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FLEETW RLD All that matters in the world of fleet
June /July 2018
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INTERNATIONAL
FLEETW RLD All that matters in the world of fleet
June /July 2018
contents
The new A-Class with
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internationalfleetworld.com
Chairman Jerry Ramsdale jerry@fleetworldgroup.co.uk
20 SPOTLIGHT: New Lexus ES.
22 FEATURE: Centralised fleet agreements.
30 PROFILE: Jaguar Land Rover.
38 DRIVEN: Mercedes-Benz A-Class.
Editor John Challen john@fleetworldgroup.co.uk Deputy Editor Alex Grant alex@fleetworldgroup.co.uk Business Editor Natalie Middleton natalie@fleetworldgroup.co.uk Content Editor Jonathan Musk jonathan@fleetworldgroup.co.uk Account Directors Claire Warman claire@fleetworldgroup.co.uk Harry Whyte harry@fleetworldgroup.co.uk Yvonne Wright yvonne@fleetworldgroup.co.uk Circulation Tracy Howell tracy@fleetworldgroup.co.uk Head of Production Luke Wikner luke@fleetworldgroup.co.uk Designers Tina Ries tina@fleetworldgroup.co.uk Dan Bennett dan.bennett@fleetworldgroup.co.uk Web Designer Dan Desta daniel@fleetworldgroup.co.uk
04 Fleet Review Editor John Challen on the increasing number of diesel ditchers. 06 Fleet in figures Breaking down the latest global vehicle sales by region. 08 News The biggest stories from the international fleet community. 12 Environmental News Updates from the electrified vehicle fleet market. 16 Report How leasing industry growth has created a positive outlook for fleet. 18 Analysis The residual values of PSA’s latest model – the new DS 7 Sportback. 20 Spotlight Lexus offers the ES sedan in Europe for the first time – IFW tells all.
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
22 Management The benefits of centralised fleet management agreements. 26 Fleet Focus Australia: the changing face of the country’s automotive industry. 30 Profile Jaguar Land Rover: how JLR is undergoing unprecedented change... 34 Events NAFA 2018: what to expect from the industry in the next 12 months. 36 Driven Ford Kuga / Jaguar I-Pace / Kia Stinger / Mercedes-Benz A-Class /
To subscribe to International Fleet World visit: www.fleetworldsubscriptions.co.uk
Renault Captur / Volkswagen Touareg.
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fleet review This month, editor John Challen considers the departure from diesel, virtual reality and the importance of getting behind the wheel...
Ditching diesel
A very different reality
It’s becoming increasingly likely that fleets of the (not so distant) future will be diesel-free – in many parts of the world, at least. Honda, Toyota, Volvo and – most recently – FCA Group are just some of the major manufacturers who have signalled their intention to run their cars with petrol internal combustion engines only – alongside a range of alternative powertrains, from mild hybrid, through full electric to hydrogen. But is it a good thing? Certainly not for Bosch, the supplier of automotive components – including diesel injection systems. Its latest technological breakthrough claims to cut NOx emissions by up to 90% – but it might all be too late. The world is moving in an eco-friendly direction and while for many, the well-to-wheel analysis of EVs versus ICE-powered vehicles continues to be debated, car manufacturers are embracing the new age of electric power. Figures from the UK claim that 53,000 ultralow emission vehicles were registered in 2017 and with the EV infrastructure – and model numbers – growing, it is difficult to see things changing any time soon. But history teaches us that often fashions come back into, er, fashion. We’ve previously had bandwagon jumping with electric vehicles decades ago as well as surges in LNG and CNG automotive applications, so don’t rule out the ‘rise of the oil-burner’ at some point in the future.
The image of a man travelling by bus while wearing a virtual reality headset recently got me thinking about how we are living our lives, what classes as entertainment and how we are getting our information – of all forms. It made me consider the carbuying process and how much it has changed over time, including the ability to now become more knowledgeable about a car than a dealer by researching it online and to put on a VR headset and take a virtual look around a car’s interior. Time is precious, so it’s understandable that multiple trips to a car showroom are not a tempting way to spend a weekend. Coupled with that, many people are not fussed with how a car drives – they will be swayed by a brand, the options list or even the colour. With these situations in mind, it was encouraging to see an enthusiastic set of visitors to the recent Fleet Show at Silverstone. Not only was there the opportunity to get up close with potential new daily drivers, there was also a chance to take them out on the track to really experience them. That sensation is something that no headset or computer is going to give you.
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Honda, Toyota, Volvo and FCA Group have signalled their intention to phase out diesel engines
Wagon, Fastback, Hatchback, N
Hyundai i30 Range. All taken care of. Style. Performance. Safety. Space. Whatever it is you care about, the i30 Range has it all taken care of. This remarkably efficient range of models delivers a winning mix of headturning good looks and innovative technology. Built to fit your needs, they combine excellent driving dynamics with state-of-the-art connectivity and class-leading safety. And like every Hyundai, the i30 comes with a 5-year Unlimited Mileage Warranty for added peace of mind. Discover more at Hyundai.com/eu
The Hyundai 5-year Unlimited Mileage Warranty applies only to Hyundai vehicles that have been originally sold by an authorised Hyundai dealer to an end customer, as set out in the terms and conditions of the warranty booklet. Fuel consumption for the Hyundai i30 Range: combined 3.7–7.1 l/100 km, CO2 emissions 96–163 g/km.
fleet in figures
Global improvement in April helped by performance of BRIC economies In year-on-year terms, sales were up by almost 6%, while a seasonally adjusted annualised rate of sales of 96.8 million units a year was recorded. By John Challen.
A
pril’s sales of new light vehicles in the US totalled 1,352,342 units, down 4.9% from a year ago with two fewer selling days. This April perfor‐ mance translates into a seasonally adjusted annualised rate (SAAR) of 17.1 million units a year, up 51,000 from a year ago and down 295,000 from last month. The new vehicle negotiated price was up 3.1% YoY, to $35,817, while cash incen‐ tives soared 9.3%, to $1,676. However, that was not enough to stop retail sales falling 8.0%, while fleet sales surged 7.5%. For the second time this year, sales in Canada dropped – this time by 4.2%, to 189,004 light vehicles. This volume translates into a SAAR of 1.84 million units, down 200,000 from last month. Sales in Mexico fell by 5.9%. The 107,257 light vehicles sold in April indicate a SAAR of 1.47 million units a year, up 30k.
Europe West European light vehicle demand held up well in April and the selling rate, at 16.3 million units a year, remains just above April 2017's total of 16.2 million units a year. This slowdown in growth is increas‐ ingly evident as the market approaches a stable level, now that a number of markets are peaking and recovery in others – such as Spain and Italy – is reaching a point from which they can no longer produce strong expansion. A small full‐year gain in the 1‐2% range is assumed for 2018 in total. The expansion in Russia remains on track, following an 18% increase in April, though the selling rate has cooled to 1.8 million units a year after an even stronger start to the year. Steady, though somewhat less robust, gains were also
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evident in other Central and East Euro‐ pean markets which, when combined, should close in on three million units for 2018 in total.
China The Chinese market regained momentum in April. After sluggish wholesales in Q1, deliveries to dealerships surged strongly, with the April selling rate exceeding 30 million units a year for the first time since October. The year‐to‐date average selling rate was 28.9 million units a year, compared with last year’s total light vehi‐ cle sales of 28.6 million units – not a bad result, given that the temporary purchase tax cut expired in December. On a year‐on‐year basis, wholesales increased by 10% in April and 4% so far this year. However, the 30 million units a year rate may not be sustainable, since the economic outlook is increasingly uncertain. Economic and vehicle sales growth could be constrained by a number of issues, such as trade tensions with the US, rising global oil prices and the recent sharp appreciation of the yuan.
Other Asia After a lacklustre Q1, sales in Japan increased strongly in April, led by robust passenger vehicle sales. The April selling rate was just below 5.6 million units a year, up nearly 13% from a sluggish March. The negative impact of the scandals at Nissan and Subaru has subsided. In addition, the tight job market and rising wages are supporting demand. Nonetheless, sales still declined by 1.3% in the year to date (year on year) after a 5% gain last year. While the geopolitical tensions with the
North continue to ease, the selling rate in South Korea accelerated to a robust 1.88 million units a year in April. On a year‐ on‐year basis, sales increased by nearly 5% in April and 1.1% so far this year. The near‐ 1.9 million units a year rate is, however, unlikely to be sustainable, given that the country’s large manufacturing and export sectors have started to lose steam.
South America In Brazil, the selling rate surged strongly to a three‐year high of 2.7 million units a year in April (due, partially, to the timing of Easter). On a year‐on‐year basis, sales increased by a robust 37% in April and 20% in the first four months of this year. April’s sales pace is, however, unlikely to be sustained, as the economic recovery is losing momentum and the unemploy‐ ment rate is rising again. In Argentina, sales increased by nearly 18% year‐on‐year in the first four months of this year, boosted by the tax cut on vehi‐ cles that went into effect on 1 January. However, the selling rate slowed to just above 900,000 units a year in April from one million units a year in January. The ongoing currency crisis and massive interest rate hikes are expected to slow sales further in the coming months. The selling rate reached a three-year high in Brazil in April
Going Electric: a how-to guide Today the facts point to driving electric. Range is now a non-issue and charging infrastructure continues to expand rapidly. Electric vehicles (EVs) are a smart choice for today’s fleets – when implemented with the right partner. From less environmental impact to cost savings, nearly every company stands to benefit from electrifying its corporate fleet. Yet many have to “go electric” because they are uncertain how, or where, to start. AlphaElectric, the eMobility product from innovative Business Mobility provider Alphabet, enables businesses to seamlessly bring the advantages of EVs to their enterprises.
Customisation counts The product stands out for its flexibility and high level of customisation. Instead a one-size-fits-all offer or set packages to choose from, each AlphaElectric solution is tailor-made to suit a company’s driving needs. Using Alphabet’s proprietary Mobility Consulting Tool (MCT), Alphabet experts conduct an Electrification Potential Analysis (EPA), the basis for each client’s unique eMobility solution.
How it works The EPA and MCT make corporate eMobility easy, transparent and in line with each business’ needs. Developed as part of Alphabet’s signature consulting approach, the EPA pinpoints how a client can optimally swap out combustion cars for EVs, in its current company fleet. Alphabet then provides an end-to-end solution consisting of EVs and plug-in hybrids (PHEVs) as well as the relevant charging infrastructure and on-top mobility services. This bespoke solution, along with Alphabet’s guidance in navigating the complex eMobility landscape, empowers businesses to adopt EVs. Alphabet’s approach is so effective because the EPA is based on real client data. Removable loggers are temporarily fitted in fleet vehicles to record metrics such as speed, distance travelled, acceleration and parking behaviour. These insights flow into a unique fleet driving profile, which the MCT uses to determine the best-fit, future-oriented Business Mobility product. After the consultation phase, Alphabet provides tailor-made services to ensure EVs and charging infrastructure are seamlessly implemented in a client’s fleet.
