International Fleet World June 2016

CAR OF THE YEAR 2016

The new Astra Sports Tourer.

With highlights of the luxury class.

Fuel consumption combined 6.2–3.6 l/100 km; CO2 emissions combined 142–92 g/km (according to R (EC) No. 715/2007).

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MORE SPACE TO DRIVE YOUR BUSINESS FORWARD THE SEAT LEON ST

TECHNOLOGY TO ENJOY The SEAT Leon ST is the perfect partner for your daily business activities. It has a boot capacity of 580 litres and has been designed to offer the driver maximum comfort. There is enough space and technology to fulfil your functional needs whilst also providing a relaxing and enjoyable environment on any road.

BOOT CAPACITY

EASY CONNECT INFOTAINMENT

DRIVING ASSISTANCE SYSTEM

With 1470 litres of potential boot space when the seats are folded, this car has the capacity to help streamline your daily activities.

Being in touch on the road is sometimes a necessity and this intelligent technology ensures it’s always possible, its compatible with Apple CarPlay™, Android Auto™ and Full Link.

To ensure safety in every situation the SEAT Leon ST comes with Lane Assist, Adaptive Cruise Control and a Tiredness Recognition System.

SEAT FOR BUSINESS

FOLLOW US ON:

SE AT.COM

Average fuel consumption from 3.6 to 6.0 l/100 km. Average CO2 mass emissions from 94 to 138 g/km.

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CONTENTS_IFW_June16_Layout 1 23/05/2016 14:28 Page 1

contents CAR OF THE YEAR 2016

The new Astra Sports Tourer.

With highlights of the luxury class.

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Publisher Jerry Ramsdale jerry@fleetworldgroup.co.uk

16 Under the skin of the Tesla Model 3.

20 The role of fleet risk management.

26 INTERVIEW: Jean-Pierre Mesic.

36 Mercedes’ amazing new E-Class...

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 Manager Harry Whyte harry@fleetworldgroup.co.uk Sales Executive Claire Warman claire@fleetworldgroup.co.uk Circulation Tracy Howell tracy@fleetworldgroup.co.uk

04 Fleet Review John Kendall on how Apps have revolutionised telematics.

06 Inside Knowledge Paul Newton analyses Nissan’s acquisition of Mitsubishi.

08 News The biggest stories from a month in the international fleet world.

Dawn Mitchell dawn@fleetworldgroup.co.uk Head of Production Luke Wikner luke@fleetworldgroup.co.uk Designers Tina Ries tina@fleetworldgroup.co.uk Samantha King sam@fleetworldgroup.co.uk

14 Spotlight An in-depth look at Tesla’s revolutionary Model 3.

20 Risk Management Managing road risk across national borders.

24 Feature The use of electric delivery vehicles in an urban environment.

26 Interview Jean-Pierre Mesic on Renault’s plans to win emerging markets.

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

28 Fleet Focus How South Africa’s developing economy impacts fleet growth.

31 IAM Report Advice for business travellers driving in Sweden.

32 Profile SEAT’s impressive 2015 performance and plans for Ateca SUV. 36 Launch Report Mercedes-Benz E-Class / Iveco Daily/ Ford Focus RS.

STAG Publications

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

40 Fleet in Figures Breaking down the latest global vehicle sales by region.

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JOHN_IFW_June16_Layout 1 23/05/2016 11:50 Page 1

fleet review This month, editor John Kendall looks at the turmoil of Mitsubishi, Nissan’s lifeline and why rare metals are becoming rarer.

Mitsubishi comes clean...

The latest motor manufacturer to hit the headlines for manipulating fuel consumption/CO2 emissions tests – Mitsubishi – is not likely to get the same treatment as Volkswagen did over its diesel emissions last September for two reasons. Firstly, it only seems to have affected models sold in Japan and secondly, Mitsubishi is one of the smaller global car manufacturers and is not such a prominent target as VW. Kei cars – mini cars designed specifically for Japan are not a familiar sight on all continents in the way that VW products have become. Just the same, cheating is cheating and as we report elsewhere, Mitsubishi has admitted that some results have been manipulated for 20 years.

Is this really the end of the story? Somehow, I suspect not and that we can expect others to come to the surface in time.

Nissan takes Mitsubishi stake Of course it's not the end of the story where Mitsubishi is concerned either. The cars under the spotlight were built in a joint venture with Nissan, although Mitsubishi was responsible for much of the engineering input and Nissan-badged models are involved as a result. Compensation claims could have a fatal effect on Mitsubishi's finances and Nissan's move to take a controlling stake in the company in early May has probably thrown Mitsubishi a lifeline. It looks like a smart move, giving Nissan access to Mitsubishi at a knockdown price. We shall have to wait and see what develops.

Rare metal shortages Why should a shortage of rare metals like platinum and palladium bother fleet users?

The answer is because these metals are used in emissions control systems, principally catalytic converters fitted to all petrol and diesel engines in the developed world where tight emissions legislation is in operation. Although recycled metals will help to make up the short fall, the inevitable upwards pressure on prices will make it more attractive for metal thieves to target vehicles where catalytic converters are more vulnerable. Light CV fleets will be familiar with the problem – a costly one when it occurs. Light CVs have been targeted because their comparatively high ground clearance makes it easier to access catalytic converters fitted to them. The metal shortage could stimulate greater interest in EVs in time, but these also rely on rare metals for battery construction and concerns have been expressed in the past about future lithium supplies for them.

Telematics moves on Telematics systems appear to be going through a crucial change at the moment as the irresistible rise of the App transforms how we handle mobile communications. I have seen at least two systems in the last month that seem to acknowledge that the days of supplying separate hardware for these systems is drawing to a close. The problem is that the pace of change in computing means that these systems are frequently outdated in a year or two, whereas Apps can be re- designed and updated for the devices that many business people carry with them all the time – the smartphone and tablet computer.

visit internationalfleetworld.com

MEET THE NEW EMPLOYEE OF THE YEAR

The New ŠKODA Superb.

The mighty and the elegant, the joyful and the intelligent - the new ŠKODA Superb.

In both Limo and Combi versions, the new Superb boasts a unique body shape, class-leading spaciousness and dynamic curves, making it a true flagship of our range.

And given its cost-effective operation, modern technology, low emissions and beneficial fleet offers, you are about to meet one of your most efficient and reliable employees ever.

www.skoda-auto.com

Combined fuel consumption and CO2 emissions for the Superb model: 3.8–7.2 l/100 km, 100–165 g/km.

INSIDE_Mitsubishi_IFW_June16_Layout 1 23/05/2016 11:48 Page 1

inside knowledge

Mitsubishi looks to restore trust Paul Newton, director, world markets analysis, IHS Automotive looks at the strategies... issan has agreed to invest JPY237 billion (€1.93 a 20% stake in the company. Mitsubishi Corporation billion) in embattled automaker Mitsubishi, holds a 10% stake, while the Bank of Tokyo-Mitsubishi giving Nissan a 34% stake and making it the UFJ, owned by Mitsubishi UFJ Financial Group, holds single largest shareholder in the company. The about a 4% stake. Nissan is already in a vehicle develpurchase will be of newly issued shares. Nissan chairopment and manufacturing partnership with man and CEO Carlos Ghosn said. “We are determined Mitsubishi. The companies established a joint venture to preserve and nurture the Mitsubishi brand, and we (JV), NMKV in June 2011 to develop both companies' will help this company to address the challenges it minicar business in Japan. Although the purchase by Nissan is expected to faces, particularly in restoring consumer bolster economies of “We are determined to trust in its fuel-econscale and create synerpreserve and nurture omy performance.” gies in areas including The two companies platform sharing, SUVs, the Mitsubishi brand, expect to reach a final and pick-up trucks, and and we will help this agreement by 25 May. in markets such as company to address Under the planned Southeast Asia, the the challenges it faces.” agreement, Nissan can true cost of the scandal name four directors to affecting Mitsubishi is Carlos Ghosn, chairman & CEO, Nissan Mitsubishi's board, still unclear. However, including the chairthe 34% stake allows man. “It will not be easy Nissan to remain to restore trust. With outside the liability Nissan, we will start threshold for Japanese moving towards that goal,” said Osamu Masuko, chief companies. The purchase will give them an effective executive of Mitsubishi Motors, on Thursday. controlling stake and is somewhat opportunistic as €1.93bn is not a huge sum for such a significant chunk Meanwhile, Mitsubishi has revealed that false fueleconomy data may have been submitted for more of the company and could be seen as something of a models, including some currently on sale and some bargain. Mitsubishi's share value has sunk in the region discontinued models in Japan. In a company press of 43% since the scandal broke. Trade in Mitsubishi release, Mitsubishi said that it was possible that data stock was suspended on 12 May in Tokyo after it for the RVR sport utility vehicle (SUV) had been reached the daily limit following a flood of investors calculated rather than obtained as a result of testing, looking to buy on the news. as required by law. However, the company is Despite the apparent opportunistic nature of the move, the investment has a wider and more long-term currently undertaking more tests to reach a conclusion. As to whether the scandal has spread outside rationale in areas of new technology and future platJapan, Mitsubishi president Tetsuro Aikawa said, form development/sharing. Mitsubishi's plug-in hybrid “Fuel-efficiency data measurement was conducted technology compliments rather than competes with in accordance with each country's regulations, so Renault-Nissan's electric vehicle technology. In the there's no problem.” profitable segments of pick-ups and SUVs there is significant opportunity to develop platforms, which Outlook and implications will gain from the additional economies of scale selling across two-three brands (Renault is moving Currently, Mitsubishi's biggest single shareholder is increasingly into SUVs and Crossovers).

Mitsubishi Heavy Industries (MHI), which owns about

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Meet the game changer

The new Hyundai Tucson

This is the car that demonstrates the power of change. Bold, expressive design, a completely new platform and class-leading internal dimensions combine to make the all-new Tucson an unbeatable package. There’s a wide-opening panorama roof, smooth-changing 7-speed dual-clutch transmission and other desirable features that are unique in this class.

Competitive pricing, low operating costs and high residual values make the all-new Tucson an ideal fleet vehicle. But the major attractions are the way it looks and the way it drives. The new Hyundai Tucson. Change is good.

Combined fuel consumption for the Tucson range: 4.6 - 7.6 l/100 km. Combined CO2 emissions for the Tucson range: 119 - 177 g/km. The 5-year unlimited mileage warranty is valid in all EU member states + EFTA. Warranty is subject to local terms and conditions. For taxi or rental usage model specific restrictions apply.

For more information, visit www.hyundai.com/eu

NEWS_IFW_June16 23/05/2016 11:52 Page 1

business news

Quarter of business travellers round up mileage claims lmost one‐quarter (22%) of business travellers A regularly embellish their expenses by rounding up business mileage claims by 1 and 10 miles per journey.

That’s the finding of new research by KDS, a global provider of corporate travel and expense management software solutions.

The survey of over 1,000 participants also revealed that 41% of respondents still use time‐intensive spread‐ sheets for tracking and submitting their expenses, with 47% of those respondents confirming it takes between 30 minutes and one hour to submit an expense claim, and 18% taking one to two hours.

A total of 80% of employees complete their expense submissions during working hours.

ALD finalises acquisition of Parcours Group LD Automotive has finalised the acquisition of A French long‐term vehicle leasing company Parcours Group, a subsidiary of Wendel.

The announcement from parent firm Societe Generale follows both groups’ decision to enter into exclusive negotiations earlier this year.

In a statement, Societe Generale said: “The acquisition of Parcours allows ALD Automotive to strengthen its position with SMEs and very small companies in France and to accelerate its growth in the long‐term leasing business thanks to Parcours’ total fleet standing at 61,500 vehicles (including 55,000 in France).”

