International Fleet World March 2013

MARCH 2013

internationalfleetworld.com

INTERNATIONAL

FLEETW RLD Essential Business Information for International Fleet Decision Makers

Environment

Driven

The benefits of fuel cards to fleets

Range Rover New Golf Mazda6

ALONE AT LAST Interesting times ahead for newly-independent Mazda

SEE INSIDE FOR DETAILS

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MARCH 2013

internationalfleetworld.com

INTERNATIONAL

FLEETW RLD Essential Business Information for International Fleet Decision Makers

Environment

Driven

The benefits of fuel cards to fleets

Range Rover New Golf Mazda6

ALONE AT LAST Interesting times ahead for newly-independent Mazda

SEE INSIDE FOR DETAILS

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

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

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VIEWPOINT

CONTENTS

The J.D. Power Customer Satisfaction survey has always been compulsive reading and the 2013 US Dependability Study is no less so.

According to J.D. Power: ”The study measures problems experienced during the past 12 months by original owners of three-year-old vehicles (those that were introduced for the 2010 model year). Overall dependability is determined by the number of problems experienced per 100 vehicles (PP100), with a lower score reflecting higher quality.” The data on which it is based should be fairly sound as it based on responses from more than 37,000 original owners, although the press release does not give individual sample sizes.

Lexus came out as the most dependable brand with a score of 71. Toyota brands took 7 awards in total and General Motors 4, with Buick in 6th place (118) right behind MercedesBenz (115). The industry average score was 126.

What was interesting to me was how different brands in the same group performed.

Porsche with a score of 94 came in second, while Volkswagen (174) was 5th from the bottom. Even Audi’s performance left room for improvement with 147. Do VW Group parts and build quality differ that much? Lincoln (112) came in 3rd while Ford (127) managed 14th.

Japanese brands were once seen as offering lessons in build quality to US brands such as GM, yet Buick and Chevrolet (125) are in the top half of the table while Nissan (137) and Infiniti (138) are at 20th and 21st places respectively.

Having visited a GM plant in the UK recently, I could see for myself how the company has been rigorously overhauling its manufacturing processes, and measures plant against plant for quality to keep stepping up the improvements. It looks as though those efforts are starting to pay off.

Others have work to do. Ram (122) may be looking good, but Chrysler (153), Jeep (178) and Dodge (190) have lessons to learn. Even if we allow for the fact that off-road vehicles are likely to suffer more problems than others (if they are used off-road), Land Rover’s lowly showing (220) at the bottom of the chart shows that the company’s profits could be put to good use.

04 News Analysis 10 EV news analysis 12 Environment How fuel cards can help save money and streamline your fleet.

16 Detroit Motor Show We pick out the future fleet stars.

20 Technology Driver assistance features, and their role in keeping your fleet safe.

22 Strategy European residual value confidence.

25 Management Hertz: the low-down on one of the rental industry’s oldest names.

29 FLEET WORLD FLEET SHOW 2013 Why you need to be at Silverstone in April.

32 FOCUS ON ITALY.

36 Industry analysis 38 FLEET PROFILE Mazda

44 2013 fleet calendar 45 Launch Report Volkswagen Golf / Range Rover / Mazda6 / Mercedes-Benz Arocs.

50 Fleet in figures Analysing the latest ACEA sales charts.

12 25 38 46

John Kendall Editor

IFW March 2013

03

news analysis

Volkswagen targets 800,000 American sales Volkswagen plans to nearly double sales in the US within the next five years as part of its plan to be the world’s number one automaker by 2018.

The company has just recorded a third successive double-digit sales increase in America, which has seen registrations double to a total of 438,000 last year. The 2012 increase was 35% following rises of 26% in 2011 and 20% in 2010.

But the target is to take this to 800,000 by 2018, with Audi chipping in with another 200,000 sales for a total of one million. ”Historically we have under-performed (in the US),” says the British CEO of Volkswagen America, Jonathan Browning. ”In 2007 we asked ourselves what does it take for a step-change, and our thought process was that we would not get where we wanted to be if we continued to behave as we did.”

That led to a decision to add a factory in Chattanooga, Tennessee, to the production facility it already had in Mexico. Now Volkswagen sources three out of every four cars it sells in the US from its factories on the North American continent. And a new engine plant in Mexico is about to open.

But that alone will not help Volkswagen achieve its ambitious goals, Browning admits. ”The four most important sectors in the US are compact sedans, which we cover with the Jetta; medium sedans, where we have the new Passat; compact SUVs like the Tiguan; and medium SUVs, which is where we have a gap,” he added.

Volkswagen has shown the CrossBlue concept at Detroit which, given a positive response, will go into production to address the medium SUV issue. And Browning is confident Volkswagen can increase its share in each of the other three major market sectors to get closer to the 800,000 target. ”We sell 30,000 Tiguans in a market sector worth two million cars a year, so there is huge potential there,” he said. Volkswagen also plans to add diesels to the Tiguan line-up in America. ”There is lots we can do,” he added.

At Detroit Volkswagen is also hinting at how it could expand the US Passat range with the Passat Performance Concept.

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Ford switches focus to commercial vehicles

Ford did not have a single new car to unveil at Detroit this year. Instead the attention was entirely on its commercial vehicle range, plus a concept for what could be the next F-Series pick-up truck.

But when 47% of the commercial vehicles on American roads are Fords and the Transit has been the UK market leader for almost half a century, it is perhaps forgivable that the auto industry's workhorses should be allowed into the parade ring for once.

Ford revealed a new Transit to replace the current model in Europe and the E-Series in North America, and a new Transit Connect.

In the US the new Transit will be available with a 3.7litre V6, the 3.5-litre Ecoboost V6 and, for the first time, a diesel – a new five-cylinder 3.2-litre unit belonging to the company's Duratorq family.

The American range, to be built at the upgraded Kansas City plant, will offer multiple size options, including three roof heights, and up to 14.2m3 or load space almost 80% more than in the largest E-Series.

There will be chassis cab and cutaway versions, plus special models to serve as ambulances or airport shuttle vehicles.