More at www.alphabet.com/en-ww/alphaelectric advertisment feaure
The EPA and MCT can also be employed to help enterprises to meet their environmental targets while continuing to grow their business. AlphaElectric gives every business access to the right forward-thinking, sustainable eMobility solution.
manufacturer news
FCA calls time on diesel engines iat Chrysler Automobiles has F become the latest carmaker to announce plans to stop selling diesels, citing a harsh regulatory environment related to emissions. Announced during the group’s Capital Markets Day event, the plans will involve an investment of more than €9bn in hybrid and fully electric drivetrains and 30 new electrified models by 2022. From 2021, diesel engines will only be offered in its commercial vehicle range, though all except the Doblo are supplied through
partnerships with other manufacturers. Plug‐ins will be distributed across its separate brands as the group fills ‘white spaces’ in its product offer – from Europe’s first electric Fiat 500, to Tesla‐baiting, long‐range, high‐perfor‐ mance electric Maseratis, including the Quattroporte luxury saloon, Levante SUV, and forthcoming Alfieri two‐ seater sports car. Alfa Romeo will cut the Mito super‐ mini from its line‐up, introducing a new Giulietta hatchback and equivalent SUV,
BMW reveals new X5 SUV
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MW’s fourth‐generation X5 will launch globally from this summer as it ups the ante against rivals such as the Audi Q7 and Volvo XC90. Longer, wider and higher than its predecessor, the newcomer launches ahead of BMW’s new flagship X7 SUV and will be offered in a choice of off‐road styled xLine and the typically more popular M Sport trim levels. From launch, the European range will include three engines. The xDrive40i is the only petrol version, returning 8.5l/100km and offering CO2 emissions from 193g/km, while diesels comprise the likely best‐selling xDrive30d (6.0l/100km, 158g/km) and the M50d (6.8l/100km, 179g/km). All feature an eight‐speed automatic gearbox, and four‐wheel drive. Both diesel engines are fitted with selective catalytic reduc‐ tion (AdBlue injection), while the petrol unit features a particulate filter, meeting the latest Euro 6d Temp emissions standard. BMW said last year that it had copyrighted the iX5 badge, hint‐ ing that a plug‐in hybrid or fully electric version is also en route – as in the smaller X3.
Citroën C5 Aircross
C
itroën is bringing the fight to models such as the Nissan Qashqai with the reveal of the European version of its flagship C5 Aircross five‐seat SUV. Based on PSA’s EMP2 platform, the new C5 Aircross will launch in Europe at the end of 2018 and will be the first Citroën with a plug‐in hybrid powertrain at the end of 2019. Comfort is a key focus helped by its Advanced Comfort programme, Progressive Hydraulic Cushions suspension – which is said to deliver a ‘magic carpet ride’ effect – and Advanced Comfort seats; unique to Europe. It also brings practicality through three individual sliding, folding and reclin‐ ing rear seats – also unique to Europe – and claimed best‐in‐class boot space. Engines will cover petrol and diesel units from 130hp to 180hp and offering Citroën’s new EAT8 automatic gearbox. The PHEV version will bring a range of 60km in zero‐emission mode.
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as well as a flagship SUV positioned above the Stelvio. Plug‐ins will be offered throughout the range, including a new 8C supercar and GTV Coupe. Likewise, Jeep will replace diesel with fully electric technology in the Rene‐ gade, Compass and Cherokee segments, while extending the line‐up to include seven‐seaters, a pickup truck and a model positioned under the Renegade. Plug‐in hybrids will be offered across the range, though it’s not clear yet which models will come to Europe.
Tighter limits for WLTP and RDE tests
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U Member States have voted in favour of tighter limits for cars and vans tested under the latest WLTP and RDE fuel consumption and emissions testing, due to come into force from 1 January 2019. RDE, which is an on‐road test to compare in‐use NOx emissions with results obtained in the laboratory, is being introduced in stages. The first has a ‘conformity factor’ allowing vehicles to emit 2.1 times more NOx on the road than in the laboratory and is already in place, though not mandatory until September 2019. From January 2020, RDE2 will bring the conformity factor down to 1.5 times the laboratory results, with the ambition to reach parity by 2023. Under the 4th RDE Act, which was voted for in May, type approval authori‐ ties will be required to check not only the performance of new vehicles, but to carry out ongoing annual monitoring of cars and vans on the road to ensure they still comply. Member States also voted to tighten the forthcoming 1.5x conformity factor down to 1.43x. The 2nd WLTP Act proposes tightening the tolerances for adapting the evaporative emission procedure to the new test cycle. From 2021, this will also mandate stan‐ dardised, easily accessible information about fuel or energy consumption to enable consumers to compare laboratory results with what they are achieving on the road.
For the latest news, visit internationalfleetworld.com
A-Class Saloon to launch late 2018
M
ercedes‐Benz is to launch the first‐ever A‐Class Saloon later this year, as part of plans to extend its popular small car line‐up from five vari‐ ants to eight. The A‐Class Saloon made its global debut at the Auto China motor show in Beijing last month, as a version tailored towards the local market and built by joint venture partner BAIC Motor. This featured a 6cm longer wheelbase than the new A‐Class hatchback, in line with Chinese‐market demands. Mercedes‐Benz said a version tailored to global markets would be unveiled and launched later this year, likely to be on the same, shorter wheelbase as the hatchback. This would give the A‐Class a rival product for the A3 Saloon, partic‐ ularly important for regions such as North America, but also relevant to Europe.
Audi Q8 brings fight to BMW X6
in brief New role for Cole at Kia Kia Motors Europe’s chief operating of icer Michael Cole is moving to the role of COO and executive vice president at Kia Motors America. Cole will serve as the central point of contact for all sales, marketing, service and corporate and product planning functions.
Europcar rebrands Europcar Group has rebranded with a new name and identity to re lect its transformation into a mobility provider. Caroline Parot, CEO of the newly renamed Europcar Mobility Group, commented: “We want to be the preferred ‘Mobility Service Company’ by offering attractive alter‐ native solutions to vehicle ownership.”
udi has unveiled its Q8 coupe‐cum‐SUV, bringing a flagship to its Q range to rival models such as the BMW X6, Range Rover Sport and A Mercedes‐Benz GLE.
BP invests in fast battery startup
Based on the Q8 Sport concept shown at the 2017 Geneva Motor Show, the Q8 uses the same platform as the Q7 but is wider, shorter and lower than its sister model – giving it a more aggressive stance – and only comes with five seats. Launching this summer in Europe, the Q8 will be offered with just one engine at first – a six‐cylinder 286hp 3.0 TDI with a 48V mild hybrid system that provides a coasting function, married up to quattro all‐wheel drive. The engine is capable of 100kph in 6.3 seconds and a 232kph top speed. A smaller 231hp 3.0‐litre diesel and a 340hp 3.0‐litre TFSI petrol will follow early next year. Depending on the market, the Q8 gets standard adaptive air suspension sport with a sport setup. It can be adjusted to four modes with the Audi drive select dynamic handling system, varying the ride height by up to 90mm. All‐wheel steering – which can turn the rear wheels by up to 5 degrees – is available.
An Israeli start‐up that has developed an ultra‐fast charging battery has secured a $20m (€16.9m) investment from BP Ventures. StoreDot is devel‐ oping a new type of electric‐car battery that could charge in the same time as it takes to refuel a car.
LEVC reveals plug-in hybrid electric van
L
EVC, formerly the London Taxi Company, has unveiled its plug‐in hybrid electric van, which launches in 2019 and claims to bring a number of eco and cost‐saving benefits to operators. Using technology also seen in the firm’s TX taxi that launched last year, the new van will not be targeted as a ‘last‐mile delivery’ solution but instead for operations of around 100 miles (160km) a day – currently the role of one‐ tonne medium‐size diesel vans. The new van will draw upon the plug‐in hybrid set‐up in the TX, which uses a 1.5‐litre petrol engine as a range extender alongside a battery and electric powertrain. This gives the TX an electric range of 80 miles (129km), and a combined range of 400 miles (644km) with its small petrol generator. Figures have not been released for the van but LEVC said it would offer a competitive TCO. The firm also said it’s focusing on offering class‐leading safety as stan‐ dard as well as an emphasis on driver comfort and ergonomics.
PSA Group to axe Opel OnStar service PSA Group is pulling the plug on the Opel/Vauxhall OnStar live assistance service in Europe, discontinuing it in new vehicles from January 2019, and closing it altogether at the end of 2020. In a statement, Opel said it would intro‐ duce a new system based on PSA tech‐ nology, named Opel Connect.
EU takes nations to ECJ The UK and ive other countries are being referred to the European Court of Justice over ongoing failures to tackle air pollution. The action applies to failure to respect limit values for nitrogen diox‐ ide (NO2) in France, Germany and the UK and for failing to take appropriate measures to keep exceedance periods as short as possible. Hungary, Italy, and Romania are referred to the Court of Justice over persistently high levels of particulate matter (PM10).
internationalfleetworld.com / 09
The new A-Class with
Original like you. The new A-Class fits to your life – from the sporty design to the intuitive Mercedes-Benz User Experience (MBUX) with Natural Voice Control, innovative touchpad and the new touchscreen. And thanks to the seamless smartphone connectivity, you’re always connected to what matters. The new A-Class. Just like you. www.mercedes-benz.com/a-class
environmental news
More carmakers drop diesel as electric demand grows V
olvo, Nissan and Suzuki are taking steps towards phasing out diesel engines, citing slowing demand and a focus on progressively more electrified drivetrains as an alternative. For Volvo, the new V60 wagon will be the last ever model launching with a diesel engine. The US‐built S60 sedan will get petrol and plug‐in hybrid versions from launch, with ‘mild hybrids’ to follow in 2019. All subse‐ quent models will follow suit, though recent launches are likely to continue offering diesel for most if not all of their lifecycles. The company, which had until recently been heavily diesel‐weighted in Europe, wants 50% of its 2025 sales to be electric. Sister brand, Lynk & Co, will also not offer diesel engines when it comes to Europe in 2020. Nissan, meanwhile, said diesel engines are still in demand in Europe, for the short term. However, it said ongoing electrification would enable the diesel to be discontinued as vehicles are renewed – meaning sales would end by the mid‐2020s. By 2025, it expects half of sales in Europe to be hybrid or electric – it will launch eight EVs in the meantime, including an SUV previewed by the IMx concept car.
Suzuki has already discontinued diesel in the UK, with 97% of cars registered in a record 2016 featuring petrol engines despite quadrupling its fleet volumes to 9,000 units. The company has put its effort into effi‐ cient petrol engines, despite and a growing mild hybrid line‐up, and has further plans to electrify its range over the next few years. Nobuo Suyama, managing director of Suzuki GB, said: “We only have a few units stock left at the dealers, but fiscally diesel is already finished”. The announcements follow ongoing tough condi‐ tions for diesel in Europe, where sales are falling due to negative press coverage, uncertainty around future air quality initiatives and diesel taxation, and improvements to petrol, hybrid and electric drive‐ trains which have narrowed the whole‐life cost gap. Toyota said in March that it would only sell hybrid and petrol passenger cars by 2019, while Honda is drop‐ ping the diesel engine from its refreshed CR‐V SUV this year.