As a result of the acquisition, ALD Automotive’s pro forma total fleet represents almost 1.3 million vehicles at the end of April 2016, including 420,000 in France.

LeasePlan reports fleet size increase easePlan Corporation N.V. has published its first quarter 2016 results, including a growth in its fleet size compared to the previous quarter but a year‐on‐ year fall in net profit.

For the first three months of the year, the leasing giant reported a 1.9% increase in its global fleet to 1.58 million vehicles under management, from 1.55 million at the end of December 2015.

Total assets were up to 1.4% to €21.7bn at 31 March 2016, from €21.4bn at 31 December 2015. LeasePlan added that the increase reflects the positive develop‐ ment of its fleet size.

Q1 net profit stood at €117.4m, down 4.9% from €123.1m in Q1 2015.

Commenting on the outlook for 2016, LeasePlan said: “Although the competitive landscape will remain chal‐ lenging in 2016, the company believes that all the funda‐ mentals for further growth are firmly in place. LeasePlan will retain its added value for clients, drawing on its tailored products and services, its wealth of expertise, its excellent people and the reach of its global presence.”

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Chevin expands in France leet management software specialist Chevin has opened a new office in France. The office is based in the Lyon area and is headed up by Jean‐Charles Martin as sales director.

Mr Martin has 25 years’ experience in IT, especially the software automotive and technology industries. His role at Chevin will see him build and strengthen the company’s local presence, working alongside European & African sales director Paul Verkinderen.

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New solution links route planning and navigation

new European fleet telematics solution that provides pre‐planned routes with turn‐by‐turn offline voice guided navigation has been developed in partnership between Masternaut and Sygic.

Sygic provides professional navigation software for fleets, and the integration of its technology within Masternaut’s telematics solution enables fleets to digitise and preload maps and routes to make it easier to share with all drivers, and send them over the air to vehicles.

Alex Rothwell, chief technology officer, Masternaut, commented: “Our partnership with Sygic enables our customers to benefit from offline route management which doesn’t require an internet or GPS connection, helping them to link together pre‐route planning with fleet management and telematics.”

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For the latest news, visit internationalfleetworld.com

2016 PRAISE Awards to recognise fleet road safety achievements uropean organisations – both large and small – that have taken outstanding measures to improve road safety at work are being invited to enter the 2016 PRAISE Awards being held by the European Transport Safety Council (ETSC).

Previous winners include OMV Petrom, Transport for London, Arriva Denmark, Unilever Poland, Electricity Supply Board, Bolk Transport and British Telecom, which have all demonstrated that prioritising road safety can help the bottom line, improve working conditions for staff, and boost customer satisfaction.

The awards are open to organisations with a road safety programme, and the results to prove it. The competition is divided into three separate categories: SME, large company and public authority.

To find out more, and to download an application form, please visit the ETSC website (www.etsc.eu).

fleetinquotes a few soundbites from a month in fleet

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eDriving showcases fleet safety developments nline driver education specialist eDriving has debuted its line-up of online driver training and global driver safety management solutions and announced its latest developments following its recent acquisition of Interactive Driving Systems.

The US company bought Interactive Driving Systems earlier this year to provide a full suite of driver training solutions on a global scale.

At a London-based forum, CEO Celia Stokes updated attendees on the merger, saying: “We knew our combined mission of providing best-inclass solutions was both compatible and promising, but the level of progress we’re making right out of the gate with eDriving FLEET as our newly evolved brand in the fleet space is exceeding all expectations and uniquely positions us for continued success and global growth.”

During the forum, eDriving FLEET revealed a key piece of its product development strategy by demonstrating the prototype of edriving’s closed-loop telematics-enabled driver training platform, which it announced is expected to launch later this year.

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ABAX expands telematics business in Europe elematics specialist ABAX has increased its presence in the European market with the acquisition of two Swedish businesses.

The company has purchased Accessor Sverige AB and Ctrack Sweden AB, adding around 10,000 vehicles to ABAX’s existing subscription base and taking the total to more than 150,000.

The latest deals take the firm’s number of business acquisitions in Europe since 2014 to seven and come as ABAX reports a 50% growth rate for 2015.

Accessor Sverige AB and Ctrack Sweden AB founder and former owner Niclas Holm said: “I have taken the companies to a level where they need more resources and a bigger organisation to take them to the next level.

“I have therefore been looking for the right organisation to replace me.

ABAX are probably the only company in our line of business that consistently presents growth rates above 30% and are still able to remain profitable. I am therefore proud to hand over the responsibility to the ABAX Group.”

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We believe Project EDWARD (European Day Without A Road Death) on 21 September will encourage all road users to reflect on their behaviour and attitude, and re-energise casualty reduction in Europe.

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Aidan Reid, president of TISPOL (European Traffic Polic Network)

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The future of mobility is emission-free. Our roadmap for electric mobility is ready. For us, hybrids and plug-in hybrids are both a transitional and bridging technology.

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Professor Rupert Stadler, chairman of the board of management at Audi

“

The opportunity to work with FCA engineers will accelerate our efforts to develop a fully selfdriving car that will make our roads safer and bring destinations within reach for those who cannot drive.

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John Krafcik, CEO of Google's Self-Driving Cars, on integration with FCA vehicles.

internationalfleetworld.com / 09

E-fficiency Class.

The new E-Class by Mercedes-Benz. Masterpiece of Intelligence. Equipped with new diesel and PLUG-IN HYBRID engines, as well as the most innovative technology in its class, to fulfil one aim: Making your fleet more efficient, more comfortable, more economical. mercedes-benz.com/fleet

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EVNEWS_IFW_June16 23/05/2016 11:35 Page 1

environmental news

Support EV sales, not scrappage, to cut NOx, says new report ncouraging fleet and retail buyers to move to electric vehicles would be a more cost-effective way to improve UK air quality than a scrappage scheme, according to an analysis by the RAC Foundation.

The Foundation’s report suggests a scrappage scheme would have to be much larger than that of 2009 and 2010, which removed 400,000 vehicles from the country’s roads, to have any effect.

Assuming 400,000 of the oldest diesel vehicles – Euro 1, 2 and 3 – were removed from the roads and replaced with fully electric models, the report shows a reduction in NOx emissions of only 5.5% (2,500 tonnes) for the UK’s vehicle parc, based on official figures. This would require an equally split £800m (€1.2bn) from the Government and vehicle manufacturers.

However, using data from the ICCT study into realworld emissions which led to the Volkswagen scandal being exposed last autumn, the scheme would actually only reduce total NOx emissions by 3.2%. Although the

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volume of NOx being removed from the atmosphere is higher, its proportional effect is lower due to ‘realworld’ emissions being twice the official figures.

Even if all 1.9 million Euro 1, 2 and 3 diesel vehicles were removed from the road and replaced with electric cars, the scheme would only cut total NOx emissions by 15.5% according to real-world data, the report added. Meanwhile, if 400,000 diesel vehicles were replaced with Euro 6 equivalents, the scrappage scheme would only cut 1.3% of total NOx emissions based on real-world data (2,000 tonnes).

Steve Gooding, director of the RAC Foundation, said the money could be better spent on infrastructure and incentives to support electric cars: “There needs to be a big drive to get more people, and fleet buyers, to commit to ultra-green motoring and that means government subsidies must remain in place to close the price gap that still exists between vehicles powered by alternative fuels and those driven by fossil fuels.”

Germany finalises EV incentives, excludes Tesla he German government has finalised plans for a €1.2bn incentive programme for electric and plug-in vehicles, supported by car manufacturers.

Buyers of electric vehicles will be able to claim a contribution of €4,000, reduced to €3,000 for plug-in hybrids, as long as the list price is less than €60,000. Funding is shared equally between manufacturers and the government.

BMW, Daimler and Volkswagen have already signed up to the scheme, but all eligible carmakers can take part. Subsidies have been available on new purchases since May, and will continue until 2019 or until the funds are used up.

However, the programme has drawn criticism from Tesla, which issued a statement on its German website

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saying the “arbitrary” price limit was directed against its model range. The Model S and Model X both have list prices higher than the €60,000 cap, and are currently the only fully electric vehicles which do not qualify.

In response, Tesla will match the government contribution by discounting its model range for German customers, and said it will seek to develop a fairer scheme with the authorities, adding that its cars compete in the highest CO 2-emitting sectors of the market.

The Federal Republic of Germany will also invest €300m on new public fast charging networks and €100m put towards switching 30% of the government’s fleet to alternative powertrains.

EVNEWS_IFW_June16 23/05/2016 11:36 Page 2

For the latest EV news, visit evfleetworld.com

Groupe PSA and Dongfeng to co-develop compact EVs eugeot, Citroën and DS electric vehicles are to be underpinned by technology co-developed with Groupe PSA’s Chinese manufacturing partner, Dongfeng Motors, under an agreement signed in May. The Chinese state-owned manufacturer, which has built Peugeot and Citroën models for its local market since the Dongfeng Peugeot Citroën Automobile joint venture was formed in 1992, began developing a platform for compact models with Groupe PSA last April.

The Common Modular Platform will now also form the basis for a dedicated architecture which will underpin globally-available high-performance electric vehicles in the B and C-segments, under all three brands, starting from 2019. This could mean electric versions of the Peugeot 208 and 308, Citroën C3 and C4 and DS 3 and 4 are in the pipeline.

It follows the recent announcement of Groupe PSA’s ‘Push to Pass’ sustainable growth strategy, which includes launching seven plug-in hybrids and four electric vehicles, based on two platforms, by 2021.

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Netherlands aims for 100% EV sales by 2025 he Netherlands is to ban sales of new petrol and diesel cars within a decade and phase them out completely by 2030, following a majority vote in favour of a proposal put forward by the Dutch Labour party, PvdA. In its proposal, the party said the country’s small size and flat landscape mean it is ideal for electric vehicles. It suggested gradually introducing legislation to phase out conventionally-powered cars and vans ahead of the full ban, and to replace fuel stations with fast chargers to support earlier adopters.

“Electric cars will soon be cheaper than cars with internal combustion engines and the Netherlands should continue to encourage fiscal abundance,” said the party. “The question really will be why would still like to drive around in polluting petrol and diesel cars. The answer of course is that we will not accept this anymore. Cars with exhausts are the new cigarette.”

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in brief UK fleets offered 75% FCEV subsidy Public and private sector fleets in the UK can now apply for up to 75% funding for a hydrogen fuel cell vehicle, as well as support for three years of maintenance and running costs. The scheme, run by the Office for Low Emission Vehicles, is taking applications until July.

New Zealand launches EV incentives package New Zealand has introduced a package of incentives aimed at doubling its EV fleet every year between now and 2021 with reduced dependence on imported fossil fuels. This includes promotional campaigns, bulk orders for fleets, charging infrastructure and access to bus and high-occupancy lanes for drivers.

Honda confirms EV and PHEV versions of Clarity FCEV Honda is to offer electric and plug-in hybrid drivetrains in the Clarity, alongside the hydrogen fuel cell model, making it the first model to offer all three technologies on the same platform. Plug-in versions will be available in Europe shortly after the fuel cell vehicle launches next year.

Nissan lets fleets earn money from their EVs Nissan and utility company Enel have begun a vehicle-to-grid trial in the UK, which will pay fleets and private owners to sell energy from their EV batteries back to the National Grid. The aim is to stabilise demand during peak periods, and reduce dependence on coal-fired power stations.

52.5%

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Electric, hybrid and fuel cell share of Norway’s new car market the first four months of 2016.

in numbers

300km The electric range of the BMW i3 with its new 50% larger battery pack.

