International Fleet World March 2012 by Fleet World Group

The new

Mokka

Think big. Ride clever. World premiere at the Geneva Motor Show.

www.opel.com Fuel consumption combined 7.0â&#x20AC;&#x201C;4.9 l/100 km; CO2 emissions combined 159â&#x20AC;&#x201C;129 g/km (according to R (EC) No. 715/2007).

INTERNATIONAL

FLEETW RLD internationalfleetworld.com

The new

MOKKA

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

www.opel.com Fuel consumption combined 7.0–4.9 l/100 km; CO2 emissions combined 159–129 g/km (according to R (EC) No. 715/2007).

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

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

STAG Publications

VIEWPOINT

CONTENTS

It’s probably true to say that fleets have never had such a choice of fuel before. Apart from our staple diet of petrol and diesel, some forecasters are predicting that there are vast reserves of natural gas from shale deposits, enough to supply us for decades to come, even if there are questions about extracting energy from such deposits. In the longer term, viable bio-fuel could yet be possible. Meanwhile, electrification is destined to keep marching forward. We take a look at Canada in this issue and if any country could claim to have the greatest potential for electric vehicles, it is probably this vast North American country which generates some 60% of its electricity from hydro-electric power. Pure electric vehicles may have limited potential for crossing from Atlantic to Pacific coast but Canadian cities may be better placed than any other to take advantage of the potential from its renewable electricity. The potential isn’t lost on Canadian politicians either, who have plans for 500,000 EVs on Canada’s roads by 2018. Ambitious, certainly, but also an opportunity for fleets. The European car market got off to a cautious start in 2012 as the Eurozone crisis threatened to de-rail the recovery, so perhaps news that Greece has come to a bailout arrangement with the EU will stop the stumble from turning into another fall. Let’s hope so.

04 News Analysis 10 News Analysis > LCV Preview of the forthcoming Merc Citan.

11 2012 Fleet Calendar What’s in the IFW calendar for 2012...

12 The Environment Getting to know the different types of EVs.

16 The Environment How oil resources will affect global fleets.

19 Fleet Strategy European residual value confidence.

20 EV & Low CO2 Fleet Show 2012 Fleet World’s event in April at Silverstone.

22 NAIAS 2012 All the future fleet stars at Detroit.

28 Fleet Focus: CANADA How EVs look set to shape the industry.

32 Operator Profile SIXT

34 Fleet Profile DAIMLER TRUCKS

41 Launch Report BMW 3 Series / Peugeot 3008 / Chevrolet Aveo / Ford Ranger.

46 S.W.O.T. Chrysler Ypsilon • Lancia Ypsilon

48 Fleet in figures

12 22 32 42

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John Kendall Editor

IFW March 2012

news analysis

BMW’s largest showroom opens in Abu Dhabi Abu Dhabi is the location for BMW’s largest showroom worldwide, which was officially opened in February by BMW board member Ian Robertson in the presence of the vice-chairman of the Abu Dhabi Executive Council, Sheikh Hazza bin Zayed Al Nahyan. The local importer, Abu Dhabi motors has invested some €62 million in the 35,000m2 showroom, which has taken three years to build. The facility incorporates separate showrooms and sales areas for BMW, Mini, Rolls-Royce and BMW motorcycles. It will have over 70 cars and 10 motorcycles on display. 18,567 BMWs and Minis were sold in the Middle East last year, a new sales record for the region. The new showroom will employ over 450 staff.

Moody’s forecasts European light vehicle decline for 2012 Moody’s credit rating agency is predicting a downturn in light vehicle demand in Western Europe of 6.2% to 13.4 million units for 2012, a revision to its forecast last September for zero growth during the year. While the company thinks that most European manufacturers are better positioned to withstand a downturn than they were in 2008, it says that Peugeot’s rating is most exposed. Moody’s says it has tested the impact of a 5, 10 and ”very unlikely” 20% decline in European revenues on motor manufacturers in the region. The company says that Peugeot’s rating is the most exposed in the 5 and 10% scenarios. According to Falk Frey, a senior vice president in Moody's Corporate Finance Group, ”A 20% downside case could create potential pressure on Fiat's rating and could lead us to moving our positive outlooks on Daimler and Volkswagen's ratings to stable. Even a 20% decline in light vehicle demand in Europe would have little effect on BMW's earnings and credit metrics, on an isolated basis.” Mr Frey says that while BMW, Daimler and Volkswagen have all restored their EBITA margins to levels similar to those before the 2008/2009 downturn, Peugeot, Fiat and Renault have not. However, he adds ”We believe French OEMs are better positioned to avoid the high cash burn that occurred in the last downturn because inventories as a percentage of sales are now below the level they were in the second half of 2008.”

Daimler Trucks JV gathers momentum in China Daimler and its Chinese partner Beiqi Foton Motor Co celebrated the reception of the business licence for the joint venture in February. Known as the Beijing Foton Daimler Automotive Co (BFDA), it will build medium and heavy-duty trucks for the Chinese market, operating from the Foton Auman facility in the Huairou district of Beijing. Volume in this truck segment has doubled in China over the past five years and annual sales stand at around one million vehicles. In 2011 China accounted for around 40% of total sales of medium and heavy-duty trucks worldwide. ”Our 50% stake in Beijing Foton Daimler Automotive will enable us to play a major role in the Chinese truck market and give us access to the attractive volume segment,” commented Head of Daimler Trucks and Buses, Andreas Renschler. Daimler will share responsibility for BFDA’s finance, IT, quality management and development departments. The company will also set up the production facility for the manufacture of Daimler’s heavy duty OM 457 engine at BFDA headquarters. The first jointly developed truck is due to be produced in the third quarter of the year.

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Foton began truck manufacture in 1998 and last year sold over 100,000 medium and heavy-duty trucks. A second plant is currently being developed to increase BFDA’s annual manufacturing capacity to 160,000 vehicles.

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LeasePlan profits rise The fleet and vehicle management company LeasePlan has announced a 13% increase in net profits to €225 million for 2011, up from €199 million in 2010. During the year, the company increased the number of vehicles it manages by 2.7% to over 1.3 million. Speaking to IFW, LeasePlan’s chairman and CEO, Vahid Daemi said, ”We feel we are coming back to pre-crisis levels of profitability. There are a number of elements within that.” These include an improvement in the margin for the interest bearing assets, such as leases, that LeasePlan holds on its balance sheet. Improving management of the company’s suppliers has also been a source of improved revenue, ”That is to do with the fact that we have worked very hard and it’s part of our strategy to build a strong co-operation with many suppliers,” says Mr. Daemi. ”Effectively bringing suppliers and customers together has improved that area of profitability for us. ”The other element that we have focused on is businesses in the SME sector, which have given us further profitability because that sector has traditionally higher interest margins. We’ve seen the levels of bad debt substantially reduce back to pre-crisis levels. ”In the international business, we have seen a stronger focus. Some customers have been looking at downsizing, especially in Europe because of the market conditions. At the same time, the focus has been very much on international business. Because of the lack of liquidity they want to focus on their core business and find professionals to deal with their cars,” continues Mr. Daemi. One of the problems that LeasePlan had to face in the financial crisis was that 17 out of 20 countries simultaneously experienced a collapse in residual values. In some countries such as the UK and the Netherlands, these prices recovered fairly quickly, whereas countries such as Spain, Portugal and Greece have seen very weak recoveries. ”Going forward, it’s very difficult to predict,” says Mr. Daemi, ”I think that countries such as Portugal, Spain and Greece will continue to have difficulties. In Germany, we have seen prices changing. For six months last year, prices started moving up again, then they started dropping again. It’s very difficult to predict where prices are going to go.” Looking at the prospects for the coming year, we asked Mr. Daemi where he expects to see growth in 2012, ”I believe we will see continued growth in the SME market. I know that a lot of SMEs are having difficulty, suffering with liquidity, but at the same time because of that, a lot of them want to lease cars, so that is definitely a growth area. We see some possibilities in terms of acquisitions and more consolidation of the businesses. On the international side, I still see opportunities for growth.” LeasePlan’s total assets grew from €17.5 billion to €18.9 billion during 2011 and solvency, measured using the Tier 1 ratio stood at 14.9% at the end of 2011, compared with 14.6% a year earlier. The BIS ratio also stood at 14.9% compared with 16.7% on 31 December 2010.

in brief... CHP Consulting opens Paris office CHP Consulting, which supplies ALFA software systems to asset finance companies around the world, is to open an office in Paris. The company plans to establish itself in the French asset finance market and has relaunched its website having added a French language version.

Ford lands EuroNCAP awards The Ford Focus has been named Europe’s ”Best in Class” small family car by Euro NCAP following the car’s five-star Euro NCAP rating, and four Euro NCAP Advanced rewards, for safety features cited as a record for a mass market car. The Ranger also gained a mention as the only pickup truck to earn a five star rating.

ARI implements high performance analytics Fleet services provider ARI has announced that it will use high performance analytics technology to make a step change in the reporting speed of its web-based fleet management system. The SAP HANA platform will be integrated into the system by mid-2012.

Sonic renews Manheim deal US car retailer Sonic Automotive has renewed its two-year agreement with Manheim and plans to include electronic condition reports on all vehicles sold.

Vahid Daemi, Chairman and CEO, LeasePlan

VW CV sales up January sales of Volkswagen commercial vehicles reached 39,500 in January, up 10.5% on January 2011. Western European sales rose 6.7% to 20,500 and in Eastern Europe sales were up 50% to 2,800. South American sales rose 14.2% to 11,800.

IFW March 2012

news analysis

Jeep targets B-segment Jeep, the famous US 4x4 brand, is confident it can boost its sales in Europe from just 25,000 last year to a whopping 125,000 in 2014 thanks to a refreshed model line-up and its alliance with Fiat. Joe Veltri, the head of product planning who also leads Jeep's European operations, said that a new B-segment model, a first in the brand's line-up, will be launched next year.

Consolidate or die says Fiat chief Marchionne There needs to be another round of consolidation of the motor industry worldwide or some companies will not survive, said Fiat and Chrysler chief Sergio Marchionne. He said: ”You need to be a mass marketer or be strong in premium to make money, everything in between is perilous. Particularly in Europe it is patently evident that apart from overcapacity issues, the real problems have to do with economies of scale. ”Make no mistake, without our alliance with Chrysler two years ago there was a danger that Fiat would have been marginalised. In Europe, Fiat alone is not economically viable and the price competition in the region is hurting any attempt to make money. ”With Chrysler we have the opportunity to share development costs and we can run a number of key vehicles off the same basic architecture for both brands. The Dodge Dart we have unveiled at Detroit is based on the Alfa Giulietta. A car similar to this will be available in China in 2012.” Responding to questions over rumours of a further Fiat-Chrysler alliance with Peugeot of France, Marchionne said there had been no discussions, but he did not rule out tie-ups with other companies if opportunities arose. ”But you have to be careful how you manage multi-brand strategies,” he said. ”Ford has done well by bringing everything back under the Blue Oval with it's One Ford strategy.” He did confirm that the alliance is in discussion with its Turkish partner Tofas and the country's government about a Turkish brand. ”It's an interesting idea. But you can't start a brand from scratch, you need a solid base to start from. We could certainly provide an architecture on which to base a vehicle but then the rest needs to be done locally. ”That includes the component sourcing, the vehicle body and styling etc. Then we would want to be very clear about which market sector such a car competed with and where else it might be sold outside the country. We don't want to increase the competition.”

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Volvo to develop stand-alone models The technical tie-up between Volvo and its former owner Ford will have dissolved completely by 2017-18 and the Swedes will be doing everything in-house, says CEO Stefan Jacoby. Volvo is developing a new platform under the name SPA (Scaleable Product Architecture), capable of underpinning 70 to 80% of all the company's future cars, and is also developing new powertrains under the VEA (Volvo Environmental Architecture) programme. The first fruits of that work will be seen at the Geneva Show this month when Volvo reveals a single car to replace today's Ford-based S40 saloon and V50 estate. ”The sweet spot in this segment is a hatchback, so there will no longer be a small estate,” says Jacoby. ”It will be an all-new V40 which in normal times we will produce at the rate of 90,000 a year. ”We will focus on four-cylinder engines with a capacity of 2.0 litres, diesel and petrol, with different outputs ranging from 150 to 300-plus horsepower.” It will also remain Volvo's smallest car, alongside the C30, for the foreseeable future: Volvo has no intention of following Audi into the supermini market. ”The C-segment (compact family cars) is the limit for us for the time being,” said Jacoby. ”We have set the priority of replacing our existing portfolio and will look later at entering a new segment, but whether that is the A-segment (superminis) is questionable.” Jacoby sees Volvo as a company that should be strong in the SUV market, and admits he would like to see a model below the current XC60. ”Ideally we would have something smaller than the XC60 and there are a couple of segments it makes sense to go into,” he said, ”but we have to be careful about getting into too many niches.” Jacoby also believes that within five years almost every Volvo will feature some form of electrification, from stopstart systems to full hybrid power. The company will launch the V60 diesel-electric plug-in hybrid in Europe later this year – at the Detroit show it displayed an XC60 with petrol-electric power. This uses a similar electric system to that in the V60 hybrid with a 280hp petrol engine being developed under the VEA programme. ”We are preparing a gasoline hybrid for the US market, but it is too early to say which model it will go into,” Jacoby said.

for the latest news, visit internationalfleetworld.com

Veloster Turbo for Europe Hyundai's new 200hp Veloster Turbo sports car is heading for Europe after receiving its world debut at the Detroit show. The Veloster will arrive on the US market this summer as a halo model to ”attract our next generation of buyers,” said Mike O'Brien, vice president, product and corporate planning, Hyundai Motor America. In the US and Europe it will rival models such as the Volkswagen GTI, Honda Civic Si and MINI Cooper/Clubman S, although O'Brien added that it has a better power-to-weight ratio than all of them, and a unique sport-tuned steering and suspension hardware. It is powered by a new 1.6-litre turbocharged petrol direct injection engine mated to a six-speed automatic or manual transmission. The Veloster Turbo is the first vehicle in Hyundai's 7/11 product initiative (7 new or redesigned models in the next 11 months). The South Korean brand has just completed its 24/7 strategy: 7 new or redesigned models in 24 months, with the debut of the new Azera. Hyundai also launched its refreshed 274hp, rear-wheel drive Genesis Coupe 2.0 Turbo, and completed a good day at the Detroit Show with the announcement that its Elantra model had won the Car of the Year Award from US journalists.

in brief... Fisker Automotive extends into Canada EV maker Fisker will sell its Karma luxury car in Canada through sites in Toronto, Calgary and Vancouver. Fisker will sell through Canada’s largest dealer group, the Dilawri Group, in Toronto and Calgary, and the Fields Automotive Group in Vancouver. Fisker now sells through 29 dealerships in North America.

Renault Nissan Alliance sells over 8 million The Renault Nissan Alliance sold 8,029,222 vehicles in 2011, 10.3% more than in 2010. Renault sold 2,722,062, up 3.6% and Nissan sold 4,669,981, up 14.4%. AvtoVAZ Lada accounted for 637,179 sales, up 10.9% on 2010.