The re-engineered Transit Connect will be sold with two different wheelbases in North America, and a choice of the 1.6-litre Ecoboost engine or a 2.5-litre four-cylinder unit. As with the Transit, there is no indication of the European line-up.

Ford says the new Connect can carry up to 725kg of cargo or tow a 900kg trailer. Both models enter the US market in the fourth quarter of 2013.

CVs make up 29% of all vehicle sales and the market is expected to grow by a further 28% – or 4.8 million – by 2017.

The Ford F-Series is one of the top-selling vehicles of all time and the Atlas Concept has been created ”to showcase the design, capability, fuel efficiency and smart technologies that will define future pick-up trucks,” says product development chief, Raj Nair.

It has active aerodynamics in the form of grille and wheel shutters, automatically folding side running boards and a front airdam, which is only deployed at high speeds, all with the aim of reducing drag.

The tailgate can hold extra-long loads above the rear deck to free more space, and the car helps the driver hook up trailers and back into parking spaces when towing.

for the latest news, visit internationalfleetworld.com

Tesla removing the barriers to EV ownership

Chrysler to launch US finance operation

American electric car company Tesla says it wants to ‘take away every hurdle’ to electric car ownership - and is setting up a chain of free fast-charge stations so that owners will be able to drive exactly as they could in a car with an internal combustion engine.

Tesla established eight of these so-called superchargers at the end of last year, mainly in California. They are said to be capable of giving the mid-sized Model S executive car a 240km range in 30 minutes. The plan is to cover the entire east and west coasts of America initially, and then the whole of the USA. And the supercharger idea will be rolled out in other countries where Tesla sells. ”It is our aim that you will be able to take a trip just as you would in an internal combustion-engined car," said head of sales and ownership, George Blankenship. "In the time it takes for you to stop and have lunch you can put another 240km of range into the car. Ultimately it's our goal to do this with solar energy. We have said that we will make electricity free forever on sunlight.”

Tesla expects to sell 20,000 cars globally in 2013 and to increase its total of worldwide stores from 33 to 58. Half of the additions will be outside America, including its first store in China.

Chrysler is set to launch Chrysler Capital, a joint venture with Santander Consumer USA on May 1 2013. The company will provide finance to Chrysler customers and Chrysler Group and Fiat dealers in the US. Lease finance is among the options that will be available to Chrysler, Jeep, Dodge, Ram Truck, SRT and Fiat customers. ”We expect Chrysler Capital to help Chrysler Group continue its sales growth by offering consumers the most competitive and innovative retail purchase and lease financing available in the marketplace,” said Peter Grady, vice president of network development and fleet for Chrysler Group.

Under the 10-year, private label agreement, Santander Consumer USA will establish a separate business unit to provide financial services under the Chrysler Capital name. Chrysler Group will get a non-refundable upfront payment and a quarterly share of the revenues under the agreement.

VW Credit claims record contracts and assets in 2012 VW Credit, the captive finance partner of Volkswagen and Audi in the United States, increased the number of new contracts signed in 2012 by 28.3% compared with 2011 to 404,947. This increased the number of current contracts by 13.4% to a record 950,873. Total assets during the 2012 business year rose 17.5% to a value of €17.3bn. ”VW Credit financed 60% of all vehicles sold by the Volkswagen brand and 54% of the Audi Brand during the business year 2012,” said Dr. Christian Dahlheim, executive vice president and chief financial officer of VW Credit.

IFW March 2013

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news analysis

Bentley close to deciding on adding an SUV A final decision on whether Bentley will go ahead with its first SUV, based on the concept from the 2012 Geneva Show, will be made in the ”relatively near future,” according to member of the board for sales and marketing, Kevin Rose. ”We have always said that if we decide to do it we would like it by 2015, and it would take two to two-and-a-half years to complete,” said Rose. ”We are working as if it is going to go ahead and I am optimistic that it will, but this would be a big investment for the group, and we would be going into a market which currently does not exist.”

An SUV would be ”significant for volumes,” said Rose, with the potential to push sales way beyond the company's 2007 record of 10,000. ”30% of our customers have an SUV and we estimate that 90% of our sales would be capture business,” Rose continued. ”The US would be our biggest market to begin with, with China and the Middle East picking up again.”

Bentley is targeting a customer base above that for the new Range Rover and the Porsche Cayenne. Maserati is planning a super-luxury SUV to challenge the Bentley, but Rose says: ”We will still be the first to market, I think.”

Looking further ahead, Rose sees the potential for a longer wheelbase version of the flagship Mulsanne when the next-generation model comes along at the end of the decade, with the option of an electronic separator between the driver compartment and the rear of the car. ”It's something we at looking at for China,” he said.

Bentley’s first SUV will target a customer base above that for the Range Rover and the Porsche Cayenne.

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Merc targets Generation Y

The new Mercedes CLA will give the company access to a new generation of buyers says sales and marketing chief, Joachim Schmidt.

He wants to attract the so-called Generation Y – the young and young at heart.

Schmidt said: ”This car gives us the chance to draw customers we didn't have access to before, especially in markets where the A-class isn't sold. This will be the foundation of our future growth, appealing to Generation Y buyers and those young at heart.”

Due in European showrooms in May, the CLA will be priced around €29,000. There will also be a performance AMG version with a turbocharged 2-litre engine.

BMW shows off 4 Series concept Last year was ‘phenomenal’ in terms of sales for the BMW Group, including its British brands MINI and Rolls-Royce, and things can only get better, says the German company’s sales and marketing chief.

That's because it is launching yet more new cars over the coming months. The Detroit Show saw world premieres for the new Z4 roadster, the M6 Gran Coupé and the much-awaited new Concept 4 Series Coupé, which will eventually replace the 3 Series coupe.

The production version of the Concept 4 Series Coupé is expected in showrooms by the end of this year with variants on the theme following close behind.

Ian Robertson, BMW’s sales and marketing director, said that the concept is ”more dynamic and has more presence that the 3 Series so this is why we calling it a 4 Series.”

The show car is close to the eventual production model and is set apart from the current 3 Series with a more aggressive stance thanks to a wider track and lower roofline.