London’s first Zero Emission Zones due in 2020
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ondon could get its first electric vehicle only ‘Zero Emis‐ sion Zones’ by 2020, aimed at improving air quality and driving uptake of cleaner travel, as part of an environmental strategy revealed in May. The final draft of the London Environment Strategy, issued by Mayor Sadiq Khan, has been presented to the London Assembly and will be published within weeks. It addresses not only transport emissions, but reduced waste and more energy‐efficient buildings, calling for government support to put the plans into action. The Zero Emission Zones will be located in town centres, and the plans bring the deadline forward from 2025. Khan
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said the plans had the support of businesses and local authorities, and would support ongoing ambitions to make London legally compliant with NO2 limits possibly even before the 2025 target set out in the UK Government’s Air Quality Plan, issued last summer. London is less than a year away from its first Ultra‐Low Emission Zone, which will introduce charges for pre‐Euro 6 diesel and pre‐Euro 4 petrol vehicles, 24 hours a day, 365 days a year, as of next April. Brought forward 17 months, it covers the current Congestion Charge zone in the centre of the capital, but proposals are in place to widen it to the North and South Circular roads in 2021.
For the latest EV news, visit evfleetworld.com
Hydrogen fuel cell EVs begin European fleet trial
in brief
€26m pan‐European initiative to deploy 180 hydrogen fuel cell electric vehicles in Paris, Brussels and London, has put its first cars on the road. The ZEFER (Zero Emission Fleet vehicles for European Roll‐out) project is co‐ funded by the €5m public‐private Fuel Cells and Hydrogen Joint Undertaking partnership, and is being delivered by a consortium of hydrogen suppliers, end‐ user fleets, observer partners and analytical bodies. Its aims to gather data and demonstrate a business case for future FCEV adop‐ tion, while demonstrating the performance of the cars and infrastructure under high‐mileage conditions. The 180 vehicles will be split equally between the three cities, and used across a combination of taxi, private hire and police fleets. These were chosen because they drive long distances, require quick refuelling, and operate in city centres where air quality is lowest. The first 25 vehicles were deployed in London with private hire company Green Tomato Cars in April.
Ford is adding a second city to its Transit Custom plug‐in hybrid trial, with a leet set to roll out in the Spanish city of Valencia, near one of the carmaker’s factories. Collaborating with the regional and city governors, the leet of test vans will assess how it could contribute to cleaner air and enhanced productivity.
A
Kia Niro EV to offer 450km range
Ford extends Transit PHEV trial
Walmart to offer ultra-fast EV charging American supermarket chain, Walmart, is to roll out ultra‐fast 350kW charging points to 100 stores in 34 states by June 2019. The points will be installed via Volk‐ swagen Group subsidiary Electrify America, and enable compatible EVs to regain almost 35km per minute plugged in.
Australian government to go 100% electric The Australian Capital Territory is to tran‐ sition its entire government leet to electric vehicles, while supporting infrastructure around Canberra. It means 50% of newly‐ leased vehicles will be electric in 2019/20, rising to 100% the following year, where it for purpose. Figures from Australia's Elec‐ tric Vehicle Council showed 1,369 plug‐ins were registered nationwide last year.
K
in numbers
ia is equipping the Niro compact SUV with a fully electric drivetrain, with the longest‐range version travelling 450km between charges. Previewed at an event in Korea ahead of its Paris Motor Show debut later this year, the Niro EV will be offered with the same choice of battery options as the Hyundai Kona Electric – offering capacities of 39.2kWh and 64kWh, offering a range of 240km and 380km respectively, according to domestic‐market data. Kia Europe claims a range of over 450km for the latter Expect the drivetrains to be similar; the low‐capacity battery paired with a 135hp motor, while performance for the 64kWh unit rises to 205hp. Hyundai is offering 100kW charging capability – twice the speed of today’s rapid chargers – enabling 80% of that range to be recovered in less than an hour. This is also likely to be shared between the two cars.
Seat deploys electric carsharing fleet A leet of electric Seat eMiis are now on the road in Barcelona to provide employees at the Seat Metropolis:Lab Barcelona and the Pier 01 Barcelona Tech City with zero‐ emission transport. The vehicles can be reserved by a mobile app, which also serves as a digital key to open them, and will generate R&D data for the carmaker.
400km Electric range for the BMW iX3 concept, which previews an electric X3 SUV.
Source: Arrival
35
Electric UPS delivery trucks being deployed in London and Paris, via UK manufacturer Arrival.
Source: BMW
internationalfleetworld.com / 13
business news
Fraikin Group acquired by consortium F
raikin Group has been acquired from CVC Capital Partners for an undis‐ closed amount by a consortium led by Alcentra and Verde Partners. The acquisition of parent holding company FTI will see the Fraikin Group – one of the largest commercial vehicle fleet services specialists in Europe – recapitalised, with a significant reduction of its holding debt by approxi‐ mately €500m. Established in France in 1944 by Gérard Fraikin, the group collectively manages in excess of 58,000 vehicles in Europe and saw its third consecutive year of growth in 2017, with strong performances from long‐established markets in France, Spain, the UK and Poland as well as new operations in Italy, Germany and Saudi Arabia. It also opened a subsidiary in Dubai in April. Speaking at the first meeting of the new board of directors, group CEO Pierre‐Louis Colin said: “We now have all of the necessary ingredients to go forward and propose a bold, long‐term strategic plan that harnesses the full potential of the company.”
Fleetcompetence appoints global sales director and German fleet industry specialist Matthias Engel has GMrlobal joined Fleetcompetence Group as global sales director. Engel brings some 25 years’ experience in the industry, most recently at ARI Fleet Services, where he was responsible for sales in the Germany‐Austria‐Switzerland region. He also spent nearly 10 years at Opel in a series of international roles, culminating in the position of European Leasing & B2B Sales Director, and has also worked for vari‐ ous German leasing companies. His appointment comes as Fleetcompetence Group expands its consul‐ tancy services on an international basis after completing its network. Mr Engel will integrate the company’s international network of more than 55 specialised consultants into his activities, enabling the firm to identify customer needs at an early stage and to propose customised fleet consulting solutions.
Sixt expands global corporate sales team ixt has expanded its international sales team as it puts the focus on provid‐ ing global leets with specialised international contacts for their worldwide S mobility needs. The irm has bundled all of the group’s products – including car rental, ride railing, leasing, leet management and supplementary services – with the aim of effectively reducing companies’ mobility costs and providing lexible and cross‐ border solutions for global players. In line with this, the company has appointed Heike Kammer, Stuart Donnelly, Emmanuel Roche and Florian von Klier as new directors of international sales, based in Munich, London and Paris. The team offers cross‐border solutions for use in 60 markets, complementing the national sales teams, and reports directly to Vinzenz P lanz, senior vice pres‐ ident of group sales.
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fleetinquotes a few soundbites from a month in fleet
Starting in 2025, each new DS will be launched exclusively with electrified powertrains. Our ambition is very clear: for DS to be among the global leaders in electrified cars in its segment.
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Yves Bonnefont, CEO of the DS brand
We firmly believe that the diesel engine will continue to play an important role in the options for future mobility. Until electromobility breaks through to the mass market, we will still need these highly efficient combustion engines.
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Dr Volkmar Denner, CEO, Bosch
A next-generation SUV that complements the recently renewed Citroën range and addresses the crucial SUV segment with all the identity of the brand: design, comfort, modularity. New C5 Aircross SUV is Citroën’s new flagship and a key lever for the international growth of the brand.
“
Linda Jackson,Citroën CEO
”
7yr 150,000km warranty
EX-CEED-ING EXPECTATION New Ceed sets the standard for fleets with fresh design, innovative engines and cutting-edge technology. Built in Europe, for Europe Quality as standard Lower, longer, wider, and brimming with the latest Meeting diverse buyer needs, the new Ceed is powered by technology, the new Ceed nomenclature stands for a wide range of engine options, including gasoline 120PS Community of Europe with European Design. The athletic 1.0-litre T-GDi engine, as well as a new 1.4-litre T-GDi power third-generation Ceed has been designed, developed and unit. Replacing the earlier 1.6-litre GDI engine, the new engineered in Frankfurt by Kia’s European design, product ‘Kappa’ 1.4-litre T-GDi engine produces 140PS, 4% more development and R&D teams, giving it the same sporty, than its predecessor despite its lower displacement. emotional design character of the Stinger, with a more selfReduced emissions are made possible by the addition confident new look. of particulate filters on the gasoline engines. Additionally, Ceed occupies a unique position in the Kia line-up, new diesel 115 and 136PS ‘U3’ 1.6-litre CRDi engines use perceived by buyers as a dynamic and sporty vehicle to Selective Catalytic Reduction active emissions control to drive, while also being one of the most reliable, practical significantly reduce emissions. These technologies enable and recognisable. the new Ceed to go beyond Euro 6d TEMP standards, for Packed with technology, and a first for any Kia sold in example emissions of less than 110g/km (WLTP*) are Europe, the new Ceed is available with Lane Following expected on the ‘U3’ diesel. Joining the Kia line-up at thedriving end oftechnology. the year, Kia’sThe stylish Optima Assist; a ‘Level Two’ autonomous Ceed’snew optional ECO Pack features an Active Air Further enhancements Smart Cruise Control Flap, which closes and opens depending on engine Sportswagon is as include desirable for drivers aswith it is cost-efficient for fleets. Stop & Go, Blind Spot Collision Warning, Rear Cross-Traffic cooling requirements, enhancing the car’s aerodynamic Collision Warning, Smart Parking Assist, and pedestrian efficiency for even greater fuel economy. recognition with haptic steering wheel warnings for the On sale across Europe from the end of Q2 2018, as one Forward Collision-Avoidance Assist system. would expect, the Ceed is covered by Kia’s industryAvailable as both five-door hatchback or practical leading quality promise: a 7-Year, 150,000-kilometre Sportswagon, the new car meets all your fleet needs. warranty as standard. *WLTP figures converted from NEDC.
Lane Following Assist, ‘Level Two’ autonomous driving technology
For more information, visit kia.com/eu advertisement feature
REPORT Global leasing
FROM STRENGTH TO STRENGTH The leasing industry has experienced growth and has introduced innovative ways to finance equipment for companies worldwide. By Brendan Gleeson, Group CEO, White Clarke Group.
F
or the sixth consecutive year since the global financial crisis, the leasing industry has enjoyed growth in new business volumes and the outlook for the industry remains optimistic. The top 50 countries in 2016 reported growth in new business volume of 9.4% in 2016. Three regions, North America, Europe and Asia, accounted for more than 95% of world volume. New business volume exceeded the previous year’s global total by US$94.47bn. The Asian region experienced impres‐ sive growth of 30% and demonstrated by far the largest percentage increase among all the global regions. All eyes remain on China, which registered staggering growth of 61%, highlighting the robustness of this burgeoning market. Europe recorded a growth rate of 7.3% and North America experienced 2.2% growth over the previous year. By contrast, Latin America posted a slight decline of 6.8% in 2016 while Africa recorded a fall from the previous year’s igure of 19.5%. Australia/New Zealand was down 8.9%.
North America The North American region has main‐ tained its position as the world’s biggest market, with new business volume of US$416.8bn and represents 37.9% of the total global market share in equipment leased. The US is the dominant player of the region, and is the largest single market in the world. In 2016 new business volume was US$383.9bn. In Canada low commodity prices and the weak economy set the tone for the machinery and equipment market to struggle regardless of ongoing gains in the leet vehicle market. There was an 8.5% drop in the value of new assets inanced
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in Canada in 2016. The leet leasing market was the strongest segment, grow‐ ing at 6.4% in 2016.