Volvo Trucks North American safety awards

Kia America to outsell Korea in 2012? This year could prove a landmark for Kia America, which could overtake the motherland for the first time in terms of car sales. The South Korean brand sold 485,000 cars in the US last year, ahead of the whole of Europe at 478,000 and not far behind its home country, which recorded 493,000 sales during 2011. Vice president of sales Tom Loveless is optimistic that the US will become number one this year. ”For the past three years we have been the fastest growing brand in North America during which time sales have grown 78%. ”We have set new sales records in each of the past 16 months despite the economic climate. Since 2007 our market share has grown from 1.8% to 3.8%.” He traces the success story back to two significant events, the launch of the Kia Soul in the spring of 2009 and the opening of the Korean company's factory in Georgia. The plant is now producing 360,000 vehicles a year, starting with the Sorento SUV while the new Optima has just been added. Loveless said: ”In 2012 we will have a full year of Optima, which is in the mid-size segment – the largest sector in the country. We are also expecting great things from Rio in the sub-compact market, which is growing fast.” He described the Soul as a ”game-changer” for the company with sales of more than 100,000 models a year. ”It is appealing to buyers of all ages. We market it to young people but no one thinks they are old in America. We are appealing to customers on so many levels in terms of design, technology, safety, quality and fuel economy.”

Volvo Trucks and Michelin will sponsor a safety award again in 2012, which will recognise two North American fleets for their commitment to safety. Each award winner will receive $25,000 to be used towards their safetyrelated activities.

UK government announces eligible electric vans UK van buyers choosing one of seven electric vans are eligible for a grant of up to £8,000 towards the vehicle. The list includes the Azure Dynamics/Ford Transit Connect Electric, MercedesBenz Vito E-Cell, Renault Kangoo ZE, Smith Electric Edison, Faam Ecomile and Jolly 2000 and Mia-electric Mia U.

IFW March 2012

A Daimler Brand

Just 114 g /km CO2: even in silver metallic, this is a green company car. With emissions of just 114 g /km CO2, the B 180 CDI BlueEFFICIENCY sets new benchmarks when it comes to efficiency – thanks to state-of-the-art technological features such as the ECO start /stop function fitted as standard and new 7G-DCT dual-clutch transmission. The new B-Class combines low fuel consumption and CO2 values with enhanced driving pleasure, high safety standards and a roomy interior space concept. www.mercedes-benz.com/fleet Fuel consumption urban /extra-urban /combined: 5.6–5.4 /4.1–3.8 /4.6–4.4 l /100 km; combined CO2 emissions: 121–114 g /km.* *Figures do not relate to the specific emissions or fuel consumption of any individual vehicle, do not form part of any offer and are intended solely to aid comparison between different types of vehicle.

news analysis > LCV

COMING SOON... Mercedes-Benz Citan

Mercedes-Benz’s new Citroen Berlingo/ Volkswagen Caddy rivalling Citan will give the manufacturer’s European fleet sales a valuable boost when it appears in dealerships in mainland Europe at the end of this year, believes van sales and marketing global head, Andreas Burkhart. The manufacturer’s first serious foray into the high-cube van market for several years, it will give Mercedes the ability to offer operators who want a single-badge deal a more comprehensive light commercial line up. ”It will give us access to customers we haven’t been able to get into before,” he said. ”Admittedly fleet registrations are only likely to account for 30% of Citan’s sales volume,” Burkhart said, ”but the greater ability it gives Mercedes to fulfil one-badge orders should help increase fleet sales of Vito and Sprinter,” he suggested. Nor should Citan’s own value to fleets be dismissed. ”Prominent companies we are talking to about it include DHL,” he stated. One of the fruits of a joint venture between Renault and Daimler, MercedesBenz’s parent, Citan is based on a Kangoo platform, uses Renault diesel engines but has a significant Mercedes content. It includes a completely-restyled front, with a different grille, bumper, bonnet and different headlamps, and a cab interior that is unique to the Three Pointed Star. ”The seats, steering and suspension tuning are all pure Mercedes,” said worldwide

internationalfleetworld.com

head of Mercedes-Benz’s van operation, Volker Mornhinweg. To be built at the Renault plant at Maubeuge in France on the same assembly line as Kangoo, Citan will be marketed with one roof height, two gross weights and three overall lengths. Set to make its public debut at the IAA van and truck show in Hanover, Germany, in September, it will be marketed as a crew bus with rear seating accommodation plus a separate cargo area at the back, as well as in van guise, and handled solely through commercial vehicle dealerships.

”The mid-length model will be the volume seller and we should sell from 30,000 to 50,000 Citans in 2013, the vehicle’s first full year of availability,” Burkhart predicted. It may eventually be sold outside Europe. To date Mercedes has only released the sketchiest of technical details, but Citan’s likely maximum load cube will be 4.0m3 with a likely maximum payload capacity of 800kg, depending on the model selected. ESP will be fitted as standard, a low-CO2 BlueEffi-

ciency model will be included in the line-up, petrol engines will be available and an electric model will be added to the range too. Burkhart has doubts about the sales potential of electric vans at present however, despite the availability of the Vito ECELL and Renault’s introduction of the competitively-priced Kangoo Van Z.E. He pointed out that battery-powered light commercials still have a limited range and tend to be expensive – a major stumbling block he feels given the tight profit margins so many potential customers have to work on in today’s economic climate. ”The future is electric, we know that, it’s the right approach and a good solution, but in the present state of affairs, our customers are calling for affordable, cleanerrunning and efficient internal combustion engines,” he said. Mornhinweg believes that Citan – the name is derived from City and Titan – will allow Mercedes to tap into a growing sector of the European light commercial market. ”Small vans accounted for 32% of registrations in Western Europe in 1990 but that had risen to 45% by 2010,” he said. Any concerns Mercedes customers may have about the ability of Renault to meet their quality aspirations will prove groundless Burkhart contended. The vehicle will be built to Mercedes standards he insisted – and that includes the electrical system – and Mercedes engineers will inspect Citans as they roll off the assembly line.

2012 fleet calendar

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

March 8-18 Geneva 82nd International Motor Show (PC) www.salon-auto.ch 22-1 April Zagreb International Motor Show (PC, LCV) www.zv.hr/autoshow 27-31 Belgrade International Motor Show (CV) www.belgradefair.rs 28-8 April Bangkok International Auto Show (PC, LCV) www.bangkok-motorshow.com April 17-21 Amsterdam International Motor Show (CV) www.autorai.nl 18 EV & Low CO2 Fleet Show, Silverstone Circuit, UK (PC, LCV) www.evfleetshow.co.uk 21-24 NAFA Institute and Expo, St Louis, Missouri www.nafa.org/conference 24-26 The Commercial Vehicle Show, Birmingham, UK (CV) www.cvshow.com 25-2 May Beijing International Automotive Exhibition (PC, CV) www.china-autoshow.com June 6-10 Brno Autotec (CV) www.bvv.cz 14 Fleet Safety Forum Awards, Birmingham, UK www.fleetsafetyforum.org/events August 31-9 Sept Moscow Auto Salon (PC) www.oar-info.ru September 20-27 Hanover 64th International Motor Show (CV) www.iaa.de 22-30 Jakarta, 20th Indonesian International Motor Show (PC, LCV) www.dyandra.com 25-26 National Association of Police Fleet Managers Conference and Exhibition, Peterborough, UK www.napfmevent.org.uk 29-14 October Paris Mondiale de l’Automobile (PC, LCV) www.mondial-automobile.com October 10-12 Kiev International Motor Show, TIR’2012 (CV) www.autoexpo.ua 20-28 Sydney International Motor Show (PC, LCV) www.motorshow.com.au 24-4 November São Paulo, 27th International Automobile Trade Show (PC, LCV) www.salaodoautomovel.com.br November 2-11 Istanbul International Auto Show (PC) www.odd.org.tr 30-9 December Los Angeles Auto Show (PC) www.laautoshow.com December 7-16 Bologna Motor Show, International Automobile Exhibition (PC, LCV) www.gl-events.it KEY: PC – passenger cars // LCV – light commercial vehicles // CV – commercial vehicles

IFW March 2012

the environment

Know your BEV from your HEV from your REV? With an ever-increasing choice of electric and hybrid drivetrains available, Alex Grant explains the different technologies. Battery Electric Vehicles (BEVs)

☺

Battery electric, or pure electric, vehicles are only ever powered by electricity, meaning zero CO2 emissions at the point of use. The drivetrain usually consists of one or more electric motors, with a large battery pack charged from a conventional plug socket or public charging point. PROS: BEVs have large benefits for cutting inner-city smog, but are also suited to rural commuting where it can be more convenient to recharge at home than to go to the nearest fuel station. Modern electric powertrains allow performance to rival conventional cars, while recharging costs €2 or less, tax costs are low and the low number of moving parts keeps servicing prices down too. CONS: Manufacturing long-range batteries is expensive, which means production vehicles typically have a range of up to 160 km and cost more to buy than a conventional rival. Because the technology is new, uncertainty about longevity is keeping residual values low. Charging a fully depleted battery takes up to eight hours, which makes them impractical for long journeys, and not all drivers have a suitable charging space outside their home or office. The batteries are also heavy – another factor limiting range. EXAMPLES: NISSAN LEAF, RENAULT FLUENCE Z.E.

Hybrid Electric Vehicles (HEVs)

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Hybrids are the most common electric vehicles. These switch automatically between an efficient internal combustion engine and an electric motor to maximise fuel efficiency. Most allow a couple of miles of pure electric motoring, while some newer models can combine the two power sources under heavy acceleration. Others have an electric motor driving the rear wheels, which allows four-wheel drive traction without the usual decrease in fuel economy. PROS: Hybrids have been on sale for over a decade, so this is now a proven, mainstream technology. There’s also a growing selection of models on sale, including high-performance variants, which means lots of choice for drivers no matter what their taste or needs are. It’s also easy to get used to, with conventional refuelling times and a driving experience familiar to anyone used to an automatic gearbox. CONS: The technology is still expensive, so many hybrids are priced higher than an efficient diesel. Premium-brand models tend to be targeted at the US market, where the focus is on improving air quality rather than reducing CO2 emissions, and these have large petrol engines. In Europe, where tax is largely CO2-based, the savings don’t always add up, even for hybrids with small engines. EXAMPLES: TOYOTA PRIUS, PEUGEOT 3008 HYBRID4, BMW ACTIVEHYBRID 5 12

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Plug-in Hybrid Electric Vehicles (PHEVs)

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Plug-in hybrids have an internal combustion engine and electric motor, but with the option to charge the battery from an electrical socket. This allows them to cover short-range commuting on electricity alone, switching to a conventional hybrid setup when the battery range is exhausted. Mainstream models are due to go on sale in Europe in 2012. PROS: Plug-in hybrids are an extension of familiar technology, simply adding longer-range electric mobility and lower tax costs to their abilities. These vehicles can cater for most short journeys without any point-of-use emissions, making them useful for reducing inner-city smog, yet have conventional refuelling times for long journeys. CONS: Despite claims of staggeringly high fuel economy, the efficiency of plug-in hybrids varies dramatically based on usage. Drivers mostly covering short distances will hardly ever use any fuel, while those who frequently use the car for long journeys will struggle to come close to the economy figures touted by manufacturers. EXAMPLES: VOLVO V60 PLUG-IN HYBRID, TOYOTA PRIUS PLUG-IN HYBRID

Extended-Range Electric Vehicles (E-REVs)

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Although extended-range electric vehicles have both electric and internal combustion power sources, they function differently to a plug-in hybrid. For journeys up to 80km, the car travels on electricity alone, recharged using a charging point or electrical socket. Once the electric range is exhausted, the engine is used to drive a generator, which provides electrical power direct to the drive motor, until the batteries can be re-charged from a power point. Unlike a hybrid, this never directly turns the car’s wheels. PROS: E-REVs provide a useful electric range, allowing urban commuters to cover short distances without using any fuel but without needing a second car for long journeys. This technology also allows these vehicles to return low fuel consumption and CO2 emissions figures, which give tax advantages for business users. CONS: Although E-REVs can cover high mileages, they offer the biggest cost savings when used for short journeys where the range extender is inactive. Also, manufacturers’ fuel consumption claims are open to question until more real-world testing has been carried out. EXAMPLES: CHEVROLET VOLT, OPEL AMPERA

Fuel Cell Electric Vehicles (FCEVs)

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Fuel cell vehicles use a reaction of hydrogen and oxygen to produce electricity, which in turn powers an electric drivetrain. Refuelling takes around three minutes and the only tailpipe emission is water vapour. Although there are manufacturer trials going on across the world, no fuel cell vehicles are available for sale, but several are expected to be launched within the next five years. PROS: Fuel cell vehicles offer the convenience of conventional powertrains, such as long-range cruising and short refuelling times, while emitting no harmful gases in use. CONS: The refuelling infrastructure for hydrogen fuel cell vehicles is almost nonexistent, with only one station available to the public. For the technology to take off, it will need substantial investment in a European network of hydrogen refuelling stations. EXAMPLES: HONDA FCX CLARITY, OPEL HYDROGEN4 IFW March 2012

Second impression

Think Again.

New Generation Hyundai i30. www.hyundai.com

ns are even better.

the environment

â&#x20AC;?The world has enough oil resources to meet demand and satisfy consumer needs for decades to comeâ&#x20AC;?...

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Oiled up John Kendall investigates the state of the world’s oil resources and what it means for global fleets.

...That is the view from OPEC, buoyed up by continuing oil discoveries and improving technology, which permits more of the reserves to be extracted than previously. OPEC also makes an assumption about oil prices for the coming decade. In World Oil Outlook 2011, the organisation reckons that oil prices will remain in the $85 to $95 per barrel range over the coming decade, reaching $133 per barrel by 2035, but underlines that these are only assumptions. As we write, the price of Brent Crude stands at $118.16 and West Texas Intermediate (WTI) stands at $101.74. Over the last year, the WTI price has moved between a low of $75.92 and high of $114.18 and a one year forecast quotes prices around $117 per barrel. OPEC’s assumption does not seem to be in line with current prices or expected market movements. So the art of oil price prediction doesn’t look set to become any easier, but a look back at prices over recent years suggests that price fluctuation is what we will all have to get used to from now on – as predicted by those who have charted market behaviour as we pass the point of peak oil production and reserves begin to dwindle. Factor in emerging markets such as China and India and demand for oil seems certain to keep rising, even if these markets are more receptive to alternative fuel sources, such as electric vehicles (EVs). This pressure on demand seems certain to ensure that the price of oil will keep following the current upward trend. Add in the instability in the Middle East and North Africa over the past year or two and it is easy to understand why the US government and others want to become less dependent on oil from that region. For now that seems more of a distant aspiration. Natural gas may offer an alternative source of fuel away from the Middle East, but this is not a long-term alternative to oil. While there may be fewer toxic pollutants in methane gas, compared with oil-based fuels, it doesn’t address the greenhouse gas emissions issues. Neither is it available in suf icient quantities.