Robertson said: ”This is a new chapter for BMW. We wanted to make a coupe that stands above all others and we are confident that it will define the segment.”

He added that the BMW Group sold 1.85 million cars in 2012, an increase of 11% over the previous year. ”We are optimistic that we can set a new record again this year as we launch new models including our electric vehicles. ”We have great expectations for the M6 Gran Coupé in the US which is the largest market in the world for our M performance models.” (see page 16 for more details on the 4 Series concept).

for the latest news, visit internationalfleetworld.com

Fiat chief wants EU help for industry The boss of Italian car giant Fiat wants the EU to step in and help rescue Europe’s beleaguered automotive industry.

As carmakers struggle with falling sales, Sergio Marchionne called for intervention on a European level to stop individual companies and countries making unilateral decisions, which are not in the interests of a single market.

Marchionne, who also heads up American car firm Chrysler, drew parallels with what happened in the US industry when the economic crisis hit in 2007.

Vehicle sales there slumped from 16 million a year to just 10 million and the government stepped in to bail out automakers.

Enforced Chapter 11 bankruptcies, where the state took control, allowed the carmakers to ”cleanse out the old companies and to re-shape and re-size”, he said. ”The parallel with Europe is startling. People just aren't buying cars. In Italy last year the market came down to the same number of sales as there were in 1979 – we have lost 33 years of volume growth. Car factories all round Europe are tooled up to deal with volume expectations, which just have not materialised. ”I would like an intervention at a European level and a stop to the unilateral actions being taken in some countries at the expense of others. That is not how a single market should work.”

Marchionne said that the big volume makers are losing billions of euros a year and factory closures are already under way - Ford plants in the UK and Belgium, General Motors in Antwerp, PSA Peugeot Citroën in France and Fiat in Italy.

He added: ”This is a painful process that often favours one market over another.”

Marchionne, as chairman of the European carmakers' association ACEA, has been lobbying the EU but said he is being ignored. ”We are selling cars at ridiculously low prices and this cannot continue forever. The EU should act and provide support to help the industry restructure and build a growth agenda.”

Marchionne said he did not see the markets rebounding for some time, and certainly not in 2013.

Horbury seeks a Chinese design Styling a car that looks Chinese is the challenge facing British designer Peter Horbury.

Horbury was head of design at Volvo when the company was taken over by the Chinese carmaker Geely, and he now divides his time between Sweden and China.

As head of design now for Geely his task is to establish a brand identity as well as to put together a new in-house team.

This is based in Shanghai and the goal is to establish Geely's own design capability rather than relying on outsourcing to styling houses around the world.

Horbury said: ”The disadvantage of outsourcing is that you have to teach new people all time about the brand heritage and ambitions. There are definite advantages in having an in-house team.”

First that brand heritage has to be established and Horbury's ambition is to make the cars ‘look' Chinese. ”I'm not talking about having pagoda roofs or anything radical, but there is a certain subtlety I am looking for. I want to introduce some Chinese inspiration into the design language. There is a huge history in the country in terms of art and architecture going back 5,000 years.

What does that design involve? ”It's quite difficult to quantify,” said Horbury. ”For example there are certain curves in the architecture which are unmistakably Chinese. I say to my designers that if they draw a line with a brush stroke rather than a marker pen they will get a very different effect, almost like the ancient Chinese calligraphers. The result can be exquisite. ”Chinese people tend to prefer rounded rather than sharp designs that are in harmony. That is an effect I am looking for and it is a very exciting prospect. I want people to be able to look at a Geely and see it as a Chinese car, pretty much in the way you know a German car or a French one.”

Improved charging for Nissan LEAF New Nissan LEAF drivers will be able to charge their electric car up much quicker.

The 2013 model, unveiled at the Detroit Show, will have a larger on-board 6.6kW charger, which reduces total charging time by nearly half, to around four hours.

Pierre Loing, Nissan’s product planning chief for the America’s, said: ”This will be a big step forward for the LEAF addressing concerns over the range and charging time.

"We are also looking at easier ways to charge the car when people are at work. The LEAF is fine so long as the range can get you to work and back but if we can make charging at work easier then it opens the car up to more customers.”

The LEAF and its battery is built at Nissan’s US factory in Smyrna, Tennessee, while production of the car at the company’s UK plant at Sunderland is due to begin this spring.

Further changes to the car include a new, energy efficient heating system and a new drive mode, which increases regenerative braking during deceleration.

IFW March 2013

07

CO²OL*

*The new A-Class¹ with CO₂ emissions as low as 92 g/km.

A Daimler Brand

In addition to the A 180 CDI BlueEFFICIENCY, Mercedes-Benz also offers the ultimate in matters of efficiency with the new A-Class BlueEFFICIENCY Edition. Thanks to the consumption of just 3.2 l/100 km, the new A 180 CDI BlueEFFICIENCY Edition is one of the most efficient diesel vehicles in the compact car segment. And the reduced CO₂ value of just 92 g/km helps to decrease consumption by up to 5%. Incidentally, its cw value, which has been reduced to 0.26, is the very best in the hatchback segment. Find out more at www.mercedes-benz.com/fleet

¹Fuel consumption urban/extra-urban/combined: 8.4–4.2/5.1–3.2/6.4–3.6 l/100 km; combined CO₂ emissions: 148–92 g/km.

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

Provider: Daimler AG, MercedesstraĂ&#x;e 137, 70327 Stuttgart

EV news analysis

Daimler, Ford and Renault-Nissan to co-develop fuel cell technology Daimler, Ford and the Renault-Nissan Alliance have signed a three-way agreement aimed at commercialising what is claimed to be the world’s first affordable, mass-market fuel cell electric vehicles by as early as 2017.

Each of the three carmakers is to invest an equal, but as yet unannounced, amount of money in the project, which will develop a common hydrogen fuel cell system that can be used in diverse and otherwise unrelated models across all their product ranges. By doing so, the aim is to accelerate the speed of development and create economies of scale, in turn reducing the cost for consumers and making the technology more financially viable. ”Working together will significantly help speed this technology to market at a more affordable cost to our customers,” said Raj Nair, group vice president, Global Product Development, Ford Motor Company. ”We will all benefit from this relationship as the resulting solution will be better than any one company working alone.”