Source: BMW

Source: Opplysningsrådet for Veitrafikken

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NEWS_IFW_June16 23/05/2016 11:53 Page 3

manufacturer news

Nissan takes stake in Mitsubishi issan is to take a 34% stake in Mitsubishi, becoming its biggest shareholder.

The deal is valued at 237 billion yen (€1.9bn) and will extend a current collaboration between the carmakers covering the past five years.

The partnership will see the two cooperate on areas including purchasing, common vehicle platforms, technology-sharing, joint plant utilisation and growth markets.

The announcement follows the recent news that fuel efficiency on models sold in Japan had been overstated.

Carlos Ghosn, chief executive of Nissan, said: “This is a breakthrough transaction and a win-win for both Nissan and Mitsubishi Motors. We will support MMC as they address their challenges and welcome them as the newest member of our enlarged Alliance family.”

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Emissions Analytics launches real-world NOx database missions Analytics has launched an independent database which E ranks new cars based on real-world emissions of nitrogen oxides (NOx), with the results available online.

The EQUA Air Quality Index contains 450 petrol and diesel vehicles, of which around a third are Euro 6 models and the rest Euro 5, and it will keep adding results in the coming months.

Vehicles are grouped into eight ratings based on NOx emissions in grams per kilometre, and users can sort and search the results by manufacturer, fuel type and rating.

The data is independently funded, based on tests carried out using a Portable Emissions Measurement System (PEMS) attached to the car during a road route to analyse exhaust content including NOx emissions.

Opel and Nissan refute allegations of defeat devices oth Opel and Nissan have responded to accusations that they have BNissan been using defeat devices in their vehicles. has denied claims by South Korea’s Ministry of Environment

(MOE) that Euro 6 diesel engines in the Qashqai have used ‘defeat devices’ to cheat emissions testing.

The allegations relate to vehicles built at Nissan’s plant in Sunderland in the UK as, since 2014, South Korea’s emissions requirements for diesel vehicles have been based on the same Euro 6 limits which came into force for European markets last year. Petrol cars must comply with U.S. standards.

Meanwhile Opel has released a statement to “stress the fact that we do not deploy any software that recognises whether a car is undergoing an exhaust emissions test”.

The statement comes on the back of allegations that defeat devices had been found in vehicles, including from environmental activist group Deutsche Umweltilfe (DUH) and magazine ‘Der Spiegel’.

In response both carmakers pointed to extensive tests conducted in various countries, including Germany and the UK, which found no evidence of defeat devices being used by anyone except VW. According to reports, Germany’s transport minister has summoned Opel to an investigative committee along with Fiat.

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in brief Skoda names new SUV Skoda has confirmed its forthcoming large SUV will be named ‘Kodiaq’ after an Alaskan bear and will debut in Q2. The seven-seater model will sit above the Yeti.

New Ford diesel Details have been announced on Ford’s new 2.0-litre Ford EcoBlue engine, which will launch first in the new Transit and Transit Custom in a range of outputs. The engine will later feature in passenger cars alongside a 1.5?litre variant.

EU car registrations rise Car registrations in the EU rose 9.1% year-on-year in April, marking the 32nd consecutive month of growth.

ACEA figures show the total of 1.27m units was the highest result in volume terms since April 2008.

New LCV director at Nissan Europe Nissan Europe has appointed Robert Lujan as its new LCV business director. Mr Lujan is currently divisional general manager of the global sales and performance division at Nissan’s headquarters in Japan.

Euro NCAP goes Chinese Euro NCAP has launched a version of its website in Mandarin Chinese. The move marks the growing use of the site by buyers outside Europe who are looking for safety information about cars imported from Europe or globally available models.

If you want to manage your fleet efficiently and transparently, you need to consider alternatives to traditional closed-end calculations. By unbundling the services in a pay as you go model, you’ll not only achieve targeted potential savings, but you’ll also capitalize on proactive services. What exactly does this mean to you? As a world leader in fleet management, ARI supports you in your ongoing operations, e.g. billing, remarketing, fuel cards, maintenance repair or damage claims.

We will also meticulously optimize all processes based on big data concepts. And always, with transparency in the foreground, thanks to online access to all decision-relevant reports and with open accounting based on actual costs per month, vehicle and service module.

Discover a new dimension of fleet management. +49-711-6676-17100 | sales@arifleet.de

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SPOTLIGHT Tesla Model 3

Magic number?

Unveiled at an Apple-like event in California at the end of March, the Model 3 will extend Tesla’s range into the compact executive segment when deliveries begin in Europe in 2018. Alex Grant finds out how.

Challenges ahead Priced from $35,000 (€31,000) in the US – likely to be around €38,000 in Europe – this will rival the A4, 3 Series and C-Class, among others. It’s a significantly higher-volume segment than Tesla has competed in before, but it’s readying for the challenges this poses.

Chief executive and co-founder Elon Musk says the company’s factory in Fremont, California has a capacity of half a million cars per year, and has hinted at local production in Europe, too. The ‘Gigafactory’ in Nevada, a joint project with Panasonic with the largest footprint and secondlargest volume of any building in the world, will produce the same number of battery packs.

In the meantime, Tesla is doubling its Supercharger network to 7,100 sites, quadrupling its destination charger network to 15,000, and will have 441 dealers by the end of next year, ready for the first deliveries.

“We don’t make slow cars…”

The Model 3 uses a skateboard-like platform similar to the Model S, with a flat battery pack under the cabin, and motors at either the rear or both axles offering two or four-wheel drive. None of the cars at the reveal had badges identifying their battery capacities, but expect there to be multiple options with progressively longer ranges.

It’s only the entry-level version which has been detailed so far. This will have a 215-mile range under the U.S. EPA test cycle, likely to be close to 500km on the more lenient European equivalent. This implies a 60kWh battery, matching the slightly cheaper Chevrolet Bolt and possibly the next Nissan LEAF. “We don’t make slow cars,” said Musk at the launch, noting that even entry-level versions will reach 100kph in under six seconds.

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Technology and luxury Tesla hasn’t released dimensions for the Model 3, but Musk claimed luggage capacity will be best in class – helped by the additional compartment at the front of the car. Its dashboard is as far forward as possible, creating extra legroom for both rows, while the roof is a single pane of glass to increase headroom for rear-seat occupants.

Unsurprisingly, it’s also big on technology. The dashboard is bare save for a large central display positioned above a compartmentalised centre console – something the Model S lacks – and all versions will feature the AutoPilot driver assistance functions. So the Model 3 will regulate its speed and change lanes on the motorway, park itself with nobody at the wheel, and include autonomous emergency braking. Tesla is targeting maximum safety ratings across the board.

FLEET FACT More than 115,000 customers pre-ordered before the car had been unveiled.

What we think...

Against all odds, Tesla has proved it can lure drivers out of German premium brands with an entirely electric car and a limited charging, servicing and retail network. As the Model 3 will launch with an established infrastructure and known brand behind it, and a lower price, the company has plenty to feel positive about. But with high demand comes long waiting times, which is tricky as rival manufacturers rush to bring competitors to market. AG

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SEAT_Barcelona_IFW_June16_v2_Layout 1 23/05/2016 14:34 Page 1

Created in Barcelona

ALL-NEW ATECA

BARCELONA is the historical and cultural home of SEAT, a city in Catalonia on the Spanish Mediterranean coast. SEAT began building cars here in the 1950s. Before SEAT, Barcelona was home to numerous Spanish brands including Hispano Suiza, renowned for its luxurious cars and innovative technology, particularly in engine design. It also helped to establish the company that became SEAT. ATECA, the latest model to wear the SEAT name can draw on the rich heritage of design, fashion and architecture, so closely associated with Barcelona.

The city celebrates the 11th edition of Barcelona Design Week at the start of June just as ATECA is going on sale across Europe.

“The Ateca shows the clear evolution of our characteristic design language. It’s immediately recognisable as a SEAT, yet every element has been carefully redesigned for an SUV,” says Alejandro Mesonero-Romanos, Head of SEAT Design. “Our

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design is sculptural and full of tension. And it’s created with precision and quality in every detail, of the kind possible only with the enormous passion and expertise of all involved.”

The creativity of architects like Antoni Gaudi and the importance of fashion to Barcelona, it was named as the third most important fashion capital by the US-based Global Language Monitor, are powerful creative influences for SEAT design. Gaudi blended tradition with modernism and SEAT’s design team have followed a similar approach for ATECA. The broad muscular stance of the car conveys solidity and reliability, while the dynamism and modernity of the design are conveyed through sharply defined lights, substantial air intakes and the interaction of precise lines with sharp creases and flowing forms in the side profiles. The daytime running lights form a triangular signature, which adds to the effect.

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FLEET ORIGINS DYNAMISM MEETS SOLIDITY AND SAFETY The blending of dynamism with the traditional feel of solidity and safety continue inside with features such as the high centre console contrasting with the shortened gear lever.

The influence of Catalan fashion can be seen in the ambient lighting with “waterfall” look in the doors. Passengers can choose from eight different colours to adapt the interior lighting according to their mood and personal preferences.

Barcelona has also gained a reputation for its sporting events, in tune with the youthful dynamism of its population.

As host to the 1992 summer Olympic Games, Barcelona has developed a number of sporting facilities, with no less than 10 major sports venues around the city hosting football, basketball, ice hockey, roller hockey, rugby union, American football and motorsport, among others.

ALL-NEW ATECA – ADAPTED FOR THE MODERN FLEET Modern SUVs cannot afford to just be off-roaders and Barcelona’s sporting tradition is reflected in the dynamism, design and technology available with ATECA. It incorporates the versatility of an SUV with lightweight design that brings fleet efficiency and dynamic agility to its driving characteristics.

This continues through to the choice of engines, all turbocharged and with low CO2 emissions and power outputs from 115hp to 190hp. Petrol and diesel engines are in the

range from SEAT’s 115hp 1.0TSI petrol engine to 2.0-litre TDI with 190hp. With this engine, the car also comes with DSG automated transmission and all-wheel-drive to ensure ATECA can deliver dynamic performance on road and off.

TECHNOLOGY TO KEEP FLEETS CONNECTED Barcelona has also developed a reputation as a smart city with a vision to integrate multiple information and communications technology solutions in a secure fashion.

ATECA offers a similar experience for fleet drivers, who can choose from a range of connectivity options including Media System Plus, with an eight-inch screen, the Connectivity Box in the centre console which enables wireless charging for smartphones, SEAT Full Link enables connectivity using MirrorLink as well as Apple CarPlay and Android Auto. The SEAT ConnectApp makes use of MirrorLink integration but leaves the driver in full control.

SEAT’s operations are centred around Barcelona where the company employs more than 14,000 professionals at three production centres, Barcelona, El Prat de Llobregat and Martorell, where the highly successful Ibiza and Leon models are produced. The company also has a Technical Centre, which operates as a knowledge hub bringing together 1,000 engineers who are the driving force behind innovation for Spain’s largest industrial investor in R&D.

“BARCELONA’S SPORTING TRADITION IS REFLECTED IN NEW ATECA’S DYNAMISM, DESIGN AND TECHNOLOGY.” h y

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RISK MGT_IFW_June16_Layout 1 23/05/2016 12:24 Page 1

FEATURE Risk Management

Managing road risk Managing operational road risk across age groups and national borders can uncover a range of challenges, as Steve Banner explains. ow much risk do your drivers pose to themselves, to other road users and to your company? Is their attitude towards driving cautious and responsible or devil-may-care and potentially dangerous?

Employees who fall into the latter category can often be identified by the steady stream of speeding tickets that arrive on the fleet manager’s desk and the mounting pile of insurance claims. A responsible fleet should attempt to spot risk-prone individuals before problems arise however – and

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take steps to ensure those problems do not become a serious issue.