Europe Each year the US and Europe vie for the top position in the world’s leasing market share, and again, both have relatively simi‐ lar new business volume of US$383.9bn and US$346.3bn respectively. Europe accounts for 31.5% of world volume and ive European countries (UK, Germany, France, Italy and Sweden) feature in the world’s top 10 countries for new business, contributing 65% of the total volume. The United Kingdom and Germany are positioned as the third and fourth largest leasing markets in the world and remain the dominant players in Europe. They accounted for 42% of the European market and 13% of the world market.
Asia New business volume in Asia increased by a very impressive 30% in 2016 and occu‐ pied a 26.4% share of the world market of US$289.9bn, a greater igure than the previous year where the market share for Asia was 22.2%. In China new leasing business was up a massive 61.9%, to US$206bn in 2016, making China the second largest leasing market in the world. The growth of the market has been remarkable, and leasing is now seen as an important inancing option in the domestic economy. Japan, which is the ifth largest leasing market in the world, experienced a small decrease in lease transaction volume in 2016 of 1.3%. However, it is a sophisti‐ cated and mature market which still remains the second largest in Asia after China and approximately 6% of private capital investments are made through leasing.
The third biggest leasing market in Asia is Korea, which ranks 13th in the world, achieving new business volume of US$10.8bn, which was down slightly in 2016.
Rest of the world Leasing in Australia is a mature prod‐ uct, having been offered as part of a portfolio of equipment financing tech‐ niques for over 60 years. Leasing is a proven equipment financing technique suitable to all stages of the economic cycle and it is expected it will continue to play an important role in supporting and developing the Australian economy. Africa accounts for 0.5% of the global leasing market with only four countries being placed in the top 50 ranking. They are: South Africa, ranked 28th, Morocco 37th, Nigeria 44th and Egypt 46th. The region declined in volume to US$5.4bn. There is a scarcity of accurate infor‐ mation available on the African markets. The International Finance Corporation (IFC), a member of the World Bank, has been supporting the development of leasing markets in Africa for over 10 years and has inter‐ vened in more than 20 countries. But, there is not a definitive study at present and estimates for the region are difficult. Latin American new business volume figures are not recorded by the national leasing associations, with the exception of Brazil and Chile, where the empha‐ sis is on portfolio value. Overall new business volume for the Latin Ameri‐ can region declined by 6.8% in US dollars. Latin America accounts for 1.2% of total lease volume. The largest leasing markets in South America by size ranking are Colombia, Peru, Chile, Brazil, and Argentina.
WE PROVIDE YOU SUSTAINABLE SOLUTIONS WE HELP YOU HANDLE THE ENVIRONMENTAL FOOTPRINT OF YOUR FLEET THROUGH OU R ALTERNATIVE POWERTR AIN OFFER. ALDAUTOMOTIVE.COM
ANALYSIS Residual values
Remarketing notes PSA Group’s DS brand continues to expand its range, with the introduction of the DS 7 Sportback representing a bold move into the busy SUV segment. By Dieter Fess. What the manufacturer said at launch:
About the residual value grades
Heralding a new era for DS, the new SUV combines the latest technological innovations with the brand’s Parisian savoir‐ faire, introducing new levels of driving comfort and perfor‐ mance. Aimed at customers who are in tune with the latest trends, appreciate the world of luxury and prefer to express their unique personality.
What BF Forecasts say now: With the premium brand DS, the PSA concern remembers the avant‐garde DNA of the traditional brand Citroën. The offspring DS stands for the satisfaction of extraordinary designs, espe‐ cially of the interior. This has worked out excellently. In compar‐ ison to the fine‐leather atmosphere in a DS 7 Crossback, sitting in a German premium limousine can feel less special.
Brand: DS Automobiles
Model: DS 7 crossback
The residual value grades assess the residual value performance of the car model in question. Additional to the grades, a short statement addresses some of the car’s characteristics or other factors, which are relevant to its residual value performance. The residual value grades are calculated according to their residual value percentages and the monetary depreciation within three years after the purchase as a new car, considering a common mileage for the respective segment. The performance is put in relation to the residual value performance of competitor models.
About BF Forecasts BF Forecasts is an independent supplier of accurate and transpar‐ ent residual value forecasts as well as used car value data for the past and current used car market. BF Forecasts has been providing such data to leasing companies (both captive and non‐captive), OEMs, NSCs, major company fleets, as well as to insurance and investment companies inside and outside of Europe since 1998.
Available since: 2017 RESIDUAL VALUE GRADES
Prices from: (incl. VAT)
Engines:
France
Germany
Spain
€31,200
€31,490
€32,950
Petrol
Diesel
180hp
130hp
225hp
177hp
Text and data: bähr & fees forecasts GmbH ( Ø- Values; Trade; 36 Months; 60TKM;05-2018)
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10 9 8 7 6 5 4 3 2 1 France
Germany
Spain
The new Opel
COMBO LIFE Always at hand for your fleet needs.
1
Ï
Up to 7 seats1
Ï
Up to 3.05 m load length2 and 2,693 l load volume3
Ï
High driver safety4
Optional. 2 Long wheelbase (optional). 3 Long wheelbase (optional), measured according to ISO 3832 (specifies a method of measuring the reference volume of the luggage compartments of passenger cars). 4 Standard safety features: Forward Collision Alert with Pedestrian Detection, Automatic Emergency Braking, Driver Drowsiness Alert and Lane Keep Assist. Picture shows optional equipment, depending on local market offer. For further information please contact your local Opel/Vauxhall fleet representative or dealer. Combo Life fuel consumption combined 5.7–4.1 l/100 km; CO2 emissions combined 130–108 g/km (according to R (EC) No. 715/2007 and R (EC) No. 692/2008).
SPOTLIGHT Lexus ES
Range extender For the first time in Western Europe, Lexus is offering the ES mid-size sedan. John Challen picks out the highlights of the seventh-generation vehicle.
Exceptionally smooth Previous ES models have stood for luxury, refinement and comfort and, with this latest iteration, Lexus is raising the bar higher. Helped by the the company’s new Global Architecture-K (GA-K) platform, body rigidity has been improved and the base has also allowed a more ‘dynamic appearance. The car is longer, lower and wider than the outgoing model, with wider tracks front and rear (up by 10mm and 37mm respectively).
FLEET FACT The ES hybrid battery is so compact it can be housed beneath the back seat, freeing up bootspace.
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Hybrid drive moves on The ES 300h is equipped with the fourth generation of Lexus’ self-charging hybrid drive system. The setup sees an ultra-efficient 2.5-litre Atkinson cycle four-cylinder petrol engine coupled with an electric motor that is claimed to be lighter, more compact and with a higher power density than anything used by the brand before. The 2.5-litre engine is all-new and incorporates fastburn combustion technology that makes it one of the most thermally efficient engines to feature in a production vehicle. Lexus says that overall driveability has been improved by “a more sophisticated hybrid system control computer that is better able to mimic the feel and power delivery of a standard petrol engine”.
What we think... The big growth area in the automotive market currently is SUVs, but sedans – especially those with high levels of luxury, comfort and performance – are also pretty popular. The ES is an interesting proposition, with Lexus clearly looking to claim some of the sales in the sector from the major German brands who currently dominate. JC
Demands for performance Despite being given an emphasis on quality and comfort, ES engineers were also tasked with improving handling, power delivery and driving dynamics from the previous generation model. As such, there is an F Sport version of the car, with adaptive variable suspension – similar to that seen in the LC – and a Sport + mode, which heightens the engine, transmission and suspension response times.
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FEATURE Fleet management
GAINS WITHOUT FRONTIERS Centralised fleet management agreements can achieve significant economies of scale, ALD Automotive’s Thierry Faure tells Curtis Hutchinson.
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THE BENEFITS OF CENTRALISED FLEET MANAGEMENT Economies of scale: this can be achieved on a regional basis by leveraging scale through the procurement process with OEMs and suppliers. The larger a client’s presence in the market, the higher the savings opportunity on procurement.
Consistency: centralising leet management provides product and service consis‐ tency and streamlined operations across multiple markets, wherever appropriate.
Consolidated monitoring and reporting: clients benefit from standard‐ ised reporting through a common system. This is particularly useful for moni‐ toring fuel consumption, CO2 emissions, mileages and contract durations across a global fleet. Quality local operations: businesses need to know their providers are capa‐ ble of not only managing their leets internationally but are also in tune with local requirements.
C
ompanies operating across inter‐ national borders are continually looking to achieve the best possible economies of scale through centralised management. This approach can range from the travel and accommodation for business trips to the procurement of goods and materials, to IT systems. Savings achieved in such areas can go straight to the bottom line, allowing more funds for investment and growth. One of the biggest opportunities for cost savings can be achieved in leet operations with centralised procure‐ ment, helping large companies to offer consistent policies to staff across inter‐ national operations and better monitor‐ ing and control of their carbon footprint. Fleet management companies with international client bases are ideally positioned to consolidate local services such as maintenance and repair networks and tyre purchases, translating into tangible total cost of ownership (TCO) savings for clients. The scale of the bigger fleet manage‐
ment providers also enables clients to benefit from their experience of alter‐ native powertrain strategies, driver safety programmes, and responsible global sourcing. However, agreeing a centralised leet management strategy in the boardroom is one thing, implementing it on a global basis is another. There are many vari‐ ables to consider including local taxation and regulatory considerations and the inevitable internal politics.
Worldwide management ALD Automotive is one of a handful of fleet management suppliers positioned to offer truly global solutions as it manages over 1.5 million vehicles across 43 countries. Thierry Faure, head of sales for international key accounts, believes centralising can be beneficial for businesses operating across the globe but concedes it can present challenges and requires a degree of buy‐in from local manage‐ ment and staff.
“One of the biggest opportunities for cost savings can be
achieved in fleet operations with centralised procurement.”
internationalfleetworld.com / 23
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FEATURE Fleet management
“Companies realise that fleet management is not their
core business and when they decide to outsource and centralise their fleet management, they reap the benefits.”
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“Car policies can be a sensitive topic. There will always be, in any organisation, some resistance in contracting with an international supplier as it often stan‐ dardises car models and car policies with possibly less local bene its,” says Faure. “Many employees see this as something that is good for others but not for them‐ selves. Large corporations often face this challenge and it requires strong interna‐ tional governance, with a procurement council including local stakeholders, to monitor the implementation of changes centrally and locally.” In emerging markets, Faure says ALD still sees leets that are managed in‐ house by employees with vehicles owned by the company. “When the decision is made to transfer to a leasing company, jobs may be at stake and this raises important HR issues,” he explains. “It is crucial to manage this transition prop‐ erly and can be facilitated when opera‐ tions remain local so that the driver experience continues to be positive.”
