CAN A GOODVALUE CAR BLOW YOUR MIND?
The new KARL
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Meet the brand-new KARL! With up to 5 doors, 6 airbags, Park Assist, Hill Start Assist and best-in-class rear seat roominess – all German engineered. Find out more on opel.com
Fuel consumption in l/100 km: urban 5.6–5.4, extra-urban 3.9–3.7, combined 4.5–4.3; CO2 emissions combined 104–99 g/km.
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CAN A GOODVALUE CAR BLOW YOUR MIND?
The new KARL
contents
Design and functionality at its best.
Meet the brand-new KARL! With up to 5 doors, 6 airbags, Park Assist, Hill Start Assist and best-in-class rear seat roominess – all German engineered. Find out more on opel.com
Fuel consumption in l/100 km: urban 5.6–5.4, extra-urban 3.9–3.7, combined 4.5–4.3; CO2 emissions combined 104–99 g/km.
Publisher Jerry Ramsdale jerry@fleetworldgroup.co.uk
16 Jaguar’s new XF under the spotlight.
24 Global NCAP improving safety.
30 John Bailey of Cox Automotive.
42 BMW’s international fleet portfolio.
Editor John Kendall john@fleetworldgroup.co.uk Deputy Editor Alex Grant alex@fleetworldgroup.co.uk Business Editor Natalie Middleton natalie@fleetworldgroup.co.uk Features Editor Katie Beck katie@fleetworldgroup.co.uk Fleet Consultant Ross Durkin ross@fleetworldgroup.co.uk Sales Director Anne Dopson anne@fleetworldgroup.co.uk Sales Executives Darren Brett darren@fleetworldgroup.co.uk Claire Warman claire@fleetworldgroup.co.uk Circulation Tracy Howell tracy@fleetworldgroup.co.uk Dawn Mitchell dawn@fleetworldgroup.co.uk
04 Fleet Review John Kendall on MINI’s sci-fi Augmented Vision technology. 06 Inside Knowledge What to expect from F&S’s Intelligent Mobility debate. 08 News The biggest stories from a month in the international fleet world. 16 Spotlight An in-depth look at Jaguar’s premium brand-rivalling new XF.
Head of Production Luke Wikner luke@fleetworldgroup.co.uk
18 Motor Show The new models on display at the Shanghai Motor Show.
Designers Tina Ries tina@fleetworldgroup.co.uk
22 RVs Mixed fortunes for operators as residual values vary across Europe.
Samantha Hargreaves sam@fleetworldgroup.co.uk
24 Global NCAP The importance of standardising vehicle safety for new cars. 26 Technology How emergency assistance systems can improve road safety.
Published by Stag Publications Ltd, 18 Alban Park, Hatfield Road, St Albans, Herts, AL4 0JJ tel +44 (0)1727 739160 fax +44 (0)1727 739169 email ifw@fleetworldgroup.co.uk web internationalfleetworld.com
30 Interview John Bailey on Cox Automotive’s expanding global footprint. 32 Technology The connected car and the growing mobile comms sector. 36 Fleet Focus The importance of the small van market to Italy’s economy. 40 International Fleet Academy The benefits of driver reward programmes. 42 Profile BMW’s most efficient engine line-up and tech-rich models to date.
STAG Publications
46 Launch Report Ford S-MAX / Golf GTE / MG6 / Fiat 500X. ®
To subscribe to Interational Fleet World visit: www.fleetworldsubscriptions.co.uk
50 Fleet in Figures Breaking down the latest global vehicle sales by region.
internationalfleetworld.com / 03
fleet review
This month, editor John Kendall welcomes the long-awaited eCall legislation, safer cars, virtual glasses and the clever Golf GTE...
eCall for Europe
Augmented vision?
So after 15 years, the European Parliament has finally voted to introduce eCall, a Europe-wide emergency assistance service that will become mandatory for all new vehicle types from April 2018. It will add to the cost of new vehicles, which will have to be fitted with the location and communication system but if it saves hundreds of lives across Europe every year and reduces the severity of thousands of injuries, it has to be worth it. If it means that people spend fewer days in hospital, there will be a net saving to individual health services and it will help in the quest to reduce deaths and injuries on European roads. By then, systems that are either already in existence from manufacturers, or are about to be introduced, will also be established. That should be good for reducing any teething problems with the networks.
I have worn glasses since I was seven years old and for me the novelty wore off a long time ago. Why anyone would voluntarily choose to wear them is something I don’t really understand. So I was intrigued to see that MINI displayed its Augmented Vision concept at the recent Shanghai Show. The advantages are clear, not least the ability to see ‘through’ the windscreen A-pillars that can too easily obscure pedestrians, cyclists and motorcyclists. I can’t help thinking that the frames themselves will have the unwanted effect of replacing one barrier to vision with another. It’s a clever idea though and well worth exploring further. What do you do if you wear glasses already?
Advantage Golf?
Global NCAP While Europe, North America and other parts of the developed world will have access to advanced safety systems like eCall, it’s a sobering thought that, as Dave Moss highlights on page 24, Global NCAP has said that millions of new cars sold in “low and middle income countries” fail to meet some of the most basic safety standards set out by the UN for front and side impact protection. Global NCAP points the finger at some African, Asian and Latin American countries. Perhaps this includes countries where poverty and natural disasters are seen as greater issues, but there are also some where life is not valued in the way that we understand. Just the same, avoidable road deaths remain just that, avoidable.
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I drove the VW Golf GTE this month and commented to my VW hosts that since the technology was the same as in the mechanically identical Audi A3 e-tron, the two would presumably be equally similar to drive. Not so. The VW has something that the A3 e-tron does not have, as was politely pointed out. You can adjust the level of regenerative braking in the VW, using the gear selector, but you can’t do that in the Audi. Having spent several months last year living with a Mitsubishi Outlander PHEV, the ability to do that was crucial if you take the electric drive system seriously. Just something to think about if you’re weighing the two up for your next car.
visit internationalfleetworld.com
inside knowledge
Intelligent mobility Panel debate on New Mobility Business Models at “Intelligent Mobility Event” focuses on need to integrate teams and synthesize efforts across the industry
W
hile transport authorities reiterate their goals of congestion seems to have been the offer of ride-sharreducing the carbon footprint on the one hand ing and car-pooling services. However, while car-sharand the need to create a safer commuting world on the ing has gained the reputation that every shared car can other, original equipment manufacturers (OEMs) and remove seven cars from the road, reality shows, that it the automotive industry are constantly working on the merely dilutes the need for ownership. At peak time, we development of new vehicles for greener and safer still see the same number of cars on the roads, since carcommuting. The concept of intelligent mobility aims sharing primarily serves several users spread across to bridge the gap between the different industry stakethe day, but not at the same time,” explains Mr. Singh. holders, by defining a roadmap for all which will help “Ride-sharing, on the other hand, gives several to reduce traffic congestion by up to 30%, carbon emiscommuters along the same journey route the opporsion by a tenth and optimise travel speed by up to 60%. tunity to use one instead of three or four vehicles, “The major issue we still face today is traffic congeswhich directly combats the issue of traffic congestion.” tion. More and more vehicles flood the roads which are A combined approach from all stakeholders could built for only a fraction of the vehicles in operation,” however, result in achieving cross-cutting benefits outlines Frost & Sullivan Senior Partner and Global rather than achieving one goal at the cost of another. Practice Director, Sarwant Singh. “But even though “According to our latest research, the combination of most OEMs having dedicated teams for each major efforts could result in a minimum of 15% to as much as sector, such as vehicle automation, cooperative driv33% reduction in crash prevention through incident ing (v2x communication), mobility services or greener management and another ten percent by enhanced commuting, each of these teams works on their own collision avoidance,” concludes Mr. Singh. “Optimizing solution to fight the problem, instead of reaping synerride- or car-sharing models can help to reduce global gies. Intelligent mobility is an approach which tries to costs by USD 5.6 billion annually, while increasing the integrate these teams to syntheaverage travel speed could result size their individual efforts and in a 10-15% reduction in CO2 emis“A combined approach sions. Crowd-sourcing, gamificato arrive at solutions to reduce tion and social networking will be traffic congestion that have from all stakeholders the means to bring this change multifaceted benefits for all could result in achieving also in the driver about.” stakeholders.” Besides focusing on new mobilTo underline the importance cross-cutting benefits.” ity business models and the of the issue and offer a platform future of mobility business to meet and discuss possible models, Intelligent Mobility will bring together industry synergies Frost & Sullivan will dedicate a panel discusexperts on autonomous vehicles, connected cars, Big sion to New Mobility Business Models during its Data in Automotive, cyber security as well as eupcoming annual industry event “Intelligent Mobility: commerce platforms. The conference will be compleFuture Business Models in Connected and Automated mented by a debate at the House of Lords and the Frost Mobility”, taking place on 1st and 2nd July at the House & Sullivan Intelligent Mobility Awards Banquet, a black of Lords and the Royal Garden Hotel in London. tie evening and gala dinner. “So far the industry’s solution to reduce traffic
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NEWS from the global fleet community
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business news
TÜV SÜD Auto Service acquires TCOPlus and FleetVision
in brief
ÜV SÜD Auto Service GmbH has acquired 100% of the shares of TTheTCOPlus and its sister company, FleetVision. two companies, which are based in Belgium and specialists in
Fleet Logistics targets record fleet size for 2015
consolidated fleet reporting, TCO forecast solutions and international fleet consulting, are now 100% affiliates of TÜV SÜD Auto Service GmbH and operate within the company’s Fleet Business Unit along‐ side Fleet Logistics, TÜV SÜD’s European fleet management provider. The two founders of TCOPlus, Bart Vanham and Hans Damen, will continue to act as managing directors. “TÜV SÜD Auto Service’s fleet business is already well established throughout Europe,” said Rainer Laber, CEO of the Fleet Business Unit of TÜV SÜD Group. “The dashboard tools of TCOPlus, like FleetCube, will complete our business unit’s product portfolio perfectly and will support our customers in identifying and realising cost potentials. “But, in addition, customers will be able to simulate the impact of tax changes with the applied forecast functionality of the GreenCube, TCOPlus’ CO2 and tax modelling tool,” he added.
Dhruv S Parekh joins Masternaut as new CEO asternaut has appointed Dhruv S Parekh as its new chief exec‐ M utive officer to lead the next stage of the company’s growth. Mr Parekh joins the pan‐European fleet telematics provider from Capstone, a group of operational executives that work closely with portfolio companies of Private Equity firm KKR & Co. During his tenure at Capstone, Mr Parekh worked with technology companies around the globe to drive major growth programmes. In his new role he will focus on “leveraging Masternaut’s leading technology platform to bring continuous innovation and value to the commercial fleet market through the adoption of telematics.”
Hitachi Capital spearheads global growth itachi Capital has made a series of senior management changes H aimed at growing its Hitachi Capital Vehicle Solutions business across the globe, with particular focus on Europe. Under the changes, Simon Oliphant, currently CEO of the Vehicle Solutions group, has been appointed as head of a new strategy office created by Hitachi Capital Corporation (Japan). Oliphant will become chairman of the Vehicle Solutions UK busi‐ ness, handing over operational responsibility to Jon Lawes, who is currently divisional managing director of Hitachi Capital Commer‐ cial Vehicle Solutions. Robert Wastell will continue as divisional managing director of Hitachi Capital Car Solutions, as will Chris Tarry as general manager of Hitachi Capital Driving Instructor Solutions. Chris Shirai, chairman and chief executive for Hitachi Capital Corporation America and Europe, said: “The launch of the Strategy Office is a clear indication of our group’s appetite to extend the successful Vehicle Solutions formula into other markets.”
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Fleet Logistics has set a target of a new record fleet size of 170,000 contracted vehicles by the end of the year. The latest target follows on from the independent fleet management specialist’s record year in 2014 and will see the company increase its presence in existing countries, expand into new territories and increase investment in new systems.
Vivialys Groupe deploys 39 Toyota hybrids Based in Alsace, France, Vivialys Groupe has taken delivery of 39 Toyota Yaris and Auris hybrids with the help of ALD Automotive as part of a move to upgrade its fleet to predominantly hybrids. The move will also see eco driver training provided by Toyota to help improve the vehicle’s eco credentials.
PSA Finance implements Miles from Sofico Banque PSA Finance, is implementing the Miles software solution from Sofico in four countries in a move to ‘future‐ proof’ the services it provides to fleet customers and dealers. The Miles application has initially been inte‐ grated into Banque PSA Finance’s complex IT landscape in France, with a roll‐out into the Benelux – Belgium, Luxembourg and Netherlands – expected to start shortly.
Bouygues Construction 100% French car fleet The Bouygues Construction Purchasing Department has announced that it has signed up with PSA Peugeot Citroën and Renault to supply its fleet of 11,000 company cars. This follows its previous move to select French constructors to meet its needs for heavy vehicles.