The three carmakers will jointly undertake engineering work on both the fuel cell stack and the fuel cell system at several locations around the world and will also look into the joint development of other FCEV components.

In a statement, the firms added that the collaboration across three continents and three companies would help

define global specifications and component standards. The companies said that the agreement sends clear signal to suppliers, policymakers and the industry to encourage the further development of hydrogen infrastructure worldwide.

The agreement follows the signing of a similar deal between Honda, Toyota, Nissan and Hyundai to support the introduction of fuel cell cars into Nordic countries. Daimler and Nissan are also among the carmakers involved in the UKH2Mobility project, which aims to assess and assist the UK’s requirements for a supporting refuelling infrastructure.

Raj Nair from Ford, Prof. Thomas Weber from Daimler and Mitsuhiko Yamashita from Nissan.

GM to consolidate powertrain development in U.S. General Motors has announced a €149.5m investment in its Global Powertrain Engineering Headquarters in Pontiac, Michigan, in a move to save money on leased properties elsewhere, create jobs and accelerate the development of nextgeneration hybrid, electric and fuel cell technology.

The 41,800m2 facility already includes facilities for extreme condition testing, and will gain an additional 12,820m2 test wing by the end of 2014. Part of a €1.12bn investment in its North American facilities announced for this year, which will create 400 jobs in the area and reduce the carmaker’s floor space by 59,460m2 and three leased facilities once completed.

Four external departments will move to Pontiac as part of the plans. The hydrogen fuel cell facility in Honoeye Falls, New York, will be consolidated in mid-2013 as already announced.

This will be followed by Castleton, Indiana, in mid-2014, which is responsible for heavy-duty transmission, power electronics, hybrid and battery electric drive unit development.

During the second half of 2014, the Advanced Technology Centre in Torrance, California will move into the facility in Pontiac, bringing electric motor and power electronics engineering under the same roof. The Advanced Engineering lab in Wixom, Michigan, responsible for electric motor

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engineering development transfers in mid-2015, followed by the Propulsions Systems Research lab in Warren, Michigan by the end of the year.

for the latest news, visit evfleetworld.com

ACEA welcomes Europe-wide alternative fuel boost The European Automobile Manufacturers’ Association (ACEA) has welcomed European Commission proposals to expand the infrastructure for alternative fuel vehicles across the region, as part of its ‘clean fuel strategy’.

Under the proposals, Europe will gain an expanded network of electric vehicle charging points and hydrogen refuelling stations each with their own standardised connections. Extensions to the refuelling networks for biofuels, including Liquefied Natural Gas (LNG), Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) are also planned.

Ivan Hodac, ACEA secretary general, said: ‘The existence of a single common plug across the different member states will help kick start a stronger market uptake of electric vehicles, and gives clear direction for the future. This represents a real break-thorough in current discussions on the harmonisation of charging.’

BMW and Toyota join forces for future technology BMW Group and Toyota Motor Corporation have signed binding agreements confirming long-term collaboration in next generation vehicle technology, including hydrogen fuel cells and a high energy density lithium-air battery.

By 2020, the two companies aim to have co-developed a fuel cell stack, hydrogen tank, motor and battery for a production vehicle, based on shared technologies. BMW and Toyota will also jointly assess the supporting infrastructure to make hydrogen-powered vehicles viable, including creating codes and standards to speed up the deployment of refuelling stations.

This latest agreement also extends existing research into lithium-ion battery cells, which began last March. Phase two will involve joint development of a lithium-air battery for electrically driven vehicles, which offers a much greater energy density than existing lithium-ion units.

Finally, the two companies will work together on new lightweight materials for vehicle structures and bodies, due to be employed in a jointly developed mid-sized sports vehicle which will be shown before the end of 2013.

Lexus announces sub-100g/km IS hybrid Lexus has revealed its forthcoming IS compact executive car at the Detroit Auto Show, which will include the first IS hybrid offering CO2 emissions of less than 100g/km.

Heavily influenced by the LF-CC concept car shown at last year’s Paris Motor Show, the new IS features a longer wheelbase, more cabin space and improved dynamics according to Lexus. The range comprises a 2.5-litre petrol and hybrid, both available with the F Sport styling package.

Fuel economy figures for the IS 250h have not been announced as yet, but should be around 70mpg, while the 2.5-litre, four-cylinder petrol engine and electric motor offer a combined 217hp. This could also be shared with a low-carbon GS hybrid, which is rumoured to be under development.

in brief...

Mitsubishi confirms European recall of i-MiEV Mitsubishi is to recall almost 15,000 of its i-MiEV and MINICAB-MiEV electric vehicles globally due to a problem within the brake pump, which reduces the assistance available to the driver, according to the manufacturer. Figures have not been released, but Reuters has reported some 8,900 European vehicles will be affected, including sister models the Peugeot iOn and Citroën C-Zero.

Ford adds PlugShare data to MyFord Mobile Ford has partnered with PlugShare.com to provide its plug-in hybrid customers with real-time information on the 11,500 charging points in the United States through the MyFord Mobile smartphone app and web portal. The partnership will mean available units will be displayed alongside points of interest, helping drivers cover as much distance as possible using electricity.

Port of Barcelona begins three-month EV trial The Port of Barcelona has begun a three-month trial of two prototype SEAT electric vehicles, using the telematics data gathered to assess whether the technology could work as part of its corporate fleet. The project forms part of SEAT’s ongoing tests of an electric Altea and plug-in hybrid Leon ahead of a market launch in 2015.

New technology promises full charge in 16 minutes Las Vegas technology company Potential Difference says it has tested a new charging platform, which will dramatically reduce recharge times for existing lithium ion batteries without causing overheating. Full charges in 16 minutes, or 70% in 10 minutes, could be vital for boosting electric vehicle take-up, the company said, and it is seeking crowd-sourced funding to help further research.