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Local rules An understanding of local taxation is also important and can represent a challenge across different regions. ALD provides consultancy services on a global scale to help clients select the best TCO models for each country. Important considerations here are the local tax treatment of vehicles, employee Bene it‐in‐Kind and fuel prices. “Most advanced international leasing companies do provide comprehensive tax information in their TCO analyses by country, but the historical perception of some companies is that it is better to leave such analyses in local hands,” says Faure. He adds that he has seen a trend towards more international companies centralising leet operations as a result of the bene its achieved by greater syner‐ gies. “Traditionally, leet leasing was seen as a banking product, but this opinion has slowly progressed towards a TCO service and now a mobility service. The evolving market and service maturity has pushed the industry towards speci ic services
and reporting requirements that are available through specialised partners.” As a result, business units in one coun‐ try can bene it from the experiences of those in other regions and that’s good for corporate governance. “We see clients in more mature markets pushing for trans‐ parency both in terms of pricing and data,” he explains. “To facilitate this, we provide total neutral consultancy which allows clients to plug in their expecta‐ tions and leet size to determine if a sole supplier for their leet needs is a more cost‐effective option. “Companies realise that leet manage‐ ment is not their core business and when they decide to outsource and centralise their leet management, they reap the bene its of one‐stop shopping in terms of economies of scale, as well as having a global overview in terms of leet manager data and driver statistics,” adds Faure. “Periodic benchmarking may also be carried out to ensure the bene its of outsourcing are continually passed on.”
RISING TO THE CHALLENGE Sergio Barata, Verizon Connect, EMEA general manager
V
Balancing the books One of the most challenging aspects of centralised leet management is how best to approach funding to take advantage of the most cost‐effective and tax‐ef icient forms of inancing from country to country. For Faure, the key here is the transparency afforded by a sole supplier. “It is important to have access to transparent interest rates in countries. By using a reliable interna‐ tional supplier, clients bene it from the commercial spread that will be identical globally and applied to the local cost of funding. Clients thus bene it from compet‐ itive and transparent leasing costs in the local market. Local providers may not be able to provide this transparency,” he says. Also, leet management companies operating across different regions can utilise their economies of scale to the bene it of their clients. “International providers may have a more competitive cost of funding in the local market because they are reliable, large‐scaled, manage risks well and can thus access
funding more cheaply locally. A small or medium‐sized local provider will not often have access to competitive funding.” The scale of the bigger leet management companies also means they are well‐estab‐ lished players in local markets and that is an important aspect of any bigger centralised deal, reckons Faure. “Local knowledge is required to contract with the right suppliers to ensure that clients bene‐ it from the best services possible. You need to control them, build a relationship with them, know that your clients are getting the best customer service. “Operational leet management is often seen as the moment of truth whether it be vehicle delivery or restitution, tyre changes, repairs or maintenance – these are purely operational aspects but play an important role in the relationship leet suppliers have with their customers,” he adds. “For optimal driver experience, this is clearly better handled on a local basis by local teams and international suppliers need to be able to provide this.”
erizon Connect provides soft‐ ware‐based leet services for companies in 15 countries span‐ ning ive continents and believes centralised leet management has a place for international companies but imple‐ mentation is not without challenges. “There has been a clear trend for large pan‐European organisations to stan‐ dardise their operations, including their fleet management systems, over the past few years,” says Sergio Barata, Veri‐ zon Connect’s EMEA general manager. “This can be quite a significant under‐ taking as each market tends to have different suppliers and variables. For example, many markets will favour local vehicle manufacturers, have different OEM partnerships and vehicle monitor‐ ing hardware or software providers. There’s also a lot of local politics and preferences that need to be overcome when going through a standardisation process – but there are huge benefits for organisations that do persevere. “The biggest challenge for large organisations looking to really under‐ stand their operations and performance across local markets is that it’s hard to compare like for like,” says Barata. “Also, with each market often using different suppliers, the data provided through fleet management systems can vary. “A centralised approach has a massive upside for large multinational organisa‐ tions because it allows them to avoid a patchwork of local suppliers and create a single dashboard of data and a consis‐ tent set of metrics.”
internationalfleetworld.com / 25
FLEET FOCUS Australia
Australia stable as SUV popularity continues Autorola Australia country manager Philip Browne on the changing face of the automotive industry since it lost its final domestic car manufacturer.
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T
he Australian new car market finished at just below 1.2m in 2016 and 2017 and the early signs are that the market will deliver a similar performance in 2018. The market has finally seen its last car maker Toyota shut up shop as a domestic car producer, with production costs deemed as too high when compared with imports from Japan and Korea that are now dominating the sales charts. That compares to a few years ago when Ford and Holden captured 25‐30% of the home market sales.
However, Toyota topped the charts in 2017 with its Hilux pick‐ up sales growing by 11.3%, with the Ford Ranger seeing 15.6% annual growth to take second place. Utility vehicle sales continue to grow as sectors like mining swallow up hundreds of commercial vehicles as has the construction sector, which has been buoyed by a rise in public investment. Sales are already up by over 20% in 2018. The success of light commercial vehicle sales is usually an indication of the economic prosperity of a country and Australia is living proof, having continually delivered between 2‐3% growth each year. Like so many countries, SUVs are growing in popularity with the Hyundai Tuscon making the top 10 best sellers list, while Toyota remains the country’s favourite car maker.
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FLEET FOCUS Australia
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THE LOVE OF LEASING Personal leases have also grown in popularity over the past 12‐24 months with consumers looking to switch from owning a car to the lexibility of leasing a car. Currently these account for up to 90,000 new car sales each year with Toyota Finance one of the biggest players. National leasing companies are offering competitive lease rates on new cars and then, when the consumer has equity in the car, calling them with an offer to swap them into another new car. Lease companies are also using Autorola to sell ex‐lease cars upstream, whereby three to six months before the end of the contract the car is inspected and pre‐sold to a buyer. Pre‐sell‐ ing the ex‐lease car is proving an ef icient disposal method for the leasing industry while the used market is extremely buoy‐ ant. Used cars are sold within days of being de‐ leeted, while the customer gets to drive away in a new car which is keeping the market stimulated. Another strong source of used cars into the market is via the leet sector. Offering a company car is part of the recruitment package as a bonus, especially as the competition to employ talent across the country is high. Typically, leets are keeping cars for between three and four years, and up to 140,000km and these are offering a different type of used stock proposition to dealer part exchanges and ex‐personal lease trade‐ins. THE AUSTRALIAN RENTAL MARKET Tourism continues to grow in Australia and with it the rental market, particularly around Sydney and Melbourne. Nine million visitors were welcomed in the year ending March 2018, an increase of 7.7% and suf icient growth to see all the major rental companies extend their hire leets. Hertz
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remains the number one rental company, with the majority of cars now being purchased on risk as opposed to manufacturer buy‐backs. The larger hire companies tend to keep cars for 18 months while the smaller independents usually replace their cars every 24 months. Ex‐rental cars provide valuable used stock into the market as they fall between dealer part exchanges and ex‐ leet cars. A continued growth area for Autorola’s online remarketing proposition is the salvage market where cars are inspected, photographed and offered for sale in situ. On average Autorola runs two salvage auctions a day online and between 400‐500 salvage cars online each month, a igure which continues to grow. Selling the vehicle online is an ef icient route to market due to the physical size of the country. The vehicle is marketed online but does not move until it has been purchased by the buyer thus reducing the need for insurance companies incur‐ ring expensive transport costs. Offering salvage vehicles for sale online to a wide range of buyers also ensures the insur‐ ance company gets the best price. The Autorola proposition has transformed the market as previously salvage stock would just be offered to local trade buyers, or it would be taken to a regional storage yard incur‐ ring huge transport costs to be auctioned. Online remarketing not only speeds up the sale but also ensures it remains a highly cost‐effective process. Overall the Australian economy is looking forward to more years of stability, but with the advent of the growth in personal leases and the end of domestic car production the automotive sector continues to reinvent itself.
Information provided by FocusEconomics Picture credit: irisphoto1/Shutterstock.com
Australian economics D
espite dipping slightly in March on concerns over rising global protectionism, business con idence and conditions remain rosy in Australia, boding well for non‐mining business investment. In addition, consumer con i‐ dence remained positive in April. However, the labour market has cooled in recent months, and although retail sales surprised on the upside in February, early signs suggest momentum was not maintained in March amid weak wage growth and consumers’ high debt. This comes after economic growth slowed in Q4 on a negative contribution from the external sector and lower construction investment, as large mining projects neared completion. In annual terms, retail sales grew 4.4% in March, up from 3.0% in February. As a result, growth in annual average retail sales rose to 2.8% in March from 2.6% in February. In late March, the Government announced it was delaying its lagship corporate tax bill due to a lack of support in the Senate, where the Liberal‐National coalition lacks a parlia‐ mentary majority. Promoted by the administration as vital to attracting investment, there are concerns over the potential impact on the budget de icit. The economy should be buoyed this year by stronger LNG exports as new projects come onstream. In addition, non‐ mining investment will likely increase at a robust pace, supported by loose monetary policy, population growth and dynamic global economic activity. However, meagre wage
growth and high levels of household debt will continue weigh‐ ing on the economy. FocusEconomics panelists expect GDP to expand 2.7% in 2018, unchanged from last month’s forecast, and 2.7% again in 2019. Nominal retail sales growth in March was lat over the previ‐ ous month in seasonally‐adjusted terms, down from Febru‐ ary’s 0.6% increase and coming below market expectations of a 0.3% rise. Higher sales in food retailing offset contractions in department store sales, as well as in sales of household goods, and clothing, footwear and personal accessories. The business con idence index produced by the National Australia Bank (NAB) increased to 10 points in April from 8 points in March. The series thus moved further above its long‐run average and the neutral zero‐point threshold, indi‐ cating that Australian businesses are largely optimistic regard‐ ing economic conditions. Looking at the sector‐by‐sector picture, the construction, mining, and transport & utilities sectors grew more optimistic, while the manufacturing sector became slightly less optimistic. All sectors remain irmly in positive territory. Meanwhile, busi‐ ness conditions improved in April to an all‐time high on the back of better trading conditions, pro itability and employment. Forward orders, on the other hand, eased marginally but remained in positive territory, while the capacity utilisation rate edged up in April. Coupled with elevated pro itability, this bodes well for non‐mining business investment this year.