For the latest news, visit internationalfleetworld.com
JATO Dynamics & LMC Automotive launch first joint solution
J
ATO Dynamics and LMC Automotive have published their first joint solution following the announcement of their partnership. The firms said the partnership will deliver “a range of innovative solu‐ tions that will power planning and decision making for clients across the global automotive sector.” The first of these new solutions is the Global Light Vehicle Sales Fore‐ cast. Updated monthly and offering monthly forecasts over a seven‐year time frame, the new product will cover global passenger and light commercial vehicles (up to six tonnes) broken down by manufacturer, make, vehicle type, segment and model representing 94% of global sales.
fleetweet a few soundbites from a month in fleet
@PhilipN_CAP Philip Nothard , Black Book Retail & Consumer editor at CAP Automotive
Did you know? The EU produces 35 #MotorVehicles per person – an #industrial world leader @ACEA_eu in #dealers
@jehorowitz
Drivers rate company car size ahead of appearance, finds LeasePlan
hen it comes to choosing a new company car, size beats appearance, according to global LeasePlan MobilityMonitor research. W Based on a survey by TNS among 3,377 lease drivers in 20 countries worldwide, the research confirms that 80% of all lease drivers see size of the vehicle as the most important selection criterion when choosing a car. Only in countries like Brazil or Turkey is appearance is ranked higher. In addition to size (80%) and appearance (in 73% of cases mentioned as most important selection criterion), the LeasePlan MobilityMonitor shows that lease drivers consider brand to be an important factor when choosing a new company car (62%). However, not every lease driver is allowed to pick the brand he or she is passionate about due to their company’s regulations. A total of 41% choose from a predefined list of brands and in 33% of cases the company will make the decision. One out of four lease drivers surveyed was able to choose any brand they preferred.
Mike Nigro becomes SVP of European operations at Enterprise
E
nterprise Holdings has announced that Mike Nigro, managing director UK and Ireland, has been appointed as senior vice president of European operations as Jim Burrell retires. His appointment comes less than six months after Enterprise Holdings terminated a Master License Agreement that Europcar held to operate the National Car Rental and Alamo Rent A Car brands in Europe. Mr Nigro will play a key role in determining how those brands are rolled out across the continent to serve the needs of specific rental customers. He takes over Enterprise’s European operations from Jim Burrell, who will retire from the business in July after more than 30 years with Enterprise. The company is currently recruiting internally to replace Mike Nigro for his former role in the UK & Ireland.
Jordan Horowitz, producer, Gilbert Films
When will Google and Uber have competing fleets of driverless cars? I am impatient
@ACEA_eu Official account of ACEA
Did you know? 25 of today's trucks and buses are together quieter than a single one built in 1980
@PeterNunn3 Peter Nunn, motoring journalist
Re the new #Mazda, #Toyota partnership, seems a good match of Mazda's design and SKYACTIV tech with Toyota business power. Both sides gain
@johnmcilroy John McIlroy, motoring journalist at What Car? and Autocar
Easy to get ahead of yourself on Toyota/Mazda tie-up, announced today. Mazda rotary tech in Toyota range-extender hybrids? #potential
@Chris_Pickering Chris Pickering, motoring journalist
Saw two Teslas on the way to work. Like the new Maserati Ghibli, the Tesla Model S seems to have come from nowhere
internationalfleetworld.com / 09
The most important meeting of 2015. The new CLA Shooting Brake.
A Daimler Brand
Space and design meets less emission. Take a decision for comfort and an intelligent energy management. www.mercedes-benz.com/fleet
Provider: Daimler AG, MercedesstraĂ&#x;e 137, 70327 Stuttgart, Germany
environmental news
Norwegian EV initiatives to continue until 2017
T
he Norwegian government has voted to retain finan‐ cial incentives for electric vehicle until the end of 2017, despite reaching its sales target two years early, saying it wants to give consumers long‐term predictabil‐ ity of running costs. With electric vehicles accounting for 2% of Norway’s parc, the country has the largest per‐capita vehicle ownership rate in the world, helped by a package of financial and convenience incentives for private and business users. Designed to give electric vehicles a financial advantage over petrol or diesel models, these include exemption from purchase tax, as well as road tolls and parking charges, plus a 50% discount on company car tax, doubling of mileage rates and access to public transport lanes and free public charging points. This was initially targeting 50,000 registrations by 2018, but the scheme has been so successful that it met that milestone in April, prompting a review.
But the system has come under criticism, particularly as the high take‐up of electric vehicles in large cities has caused delays with public transport. Although financial incentives will remain, local authorities will be given new powers to set parking and charging fees and decide on public transport lane access over the next few years. Changes in registration tax will be gradually intro‐ duced from 2016, with the aim of progressively weighting cost against vehicles with high CO2 output and recognising NOx emissions too. Electric vehicle discounts from the annual fee will also be gradually reduced, though not removed until the end of the decade, and a rights‐based subsidy is being considered at the point of purchase. While this is expected to continue to reduce tax revenue, the government said it is planning not to suddenly ramp up costs for specific vehicles, instead saying it wants to continue to promote the use of “newer, safer and more environmentally friendly” models.
Tesla to unveil electric 3 Series rival next March T esla is readying its factories for production growth this year, confirming that the Model 3 compact executive sedan will be unveiled in March 2016, shortly after the launch of the Model X SUV. Speaking during the company’s Q1 2015 investors’ confer‐ ence call, co‐founder and CEO Elon Musk said Tesla Motors is investing heavily in new technology, reduced manufacturing costs and additional capacity for the new and existing models – factors which had contributed to its $154m (€135m) oper‐ ating loss for the first three months of the year. In the short term, this will prepare it for the Model X seven‐ seat SUV, which will be available to configure – though likely
12 / internationalfleetworld.com
only for North America at first – from July, with first deliver‐ ies expected in the autumn. Its delayed launch is attributed to bigger than expected differences compared to the Model S, including the upwards‐hinging ‘Falcon Wing’ doors. The Model 3, an electric compact executive car, is sched‐ uled for a March 2016 unveiling, potentially at the Geneva Motor Show. Musk said he believes this will arrive from mid‐ 2017, though added that the autumn was more realistic. Tesla delivered 11,160 vehicles during the first quarter of 2015, up 10% on forecasts, and is anticipating expenditure will continue to rise during the rest of the year. Including the Model X, it expects to have delivered 55,000 units by the end of the year.
For the latest EV news, visit evfleetworld.com
Magnesium ion could pave way for high-energy EV batteries
R
esearchers at the University of Illinois, Chicago, are claiming to have developed an electrode structure using magnesium which could significantly out‐perform lithium‐ion technology used in today’s electric and plug‐in hybrid vehicles. Batteries have positive and negative electrodes, exchanging ions via an electrolyte which forces the positive ions through an electri‐ cal circuit. While lithium ions carry a single positive charge, magne‐ sium ions carry two, in turn enabling them to move twice as many electrons and making it an ideal material for electrodes. Using a battery‐like chemical reaction, based on an electrode with a similar structure to those used in many consumer devices, the team claims to have taken the first step towards a prototype of the new technology, which could enable higher performance batteries than the current generation, the research said. At present, this is only limited by inefficiencies in the chemical reaction, which reduce the number of times the ‘battery’ can be recharged.
UK government considers reduced grants for PHEVs
T
he UK’s Office for Low Emission Vehicles (OLEV) has begun a review of the Plug‐in Car Grant as it develops a follow‐on scheme which could differentiate between different types of electrically‐powered vehicle. Launched in 2011, the grant offers up to £5,000 (€6,900) or 35% against the purchase of new vehicles which emit less than 75g/km CO2, offer a range of at least 113km (10 for plug‐in hybrids) and can reach 67km/h, as well as satisfying safety and warranty requirements. OLEV introduced three categories from the 1 April, grouping eligible cars based on their CO2 emissions and electric range. It is likely that these cate‐ gories will underpin the next grant scheme, reducing the funding available for cars which feature large petrol engines or can only travel a short distance on electricity to encourage EV take‐up. Plug‐in Hybrids, led by the Mitsubishi Outlander PHEV, outsold battery electric vehicles more than two‐fold in the first quarter of 2015, according to data from the Society of Motor Manufacturers and Traders. However, not all plug‐in hybrids are eligible for the grant.
EV 861 in numbers
Nissan electric vehicles on Avis Denmark’s fleet, the largest in Europe, following 461 newcomers.
SOURCE: Nissan Denmark
in brief Rise in European EV registrations Demand for alternative fuel vehicles (AFVs) in the EU soared in the first quarter of 2015, totalling 144,421 units (+28.8%) according to the European Automobile Manufacturers Association (ACEA). Regis‐ trations of electric vehicles more than doubled year‐on‐year, the association said, from 11,304 units to 24,630, while hybrids reached 56,704 registrations (+21.4%).
Fleets to inform EV incentives UK fleets are being asked for feedback on international incentives for electric vehi‐ cles to assess how they could improve uptake in Britain. Conducted by the Elec‐ tric Vehicle Centre of Excellence at Cardiff University, it forms part of the Europe‐wide Incentives for Cleaner Vehicles in Urban Europe (I‐CVUE) project, and the results will be published this autumn.
Volkswagen Group plans 20 plug-ins for China The Volkswagen Group is planning to launch 20 plug‐in vehicles in China, claim‐ ing the technology is vital to meet the government’s 5.0l/100km fleet‐wide fuel consumption figures by 2020. With low diesel uptake in China, the Group has invested €18m to develop new models and add capacity, and the first domestically‐ produced plug‐ins will launch in 2016.
EVtweet of the month @christiaanhtznr Registrations of new electric cars in the EU more than doubled in Q1 to 24,630 vehicles from 11,304 in year-ago period says ACEA
49g/km CO2 emissions for the new BMW 330e, the first ever 3 Series plug-in hybrid, matching the Mercedes-Benz C 350e.
Source: BMW
internationalfleetworld.com / 13
manufacturer news
Lexus to launch in Turkey
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he Lexus brand will be launched in Turkey this year, with a first showroom to open in Istanbul in Q4 2015. Ali Haydar Bozkurt, president of Toyota Turkey Marketing and Sales, said: “There has been demand for Lexus in Turkey for a long time. With the renewal of the product range and the introduction of new 2.0l turbo engine options, we believe that this is the most appro‐ priate timing to enter the market. Our aim is also to bring the Lexus standard of unparalleled customer experience to Turkish customers, which will create a unique posi‐ tioning for Lexus.” Operations of Lexus in Turkey will be managed by ALJ’s subsidiary, Toyota Türkiye Pazarlama ve Satis AS.
Toyota and Mazda form technology-sharing agreement
T
oyota and Mazda have entered a long‐term part‐ nership aimed at sharing their environmental and safety technologies, including hybrid systems, to meet the demands of global customers. The two carmakers will establish a committee, which will establish how the company’s technological strengths will be shared out, but it is known that Toyota’s hybrid drive system will be licensed to Mazda. Mazda’s plant in Mexico, where the Mazda2 is built, will also produce small models for Toyota. Toyota president Akio Toyoda said: “Mazda has proven that it always thinks of what is coming next for vehicles and technology, while still managing to stay true to its basic carmaking roots. In this way, Mazda very much practises what Toyota holds dear: making ever‐better cars. “I can think of nothing more wonderful than showing the world – together – that the next 100 years of cars will be just as fun as the first.”
Refreshed 3 Series to include 99g/km model
B
MW has unveiled a refreshed version of the 3 Series range, which features a 99g/km diesel, a plug‐in hybrid and a three‐cylinder petrol engine. On sale from late summer, the facelifted car is marked out by re‐shaped bumpers, LED daytime running lights from the 4 Series Coupe concept, and accents of chrome inside, while new technol‐ ogy includes active cruise control and segment‐ first 4G LTE high‐speed connectivity. The engine range comprises four petrol engines and seven diesels, with the new 318i at the entry‐ point. This produces 134hp and offers CO2 emis‐ sions of 119g/km. Diesels comprise a range of four‐cylinder units, and the 163hp 320d EfficientDynamics is the economy leader – this can now rival the Jaguar XE with CO 2 emissions of 99g/km and 3.8l/100km when equipped with the Steptronic automatic gearbox.
Ford to showcase Vignale models at new flagship FordStores ord is opening the first of its new flagship Ford‐ F Stores, which will showcase the new and exclusive Vignale models as well as providing an enhanced customer experience. The carmaker is to open 200 flagship FordStores across Europe this year with plans to confirm a total of 500 FordStores by the end of 2016. The new FordStores, which will be located primarily in metropolitan areas, will include dedicated areas for Transit and business customers as well as the new Vignale Lounge for customers of Ford’s new luxury product and personalised ownership experience. The launch of the FordStores comes as Ford launches the Vignale Mondeo – the first in the Vignale line‐up.
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The new Hyundai i30 and i40
Business travel redefined. The striking new Hyundai grille signals a significant upgrade in the world of business travel. Both cars offer refined performance from engines that deliver an optimum balance of power and efficiency. There’s also the availability of a 7-speed dual-clutch transmission, heated and ventilated front seats, Bi-Xenon headlamps and other user-friendly technologies. Factor in low cost of ownership, and even your finance department will appreciate the upgrade. The Hyundai i30 and i40. Expect more.
Hyundai i30: Fuel Consumption 3.6 - 7.3 l/100 km, CO2 Emissions 94 - 169 g/km. Hyundai i40: Fuel Consumption 4.2 - 7.5 l/100 km, CO2 Emissions 110 - 176 g/km. The 5-year unlimited mileage warranty is valid in all EU member states + EFTA. Warranty is subject to local terms and conditions. For taxi or rental usage model specific restrictions apply. For more information, visit www.hyundai.com/eu
SPOTLIGHT Jaguar XF
In XF Lighter, more efficient and a technological showcase, Jaguar’s executive sports saloon has all the right ingredients to take on the German premium brands in fleet, says Alex Grant.
More affordable Though it’s become the backbone of Jaguar’s fleet sales in recent years, the outgoing XF launched as a retail-focused car and has had to evolve to meet the demands of the fleet sector. This time, it’s designed to compete head-on with the biggest-selling versions of its German rivals. Global fleet director, Ken Forbes, wants to see it come closer to the segment-norm 59% fleet share. Lighter materials and new diesel engines bring CO2 emissions down from the old car’s 129g/km entry point to a class-leading 104g/km, with obvious tax benefits for drivers and operators, and Jaguar has worked with RV setters to get ahead of rivals. The six-speed manual gearbox – available for the first time in an XF – helps lower entry prices too. It means the XF makes sense financially as well as emotionally this time.