We could discuss bio-fuel alternatives at some length, but at present we do not have viable technology to produce them in largescale quantities. The most likely scenario in the short to medium term is a combination of power sources. We discuss some emerging alternative power systems for cars elsewhere in this issue, but petrol and diesel are likely to play a large part in these – and therefore leet transport needs – for some decades to come. Controlling the associated costs is a growing issue for leets. A look at recent motor shows gives a view of the kind of cars that leets are going to be dealing with in the coming years. We are seeing moves towards globalisation in a way that has been discussed many times over the past twenty years, but this time it seems to be being taken far more seriously. If downsizing is the engine trend then it also seems to be the case for cars. The latest Ford Fusion was recently unveiled at Detroit and will also be seen, wearing Mondeo badges at the forthcoming Geneva Show, before joining the Ford line-up in Europe. The US looks as though it will be driving cars with a more European lavour than ever before. Models such as the Chevrolet Aveo/Sonic are on sale across the company’s global markets. Staying with Ford, the company has recently unveiled its one-litre three-cylinder EcoBoost engine, which will deliver 100hp and 109g/km carbon dioxide emissions in the European Focus. And the Ford engine is not the only one-litre three-cylinder petrol engine currently available or planned. While diesel seems likely to remain the principal fuel for commercial vehicles and for larger passenger cars in Europe, the new generation of downsized petrol engines also seems likely to displace some of those diesel models, particularly in markets such as the UK, where diesel prices are higher than for petrol and where that price difference has been widening. A recent conversation with Ford of Britain managing director Mark Ovenden certainly suggested that he ex-

pects to see diesel sales decline in favour of the new generation of higher ef iciency petrol engines. Vehicles that cover relatively short distances are a case in point. Diesel models equipped with a diesel particulate ilter are prone to ilter clogging if the vehicle is used repeatedly on short distance routes. It’s an issue that affects leet users and the arrival of higher ef iciency petrol engines could be the solution. These models may bring a small fuel consumption penalty compared with diesel models, but this could be offset by reduced unscheduled SMR costs. Telematics offers a means of controlling vehicle running costs, through better route scheduling and monitoring driver behaviour to guide drivers towards eco driving techniques. But take up for the technology has followed a predictable pattern. Heavy truck operators have widely adopted the technology, because the cost savings easily outweigh the costs of equipping a leet. Take-up for light commercial vehicle leets is typically around 20% as cost bene its may take longer to realise than for trucks, depending on vehicle use. The issues are similar for car leets, and as engine downsizing brings leet fuel bills down, it may further complicate the cost bene its presented by telematics. For leets that are uncertain about adopting telematics, there are other possible avenues that can be pursued. It’s not always easy to persuade drivers that driving more

Downsizing is the engine trend and it also seems to be the case for cars. IFW March 2012

the environment

Oiled up... ¡

slowly can make serious reductions in fuel spend, particularly if all they have to do is hand over a fuel card at the illing station. A number of European low emission light CVs incorporate a road speed limiter in the package of eco measures. The reasoning is simple, a light CV can use up to 25% more fuel travelling at 80mph (128km/h) compared with 70mph (112km/h) and if the vehicle is driven slower still, there are savings to be made. Fitting a speed limiter set at 70mph or lower can help to reduce fuel consumption for vehicles used regularly on high-speed routes. Driver incentive schemes can introduce competition between leet drivers to deliver the lowest fuel consumption each month. The prize does not need to be high value, it could be a selection of store vouchers or movie tickets for the winner with a bigger prize awarded for the driver of the year. The advantage is that it can reduce fuel consumption for all leet drivers and help to identify those who might bene it from driver training. Many modern cars are itted with cruise control and a speed limiter as standard. Do your drivers know how to use them? Half an hour spent showing how they work could be time well spent and may help drivers to avoid speeding ines as well as cut their fuel consumption. Drivers who do not understand how such systems work might use them if they were shown how. Last but not least, fuel cards can help manage fuel spending, even if they do not deliver a discount on the pump price. Discounts will inevitably depend on how much fuel your leet buys each month. A fuel card will show how much each driver is spending each month and show up any irregularities in buying patterns, or if the card is used to buy more fuel than the fuel tank could hold. Cards should also give a fairly accurate check of fuel consumption, enabling a leet manager to compare fuel consumption between similar vehicles.

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Q&A WITH US-BASED NETWORKFLEET & WRIGHT EXPRESS Q. Can your fuel cards be used to buy alternative fuels such as liquefied petroleum gas (LPG), compressed or liquefied natural gas, bioethanol, or others? A. Yes, as long as our card is accepted at these locations, whether they are retail or private sites. Q. What plans or facilities does the company have to permit payments at electric vehicle charging points? A. Networkfleet and Wright Express believe that EV charging will play an important part in our industry in the very near future. Wright Express is currently working with all of the EV charging and network companies in the U.S. to build its WEX card acceptance network. Last year Wright Express implemented and tested its card with the first EV charging company, and it worked well. Wright Express took the initiative and in January 2010 presented a request for three EV payment product codes for level 1, 2 and 3 charges. The request was accepted and these codes are standard in the industry. Q. How else can the company help with paying for alternative fuels? A. By building an acceptance network for the fuel card and providing alternative fuel reporting to our fleet customers. Q. What advantages do your fuel cards offer when buying fuel across a number of different countries e.g. across North America and therefore for fuel sold with different tax rates and currency exchange rates? How can fuel cards help with variations in fuel prices, such as the current expected rise in the price of fuel, which may be followed by a reduction? A. Networkfleet, in partnership with Wright Express, offers a Universal Fuel Network in the U.S. that provides the convenience of using one credit card with a variety of fuel and maintenance merchants, while providing Level 3 data on those transactions 99.8% of the time. Level 3 data essentially allows fleets to capture who, what, when, where and how much for each transaction, which helps to enhance card controls and fraud/abuse detection. Additionally, for our tax exempt fleets, we offer a comprehensive tax exemption and reporting solution where, based on the entities qualifications, we can either net out taxes prior to invoicing or provide detailed reporting for reclamation efforts with appropriate jurisdictions. Fuel prices can fluctuate, so using the data we collect in real time from our merchants, we are able to provide tools to our fleets to direct their drivers to the lowest price stations on their route. This is done through our Fuel Price Mapping program, which can be accessed on our proprietary website or on the driver’s handheld device. This is just one example of how we work with fleets to reduce their fuel budgets. We also offer price hedging, which is the ability to lock into a set price for a period of time, as well as GPS/Telematics which provides intelligence on reduction of idling, speeding and maintenance opportunities to reduce our customer’s vehicle operating budgets.

fleet strategy

European leasing sector enjoys a stable quarter After a turbulent 12 months, the European leasing sector appears to be settling down - or is it the calm before another storm? November 2011 to January 2012 was a period of widespread stability in the European leasing sector, with very little movement in residual values (RV), servicing maintenance and repair budgets (SMR), or contract hire rentals. The largest reduction in rental rates was a fractional -1.3% drop for Italian customers, the greatest increase just +0.2% in Spain. Germany reported a +1.3% improvement in forecasted residual values and the UK a -0.7% reduction. The German sector also reported the largest rise in SMR budgets, which at only +1.0% demonstrates how little movement there was. France showed the largest reduction at -1.8%. The latest experteye European Leasing Index report which tracks forecasted residual values, maintenance costs and rental rates in six European countries uses data supplied by major leasing companies in each market. The latest figures indicate a significant calming of the waters after a 12-month period that saw forecasted residual values rise by +10.4% in the UK, Italian SMR budgets increase by +6.3% and French rental rates move upwards by +4.5%. Downward trends saw Italian RVs reduce by -2.3% for the year, Spanish SMR budgets drop by -6.9% and German rental rates fall by -2.8%.

Market summaries – 3 and 12 months to January 2012 FRANCE: Following a 12-month period which saw French leasing rates rise by +4.5% (the largest annual increase of all nations surveyed), the recent quarter reported a -0.6% reduction. There was also a shift in SMR budgets, with France reporting the greatest drop in anticipated servicing maintenance and repair costs (-1.8%) after a year which had shown a steady +3.2% rise. Confidence in the French used vehicle market had seen steady growth during the year with a +3.1% increase in RVs, however, a +0.3% upward shift for the last quarter reflected little further movement. GERMANY: German fleet operators have enjoyed the largest reduction in rentals over the past year with a -2.8% reduction in monthly lease rates, easing to a very small -0.1% fall between November 2011 and January 2012. The falling rentals during the

year were perhaps influenced by Germany being the 2nd most confident nation in the future used vehicle market with a +6.2% rise in forecasted RVs. This fell to +1.3% for the latest quarter, although still showing a positive outlook. SMR costs have been very flat for both the year (+0.5%) and the quarter (+1.0%). ITALY: Annual SMR costs have risen by +6.3% in Italy, the largest increase of all nations surveyed, albeit this has been followed with a slight -0.9% reduction in the last quarter. Italian optimism in the future used vehicle market is the weakest with a -2.3% fall in forecasted RVs for the year and a -0.2% drop in the last 3 months. Rental rates, however, have also dropped with a -1.8% reduction over the year and a -1.3% for the quarter. PORTUGAL: Portugal doesn’t sit too far behind Italy with rising SMR costs – budgets increasing by +5.6% for the year and +0.4% for the quarter. Forecasted residual values have remained stable with a +0.2% increase during the 12 months since February 2011 and a -0.5% drop between November 2011 and January 2012. Portuguese leet customers have seen very little movement in the rentals rates, either for the year (+0.4%) or for the quarter (-0.1%). SPAIN: SMR budgets have fallen by -6.9% in Spain over the last 12 months, the largest drop of all nations surveyed. This has steadied in the recent quarter with a marginal +0.2% rise. Spanish fleet customers have enjoyed the 2nd largest reduction in annual rental rates (-2.7%) placing them just behind Germany. The latest quarter, however, reported a fractional rise with a +0.2% increase in rentals. There has been very little movement in RVs for either the year (+0.3%) or for the quarter (+0.1%). UK: The UK tops the league table with its optimism in the future used vehicle market, reporting a +10.4% increase in forecasted residual values for the year, although this has dropped slightly with a -0.7% reduction since November 2011. SMR budgets have also risen during the course of the last 12 months with a +5.5% increase, steadying to +0.8% for the latest quarter. UK fleet customers, however, are seeing very little movement in rental costs with a +0.5% rise since February 2011 and a +0.1% increase for the latest quarter.

CHANGES IN RV FORECASTS, SMR COST FORECASTS AND LEASE RENTALS Forecast Service, Maintenance Current Rental Rates and Repair Costs 3-month change 12-month change 3-month change 12-month change 3-month change 12-month change +0.3% +3.1% -1.8% +3.2% -0.6% +4.5% +1.3% +6.2% +1.0% +0.5% -0.1% -2.8% -0.2% -2.3% -0.9% +6.3% -1.3% -1.8% -0.5% +0.2% +0.4% +5.6% -0.1% +0.4% +0.1% +0.3% +0.2% -6.9% +0.2% -2.7% -0.7% +10.4% +0.8% +5.5% +0.1% +0.5% Forecast Residual Values

France Germany Italy Portugal Spain UK

Notes: • The comparisons are for vehicles with a contract duration of 36 months / 90,000km with the exception of Portugal (48 months / 120,000km). • Twelve-month comparisons show change since February 2011. • Three-month comparisons show change since November 2011.

• Rental rate changes compare the rates in effect at the time of the survey with those in effect three or twelve months ago. • RV and SMR changes show the change in participating leasing companies’ forecasts of residual values and maintenance costs over the period.

IFW March 2012

sponsored by

in association with

driving towards lower fleet emissions The Electric Vehicle & Low CO2 Fleet Show 2012 is a one-day event at brand new Silverstone Wing, providing fleet decision makers and other fleet industry executives with information, advice and guidance on low emission strategies. Organised by Fleet World magazine in association with the British Vehicle Rental & Leasing Association, the event provides a platform from which motor manufacturers, fleet service companies, infrastructure suppliers and others can explain their products, services and emission control initiatives.

• • •

• CASE STUDY - De-carbonising the fleet >

Director, Willmott Dixon • Future developments in electric vehicle

drivetrain and battery technology > Alex Stewart, Senior Consultant, Element Energy.

• Test drive the latest petrol-electric hybrids, diesel-electric

•

SEMINAR PROGRAMME costs and operational requirements of electric vehicles > Paul Nieuwenhuis, Director, Centre for Automotive Industry Research, Cardiff University

• Operating

hybrids, fuel-cell hybrids and electric range-extenders, as well as the latest low-emission petrol and diesel engine vehicles Discuss future drivetrain strategies with leading fleet motor manufacturers Find out more about low-emission light commercial vehicles Talk to charging point suppliers and infrastructure providers Discuss low-carbon vehicle supply with leasing providers

• Developing the business case for EVs >

Nigel Underdown, Head of Transport, EST and Robin Haycock from The Climate Group. • Question

Time-style debate > panel discussion chaired by BVRLA Chief Executive, John Lewis.

WHERE & WHEN? THE SILVERSTONE WING, UK

WEDNESDAY 18 TH APRIL 2012

DIARY DATE 18/4/2012 RIDE & DRIVE Test driving of electric, hybrid and other low-CO2 vehicles will take place on the Stowe Circuit, a separate infield circuit with its own facilities situated a few minutes away from the Silverstone Wing. There will be provision for visitors to book provisional test drives in advance direct with the relevant motor manufacturer, though all bookings will be at the manufacturer’s discretion.

for more information and to register... evfleetshow.co.uk

COPSE CORNER

SILVERSTONE THE STOWE CIRCUIT

WOODCOTE CORNER

NATIONAL PITS STRAIGHT BROOKLANDS CORNER

WELLINGTON STRAIGHT LUFFIELD CORNER

MAGGOTTS CORNER AINTREE CORNER VILLAGE CORNER BECKETTS CORNER

ABBEY INTERNATIONAL PITS STRAIGHT

“The Show will feature a wide range of low-emission vehicles which will be available for test driving on the Stowe Circuit.”

THE LOOP FARM CURVE

CHAPEL CURVE

HANGAR STRAIGHT CLUB CORNER

VALE

STOWE CORNER

EXHIBITION SPACE For further information on exhibiting at the Show please visit the 'EXHIBITORS' section of the website or contact anne@fleetworldgroup.co.uk

t +44 (0)1727 739160 e evfleetshow@fleetworldgroup.co.uk w evfleetshow.co.uk

motor show review NAIAS 2012

27 new models made their debut at the Detroit Show. Here's a flavour of what North American fleets have coming their way this year.

> Acura ILX concept

> Audi Q3 Vail Crossover

A concept based on parent company Honda's Civic model, here shown as a four-door saloon – the variant sold in the US, and designed to attract younger buyers to the Acura brand. Speaking at the show, Takanobu Ito, President and CEO of Honda Motor Co. announced that the Acura brand would be introduced to some of the world’s growing markets. Acura is scheduled for the United Arab Emirates and Saudi Arabia by the end of 2013 and to Russia and Ukraine in 2014. There are no plans to offer Acura in Europe.