Online risk assessments One option is to oblige everybody who drives on company business to undertake an online risk assessment says Andy Phillips, director, risk management at Applied Driving Techniques Global Solutions. It is a service his company can offer in a dozen languages.

“Drivers are asked 45 questions that cover everything from how long they have held a driving licence and whether they spend

The future of risk reduction Volvo’s Drive Me project in Gothenberg explores the potential for autonomous vehicles to reduce risk and improve efficiency.

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most of their time on rural roads, urban roads or motorways to whether they use a mobile phone while they’re driving and how many accidents they’ve had,” he says.

Some individuals may of course be tempted to be less than honest in their responses. The algorithms behind the system can usually spot those who are being economical with the truth however and Applied also carries out other checks; on the individual’s licence for example.

The data allows drivers to be graded as low, medium or high risk says Phillips.

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“ At one end of the spectrum you have Sweden, which is very safe, while at the other you have India.”

High risk – bad driver?

“Remember that being categorised as high risk does not necessarily make you a bad driver,” he stresses. The category may simply be a function of your age, the location you work in and the time you begin work.

“If for example you are a young driver who spends most of his time in a country district with a lot of early starts then you may be at greater risk of having an accident than somebody of the same age who spends most of his time driving up and down the motorway,” Phillips says.

Young male drivers are the ones most likely to be involved in early-morning collisions because they have fallen asleep according to research cited in ‘Managing Young Drivers At Work’, a report published last year by the European Transport Safety Council (ETSC).

Drivers who are tagged as high risk by Applied’s assessment may be obliged to undertake on-the-road training or complete a series of online modules that evaluate their ability to perceive hazards.

“They may for example be asked to tackle a module a month for the next six months and it should be noted that the video footage used will features roads in whichever country the driver happens to be based in,” he says.

Nor are employees who pose far less of a risk ignored. “We issue regular newsletters covering everything from winter driving to the dangers of driving under the influence of drink or drugs and again they are produced in a dozen or so languages,” he says.

Applied is active in 37 countries worldwide. “We’re busy in the USA, the Middle East and Europe – especially in Germany, Belgium, Spain and France – and we’re doing some work in Canada, Brazil, Mexico, Colombia, Australia and New Zealand and in the Asia Pacific countries,” he says.

Differing risk attitudes Attitudes towards risk and the dangers posed by the road network and the people who use it differ enormously worldwide says Phillips. “At one end of the spectrum you have Sweden, which is very safe, while at the other you have India,” he observes.

Even within Europe the situation can differ markedly from one country to another he adds. “Drivers in German fleets for example are 1.5 times more likely to be involved in accidents than those in UK fleets,” he observes.

Installing a telematics system so that drivers know that they are being tracked can prompt them to behave more sensibly according to research published by LeasePlan last year.

35% of the 3,377 questioned by the LeasePlan MobilityMonitor survey in 20 countries worldwide said that they would change their behaviour at the wheel if a telematics device were to be fitted in their vehicle. 9% said they would probably drive more cautiously while 7% said they would probably drive more slowly.

Telematics monitoring Unilever Poland uses telematics to monitor excessive speeding on a weekly basis says Edyta Karpiuk-Jagodzinska, safety, health and environment co-ordinator for Poland and the Baltics. “Practical road safety training is undertaken every three years and drivers aged under 25 must repeat their training annually,” she says.

A telematics device can be backed by a driver behaviour monitoring system that records instances of harsh braking and acceleration and over-enthusiastic cornering. They can trigger a display in the cab that will hopefully prompt whoever is behind the wheel to be more sensible and be stored so that the fleet manager can download them and discuss them with the employee.

The performance of the best and worst drivers can be set out in a company league table created to incentivise the latter to improve.

Monitoring specialist GreenRoad runs a Fleet Elite programme, which gives status to the safest drivers. Trimble has added a Driver Safety Scorecard to its Saskia Harreman, director of international consultancy services at LeasePlan

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FEATURE Risk Management

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FieldMaster suite of mobile apps so that remote workers can see just how safe their on-highway behaviour really is and make adjustments accordingly.

Mobile phone ban

“All of our drivers can participate in the Unilever Safe Driver Competition which rewards every driver who completes 70,000km without incurring a traffic fine or suffering a collision,” says KarpiukJagodzinska. It is worth noting that as of July 2015, Unilever implemented a worldwide ban on the use of all mobile phones – both hands-free and handheld – while driving.

Fleet priorities vary worldwide depending on what the key health and safety issues are locally and what the law says they can and cannot do says John Wisdom (left), European managing director of South Africa-based tracking and monitoring specialist Ctrack.

National variations “In Australia, for example, a lot of the focus on safety is centred around fatigue management and how many hours the individual has been driving,” he observes.

“So far as legislation is concerned, the strict data protection laws in force in Germany can cause difficulties where tracking and monitoring are concerned, especially if a driver is using a company vehicle in the evenings or at weekends.”

If an accident does occur then it is vitally important that the fleet manager and the insurance company are notified as quickly as possible; ideally with video footage of the incident as it has unfolded. So says Sam Footer, head of international business and strategic

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development at Intelligent Telematics.

Its system employs a front-mounted 3G camera combined with a g-force sensor and a tracking system. If the driver has to hit the brakes hard then an alert will be triggered and the camera will record what is happening.

“We’re in the process of rolling out over 1,000 of these packages to the Air Products fleet in Europe,” he says. The system is already in service in a number of widely differing markets including Chile, Nigeria, the Cameroons, Guinea and even northern Iraq. Intelligent Telematics has operations in the USA, Australia and South Africa.

case studies featuring both fleets appear on the ETSC’s website (www.etsc.eu).

Silent Witness

Mitigating risk also involves the regular checking of driving licences, implementing and enforcing a ban on driving while under the influence of drink or drugs – including prescription drugs – ensuring that vehicles are properly maintained and reporting defects such as bald tyres and a severely-cracked windscreen promptly. Fleets should also ensure that drivers are made aware of the benefits of the safety devices many vehicles now feature; Lane Departure Warning and Cross Wind Assist (which stops you being blown into the next lane in strong cross-winds) for example.

Fleet risk goes beyond pure health and safety concerns however, important though they are.

The choice of acquisition method can have implications for the company’s balance sheet and tax bill, while vehicle selection can involve financial risk revolving around running costs and residual values. Inadequacies in a firm’s recruitment policy can result in a firm hiring an employee with a criminal record who promptly disappears with a valuable car.

Insurance arrangements too clearly involve risk, especially when it comes to determining how far a fleet should insure its activities and how far it should shoulder certain risks itself where it is legally permitted to do so.

Sometimes those risks can be difficult to quantify; when for example politicians happily point to the CO2 benefits of opting for diesel cars and endorse them accordingly only to reverse their stance four or five years later and blame them for polluting city streets with excessive emissions of NOx (oxides of nitrogen) and particulates...

Dashboard cameras provide an immediate record of accidents or poor driving behaviour.

One way in which it can be put to good use is in combating crash-for-cash frauds where motorists deliberately cause a collision with another vehicle, claim it was the other driver’s fault then file a spurious claim for whiplash injury.

Post-incident training

The aftermath of an accident has to be carefully managed, says Republic of Ireland-based utility Electricity Supply Board. “ESB drivers involved in a serious collision must undertake post-incident training prior to returning to driving duties,” says road safety bureau communications officer, Grainne Coogan.

Both Unilever Poland and ESB have been successful in the ETSC’s PRAISE – Preventing Road Accidents and Injuries for the Safety of Employees – awards and

Fleet policies

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NIRO > ThE hybrID CrOSSOVEr Launching in Q3 2016, the all-new Niro combines Kia’s standout crossover styling with a state-of-the-art hybrid drivetrain emitting less than 89g/km CO2.

Crossover Chic A newcomer with a familiar sense of style, the Niro’s aerodynamic and athletic form is unmistakably part of Kia’s popular crossover family. Developed by our acclaimed design teams in California and South Korea, it brings cool, modern styling and broad appeal to an increasingly popular sector of the European market with company car drivers at its core. And, as with every Kia sold in Europe, it features our industry pioneering seven-year, 150,000km warranty.

Despite its compact proportions, the all-new platform – designed exclusively for hybrid and electric models – underpins an incredibly safe urban crossover. Advanced assistance systems not only offer peace of mind for drivers and operators, but help keep insurance costs down, while the strong bodyshell and extensive passive safety systems mean occupants are well protected.

Cutting-Edge Technology The Niro arrives just in time to meet the rapidly growing demand for alternatively-fuelled vehicles, which has resulted in sales more than doubling in Europe. Launching into a core sector, Niro is a vital part of Kia’s 2020 target to improve fleetaverage efficiency by 25% compared to 2014 levels.

Its hybrid drivetrain comprises a 1.6-litre direct-injection petrol engine and 32kW electric motor, each powering the wheels through a six-speed double-clutch transmission.

There’s no range anxiety, and no need to plug in – the compact, and highly-efficient, lithium-ion polymer battery recaptures energy through the motor while decelerating, which can be used to drive the wheels.

In turn, it makes great business sense. Not only does the Niro offer the convenience and comfort of clutchless driving, but it offers reduced maintenance costs, low fuel consumption and tax-conscious CO2 emissions of less than 89g/km.

For more information, visit kia.com/eu/future/kia-niro/ advertisement feature

RISK_Canter_IFW_June16_Layout 1 23/05/2016 12:54 Page 1

FEATURE Risk Management

Electric future for Stuttgart Managing air quality in urban areas by using electric delivery vehicles can bring other risks, as Steve Banner reports. ll new cars acquired by the city of Stuttgart will be A electric from now on, says Fritz Kuhn, the German city’s Lord Mayor. “Sustainable mobility is a key issue for

cities, electric mobility is an important element of it and we’re showing the way,” he states.

Such cars can only be viewed as truly emission-free however if their batteries are re-charged using renewable energy, he stresses. “So we are ensuring that the energy provided by our re-charging stations comes from renewable sources,” he states.

Stuttgart EV trial Electric light trucks have a key role to play in the fleet mix too says Kuhn, and the city is taking four all-electric zeroexhaust-emission Fuso Canter E-Cell 6.0-tonners on trial for 12 months. Like Mercedes-Benz, Fuso is part of the Daimler family.

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Two of the trucks are bodied as tippers and will be used by road repair crews and landscape gardeners. The other two are fitted with box bodies and will be used to transport everything from refuse bins to furniture.

A fifth E-Cell will be operated in Stuttgart on trial with parcels carrier Hermes. It will be deployed on a shuttle service transporting 600 to 700 parcels and packages at a time from a distribution hub on the outskirts into the city centre.

Both trials are being carried out in conjunction with Fuso in a bid to reduce NOx (oxides of nitrogen) and particulate matter (PM) levels in the atmosphere.

“The Canter E-Cell project is part of our long-term climate protection programme under which we intend to systematically halve the CO 2 emissions of our fleet by 2020,” says Dirk Rahn, managing director, operations at Hermes Logistics Group Germany. In the recent past

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Hermes has tested the electric Mercedes Vito E-Cell on delivery routes in Berlin and Hamburg.

Sitting in a bowl surrounded by hills, Stuttgart can at time suffer from poor air quality. As early as April of this year warnings were being issued about excessive dust in the atmosphere and drivers were being encouraged to leave their cars at home and use public transport instead.

The Stuttgart trials succeed a similar exercise carried out by Fuso last year with fleets in Portugal, where Canter is assembled. This time around however the compact electric truck will be operating in a hilly city further to the north and subject to chillier winter temperatures.

batteries installed in the diesel-electric Canter Eco Hybrid that is already in production are warranted for 10 years.

The E-Cell chassis cab tips the scales at 2,990kg. Fit a box body and the weight would increase to 3,530kg leaving a gross payload capacity of 2,470kg.