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Better to drive Jaguar is positioning the XF as a sports saloon, so the driving experience is vital. The aluminium-rich construction has cut 190kg from the weight of the old car while increasing stiffness by 28%, both of which will make it more agile than its predecessor. The variable electric power steering is derived from the XE’s, as are the dual-wishbone front and integral link rear suspension setups, offering supple ride quality and sporty handling. On-board technology is becoming just as important, and the cabin features Jaguar’s InControl Touch infotainment system with the ability to view and control smartphone apps. Most buyers are expected to upgrade to InControl Touch Pro, which replaces the traditional instruments with a customisable 12.3inch high-resolution screen. A collaboration with mapping specialist HERE means it can memorise the driver’s commute, monitor for traffic, and send text messages if they’ll be late.
Designed for life Considering its technological advances, the XF’s design is evolutionary – a sign that Jaguar got that bit right beforehand. It’s slightly smaller and more aerodynamic than its predecessor, while the straight shoulderline is designed to make it look leaner, in turn meaning it doesn’t look underwheeled in lower trim levels and reflecting its fleet focus. The range matches the XE, including luxurious Portfolio and aggressive-looking R-Sport versions topped by the S and with the Prestige at the entry level. Despite its shrinking dimensions, the wheelbase is longer and the cabin is a big improvement on the outgoing car. The aluminium dash pad with its rotating air vents and phosphor blue lighting is retained, and rear seat occupants get more head and leg room and – through the extra window on the C-pillar – more light too. Luggage capacity is best in class, and a Sportbrake estate isn’t far away.
What we think...
FLEET FACT Jaguar sold 48,000 XFs globally last year – a record, and a fifth of its total volume.
The outgoing XF marked the start of a bolder, more stylish Jaguar brand back in 2007 and has become increasingly appealing in the years since – 2014 was a record year for sales. Its replacement combines that same sense of style with the brand’s latest engine, connectivity and construction innovations, and a sizeable decrease in whole-life costs will make it even more desirable. With a core diesel range under 120g/km, and the XE under 110g/km, Jaguar has the heartland of its product portfolio exactly where it needs to be, which can only grow its presence in fleet. AG
internationalfleetworld.com / 17
MOTOR SHOW Shanghai
Shining
in Shanghai
New models were on show from Chinese, European and US manufacturers at the recent Shanghai Show, as John Kendall reports.
Chevrolet FNR Concept Chevrolet unveiled its FNR autonomous electric vehicle concept at Shanghai with the aim of showing an intelligent vehicle designed for tomorrow’s younger drivers. Car networking technology is incorporated, while features include crystal laser head and rear lights, magnetic hubless wheel electric motors and a wireless automatic charging system. Sensors and roofmounted radar are used for autonomous driving.
Citroën Aircross Citroën launched the Aircross SUV concept at the Shanghai Show; with an interior that Citroën says is designed to create a sense of wellbeing. Connectivity is a key theme too and Citroën promises exceptional graphic interfaces. The concept uses a plug-in hybrid powertrain.
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Geely Emgrand Concept Geely’s Emgrand is a concept sports saloon. Chinese visual culture is said to be part of the inspiration for the design. The interior is said to draw on Chinese architectural details and traditional patterns. The centre console incorporates a mode selector and drivers can choose between ‘eco’, ‘city’ and ‘sport’ modes.
HAVAL Concept R, B HAVAL, a Chinese SUV specialist, unveiled a number of new cars and concepts at Shanghai. Two of these, Concept B and Concept R show the company’s new logo strategy. R is for red and B is for Blue and HAVAL plans to launch products where Blue stands for “cool and brand-new style, with sporting features and scientific and technological sense and target young consumers.” Red stands for “Open-minded and pretentious style, and will concentrate on luxury, the accessible and multifunctional to target family-based consumers.”
MG GS MG unveiled its GS SUV. The company gave few details of the new model, which is due on sale soon in China. A version designed for the UK is planned for late in 2016, but MG has not discussed plans to market the car in other European countries. The car will be offered with a choice of engines, transmissions and drivetrains.
Mercedes GLC Concept It’s a near-production-standard study says Mercedes-Benz. Essentially a downsized GLE Coupe, it could rival the BMW X4 and the company hints clearly that the model is heading for production. The concept came with direct-injection biturbo 367hp V6 power with 520Nm of torque, an engine already in use with AMG models. It was equipped with 4MATIC four-wheel drive and ninespeed automatic transmission..
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MOTOR SHOW Shanghai
Nissan Lannia Pitched at young Chinese customers, the new Lannia saloon has been drawn from the FriendME and Lannia concepts seen in 2013 and 2014. Design features include kick-up C-pillar, floating roof and boomerang-shaped LED lights.Connectivity with a seven-inch multimedia display features inside. The car will go on sale this autumn only in China.
Qoros 2 SUV Concept Qoros revealed its latest concept at Shanghai in the shape of the Qoros 2 SUV PHEV, designed by teams in Munich and Shanghai under design vice president, Gert Hildebrand. The concept incorporates an all-wheel-drive system and plug-in hybrid powertrain.
Venucia VOW Concept Venucia is a Chinese joint venture between Nissan and Dongfeng. VOW is said to stand for ‘Venucia Over Wonder’ and the bright blue body is said to be inspired by Bolivia’s Salar de Uyuni plateau in the Andes Mountains. The concept is aimed at young Chinese buyers.
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Volkswagen C Coupe GTE This four-door coupe concept for the Chinese market was unveiled at Shanghai and measures over five metres long. It features a plug-in hybrid drive system which is said to deliver 500Nm of torque altogether from the 210hp turbocharged direct injection fourcylinder engine and 124hp electric motor, driving through an eight-speed automatic gearbox. The battery pack gives an electric range of 50km.
MINI Augmented Vision Not another MINI variant, but a new display concept unveiled at Shanghai. It’s not dissimilar to the discontinued Google Glass in that the user needs to wear glasses that will permit information to be displayed in the lenses. This will include selecting a destination outside the vehicle and transferring it to the navigation system in the car, a display of the first and last mile of the journey, head-up display functions of speed, speed limits, X-Ray view to provide a virtual view through A-pillars and augmented parking, linking external cameras. See page 32 for more info.
Lifan Two new SUV concepts from Chinese maker Lifan were given their debuts at Shanghai. The X40 is a compact SUV and the X70 a larger SUV model. Lifan has its eyes on export markets for the production version of the X70, which will be available with fourwheel-drive. The company also introduced CVT transmissions to existing models such as the X60 and X50 SUVs.
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RVs
Analysing leasing and residual value confidence in the Eurozone and beyond...
Mixed European fortunes Fleet operators across Europe are enjoying mixed fortunes, with rental rates rising as dramatically in certain nations as they are falling in others. Experteye reports.
I
Market summaries – 3 and 12 months to April 2015
n the last year, from May 2014, monthly contract hire rates in Germany have risen by +7.9% whereas fleet operators in Portugal have enjoyed a ‐9.5% fall in their prices over the same period. France (+5.3%), Spain (+4.6%) and the UK (+4.4%) have also seen rises in their rentals, whereas in Italy they came down by ‐2.9%. The figures come from the latest Expert‐ eye European Leasing index survey, which tracks forecasted residual values (RV), serv‐ icing, maintenance and repair (SMR) costs and rental rates in six European countries using data supplied by major leasing companies. The shifts in rental appear, however, to be slowing and in the last quarter the picture has been much calmer; the biggest rise in quarterly rentals being a +2.6% increase in France. The nation seeing the biggest fall in prices over the last three months was Italy with a ‐1.8% reduction. Perhaps surprising is the fact that the dramatic annual shift in rentals came during a 12 month period in which every nation surveyed by Experteye saw an improvement in its average forecasted residual values, although average car prices also rose by up to +8.5%.
FRANCE: Rental rates have gone up by +5.3% in France over the last 12 months, also rising by +2.6% for the latest quarter. Forecasted RVs went up by +2.5% for the year and +0.1% for the quarter. SMR budgets rose by +3.6% since May 2014 and by +1.5% since February this year. GERMANY: German fleet operators have suffered the largest annual hike in rentals of all nations surveyed, with a +7.9% increase in prices, albeit this has settled in the last quarter with a ‐0.6% reduction in contract hire rates. Forecasted resid‐ ual values are up, with a +3.7% rise since May 2014 and a +0.4% improvement for the quarter. SMR budgets had been quite stable, with a small ‐1.2% reduction over the last 12 months, however since February 2015 they have fallen by an incredible ‐9.2%. ITALY: SMR budgets in Italy have plummeted by ‐9.1% over the last 12 months, but have only seen a ‐0.5% fall in the last quarter. Italy reported the largest improvement in its annual RV forecasts with a +4.9% rise for the year, followed by a +2.9% increase for the quarter. Rentals are falling, with a ‐1.8% price cut in the last three months following a year that saw them fall by ‐2.9%. PORTUGAL: Portuguese fleet operators have enjoyed the biggest savings of all nations surveyed, with a ‐9.5% reduction in rentals over the last 12 months. Rates have crept up by +0.1% this quarter. SMR budgets had seen a fall of ‐4.9% for the year, but rose by +0.2% for the quarter. Forecasted RVs were up by +2.7% since May 2014, but went down by ‐0.1% since February. SPAIN: In Spain, rental prices went up by +4.6% in the last year, but fell by ‐1.3% in the last three months. Forecasted RVs rose by +2.2% since last May and by +1.2% since February this year. SMR budgets had been rising over the 12 months, with a +2.8% increase, but dropped by ‐4.3% during the quarter. UK: Forecasted residual values rose by +0.9% over the last year, making the UK the least optimistic of all nations surveyed. However, a +2.9% improvement in RVs makes the UK the most optimistic for the quarter. SMR budgets have risen by +5.6% since May 2014, the largest rise in the Experteye survey, but fell by ‐0.2% since Febru‐ ary 2014. The impact on rentals has been a +4.4% annual rise and a ‐1.7% quarterly fall.
CHANGES IN RV FORECASTS, SMR COST FORECASTS AND LEASE RENTALS Forecast Residual Values
Forecast Service, Maintenance and Repair Costs
Current Rental Rates
3-month change 12-month change 3-month change 12-month change 3-month change 12-month change France Germany Italy Portugal Spain UK
+0.1% +0.4% +2.3% -0.1% +1.2% +2.9%
+2.5% +3.7% +4.9% +2.7% +2.2% +0.9%
Notes: • The comparisons are for vehicles with a contract duration of 36 months/90,000km. • Twelve-month comparisons show change since May 2014. • Three-month comparisons show change since February 2015.
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+1.5% -9.2% -0.5% +0.2% -4.3% -0.2%
+3.6% -1.2% -9.1% -4.9% +2.8% +5.6%
+2.6% -0.6% -1.8% +0.1% -1.3% -1.7%
+5.3% +7.9% -2.9% -9.5% +4.6% +4.4%
• Rental rate changes compare the rates in effect at the time of the survey with those in effect three or twelve months ago. • RV and SMR changes show the change in participating leasing companies’ forecasts of residual values and maintenance costs over the period.
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TECHNOLOGY Global NCAP
Improving global safety by 2020 Safety standards for new cars are still lacking in many developing countries, says Global NCAP, as Dave Moss reports.
T
he international vehicle safety watchdog Global NCAP says that millions of new cars sold in what it describes as ‘low and middle income countries’ currently fail to meet some of the UN’s most basic safety standards for front and side impacts. Speaking in Geneva at the launch of a hard‐hitting future policy docu‐ ment, the organisation’s chairman, Max Mosley, said safety improve‐ ments brought about by legislation and growing consumer awareness in high income economies have saved hundreds of thousands of lives. But, he continued, they are not yet always available for car buyers in rapidly growing lower income markets. Mr Mosley said: “...crash test stan‐ dards introduced twenty years ago for cars sold in Europe are not yet met by many new cars, even brand new models, currently sold in places such as Africa, Asia, and Latin Amer‐ ica.” As part of its newly adopted policy, Global NCAP is looking to legislators and manufacturers to rapidly raise car safety standards in these and other areas – to bring them much closer to those now accepted as normal in regions such as Europe and the US. The document’s author, secretary‐ general David Ward, has firmly linked these calls for rapid change to the current UN decade of Road
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Safety. He says: “By 2020 we want all new cars to meet basic standards for crash avoidance and front and side crash protection, including crumple zones, air bags, and elec‐ tronic stability control – in line with existing UN regulations.” Global NCAPs new policy state‐ ment, ‘A road map to safer cars by 2020,’ presents what are described as ‘10 clear life saving recommenda‐ tions,’ with the potential to prevent many thousands of avoidable deaths, and hundreds of thousands of injuries – every year. Though some points are quite technical, the docu‐ ment covers the full range of auto‐ motive operations from design and manufacture through to maintaining adequate safety standards during a vehicle’s lifetime. The organisation is hoping that, before 2020, worldwide car safety standards and regulations can be made more consistent, no matter where vehicles are produced or sold. It is looking for more commonality of standard safety equipment specifica‐ tions, and is recommending rental and fleet purchasers adopt Global NCAP’s specialist ‘Buyer’s Guide’, choosing ‘five star’ safety rated vehicles wherever possible. Governments and the insur‐ ance industry alike, it says, should provide incentives to encourage more rapid deployment of safety technolo‐ gies in new cars as they go on sale.