This compact SUV has a winter sports theme, with its name inspired by the Colorado mountain resort of Vail. It features a 314PS ive-cylinder engine giving a 5.5-second 0-62mph time and a 163mph top speed.

> Acura RDX The new 2013 RDX was revealed in ‘prototype’ form in Detroit, which means it is nearly ready for production. The four-cylinder engine has been replaced by a 3.5-litre V6 mated to a six-speed automatic box and as it’s not as ugly as its predecessor, US buyers may be tempted away from the likes of BMW X3 or Lexus RX when it goes on sale in the US this spring.

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> Bentley Continental V8 New 4.0-litre V8 slots beneath the W12 engine offering 500bhp but better fuel ef iciency, says Bentley – improved by up to 40 per cent thanks to cylinder de-activation which allows four cylinders to be shut down. The engine is a 4.0-litre twin-turbo V8 developing 500bhp. Cylinder de-activation switches from a V8 to a V4 when the car is cruising on light throttle to save fuel. Precisely when this happens depends on the throttle load and what outside in luences are affecting the car, such as aerodynamic drag and rolling resistance through the tyres.

> BMW ActiveHybrid5 BMW launched the ActiveHybrid5 at Detroit and also unveiled the hybrid 3 Series – ActiveHybrid3 – too. The ActiveHybrid5 combined power output comes to 340hp and 450Nm of torque, while also delivering 149g/km of carbon dioxide emissions. The car offers 4km/2.5 miles of electric driving at a maximum speed of 37mph (60km/h). A coasting mode will switch off the engine at speeds up to 100mph.

> Chevrolet Sonic RS This sporty sub-compact is aimed at younger buyers so has a seven-inch colour touch screen radio and allows drivers to use navigation applications on their smart phones and project those directions on the screen.

> Cadillac ATS Spring 2012 is the launch date for the In initi JX seven-seat Cadillac's rival to the Audi A4 and BMW 3 Series is a compact saloon, which has had a lot of engineering and tuning input from GM's operations in Germany.

> Chevrolet Tru 140S concept Tru 140S, the second of Chevy’s concepts here in Detroit, is the front-wheel-drive, ‘affordable exotic’ four-seat coupe young buyers are apparently looking for. It is based off the same platform as the Chevrolet Cruze and the Volt electric vehicle with extended range.

> Chevrolet Code 130R concept One of two completely fresh concepts revealed in Detroit, the Code 130R is the result of consultations with young car buyers across the US. Apparently they want four doors with coupe-like aesthetics, an aggressive front profile and an electric drivetrain, providing regenerative breaking. The discussions will continue as the interior is developed.

> Chrysler 700C Surprise debut from Chrysler, the 700C is purely a concept, designed by a special team at Auburn Hills and revealed at Detroit to gauge customer response to a potential design direction for next generation minivans. The Chrysler logo embedded in the rear glass is a nice touch.

> Coda Electric While this saloon may not appeal on aesthetics it does have an innovative system of battery and thermal management that electric-car maker Coda Automotive hopes will set its cars apart from other EVs on the market. The car keeps its battery in a precise temperature range and also closely controls the way they discharge electricity. Buyers have the choice of two battery packs, providing 125 or 150 miles of range, and deliveries start in the US next month, with a base price of less than $30,000, when tax credits of $7,500 are applied.

¡ IFW March 2012

motor show review NAIAS 2012

¡ John Kendall reviews the main

highlights for fleets from Detroit... > Dodge Dart Chrysler unveiled its new Dodge Dart, showing that it is moving away from its muscle machines of past decades towards smaller, more economical cars – with the help of the Fiat Group. The Dart is based on the Alfa Giulietta and includes Fiat's 1.4-litre multiair engine in its line up. It gives the brand a stronger presence in the US compact car segment, which it only takes around 15% at the moment. Despite that, Chrysler is now the fastest growing carmaker in the US. Reid Bigland, president and CEO of Dodge said: "Our sales were up 26% here last year and it's the same story across the border in Canada and who would have thought that when we went through bankruptcy two years ago? "We have to thank Fiat for giving us a second chance. We have even been able to pay off all the government loans we were given in Canada, where we continue to build some of our models, six years ahead of schedule." The Dart will be launched in North America in the second half of this year.

> Ford Fusion

> Honda Accord Coupe concept

The North American Fusion previews the next generation Mondeo, due for launch in early 2013 in Europe; it will be simultaneously launched at Detroit and the Consumer Electronics Show in Las Vegas, showing where Ford see its priorities for this new model.

The concept, described as “dynamic and aggressive” by Honda, is said to represent the look of the ninth generation Accord, due on sale from the autumn.

> Honda NSX concept The new model, although officially a concept, will be on sale around the world within three years, said Takanobu Ito, president and CEO of Honda Motor Co, and will be very similar to the car on show. In a statement of intent to the American market – which is more important to Honda than even Japan – and a response to the over-valued yen, it will be developed by the company's engineering teams in the US and built at its plant in Ohio for all markets. It also demonstrates Honda's commitment towards sustainability at all levels, and to hybrids in particular, with a petrol-electric drivetrain. Like the previous NSX, it will have a mid-mounted V6 engine, this time with direct fuel injection to drive the rear wheels, but also two electric motors mounted at the front to give it all-wheel drive. It will go on sale irst in the US under Honda's Acura luxury subbrand, and will come to Europe a little later – probably some time in 2014 – as a Honda.

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> Hyundai Genesis Coupe Hyundai launched its refreshed 274bhp, rear-wheel drive Genesis Coupe 2.0 Turbo and completed a good day at the Detroit Show with the announcement that its Elantra model had won the Car of the Year Award from US journalists.

> Hyundai Veloster Turbo Hyundai's new 200hp Veloster Turbo sports car is heading for Europe after receiving its world debut at the Detroit show. The Veloster will arrive on the US market this summer as a halo model to "attract our next generation of buyers," said Mike O'Brien, vice president, product and corporate planning, Hyundai Motor America. In the US and Europe it will rival models such as the Volkswagen GTI, Honda Civic Si and MINI Cooper/Clubman S. It is powered by a new 1.6-litre turbocharged petrol direct injection engine mated to a six-speed automatic or manual transmission.

> Lexus LF-FC > Mercedes-Benz E300 Hybrid Mercedes wheeled out two hybrid versions of the E-Class at Detroit â&#x20AC;&#x201C; one for Europe and one for America and Asian markets. The European model, the E300 BlueTEC, is the company's first car with a diesel-electric power plant, and with fuel economy of around 65mpg is claimed to be the most fuel-efficient luxury car in the world. It pairs the 198bhp 2.2-litre diesel engine of the E250 CDI with a 27bhp electric motor. Together they deliver more than 550lb ft of torque, ensuring similar performance to the V6-engined E300 diesel, but with 35% better fuel economy. Emissions of CO2 are just 109g/km.

Designed by Toyota and Lexus in Newport Beach, California, this supercar concept is powered by what the company calls 'Advanced Lexus Hybrid Drive'. It could make it into production as a replacement for the LFA, due to end production at the end of this year.

> Lincoln MKZ concept Lincoln had a whole stand to itself as parent Ford tries to turn its luxury brand around. The MKZ indicates the design direction.

> Mercedes-Benz SL Cold, downtrodden Detroit would seem like an unlikely place to unveil a new luxury convertible, but it's where Mercedes-Benz chose to introduce the world to the sixth-generation SL. The decision to make the new car from aluminium means it is up to 140 kilos lighter than the outgoing model. The fuel consumption and emissions of the 2012 V6 SL350 and V8 SL500 are said to have been improved by 30%. Mercedes CEO Dr Dieter Zetsche says the new 500 out-performs the old V12 SL while using less fuel than the V6. It is the third SL with a retractable hard top, and now features the seat-mounted Airscarf neck-warming system from the smaller SLK, plus its Magic Sky Control system of adjusting the amount of heat and light entering the cabin when driving roof-closed on sunny days. Magic Vision Control is an innovative windscreen wash system that sprays water through nozzles in the wiper arms and blades so that it goes exactly where it is needed. It allows the wipers to be operated without risk of wetting the passengers when driving with the roof down.

IFW March 2012

motor show review NAIAS 2012

> Mercedes E400 The other model is badged the E400 hybrid and uses the same electrical drive system employed in the European car, but in this case linked to a 298bhp 3.5-litre petrol engine. The electric part of the powertrain allows most low-speed manoeuvres to be carried out on battery power alone. The motor also carries out the first phase of acceleration from standstill unaided. There is an engine stop-start system and brake energy recovery, plus a 'sailing' mode, which de-couples the petrol or diesel engine on demand and maintains a set speed until the battery is exhausted. The power electronics are housed under the bonnet while the battery is mounted under the boot floor. As a result, there is minimal disruption to the passenger and luggage space.

> MINI Roadster

> Nissan E-NV 200

Soft top version of the coupé launched in the autumn promises to be great fun to drive, with the added advantage of that extra luggage space you get when the MINI is reduced to being a two-seater.

An electric variant of the van/combi was promised at the Nissan NV200’s original launch. Based on the conventionally fuelled NV200, power for the e-NV200 Concept comes from an 80kW AC synchronous motor powered by lithium-ion batteries. The roomy interior space makes the vehicle practical for families and businesses.

> Nissan Pathfinder concept

> Porsche 911 Carrera Cabriolet

Nissan describes its new lagship 4x4 as ‘taking all the Path inder's hallmarks and wrapping them in a new platform and aerodynamic body.’ Due in the UK in the summer.

A soft-top made of fabric and plastic and said to give a cleaner appearance and improve aerodynamic efficiency. It is supported on a magnesium frame for extra lightness.

internationalfleetworld.com

John Kendall reviews the main highlights for fleets from Detroit

> Tata eMO

> Volkswagen Jetta Hybrid

The $20,000 TATA eMO made its debut at Detroit – but the Indian automaker has no plans to produce the electric vehicle. The four-passenger EV is described as an ‘engineering study’ designed to show that Tata Technologies has ‘an understanding of developed markets.’ The name is short for electric mobility.

The second hybrid model from VW after the Touareg Hybrid, features a 1.4 TSI four-cylinder engine and 7-speed DSG box. The car can drive on pure electric at the press of a button, at speeds of up to 44 mph for 1.3 miles. The hybrid Jetta achieves fuel consumption of 45 mpg (combined).

> Toyota NS4 PIH concept We've seen teaser images, now we can see what Toyota describes as an ‘advanced plugin hybrid concept’ for real.

> Volkswagen E-Bugster concept The name is a combination of ‘E’ for electricity, ‘Bug’ the Beetle’s US nickname and ‘speedster’. More importantly VW claims the E-Bugster has a range of 110 miles and can completely recharge in just 35 minutes. The new Combined Charging System that makes this possible has been developed in co-operation with Audi, BMW, Daimler, Porsche, Ford and General Motors/Opel.

> Volvo XC60 Plug-in Hybrid concept Volvo describes it as a highly economical hybrid and a powerful high-performance car all rolled into one, with the driver deciding how the available power is to be used. Speaking at the show, Volvo CEO Stefan Jacoby believes that within ive years almost every Volvo will feature some form of electri ication, from stop-start systems to full hybrid power. The company will launch the V60 diesel-electric plug-in hybrid in Europe later this year. The XC 60 Plug-In Hybrid concept uses a similar electric system to that in the V60 hybrid, with a 280bhp petrol engine being developed under the Volvo Environmental Architecture programme. “We are preparing a gasoline hybrid for the US market, but it is too early to say which model it will go into,” Jacoby said.

IFW March 2012

fleet focus Canada

Canada to lead EV charge? Almost 60% of Canada’s electricity is generated by hydro schemes, which could make the country a global EV leader. John Kendall reports. Compare the automotive sector in Canada and the United States and you might be forgiven for thinking that the two countries were in different parts of the world. Of the 15.22 million light vehicles sold in North America in 2011, just 1,585,519 were sold in Canada, according to the Association of International Automobile Manufacturers of Canada (AIAMC). So the largest single vehicle market in the world, the US, shares a border with the second largest country in the world by area, which despite its size, saw fewer car sales than the United Kingdom. Factor in a population of around 34 million, compared with around 313 million in the US and the sales figures make more sense. A sizeable chunk of Canada’s enormous territory lies in the Arctic Circle, ensuring that the populations of the Yukon, Northern Territories and Nunavut number around 103,000 over a combined area that makes up 39.5% of Canada’s total landmass. Like their southern neighbours, Canadians like their light trucks. Some 891,748 (AIAMC) of the total in fact, or around 56% of the new light vehicle market, compared with some 52% for the United States. Again the comparative population density and Canada’s vast land mass help to explain the popularity of vehicles with allterrain capability. The 2011 light vehicle market in Canada saw a modest sales increase of around 2.1% compared with 2010. 2011 car sales fell compared with the previous year, following the recent downward trend in that sector. At the same time light truck sales followed the opposite trend, increasing compared with 2010. Forecasts indicate that the decline in car sales may have bottomed out and 2012 will bring a modest increase, while light truck sales may start to level out. Scotiabank is forecasting a light vehicle market of 1.605 million vehicles for 2012, an increase of around 1.2% on 2011, which would make 2012 sales the fifth highest on record for the country. Figures from AIAMC show that 2012 got off to a good start. Light duty vehicle sales rose 15.4% on January 2011. Light truck sales showed an increase of 7.4% over January 2011 and cars were up 28.8%.

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Despite the problems suffered by Japanese manufacturers last year, Honda claimed the Civic as Canada’s best selling car in 2011, even though that didn’t translate into best selling Japanese brand status. That accolade went to Toyota, with some 162,000 sales, the company featuring as the second best-selling car manufacturer and fourth overall best seller. At the same time, Canada produced some 2.07 million vehicles, according to data from Scotiabank, building vehicles for Ford, GM, Honda/Acura and Toyota/Lexus at plants all located in the province of Ontario, offering easy cross-border access to the US. This industry suffered like many others in the 2008 financial crisis and its aftermath. In fact car manufacturing was already declining in the region with Ford and GM laying off workers from 2005/6. These cut backs have been offset to an extent by new facilities from Ford, GM and Toyota. Fuel prices in Canada are generally higher than for the US, with a litre of petrol currently costing between €0.76 and €0.97 – between 27 and 40% more expensive than in the US. This is still considerably cheaper than European prices. So it’s not particularly surprising that take-up of diesel models is low – approximately 3% of the passenger vehicle parc. But some commentators are expecting this to rise in the coming years, as more manufacturers offer diesel models. It seems that many SUVs are already sold with diesel engines and next year, smaller models, such as the Chevrolet Cruze, are expected to be offered with diesel power. The trigger point for interest in diesel appears to be fleet average fuel economy regulations due to come into force by 2016. Forecasts for diesel market share in North America vary, but it looks as though somewhere in the 7 to 8% region by 2017 may not be wide of the mark. Petrol/electric hybrids do not feature strongly in the Canadian vehicle parc either, being responsible for just 0.3% of vehicles, according to DesRosiers Automotive Consultants. The potential growth area for Canada appears to be with electric, plug-in and rangeextender hybrids, assisted – as in other countries – by tax incentives.