E-Cell accelerates smoothly and runs quietly which gives it a key advantage if deliveries have to be made late at night when householders in the vicinity will be asleep. The lack of noise from a diesel engine has not resulted in other potential sources of noise on the vehicle – the suspension for example – becoming more apparent.

Alert for pedestrians Cost savings Fuso is confident it will cope and adds that the Portuguese trial has already revealed that E-Cell’s operating costs can be up to 64% lower than those of a diesel truck of equal weight.

“It achieved savings of around €1,000 per 10,000 kms,” says Mark Llistosella, president and chief executive officer of Mitsubishi Fuso Truck and Bus Corporation. The nextgeneration E-Cell that Fuso is already working on promises to be even more cost-effective, he adds.

Fuso admits that the front-end price of E-Cell is likely to be higher than that of a diesel 6.0-tonner when it goes into volume production, probably in two years’ time. By then the price gap between the diesel and electric models may have narrowed, however, because the price of lithium-ion batteries is likely to have fallen further.

“They’ve come down by 25% over the past 12 months alone,” says Llistosella. The next five years could see a further fall of between 20% and 25%, he suggests.

E-Cell’s maximum range between recharges is upwards of 100kms, says Fuso, although this is likely to fall to closer to 70kms in the winter months it admits, as operating conditions become more arduous and the electric in-cab heater is switched on. The lithium-ion batteries can be fully recharged overnight in around six to eight hours but fleets with access to a fast-charge facility should be able to return them to 80% of their capacity within half-an-hour to an hour during the working day.

Being whisper-quiet means however that the truck may be almost on top of pedestrians and cyclists before they are aware of its presence. That is why it is equipped with VSP – Vehicle Sound for Pedestrians.

Press a button at below 15kmh and it generates a buzzing noise that they should be able to hear. However it is not loud enough to cause a disturbance if the driver is dropping off goods at midnight at an industrial unit surrounded by dwellings inhabited by people expecting an undisturbed sleep.

Says Dr Wolfgang Bernhard, Daimler management board member responsible for trucks and buses; “Today’s internal combustion engine is highly-efficient, eco-friendly and above all, clean, and will long remain without a viable alternative so far as long-distance transport is concerned. With urban short-radius distribution the situation is different, and here a switch to electric trucks will be a technical and economic possibility within a few years’ time.”

With some major cities increasingly eager to ban diesel engines from their centres on environmental grounds, E-Cell – which as things stand has precious few competitors – might just point the way.

Battery weight limits payload E-Cell’s four lithium-ion traction battery packs weigh 600kg in total. Mounted either side of the chassis and delivering 48kWh between them, they power a 110kW (150hp) electric motor which uses a single-speed transmission to drive the rear wheels.

Maximum torque is 650Nm with a continuous 400Nm. No decision has as yet been taken as to whether the batteries will be sold with the vehicle or leased separately. Nor has Fuso announced what the warranty on the batteries will be other than to state that the

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IVIEW_JPMesic_IFW_June16_Layout 1 23/05/2016 11:49 Page 1

INTERVIEW Jean-Pierre Mesic, Groupe Renault

Renault looks to Europe for growth Developments in emerging markets are part of Renault’s fleet strategy, as John Kendall finds out.

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enault suffered badly following the 2008 financial crisis with plunging sales and a weak home market.

The company has made a good recovery, helped by some significant new product launches over the past two years, including Clio, Captur, Kadjar, Megane, Talisman and more recently, at the Geneva Show, the new Scenic, which looks set to make an impact in the MPV sector.

With the financial crisis firmly behind it, Renault and Dacia have seen sales across the European Union continue to grow this year. For the January to April period, Renault sales grew 8.0% to 351,694 compared with the same period in 2015. Dacia saw more modest growth with sales up 2.7% to 137,392. Jean-Pierre Mesic is senior vice president corporate sales at Groupe Renault with responsibility for Renault, Dacia and Samsung brands and he explained how the company developed sales in 2015: “We saw an increase last year, led by the European market particularly, with good growth compared with 2014. We had a decrease in Brazil – an important market, but at less than 1 million vehicles per year, with a decrease of 27% and of course Russia, which is also an important market, which suffered a decrease of 50%.

But even with these headwinds, we achieved a record year last year. At a global level we sold 2.8m vehicles and fleet sales represented 33% of Renault global sales, excluding short-term rental.

“Our objective is to develop the fleet business and to make it sustainable in each country is part of our strategy. We kept light CV leadership in Europe and what is interesting is that the second largest country for Renault in fleet is Turkey. In 2014, it was Brazil and in 2015, it was Turkey. We also saw the return of important fleet markets to the top five for Renault in Europe in fleet.”

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European LCV leadership Perhaps not surprisingly, France is Renault’s best performing market for fleet in Europe. “We achieved a great performance in 2015, especially in the LCV segment”, says Mesic. With a 14.9% market share, Renault also retained its market leading position in the European LCV sector for the 18th year. “We were just above Ford and the competition was tough’, says Mesic, “There was a difference of around 2,000 vehicles, but we kept out leadership, which was one of our goals.”

Mesic also notes the growth Renault experienced in the UK, with a limited range. “We had only one important launch in the UK in 2015, which was Kadjar, helped by the residual value forecasts, which were above our expectations. So I think the product is well accepted by the RV editors and by leasing companies which is quite important in the UK.” Mesic is also impressed with Renault’s LCV performance in the UK in 2015, “We made some really important steps in terms of the management of our LCV business and also succeeded with some important customers in the British market.” He explains what the steps taken in managing the LCV business in the UK were, “First we made a specific focus

and when you focus on things, it is easier to manage. It’s a pillar of our performance especially in the UK. Also in terms of marketing we launched some specific campaigns with a strong follow-up of the results in terms of fleet and orders and so on – pure management.” Renault also saw high demand for LCVs in Germany, with France particularly important with around 380,000 LCV registrations, taking around 33% market share.

“The second important market for us in Europe is Spain.

We had good market share in 2015 and we led the fleet market. We also made some important moves in Italy and had a successful launch of the Espace and Talisman and now Megane and Scenic are coming.”

Turkey – a mature fleet market Mesic explained the importance of the fleet market in Turkey: “It’s a major fleet market, especially for passenger cars. Leasing LCVs is not allowed, but for passenger cars it’s a dynamic market with local leasing companies. We sold more than 100,000 fleet vehicles in Turkey last year. You have to be taking part in this segment because the fleet sector is more than 50% of the Turkish market.”

Renault did not launch any new models in Turkey last year, so as Mesic points out, the impact of new models is quite small. Operational leasing is the preferred method of finance and Mesic says that the maturity of the leasing market is comparable to either the UK or France.

Further away from Europe, Mesic describes Brazil as an important part of Renault’s fleet performance. “Last year at a global level, without short term rental, Renault sold 931,000 vehicles in the world in fleet and Brazil’s performance in that is important. Last year that meant 80,000 vehicles.” That was against the backdrop of a steeply declining market in Brazil.

Brazil – weak economy, strong potential For Brazil, Renault sells Dacia models but they carry Renault branding. The range includes Sandero and Duster, while on the LCV side, Master leads the market, it’s the best-selling van in Brazil, says Mesic.

“Brazil is also a mature fleet market,” reckons Mesic, “Leasing is quite important locally, but there is room for improvement. Things are going very fast in this country. The issue is that the financial and economic problems mean the market is not stable and it decreased by more than 25% in 2015. Our market share in Brazil is around 12% in the fleet business. So we are the fourth player in fleet in Brazil and it’s an important pillar of our global performance in fleet.”

Renault has two plants in Russia, one in the Moscow area and the second is the Lada plant at Togliatti – Renault acquired a controlling stake in Avtovaz, the parent company of Lada in 2012. “The brand is focussed on Russia and neighbouring countries”, says Mesic, “We have a strategic plan for Lada in terms of new vehicles which are coming to the market. Lada is the leader in the fleet market in Russia.”

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FLEET FOCUS South Africa

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A slowly developing economy will help South Africa to realise its wider potential, stimulating the automotive sector, reckons John Kendall. outh Africa has produced motor vehicles since the 1920s, mainly through assembly operations for overseas manufacturers and this is the basis of the motor industry in the country today. The Automotive Production and Development Programme (APDP) was established in 2013 to help stimulate the industry and replaced the previous Motor Industry Development Programme (MIDP).

The aim of the APDP is to secure production of some 1.2 million light vehicles annually in South Africa by 2020 and at the same time stimulate the expansion of the supplier base in the country. To achieve this, APDP uses a range of instruments including import duties on imported vehicles and components.

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IMPORT DUTIES This is set at 25% for imported vehicles and 20% for imported components until 2020. There are rebates for some tariffs so their effectiveness at protecting a developing industry has been called into question. There are incentives for locally produced vehicles with further incentives if these are also exported.

It seems to be generally accepted that the target of producing 1.2m vehicles locally by 2020 will not be met and that the industry would need further support beyond 2020 if it is to thrive.

The country itself occupies the southern tip of Africa, bordered by Botswana, Lesotho, Mozambique, Namibia, Swaziland and Zimbabwe, with a coastline approaching 3,000km. South Africa is rich in minerals, metals including gold, uranium and diamonds and also has reserves of natural gas. Almost 80% of the land is used for agriculture with almost 70% permanent pasture, although water is in limited supply and droughts are a feature of the country’s climate.

The population is around 53 million. AIDS remains a problem and takes its toll among all ages as well as reducing average life expectancy, which is around 62 years according to the CIA World Fact Book. Despite the predominance of agriculture in the country, around 65% of the population is urbanised, according to the CIA and the largest urban area is Johannesburg with a population of around 9.3 million.

ECONOMIC GROWTH Economic growth has slowed in recent years, reaching 1.5% in 2014 and 1.4% in 2015 according to the CIA and unemployment, poverty and inequality are among the highest in the world. Unemployment is around 25%, higher amongst young black people.

Unstable power supply is a problem in the country, which is a limiting factor in economic growth. There is a railway network, mostly narrow gauge, while the road network extends to 747,000km but only 21% of it is paved, which will undoubtedly affect the choice of vehicle in the country.

By contrast, the CIA describes the telephone system as the best developed and most modern in Africa, although less than half the population are Internet users.

DECLINING VEHICLE MARKET According to data from the National Association of Automobile Manufacturers of South Africa (NAAMSA), the total new vehicle market in 2015 reached 617,657, down -4.1% compared with 2014. Of this total, cars accounted for 412,550, -6.0% lower than in 2014. Light commercial vehicles accounted for 174,714 new vehicles, a slight 0.5% increase over 2014.

The decline in the vehicle market appears to have increased so far this year. NAAMSA data for January to April YTD shows that the total new vehicle market fell -9.7% compared with 2015 to 184,627, a decrease of 19,844 vehicles. The decline in new car sales is in line with this fall, with YTD sales down -9.6% to 124,475 from 137,649 in 2015.

Light CVs now seem to be following the same path with sales also down -9.6% YTD TO 51,880 from 57,405.

Data for the month of April is not particularly encouraging either, with total new vehicle sales down -15.0% compared with April 2015. New car sales for April were down -14.8% to 26,077 from 30,598, while LCV sales fell back -16.0% compared with April 2015 to 12,192 from 14,514, so the outlook appears uncertain.

Looking at the trends in the South African new car market, sales peaked in 2006, before being affected by the global economic crisis with sales rising to a new, lower peak in 2014, followed by the current decline. It is difficult to get

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FLEET FOCUS_South Africa_IFW_June16 v2_Layout 1 23/05/2016 11:45 Page 3

FLEET FOCUS South Africa

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a full picture of the South African car market because not all sales are reported by manufacturer to NAAMSA. Two importers, Associated Motor Holdings (AMH) and Amalgamated Automobile Distributors (AAD), both part owned by the Imperial Group only report sales by market sector, not manufacturer. AMH imports brands such as Kia and Hyundai, as well as Renault and Mitsubishi, while AAD imports Chinese brands such as Chery.