Safety on a truly global scale... To improve the safety of cars in use, there’s a call for UN member states to consider introducing scrappage schemes to take older vehicles off the road – and to introduce regular test‐ ing, including tyre tread depth and pressure checks to make sure vehicles in service continue to be safe and fit for the road. Finally, Global NCAP hopes to pick up government support as it works on extending its operations in consumer‐ related vehicle safety testing, to cover the widest range of new models – across all major automobile markets worldwide. Currently the organisation is grant funded and covers eight regions, amongst them Latin America and the Caribbean, the US, Europe and the major far eastern markets of China, Japan, Korea and south east Asia.
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TECHNOLOGY eCall
eCall to advance road safety eCall and other emergency assistance systems from motor manufacturers could help to reduce deaths and injuries on the roads, reports John Kendall.
I
t has taken years, in fact 15 years since the project was first discussed, but on 28 April, the European parlia‐ ment voted to fit eCall systems to all new vehicle types across the European Union from April 2018. If the usual pattern follows, that will mean that eCall will become mandatory on all newly regis‐ tered vehicles from 2019. eCall works by monitoring the impact sensors fitted in cars to determine when safety systems need to be deployed. The system also monitors airbag sensors. When eCall senses that an impact has happened, it will automatically send a call via the mobile phone network to the local emergency services, which will also include GPS data so that the emergency
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services can find the vehicle without delay. Since the call is made automatically, it would be made even if the driver or vehicle occupants were unable to make the call. A button inside the car will also enable calls to be made manually, for instance if a driver witnesses another incident and wants to call the emergency services. The European Automobile Manufactur‐ ers Association (ACEA) which has supported the introduction of eCall welcomed the decision: “With eCall to be available on new vehicle types in April 2018, this decision brings Europe one step closer to making operational a system which we have been advocating since 2004,” said Erik Jonnaert, ACEA secretary general.
“The European Commission claims that the system will save hundreds of lives in the EU every year and considerably reduce the severity of injuries.”
Faster response times “Vehicle manufacturers are committed to protect‐ ing their customers’ privacy. However, at the end of the day, we cannot forget that the primary purpose of eCall is safety. The industry feels that the final text strikes a good balance between saving lives and protecting data,” stated Jonnaert. Data protection issues have been partly respon‐ sible for the delay in implementing the system although standardising communication protocols and language barriers have also played a part. Benefits of the system include faster response times, reduced by as much as 50% in countryside areas according to the European Commission. The Commission also claims that the system will save hundreds of lives in the EU every year and consid‐ erably reduce the severity of injuries in tens of thousands of cases.
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→
TECHNOLOGY eCall
eCall to advance road safety OnStar for Europe → GM The European announcement
was made shortly after General Motors announced that it would introduce its OnStar system in Europe, at the Geneva Show in March. OnStar was originally launched in the US in 1997 and North American GM customers have had the benefit of eCall type facilities since the system was launched. OnStar for Europe will have a call centre based at GM’s Vauxhall offices at Luton in the UK. Car users will be able to speak directly to advisers 24 hours a day, all year round. All they will need to do is press the OnStar button in the vehicle.
Focus on safety GM will concentrate initially on the safety aspects of the system, as Brian McCreavy, subscriber services region
manager for OnStar explains, “Safety and security is really a key driver that everybody can relate to, so that’s the kind of thing we can help with. Having the live connection with a human being who has a number of resources at their disposal and can help in any number of situations can really make people feel better about going out on the road and travelling, in case there’s an issue.” OnStar users will be able to request assistance just by pressing an ‘SOS’ button, whenever they feel it is neces‐ sary. This would give a priority connec‐ tion to an OnStar adviser. If an airbag were activated, an alert would be sent automatically to OnStar. An adviser would then contact the car to see if assis‐ tance is needed. If no response were received, the emergency services would be notified immediately and because the
How General Motors’
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system can locate the car, there would be no confusion about where it was. Besides emergency use, advisers will be able to send navigation data direct to the car’s navigation system. Users will be able to call up maintenance data such as oil life or tyre pressures, remotely lock or unlock the car, locate the car online, or sound the horn and flash the lights. If the vehicle were reported stolen, OnStar would be able to prevent the engine from being started. Users can choose whether or not they want to reveal the current location of the vehicle and can mask the posi‐ tion by pressing a privacy button. When an airbag is activated, OnStar would automatically override the privacy setting, if active, so that the emergency services could get to the vehicle as soon as possible.
works...
Laws and language When OnStar is launched, it will be available in 14 markets across Europe. These include Austria, Belgium, Germany, Ireland, Italy, Luxemburg, the Netherlands, Poland, Portugal, Spain, Switzerland and the UK. This presents a number of chal‐ lenges as Brian McCreavy explains, “One of the biggest things that we had to focus on was making sure that we respected all the different laws and different cultures and languages. We had to break down all the services that we provide and then understand how we were going to go about training advisers to handle those situations.” Initially OnStar will be launched in eight different languages, “The major‐ ity of the languages that we speak will be English, French German, Italian and Spanish,” explains McCreavy, “The others would be Dutch, Polish and Portuguese. “The way the system works is that you change the language in the vehicle itself. Then when you press the OnStar button, the adviser will know what your language preference is and what language to speak to you in.”
Emergency calls McCreavy takes us through what happens when someone presses a button in the vehicle to call OnStar, “When there is a button press from the vehicle, we know exactly whether it’s from a blue services button or a red SOS button and we can then act accordingly. If it’s a red button, we have it routed to an adviser as a prior‐ ity. During emergency situations, the first thing we say is, “OnStar emer‐ gency, are there any injuries in the vehicle?” If we delay with any other chatter, it’s not helping the customer and time is of the essence.” In an emergency, the adviser stays connected until help has arrived. “If we don’t get any feedback from the occu‐ pants of the vehicle, we’ll stay on the line until we hear emergency services at the scene”, says McCreavy. “If we were able to communicate with the occu‐
pants, we would let them know that help is on its way and stay with them until we know they are in good hands.” McCreavy has worked for OnStar since 1997 in the early days of the system in North America and has seen how the system has evolved in the US, Canada, Mexico and China, where OnStar has around seven million customers. Maintenance data is one thing the system will offer and OnStar will offer fleet reporting tools. “Over time we will be able to offer more services to fleets,” says McCreavy. Users will be given an initial 12‐month free trial period.
BMW Assist Advanced eCall BMW offers a similar system, BMW Assist Advanced eCall, which forms part of the BMW Assist option. Like eCall the system monitors the vehicle crash sensors. If these detect a likely accident, the system automatically sends an SMS message to a BMW call centre. The message can provide detailed information including loca‐ tion, the number of front seat occu‐ pants, the severity of the crash, vehicle direction, the number of airbags that were triggered and which seatbelts were in use. If the vehicle is equipped with rollover sensing, the system can also indicate if a rollover has happened. The system can also use the data gath‐
ered to predict the severity of the injuries, to help the call centre deter‐ mine the assistance needed. A voice link is also established so the operator can speak to the occupants. If no response is received, the emergency services would be called immediately. eCall, OnStar and Assist Advanced eCall offer ways of improving risk management after the unwanted has happened. Obviously it is far more desir‐ able to manage risk so that the likelihood of such incidents is reduced. Neither telematics nor software are require‐ ments to ensure this happens, but the use of mobile apps to help manage road risk is a growing trend, according to John Cameron, general manager of Trimble Field Service Management in the UK: “To run a safe fleet 24/7, drivers need constant benchmarking on how they can improve their driving performance, lead‐ ing many organisations to seek more sustained approaches than just one‐off driver training.”
Mobile apps “Mobile apps, developed to allow drivers themselves to monitor their driving behaviour by getting data from the vehicle sent to their smartphone, are fast making an impact. For the driver, having the intelligence of how they are performing at their fingertips greatly increases their road awareness and empowers them to make immediate improvements to be a better, safer driver. For the business, it can benefit from mitigated risk, a reduction in acci‐ dents and boast a safer workforce out on the road,” suggests John Cameron. Such an app can pick up on key ‘events’ such as braking, acceleration, speeding and turning and will judge the manoeuvre as being acceptable, moderate or hard. Drivers are also able to view their safety score and compare it against the average for the rest of their team. For example, information can be based on a rolling week and will show the score for the previous seven‐day period. To help foster further improvements, businesses can use this infor‐ mation to incentivise their best performing drivers and provide training for those that are struggling to improve their safety scores.
internationalfleetworld.com / 29
W
ith a vast empire in the USA, and best‐known for its Manheim remarketing opera‐ tion – it runs 78 auction sites in the US alone – the 100‐year‐old‐plus family‐ owned group is now active in five conti‐ nents and 15 countries. As well as the UK, Germany, France, Italy and Spain the roll call includes Brazil, Thailand, Australia, Turkey and China. In a digital age Cox Automotive has gone far beyond the running of physical auctions and is deeply involved with online methods of vehicle disposal. China adopts on-line “In China for example we invested in an online classified business called BitAuto a couple of years ago – we’re the biggest shareholder – and it is now the largest business of its type in the country,” says Cox Automotive executive vice‐president international, John Bailey. “We’re also involved with Jingzhengu which will soon be giving online used car valua‐ tions for the Chinese market. “It’s a joint venture between our online Kelley Blue Book valuation tool and vehi‐ cle information forum – a big consumer brand in the USA – BitAuto and the Chinese Automobile Dealer Association. “The Chinese used market is steadily evolving but lacks valuation data.” In the USA Kelley Blue Book values 443m cars annually and is consulted by an astonishing 48% of new car buyers. Cox has also invested in autostreets.com, a Chinese online vehi‐ cle sales platform founded by Baoxin Auto Group. Other shareholders include CMB International, a subsidiary of China Merchants Bank. Though a respectable size and without doubt worth engaging in, the second‐ hand market in China is nowhere near as big as it should be.
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INTERVIEW John Bailey, Cox Automotive
Cox charts global expansion Brazil, Thailand, Australia Turkey, China… Multi-faceted Cox Automotive is expanding its global footprint. “Even though 19m new cars are sold every year in China – that could be 22m by 2020 – and there are 87.3m cars in use, the second‐hand market is only 5m,” Bailey muses. “It should be closer to 50m. A lot of used cars are passed down by private individuals to other members of their family and some are exported.” BRICS – good for business? Bailey believes Brazil represents a major opportunity – 9.4m used cars are sold there annually and the market looks set to grow by 4% per annum over the next five years – and Cox has made a small acquisition in what is the world’s fifth largest country. “The interesting thing about it is that it already has a physical auction infra‐ structure,” he says. “Brazil has 96 auction centres and one‐third of them are in Sao Paulo.” Bailey contends that setting up shop in a small country takes up as much time as establishing a bridgehead in a big one. So why not move into a big country like Brazil rather than say, Hungary, given the huge potential the former offers? In that case, what about India? “So far as India is concerned we’re look‐ ing at a technology company and we may get involved with a physical auction centre but things are at an early stage,” he says. In India 4.5m new cars are sold every year along with 3m used. One large country Cox has no inten‐ tion of entering any time soon however, is Russia. “Although I’m convinced Russia will eventually clean up its act – China is of course doing so – we remain concerned about the ethical standards that prevail there,” Bailey observes. All markets are different, and one way in which they differ is the speed with which they embrace new technology.
“Within three months of our launching Simulcast in Turkey around one‐third of the vehicles we were selling were being sold online,” he says. “In Thailand however the uptake of Simulcast has been slower than we expected and we don’t understand why.” Simulcast is the simultaneous Internet broadcasting of a physical auction, which allows people online to bid against each other in real time as well as against buyers who are actually in the auction hall, and buy vehicles. Another way in which markets differ is in the willingness of auction centres to allow private individuals to bid. “In the USA they don’t, in the UK about 10% of bidders are consumers while in Australia it’s 50%,” he says. “In fact we retail cars in Australia and that includes arranging finance and taking in part‐exchanges.” Bigger and better? Then there is the size of the auction centres to consider. Though viewed as substantial in their own domestic markets, the four‐lane Manheim sites in operation in Istanbul, Turkey and Colch‐ ester, UK (a seven‐lane site was opened in Bangkok, Thailand, last November) would be considered tiny in the USA. “In the US you’re typically talking about 10, 12, or 14 lanes but our site in Manheim, Pennsylvania, which is where our Manheim auction activities started, has 32 lanes and sells 7,000 to 8,000 cars a day,” says Bailey. “It’s run like a military operation with hundreds of staff.” Local heroes Co‐operating with a local partner in the way Cox does in Turkey for example can often make sound sense when entering new markets Bailey believes; and some countries of course insist that overseas
investors must partner with indigenous businesses. “Local partners understand the culture and can open doors for you,” he says. Ignoring local sensibilities is always unwise. “To walk into some‐ body’s country as an outsider with a bag of goods saying ‘this is how we do it’ is not a good idea,” he remarks. Cox works closely with vehicle manu‐ facturers. “Last year we signed a deal with Volvo which has resulted in the first truly global remarketing platform,” says Bailey. “What we’ve done is put our RMS wholesale stock management system together with software from Modix, a German digital marketing company, that allows consumers to access vehicles at dealers and at the OEM. “We’re in the process of rolling it out across 27 countries and in 14 languages and nine currencies. A lot of the emerg‐ ing markets are well‐developed so far as e‐commerce is concerned.” Bailey believes that physical auctions will be around for some time to come despite the arrival of online sales; just as well for Cox perhaps given that it has 121 auction locations worldwide. “Dealers like to go to auction centres because it gives them a feel for what’s happening in the market,” he observes. There is no substitute for shaking hands and chatting with like‐minded traders; no matter which country you happen to be in.