BEST SELLER C HONDA CIVI

S CREATING JOBTARIO TMMC, ON

ADA MADE IN CAN T CAMARO CHEVROLE

AD A MADE IN CAN OSPORT FORD EC

ADA MADE IN CAN AND VOYAGER CHRYSLER GR

Canada produced some 2.07 million vehicles in 2011, building models for Ford, GM, Honda/ Acura and Toyota/ Lexus

CAR SALES CANADA, 2011* TOP 10 MANUFACTURERS Manufacturer Hyundai Toyota GM Honda Ford Mazda Nissan VW Kia Chrysler

Sales 89,200 85,300 77,600 73,200 69,900 56,800 46,800 44,800 40,800 32,000

Share % 12.9 12.3 11.2 10.6 10.1 8.2 6.7 6.5 5.8 4.6

LIGHT TRUCK SALES CANADA, 2011* TOP 10 MANUFACTURERS Manufacturer Ford Chrysler GM Toyota Honda Hyundai Nissan Other (domestic) Kia Subaru

Hyundai capitalised on the Japanese problems last year and lead the Canadian car sales charts

Sales 206,100 199,000 165,200 77,000 49,900 40,000 37,700 34,100 24,300 16,200

Share % 22.3 21.5 17.9 8.3 5.4 4.3 4.1 3.7 2.6 1.8

TOTAL LIGHT VEHICLE SALES CANADA, 2011* TOP 10 MANUFACTURERS Manufacturer Ford GM Chrysler Toyota Hyundai Honda Nissan Mazda Kia VW

Sales 276,000 242,800 231,000 162,000 129,200 123,100 84,500 69,200 65,100 44,800

Share % 17.4 15.3 14.6 10.2 8.1 7.8 5.3 4.4 4.1 2.8

ยก ยก *Data source: AIAMC dealer sales data. IFW March 2012

fleet focus Canada

TAXATION Business car taxation is reviewed annually. For 2012, the Canadian Federal Government has maintained the capital cost allowance (CCA) for passenger vehicles used for business purposes at $CAD 30,000, plus applicable federal and provincial sales taxes. Allowable leasing costs remain unchanged for 2012, at $CAD800 per month, plus applicable federal and provincial sales taxes. A separate restriction applies where the value of the vehicle exceeds the CCA ceiling. Employees using their own vehicles for business will be able to claim increased mileage rates, generally up one per cent and by 4% in the Yukon, Northwest Territories and Nunavut. The rate used to calculate the taxable

benefit for the personal portion of car operating expenses paid by employers has also been increased by 2 cents to 26 cents per kilometre. Looking at the Canadian fleet sector, IFW drew on the experiences of Ken Blackburn, strategic marketing manager for GE Capital Fleet Services Canada. GE Capital has some 56,000 vehicles on lease with 900 customers, from large organisations to small to medium enterprises (SME). The customer profile covers a wide range of sectors from major industries to distribution and construction. The US border means that a number of fleets have integrated Canadian/US operations. Like its US operation, GE Capital oﬀers a full service management operation to

EV MARKET DEVELOPMENTS

customers, providing a variety of financing and operational services. In addition, the company provides consulting services and a technology platform. The GE Capital fleet is made up of vehicles from cars to heavy trucks and includes both sales and service fleets. Growth in the Canadian economy is still facing challenges. Mr. Blackburn told IFW that Canadian companies still face cost pressures, which has led to lengthened replacement cycles and a re-evaluation of vehicle types offered to drivers. Looking at business prospects for 2012, Ken Blackburn expects to capitalise on the expected growth in the economy this year, with customers refreshing their fleets and warming to the opportunities offered by new technologies.

Ken Blackburn at GE Capital told IFW that the EV market is expected to grow at a rapid pace in Canada as a result of some significant growth drivers:

1 > The need for sustainable alternatives ”With transportation accounting for roughly 15% of energy related CO2 emissions across Canada, and the relationship of emissions to global warming, sustainable alternatives are becoming a popular topic,” he reports. ”The Canadian government has committed to reducing total greenhouse gas (GHG) emissions by 17% from 2005 levels by 2020, and with more than 70% of Canada’s energy being generated without the use of fossil fuels, there is a compelling reason to go electric. In fact, the vision for Canada is 500,000 EVs on Canada’s roads by 2018, as outlined in Electric Mobility Canada’s (EMC) Electric Vehicle Technology Roadmap, distributed by Natural Resources Canada; however, making this vision a reality requires progressive adoption from fleets and retail customers alike.” 2 > Government investment ”In Canada, the provincial governments have taken the lead by offering lucrative incentives for purchasers of EVs. As an example, in Ontario, fleet and retail customers can apply for incentives of up to $8,500 (€6,525) for EV purchases made (up to a maximum of five EVs purchased per year). ”The Ontario government has also formally announced their vision of 1 in 20 vehicles to be electric by 2020, which will result in nearly 350,000 EVs on Ontario’s roads by that year. Similarly, the province of Quebec will invest nearly $250 million (€192 million) into the deployment and use of electric vehicles, and anticipates that by 2030, there will be nearly 1.2 million electric vehicles on Quebec’s roads representing 18% of the province’s light duty vehicles.” 3 > OEM ramp-up ”Automotive OEMs have also committed to an electrification strategy with practically every OEM adding an EV to its model year fleet in the next one to three years. In fact, according to a Frost & Sullivan report, it’s projected that there will be 1.3 million electric vehicles shipped globally by the year 2015.”

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Automotive OEMs, such as Chevrolet with the Volt, have committed to an electrification strategy

KIA > FLEET REVOLUTION

Kia sales in the corporate sector grew by over 35%

”

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PICANTO

The first generation Picanto began a new chapter in Kia’s evolution, and its replacement is no less revolutionary. Available in three and five door versions for the first time, it offers the safety, interior space and high-speed cruising ability of a much bigger car, while retaining a compact size for easy inner-city manoeuvrability, nimble handling and minimal running costs.

RIO

Catering for the growing European B-Segment and now available with three doors for the ﬁrst time, new Rio’s bold styling is bound to turn heads. And not only is it striking to look at, but Kia’s new range of ecoDynamics technology and downsized diesel engines bring three versions under 100g/km CO2. At 85g/km, the 1.1 CRDi is the most fuel efficient conventionally-powered vehicle on sale.

OPTIMA

Kia’s newly-launched ﬂagship sedan is aimed directly at the business user, with an efficient diesel engine and comfortable, high-quality and generously-equipped interior. There is also a 2.0litre petrol variant and a Hybrid Optima. Taking design cues from the popular Sportage crossover it features a side proﬁle closer to a large coupe than a sedan, yet it offers this blend of style, efficiency and practicality at an irresistibly competitive price.

his success was mirrored in Europe, where Kia recorded a 12% sales increase year on year, with fleet demand core to its growth. Sales in the corporate sector grew by over 35%, with increased uptake from both long and short-term end-users thanks to a new and exciting range of products that drivers truly want to drive. The entire model range has huge fleet appeal too, with an industry-leading seven-year warranty proving Kia is not only supremely confident in the desirability of its models but in their build quality and reliability too. Such confidence is reflected in strengthening residual values and has helped put Kia firmly on the map in the fleet sector. And there’s more to come in 2012...

2011 was a landmark year for Kia. Not only did it begin a substantial multi-model new product offensive, but the carmaker sold 2.4-million vehicles globally, a record figure and 18.6% increase versus 2010.

CEE’D

Unveiled at the Geneva Motor Show this month, new cee’d is poised to continue its predecessor’s Europe-wide success when it goes on sale in the second quarter of 2012. Packaging hatchback practicality into a sleek, coupe-like body, it features Kia’s award-winning design language inside and out, with a completely redesigned interior and driver-focused dashboard to make every journey an experience.

For further information contact... Phone +49-69 850928 323

Web www.kia.eu

operator profile Sixt

Ever-expanding... SIXT > HISTORY & BACKGROUND In 1912 Martin Sixt founded one of the irst rent-a-car businesses in Germany, with three cars to his name. Since then, Sixt has grown exponentially to become a global provider of ‘mobility solutions’, and this year will celebrate its 100th birthday. Not as rare a milestone as you might think in the corporate world, but then it has weathered two world wars to become Germany’s largest vehicle rental provider, staking its position as a key player amongst Europe’s top three. And it remains a family-run business, but with an ever-expanding global reach. As a publicly listed company with a global footprint, referring to Sixt as a family business now sounds a touch incongruous. With an international leet of 250,000 vehicles stretching across 105 countries, and 4,000 rental locations, the foundations of Sixt’s business are rooted in both vehicle rental

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and leasing to corporate and retail customers. Today, it employs a range of business models, including full service leasing, contract hire and rental. At its core lies a robust inancial strategy — thumb through the annual report and the mantra ‘earnings before revenue’ appears frequently. That philosophy has made the company a benchmark for pro itability in the industry, cementing its position as number one rental provider in Germany. Turning over a healthy 1.54bn Euros in 2010, around 800m Euros of Sixt’s revenue is derived from vehicle rental operations and approximately 400m from leasing operations. INTERNATIONAL EXPANSION Paul McLoughlin, Sixt UK Managing Director (left), explains the transition from domestic car rental company to

global player: “The key milestone came in the late ‘90s, when Sixt spread its wings and focused on international expansion. Over the last ten years we’ve tightened our grip on the European market – we now have over 12,000 vehicles in France and have enjoyed very strong growth in Spain over the last few years. In the UK alone, we’ve seen 40% growth over the last 12 months and now have over 26,000 vehicles, with a 60/40 split between cars and commercials. But Germany remains our largest market with 85,000 vehicles – split approximately 70/30 cars to commercials.” Relatively low-risk expansion into international territories has been achieved by franchising the Sixt brand to licensees worldwide – giving the orange and black logo a presence in key airports and cities around the globe. The international footprint is heavily weighted towards franchis-

ing, with Sixt having a foothold in 95 out of the 105 countries via franchised outlets. The remaining ten (Benelux, France, Spain, Austria, Switzerland, UK, Germany and USA) are ‘corporate countries’, where Sixt directly owns and operates rental and leasing activities, as opposed to offering branding and support to third party licensees. Given the variance in economic fortunes and attitudes to entrepreneurship across such a diverse geographical footprint, the role of Sixt varies with each franchisee, as McLaughlin explains: “How they acquire vehicles is largely outside of our remit – our role in the relationship is to deliver business support and infrastructure to the franchise partners. Some are heavily dependent on our expertise and IT systems, whilst others decide it’s just the name over the door and the orange and black logo they want.” But, as McLoughlin stresses, “every market is unique,” which means Sixt’s customer base is eclectic. Short-term rental, whether to private or business customers, features heavily in franchise territories, whilst in countries where Sixt has a corporate presence there is increased emphasis on leet inancing and corporate leasing and rental activity. “In Germany we are in every town and airport, and 70% of our business is corporate. Every major insurance company and blue chip is a customer of Sixt. It’s our aim and ambition to mirror that in all of our corporate markets.” US GROWTH Despite its contribution to International growth, franchising is not the key priority right now. In January, Sixt added two new rental locations in Florida (totalling ive in the US) and has plans to open across more states, in pursuit of a bigger slice of the lucrative US rental market. “As one of the top three players in Europe, the missing piece has always been the US market. Our number one priority is corporate growth in the USA. We’ve been in Florida for a year now, with a strategy of making local acquisitions in the holiday and airport rental market. We’re now focusing on expansion into other states; the US is where we want to be.” Why airports? “Brand exposure – we are a very strong player in the corporate rental market, and strategically to be considered for global business, you have to be in the airports,” says McLoughlin.

PREMIUM MANUFACTURER LINKS When it comes to the type of vehicles on the leet, Sixt’s German origins have shaped its offering. Established links to premium German manufacturers, including BMW, Mercedes and VW/Audi are a key differentiator of the Sixt brand identity. With upscale badges being a strong suit in the corporate rental market, at least 50% of the Sixt leet on the corporate operations side wears a premium German badge. And given BMW’s global headquarters are a stone’s throw from the Sixt HQ in Munich, it’s not too surprising to learn the blue and white propeller’s largest global customer is Germany’s number one vehicle rental company. Large volume deals with manufacturers mean sensitive disposal policies are an important part of the relationship. A significant proportion of the Sixt leet is disposed of via buy-back deals, allowing manufacturers to avoid used market saturation and maintain control of residuals. Most vehicles are also of loaded within 12 months, before requiring scheduled maintenance. But where Sixt purchases vehicles outright, a combination of in-house and outsourced maintenance teams are utilised to ensure manufacturer’s service requirements are adhered to. In some markets – UK and US included – Sixt uses a variety of remarketing channels, including a dedicated remarketing company selling direct to retail and trade, as well as traditional auction houses. THE FUTURE: INNOVATIVE MOBILITY SOLUTIONS FOR A CHANGING MARKET The strong links between Sixt and BMW have also led to some innovative revenue streams, including the ‘DriveNow’ premium car sharing scheme, a joint venture which launched in four major German cities last year and now has 15,000 members. The premise is simple – car sharing based around premium brand, fuel-ef icient cars (the leet is comprised of well-equipped 1 Series BMWs and Minis with emissions under 120g/km) available to members on a pay-as-you-go basis. There are no physical hire stations, instead members scan a card against the windscreen of a local DriveNow car, then drive away, paying an all-inclusive perminute rate. As McLoughlin explains, BMW and Sixt have big ambitions for the scheme:

Worldwide, 8% of our fleet in 2012 will be vehicles with CO2 emissions under 99g/km

“we want to expand DriveNow into other key European cities and further a ield – our ambition is to have 1,000,000 members by 2020. BMW are fully behind it and selling the concept to new customers via their leasing arm, Alphabet.” DOWNSIZING One trend Sixt has noticed amongst the bigger corporate customers is a strong emphasis on downsizing to more fuel ef icient, cleaner cars – partly for cost control and partly carbon footprint reduction. “There are more stringent policies amongst larger employers about what vehicles they can use, both as rentals and on their leets. Worldwide, 8% of our leet in 2012 will be vehicles with CO2 emissions under 99g/km and in the UK 25% of our leet is under 120g/km.” And environmental policy is important, but Sixt won’t be offering electric vehicles on their leet just yet. “We’re all for driving down emissions, but EVs don’t stack up economically for the rental market. It’s also chicken-and-egg in terms of infrastructure. But the real dif iculty with renting is range anxiety. From a leasing perspective it’s something we are looking at though.” Against the backdrop of Eurozone gloom, EVs may not currently make inancial sense, but lexible mobility solutions like DriveNow are a prudent strategy, according to McLoughlin: “if you take our customer base – the retail business and the small companies can’t always afford to run their own vehicles, but they can use pay-as-yougo solutions – so we work hard on lexible products that allow people to run a vehicle without the downsides.” On the corporate leasing side, Sixt is con ident in its ability to ride out the economic storm battering Europe. “We have a strong balance sheet – leet inance is a great business. We aren’t seeing a dip in spending patterns on the corporate side – people still need to do business.”