From available NAAMSA data, it appears that the Volkswagen Group has the largest share of the South African car market, although there is no breakdown available for the individual VW brands, with Toyota the second largest. That opens the possibility that Toyota is the best-selling brand, but that is not certain. Both Toyota and VW offer a range of SUVs and pickup trucks that are likely to prove popular on a road network that is largely unpaved. Ford is the third largest with AMH and AAD sales combined exceeding Ford, suggesting reasonable volumes for Kia and Hyundai. Mercedes-Benz appears to be the largest premium brand, while other brands include GM/Isuzu Trucks, Nissan, BMW, Renault, Mazda, Honda, Suzuki, Jaguar Land Rover and Chrysler.

Make

Volume

Share %

Volkswagen Group

5,593

21.4

Toyota

3,900

15.0

Ford

2,971

11.4

Mercedes-Benz

1,971

7.5

BMW

1,512

5.8

Renault

1,359

5.2

Mazda

1,048

4.0

GM/Isuzu Trucks

942

3.6

Nissan

910

3.5

Honda

605

2.3

DEVELOPING FLEET SECTOR In 2014, Automotive Fleet magazine reported that the corporate fleet market covered an estimated 1.2m vehicles, with approximately half that number under leasing or rental contracts. The report indicated that fleet operators had shifted from looking at vehicle price to considering the total cost of ownership and that risk management was receiving greater attention. South Africa has an historic problem with high levels of road accidents. The report also indicated that the treatment of business travel for tax purposes was under review and might bring a change in how company vehicles would be taxed.

The South African vehicle rental and leasing sector is represented by the South African Vehicle Rental and Leasing Association (SAVRALA). Rental members include international operators such as Avis, Europcar, Hertz and Thrifty, as well as local companies such as Afrirent Fleet Management and Bidvest. Leasing members include Fleet Africa, Liquid Capital, part of the Imperial Group and NedBank/Nedfleet.

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ROAD TOLLING One of the subjects that SAVRALA has been campaigning on for the past few years is the introduction of electronic tolling on some roads. SAVRALA is opposed to e-tolling on the grounds that the costings have been set too high and the end cost to road users would be unrealistically high when many are struggling financially.

The focus of concerns appears to be the Gauteng Freeway Improvement Project (GFIP) on roads around Johannesburg.

E-tolling is currently in operation, but some drivers are refusing to pay their bills because there are allegations of collusion, price fixing and corruption. The disagreement has yet to be resolved, although the Government has introduced an e-tolling discount of 60% for a limited period. The Government’s view is that e-tolling will help to deliver better roads in South Africa.

ROAD SAFETY SAVRALA’s other major campaign concerns the South African Administrative Adjudication of Road Traffic Offences Act (AARTO). This covers the way in which road traffic offences are categorised and the penalties issued. The objective of AARTO was to decriminalise road traffic infringements. In place of criminal offences, AARTO would introduce a penalty points system, similar to that used in the UK. South Africa has some of the highest road accident and fatality records in the world and AARTO was designed to help make South African roads safer.

If a driver collects 12 points under AARTO, his or her licence will be suspended. If no penalties occur over three months, a penalty point will be deducted. If the licence is suspended three times, the licence is permanently removed.

This could obviously have implications for fleet operators who would need to pay particular attention to driver behaviour issues. Although AARTO was passed into South African law in 1998, it seems it is not fully implemented across the entire country and where it has yet to be implemented, there are variations in how traffic law is applied.

Some fines applied under AARTO in the Johannesburg area were deemed to be illegal because the penalty notices had not been served through the South African postal system, a situation that persisted for a number of years. Ultimately, this led to a number of penalties being cancelled in 2015.

IAM_Sweden_IFW_June16 23/05/2016 15:30 Page 1

IAM REPORT Sweden

Driving in Sweden Tips for business drivers from the Institute of Advanced Motorists (IAM). f you are required to drive in Sweden for business, you will be lucky enough to drive in a country with excellent roads, comprehensive signage and polite drivers.

But there are some things that can catch the unwary driver out, so do be aware of the rules of the road in Sweden.

To hire a car in Sweden, you must be at least 20 years old and this age restriction varies by vehicle category. You will need to have held a full licence for two years; drivers under the age of 25 may incur a surcharge. And don’t leave your important documents back in the hotel; drivers are required to carry a valid driver’s licence, registration documents and insurance documents at all times.

I

Dipped headlights Typical of Scandinavian countries, dipped headlights must be used during daylight hours – no matter how sunny it is.

And be aware the rules change in winter too. From 1 December to 31 March, Swedish registered cars in use are required by law to be fitted with either studded tyres or unstudded winter friction tyres.

The speed limit for roads outside built-up areas is always 70 km/h unless otherwise indicated. But since 2001 some new signs have been introduced or have been altered to also indicate the limit.

These include: the motorway sign (motorväg), which now also means 110 km/h, the ‘high speed’ road (motortrafikled) sign indicates 90 km/h (or 100 km/h on roads with a cable fence between the lanes), the new ‘start of village’ sign means a limit of 50 km/h is in force and the new ‘end of village’ sign means 70 km/h is the limit when leaving the village.

You should also put a bit of planning into your journeys

if you are covering some distance. For instance Gothenburg and Lidkoping are 132 kms apart and will take you one hour 55 minutes to drive, while Nykoping and Stockholm are 102 kms apart (one hour 20 minutes) – and petrol stations are not generally open 24 hours a day.

Be careful when deciding to park on the street, as Sweden has very expensive fines for parking violations. Most Swedish cities operate on both metered on-street parking and timed ticket machines from 8am to 6pm. And in Gothenburg on-street parking usually takes place on the right side of the road only.

Animals and accidents There are particular hazards that while aren’t unique to Sweden, will possibly take some drivers by surprise. Many countryside accidents involve animals. The major roads normally have fences against wild animals, but smaller roads do not. So you need to look out for deer and moose – they can often be half-a-tonne in weight, so they can do a great deal of damage.

You should steer behind the animal, as it might run forward when scared. In the north you will also have to watch out for herds of reindeer – slow down until all of them have passed.

If your journey starts at dawn or ends at dusk, this is the time many wild animals are moving. If you collide with an animal and it wanders off into the woods wounded, you must mark the spot where it entered the forest and call the police. Hitting an animal is not a crime but not reporting it is. Your car must be fitted with a special paper ribbon for this purpose. The reason for this is to help dogs to find the wounded animal.

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PROFILE_SEAT_IFW_June16_Layout 1 23/05/2016 15:01 Page 1

PROFILE SEAT

Exceeding expectations While other brands in the Volkswagen Group faltered and experienced a downturn in sales, SEAT achieved a third consecutive year of growth in 2015. With a new focus on SUVs and greater independence from the Group, the brand hopes to sustain its success and win over a whole new group of customers‌

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PROFILE_SEAT_IFW_June16_Layout 1 23/05/2016 12:19 Page 2

Manufacturer SEAT Total sales 2015 400,037 Headquarters Martorell, Spain Global market share 0.6% No. of models 6

view from the top

Leon stays on top EAT closed 2015 with more than 400,000 vehicles sold, representing the brand’s best result in eight years and a 25% uplift in sales since 2012. The brand’s success is all the more impressive given the uncertainty surrounding the Volkswagen Group following the emissions scandal, and a channelling of company energies into restructuring. A strong product range coupled with the fact that, for many people, the SEAT name is not immediately associated with the Group helped shield the brand from the fallout, however, and to maintain a positive image during a difficult year for Volkswagen.

SEAT experienced a surge in sales in the home market of Spain (+14.3%) and Italy (+22.1%) in 2015, alongside the fifth consecutive year of growth in Germany (+3.8%) and a strong performance in the Mexican market (+13.2%), which is the fourth largest for the brand. In addition, SEAT achieved a number of best-ever results in small but growing markets including Switzerland (+5.7%), the Czech Republic (+16.6%), Denmark (+4.3%), Turkey (+15.3%), Israel (23.3%), Tunisia (+10%) and Morocco (+18.1%).

Leon was, once again, the brand’s top-selling car with 160,900 units sold, an increase of 4.4% over 2014. The sales increase, in addition to the success of the SEAT-built Audi Q3, boosted production at the flagship Martorell plant by 7.8% (total: 477,077 cars), reaching the highest figure since 2001. Martorell, near Barcelona, is the largest in Spain, with production increasing 60% between 2009 and 2015 to cope with demand.

Refreshed Alhambra launched to major markets in May 2015, contributing to a sales uplift of 17.2% over 2014 to 27,000 units sold. Ibiza also made progress following a mid-year refresh, with a 2.4% growth, amounting to a total of 153,600 deliveries. The brand also reported positive sales of Toledo (+14.1%) to 18,375 units.

Sales of Mii city car, however, dropped by 5.5% to 24,291, while the Altea and Altea XL MPV ranges were discontinued last August, declining by 33.3% to 12,385 units.

These will make way for a new family of SUV models.

SEAT delivered a total of 74,134 units in the fleets and leasing (true fleet) channel in 2015, which represented an improvement of 11% compared with the previous year. The most notable gains were in Mexico (+128%), Belgium (+38%) and Italy (+21%), including the delivery of an initial 1,000 vehicles to the Polizia and the Carabinieri in July. The vehicles are based on a five-door Leon, with specialist modifications including an armoured grille against small firearms and a ‘prisoner cell’ installed in the back seats. The contract includes the option for up to 4,000 vehicles over three years.

In 2014, the Dealer Fleet Programme was launched in the EU5 countries (Germany, Spain, France, Italy and United Kingdom), specialising in fleets and dedicated to the dealership network. The programme’s success gave rise to its expansion in 2015 to other countries such as Portugal, The Netherlands, Sweden, Austria and Switzerland. It now has a total of 200 specialised dealerships, whose goal is to provide the best service to SMEs.

S

SEAT Global sales, by country Country Spain Italy Germany Mexico Turkey Total

2014 67,540 13,022 84,586 21,290 12,069 390,661

2015 77,200 15,900 87,800 24,100 13,891 400,037

% change +14.3% +22.1% +3.8% +13.2% +15.1% +2.4%

Luca De Meo, chairman of the executive committee of SEAT, S.A, on cultural shifts and the success of Leon.

With the Group restructured following the emissions scandal, how has SEAT changed?

After a period of strong centralisation, the wish of the board of management is to give to the brands a little bit more independence and to reinforce them. Obviously this for me it’s a big opportunity – I like to create things and be different – but it’s a responsibility too, and sometimes it’s comfortable to stay in the line.

This is the cultural change that I’m trying to evoke. We have to do things that can make SEAT more unique because, to be completely blunt, the answer to the question “What is the purpose of SEAT?” hasn’t found a completely compelling answer.

That’s what we’re working on and we’re convinced now we can 100% give the answer.

How much has Leon transformed SEAT’s brand identity?

The good thing about the Leon project is that SEAT was able to successfully position a car in the most competitive segment in Europe. To sell 160,000 cars from scratch is an achievement.

We also increased the centre of gravity in terms of average transaction price. We were a brand selling cars for €15,000, now we have moved above €20,000. We’re going to consolidate our position in that price range and defend our position in the range below.

How will launch of Ateca build on this?

From a brand position point of view, when we do a car like Ateca we are moving a bit more in the centre of the room. We were in the corner that very exaggerated sports, boy racer positioning put us in the corner, now we’re trying to be more relevant to a bigger audience.