“Our Manheim site in Pennsylvania has 32 lanes and sells 7,000-8,000 cars a day .”
internationalfleetworld.com / 31
Faster, safer, more features…
TECHNOLOGY Mobile Comms
Smartphone integration, more apps for drivers and augmented vision are among the developments in the fast growing mobile communications sector, as Steve Banner reports.
G
M’s announcement at the Geneva Motor Show earlier this year via its Opel subsidiary that it is to start rolling out its OnStar communications package in 14 European countries from August onwards ‐ with more to follow ‐ serves to underline an inescapable truth. We are all connected one with another and we want to remain connected wher‐ ever we are 24 hours a day. That includes when we are in our vehi‐ cles; just so long as all this connectivity does not distract us from driving.
Wi-Fi hotspot Already in use with over 7m customers in the USA, Canada, Mexico and China, OnStar features a built‐in 4G LTE Wi‐Fi hotspot connection integrated with the vehicle’s electrical system and with an external antenna. It means that passen‐ gers will be able to stay in touch with family and friends via social media, play games, stream movies or watch TV via their favourite app thanks to the ability to connect up to seven devices. It also means that they will be able to work while away from the office. So will the driver when the vehicle is stationary and it is worth noting that 4G LTE offers mobile data speeds up to 10 times faster than 3G technologies, says GM. What is more, it can support simultane‐ ous voice and data connections. If the driver is in a collision serious enough to trigger an airbag then a GM OnStar adviser will immediately make contact to see if help is required. More details are given in our Risk Management feature on page 26. OnStar will be able to interface with a smart phone app no matter where you are, from Berlin to Amsterdam. It will permit drivers to do everything from lock or unlock their vehicle remotely to down‐ load destinations to the onboard satellite navigation system.
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“Only 22% off Americans still use printed maps to find their way to places, with the vast majority relying on technology instead.”
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TECHNOLOGY Mobile Comms
Faster, safer, more features... assistance... → Roadside The OnStar package will include roadside assistance in the event of a breakdown. If a vehicle is stolen then OnStar will help the police track it down while at the same time sending a signal that immobilises the ignition system so that the engine cannot be re‐started. OnStar is continuing to expand in the USA, with the all‐new ATS Coupe becom‐ ing one of the first Cadillacs to be equipped with OnStar 4G LTE. ATS comes with a free On‐Star basic plan, which includes services such as remote vehicle diagnostics and runs for five years.
App interface
The new, faster, network can also be used to power CUE Collection, a new in‐car app marketplace coming to Cadillacs this year. Accessible via an icon on the eight‐inch LCD touch screen, it will allow users to download apps directly to the CUE system and organise, update or delete them throughout the life of the vehicle. The initial list of apps includes the Weather Channel, Cityseeker and Eventseeker. CUE also includes a new text‐to‐voice feature for smart phone users with Blue‐ tooth, which reads incoming texts through the car’s speakers. Other GM models marketed in the USA with OnStar 4G LTE include the 2015 Buick LaCrosse. Given the growth in mobile connectiv‐ ity perhaps it is not surprising that only 22% of Americans still use printed maps to find their way to places with the vast majority relying on technology instead, according to a 2014 Expedia.com report. The only surprise is that the 22% figure isn’t a lot lower. In the USA OnStar’s RemoteLink smartphone app now has over 1m users. Around two‐thirds of them employ it on iOS devices although it can
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be used on all four major smartphone platforms, including Android, Black‐ berry and Windows. Remote start is the app’s most popu‐ lar feature with 38% of requests and is closely followed by the Get Vehicle Info diagnostic app, at 35%. The latest update to the RemoteLink app is Vehicle Locate, which shows drivers whereabouts on a map their car is; handy if you cannot remember where you parked it.
Smartphone connectivity The role of the smartphone in the connectivity mix is becoming increas‐ ingly important, a fact not lost on Alpha‐ bet International. It has developed AlphaGuide, a smart phone app that helps drivers locate serv‐ ice and repair workshops and refuelling and (likely to become increasingly important) recharging points. Included is an accident and breakdown reporting interface and a 24/7 driver helpdesk. Not to be outdone, Ford launched the latest version of SYNC – SYNC 3 – in the USA last December. Although it is optimised for hands‐ free use, the improved communications and entertainment system comes with a touch‐screen that has been configured in a way similar to that of a smart phone or tablet. It also features voice‐recogni‐ tion technology that responds to conversational phraseology.
In-cab connectivity
Infotainment touchscreen units are now mainstream technology.
Voice commands Both developments should make it easier for drivers to make greater use of AppLink. It allows customers to connect their smartphone to their vehicle and control their compatible apps using voice commands or touch‐ screen buttons. Smart phone apps that are automati‐ cally discovered include Spotify, Pandora and Stitcher. SYNC 3 helps ensure aid is summoned if there is a crash and its soft‐ ware can be updated via a home Wi‐Fi network while the vehicle is parked on the customer’s drive. SYNC 3 shows greater appreciation of how people refer to locations in everyday speech, says Ford. It doesn’t require them to use the precise name; they can search for ‘Detroit Airport’ for instance rather than ‘Detroit Metro‐ politan Airport’, which is the correct designation. When connected to an iPhone SYNC 3 enables drivers to seek help from the Siri personal assistant service by hold‐ ing down SYNC’s Push to Talk steering wheel button. Such an approach mimics the way they would hold down the button on an iPhone to initiate a Siri session and is yet another way in which in‐car connectivity design is being heavily influenced – indeed increasingly dominated by – smart‐ phone design.
Design influenced by smartphone Renault openly admits that this is the case, referring to R‐Link as ‘our in‐car, connected multimedia tablet’; one that since last year has featured a free R‐Link for Facebook app. All Facebook’s features can be accessed when the vehicle is station‐ ary. When it is in motion drivers can use the text‐to‐speech function to keep track of their wall activity and can send pre‐written messages. If a friend or a place recorded in Facebook is in the vicinity and the driver wants to visit them then all he or she needs to do is press the ‘Click to nav’ button and launch the navigation system, which will deliver the necessary directions. Another app that has been added is Supermemo (for which there is a charge), which helps the driver learn some of the basics of a foreign language while at the wheel by repeating pre‐recorded phrases.
Smart eyewear integration But why bother with a touch‐screen or smart phone? Why not rely on your eyewear instead? It is a proposition advanced by MINI in China at this year’s Auto Shanghai show. “MINI Augmented Vision gives an insight into how intelligent connectiv‐ ity between a MINI car and eyewear into which relevant content is projected might work in the future,” says Dr Jorg Preissinger, project manager, MINI Augmented Vision, at BMW Group research and technology. “Working with several Qualcomm companies, we have created an inter‐ linked system and augmented reality eyewear that revolutionise the experi‐
ence both in and outside the vehicle.” The prototype eyewear shows infor‐ mation in the driver’s direct field of vision but without obscuring the view of other road users, says MINI. Every‐ thing from a sat nav display to the vehi‐ cle’s speed can be displayed and a small icon appears when a text message is received. The message can then be read out by an in‐car system. Most intriguingly, a virtual view through parts of the vehicle such as the A‐pillars renders objects that would otherwise be concealed by the car’s structure visible, MINI states; that cyclist the driver might otherwise have hit for example.
Ford Telematics Like GM, Ford has been busy at the major European automotive exhibitions. The Big Blue Oval used last September’s IAA Commercial Vehicle Show held in Hanover, Germany, to launch Ford Telem‐ atics powered by Telogis to European operators. Cloud‐based, it is being made available to fleets as a dealer‐installed option in selected European markets. Likely to appeal to van operators in particular, it allows them to track the location of their vehicles, diagnose faults, and monitor driver and vehicle perform‐
ance. Succeeding Crew Chief, which was available in the USA and Canada, Ford Telematics is being marketed worldwide. In the USA – and again with light commercial fleets in mind – Telogis has launched Fleet 11. The latest major upgrade to its cloud‐ based software platform, it gives opera‐ tors the ability to collect and analyse data from vehicles out in the field and helps them manage a mobile workforce. Facili‐ ties include dynamic routing and satellite navigation designed with commercial vehicles in mind.
Telematics buying spree Communications and telematics companies are continuing to expand internationally both organically and through acquisition. February saw Fleetmatics add France’s Ornicar to its stable. Respon‐ sible for some 15,000 vehicles under subscription, the Grenoble‐based software‐as‐a‐service fleet manage‐ ment specialist is now providing support in France for Fleetmatics REVEAL, which delivers vehicle track‐ ing among a variety of other services. In the Netherlands TomTom has acquired fleet management service provider Fleetlogic thereby adding 27,000 subscriptions to the TomTom Telematics installed base. April saw it expand in Australia through the purchase of Location Navigation and its WhereIs map assets from Sensis. TomTom is continuing to work closely with vehicle manufacturers. The Uconnect infotainment system developed jointly by Fiat Chrysler Automobiles (FCA) and Accenture and installed in the new Fiat 500X now on sale in Europe includes TomTom’s connected navigation technology as part of the Uconnect LIVE services. As a consequence drivers will receive information on traffic congestion, the whereabouts of speed cameras and the weather they are going to encounter. “By adding our services and soft‐ ware Fiat is empowering drivers with more advanced knowledge of the road ahead to help make journeys faster,” says TomTom vice‐president, automotive, Jan‐Maarten de Vries. TomTom is forging links with Hyundai, Kia and SsangYong in Europe too, expanding in Latin Amer‐ ica with FCA and has launched its traffic service in even more countries worldwide, from Hungary to Malaysia. Like death and taxes, road congestion is an inescapable global phenomenon; and fleets need tech‐ nology to manage their way through it and maintain productivity.
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FLEET FOCUS Italy
Italian recovery Italy suffered more than many other European economies in the 2008 financial crisis. Rising vehicle sales suggest that recovery has arrived, as John Kendall reports
I
n the automotive sector, Italy is one of the ‘Big Five’ countries within the EU with the largest consumption of light vehicles, along with France, Germany, Spain and the UK. The country suffered badly during the European financial crisis, with high levels of national debt seriously affecting the economy. This started to ease in 2013 and the debt has begun to reduce slowly. It now looks as though the country will return to GDP growth by the end of this year or early 2016. In 2014, Italian car registrations reached 1,359,616, up from 1,304,648 in 2013, an increase of 4.2%, according to data from the European Automobile Manufacturer’s Association (ACEA). The increase has accelerated in 2015, with registrations up 13.5% in Q1 to 428,464, compared with 377,629 for Q1 2014. Alphabet Interna‐ tional expects growth to be around 5‐6% for 2015. Not surprisingly that growth is reflected in alternative fuel vehicle (AFV) registrations for Q1 2015. Italians buy the highest number of alternative fuel vehicles in the EU, with 60,952 registrations in Q1 2015, an increase of 18.1% on the 51,616 registrations in Q1 2014. Just 758 of these are electric vehicles, representing an increase of 172.7% over Q1 2014’s total of 278. The market for hybrid vehicles is far healthier with 6,587 registrations in Q1 2015, an increase of 27.8% over Q1 2014 when 5,156 hybrids were registered. It is gas‐powered vehicles, natural gas and liquefied petroleum gas that account for the bulk of AFV registrations though. In Q1 2015 these reached 53,607, a 16.1% increase over Q1 2014, when 46,182 registrations were recorded.
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Commercial vehicle registrations enjoyed greater growth than in the passenger car sector in Italy last year, growing by 13.9% during the year to 132,349 compared with 116,166 in 2013. Light CVs made up the bulk of these figures with 117,709 registrations during the year, up 16.4% on the 101,131 recorded in 2013. Growth has continued in Q1 this year with total CV registrations climbing 7.0% compared with Q1 2014 to 34,487. Light CV registrations accounted for 86.6% of the total with 29,850 registrations for light CVs in Q1, an increase of 6.1% compared with Q1 2014, showing a solid basis for continued growth. Business car registrations have shown more positive growth than in the sector as a whole. According to Alphabet International, business car sales reached 250,915 in Italy in 2014 – representing growth of 18.4% over 2013. Dataforce predicts that this figure will remain approximately the same in 2015 at around 250,017 registrations. Alphabet notes that the business car sector in Italy has shown a much higher increase than overall car registrations at around 8.4%, roughly double the market growth in total. The company puts this down to a need to replace cars that are ageing and suggests that rental has also benefitted from this need. Alphabet has noted other developments too: “The concept of ‘mobility’, both private and business, has begun to change in Italy too, paving the way for alternative options (car sharing, car pooling, etc…) that have a weaker link with the traditional ownership of the car, especially in the bigger cities. These trends have been strongly helped by a huge diffusion of smartphones and tablets.”