IFW March 2012

fleet profile DAIMLER TRUCKS

Bigger can mean better In the first of a series of profiles looking at the world’s major truck fleet providers, IFW is starting with the biggest commercial vehicle maker, Daimler. In addition to their trucks division, they are also a major player in the global van and bus markets, not examined here. The specific business division of Daimler Trucks should really be regarded as a ‘work in progress’ because it is constantly morphing to react to market forces. Going into 2012, we’ll look at the scope and size of the operation and which products sell in which regions. HORSES FOR COURSES The four major markets that Daimler Trucks competes in are Europe, Latin

America, NAFTA and Asia. This is a very broad-brush statement, and it conceals a mix of mature and developing regions that are treated with varying levels of concentration. To explain, the strongest spotlight is currently on the so-called ‘BRIC’ markets - Brazil, Russia, India and China and while this focus is certainly not exclusive to Daimler, their current involvement and investment levels in these areas are among the highest in the market. The assemblage of brands that makes up their portfolio is the result of shrewd shopping trips made by successive Daimler board

members, which kicked off in the 1990s. The Mercedes-Benz brand has obviously been at the core of their truck division’s operations for well over 100 years and the relatively recent arrival of the rest is a mark of the dramas played out in the commercial vehicle industry worldwide in just the last few decades. A long period of stability and steady growth was hit by a series of acquisitions and takeovers and those who had a strong balance sheet when the process began were among the long-term winners. Daimler was certainly one. To sell trucks in the USA, for example, Daimler acquired

¡ GLOBAL SALES (in 2010) > 355,300 units MAJOR REGIONS Western Europe > 55,400 NAFTA > 76,700 Latin America > 58,200 Asia/Australia > 126,300

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the Freightliner and Western Star brands, stopping off to pick up Detroit Diesel before heading for the checkout. The philosophy is simple. Don’t take a European truck, even with added missionary zeal, and try to sell it to another country where their needs, and wants, are totally different. You will fail. This reasoning has generated a string of ongoing acquisitions and joint ventures (JVs). It’s not all buying though. There’s selling too and some purchases are shed along the way. American LaFrance – a highly specialised ire truck maker – was part of the Daimler family for many years, but was

disposed of, as were Sterling Trucks, an exFord truck product line and the stake in Tata Motors in India. Their ownership of Thomas Built Buses in the USA, makers of the ubiquitous yellow school bus, may look like a niche, but market leadership brings in dollars and the drivetrain components are already on the shelf. ASIA PACIFIC As with the NAFTA region, the Asian and Japanese markets also needed a major local presence. Daimler took an initial share of Mitsubishi Fuso Truck & Bus

Corporation (MFTBC) in 2003. Increased by degrees, today it stands at a controlling interest of 89%. It’s that holding that gives the M-B truck network in the UK, and elsewhere in Europe, responsibility for the Fuso Canter light truck, incongruous as it may seem, with a light M-B range marketed alongside. However, Fuso is a lot more than just the little Canter, with tractors and eight wheelers in their far eastern market portfolio, Fuso is a dominant marque and the volumes mean that it outsells big brother Mercedes in Daimler’s global sales charts.

IFW March 2012

fleet profile DAIMLER TRUCKS

4 5 14

6 7 12

MAIN LOCATIONS 1

Portland (OR)

Redford (MI)

Mount Holly (NC) Cleveland (NC) High Point (NC) Gastonia (NC) Gaffney (SC)

Saltillo/Mexico

Toluca/Mexico Santiago Tianguistenco/Mexico

São Bernardo do Campo/Brazil

Juiz de Fora/Brazil

Gaggenau, Kassel, Mannheim, Worth, Stuttgart/Germany

Molsheim/France

Tramagal/Portugal

Cape Town/South Africa

Aksaray/Turkey

Chennai/India

Kawasaki, Toyama, Aikawa/Japan

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WHAT’S BUILT WHERE? Outside the ive home plants in Germany, where the Mercedes-Benz six tonne gross vehicle weight (GVW)-plus product ranges are designed and built, along with their engines and transmissions, there are additional European factories in Molsheim (France) and Aksaray (Turkey). Fuso’s manufacturing naturally centres on Japan, at the Kawasaki, Toyama and Aikawa plants with a satellite assembly plant in Tramagal (Portugal) that builds the Canter light trucks for Europe, including the UK. Moving to the last major theatre of production in the Americas, the Freightliner and Western Star product lines are built at ive plants in Oregon, North Carolina and Mexico, with production volumes within those plants drifting south in recent times. It’s probably in these US plants, which serve a giant market, where the challenges of working with a cyclical business are at their greatest. You can’t switch a truck factory on and off like a light bulb, but when the market falls away in spectacular style, plants get closed. It’s a painful process and Daimler has to cope with it like anyone else. Going into 2012, Andreas Renschler, head of Daimler Trucks, is on record as acknowledging the issue. He says, “If you fail to plan for these business cycles, you will be in trouble. I don’t rail against them, they are part of the way the industry works. The trick is to understand that, and plan for

it.” If proof of that philosophy were needed, after their US truck factory closures in recent years, Daimler Trucks North America opened 2012 by announcing plans to add a second shift to ramp up production at its Freightliner plant in Cleveland, N.C. That’s 1,200 new jobs. US leet buyers are coming back to the waterhole. Brazil’s two Daimler plants are virtually self suf icient, producing their entire Latin American truck product range including engines and transmissions. They have a long history there, with the São Bernardo do Campo plant established in 1956 and employing more workers than the giant Wörth Mercedes truck factory in Karlsruhe, Germany. The drift of production away from the traditional plants in Germany was essential if overseas markets were to be competitively addressed and the stamp of “Made in Germany” had to give way to “Made by Mercedes-Benz.” THE BIG FLEETS What constitutes a big leet deal will clearly vary from market to market. In the UK, Mercedes’ Tesco supermarket leet of Axor tractor units has stood at over 2,000 and they clearly rate as a very big UK and European customer. Daimler guards their leet size information carefully, not least to preserve customer relationships, but there are single leets in the US that can outstrip the annual sales from a western European country. Daimler Trucks’ leet size classi ications

treat a European leet of over 500 trucks, and an annual intake of over 100 units, as large. Fleet deals in the USA/NAFTA region of over 1,000 trucks are not unheard of. Service and warranty conditions are usually at the front of these sales. Moving high volumes of metal is one thing, supporting them in the ield is another. Keeping these leet customers happy is getting tougher all the time. Accepting that there are no really bad trucks on the market any more - they just couldn’t survive – the differentiator is the support services on offer, and telematics is playing an increasing role in swinging deals. Fleet operators who don’t like complexity are having it force-fed to them for their own good. Daimler’s telematics package, branded as FleetBoard, has been around for a decade and it had an awkward start in life with an early

proclivity for over-promising and underdelivering. It’s now emerged as a serious tool for productivity savings. All new Actros models – as launched in late 2011 – will come with the system hardware integrated and a four-month trial period of use, free. The conversion rate to the paid-up version posttrial will be interesting. It will be charged at an €800 one-off fee per customer and a minimum €59 per month fee, per truck. Hubertus Troska, head of Mercedes-Benz trucks is unequivocal when it comes to the bene its. He says, "If customers take full advantage of the data, they will recover the system's costs very quickly.” The claimed fuel consumption bene its are between 5% and 15%. These accrue partly from routing ef iciencies, but primarily from the minute detail harvested by the driver assistance information.

To sell trucks in the USA, for example, Daimler acquired the Freightliner and Western Star brands, stopping off to pick up Detroit Diesel before heading for the checkout...

Freightliner remains a popular truck brand in the US

IFW March 2012

fleet profile DAIMLER TRUCKS

The driver performance data is as comprehensive as any we’ve yet seen, but with one important extra edge that M-B claim is unique to them. In addition to the usual measurement of a driver's sympathetic driving technique, there is an assessment of how arduous the route/payload is by factoring in the ‘degree of dif iculty’. This will single out the genuinely better driver and make allowance for topography and GVW. It also gives more detailed pointers toward coaching for those who achieve lower scores. Fleet operators should at least ruthlessly interrogate the system for that free irst four months. In an environment where service revenue from workshops is dropping due to extended service intervals, now up to 150,000km, it’s a shrewd move by Mercedes to effectively rent the data.

The ‘Green Party’ in Japan Daimler has been behind some of the biggest spending on alternative fuels in recent years. The frustration, of course, is that until significant orders come in, the speculative R&D expenditure will produce alternative powertrains, be they hybrids, fully electric or hydrogen-based that are typically double the cost of a regular dieselpowered chassis. In the case of the fuel cell, pioneered by Daimler in the early 90s, they’ve proved that the technology works, and that it can provide the perfect tailpipe emission of just water vapour. But they have yet to bring it to the market at a price that is affordable. When you have a sizeable global portfolio, it gives you the opportunity to segment your research and Daimler have established their centre of competence in hybrid technology development for light trucks at MFTBC in Japan. With group sales of nearly 2 million vehicles in 2011 and over a quarter of a million employees, they have the deep pockets required to keep going and they are clearly in it for the long haul.

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THE ROAD AHEAD...

Daimler is now in India with its BharatBenz truck factory in Chennai

Head of Daimler Trucks, Andreas Renschler, is a man at the front of a product offensive in spite of the economic blues being played, around Europe in particular. He says, “Results in the irst half of 2011 were very positive and we were able to sell signi icantly more trucks than in the same period last year.” He’s on record as being pragmatic about the cyclical nature of the business and his strategy of extending into the ‘BRIC’ markets will certainly be challenging. China in particular, although with vast potential, will be no pushover for him. Like other manufacturers who are eyeing up the possibilities there, it’s a game of cat and mouse with IPR (Intellectual Property Rights) needing to be closely guarded and carefully sculpted JVs being the best way forward. Daimler signed a JV with Foton Motor in 2010 and they are supplying diesel engine technology for Foton’s Auman truck brand, leading to joint exports. Russia’s Kamaz trucks have come a long way since their Brezhnev-era factory on the Kama river in Tartarstan. They have established two new Daimler-partnered operations. Fuso Kamaz Trucks and Mercedes-Benz Trucks Vostock, will see JVs for light and heavy truck production. India got a new Daimler truck brand of its own in early 2011 with the BharatBenz factory in Chennai which will produce marketspeci ic trucks from six to 49 tonnes. In the seventies, for many industrial concerns, being monolithic had been a simple way to crush the opposition, but it became unwieldy and left them with insuf icient agility to adapt to customer needs. Daimler’s size doesn’t appear to suffer from that old problem and it’s probably because it’s divided up in a logical and market-related way. For sure their parent organisation has made some expensive mistakes in recent years, the ten years of DaimlerChrysler for one, but as they say in all good stories: “Into every life a little rain must fall.” Fuso Kamaz Trucks are the face of Daimler in Russia

THE WORLD TRUCK

SOPHISTICATION: ARE FLEETS BOTHERED?

As the momentum of buyouts gathered in the late part of the last century, and truck makers were nervously buying each other up, there was an uneasy atmosphere of “We’d better do it to someone else, before it gets done to us.” Daimler ‘did it’ to a good number of others and has a resulting brand portfolio today. When the mud in the pond settled and there were fewer, larger truck makers or groups, the buzzword that soon came from these bigger players was the “World Truck.” The economies of scale that were now visualised by truck makers who had subsumed other brands – although not always their market shares – led to the concept of producing a truck model or range that would satisfy world markets. Daimler was not alone in mooting the idea, but the practicalities were against it. What suits a haulier in the US mid-west, does not satisfy a European, let alone an Asian operator. The idea never quite went away, such was the sweet taste it left in accountants’ mouths, but it’s of icial death was formally announced by Dr Dieter Zetsche, Daimler AG’s Chairman, when he drove the irst of icial production unit of his new Actros off the Wörth production line in September last year. Climbing down from the cab he admitted, “It’s true that there’s not going to be a world truck.” Citing the high cost of Europe’s hi-tech trucks as too expensive for emerging markets as just one issue among many, he added that there were still big savings to be had from operating across the globe. With the harmonisation of emissions regulations, “We can certainly modularise the heart of a truck – the powertrain,” he said. Adding in conclusion, “This also harbours the greatest synergy potential. Up to 50% of the total cost of a truck is powertrain-related.” Watch that space.

Traditionally the fleet operator and the owner-driver have had very different requirements from a truck, but a convergence is becoming more apparent than ever with Daimler’s new Actros. The writing was already on the wall with the Axor, Mercedes’ answer to the fleet customers – and there were plenty of them – who refused the Actros as too complex and sophisticated. Almost as soon as the Axor arrived in their yards, and it was exactly what they had asked for, fleet customers started enquiring about higher cabs, air conditioning and automated gearboxes. Having produced the bread-and-butter ‘fleet motor’ that customers had been looking for, Mercedes were a little non-plussed to be asked if it could now be turned into, effectively, a mini-Actros. It’s unclear what was producing this trend. By turns, the finger was pointed at driver retention, health and safety legislation, and residual values. It hasn’t stopped the Axor being one of Daimler’s most successful heavy truck products. The model is due to be replaced in time by the fleet version of the new, and certainly yet more sophisticated, Actros as part of a tractor model rationalisation. It will be interesting to note if fleet customers ask Mercedes for a bread-andbutter version of that. If they do, you couldn’t blame the Mercedes management for looking bored.