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PROFILE_SEAT_IFW_June16_Layout 1 23/05/2016 12:20 Page 3

PROFILE SEAT

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Where are they made?

4 3 2

1

Manufacturing plant locations 1

FIN fleet in numbers

three The number of SEAT’s diesel engines affected by the emissions scandal: EA 189 1.2 litre, 1.6 litre and 2.0 litre.

€100m Projected savings from SEAT’s LEAP efficiency programme, including streamlined manufacturing processes.

92g/km CO2 emissions of Ibiza with 1.2 TDI Ecomotive 75PS engine.

34 / internationalfleetworld.com

Europe VW Bratislava, Bratislava Region, Slovakia – SEAT Mii

2

Martorell plant, Catalonia, Spain – SEAT Ibiza, SEAT Leon, SEAT Exeo, SEAT Ateca

3

Palmela AutoEuropa, Palmela, Portugal – SEAT Alhambra

4

Solomonovo plant, Solomonovo, Ukraine – SEAT Leon, SEAT Toledo

Development of SUV range t a press conference in October last year, SEAT presented its ‘Roadmap To 2025’ strategy to achieve the goal of “sustainable profitability”. The three pillars of the strategy are: developing models in growing segments with a high profit margin (SUVs); prioritising customer satisfaction and investing in operations in Spain.

At the meeting, the company’s top management also presented the efficiency programme, called LEAP, to be applied over the next two years to protect SEAT’s investment schedule to renew the product line-up and continue to strengthen the brand. In this regard, SEAT will begin to allocate investments to adapt the Martorell plant’s Line 1, where the Ibiza range is produced, to a new, superminisized version of the Leon’s MQB platform.

SEAT unveiled its first SUV at the Geneva Motor Show in March as it branches into the family crossover segment. Due on sale in major markets from September, Ateca (named after a village in northern Spain) is based on the same platform as the Volkswagen Tiguan, and is 4.36m in length with boot space of 485litres for all-wheel drive versions and 510l with two-wheel drive.

Styling is based on Leon, including the triangular headlights and the trapezoidal grille with SUV styling. Technology options run from full-LED headlights through a broad portfolio of assistance systems, such as Traffic Jam Assist and Emergency Assist, to a package of high-end infotainment systems offering an eight-inch touchscreen with Mirrorlink, Apple CarPlay and Android Auto.

The engine line-up will offer a range of turbocharged TSI petrol and TDI diesel engines spanning from 115hp to 190hp, with either front-wheel or all-wheeldrive. From launch, the entry-level petrol engine is the 115hp 1.0 TSI, alongside a 150hp 1.4 TSI, with emissions between 123-141g/km. Diesel engines include a 115hp 1.6 TDI and 150hp, with CO2 figures from 112-131g/km.

Commenting on SEAT’s decision to invest in a new range of SUVs, Luca De Meo, chairman of the executive committee of SEAT, S.A, said: “We have to set priorities, that’s why we put money on the SUVs. We had a decision, do we do an MPV, a successor for the Altea, or do we do an SUV? We looked at how the segment is growing, then we looked at the price premium, and we made the decision, we will not have an MPV we will have an SUV. We are moving to a segment where there is growth and a price premium.”

A

PROFILE_SEAT_IFW_June16_Layout 1 23/05/2016 12:21 Page 4

SEAT fleet model range

Mii

Ibiza

Variants: 3/5dr hatchback Markets: Europe, Asia, Africa Fuel: 4.1-4.6l/100km CO2: 95-106g/km

Variants: 3/5dr hatchback, wagon Markets: Europe, Asia, Africa, North America, South America Fuel: 3.6-6.2l/100km CO2: 93-145g/km

Leon

Toledo

Variants: 3/5dr hatchback, wagon Markets: Europe, Asia, Africa, North America, South America Fuel: 3.6-6.8l/100km CO2: 94-158g/km

Variants: : 5dr hatchback Markets: Europe, Asia, Africa, North America, South America Fuel: 3.8-4.8l/100km CO2: 99-114g/km

Ateca

Alhambra

Variants: Crossover Markets: Europe, Africa, North America, South America Fuel: 4.2-6.2l/100km CO2: 111-143g/km

Variants: : MPV Markets: Europe, Asia Fuel: 5.0-7.3l/100km CO2: 130-168g/km

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ROAD_IFW_E-Class_June16 23/05/2016 12:57 Page 1

Mercedes-Benz E 220 d The new E-Class is head and shoulders above its rivals, reckons Alex Grant.

SECTOR Executive PRICE €47,124–€53,431 FUEL 3.9–4.3l/100km CO2 102–112g/km

hile it’s not uncommon for new launches to reset segment benchmarks, the moments where a newcomer makes its competitors seem a generation behind are rare. But, with the tenth-generation of what’s now the E-Class, Mercedes-Benz has done exactly that. This makes everything else feel dated.

It starts with strong foundations. Beneath shrunken S-Class styling, this is slightly larger than its predecessor but with an even longer wheelbase to increase interior space, while low overhangs and a stiffer body structure have given it more sure-footed handling. Although it’s never traditionally been the driver’s choice, the E-Class is now able to match the agility of a 5 Series while riding effortlessly over poor road surfaces even on large optional wheels.

The cabin borrows heavily from the S-Class, too, particularly with the all-digital dashboard option. This places a large, customisable, tablet-like high-definition display in front of the driver, which flows into the main instrument panel above the centre stack. Plasticky faux wood inserts are the only let down inside, with plush materials, accents keeps the revs low while cruising, it also performs well as an of silver and a choice of 64 ambient lighting hues giving a economy car. Official figures reflect fuel consumption of feeling of high-class luxury.

3.9l/100km with 102g/km CO2 emissions – undercutting its Building on a great chassis and cabin, the predecessor’s diesel-hybrid setup – and E-Class is the first model to get the new all4.5l/100km or less is easy to achieve on long FLEET FACT aluminium 2.0-litre diesel engine, replacing the high-speed runs, where low wind and road gravelly 2.1-litre unit used across most of noise might make you question the need to the brand’s models. It produces 190hp in the move up to the S-Class.

The 29g/km E 220 d, though a 150hp version is on the way, Layered over the basics is some incredibly plug-in hybrid and it’s lighter, significantly quieter and clever technology. This is one of the first cars to is due later configured to meet forthcoming ‘real-world’ be able to manoeuvre in and out of parking this year NOx emissions requirements. Exhaust spaces with nobody at the wheel, controlled via after-treatment systems are close to the engine a smartphone app. It can semi-autonomously to bring them up to operating temperature quickly, and set change lanes, follow other vehicles at up to 210kph, and even up to work over a wider range of conditions. adjust the cruise control based on changing speed limits, Owing in part to the nine-speed automatic gearbox, which braking as smoothly as a human chauffeur as it does so.

Perhaps a more subtle move towards fully autonomous driving, it can also upload and receive information about the road ahead. Essentially it’s contributing to and utilising crowd-sourced data showing how traffic is moving, which means it can pre-warn about what’s around the next corner long before driver or machine can ‘see’ the problem ahead.

But the technology isn’t seamless. BMW’s iDrive system is still easier to operate than the combination of touchpad and rotary commander in the latest Mercedes-Benz models, and reducing physical buttons means there’s no way to change tracks or radio stations without displaying media functions on one of the screens. However, the live traffic information is very accurate, even pre-warning about tailbacks, and the voice controls work very well.

Overall, the E-Class joins this segment not only as a benchmark but as a generational shift forward. It’s more luxurious than ever, but also rich in useful technology and a more enjoyable car to drive. Mercedes-Benz is setting a high standard but, with the next 5 Series en route, its advantage could be short-lived.

W

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ROAD_IFW_E-Class_June16 23/05/2016 12:59 Page 2

what we think highlights Quieter new 190hp 2.0-litre diesel engine, 150hp version to follow All-digital dashboard and benchmark cabin quality Autonomous functions including unmanned park assist

Quiet, competent and brimming with clever features, the E-Class is the perfect companion for a longdistance business traveller. But with impressive real-world economy available from the excellent new four-cylinder diesel, don’t be too easily swayed by tax advantages for the forthcoming plug-in hybrid version.

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ROAD_IFW_Daily_Focus RS_June16_Layout 1 23/05/2016 12:56 Page 1

Iveco Daily Iveco’s Euro 6 Daily range seems better than ever, reckons John Kendall.

SECTOR Light truck PRICE TBA FUEL n/a CO2 n/a

synthetic oils, while Iveco says that SMR costs can be cut by he march of the Iveco Daily continues with the launch a further 10% for those choosing the Hi-Matic transmission. of the latest version, bringing a number of revisions to The Daily Business Up App makes a range of telematics the model launched in 2014. While the latest revisions information available via smartphone or tablet. All Dailys will are concerned with launching the Euro 6 engine line-up, the need is the new DAB radio that links with Business Up. With company has introduced some fairly significant alterations. it, drivers can see a real-time assessment of their driving style.

Iveco claims reductions of up to 8% for fuel consumption, For manual transmission models, gear selection is also compared with Euro 5 models and reductions of up to 12% recorded. The app can offer extra information not shown on in maintenance and repair costs. In-cab noise is said to have the vehicle dashboard. Business Up also includes an interacbeen lowered by 4dB. tive User Handbook with links to pages and a dealer locator.

The Hi-Matic eight-speed ZF automatic transmission is Other functions include radio, music, and a phone manager now available with all variants of the 2.3-litre and 3.0-litre to manage calls and messages. Iveco has four cylinder engine families, except the partnered with Sygic to deliver a fleet 150hp unit. In the short term, customers management package offering tracking, will be able to choose between exhaust navigation and routeing and scheduling after treatment technologies for the with job dispatch. The driver can obtain 2.3-litre engine, but from 2017 all Daily customer signatures on the smart phone engines will be equipped with selective or tablet and all data can be downloaded catalytic reduction (SCR) using the by the fleet manager.

AdBlue urea additive.

Inside the cab, there’s a new leather Iveco has also launched the Daily Busicovered steering wheel, blue seat covers ness Up Mobile App for Android and and textile foam headrests. Up to 18 storApple iOS smart phones and tablets, age compartments are now included. An which offers a useful package of fleet adjustable cradle for smart phones or management and telematics possibilities. tablets is available.

Daily will be available with a new On the road the reduction in noise is 5,100mm wheelbase chassis for 7.0An impressive developimmediately noticeable, making the Daily tonne GVW variants. ment of it's highly capable cab an even more pleasant place to work.

New power ratings replace those for predecessor. Lower noise, I drove a 2.3-litre 140hp version on the the previous models with the 2.3-litre launch with the Hi-Matic transmission, engine offering 120hp, 140hp and 160hp, lower running costs and which would be a real help to drivers on while the 3.0-litre engine comes with the smart new Business multi-drop routes. Our route included 150hp, 180hp and 210hp. In addition Up app look set to win twisting mountain roads and the ZF gearthere will be natural gas and electric new customers. box always picked the right gear even on versions. Service intervals have been steep climbs with hairpin bends. extended up to 50,000km when using

T

what we think

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ROAD_IFW_Daily_Focus RS_June16_Layout 1 23/05/2016 12:56 Page 2

Ford Focus RS Not the average fleet car, but the first Focus RS to go on sale in 42 countries. John Kendall checks it out.

SECTOR Lower Medium PRICE From €30,500 FUEL 7.7l/100km CO2 175g/km

new Focus RS is something to look forward to if Sport is the alternative road setting. Then there are two performance and handling are your top priorities. track settings, either Track or Drift mode which automatFord launched the third generation model earlier ically transfers torque to the outside wheel when cornerthis year and, for the first time, it will go on sale in North ing to induce drift, then switches it to the inside wheel to America and China, so customers there can find out for maintain the slide. themselves what all the fuss has been about. It's not a car There is much more that could be written about the car for everyone, but I shall risk upsetting purists and say that and its systems, but we would run out of space. it is probably the best Focus RS to date.