IFW March 2013

11

environment

Fuelling the fleet Fuel cards can be a help, particularly for fleets operating across borders. Steve Banner finds out more.

Y

ou have probably never heard of FleetCor Technologies but there is every chance that the Norcross, Georgia, USA company is having a major impact on the way your leet is run no matter whereabouts on the planet you are based. A multi-milliondollar business with over 2,000 employees globally and active in Europe, Africa and Asia as well as in North and South America, it has gradually emerged as one of the biggest providers of fuel cards worldwide.

The past 18 months have seen it expand in Mexico and Brazil – it views the Latin

American market as having major potential – as well as in Russia. “Given that two-thirds of all commercial fuel is still purchased with cash and vouchers, Russia has great potential too,” says FleetCor chairman and CEO, Ron Clarke.

In Europe it acquired the British and Irish fuel card businesses of ReD (Retail Decisions) – back in 2009, the ninth European acquisition it had made since 2006, while 2011 saw it buy AllStar from Arval in the UK for some €225m. The move was given the UK Of ice of Fair Trading’s blessing the following year.

Fuel cards have proved to be a boon to fleets by providing an additional line of credit and allowing them to see where fuel was purchased, how much was paid for it, by whom, and which vehicle it went into.

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In 2011 in conjunction with technology group Logica it won a 10-year €300m contract to support Shell’s Commercial Fleet fuel cards programme in Europe and Asia having been awarded a new contract for commercial fleet card processing and programme management by BP Products North America little more than six months previously.

Aside from its ability to process huge numbers of daily transactions ef iciently – it services over 500,000 accounts – one reason for its global success is its willingness to

work with other providers of leet services.

Just over 12 months ago it collaborated with leet management services provider FleetMatics to launch the FleetMatics Fuel Card. It relies on a combination of GPS tracking and fuel card reports provided by FleetMatics and transaction services delivered by FleetCor to manage fuel usage by leet drivers more tightly and drive it down wherever possible.

“Our arrangement with FleetCor allows us to deliver lexible billing and payment options, personal assistance and training to optimise controls and savings, and strong, customisable purchasing controls that can help avoid any incidence of abuse or theft,” says FleetMatics CEO, Jim Travis.

It is also willing to respond quickly to local market conditions.

With the economic downturn continuing to bite throughout much of Europe and many businesses – even those with a reasonably respectable credit history – inding it dif icult to pass the credit checks mandated by fuel card companies, FleetCor has introduced a pay-asyou-go pre-pay card in the UK through its subsidiary The Fuelcard Company.

Diesel Advance allows operators to top their cards up in advance either through weekly direct debits from their bank account or online by using a credit or debit card. The process is a bit like topping up a pay-asyou-go mobile phone.

Its involvement in Mexico among other markets means that FleetCor is already well versed in the mechanics of pre-paid plastic.

There is little doubt that mainstream fuel cards have proved to be a boon to leets by providing an additional line of credit and allowing them to see where fuel was purchased, how much was paid for it, by whom, and which vehicle it went into.

Expenditure can be analysed by depot as well as by individual driver and it can be quickly seen how fuel-frugal particular employees and vehicles are.

Heavy-footed drivers may require some re-training while thirsty vehicles may be in need of a service: either that or a chat with the manufacturer may be in order.

Data gleaned from cards can be used to gauge what sort of an impact the leet is having on the environment, says German card provider UTA. “We’ve got a software tool called Drive & Save which allows you to see how much CO2 you are producing,” says a spokesman. “If you store your own fuel in bulk as well as purchase it from service stations, then the tool can import data from your bulk tanks to give you a comprehensive overall picture.”

Cards that can be used in several different European countries, and not just those that are EU members, have been available for many years.

Supported by BP, Aral, OMV, ENI and Statoil, the Routex card is accepted at over 18,000 service stations in 33 countries including more than 9,000 suitable for trucks and coaches. Shell’s euroShell card is welcome at 24,000 sites in 35 countries including Turkey, Russia, the Ukraine, and Belarus.

Esso Card can be proffered at 7,000 of the company’s own illing stations in nine European countries including 2,900 in Italy, 1,140 in Germany and 740 in France. Access to partner stations extends the network to 15,000 sites in 18 countries including locations in Austria, Denmark, Hungary, Poland and Spain.

Total’s Eurotra ic card is valid at 12,000 sites in 16 countries, almost all in Europe

but including 100 outlets in Morocco.

One key advantage of cards such as these is that they can often be used for the payment of road, tunnel and bridge tolls, roadside rescue and recovery, and emergency repairs as well as for the purchase of fuel, depending on the restrictions placed on them. They can also be deployed – again depending on the limitations imposed – to purchase tyres, batteries, spare parts and even to get a vehicle washed.

Card users may be able to negotiate a – typically modest – discount on the pump price they pay depending on the card, the network, the volumes of fuel they regularly purchase and the country they are purchasing it in. “Depending on the online system you are using then you can see on a daily basis the sort of discounts that are available,” says Steve Clarke, UK general manager of The Fuelcard People.

Owned by Republic of Ireland based oil and lique ied petroleum gas sales, marketing and distribution specialist DCC Energy, it offers a wide variety of fuel cards including plastic from Shell, BP and Esso.

Single, standardised invoices rather than an envelope full of grubby receipts should make the recovery of VAT, where applicable, easier from the different countries drivers travel through. Unfortunately the inancial trials and tribulations still being suffered by so many European governments sometimes make recouping monies owed problematic.

“Regulations mandate that VAT recovery should take no more than four months within the EU,” says a VAT recovery specialist from one well-known card company.

“The French are the quickest – they sometimes pay up in around four to six weeks – but the Italians I’m afraid are rather slow.

“A favourite ploy of some countries is to wait until just before the four-month deadline and then raise a whole host of queries, which the rules permit them to do,” she continues. “The Poles do that regularly – they ask all sorts of questions – and so do the Spanish.

“In fact I’m still dealing with VAT queries

IFW March 2013

13

¡

environment

Fuelling the fleet... ¡

raised by the Spanish authorities that relate to invoices that date back to 2010.”