Sophisticated Actros provides fleets with many bespoke options

IFW March 2012

launch report BMW 3 Series p42 Peugeot 3008 HYbrid4 p43 Chevrolet Aveo p44 Ford Ranger p45

Better to drive, itâ&#x20AC;&#x2122;s also more efficient, practical and better equipped. p42

IFW March 2012

launch report

BMW 3 Series Europe’s benchmark fleet car gets even better as BMW launches latest 3 Series, says Graeme Lambert. SECTOR Compact executive saloon PRICE €30,030 – €42,880 FUEL 4.1 – 7.9l/100km CO2 109g/km – 186g/km The new BMW 3 Series has quite an act to follow, taking over from a car that shook up the corporate market, pushing emissions to levels thought barely possible only a few years before, while oﬀering performance, quality and rock solid whole life costs. This latest model made its public debut at the Detroit Show in January with sales beginning shortly after. Building on its predecessor’s strengths, the new 3 Series features BMW’s latest Eﬃcient Dynamics technology to improve economy across the range. It’s also more spacious, better equipped and the sportiest version to date. All engines now feature turbocharging, as well as BMW’s Driver Performance Control. DPC not only comes with Auto Stop-Start, shutting-down the engine when stationary, but also BMW’s new ECO PRO driver mode. Activate this option by using the in-car rocker switch to see when you’re driving most efficiently. It also alters the engine and electrical system parameters to improve efficiency. Crucially though, the display nestled beneath the rev-counter shows you how many miles your gentlefootedness has added to your range. BMW expects the system to reduce fuel consumption by 20 per cent. It works too. Over a short period, we added around 10

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miles (16km) to the distance-until-empty figure with little effort. The four diesel models will be the most popular in Europe; US buyers won’t get the option. Each diesel uses the same 2.0litre unit throughout. Differing outputs mean CO 2 emissions vary from 109 to 120g/km, and economy from 61.4mpg to 68.9mpg (4.1-4.6l/100km/51.1-57.4mpg US). The best figures relate to the 320d ED, which boasts 380Nm and 161hp, the economy champ even featuring a 0-62mph time of 8.0 seconds. Importantly for company car users, the Efficient Dynamics model will be available with the firm’s new eight-speed automatic gearbox, bringing no penalty to economy or emissions. It’s not just the turbodiesels that impress with their economy though, as the turbocharged petrols also feature large improvements in economy and emissions. Ignore the 3.0-litre straight six, as the pair of turbocharged 2.0-litre four cylinders are the stars in the petrol range. The higher-powered 242hp 328i boasts 45mpg (6.3l/100km/37.5mpg US) and CO2 of 149g/km, with the 320i achieving CO2 emissions of 147g/km. It’s how the 3 Series drives that has

always been key to its appeal though, and clear the firm is onto another winner. While the launch cars were loaded with kit including adaptive dampers and variable rate steering, the 3 Series strikes the almost perfect balance between ride and handling. Only the run flat tyres and some road noise let it down, and in every other respect it proves comfortable, refined and poised. There’s more space inside too, which answers any criticisms about the old model’s rear leg and shoulder room and there’s 20 litres added to the total luggage capacity – now a useful 480 litres (17.0cu.ft). Those sitting behind the wheel enjoy better quality and greater standard equipment than before. A new range of lines (Modern, Sport and Luxury Line) on top of the base model have distinct trim, colour and design changes inside and out has also been introduced. So even if the latest generation proves as popular as the previous, it’ll still stand out in the company car park.

verdict

While some might cite the styling as rather evolutionary, there really can be little argument that the new 3 Series is better to drive, more efficient, practical and better equipped.

Peugeot 3008 HYbrid4 Is the first diesel hybrid the Prius beater that it needs to be? John Kendall is not so sure. SECTOR Compact SUV PRICE From €25,870 FUEL 3.8 – 4.0l/100km CO2 99 – 104g/km It is almost exactly six years since I drove two diesel hybrid prototypes, based on a Peugeot 307 and Citroen C4. The two cars were meant to give a glimpse of what PSA Peugeot Citroen was going to be delivering and, of course, to ensure that Toyota and Honda did not grab all the hybrid headlines. They were powered by the 90hp PSA/Ford 1.6-litre common-rail diesel, with a 31hp electric motor sandwiched between the engine and PSA’s six-speed automated gearbox. PSA was realistic about the production timescale, telling me that production was unlikely before 2010, because there were pricing and technical issues to address. Pricing, I was assured, had to be no more than €1,000 more than the equivalent diesel model. With fuel consumption of 83.0mpg EU combined and carbon dioxide emissions of 90g/km, it looked promising for 2006 oﬀering emissions and fuel consumption out of the reach of petrol hybrids, which were only about as good as diesel cars of the time. Six years on and the ﬁrst production diesel hybrid has appeared. It is a Peugeot, a 3008 HYbrid4, based on the 3008 HDi. It has an automated manual gearbox, driven not by the latest 1.6HDi diesel, but by PSA’s two-litre 163hp diesel, which drives the front wheels through a six-speed automated gearbox. The

electric drive (now 37hp/27kW) has been transferred to the back axle, which seems like a good idea in weight distribution and traction terms. There are two versions, one delivering 74mpg/3.8l/100km (99g/km CO2), the other 70.6mpg/4.0l/100km (104g/km CO2). In other words, figures that can be bettered by current petrol hybrids. Taking UK pricing as an example, the cheaper model, the 99g/km version starts at £26,995 (inc VAT), while the equivalent diesel only, with the same engine and gearbox costs £23,995. That’s a price difference of £3,000 (€3,610), a bit more than €1,000... So on the face of it, this is not a good start for the world’s first diesel/electric hybrid car. And it seems that Peugeot knows that. Instead of focusing solely on the fuel and emissions saving capability of the car, the launch presentation took in the low emissions aspects, as well as the family car, sports car and crossover all-terrain potential. From the outside, it looks like any other 3008, launched some three years ago as a crossover competitor but in two wheel-drive only. It looks and initially feels like any other diesel 3008, but the hybrid system and battery pack are housed under the rear floor, leaving the car with respectable boot space – up to 420 litres with the rear seats up and

generous 1,500 litres with them folded down. In established hybrid style, the 3008 Hybrid 4 offers a choice of driving modes, in this case, four. These are ‘Auto’, ‘Sport’, ‘ZEV’ and 4WD. Apart from the 4WD option, the others are all familiar from existing hybrid models. Since the launch involved a slippery off-road course, it’s fair to say that the 4WD mode is more than a toy. The car has the kind of off-road capability to cope with slippery fields and tracks and could be a useful tool in snow and icy conditions. PSA’s automated gearbox cannot match the smoothness of a twin-clutch system. But the 3008 Hybrid4 uses the electric motor to maintain drive during gear changes, making it almost as smooth as an automatic. In ZEV mode, the car can travel for around four kilometres on fully charged batteries, although the diesel will cut in if you accelerate quickly. But fuel consumption is the reason for buying a hybrid and over our launch route, we couldn’t better an indicated 46mpg – a figure obtainable from a standard diesel.

verdict

At brief introduction, the 3008 Hybrid4 is disappointing, although good in parts. But we need to spend more time with it to assess its true potential.

IFW March 2012

launch report

Chevrolet Aveo It looks good, but does the latest Chevrolet deliver as well? John Kendall takes a look. SECTOR Supermini PRICE From €11,950 FUEL 3.6 – 6.3l/100km CO2 95 – 147g/km It’s an Aveo in Europe and Sonic in North America. Either way, the new Chevrolet five-door hatchback is another demonstration of the pace of change at GM’s core brand. It looks lower and wider than the car it replaces and features much crisper design than its predecessor. The latest Aveo may still have a budget car feel, but that is well in tune with the prevailing uncertain economic climate in Europe. Fleet and private buyers alike are looking at ways to stretch their spending and Chevrolet appears to be launching the right product at the right time, and right price. Budget it may be, but the Aveo comes well equipped. ESC electronic stability control is standard equipment for European models, in line with the regulations that will ensure that all cars and light CVs are equipped with these systems from 2014. It’s also standard for North America. The UK speciﬁcation entry-level LS model available at the launch included six air bags, air conditioning, cruise control, remote central locking and heated, electrically adjustable door mirrors, similar again to the North American entry-level speciﬁcation. European customers have a choice of three engines, two petrol and one diesel – which has two power outputs. The smallest

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petrol engine is a 1.2-litre 86hp unit, while the 1.4-litre engine delivers 100hp. The 1.3litre diesel, jointly developed by Fiat and GM around 10 years ago, offers 75hp or 95hp. Most models are equipped with a fivespeed manual gearbox, but the 95hp diesel gets six-speeds and the 1.4-litre has the option of a six-speed automatic. There’s also an ‘Eco’ rated 95hp diesel, equipped with a five-speed gearbox, as well as equipment such as automatic engine stop and start, to reduce CO2 emissions to 95g/km. ‘Eco’ labelling is not applied to the petrol models, but these are all fitted with automatic stop and start as standard. The Aveo has already notched up a fivestar EuroNCAP rating and the car’s stiffened bodyshell is one of the factors in this performance, along with the extensive use of high strength steels. Chevrolet also credits the stiffened structure with reduced noise levels inside the car. That said, road noise is at about the level we would expect from a budget model in this sector. Our choice would be for the 1.2-litre model, which offers CO2 emissions of 111g/km. Fleets will also be attracted to the diesels, which emit 99g/km for the 75hp model and 108g/km for the 95hp

model, as well as the ‘Eco’ variant. The 1.2-litre is lively and reasonably refined with adequate performance. The gearbox needs to be worked for hill climbing, but shifting is light and quick. It’s difficult to fault this particular model given such value for money. The 1.3-litre diesel has established a good reputation for durability and economy in other GM and Fiat products, but the on-cost compared with the 1.2-litre petrol would still be hard to claw back, especially at UK fuel prices. Even so, the 75hp 1.3-litre offers 3.8l/100km and considerably more urge than the petrol engines. This would have to be the most sensible diesel choice, even though the ‘Eco’ variant costs just a few hundred Euros more. It’s a matter of whether it’s really worth it for the comparatively small emissions gain. Fleets looking for a keenly priced model with more space than a supermini should take a good look.

verdict

The new Aveo is far more appealing than its predecessor thanks to crisp design, generous standard equipment and keen pricing. Well worth a look.

Ford Ranger Bigger and better Ranger pickup means Ford is set to give its rivals a hard time, reckons John Kendall. SECTOR Pickup truck PRICE €17,750 – €30,120 FUEL 7.3 – 10.4 l/100km CO2 192 – 274g/km The Ranger is no stranger, in that Ford has been selling a pickup truck with that name for over a decade, based on a Mazda model and built alongside it in Thailand. Two things have changed for Ford over the past decade though. Firstly, it has significantly dropped its shareholding in Mazda and secondly, it owned Land Rover long enough to apply the all-terrain vehicle knowledge to its pickup trucks. The result is a completely new vehicle, designed and developed by a team based in Australia. It is built in Thailand for Asia Pacific markets, South Africa for Europe and the US, and from late 2012 in Argentina for South America. In place of the Mazda derived 2.5 and three-litre four-cylinder diesels, used in the outgoing Ranger, Ford is using its own. Power for most models will come from Ford’s 2.2-litre diesel, delivering either 125hp or 150hp, designed for the Transit light CV and built in its Dagenham UK plant. It will also have the option of the 3.2-litre ﬁve-cylinder 200hp diesel also developed for the Transit, but dropped from the range when Euro-V engines were introduced last year. Ford will stay with the Ranger’s three cab options: single, ‘Regular Cab’, extended ‘Super Cab’ and double-cab, and a choice of

two-wheel drive and four-wheel drive models. The two-wheel drive model will only be available with the single cab and XL trim, aimed at work rather than leisure users. Three other trim options are available; XLT, Limited and Wildtrak. The top specification, Wildtrak, will only be available with the double-cab body and 3.2-litre engine, fitted with either six-speed manual or automatic transmission. An automatic option is also available with the 150PS four-cylinder engine. Predictably, it is larger than the outgoing Ranger and aimed squarely at the pickup competitors available in Europe; the Mitsubishi L200, Nissan Navara, Toyota Hilux and Volkswagen Amarok. To give them a run for their money, Ford is offering classleading towing capacity of 3,350kg, a payload capacity of up to 1,340kg and a wading depth of 800mm. The optional ESC electronic stability control system incorporates a number of driver assistance systems including hill descent control, which will control downhill descents on-road and off, without engine braking assistance. Ford lined up a selection of 150hp and 200hp double-cab models at the launch. On and off-road, the new Ranger offers a range of improvements over its predecessor. Engine noise is well suppressed making it a

more relaxing long distance drive and the suspension feels more compliant than before. We drove all examples unladen. With 375Nm of torque available from the 150hp engine between 1,500 and 2,500rpm, a lowrange gearbox and the electronic traction systems, it would take some fairly tough terrain to stop the Ranger and it made light work of the off-road course Ford had prepared. Like most rivals, switching between 4x2 and 4x4 high range can be done on the move, although stopping is needed to switch between 4x4 high and low ranges. Although relatively few buyers are expected to opt for the 3.2-litre diesel, it offers effortless refinement, particularly with the six-speed automatic gearbox. It could certainly be an attractive option for those exploiting the full towing capacity, although European users doing so for business purposes would need to fit a tachograph and may also need to satisfy operator licensing requirements.

verdict

The new Ranger is better all round. The arrival of the VW Amarok had left Ford behind, but the new model puts Ranger back among the class leaders.

IFW March 2012

S.W.O.T.

In association with

• Chrysler Ypsilon • Lancia Ypsilon

Why choose an Ypsilon? Lancia's Ypsilon – or Chrysler's for UK buyers – gets the TwinAir treatment. Does it live up to its eco promise? STRENGTHS In Europe, the Lancia brand still holds some remnants of its premium/sporty image. The Ypsilon delivers this effectively and, particularly in Twinair form, it will endear itself to any driving enthusiast. WEAKNESSES There are quite a few; there is the frontal design, the driving position, the awful heating system and, sadly, the disappointing fuel con-

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sumption of the Twinair when driven hard. The other is the badging in the UK – Lancia is not a favoured brand in the UK (although planned to return before the Fiat acquisition of Chrysler – it was always going to be a struggle), but how much better is Chrysler? Fiat Group have a lot of work on their hands to build brand equity.

OPPORTUNITIES The super mini sector is very competitive,

but the Ypsilon is on the button as far as price is concerned. Its practicality, despite its small size, will work strongly in its favour. It has a good chance to capture sales within its sector.

THREATS Despite the competition in the sector, the real threats to Ypsilon will be from within the Fiat group. Mito and 500 must be the real opposition with which it has to contend.