internationalfleetworld.com / 29
PROFILE Jaguar Land Rover
Setting the Pace A British phenomenon, Jaguar Land Rover is as instantly recognisable today for its prestige brand offering, as it is for its heritage vehicles that made its name. Today, the company is undergoing unprecedented change‌
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Manufacturer Jaguar Land Rover Total sales 621,109 (2017) Headquarters Coventry, UK Global market share 0.85% No. of models 13
view
from the top
From strength to strength
A
s the largest automotive manufacturer in the UK, Jaguar Land Rover oper‐ ates two iconic brands: Land Rover; a world‐renowned manufacturer of premium all‐wheel drive vehicles and Jaguar; seen as one of the world’s premier luxury sports saloon and sports car marques. The company is headed by CEO, Prof. Dr. Ralf Speth who joined Jaguar Land Rover on 18 February 2010. Speth has sat on the Boards of Tata Motors since 2010 and Tata Sons since 2016, which bought Jaguar Land Rover in 2008 for €1.3bn. Today, the company employs more than 43,000 people globally and supports around 240,000 more through dealerships, suppliers and local businesses. Manu‐ facturing is centred in the UK, with additional plants in China with Chery, Austria with Magna Steyr and latterly in Nitra, Slovakia, where cars are due to roll off the production line for the irst time at the end of this year. Being a predominantly UK‐based manufacturer, Jaguar Land Rover has been hit hard by recent unpredictable changes, and with 50% of its raw materials coming from Europe, the new factory in Slovakia is designed to alleviate its concerns to some extent and enable it to remain competitive. Despite the uncertainty, the company reported pre‐tax pro its of €1.7bn for the inancial year ending 31 March 2018. Revenues increased 6% to €29.3bn thanks to high demand for new models in key markets including China and the US. In 2017 Jaguar Land Rover sold a combined 621,109 vehicles – an increase of 20% over 2016 – in 130 countries. The increase in sales was driven particularly by new models, including the latest Land Rover Discovery, the award‐winning Range Rover Velar, the long‐wheelbase Jaguar XFL in China and continued solid demand for the Jaguar F‐Pace. Two all‐new cars were also introduced in 2017; the I‐Pace, Jaguar’s irst fully elec‐ tric car, and the E‐Pace – based on the popular Range Rover Evoque. Other signi i‐ cant launches included the Jaguar XF Sportbrake and the irst plug‐in hybrid models of the Range Rover and Range Rover Sport. Sales in China and the US helped offset weaker performance in the UK and Europe, which the company attributes to consumer uncertainty surrounding diesel models, Brexit and vehicle taxation. China was the company’s largest sales region in 2017 with annual sales of 146,399, up 23% year‐on‐year. North America reported a calendar year record with sales of 128,097, 9% up on the previous high in 2016. Jaguar Land Rover has spent more than €4.5bn on the company’s vehicle and engine plants since 2010, bringing six all‐new nameplates and two ultra‐clean Ingenium engines to the market. In the last iscal year alone, investment
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Jaguar Land Rover Global sales, by market Territory
FY2016
FY2017
% change
North America
117,278
128,097
+9.2
UK
117,571
117,748
+0.2
Europe
138,695
138,643
+0.0
China
119,049
146,399
+23%
Other markets
90,720
90,222
-0.5%
Total
583,313
621,109
+6.5
Jeremy Hicks, UK managing director, Jaguar Land Rover How was 2017? We’ve been quite selective about how we grow our volumes. We’ve always done okay in leet but mainly in small business. For us it’s always about balance: we have retail strength other brands would die for, and they have leet strength that we’d like to have a little of. Which products are most successful? We’ve been strong with low‐emis‐ sion cars; the eD4 being a prime example. With WLTP that will move everybody, as everyone is going to go up, and that will change the whole world for all manufacturers. From being 90% diesel we’re about 80% diesel now. What we’ll see is a big change in the leet market because so much was driven by CO2 and it’s becoming more important. I think we’ll see more people opt out of leet cars and that’s where there’s a huge opportu‐ nity for us. We have strong residual values, a good range line‐up and I think that will be a good opportunity in a changing leet market. How will electrification fit into the brand? I think there will [be a leet demand] and the leet market will go through unparalleled change because of: TCO, taxation bene its, WDAs, WLTP; all these things coming in – change like never before. What are your diesel concerns? We can’t have a position where the CO2 from the leet of cars went up, after years of going down. There’s no surprise to that; it’s because petrol sales have gone up. We’ve got to do the right thing for the environment, and I’m concerned we’re not. The debate is completely out of balance. We don’t mind selling petrol cars, we’ll sell PHEVs and BEVs too, but we’ve got to make sure customers are buying the right car for them.
internationalfleetworld.com / 31
PROFILE Jaguar Land Rover
Where
Manufacturing plant locations
are they made?
6
5 1 2 3 4 7
1
2
FIN fleet in numbers
Up to 20,000 I-Pace to join Waymo’s driverless fleet by 2020.
20%
YoY sales increase for Jaguar in 2017.
forty-five per cent Of JLR models sold globally are diesel. 32 / internationalfleetworld.com
EUROPE... Castle Bromwich, West Midlands, UK – Jaguar F-Type, XJ, XF, XK.
8 9
Solihull, West Midlands, UK – Land Rover Defender, Discovery, Range Rover, Range Rover Sport.
3
Wolverhampton, West Midlands, UK – Engine manufacturing centre.
4
Halewood, Merseyside, UK – Land Rover Discovery Sport, Range Rover Evoque.
5
Gaydon, Warwickshire, UK – design & engineering centre.
6
Ryton-on-Dunsmore, Nr. Coventry – Special Vehicle Operations (SVO).
7
Shannon, West of Ireland – Battery engineering, software & technology.
8
Magna Steyr, Graz, Austria – E-Pace, I-Pace.
9
Nitra, Slovakia – First vehicles off production line in late 2018.
10
11
20
10
11
REST OF WORLD... Chery Jaguar Land Rover, Changsu – Range Rover Evoque, Land Rover Discovery Sport, Jaguar XE, Jaguar XF. State of Rio De Janeiro, Brazil – Range Rover Evoque.
at €450m to support the introduction of the Jaguar XF Sportbrake and → stood Range Rover Velar. Plants also gained signi icant manufacturing technology and upgraded facilities to support continuous improvement. However, it plans to invest in the region of €5.1bn in the 2018‐19 inancial year alone, demonstrating the massive increase in necessary investment to remain competitive and embrace new technologies. From 2020, all new Jaguar Land Rover vehicles will be electri ied. The company will introduce a portfolio of electri ied products across its model range, embracing fully electric vehicles like the I‐Pace, plug‐in hybrids like the Range Rover P400e and mild hybrid vehicles (suspected to include the Range Rover Evoque), as well as continuing to offer its latest range of Ingenium‐powered petrol and diesel engines. However, with the global shift towards electri ication, Jaguar Land Rover has been relatively slow in bringing to market an electri ied model, despite having produced several noteworthy concepts over the past two decades. Jaguar’s UK managing director, Jeremy Hicks says: “We’ve learned there’s a real appetite for plug‐ins. We will have PHEVs across our range of vehicles and by 2020 all new cars will have a form of electri ication, whether mild hybrid, PHEV or battery electric. And 13,000 have said they want an I‐Pace.” With the introduction of the I‐Pace, Jaguar is putting itself head‐to‐head with the likes of Tesla that has become a household name for electric vehicles despite having sold reasonably small volumes globally. In spite of this competition, Jaguar has focused on the vehicle itself rather than the surrounding technology, unlike Tesla, and has formed a long‐term strategic part‐ nership with Waymo (formerly Google’s self‐driving car project) in a landmark deal that will see up to 20,000 vehicles join Waymo’s leet in the irst two years of produc‐ tion and the irst Waymo self‐driving I‐Pace tests starting this year, eventually becoming part of Waymo’s driverless leet from 2020. In a further boost to the brand, together with Heathrow and travel services company WeKnowGroup and Jaguar signed a landmark deal in May that will see a leet of up to 200 I‐Pace available to passengers for travel to and from Heathrow, in the UK. Meanwhile, Land Rover working with the University of Birmingham to develop autonomous cars capable of all‐terrain, off‐road driving in any weather condition. The ‘CORTEX’ project aims to take self‐driving vehicles off‐road using acoustic, video, radar, light detection and distance sensing (LiDAR) data live in real‐time. In January, Jaguar Land Rover also con irmed plans to open a software engineer‐ ing centre in Shannon, Ireland, to support the development of electri ication and self‐driving systems for future vehicles.
Jaguar Land Rover fleet model range
Jaguar XE
Jaguar XF
Jaguar XJ
Variants: 4dr sedan Markets: Global Fuel: 4.9-7.6l/100km CO2: 126-173g/km
Variants: 4dr sedan, wagon Markets: Global Fuel: 4.9-7.8l/100km CO2: 129-178g/km
Variants: 4dr sedan Markets: Global Fuel: 7.0-11.1l/100km CO2: 185-264g/km
Jaguar E-Pace
Jaguar F-Pace
Jaguar I-Pace
Jaguar F-Type
Variants: SUV Markets: Global Fuel: 4.7-8.0l/100km CO2: 124-181g/km
Variants: SUV Markets: Global Fuel: 5.6-11.9l/100km CO2: 147-272g/km
Variants: SUV Markets: Global Electric Range: 480km CO2: 0g/km
Variants: Coupe, Roadster Markets: Global Fuel: 7.2-11.3l/100km CO2: 163-269g/km
Range Rover Velar
Range Rover Sport
Range Rover
Range Rover Evoque
Variants: SUV Markets: Global Fuel: 5.7-9.4l/100km CO2: 151-214g/km
Variants: SUV Markets: Global Fuel: 2.8-12.8l/100km CO2: 64-294g/km
Variants: SUV Markets: Global Fuel: 2.8-12.8l/100km CO2: 64-294g/km
Variants: SUV, Cabriolet Markets: Global Fuel: 4.2-7.6l/100km CO2: 109-173g/km
Land Rover Discovery Sport
Land Rover Discovery
Variants: SUV Markets: Global Fuel: 4.7-8.4l/100km CO2: 123-190g/km
Variants: SUV Markets: Global Fuel: 6.0-10.9l/100km CO2: 159-254g/km
internationalfleetworld.com / 33
EVENTS NAFA 2018 Institute & Expo
NAFA urges more mobility management The fleet industry headed to the west coast of the US in April to find out what to expect over the next 12 months and possibly beyond. Mark Boada picks out some of the highlights.
A
s usual, there were breakout sessions on scores of topics at NAFA Fleet Management Association’s annual, week‐long get‐together, held in Anaheim, California this year, but the event’s dominant theme was introduced by President Bryan Flansburg in the remarks he made to open the event: the mobility revolution. “We are all witnessing and living through one of the biggest, most signi icant, changes the auto industry has ever seen,” he told more than 2,000 leet professionals packing the hall for breakfast and NAFA’s business meeting. “We, as leet managers, are experiencing a paradigm shift from managing assets – four wheels on the road – to a wider perspective of mobility management. “We must get out of the mindset of ‘doing’ leet management and consider all of the possible ways to move things, which may or may not include a vehicle,” he added. “That may sound like heresy to some of us who have been ‘doing’ leet manage‐ ment for so long, but we have to change.”
34 / internationalfleetworld.com
Prepare fleets for the future While change can be intimidating, Flansburg said the mobility revolution is inevitable and represents an opportunity that leet managers should seize upon and lead. “The good news is that we can be the drivers of this change, not the victims of it – and NAFA is ready to help you make this change,” he promised. “The change will include a shift from the standard leet metric – total cost of ownership – to total cost of mobility, which includes every mode of transportation, from ride‐hailing and car‐sharing to public transit and planes. “And who will control the mobility spend in your organisation?” Flansburg asked. “Someone will need to, and who is in a better position than you? You, [as] the mobility manager, will understand and manage the full impact and implementation of this shift.” Then he issued a challenge to the audience. “I want you to consider how you can be the change agent for your organisa‐ tion. I challenge you to consider how you can move your work‐ place toward the future, instead of being moved.”