Many queries may of course be perfectly legitimate, but are some countries deliberately using delaying tactics in order to aid their cash low? “Not every authority is adopting this approach but some clearly are,” she replies.

Businesses that do not want to wait what seems like forever to get their VAT back – in some cases it can take as long as 12 to 18 months says Shell – may be able to opt for a net invoicing VAT service which enables them to receive their VAT in as little as 14 days. It is not available for all countries however: euroShell card’s net invoicing arrangements for example exclude Greece, Hungary and Bulgaria.

Depending on the type of vehicle you run and the nature of your operation you may also be able to claim reimbursement of part of the excise duty paid on any diesel purchased. Shell points out that this is possible in Belgium, France, Italy, Slovenia and Spain.

The latest version of card provider DKV Euro Service’s eReporting package allows users to monitor the current status of their VAT reclaims online and examine them by country and by tax year. Invoices that did not originate from DKV can also be included.

“Bills and their corresponding refunds are always recorded together and iled electronically,” says Sven Mehringer, head of the company’s product management refund service. “As a result the annoyance of having to thumb through lever-arch iles is now a thing of the past.”

DKV eReporting also allows operators to see the tolls paid on German highways 2-3 days after they have been levied.

Active in 42 European countries, with over 36,600 illing stations accepting its plastic, and employing more than 650 people Europe-wide, the irm has recently introduced a so-called DKV Box. The onboard unit is designed to collect and bill the new Eco Taxe environmental levy due to be introduced by the French gov-

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internationalfleetworld.com

ernment from 20 July onwards. It is to be imposed on all goods vehicles grossing at above 3.5 tonnes used on routes nationales, sections of motorway that were previously toll-free and a number of other main roads.

DKV Box users receive a toll discount of up to 10% and the box can also be used in conjunction with France’s TIS PL scheme to collect other road tolls.

While musing on how much discount on their expenditure on fuel, tolls and other outgoings they may be able to obtain and how rapidly their VAT can be recouped, card users should also take into account how quickly they will need to pay the fuel card company for everything that has been bought.

which must be settled within 15 days,” he says.

Start-up companies who do not wish to use the sort of pre-paid card referred to above and do not have a trading record may be asked to put up a bond or some other form of guarantee before fuel card account facilities are extended to them, Clarke says.

“They are often eager to do so if they can because if they have a fuel card account it can make it easier for them to access other kinds of credit,” he says.

Fuel card security remains a perennial concern and card users should always ind out how quickly they can cancel a card – it can often be done online – should it be lost, stolen or mislaid and what their liabilities

SAVING FUEL Card users may be able to negotiate a discount on the pump price they pay

“Around 80% of the UK customers we deal with are billed weekly with settlement typically required in either seven or 14 days,” says Clarke.

Terms can vary however depending on the volume of business done by clients and their payment track record. “They might for instance receive two invoices a month, each of

are likely to be if it is used to buy fuel without their knowledge or consent. “One of the big problems is that so many fuel cards still rely solely on magnetic stripes rather than chip and PIN technology,” says Jakes de Kock, The Fuelcard Company’s marketing director.

The industry is moving towards the latter; but not all cards feature it as yet.

The new

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motor show review DETROIT SHOW

Rising sales lift the auto show mood John Kendall and Headlineauto report on the Detroit Auto Show.

It might be doom and gloom in Europe as far as car sales go but the mood at the NAIAS Detroit Show was much more buoyant with sales continuing to climb back towards pre-economic crash figures of 16 million a year.

Gas prices must be low at the moment because the new products on show seemed to be just that bit larger and more ‘American’ than we have seen in recent years which have seen the emergence of smaller, more European cars.

The show really kicked off fittingly with the unveiling of the latest version of an American icon, the seventh generation Chevrolet Corvette. Ford was keeping a pretty low profile with the Blue Oval brand leaving its traditional big press conference in the Joe Louis Arena next door until the second press day. Even then, the big news was all about commercial vehicles.

The European premium brands took the opportunity to unveil some important newcomers. BMW unwrapped the 4 Series coupe concept while Mercedes-Benz introduced the new E-class. Merc didn't show off its new CLA to the public, but it did do so behind closed doors to the media.

Around the stands there was plenty to keep visitors interested, although nothing that really stood out. The talk was generally about how the car companies are rebuilding their sales volumes and relief that the US didn't fall over the fiscal cliff. Eyes were warily cast across the Atlantic however, at the dark economic clouds hanging over Europe. With no sign of the market rebounding there, there are some tough decisions to be made back in Detroit.

16

> Acura MDX prototype

> BMW concept 4 Series

Honda’s premium North American brand gave a preview of the next generation seven-seat SUV at Detroit. The Canadian-built model has been a fixture in the Acura US line-up since 2001 and the new MDX will be the third generation to carry the nameplate. Acura is expected to extend its reach beyond North America in the short term.

Russia and Saudi Arabia are reckoned to be among the target markets.

“The ‘4’ represents a new focus for the 3 Series”, is BMW’s helpful description of the Detroit concept car. What this means is that the 4 Series will be to the 3 Series what the 6 Series has been to the 5 Series, in other words a coupe and convertible based on 3 Series running gear. And there’s an ‘M’ version to come too. It shares its 2,810mm wheelbase with the 3 Series saloon, but features wider front and rear tracks and arches and a 63mm lower roofline with pillarless doors. Expect engine options to be similar to the higher-end units in the 3 Series saloon.

BMW has yet to reveal what, if anything, will change before the car reaches production.

internationalfleetworld.com

> Cadillac ELR Based on the Converj Concept seen at Detroit in 2009, the ELR uses a more powerful version of the Chevrolet Volt range extender driveline but clothed in a luxury coupe body. Drive is by electric motor, but when the battery charge falls, a 1.4-litre petrol engine is automatically started to provide power direct to the electric motor, meaning range is not restricted in the same way as a battery electric car. According to Cadillac global vice president, Bob Ferguson, it will be a specialised model available in limited numbers. Features include Regen on Demand to offer temporary regenerative energy, triggered by steering wheel paddles, that will be stored in the car’s battery pack for later use. Hi spec features include LED lighting, programmable charging and Bose 10-channel audio. US production is expected late 2013 with sales due in early 2014 in North America before rolling out to global markets including China and Europe.