Branded Lancia across Europe with the exception of the UK, where it wears a Chrysler badge, this little ive-door super mini is Fiat 500 based with a 90mm extended wheelbase, but without the obvious chic and cachet that comes with its group sibling. Its styling is chunky and, although the frontal treatment is more likely to generate sympathy than affection, this is a practical piece of packaging in a small footprint. The clamshell bonnet sits atop an oversize grill. For some reason, you can buy versions (bi-colour) with a contrasting bonnet which is surely aimed at the minicab market. The rear doors have a derivation of the Alfa ‘hidden’ handles, which work fine if you are double jointed (or is it just that the author is left-handed?). Although the rear door entry is narrow, it is fairly tall and getting in and out is no real problem. Inside, you will have an interesting seat finish/design according to the spec. Whether you like or loathe the embossed ‘y’ in the fabric, all of the front seat designs hold you firmly and comfortably, but the lack of adjustment can get in the way. The steering wheel adjustment is limited to tilt only and the seat adjustment will be insufficient for many drivers. You may be lucky, nature might have given you just the right dimensions to fit the car – it is unlikely to be the other way about. The instrument pod is sited centrally, with

the speedo on the left hand side (or passenger side for UK use) and a cowl/sunshade stretching across the pod, unfortunately constructed of very cheap plastic. Below is the centre console with lots of gloss plastic and suf icient switch illumination to warm your hands on. The gear stick protrudes from the base of the console, falling easily to hand and offering slick changes, courtesy of the well spaced gear ratios in the ive-speed box. Heating is not a strong point of this car. There is heat, but rarely where you want it. The footwell vents are set well into the passenger compartment, providing hot calves and cold feet. In the very cold weather that prevailed during the test drive, the front side windows would not demist, even on full fan boost and a sti ling cabin temperature. However, all of these issues fade away when you drive the Ypsilon. It comes with 3 engine choices – the 1.2 ‘FIRE’ petrol 4 pot, producing 68hp, the 1.3 Multijet diesel with 95hp and the amazing 0.9 petrol Twinair. With focus on economy and emissions, the Twinair version which we drove, instantly nicknamed ‘Mutley’, was certainly one eager puppy. This 875c.c. two cylinder engine, awarded Engine of the Year in 2011, takes you back to the air-cooled twin of the original 500, but boasts a little turbocharger which pulls the car along like a young dog on a leash. Sadly, in lower gears, just when you get to the point of thinking

‘what fun’, the rev limiter cuts in, tossing all occupants forward as the acceleration falls off a cliff. However, once you learn to change gear fractionally before the limiter operates, you really start to enjoy this clever little unit. It will happily and quietly cruise at 140kph (85+mph). Although this engine achieves the sub 100gms CO2 threshold, fuel consumption disappoints. Driven with enjoyment, it is nowhere near the claimed 4.2l/100km (67.3mpg). The two cylinder engine produces a unique growl, especially under an enthusiastic right foot. In fact, whatever it’s doing, it has a range of endearing mutters and splutters. At tickover, especially before it reaches temperature, it clicks and ticks away to itself, under hard acceleration in low gears, the growl is almost excessive, before becoming more muted in 3rd and 4th gears. Then there is the reason for the nickname of ‘Mutley’. Switch off the engine and it emits a somewhat asthmatic chuckle – as if something nasty just happened to Dick Dastardly. Love it! As for the handling, there is plenty of roll, yet the torsion bar rear suspension hangs on well and the ride is comfortable, whatever the road surface. Clearly a city car, yet it acquits itself well on autobahn and motorway. But best, by far, on country roads. This car is a fun drive – more what you would expect from a Lancia perhaps, than a Chrysler. But what’s the difference?

CROSS BORDER COMPARISONS List Price

Portugal

Spain

Italy

Germany

France

Euro – Low end

12,463

14,300

15,200

13,800

12,500

15,800

Top end

18,250

19,600

18,200

17,500

18,400

20,100

£S – Low end

10,695

Top end Spec & Trim

15,695

Silver

Gold

Limited

Platinum

Platinum+

Engines Petrol Diesel

1.2 69hp

0.9 Twinair 85hp

1.3 MultiJet 95hp

IFW March 2012

fleet in figures

Slow 2012 start for cars in Europe. CVs strong in 2011. Has the Eurozone crisis struck the car market? Meanwhile trucks and vans enjoyed a strong 2011. 80% of Nissan’s European January sales were locally produced.

European car registrations got off to a rocky start in 2012 with January data showing new car sales for the month running 7.1% down on January 2011, according to data from the European Automobile Manufacturer’s Association, ACEA. Overall 968,769 registrations were recorded in the EU27 countries, compared with 1,042,991 in January 2011. Add in the EFTA countries and the total rises to 1,003,313, down 6.6% on the January 2011 total of 1,073,889. The January decline continues a downward pattern that started in September 2011. Automotive data gatherer JATO Dynamics identified the figures as the worst start to a year since 2009, with continuing uncertainty gripping the Eurozone. JATO highlights a combined fall in sales in France and Italy totalling 66,481 compared with January 2011. Only Volkswagen, Audi and Mercedes recorded overall increases.

The VW Golf remained the best selling model, followed by the VW Polo, with the Ford Fiesta in third place ahead of the Ford Focus and Renault Clio. January’s tenth Top 10 Brands Make

Jan 2012

Jan 2011

Volkswagen

129,036

128,985

Ford

83,824

Peugeot

67,616

Renault

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% Change Jan Jan YtD 2012

Jan YtD 2011

0.0%

129,036

128,985

87,126

-3.8%

83,824

87,126

79,599

-15.1%

67,616

79,599

64,354

89,395

-28.0%

64,354

89,395

Opel/Vauxhall

57,700

72,896

-20.8%

57,700

72,896

Citroen

57,100

65,758

-13.2%

57,100

65,758

Audi

51,350

48,063

+6.8%

51,350

48,063

Fiat

48,731

59,726

-18.4%

48,731

59,726

Toyota

44,394

51,253

-13.4%

44,394

51,253

Mercedes Benz

44,133

40,771

+8.2%

44,133

40,771

Source - JATO

best-selling model, the Skoda Octavia, recorded an increase of 22.1% to 16,565 in January compared with January 2011. LMC Automotive, which acquired the J.D.

Power forecasting division last November, suggests that a year ago French manufacturers were benefiting from the tail end of scrappage incentives in the country and that has contributed to the large-scale decline in French registrations. Volkswagen’s European deliveries for January rose 0.8% to 125,500 compared with January 2011, following a similar pattern to the company’s global deliveries, which were up 0.1% to 419,200. US sales rose by 47.9% to 27,200. While GM recorded a 2011 full year EBIT adjusted income of $8.3 billion (€6.4 billion) globally, its European Opel and Vauxhall operations are still posting a loss. GM Europe reported an EBIT adjusted loss of $0.7 billion (€0.54 billion) for the year, although this is $1.3 billion (€1 billion) better than 2010. Nissan reports a 15% rise in European January sales to 55,098 compared with January 2011 and says that locally built models accounted for around 80% of sales. Qashqai racked up some 20,000 sales in the month, with Juke sales rising 33% compared with January 2011. Perhaps this is not surprising given that the compact crossover model was not launched until the fourth quarter 2010, but even so, sales growth for the Juke is well above the market average. The continuing economic uncertainty in Europe appears to have claimed a victim in the Mitsubishi Motors Nedcar plant at Born in the Netherlands. The company produces European Colt and Outlander models there but announced in early February that the plant will not produce a new model from 2013 onwards. In December 2010 Mitsubishi made several announcements concerning Nedcar; that it would end local Colt production at the end of 2012, continue knocked down kit production of the Outlander until the end of 2012 and consider Nedcar’s future after that. The company has blamed the “Wildly luctuating operating environment”, on the decision to end production. Talks about the long-term future of the plant are promised. After the end of the year, European Mitsubishi models will be sourced from Japan and Thailand – where the L200 pickup is produced. The decision brings to an end 45 years of car making in the plant, which opened in 1967 to build DAF cars and continued after DAF sold its car business to Volvo in the 1970s. It became a three-way joint venture

between Volvo, Mitsubishi and the Dutch State in 1991, but Mitsubishi bought out the other partners in 2001. The plant currently employs around 1,500.

Mitsubishi’s European January sales were 18.3% down on January 2010 to 7,340, giving the company a 0.8% share of the European market.

Top 10 Models Make

Jan 2012

Jan 2011

Volkswagen Golf

36,799

36,963

-0.4%

36,799

36,963

Volkswagen Polo

25,895

29,179

-11.3%

25,895

29,179

Ford Fiesta

23,870

27,366

-12.8%

23,870

27,366

Ford Focus

22,316

20,794

+7.3%

22,316

20,794

% Change Jan Jan YtD 2012

Jan YtD 2011

Renault Clio

18,674

25,946

-28.0%

18,674

25,946

Peugeot 207

18,325

21,026

-12.8%

18,325

21,026

Volkswagen Passat

17,694

15,337

+15.4%

17,694

15,337

Opel/Vauxhall Astra

17,153

20,933

-18.1%

17,153

20,933

Nissan Qashqai

16,881

17,145

-1.5%

16,881

17,145

Skoda Octavia

16,565

13,566

+22.1%

16,565

13,566

Jan 2012

Jan 2011

Source - JATO

Sales by Market Country

% Change Jan Jan YtD 2012

Jan YtD 2011

Austria

26,826

25,584

+4.9%

26,826

25,584

Belgium

44,732

53,236

-16.0%

44,732

53,236

Croatia

3,488

3,317

+5.2%

3,488

3,317

Cyprus*

1,153

1,273

-9.4%

1,153

1,273

Czech Republic

12,921

11,678

+10.6%

12,921

11,678 12,377

Denmark

12,766

12,377

+3.1%

12,766

Estonia*

1,483

1,323

+12.1%

1,483

1,323

Finland

14,232

13,786

+3.2%

14,232

13,786

France

147,057

185,521

-20.7%

147,057

185,521

Germany

210,195

211,056

-0.4%

210,195

211,056

Great Britain

128,853

128,811

+0.0%

128,853

128,811

Greece

8,405

9,736

-13.7%

8,405

9,736

Hungary

4,980

3,446

+44.5%

4,980

3,446

Iceland

320

197

+62.4%

320

197

Ireland

21,313

20,999

+1.5%

21,313

20,999

138,056

166,073

-16.9%

138,056

166,073

882

732

+20.5%

882

732

1,008

846

+19.1%

1,008

846

Italy Latvia Lithuania Luxembourg

3,649

3,353

+8.8%

3,649

3,353

Norway

10,860

10,400

+4.4%

10,860

10,400

Poland*

21,700

18,957

+14.5%

21,700

18,957

Portugal

6,949

13,225

-47.5%

6,949

13,225

Romania

3,475

4,399

-21.0%

3,475

4,399

Serbia

1,409

1,419

-0.7%

1,409

1,419

Slovakia

4,802

4,424

+8.5%

4,802

4,424

Slovenia

5,011

5,427

-7.7%

5,011

5,427

Spain

54,966

53,805

+2.2%

54,966

53,805

Sweden

18,686

19,244

-2.9%

18,686

19,244

Switzerland

23,221

20,551

+13.0%

23,221

20,551

The Netherlands

70,416

74,782

-5.8%

70,416

74,782

1,003,814

1,079,977

-7.1%

1,003,814

1,079,977

Grand Total

* Denotes estimated data used for January 2012. Source - JATO

IFW March 2012

fleet in figures

Commercial Vehicles ¡

If the European car market is still struggling with recovery in the wake of the 2008 inancial crisis, the CV market presents a different picture. Full year ACEA data for the European CV market is now available. This shows that overall commercial vehicle registrations grew by 9.9% to 1,936,162, but was still some way below the pre-crisis average of around 2.5 million vehicles annually. Add in EFTA sales and the total tops two million at 2,012,369 up 10.3% on 2010. We need to add a qualifying comment here. The European investigation into truck pricing has meant that companies are now cautious about sharing data. DAF, based in the Netherlands, although part of the US PACCAR group, has not posted data this year. Since the company has been a strong player in the European CV market it seems reasonable to assume that a large proportion of the ‘other’ column in ACEA data may be attributable to the Dutch truck and bus maker. It is light commercial vehicles up to 3,500kg gross vehicle weight (GVW) that,

as usual, makes up the vast majority of the CV figures. The EU total reached 1,586,255 in 2011, up 7% on 2010. Factor in EFTA and the total reaches 1,650,978. If French manufacturers had a poor year for car sales in 2011, the same was not true for light CVs. Renault held its long standing position as the best selling European light CV manufacturer, posting 261,453 registrations, up 15.8% on 2010 and with Dacia, bringing a group total of 276,844. French rival PSA Peugeot Citroen could claim the highest group sales with Citroen posting 177,399 (+10.7%) and Peugeot 174,509 (+10.5%), giving a combined total of 351,908 (+21.2%). VW recorded the second highest European sales with a total of 204,432 (+12.3%). Fiat can claim third place with 187,374 sales (+11.3%) ahead of Ford by a small margin with 185,006 (+11.2%). Mercedes took seventh place with 135,135 sales, up 8.1% on 2010. Considering Mercedes’ performance was achieved with just two van models, the Vito

LCV up to 3,500kg GVW EU27 + EFTA Top 10 Brands

Manufacturer

2011 sales

2010 sales

Change %

Renault

261,453

247,791

5.2%

204,432

169,320

17.2%

Fiat

187,134

177,842

5.0%

Ford

185,006

166,251

10.1%

Citroen

177,399

174,732

1.5%

Peugeot

174,509

168,256

3.6%

Mercedes-Benz

135,135

124,823

7.6%

Opel/Vauxhall

91,184

76,956

15.6%

Nissan

53,969

42,863

20.6%

Iveco

50,001

47,244

5.5%

HCV 3,500kg and above EU27 + EFTA Top 10 Brands

Manufacturer

2011 sales

2010 sales

Change %

Mercedes-Benz

69,118

62,287

9.9%

MAN

50,400

38,403

23.8%

Other

47,307

Volvo Truck

36,757

26,549

27.8%

Iveco

33,028

31,354

5.1%

Scania

30,178

23,986

20.5%

Renault Truck

28,224

22,580

20.0%

Fiat

3,356

2,856

14.9%

Mitsubishi

2,634

2,711

-2.8%

1,604

2,038

-21.3%

Source - ACEA

internationalfleetworld.com

and Sprinter and not the comprehensive range offered by most rivals, this is an impressive performance. The company will launch the Renault Kangoo-based Citan van in the fourth quarter and this should help to strengthen Mercedes commercial vehicle performance from 2013. Heavy trucks were the last to recover after the inancial crisis, but grew strongly through 2011. Figures for the year for vehicles of 16-tonnes GVW and above reached 236,512, a 36% increase over 2010. Mercedes-Benz was the market leader in this sector with 44,559 registrations, up 19.9% on 2010. MAN posted the second highest registrations with 38,494, a 17.2% increase on 2010. DAF was probably close behind in third place. Fourth and ifth places were taken by the Swedish manufacturers Volvo and Scania respectively. Volvo sold 34,754 trucks (+15.6%) and Scania 30,166 (+13.5%). Iveco posted an increase of 7% but its performance was the weakest in this sector with 15,574 registrations. The group with the largest number of registrations was Volvo, posting 34,754 registrations (+15.6%), plus subsidiary Renault Trucks with 22,457 (+10.1%). Renault Trucks seems to have undergone a transformation of its fortunes in recent years. The company’s products enjoyed an indifferent reputation in the past, but since the Volvo acquisition they now appear to be viewed as a ‘reasonably priced Volvo’, by transport operators and sales have risen accordingly.

Buses and coaches Buses and coaches have had a dif icult few years, but the market looked healthy in 2011 with all manufacturers posting sales increases. Total EU 27 and EFTA sales reached 33,911 for the year. Iveco Irisbus dominated here with 7,522 sales, an increase of 22.2% on 2010. Mercedes came a close second with 7,496 sales (+22.1%) and could claim the highest group total with 9,288, factoring in Mercedes’ Setra division. The ACEA ‘other’ column shows 6,908 sales for the year, again probably mostly attributable to DAF. MAN bus and coach sales rose to 3,299 (+9.7%), with Volvo and Scania in ifth and sixth places with 2,483 (+7.3% and 1,684 (+5.0%) respectively. Ford’s total of 1,277 is probably attributable to minibus sales since no new European minibus can accommodate 17-seats on a vehicle with a gross weight below 3,500kg.

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