, down -15.8% YTD, leaving 2013 Ford registrations trailing by 55,495 compared with the same period in 2012. PSA is still in decline, with registrations down -14.0% YTD – 74,118

fewer than in the same period in 2012.

GM is down -10.5% YTD with Chevrolet the biggest loser, down -33.5% YTD compared with Opel/Vauxhall’s -5.1%. Fiat Group registrations are still slipping, -9.2% down YTD, with Lancia/Chrysler, Alfa Romeo and Jeep shouldering the biggest falls, while Fiat is down just -1.3% YTD. Toyota registrations are down -13.4% YTD, with Lexus buoyant performance in 2012 turned into a -35% YTD decline. Suzuki and Mitsubishi are also down, -11.6% and -15.9% respectively YTD. As discussed, Mercedes was the only brand in the top 10 to post an increase.

Volkswagen remains the best selling brand, with a clear lead over second placed Ford.

As JATO points out, the arrival of the new Renault Clio has helped to boost sales by +17.1% YTD, while the BMW 3 Series and Audi A3 family are the only other top 10 models to see registrations rise YTD. The Ford Fiesta is the third best-selling model YTD after the Clio.

NORTH AMERICA Europe was not the only region to enjoy advancing registrations in April. According to the Scotiabank report on the North American market, sales in Canada were running +9% above April 2012, the irst yearon-year gain for 5 months. Similarly April sales in the US were running +13% above April 2012, although the overall sales rate has slipped back.

Data from the Wall Street Journal shows that total April car sales in the US were +3.4% up on April 2012 and YTD running +3.1% up on the irst 4 months of 2012 at 2,552,941.

The data shows the sales of mid-size and large cars to be down -1.9% and -73.6% respectively, although with 1,222,941 sales YTD, the mid-size sector is still the largest car sector in the US. The strongest growth has been in the small car sector, up +9.5% on the same period last year to 985,142.

By contrast, sales of light duty trucks are running +11.3% up on the irst 4 months of 2012 at 2,421,059. Crossovers are responsible for the largest sector of this market with YTD sales up +15.3% to 1,054,609. The American love affair with the pickup truck seems undiminished with YTD sales up +13.2% to 674,289, while April sales alone rose +21.1% compared with 2012. Minivans still outsell midsize SUVs but the gap is narrowing.

Minivan sales fell -5.0% YTD to 250,955, with midsize SUVs looking set to overtake them.

Sales were up +12.4% to 248,811. Minivans are the only sector to show a decrease here.

The best-selling vehicle in the US remains the Ford F-series pickup, up +19.1% YTD to 227,873, having seen sales rise +24.4% for April compared with April 2012. Pickups were in 1st, 2nd and 5th place with the Chevrolet Silverado 2nd and Dodge Ram in 5th. The best selling car was the Honda Accord with sales up +26.4% YTD to 121,965, but down -5.2% in April. The Ford Explorer posted the biggest percentage rise YTD with a +39.6% increase to 66,637.

The Hyundai Sonata posted the largest decline YTD down -16.3% to 63,362.

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www.kia.com

EvEry FlEEt nEEds a Flagship.

» » » »

international Car Of The Year 2013 7-year warranty* fuel consumption from 4.9 l/100 km Up to 177 pS with only 119 g CO2/km**

The Kia OpTima: BOrn TO lead The Kia fleeT. With its bold looks, the Kia Optima has received several design awards. Its convincing high-quality materials and state-ofthe-art technology make the interior of the Kia Optima a real comfort zone for its passengers. Besides diesel and petrol engine options, the Kia Optima offers a hybrid powertrain with surprisingly low CO2 emissions of only 119 g/km, which makes it the first D-segment petrol hybrid launched in Europe. But ultimate peace of mind for fleet customers derives from its 7-year warranty – just like any other Kia fleet member. Simply put, it runs in the family.

Meet a different kind of fleet: www.kia.com/eu/fleet

* The Kia 7-year/150,000 km new car warranty. Valid in all EU member states (plus Norway, Switzerland, Iceland and Gibraltar), subject to local terms and conditions.

Fuel consumption (l/100 km)/CO2 (g/km): urban from 5.7/138 to 10.3/239, extra-urban from 4.4/116 to 6.1/142, combined from 4.9/119 to 7.6/177. ** For Kia Optima Hybrid.