LeasePlan estimates that overall there are 5.5m busi‐ ness cars on Italian roads. The company’s estimate of the size of the business car market is smaller than Alphabet’s at around 11.9% of the total new car market, represent‐ ing around 162,000 in 2014, but this will depend on how the two companies have measured the size of the sector. Alphabet is more specific about the size of the Opera‐ tional Lease running fleet. This is given as 546,047 in 2014, an increase of 3.1% on 2014. The company reck‐ ons that this represents 1.23% of the total running fleet in Italy. Overall, Alphabet estimates that the turnover for the Operational Leasing market in Italy is €5.45m, made up of 73.6% rental contracts, 0.7% in pre‐leasing activi‐ ties and 25.7% in used car re‐marketing. Altogether Alphabet reckons that total business car registrations in Italy represent a smaller proportion of the total new car market than in any of the other Big five EU countries. In Italy, this represents 36.2% of the total market compared with 62.1% in Germany, 43.6% in Spain, 44.5% in France and 52.5% in the UK. Since Italy is home to a number of car brands, mostly in the Fiat Chrysler Automobiles (FCA) group, it is hardly surprising that Fiat tends to dominate the car market. Alphabet ranks the manufacturers as indicated in the table below. LeasePlan also includes the same four manu‐ facturers in the top four companies. Adding the share of FCA companies in the table together gives the company a total market share of 40.3%. ITALY’S BEST SELLING BRANDS
Brand Fiat
% 35.3%
Volkswagen
8.5%
Audi
7.5%
Ford
6.4%
Renault
5.4%
BMW
5.3%
Opel
5.2%
Peugeot
4.2%
Citroen
3.1%
Mercedes
3.0%
Alfa Romeo
2.7%
Lancia
2.3%
Skoda
1.3%
Volvo
1.3%
Other
8.5%
Total
100.0%
Among the top choices for business car users in Italy, LeasePlan lists the Audi A3, A4 and A6 as well as the BMW 3 Series, VW Passat and Golf, Ford C‐MAX and Lancia Delta. Alphabet provides a breakdown of business vehicle types in the operational leasing sector as indicated in the table: Cars
423,422
77.5%
LCV
120,899
22.1%
1,726
0.3%
Other Total running fleet
546,047
Source: Alphabet International
Italy may be best known for producing small cars, but the country’s profile of business cars is fairly similar to the other ‘Big Five’ EU markets, according to data from Alphabet, which breaks the number of business cars down into sectors. A (city car)
56,383
13.3%
B (small car)
76,742
18.1%
C (medium sized car)
149,064
35.2%
D (medium superior)
118,803
28.1%
19,360
4.6%
3,071
0.7%
E (superior) F (upper price class) Total
546,047
Source: Alphabet International
Italy is also home to commercial vehicle manufacturers, mainly in the FCA Group. This includes Fiat’s light CV range sold under the Fiat Professional brand and the company’s truck division Iveco, which is now part of the FCA Group’s agriculture and machinery division Case New Holland (CNH). Alphabet provides data for the LCV operational leasing sector, which suggests that of the total of 120,899 LCVs shown above, the total is made up of 73,060 vans, 46,946 LCVs less than 3.5 tonnes and 893 LCVs more than 3.5 tonnes. Italy is home to CV manufacturer Fiat Professional and their truck division Iveco.
Source: Alphabet International
internationalfleetworld.com / 37
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FLEET FOCUS Italy
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This suggests that small vans make up a large part of the operational leasing van market, whereas in some other European markets, it is the larger vans that are acquired under operational leases. Many Italian cities have narrow streets and the popularity of small vans in the operating lease sector may be reflected in demand for smaller vehicles. Rental, operational leasing and fleet management companies are represented in Italy by ANIASA. Alphabet notes that the tax system in Italy seems to be a strong barrier to the development of the business car sector. The company quotes ANIASA’s view of the tax system as: “An incredibly hindering tax system compared to other Euro‐ pean countries, which has become more and more unfair since 2013”. Alphabet explains, “In Italy, deductibility has been reduced from 40% to 20% in 2013, unlike some coun‐ tries where it is 100%. Deductibility caps for companies and professionals have not changed since 1997. More‐ over, VAT is deductible only by 40%, compared to 100% in all main European countries, a limit that has been postponed until the end of 2016.” The long period of recession in Italy and high national debt may explain the tax position, but must also serve as a deterrent for companies conducting leasing business in Italy. Alphabet provides a table comparing the tax posi‐ tion across the ‘Big Five’ European markets. LeasePlan also notes that the rate at which VAT can be recovered is lower than the EU average. The company also says that from the customer’s perspective the income tax allowance on company cars depends on the use of the vehicle and the connection with the business. LeasePlan suggests that in terms of business vehicle financing, operational leasing is not the preferred method in Italy, accounting for around 10% of vehicle financing, which is well below the EU average. The
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company says that the method of financing tends to depend on the segment the business operates in, with a bigger percentage of outright purchase among small businesses, while larger companies and corporate busi‐ ness use a higher proportion of operational leasing. Banking and finance are the main sources of funding, reckons LeasePlan. Looking ahead, both Alphabet and LeasePlan expect growth and change in the Italian business vehicle sector. Alphabet points to some expected trends from ANIASA: • Fleet administration companies have strengthened their role as the primary interface between companies and operational leasing, thanks to a growing knowledge of the market. • Operational fleet management (‘Full service’: mainte‐ nance and repair, roadside assistance, courtesy cars) is still the core business, but ‘360°’ services leading to better performance in terms of efficiency, innovation and flexibility are more and more relevant. Technology (such as online and mobile services), consultancy, smarter procurement processes and CO2 emissions reduction are all keywords to succeed in this market. • An international dimension along with a stronger consulting approach and high‐quality standards for ‘tradi‐ tional’ operational and administrative management will be key factors for the future business, to meet an increas‐ ingly demanding audience, both clients and prospects. LeasePlan expects to see annual car registrations reach the 1.5m threshold in the next five years. In the immedi‐ ate short term, operational leasing registrations and the market are still growing and as a result the company says that all the main competitors have confirmed their inten‐ tion to adopt a growth‐focussed strategy. The company also expects to see a different approach that is more focussed on whole mobility services and also to see new players, such as Google approaching the market.
REMARKETING Italy
Italy on the up The Italian new and used car markets are slowly coming out of recession, according to Autorola Italy’s country manager Thomas Andresen.
T
he Italian economy was one of the hardest hit by the European economic crisis and it is one of the coun‐ tries that have recovered the slowest. The Bank of Italy has predicted that the economy will grow by just 0.5% in 2015, but currently the motor industry is bucking this trend with the minister of transport announcing new car sales had grown by 13.5% in quarter one compared with the same period in 2014. However, the Italian market is still in the doldrums with 2015’s full year forecast at around 1.5 million units, which is still 1.25m short of its 2007 market high of 2.75m new cars. One of the biggest sectors for new car growth is the car rental industry which is being fuelled by high profile events such as the Milan Expo which runs for the next six months and which is destined to attract millions of visitors, and exhibitors from nearly 150 countries. Hire fleets are being bolstered to satisfy this additional demand and to meet the country’s annual seasonal tourism requirements. The private new car market is also starting to grow. In Q1 sales grew by between 7‐8%, which is a positive sign, espe‐ cially as very few people outside Italy fully appreciated how hard the average motorist was hit by the country’s recession. In many cases it wasn’t just about a driver putting off the purchase of a new or used car. For many it was about selling their car and not replacing it, instead looking for other forms of transport until such time as they could afford to buy and run a replacement. This Q1 glimmer of hope shows private buyers are coming
back into the used market as 4.0m used cars are forecast to change ownership this year alone. Generally used cars are getting older with many corporates extending their company car replacement cycles to four years, while rental companies are typically extending the life of their cars from two to three years. Italian cars are generally very well equipped and good value when compared with other European countries so used demand is high. Generally Italian drivers prefer German cars whenever possible such as the Audi A3 and BMW 1 Series, while the Far Eastern brands are also increasing their market share to compete with home brands such as Fiat. This level of desirability has led to more Italian cars being exported as cross‐border used sales activity helps to balance the demand and supply within Europe. Currently 60‐65% of used cars being exported through the Autorola online portal are being purchased by German buyers, where generally cars are quite basic but expensive. Austrian dealers are also buying used cars, not just for selling into the home market but also for export to the Czech Republic, Slovakia and Slovenia. Demand from both Spain and France is also growing as both markets look to import used cars to satisfy the demand for used cars as both countries continue to shake off the effects of the most recent recession. Cautious optimism is how the Italian market can be best described, with used cars leading the automotive recovery as motorists start to get back on their financial feet.
internationalfleetworld.com / 39
NAFA International Fleet Academy
Risk profiling CHAPTER 13
Incentivising drivers This chapter explains how to measure a driver’s true road risk and incentivise employees to drive safely and efficiently.
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Reproduced with the kind permission of NAFA Fleet Management Association, this is the latest in a series of extracts from the International Fleet Academy Global Fleet Guide.
Hiring policy The hiring and screening practices you put in place will largely determine whether your organisation will have good or bad drivers and, consequently, whether it will experience a favourable loss history or be involved in serious vehicle crashes. You must have policies and procedures to screen out drivers in the hiring process who are most likely to cause problems in the future. Employees with poor driving records expose the company to potentially significant liability. To determine a driver’s true risk profile to the company you will need to consider their crash/incident data and driv‐ ing training history.
Indicators of high risk In some European countries, it is illegal to obtain a driving record as this violates an employee’s right to privacy. In many Latin American or Asian countries, there is no govern‐ ment system for tracking and reporting driving violations, but it may be possible to ask employees to voluntarily report driving fines and crashes. You will need to work with a legal expert in each country to determine what you can ask an employee to report and how that information can be stored or used. It is essential to uphold policies by working with HR and management, especially when a driver has a track record of poor driving behaviour. Driving issues you must be prepared to address include driving while intoxicated or impaired (DWI, DUI), excessive speeding tickets, multiple crashes in a short period of time (six months, one year, three years) and distracted driving. Developing a comprehensive fleet safety policy that addresses these issues and internal systems that can admin‐ ister both the letter and spirit of your policy is essential to reduce your risk.
Crash reporting and investigation Traffic crashes can be confusing and stressful for everyone involved. Accurate reporting is essential in order to limit your company’s liability and ensure maximum claim recovery. All crashes, regardless of the severity, should be reported to the employee’s supervisor and your crash management/insur‐ ance supplier as soon as possible after the incident. Providing paper or electronic forms to drivers makes reporting easier at the accident scene. Leasing and accident
Readers can review the full article – and much more – by purchasing the Global Guide through the NAFA website: www.nafa.org/
management companies commonly provide a paper document to be kept in the glove box. It is a best practice that all crashes be reviewed to determine their cause and whether or not the incidents were preventable. Under‐ standing the root causes of crashes, why they are happening, regard‐ less of fault, forms the basis for eliminating them in the future. Root cause analysis also contributes to identifying any weaknesses in your traffic safety legislation that may require strengthening.
Reward programmes The purpose of a reward programme is to recognise good driv‐ ers. It provides a means by which you can focus on the drivers who directly contribute to improving your safety record by driv‐ ing defensively. The most positive results are realised when driving perform‐ ance is incorporated into the overall evaluation of job perform‐ ance. When drivers understand why the traffic safety programme exists and what it is designed to accomplish, they are much more likely to be internally motivated to drive safely. Regardless of the form it takes, an incentive programme will reinforce the importance of traffic safety to your organisation. The most important characteristics of a reward or incentive programme are consistency, integration into a positive safety climate, openness to all eligible employees, and a frequent cycling of reward periods.
Conclusion Risk management is a continuous process that evolves over time. The past few articles have discussed ways to under‐ stand fleet risks, provided awareness of global differences and advised on best practices to manage or reduce risk. Although risk management may be more difficult for global fleets because of the number of variables to consider, it is important to organisations, employees and communities to make every effort to develop and maintain a robust fleet risk management programme. Once a company driver safety programme is in place, it should be extended to members of the community. Safety programmes can influence employees’ driving behaviour, assist them to avoid traffic hazards, help educate them about responsible driving practices, and create a safer roadway environment for the entire community.
Next month... We look at ways to measure fuel costs for a global fleet operation.
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PROFILE BMW
Numbers game BMW’s alternative drivetrains and EfficientDynamics technology will be integral to the brand’s goal to bring average CO2 emissions within European targets of 95g/km by 2020. As demand for premium models continues to grow, BMW is determined to maintain its leading share of the luxury market with an ever-more efficient range of vehicles…
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Manufacturer BMW Total sales 2014 1,811,719 Headquarters Munich, Germany Global market share 2.5% No. of models 20
view
from the top
Best-selling luxury car brand
B
MW retained its position as the world’s best‐selling luxury car brand in 2014, recording 1,811,719 total unit sales, ahead of Audi’s 1,741,100 units and Mercedes Benz’s 1,650,010. In its first full year on the market, the BMW 2 Series Coupe was delivered to a total of 27,933 customers, while 13,091 2 Series Active Tour‐ ers found homes during its first three months on sale in Q4. The mid‐range 3 Series sedan remained the brand’s best‐selling vehicle globally, with sales up +2% year‐on‐ year to 476,792 units worldwide. The 5 Series luxury sedan also saw a sales increase to 373,053 units worldwide in 2014, while the BMW X5 midsize SUV achieved a + 37% sales uplift following the launch of the third‐generation model in late 2013. BMW i, its electric vehicle sub‐brand, sold 17,800 vehicles were sold in 2014, thanks largely to the success of the i3, which saw nearly three‐quarters of its sales in the second half of the year following the vehicle’s late spring market launch in several markets, including the US. 1,741 BMW i8s have been sold since the plug‐in hybrid supercar went on sale in the summer of 2014, and flexible production lines at the Leipzig plant have been switched to manufacture more i8s in an attempt to reduce the lead time for the model. More than 100 i3s currently leave the Leipzig plant every day, and plug‐in hybrid technology remains a major R&D focus for the brand. BMW recorded growth in all its major European markets last year, with sales increasing +2% in the home market of Germany to 273,433 vehicles, and sales in the second biggest market of the UK, experiencing an +8% uplift to 204,749 units. The 3 Series was BMW’s most successful model in the region for both new and used cars and the EfficientDynamics engine range and plug‐in hybrid technology helped the brand remain competitive in emissions focused Europe. Mainland China remained BMW’s most important global territory in terms of sales, representing 22% of the brand’s total sales volume in 2014. BMW manufactures long‐ wheelbase versions of the 3 Series and 5 Series in partnership with Brilliance Auto for the corporate chauffer market, as well as an all‐electric crossover based on the X1 crossover called the Zinoro 1E. Since early 2014 the Zinoro 1E has been available for leasing only in Beijing or Shanghai, with daily rates starting from just ¥400 renminbi (€57) to encourage take‐up of EVs. BMW announced an investment of $2.2bn (€1.9bn) to develop its presence in the NAFTA region in July 2014, spearheaded by the construction of new production facil‐ ities in San Luis Potosi, Mexico, and Santa Catarina, Brazil. Construction will begin on the Brazilian plant later this year and the Mexican plant in 2019, and BMW will use the new facilities to support the plant already positioned in the USA to grow the brand’s position in the Americas. The USA was the region’s main growth driver in 2014, record‐ ing 395,850 sales, of which the locally‐produced crossover models and the ubiquitous 3 Series were strongly represented.