> Nissan Resonance

> Chevrolet Corvette Stingray It’s 60 years since Chevrolet took the wraps off the irst Harley Earl designed Chevrolet Corvette, so it was a itting moment for the company to re-introduce a new model, and reintroduce the name it was given 50 years ago – Stingray.

Muscle is still the name of the game and the 2014 Corvette Stingray will come with a 6.2-litre V8 delivering 450hp and 610Nm of torque. At the same time Chevrolet reckons it could be the most fuel ef icient Corvette, offering an EPAestimated 9.04l/100km. Chevrolet says only two parts are carried over from the previous Corvette and it gets a new chassis and powertrain. The original featured ibreglass construction and the latest model uses carbon ibre for the bonnet and removable roof panel, composite doors, bumpers and rear quarter panels, carbon-nano composite under body panels and an aluminium frame to help cut weight.

Nissan’s Resonance SUV concept, unveiled at the Detroit Show, will go into production in some way, but it certainly points to the brand’s future design direction, said Andy Palmer, executive vice president, product planning.

The concept is particularly directed at US customers where Nissan is on something of a roll selling more than one million vehicles last year, a new record.

Nissan’s global design teams in the US, UK and Japan came together under the direction of styling chief, Shiro Nakamura, to pen the Resonance which Palmer said is a strong indicator of the look of future Nissan SUVs. It uses a hybrid powertrain and the interior features all the latest high-tech gadgets to keep drivers and their passengers connected.

Palmer said: “The car has sweeping lines up from the grille to the bonnet and boomerang design headlamps. Add in the kick-up D pillar and floating roof and the concept has real presence and we think it will .... well, resonate.

“It is a bold design but it shows that we mean to maintain our leadership in cross-over vehicles. Elements of this design will go into future models as we press forward with Nissan’s mid-term plan.” That plan aims to introduce one new or refreshed product every six weeks up to 2016, he added.

> Chevrolet Silverado Public debut for the pick-up unveiled to the media before Christmas; all-new V6 and V8 engines and evolved rather than revolutionary styling should keep US buyers happy.

IFW March 2013

¡

17

motor show review DETROIT SHOW

¡

> VW CrossBlue > Dodge Dart Another anniversary and another milestone – it’s 50 years since Dodge unveiled the first Dart. The latest model to carry the name is also the first fruit of the Fiat owned Chrysler business. The Dart shares its architecture with the Alfa Romeo Giulietta. It’s also the first small Dodge to be produced since Neon production ended eight years ago. The Dart GT shown here gets a 2.4-litre MultiAir engine delivering 184hp, a six-speed manual gearbox or automatic transmission, 18-inch alloy wheels, sports suspension and Nappa leather upholstery among other items.

Production is scheduled for Q2.

> Ford Atlas concept It was a year of commercial vehicles for Ford with US show debuts for the 2-tonne Ford Transit and Ford Transit Connect, which will go on sale in North America later this year. But more in tune with the US buyer was the Atlas pickup concept, unveiled at Detroit.

Ford says it was shown to showcase the design, capability, fuel efficiency and smart technologies that will define future pickup trucks. That means an EcoBoost direct injection turbo petrol engine, which Ford claims will reduce fuel consumption by 20% and CO2 emissions by 15%. The engine gets automatic Stop/Start, active grille shutters to speed warm up, active wheel shutters to improve aerodynamics at motorway speeds and a drop down front air dam to improve air flow under the truck at higher speeds.

Volkswagen is toying with the idea of introducing a roadbiased seven-seat SUV purely for the American market – and had a show car hinting what it might be on display at Detroit.

The CrossBlue plug-in hybrid, if given the green light, would slot into the VW SUV range above the mid-sized Tiguan and the larger Touareg.

The Detroit concept is powered by a TDI diesel engine working with two rear-mounted electric motors and driving all four wheels through a twin-clutch automatic gearbox.

VW claims 2.1l/100 km economy on the US test cycle in hybrid mode, and up to 303hp and a maximum 700Nm of torque.

The show car has six individual seats, although if it is approved for production at VW's Chattanooga plant in Tennessee, the plan is to fit seven. Diesel and petrol powertrains would be offered alongside the hybrid.

“This is a car for a specific segment which only exists in the USA,” says Dr Ulrich Hackenberg, the head of VW product planning and engineering.

“In the US it is essential to have a seven-seater. Sevenseat SUVs are replacing minivans (MPVs in Europe). It is important for females to like a car that they take their children to soccer in and they don't like a minivan.”

Hackenberg says the CrossBlue would be “more of a road car with the possibility to go on bad surfaces” than the go-anywhere Touareg, and less of as premium model.

“There is a sweet spot that it could hit, and maybe it would be suitable for China – not now but in the future,” he added.

It is based on an extended version of the new MQB vehicle architecture, which underpins the Mk VII Golf and is destined for a whole range of VWs from a Polo to a Passat.

That means the plug-in hybrid drivetrain could easily be adopted for the next-generation Tiguan SUV in other markets, says Hackenberg.

> Honda Urban SUV concept Honda’s second concept gave a global unveiling for its Urban SUV concept, hinting at a forthcoming small SUV which could ill the gap left when the HR-V was withdrawn in 2006. A production version will launch in Japan in 2013, followed by the US in 2014 and Europe soon afterwards. Like the Jazz/Fit, it will be based on Honda’s new Global Compact Series platform. Details of powertrain are yet to come, but it will get those lexible Honda Magic Seats from the Jazz/Fit. Production is scheduled for Honda’s Celaya Mexico plant, the company’s newest in North America.

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> Hyundai HCD-14 concept Could this be the face of a future Hyundai Genesis? It seems quite likely.