Compared with the Focus ST, the chassis has been stiffIt's also the first all-wheel-drive Focus RS – its predeened, the suspension has been tightened and the brakes cessors have been front wheel drive, but the challenge of designed to cope with track use. controlling 350hp through the front wheels would have The result is impressive. As you would expect, the car is meant compromising what the revised quick, sprinting to 100km/h in 4.7 chassis can do. seconds from rest on the way to a top CO2 emissions of 175g/km and speed of 266km/h. The Michelin tyres consumption of 7.7l/100km are not the and AWD provide phenomenal levels kind of figures you would expect from a of grip, traction and control. Despite C-segment five-door hatchback for the stiffened suspension and 235/35 fleet drivers, but on a performance per 19-inch tyres, the ride quality is more Euro basis, it is difficult to think of forgiving than I was expecting, partly many cars that could rival the Focus RS because the damping is adaptable. for the money. The starting point was There's also Launch Control, the first the impressive Focus ST, into which RS model to be fitted with it. Switch it Ford has dropped a modified version of on and it will optimise the AWD the turbocharged 2.3-litre four-cylinsystem, power delivery, traction der petrol engine used in the Mustang, control system and dampers. Then you hence the 350hp. The all-wheel-drive can do what road testers have tradiThere are few cars that system uses GKN hardware developed tionally done – rev the engine to high can deliver such performoriginally for the Range Rover Evoque. rpm and slide your foot sideways off ance at such a price. The It can send up to 70% of the drive the clutch. The system is designed to torque to the rear wheels and up to make sure that such brutal behaviour Focus RS is hugely 100% to either the left or right side optimises traction and performance, competent, great fun and through rapid reaction clutches which which it does. It's not something to try you won't mistake it for offer very high levels of control. at traffic lights. the Focus 1.6 diesel.

Ford has also built in four drive And – though perhaps it’s not a key modes. Normal is the default setting and selling point – it still has seats for five.

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what we think

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ACEA_IFW_June16 23/05/2016 11:30 Page 1

fleet in figures

Test results manipulated Another manufacturer comes under the spotlight, this time in Japan, as John Kendall reports.

Mitsubishi In Europe, the Outlander PHEV has proved successful, particularly with fleet customers, but overall European sales are in decline.

he varying fortunes of the dieselpowered car are particularly interesting to those involved in the car market in Europe. The reason is an obvious one – in a part of the world where fuel prices tend to be the highest, fuel efficiency has traditionally been more of an issue in Europe than in North America or other parts of the world. The pressure to reduce CO2 emissions has also played a part, with diesels offering reductions of up to around 25% compared with petrol engines of similar power.

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Another month and another manufacturer in trouble over fuel economy claims, but this time, not apparently because regulators had discovered it.

Mitsubishi announced on 20 April that it had manipulated fuel efficiency data for some Kei Car models – small models manufactured primarily for the Japanese market. TV screens were filled with pictures of contrite Mitsubishi executives making the announcement.

The models affected, the Mitsubishi eK wagon and eK Space are built in a joint venture with Nissan – MNKV and

Mitsubishi produces Nissan variants – the DAYZ and DAYZ Roox. It seems it was Nissan that discovered the fuel economy data manipulation.

LMC Automotive made this observation, “This is not, of course, the first time Mitsubishi finds itself in a position where it has been found to be misrepresenting key vehicle information. The carmaker deliberately avoided reporting vehicles for recall on safety grounds in 2000 and 2004 – alongside major reputational and financial damage, this resulted in a loss of market share, especially in the Japanese

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market. After the recall problem in 2000 and 2004, the carmaker had tried to rebuild to its former sales level. But this has not proved possible. The emergence of another scandal, in the context of the earlier events, implies that the impact will be high.”

Mitsubishi Japan sales falling To illustrate the point, LMC provided a sales graph for Mitsubishi in Japan, showing that sales had fallen from a high of around 410,000 units in 1998 to around 130,000 units in 2010.

Mitsubishi is a comparatively small motor manufacturer – Mitsubishi Fuso, the commercial vehicle division is now a Daimler subsidiary.

LMC further commented that the authorities in Japan suspect that other models may be affected and that Mitsubishi admits that misreporting of fuel economy data has been taking place for over 20 years. LMC also suggested that Nissan would have to be compensated and perhaps customers too.

It is a serious situation for a small manufacturer, offering the potential to leave it in grave financial difficulties.

Nissan has not been slow to react.

Nissan takes Mitsubishi stake On 12 May the company announced that it had taken a 34% equity stake in Mitsubishi Motors Corporation for 237 billion Yen (€1.92bn), following an MMC share issue. According to Nissan; “Under the terms of the transaction, Nissan will purchase 506.6 million newly-issued MMC shares at a price of ¥468.52 (€3.81) per share. The price per share reflects the volume weighted average price over the period between 21 April

2016 and including 11 May 2016. Nissan will become the largest shareholder of MMC on closing.” In other words it’s a neat move from Nissan, making it the largest single shareholder in Mitsubishi, alongside Mitsubishi Heavy Industries, Mitsubishi Corporation and the Bank of Tokyo. The MMC share price on 19 April stood at ¥849 (€6.91) Nissan must be satisfied that the extent of revelations is likely to be limited.

The move also enables Nissan and alliance partner Renault to tap into MMC’s resources on EVs and battery technology, which might be beneficial. An alternative view might be that it allows for an orderly winding down of MMC, with Nissan in a position to acquire the parts of the business that it wants for a preferential price. We shall see.

It is too soon to assess the impact of the case on Mitsubishi sales. In Europe, the Outlander PHEV has proved spectacularly successful, particularly with fleet customers, but overall European sales are in decline. According to data from the European Automobile Manufacturers Association (ACEA), Mitsubishi registrations declined by 7.3% in April compared with April 2015 to 9,513 from 10,264. This appears to be a longer term issue as data for the January to April period shows a decline of -7.2% compared with 2015 with sales falling back to 39,754 from 42,818.

Western European sales Overall the market in the European Union notched up its 32nd consecutive month of growth in April. Registrations grew by 9.1% compared with April 2015 to 1,273,733. According to ACEA, this is the highest volume since April 2008,

months before the economic crisis hit.

Spain recorded the highest monthly percentage increase with 21.2%, Italy gaining by 11.5%, followed by Germany (8.4%), France (7.1%) and the UK (2.0%). UK demand would have been depressed following March when the country has a licence plate change, which always drives demand upwards for vehicles with the latest registration plate.

For the January to April (YtD) period, EU registrations rose by 8.5% compared with 2015 to 5,094,026.

Germany is the strongest market, with YtD registrations up 5.6% to 1,107,345, with the UK the second largest market with 961,285 registrations, up 4.4% on 2015. France is the third largest with 699,245 registrations, up 7.9% on 2015. Among the larger markets, Italy is registering the highest growth, with registrations up 18.6% to 687,021.

JATO Dynamics attributes 24.9% or European registrations YtD to SUVs. Volkswagen has retained its dominance of the market, with VW the most successful brand YtD with registrations growing 0.4% to 572,654. Ford is the second largest with registrations growing 6.8% YtD compared with 2015 to 369,045. Renault is the third largest with registrations up 8% YtD to 351,964. Opel/Vauxhall took fourth place with registrations up 10.2% YtD to 346,227. Peugeot took fifth place with registrations up 6.3% to 308,896.

Jaguar recorded the largest percentage gain YtD with registrations rising 110.4% to 19,557. Honda registrations rose 32.6%, reaching 58,686, while Mazda posted a 28.9% gain to 80,191.

JATO has analysed the best selling models in the five largest European

EVs on the rise Total electric vehicle registrations continue to post large gains with Norway recording high registrations at 10,931, up 34.7% on Q1 2015.

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markets: France, Germany, Italy, Spain and the UK and the Volkswagen Golf remained the best selling car in April with 34,300 registrations, a 1% gain on April 2015. By contrast the VW Polo, in second place climbed 16% to 21,600.

Despite a 9% drop in registrations compared with April 2015, the Renault Clio claimed third place with 20,600 registrations, followed by the Ford Fiesta, which dropped 17% to 18,100 registrations, while the fifth placed Peugeot 208 rose 17% to 17,900 registrations. The Audi A4, benefitting from the introduction of a new model saw the biggest percentage rise with April registrations up 56% compared April 2015 to 11,600. Among others, Renault Captur registrations were up 19% to 14,500 and the Opel/Vauxhall Astra up 17% to 13,300.

LMC shows a decline in diesel car sales across Western Europe with diesel still taking a 50.1% share YtD in Western Europe, down from 52.3% YtD in 2015.

That said, LMC’s data shows that Western European diesel car sales YtD have risen 3% to 2,440,600.

EU Alternative Fuel Vehicles ACEA has published data for Alternative Fuel Vehicle registrations for the January to March (Q1) period. Overall registrations continued to rise by 6.4% compared with Q1 2015 to 154,795. Generally, the increases have been among battery

electric and hybrid models. Natural gas and liquefied petroleum gas registrations continue to decline with numbers down -22.4% compared with Q1 2015 to 49,535. Only Belgium Denmark and Portugal have posted increases, but the numbers are small.

Total electric vehicle registrations continue to post large gains, with data including battery electric (BEV), extended range, fuel cell electric vehicle (FCEV) and plug-in hybrid vehicles (PHEV). Overall EU registrations rose by 26.8% in Q1 compared with 2015 to 35,730. The UK is the largest market, with 10,639 registrations, up 22.7% on Q1 2015, although Norway, outside the EU recorded higher registrations at 10,931, up 34.7% on Q1 2015. In the EU, France was the second largest market with 8,117 registrations, up 117.2% on Q1 2015. Among the European ‘Big Five’ countries, Spain recorded the highest percentage increase with registrations rising 215.6% to 811 in Q1.

Hybrids (including mild hybrids) still account for the largest element of EV registrations in the EU, with 69,530 in total, up 30.1% on Q1 2015. The UK again leads the market with 15,075 registrations, up 30.1% on Q1 2015.

Plug-In Hybrid registrations continue to rise with a 23.5% increase across the EU in Q1 to 18,661. The UK also leads the way here with 7,031 registrations, up 27.7% on Q1 2015.

North America Light vehicle sales in North America also remain buoyant, with light truck sales continuing to forge ahead. Carlos Gomes at Scotiabank notes that, “Sales of luxury crossover utilities rocketed ahead nearly 20% above a year ago, with notable strength in the larger luxury segment.”

Gomes believes that low fuel prices and rising incomes are responsible.

He also notes that there is some concern amongst analysts that residual values are under pressure, “Investors and many analysts believe that the slide in used car prices below a year earlier in recent months will accelerate as the number of vehicles coming off-lease increases by roughly 500,000 per year through 2018.

They suggest that the downside pressure on pre-owned vehicle prices will spread to the new vehicle market and potentially lead to a replay of 2008. At that time, residual values plunged in response to a rising supply of used vehicles, significant weakening in overall vehicle demand and tightening credit conditions. However, we believe that these fears are overstated. It is not unusual for used car prices to weaken temporarily in response to increased supplies. In fact, this has occurred several times over the past three years without any impact on the overall U.S. auto market.” Gomes points to strengthening demand for both new and used cars; with new car prices climbing to record high levels this year.

Jaguar Jaguar recorded the largest percentage gain YtD, in Western Europe, with registrations rising 110.4% to 19,557.

42 / internationalfleetworld.com

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