BMW Global sales, by territory* Territory Europe Of which Germany China USA Middle East Total *Combined BMW & MINI sales
2013 858,990 268,838 390,713 375,782 24,596 2,081,402
2014 913,803 273,433 455,979 395,850 30,148 1,923,093
% change +6% +2% +17% +5% +23% +8%
Matt Bristow, corporate sales general manager at BMW Group UK, on the brand’s connected car solutions and plug-in hybrid range. Has there been strong demand for ConnectedDrive technology from business users? You only have to see just how well received the news was of BMW fitting navigation as standard across the entire range and the RV uplift and lower leasing rates as an indica‐ tor of this. We are also taking steps to ensure that leasing companies can benefit directly from the diagnostic information that the technology can deliver, which will assist with sched‐ uling maintenance and servicing. How has the i range performed in fleet, and are businesses more open to switching the EVs? For those drivers undertaking thou‐ sands of miles of motorway travel, their needs will only realistically be met by an efficient combustion engine. With the Range Extender, however, BMW i provides a genuine alternative for the more ‘normal’ mileage user. BMW i is performing very well and in line with our planning for the sector. As the debate regarding air quality continues, we see an increasing role for ULEVs in the fleet sector. For certain, the flexibility offered by mobil‐ ity solution packages assists in remov‐ ing any perceived barriers to adopting electric vehicles onto fleets. How important is plug-in hybrid technology to BMW? Current taxation means that PHEVs are an ideal proposition to the company car driver in Europe, given their low CO2 values within the current testing environment. BMW have a number of models coming to market using such technology, with a signifi‐ cant proportion intended for the fleet market. However, we continue to develop efficient ‘traditional’ petrol and diesel models to ensure that BMW Group provides a full spectrum of vehicle solutions for all users within the fleet and business market.
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PROFILE BMW BMW fleet model range
→
Where are they made?
6 7 Manufacturing plant locations
1 Series Variants: 3/5dr hatchback Markets: Global Fuel: 3.4-8.0l/100km CO2: 89-188g/km
1 Dingolfing plant, Bavaria, Germany
– 3, 4, 5, 6 & 7 Series, M5,M6 2 Leipzig plant, Saxony, Germany
– 1 & 2 Series, i3, i8, X1 3 Munich plant, Bavaria, Germany
3 2 4 1
5
– 3 Series, 4 Series Coupe 4 Regensburg plant, Bavaria, Germany
– 1 & 2 Series, 4 Series Convertible, M3, Z4 5 Rosslyn plant, Pretoria, South Africa
– 3 Series Sedan 6 Brilliance China Automotive Holdings
7
Ltd., Shenyang, China – 5 Series long-wheelbase, 3 Series Sedan, 3 Series long-wheelbase, X1 Spartanburg plant, South Carolina, USA – X3, X5, X4, X6
3 Series Gran Turismo Variants: 5dr hatchback Markets: Global Fuel: 4.5-8.2l/100km CO2: 119-191g/km
Focus on plug-in hybrid technology...
B
MW will refresh its biggest‐selling model, the 3 Series, in July, adding the broadest‐ever choice of drivetrains to a car which accounts for a quarter of its global sales. The engine range comprises four petrol engines and seven diesels, with the new 3‐cylinder 318i as the entry‐point. The 163PS 320d EfficientDynamics is the econ‐ omy leader – this can now rival the Jaguar XE with CO2 emissions of 99g/km and 3.8l/100km. The first ever plug‐in hybrid 3 Series will follow in 2016, badged 330e. This will feature a petrol‐electric drivetrain, returning 2.1l/100km and emitting 49g/km, and offers a range of 35km – matching the equivalent C‐Class. Expect pricing to be similar to its closest rival.. BMW will also launch a plug‐in hybrid X5 in Europe this autumn, featuring a high performance drive‐ train with CO2 emissions of 77g/km. Capable of reaching 100kph in 6.8 seconds from rest, the plug‐in hybrid X5 offers a range of 31km to a full charge. This takes just under four hours from a domestic socket, or two hours and 45 minutes from a 3.5kW wallbox. Due in September of this year, 2 Series Gran Tourer is BMW’s first seven‐seat MPV. The sister model to the 2 Series Active Tourer, the new model is 214mm longer and 53mm higher with a longer wheelbase of 2,780mm to provide more interior space. Engine range comprises five turbocharged petrol and diesel engines, with either three or four‐cylinders. Combined fuel consumption ranges from 6.4 to 3.9l/100km with CO2 emissions from 104 to 149g/km, with the engine line‐up also offering the BMW EfficientDynamics package. BMW ConnectedDrive assis‐ tance systems and information and entertainment options will be available, with options including Head‐Up Display. To support take‐up of its plug‐in models, BMW has partnered with Volkswagen to develop a network of fast chargers that will span the east and west coasts of the USA. The stations will be built and operated by ChargePoint, which already has about 20,000 stations in place, and will be open to any electric vehicle that uses the standard SAE J1772 or CHAdeMO plug. The first station has already been installed in San Diego, and the goal is to have nearly 100 more in place by the end of 2015. BMW and VW aim to rival Tesla’s well developed Supercharger network with the new charging infrastructure.
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5 Series Gran Turismo Variants: 5dr hatchback Markets: Global Fuel: 5.5-9.9l/100km CO2: 144-224g/km
X1 Variants: Crossover Markets: Global Fuel: 4.9-7.3l/100km CO2: 119-189g/km
X6 Variants: SUV Markets: Global Fuel: 6.0-11.1l/100km CO2: 157-258g/km
2 Series
2 Series Active Tourer / Gran Tourer
3 Series
4 Series
4 Series GranCoupe
5 Series
6 Series
6 Series GranCoupe
7 Series
X3
X4
X5
Z4
i3
i8
Variants: Coupe, Cabriolet Markets: Global Fuel: 3.8-8.5l/100km CO2: 99-199g/km
Variants: Coupe, Cabriolet Markets: Global Fuel: 4.0-9.1l/100km CO2: 106-213g/km
Variants: Coupe, Convertible Markets: Global Fuel: 5.2-10.3l/100km CO2: 139-239g/km
Variants: Crossover Markets: Global Fuel: 4.9-7.3l/100km CO2: 128-171g/km
Variants: Roadster Markets: Global Fuel: 6.8-9.4l/100km CO2: 159-219g/km
Variants: 5/7 seat MPV Markets: Europe, Asia, Africa, South America, Oceania Fuel: 3.8-6.4l/100km CO2: 99-144g/km
Variants: : 5dr hatchback Markets: Global Fuel: 4.0-8.5l/100km CO2: 106-194g/km
Variants: 4dr Sedan Markets: Global Fuel: 5.4-9.9l/100km CO2: 139-239g/km
Variants: Crossover Markets: Global Fuel: 5.4-8.3/100km CO2: 142-193g/km
Variants: 5dr hatchback Markets: Global Fuel: 0.0-0.6l/100km CO2: 0-13g/km
Variants: 4dr Sedan, Wagon Markets: Global Fuel: 3.9-8.8l/100km CO2: 102-204g/km
Variants: 4dr Sedan, Wagon Markets: Global Fuel: 4.1-9.9l/100km CO2: 109-231g/km
Variants: 4dr Sedan Markets: Global Fuel: 5.6-12.9l/100km CO2: 148-303g/km
Variants: SUV Markets: Global Fuel: 5.6-11.1l/100km CO2: 149-258g/km
Variants: Supercar Markets: Global Fuel: 2.1l/100km CO2: 49g/km
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Ford S-MAX Economy and technology upgrades bring Ford’s stylish sports MPV up to date, says Alex Grant. SECTOR Large MPV PRICE €30,150–€40,750 FUEL 5.0–8.9l/100km CO2 129–204g/km
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car lives on successfully here. The torque of the diesel he outgoing Ford S-MAX was one of those segment‐ engines suits it best, even compared to the most powerful busting vehicles which could so easily have not petrol options, and this offers an impressive combination worked. Emerging from its MPV joint venture with of excellent long‐distance comfort and surprising agility the Volkswagen Group, it gave Ford an opportunity to and confidence depending on the road ahead. widen its MPV family to include a sportier sibling for the The trade‐off is the S-MAX doesn’t feel as focused on Galaxy. There was nothing like it on the market and, cabin space as some large MPVs. Its third row isn’t much perhaps aside from the new Renault Espace, there still isn’t. more spacious than the Grand C-MAX, and the second row But it outstripped expectations. The S-MAX struck a seating doesn’t have the sideways sliding function of the chord almost instantly, accounting for two thirds of Ford’s five‐seat C-MAX. sales in this sector. With a high share of conquests from However, it’s got plenty of space for people and cargo. other buyers, sales weighted towards top trim levels and There’s a bank of switches inside the plenty of return buyers, it’s been a tailgate to effortlessly flatten the rear game‐changer for the brand. seats, and three ISOFIX points on the So the new car is starting as a familiar middle row mean it’s got the hardware product. As before, the platform is young families need in a car this size. shared with the new Mondeo and It also gets Ford’s latest high‐end tech‐ Galaxy, but also with the forthcoming nology, including glare‐free high‐beam Edge SUV arriving later this year. This headlights, the ability to automatically will also be one of the first cars to get the adjust its speed limiter based on road luxurious Vignale trim, targeting a signs and a new variable power steering premium brand ownership experience system which reduces the effort needed for customers who want it. for low‐speed manoeuvres then dulls Most engine options are also shared itself while cruising. The latter is an with the Mondeo, but without the 1.5‐ acquired taste, as the S-MAX’s standard litre diesels. European buyers are steering setup is excellent, but it’s a expected to favour one of three 2.0‐litre The S-MAX makes great option for city‐based drivers. diesels, weighted towards the 150hp few compromises in But ultimately the new S-MAX is an and 190hp versions rather than the versatility for what it evolution of the old car’s appealing 120hp entry‐level model. A twin‐ ownership proposition rather than a turbocharged 210hp diesel and a selec‐ offers in style and radical new entry. That’s all it needs to tion of small‐selling EcoBoost petrols driver appeal over be, too. Ford tried, and succeeded, to will also be available. traditional MPV products catch lightning in a glass bottle with the Visually it’s perhaps not as daring like the Galaxy. old car. With the new one, it’s repeated as the original S-MAX was when it that seemingly impossible task. launched, but the spirit of the outgoing
what we think
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Golf GTE Impressive but fleet drivers will need to think carefully before choosing, reckons John Kendall. SECTOR Lower medium PRICE From €36,900 FUEL 1.5l/100km//11.4kW/100km CO2 39g/km
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olkswagen launched the Golf GTE earlier this year, Hold, Battery Charge and Hybrid Auto. These may be designed to join the GT range of Golfs alongside familiar from the Audi A3 e‐tron, but the Golf has an addi‐ the GTI and diesel powered GTD. The GTE brings tional function that the Audi does not have. If the driver together the familiar 150hp version of the Volkswagen pulls the gearshift back from ‘D’ to ‘B’, the amount of Group 1.4‐litre TSI turbocharged direct injection petrol regenerative braking can be adjusted. engine with 102hp (75kW) electric motor. Volkswagen E‐mode gives electric power only, the default setting has developed a version of the DSG six‐speed dual clutch when the car is switched on. Using Battery Hold mode, the transmission for hybrid powertrains and that transmits electric range can be saved for city driving, leaving the car power to the front wheels. operating only on petrol. GTE mode is a sport mode, engag‐ Using the NEDC EU driving cycle figures for hybrids, ing both motor and engine for maximum performance, this gives misleading fuel consumption of 1.5l/100km while accelerator pedal, gearbox and steering are also and CO 2 emissions of 39g/km. That switched into a sportier mode. Hybrid would be good for CO2 related BiK tax Auto helps to minimise fuel consump‐ regimes and low emissions zone tion from the petrol engine and battery charges and may well spark interest charge uses power from the engine to from some company car drivers on that recharge the lithium ion battery. basis alone. Use the combined power of The Golf GTE is well equipped with the two motors and performance is features including LED headlights with brisk, with the car reaching 100km/h dark red LED lights at the rear, 16‐inch from rest in 7.6 sec. Under electric alloy wheels, “GT” trim and the power alone, Volkswagen claims a “Composition Media” radio system range of 50km. with a 6.5‐inch display. The battery can be charged from a As you might expect, it is a very well domestic power point taking 3 hours thought out package that feels in many 45 minutes if the battery is completely respects like the Golf GTI or GTD. The discharged. Using a wall box or public mode selector is simple to understand The Golf GTE is a charging station, the time is reduced to and use and with careful driving, will feast for the tech savvy 2 hours 15 minutes. However, there is deliver good fuel consumption. For and a very good car no rapid charging facility for the Golf drivers who commute over short GTE, which makes it less attractive as distances, it should be possible to cover to drive too. How well an alternative to a diesel powered vehi‐ most driving under electric power it will be received by cle for long distance use. alone. It is arguably the most sophisti‐ fleet users remains To exploit the possibilities for the car, cated Golf available and is a pleasure to to be seen. it is equipped with five operating drive. I can’t help feeling that the lack modes: E‐mode, GTE mode, Battery of a rapid charge facility is unfortunate.