NAFA: educating fleet managers Flansburg noted that NAFA is already at work to make good its promise to help leet managers become mobility managers. For one, he announced that NAFA is creating educational materials and creating a webinar that it expects to roll out later this year. Mobility was also the cover story in the latest issue of the association’s Fleet Solutions magazine, which was distributed to all I&E attendees. The article – titled ‘How mobility will affect leet assets and driver autonomy’ – considered many topics, including how, with the rise of ride‐sharing apps, organisations may no longer own or lease the majority of vehicles they use, as ride‐ and car‐sharing may be more cost‐effective and the notion of zero ownership often associated with autonomous vehicles may not be fully realised, especially among service leets, law enforcement and delivery companies. It also pondered that, in the future, the FMCs ( leet manage‐ ment companies) will be in competition with car manufacturers who have already created divisions that offer mobility as a service. Finally the article pointed out that there are legal issues that have yet to be resolved involving ride‐sharing, such as poten‐ tial leet sponsor liability for injuries suffered by an employee in accident where a ride‐sharing company driver is at the wheel. Mobility the focus at NAFA academy Flansburg’s remarks came the day after NAFA’s pre‐conference International Fleet Academy in Anaheim, where the entire focus of the half‐day session was the mobility revolution, broadly de ined to include vehicle electri ication, autonomy, connectiv‐ ity, and ride‐ and vehicle‐sharing. The program consisted of ive presentations and the topics and speakers provided insights on the nature and scope of the leet mobility proposition: • The Continuum: Mobility from Infancy to Reality – Darin Walsh, senior manager at GM’s Maven mobility division, and Steve Higgs, GM leet and commercial’s manager for global and North American leets. Walsh said the mobility revolution is being driven “fast” by global trends toward a population shift to congested cities where parking is expensive, the loss of interest by younger generations in owning and driving a car, consumer preference for connected vehicles and increasing restrictions and even the ban of internal combustion engine in cities and countries. Walsh cited independent studies projecting that by 2030, 54% of the cars sold around the world will be either fully elec‐ tric or plug‐in electric hybrids, and that 50% of all cars sold will be highly autonomous. Higgs noted that GM now sells a highly autonomous vehicle – the Cadillac SuperCruise – that can drive from Alaska to Florida without the driver touching the wheel except to stop for refuelling or rest breaks. Higgs said GM is making major investments in providing electri ied and autonomous vehicles, as well as creating the means to provide leets and consumers mobility as a service as well as leased and purchased vehicles. • How ‘machine learning’ will lead the future of leet autonomy and mobility – Steven Choi, senior technical prod‐ uct manager at Uber, the global ride‐hailing company. Choi said that autonomous vehicles will rely on arti icial intelli‐ gence that will enable it to learn from journeys, but also from times when driver is at the wheel, so making sure leet drivers are safe drivers will remain critical. • Changing your language: TCO to TCM (total cost of mobility)
– Hans Damen, partner at Fleet 360, a leet consulting company based in Europe. Damen said that full reliance on mobility can be four to 10 times less expensive than running a leased or owned leet. • Arming yourself for the MaaS (mobility-as-a-service) revolution — John Korte, vice president for mobility business development at Donlen, and Stuart Donnelly, senior director for group international sales at Sixt. Korte said Donlen is providing services for several ride‐hailing and service compa‐ nies, but that to date demand for mobility services from tradi‐ tional leet customers in North America is small, compared to Europe, where there is greater urbanisation and more robust public transit. Nevertheless, Donlen is creating programs to help leets create and support mobility solutions. Donnelly noted that Sixt has successfully launched a mobil‐ ity‐as‐a‐service application in Europe, with a platform that enables leet sponsors to manage a lexible, annual mobility budget for every employee on a monthly basis. Employees can allocate their budget as suits their needs and preferences across a wide range of transportation modes, and can even change their type of vehicle every six months. • Fleet electri ication trends and practicalities – Dawn Santelli, senior vice president of the international business team at LeasePlan USA, and Berno Kleinherenbrink , senior vice president at LeasePlan’s global headquarters in the Netherlands. Santelli said LeasePlan has been shifting its own European workforce from fossil fuel‐powered vehicles to elec‐ tric vehicles, with a goal of 100% electri ication by 2021. Kleinherenbrink said electrification is proceeding at a different pace in different countries, with Norway and the Netherlands leading the way. His company believes, however, that eventually, the internal combustion engine will disappear, and that all fleets will be 100% electric, largely because of governments’ goal to reduce greenhouse gas emissions. LeasePlan, which manages 14,000 customer electric vehicles around the world, continues to expand its electric vehicle leasing programme, where customer pricing can include not only the cost of the vehicle but the installa‐ tion of recharging stations. internationalfleetworld.com / 35
Jaguar I-Pace Does Jaguar’s first electric car meet expectations? Jonathan Musk finds out… SECTOR Small SUV PRICE €77.850 RANGE 480km WLTP CO2 0g/km
W
ith up to 20,000 I‐Pace destined for autonomous treatment courtesy of Waymo (formerly Google’s self‐driving car project) and a further 200 to be used around Heathrow Airport, Jaguar has already managed to make its electric mark in the world of fleet. If anything, it’s just the start. This isn’t a conversion. Similar in footprint to an F‐Pace, short overhangs and a 90kWh battery mounted between the axles mean Jaguar can claim XJ‐like interior space from its newcomer. Fit and finish is a cut above the brand’s other models, too, with a regular two‐plus‐three layout and similar boot capacity to the F‐Pace with the rear bench upright. Features such as a 10‐litre central storage bin you can fit your arm in, shelves under the rear seats and a small compartment under the bonnet are unusual but practical additions. S trim spec makes the most sense, with no immediately discernible difference other than a few missing toys compared to SE, HSE and the range‐topping First Edition. As with most modern cars, there’s too much tech to list. Conspicuous by its absence is any sort of pioneering range in colder climes using grid power to warm the battery autonomous tech, aside from radar‐controlled adaptive cruise before setting off. An additional 50km range can be attained control that also offers traffic driving. AEB, 360° parking from the smart heat pump that scavenges energy from camera and matrix LED headlamps are also stan‐ outside, even in sub‐zero temperatures. dard. Jaguar’s “most connected car” includes High and low regenerative braking settings FLEET FACT Amazon Alexa and HomeLink connectivity, as allow for single‐pedal driving or coasting as well as a 4G Wi‐Fi hotspot, six USB ports and desired and further energy recuperation, three 12V sockets too. High or low regen although in high mode it won’t hold itself on a Unique to I‐Pace is a redesigned TouchPro Duo allow single-pedal hill like Nissan’s e‐Pedal can. system with sat nav that takes weather, traffic, Charging is via a CCS port on the nearside or conventional climate control and charge into its calculations front wing, providing convenient compatibil‐ driving. to provide relatively accurate charge level gues‐ ity with thousands of charge points across timations at waypoints and your final destina‐ the UK and Europe. I‐Pace supports charge tion, alleviating some range anxiety. Not that you’ll have any, rates up to 100kW, or roughly 100km range per 15 with the car’s impressive 480km WLTP rated range. What’s minutes plugged in. more, preconditioning can provide an additional 100km F‐Type bucket seats ensure a sporty but comfortable ride, which is silky smooth and our car’s air suspension managed to hide the 2,153kg weight well. Height adjustment can either lower I‐Pace by 40mm for easier access, or +50mm for off‐ road driving – where it is impressively capable and has a wading depth of 500mm. The car also lowers automatically by 10mm at high speed to improve efficiency and stability. Jaguar’s usual pop‐up gear selector is absent; replaced by simple gear‐select buttons. Prod “D” for drive and away you go. The I‐Pace is relentlessly quick in a straight line, with 400hp and 696Nm that’s hardly surprising. What is surpris‐ ing, is it’s also quick around corners thanks to much of its weight being kept low in the chassis, giving a centre of grav‐ ity 113mm lower than that of an F‐Pace. The result is SUV looks with sports car handling. The I‐Pace is an impressive electric vehicle but a normal car and perhaps that’s Jaguar’s greatest achievement here. However, with its high asking price and lack of dedicated infrastructure, TCO will play a larger role than usual for any fleet decision.
36 / internationalfleetworld.com
what we think With its useful real-world 480km range and low TCO, the I-Pace should appeal to fleets in a way conventional Jaguars cannot. However, EV infrastructure may prove to be Jaguar’s biggest sales hurdle.
highlights 480km WLTP-rated range easily achievable. 100kW charge rate allows 100km range in 15 minutes. 0-62mph in 4.8 seconds.
key fleet model Jaguar I-Pace S
internationalfleetworld.com / 37
Mercedes-Benz A-Class Already a cornerstone of the range, the new A-Class feels a cut above its rivals, says Alex Grant. SECTOR Lower Medium PRICE €31,000-€40,000 FUEL 4.1-6.9l/100km CO2 108-149g/km
F
or all the lure of its premium badge, the A‐Class never really found its place until, in 2012, Mercedes‐Benz rein‐ vented its compact MPV as a sporty hatchback. This was the car buyers had wanted; stylish, tech‐rich, with the residu‐ als and efficiency to put it within reach of company car buyers. And it hit the ground running. Six years on, it’s part of a five‐model compact car range and a cornerstone of the global line‐up. Last year, 620,000 units, or a quarter of the brand’s total volume, were on the A‐Class platform. A‐Class drivers are, on average, 10 years younger than its predecessor and 60% are new to Mercedes‐Benz, while the next generation of small cars will include eight models. This is the first. There’s no reinvention this time. It’s new from the ground up, and marginally larger, but focused on addressing the old car’s weaker points rather than starting again. So there’s a noticeable increase in passenger space inside – especially in the back – and the boot has an extra carry‐on bag of volume, with two‐piece rear lamps that no longer cut into the boot opening. The pillars are reprofiled to improve driver visibility, new car. With its unique bodykit, single‐piece sport seats and though it’s still a little gloomy in the back. 18‐inch wheels, it’s a marked step up from the plainer, and Ride comfort, which was never the old car’s strongest point, very similar looking, low and mid‐level trims. All versions was harder to judge at the launch. The test cars include satellite navigation and digital instru‐ were equipped with optional adaptive suspen‐ ments in one sweeping, glass‐covered binnacle, FLEET FACT sion, which wasn’t overly supple when set to with the option to add Executive and Premium Comfort, while Sport found imperfections in well‐ packs to spec them up to larger screens, but the surfaced roads. Most markets will get fixed‐rate only standard‐fit leather upholstery is a man‐ The UK is sport suspension, and less favourable surfaces to made alternative. the largest deal with, while the more sophisticated multi‐link It’s impressive otherwise, though. The cabin is market for rear axle fitted to the old car will only come with fit for an executive car, beautifully built and with the A-Class. AMG Line versions this time, to offset the effects infinitely changeable display and lighting of larger wheels. That’s likely to give lower‐spec options, plus the heavily customisable infotain‐ versions a more unsettled ride. ment homescreen, with Alexa‐like “Hey Mercedes…” voice A‐Class customers tend to opt for high trim levels, so AMG‐ commands to please the tech‐savvy. Novelties aside, naviga‐ styled versions are likely to continue to be popular with the tion which can overlay directions and house numbers over a live image from the forward‐facing camera is a highlight, but it’s a pricey option. The A‐Class can also be integrated with Mercedes‐Benz’s multi‐brand fleet management system, or shared via a smartphone app based on the Car2Go platform, though the latter relies on leaving a deactivated key in the car, unlike similar rivals. There are three engines at launch; the big‐selling 1.5‐litre diesel, upgraded to 116hp and fitted with AdBlue injection, and petrols at 163hp and 225hp, all fitted with seven‐speed automatic gearboxes. The small diesel remains a willing performer, if a little noisy and prone to buzzing through the cabin at idle, but the 150hp 2.0‐litre diesel from the E‐Class is likely to follow. Also worth noting, all versions now feature 43‐ litre fuel tanks instead of 50 litres in the outgoing car, which could be a frustrating issue for long‐distance drivers. Signs are, though, that they’d want for little else. Having found its place, the A‐Class has matured into a very desirable, well‐rounded entry point to the range.