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MG6 MG has revised the MG6 to reduce weight and lower emissions. John Kendall tries it out. SECTOR Lower medium PRICE From €14,560 FUEL 4.6l/100km CO2 119g/km
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t may only be available in the UK at present, but MG is tion from 129g/km for earlier models. A six‐speed manual planning to launch into the compact SUV sector in the transmission is the only option. next year and MG must have wider markets across The revised MG6 is available in three trim options, S, TS Europe in its sights. and TL. MG says the car is on average 75kg lighter and It’s 10 years since the original British MG, along with the performance is slightly brisker than before. Exterior differ‐ rest of the Rover Group, collapsed. We won’t go into the ences include a revised front and rear profile, with LED details of the Chinese acquisition that followed, but the daytime running lights as standard, as well as updates to the company, now owned by SAIC of China, perhaps not surpris‐ dashboard and instruments. An electrically activated hand‐ ingly targeted the UK market first. Production is based in the brake is now also standard equipment, as are heated front former MG plant in the UK from kits imported from China, seats, alloy wheels and an electronic differential to enhance but the cars are designed and engineered in the UK. Only two traction. Equipment levels are generous, given the pricing models are currently on sale, the B‐ and that continues with the more expen‐ segment MG3 and the C‐segment MG6, sive TL and TS models. which originally went on sale four years MG is targeting mainly retail customers, ago. The GS made its appearance at the but there is some fleet business particu‐ recent Shanghai Show and this compact larly for the mid‐spec TL models which SUV could spearhead a broader move into gain leather seats, rear parking sensors, Europe when it arrives. automatic headlamps and windscreen With Euro6 emissions looming, MG wipers, cruise control and automatically has revised the MG6 and carried out a dimming interior mirror. mild facelift. This has involved a The car feels well assembled and substantial range revision, resulting in a although interior materials don’t have starting price reduced by €3,500, giving the quality appearance of mainstream a new entry price for the S model of brands, they seemed to be robust and the around €14,560. That may be good design is pleasing. news for buyers of new models, but is The 1.9‐litre diesel engine does not yet We can’t see fleets formunlikely to be well received by owners of meet Euro6 emissions limits, like many ing a queue yet, but it earlier models and may not help resid‐ European rivals, but it is a refined unit presents a good value ual values either. and performance feels similar to other All models are powered by a four‐cylin‐ C‐segment models with 150hp. The six‐ for money proposition. der 1,849cc turbo‐diesel engine, which speed transmission is user‐friendly and European design and produces 150hp at 4,000rpm and 350Nm MG claims that the car is better to drive engineering is undoubtof torque at 1,800rpm. Combined EU fuel than before. Both ride and handling are edly a key asset. consumption is 4.1l/100km with carbon quite acceptable. The car certainly offers dioxide emissions of 119g/km, a reduc‐ good value for money.
what we think
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Fiat 500X The Fiat 500X has respectable fleet appeal, reckons John Kendall. SECTOR Compact crossover PRICE From €13,600 FUEL 4.1–6.4l/100km CO2 109–147g/km
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iat has been quite clever with the design of the 500X, include the 140hp 1.4‐litre turbocharged MultiAir2 petrol first seen at the Paris Show last year and now on sale engine and 110hp 1.6‐litre “E‐torQ” petrol, both with front in many of the 100 countries it is destined for – wheel drive. There’s six‐speed transmission for the 1.4‐litre including the US. engine and five‐speed transmission for the 1.6‐litre engine. In side profile it mimics the tiny 1957 500 Nuova, which These are joined by two diesel engines: the 120hp 1.6‐ spawned the shape of the retro 500 50 years later. This litre MultiJet II and 140hp 2.0‐litre MultiJet II. The 1.6‐litre might significantly dwarf the original but, by cleverly echo‐ diesel comes with front‐wheel‐drive and six‐speed manual ing its front end design in the 500X, it is a tidy way of transmission while the larger diesel comes with nine‐ extending the 500 brand to a larger car. speed automatic transmission and four‐wheel‐drive. Other Not that the 500X is the first larger model carrying the options include a six‐speed dual clutch transmission for 500 name. It shares its platform and drivetrain with the the 1.4‐litre MultiAir engine. ungainly 500L and the impressive Jeep To follow later will be a 95hp 1.3‐litre Renegade, with which it shares more or MultiJet diesel with front wheel drive less the same range of engine and trans‐ and five‐speed manual transmission mission options. and 2.0‐litre Multijet with six‐speed Perhaps more importantly from Fiat’s manual transmission. perspective, it gives the company an Then there’s a ‘Mood Selector’ to entry in the burgeoning compact choose between three drive modes – crossover market, where manufacturers Auto, Sport and Traction for the leisure are falling over themselves to be repre‐ models and Auto Sport and All Weather sented. In terms of layout there are no for the metropolitans. Traction means surprises. The car offers a compact five‐ 4x4 for the leisure models, while All‐ door hatchback with raised ground weather uses the ESC system to provide clearance, partly due to large 16, 17 or an ‘electronic differential’ to improve 18‐inch alloy wheels. At 350 litres, the traction for 4x2 models. To minimise fuel boot is a reasonable size for the car. consumption, the rear wheels of 4x4 The 500X has character The 500X is available in two versions ‐ models are decoupled when in 4x2 mode. and offers plenty of loosely described as metropolitan and On road, the 500X feels like other choice. Our fleet pick leisure. Metropolitan versions are avail‐ crossovers with slightly insulated steer‐ able in Pop, Popstar and Lounge trims, ing feedback and supple suspension. would be the 1.6-litre while the leisure versions are available Both 1.4 petrol and 2.0‐litre diesel were diesel, which is the most in Cross and Cross Plus trims aimed at capable performers. It may lack the economical and gives off‐road use. The comprehensive range appeal of the Renegade, but that may be strong performance. of petrol and diesel engines are familiar a selling point for some customers. It’s from the Jeep Renegade. At launch these likely to be almost as capable off‐road.
what we think
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fleet in figures
AFV registrations climb in Europe EV registration growth in the EU exceeded 100%. Are EV’s finally gaining acceptance? John Kendall finds out.
Mitsubishi The Mitsubishi Outlander PHEV has been a success with fleet drivers because of its low BiK rate.
The European Automobile Manufac‐ turer’s Association (ACEA) has posted new registration data for the first time. Alternative fuel vehicles (AFVs) will continue to form a growing sector of the global vehicle parc and ACEA has provided a useful breakdown of EU registrations. This includes electric vehicles (EVs) – defined as Battery Elec‐ tric Vehicles (BEVs), with Plug‐in Hybrid Electric Vehicles (PHEVs) and Fuel Cell Electric Vehicles (FCEVs). Hybrid Electric Vehicles (HEVs) are
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listed separately, made up of full and mild hybrids, while other alternative fuel vehicles includes Natural Gas (NGV) and LPG‐fuelled vehicles. During the first quarter (Q1) of 2015, total AFV registrations across the EU grew by 28.8% compared with Q1 2014 to 144,421. The Czech Republic, Greece and Poland all recorded increases over 100%, while only two countries, Esto‐ nia and Romania, recorded decreases. Italy was the leading AFV market with 60,952 registrations in Q1, up 18.1% on
2014. As we shall see, most of these were made up of NGV and LPG‐fuelled vehicles. The UK was the 2nd largest with registrations increasing by 64.2% to 20,818, with France following with a 33.9% increase to 17,446.
EV sales gathering pace The percentage increases in the EV sector were even greater, with total EU registrations rising 117.9% to 24,630. The UK leads the way with a 453.9% increase in registrations to 8,026, giving
it both the largest market and largest percentage increase in Q1. Much of the increase has been fuelled by sales of the Mitsubishi Outlander PHEV, which has been a success with many business drivers, but not always for environmental reasons. It seems that this has been a favourite amongst company car drivers who benefit from free private mileage. The Outlander PHEV's low benefit‐in‐kind (BiK) tax rate makes it an attractive company car and it seems that those with free private mileage are unlikely to use the vehicle’s electric range at all, meaning the car is always using its petrol engine. With 4,542 registrations in Q1, a 98.9% increase, Germany was the 2nd largest EV market. In France the market rose by 101.7% to 3,737 registrations. The Netherlands was the fourth largest market for EVs with 3,251 registrations, up by a modest 6.4% in Q1. Bulgaria recorded the second largest percentage increase, with registrations up 400% from two to 10 in Q1. The maturity of the HEV market is reflected in the data for this sector. Volumes are higher in the larger markets and large percentage increases are fewer than in the EV sector. France was the largest market in Q1 with registrations up 22.5% to 13,690, followed by the UK, up 13.9% to 12,792. Large percentage increases did feature here but among smaller markets like Greece, up 150% to 205 registrations in Q1 and Poland with registrations up 127.8% to 1,451. The picture for other AFVs is quite different from the electric sector. The market rose 16.5% to 63,087 in Q1 but is completely dominated by one coun‐ try, Italy. Italian registrations increased by 16.1% in Q1 to 53,607 units. Germany was the second largest with a‐ 2.8% fall in registrations to 3,091. Third placed Sweden also recorded a decrease in registrations, with the market falling ‐5.8% to 1,688, just ahead of Poland, which rose 82.7% to 1,661. Two markets recorded no regis‐ trations at all, Romania and the UK. The market for LPG vehicles collapsed some years ago in the UK with the withdrawal
of government incentives while the lack of an NGV fuelling infrastructure is a major barrier to growth in that sector in the UK.
CV market continues to grow, following a weak 2014 ACEA has also released Q1 data for West‐ ern European commercial vehicle registra‐ tions. After the weak 2014 performance, triggered by the introduction of Euro6 emissions registrations, the CV sector seems to be bouncing back decisively. March saw the third consecutive month of growth in CV registrations, ACEA data shows that March marked the highest monthly growth in registrations since December 2013, when the data was distorted by the high level of registra‐ tions ahead of the Euro6 implementation date of 1 January 2014. Overall, Q1 EU registrations rose by 13.3% compared with Q1 2014, reaching 502,210. Only Croatia, France, Latvia and Slovenia saw registrations decline. The big five markets, other than France, all saw growth. The UK was the strongest market, with Q1 registrations climbing 24.2% to 109,573. By contrast, the decline in France was modest at ‐0.5%, with Q1 registrations falling marginally to 102,481. Germany was the third largest market recording growth of 7.1% to 74,837 registrations. Spain saw the greatest percentage growth among the Big Five with registrations growing by 42.3% to 41,008. Growth of 7.0% put Italian registrations at 34,487. Spain registered the highest month on month growth with registrations up 67.6% for March compared with March 2014, reaching 17,698. All major markets recorded double‐digit growth for the month. Light CVs have frequently been the big story, supporting weak heavy CV regis‐ trations, but strong growth seems to have returned to the heavy sector. Looking at CV registrations for gross weights above 3,500kg GVW, EU Q1 growth reached 10.7% compared with Q1 2014, with 74,138 registrations. A strong return for the Netherlands saw Q1 growth of 129.5% to 4,044. A small decline for
German registrations still ensured the highest registrations across the EU in the sector. Registrations fell by ‐1.0% to 20,475. France also recorded a decline with registrations down ‐8.6% to 10,084. By contrast the UK recorded a 45.1% rise in registrations to reach 9,617. Inevitably, light CVs below 3,500kg gross weight remain the highest volume sector, growing 13.6% in Q1 compared with Q1 2014 to 419,142. The UK leads the sector with 22.3% growth to 97,775. Growth in France was small by compari‐ son at 0.5%, but enough to make the country the second largest LCV market with 90,950 registrations. German growth was stronger at 10.5% to 53,076. As we reported last month, Ford overtook Renault in Q1 EU LCV registra‐ tions to become the biggest selling LCV manufacturer. It’s total of 70,646 regis‐ trations gave the company a 16.9% LCV market share.
Modest uplift for global light vehicle sales Global data from LMC Automotive for light vehicles shows modest growth for the January to April period of 1.5% compared with the same period in 2014. Sales reached 29,425,137. China leads, but growth has been slowing, down to 4.7% for the January to April period compared with 2014, with a total of 8,329,668. Growth remains steady in the US with light vehicle sales climbing 5.4% to 5,400,794. Not surprisingly the global trend for growth in SUV sales is strong in North America. Carlos Gomes at Scotia‐ bank reports, “Sales of luxury CUVs/SUVs surged 22% above a year earlier in April in the United States, double the gain during the first quarter. Luxury models now garner more than 13% of the U.S. new vehicle market, up from less than 12% prior to the global economic downturn.” Gomes also points to strong growth in Mexico, with Q1 sales growing 22% compared with Q1 2014. Global weak spots remain in Russia and South Amer‐ ica where economic downturn is grip‐ ping both regions.
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