38 / internationalfleetworld.com
what we think The A-Class has all the bells and whistles to attract young drivers, and some genuinely useful technology for fleets too. With more compact cars en route, and an EV in the pipeline, it feels it's in a good place to build on 2012’s well-targeted reinvention.
highlights Frugal 1.5-litre diesel offered in all trim levels All-new infotainment with integrated telematics and car sharing Larger, more accessible boot and extra cabin space
key fleet model Mercedes-Benz A 180 D AMG Line internationalfleetworld.com / 39
Kia Stinger GT Kia’s 370hp flagship is a turning point beyond its modest sales expectations, says Alex Grant. SECTOR Compact Executive PRICE €55,900 FUEL 9.9l/100km CO2 225g/km
C
onfidence; it’s a driving force at Kia lately, and justifi‐ through a large hatchback. Its infotainment is familiar from ably so having spent a decade chipping away at main‐ other Kias, including a birds‐eye view for parking – an essen‐ stream rivals’ market shares with good‐looking, tial feature, given the otherwise poor visibility. high‐quality competitively priced products. Even so, the Giving the Stinger agility to match that styling fell to ex‐ Stinger – a rear‐drive grand‐tourer unrelated to anything else BMW M Division boss, now head of chassis engineering at it sells in Europe – feels like a giant leap into the unknown. Hyundai and Kia, Albert Biermann, and it shows. The chas‐ Reviving the spirit of high‐performance 1970s Continent‐ sis has all the confidence and poise of a coupe when you crossers, the flagship has premium brand performance want it, while also being surprisingly compliant the rest of saloons and coupes in its crosshair. It’s the production real‐ the time. Plenty of premium brand cars can’t match the isation of 2011’s GT concept, albeit with two extra doors, comfort on offer here – it’s not just a saloon with heavy and shows Kia can build truly desirable upmarket products steering and stiff suspension, the Stinger is the real deal. as well as stylish hatchbacks and SUVs. The GT is the full‐fat version, getting a This isn’t, strictly speaking, new terri‐ 370hp twin‐turbocharged 3.3‐litre V6 tory; the price point is in line with the petrol engine and an eight‐speed auto‐ Sorento’s popular top trim levels, and the matic transmission. It’ll reach 62mph in platform is shared with the K9 luxury five seconds, putting the power down via a saloon sold in other markets. Which mechanical limited slip differential and, means production can be stepped up, with peak torque available from 1,300 though volumes are conservative, includ‐ to 4,500rpm, in‐gear acceleration is ing a significant fleet share. predictably effortless. In turn, it’s barely There are no half measures here. ticking over at highway speeds, settling Designed under Peter Schreyer, it’s got its between 8.0 and 9.0l/100km with a little own sense of style, with low‐slung body‐ restraint. Kia is also offering four‐cylinder work stretched over wide tracks and petrol and diesel engines, though the latter large wheels and tuned for high‐speed is a little behind rivals at 153g/km CO2. aerodynamics. But it’s not garish with it, Downsides are minor. The 60‐litre fuel The Stinger is the sort of aside from the fake bonnet vents filling tank offers a range of 600‐650km, so multi-talented tourer that with water when it rains. you’ll be a familiar face at the local filling could have come from Likewise, the cabin feels suitably station, and the petrol engines require premium, with supportive bucket seats 6,000‐mile, six‐month servicing. However decades of heritage, and trimmed in soft leather, acoustic glass and bodes really well for future the Stinger gets an unrivalled 100,000‐ aluminium accents throughout. It’s let mile, seven‐year warranty, as offered on models. All it lacks is a down by a few hard, plasticky parts, but the rest of the Kia line‐up. Drivers who premium brand badge. offers ample space for adults front and can’t overlook the badge on the bonnet rear, with a generous boot easily accessed are missing out.
what we think
40 / internationalfleetworld.com
Ford Kuga ST-Line Can Ford’s sportiest SUV stop drivers migrating to the premium brands? Alex Grant finds out. SECTOR Medium SUV PRICE €31,000-€40,000 FUEL 4.4-8.7l/100km CO2 115-199g/km
F
ord is as much a mainstay of Europe’s fleet market as it is a household name for consumers, with businesses long reliant on its full‐size family cars. But any stereo‐ type of the Mondeo as the archetypal company car is not rapidly becoming outdated, because those with a choice are opting for the Kuga instead. SUVs are big business for Ford; its three‐model line‐up was refreshed last year, getting consistent styling and top trim levels for European customers. Ford sold 230,000 of them in Europe last year, 150,000 of which were Kugas. That’s outselling the Mondeo three to one. The ST‐Line trim is an important introduction for a tradi‐ tionally top‐weighted sector, adding a bodykit with 18‐inch wheels and a leather and alcantara sports interior plus most of the useful options. It adds presence to what’s already one of this segment’s largest cars. This takes list pricing into premium SUV territory, and the Kuga feels like a better fit here since its last refresh. Soft plastics, silver accents, a thick steering wheel and larger screen all lift the cabin, and there’s plenty of space on board. But it’s still cluttered, with buttons hidden behind the gear‐ stick and infotainment that’s less intuitive than some rivals. Unusually, compared to other ST‐Line products, the
Kuga is offered with all three diesel engines. The 120hp 1.5‐litre diesel is a good fleet option at 115g/km CO2, though the auto takes that to 124g/km. And the 2.0‐litre diesel is available with 150hp or 180hp, the latter always with four‐wheel drive. We tried the 180hp unit with the PowerShift auto; a good spec for motorway cruising, though thirsty at around 7.0l/100km, and quite sensitive to rough surfaces thanks to its large wheels. Opt for the Mondeo‐like, 4.7l/100km 150hp unit and front‐wheel drive, and the Kuga makes a great alternative to the traditional company car options.
Renault Captur MPV flexibility in fashionable SUV form, updates to the Captur are predictably light, says Alex Grant. SECTOR Compact SUV PRICE €17,000-€29,000 FUEL 3.6-5.5l/100km CO2 95-125g/km
M
ixing Modus‐like MPV practicality with bulked‐ out Clio styling, the Captur gave Renault an early entry into the growing compact SUV class. JATO figures show it’s still the best‐seller, and a fifth of the brand’s volume in Europe, only 2,000 units behind the ubiquitous Ford Focus last year. Good going for a car that’s almost five years old. This car paved the way for the larger Kadjar and Koleos, and in turn they’ve given styling cues to the updated ver‐ sion. It’s a neat redesign, adding satin silver skid plates and C‐shaped daytime running lights, while upgrading the
technology on board; the Captur now features the usual driver assistance functions, and the latest R‐Link infotainment is standard on top versions, or optional elsewhere. This now supports Android Auto, but not Apple CarPlay, and it’s starting to feel old compared to rivals’ systems. Vivid colours and contrasting roofs were popular on the old car; they’ve been kept. As has practicality good enough to question how it could be platform‐shared with the pokey Nissan Juke. The boxy roofline offers just enough headroom for three adults (or two child seats) in the back, the bench slides to extend what’s already a good‐size boot with a reversible floor, and the seat covers can be unzipped and washed. Initiale Paris versions even include Nappa leather upholstery. There are four engines; 90hp and 120hp petrols (the former is the best‐seller) and 90hp and 110hp diesels. The 110bhp diesel adds respectable motorway refine‐ ment to the Captur’s supermini‐like agility (and the related slightly over‐firm ride), in part because it gets six gears instead of five on the 90hp version – and in turn is likely to offer better real‐world economy, despite brochure figures suggesting the opposite.
internationalfleetworld.com / 41
Volkswagen Touareg The new tech-laden Touareg aims to continue its fleet appeal. By Jonathan Musk. SECTOR Large SUV PRICE €60.675 FUEL 6.9l/100km CO2 182g/km
T
he new third‐generation Touareg aims to raise the bar A new Innovision Cockpit combines a 12‐inch driver’s for large SUVs with its blend of technology, perfor‐ display and a curved 15‐inch central touchscreen to replace mance and build quality. Joining Volkswagen’s SUV every physical button bar volume. UK standard equipment line‐up as flag bearer, Volkswagen expects a fleet‐strong sales lists are yet to be formalised, but Matrix LED headlamps, mix in Europe, as for its predecessor, although the new car is infrared ‘Night Vision’, trailer‐assist, air suspension and aimed at the Chinese market in particular. And, despite four‐wheel steering are all impressive options. current market trends, diesel is expected to outsell petrol 4:1. Safety features range from Front Cross Traffic Assist, to Resting on a new platform and with China‐friendly Proactive Passenger Protection. There’s also Traffic Jam styling – particularly at the front‐end – plus permanent Assist and adaptive cruise control with sat nav‐based speed all‐wheel drive, the new Touareg has its sights set on the alteration that allows the car to reduce speed automatically. Volvo XC90, BMW X5, Jaguar F‐Pace and Volkswagen While none of the tech is hugely innovative, like Heinz Group rivals. baked beans, Volkswagen has executed For Europe, the only engine currently them uncommonly well. available is the impressive Euro 6d‐TEMP On the road, and despite its obvious compliant 286hp 3.0‐litre diesel, with a bulk, it’s a better drive than most of its fleet‐friendly 231hp unit to follow. A immediate competition. The 3.0‐litre TDI further 340hp V6 petrol and range‐ V6 provides impressive economy and topping 421hp V8 diesel will be added to silence off‐boil, or is accompanied by a the European line‐up thereafter. Finally, a pleasingly petrol‐esque exhaust note on 367hp plug‐in hybrid will also be avail‐ hard acceleration with only the occasional able in China next year. low‐rev diesel grumble. 0‐100kph takes a Despite being a mobile super‐computer, brisk 6.1 seconds and, matched with the Touareg managed to lose a remarkable latest DSG transmission, it’s difficult to 106kg overall weight yet add 113 litres fault aside from an occasional hesitancy more luggage space when compared to its if driving more enthusiastically. predecessor. The new Touareg is light years ahead of Great though it is, the The European market gets Atmosphere, its predecessor and a class‐leading new Touareg isn’t likely Elegance and R‐Line customisable trim contender, but XC90 owners won’t be to ruffle the feathers of options. Unfortunately, the new Touareg jumping ship just yet. Assured quality is lacks the usual practicality associated with the new Touareg’s real strength while strong competition in an SUV, with unusually small cabin much of its most impressive technology this sector but as an stowage. Rear occupants are well catered remains optional. But, if you don’t need impressive all-rounder, for aside from a slightly uncomfortable seven seats this should certainly be it is well worth a look. bench seat and boot capacity is generous, amongst your top three. First customer although there’s no seven‐seat option. deliveries are expected by end of June.
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