Sales of the Genesis and Equus rose 24% outside Korea in 2012 and the Genesis has been well received in North America where it was 2009 Car of the Year and notched up a 9% retail market share – greater than Hyundai’s 5% overall retail share there. “This success paves the way for a new generation of rear-wheel drive premium products”, said John Krafcik, president and CEO, Hyundai Motor America. “HCD-14 Genesis gives a hint of the design direction we’ll be taking, and an indication of the focus we’re placing on driving dynamics and technology.”

> Infiniti Q50 Infiniti’s 3 Series rival, the G Sedan, gets a new look and is the first car for the company’s new model naming system.

> Lexus IS saloon The third generation of the BMW 3 Series rival is inspired by the LF-CC concept first shown at the Paris show last September. The IS250 will get 204hp V6 power while the hybrid IS300h will be powered by a four-cylinder 2.5-litre Atkinson cycle engine, with electric motor, offering a combined output of 217hp. Lexus expects to deliver sub 100g/km CO 2 emissions, with fuel consumption below 3.6l/100km. Features include a pop-up bonnet design to reduce pedestrian injuries.

> Lincoln MKC This small SUV, designed to attract younger buyers is based on the Ford Escape/Kuga as Ford’s global model policy gathers pace.

> Maserati Quattroporte There’s an all-new chassis and a lighter body for this bigger, sixth generation model making its debut at Detroit. Although lighter, it’s larger than the car it replaces and, Maserati says, more luxurious. There’s a choice of twin turbocharged, direct-injection 3.0-litre V6 and 3.8-litre V8 power, both built at the Ferrari Maranello plant to Maserati designs. A ZF 8-speed automatic is the standard transmission.

> Tesla Model X At Detroit, Tesla showed a design concept based on the platform of the Model S. It is a stylish fusion of crossover and MPV called the Model X, with an additional electric motor between the front wheels to give it all-wheel drive capability.

Its most unusual feature is the ‘falcon wing’ rear side doors, which raise vertically before swinging out so they can be opened in confined spaces.

Tesla’s next production car will be a small model costing around $30,000 (€22,430) in the US. It is expected to be on sale in three to four years.

IFW March 2013

19

technology

How to save a life...

There’s huge potential to improve safety with Driver Assistance Systems, reckons Cordis.

S

mart automotive technologies that help year while the euroFOT team gathered data drivers avoid collisions, navigate and from in-vehicle sensors, cameras and driver improve fuel ef iciency should make questionnaires.

Europe’s roads safer, ease congestion and Eight IVS technologies were tested, reduce pollution. But just how bene icial are including ‘Adaptive cruise control’ (ACC), they? Potentially very, according to vehicle which uses radar to maintain a pre-set dismanufacturers, researchers, automotive tance from the vehicle in front, and collision suppliers and other stakeholders who warning systems that alert drivers to potenanswered that question in a landmark EUtial front-end collisions. Curve-speed warnfunded project. ing systems, blind-spot detectors, fuel More than 30,000 people die in traf ic ef iciency monitors and navigation systems accidents every year in Europe – an average were also tested. of 85 people every day – and more than a million are RAISING AWARENESS injured. Research shows Volvo’s Pedestrian Detection System human error is a factor in aims to reduce the ‘human error’ factor.

90% of accidents.

EU-wide, the road death toll has declined signi icantly in recent years thanks to a combination of increasing driver awareness, tougher laws and technological developments – from air bags to electronic stability control (ESC) systems – that have made drivers and passengers safer.

Now a range of new smart technologies are starting to be itted to cars.

If used widely, these could reduce the number of accidents even fur“When a new technology is developed it ther, and in the process save on fuel, cut is usually tested individually, but a ield emissions and reduce traf ic jams. operational trial using real drivers in real That is the overall conclusion of the vehicles in real traf ic conditions allows us team behind the ‘European field-operato assess how these systems perform in the tional test on active-safety functions in real world, and how ordinary drivers intervehicles’ (euroFOT) project, which carried act with them,” explains Aria Etemad, a senout the first ever Europe-wide field operaior research coordinator at Ford Research & tional test to assess the benefits of ‘IntelliAdvanced Engineering Europe in Germany. gent vehicle systems’ (IVS) on traffic safety and efficiency.

Fewer accidents, less congestion, With the support of almost €14 million in better fuel efficiency funding from the European Commission, a The team found, for example, that cars thousand cars and trucks equipped with equipped with both ACC and ‘Forward-coladvanced systems travelled 35 million kilolision warning’ (FCW) systems could have a metres on Europe’s roads for more than a positive impact of up to 5.7% on the num-

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ber of accidents on motorways that result in injury or death.

Fewer accidents, in turn, the euroFOT researchers calculated, should lead to less motorway congestion, reducing the total amount of time drivers spend sitting in traf ic jams across the EU by more than three million hours. And, it turns out, the use of ACC and FCW systems result in more ef icient driving, reducing fuel consumption by an average of 3% – as much as 7% in some vehicles – without taking into account the positive impact on road congestion.

“The data shows that there are widespread social and economic bene its from IVS technologies, in addition to avoiding potential accidents,” Mr Etemad, the euroFOT coordinator, says. “We also noted that the use of these systems has a positive impact on drivers’ experiences, they felt safer, more supported and more comfortable.”

Surveys of drivers, conducted before, during, and after they took part in the trials, showed that more than 70% believed systems such as ACC, FCW and other tested technologies such as speed regulation systems, curve-speed warning and blind-spot detectors helped reduce critical situations and made them safer. Navigation systems, the researchers found, also had a positive impact on driver behaviour, reducing sudden lane changes and harsh braking, for example.

“There is a lot of interesting information that can be gleaned from this research, and there is a lot of data that still needs to be analysed. In total we generated more than 100 terabytes of data and will soon make more than 1,500 pages of our reports publicly available,” the coordinator says.

uroFOT > www.eurofot-ip.eu is an integrated project partly funded by the European Commission under the EU’s Seventh Framework Programme (FP7) for research and development. Partners include vehicle manufacturers, automotive suppliers, universities, research centres and others.

Cordis > www.cordis.europa.eu/

Raising awareness of the benefits of IVS On the one hand, the 28 euroFOT partners want to increase awareness about the bene its of IVS technologies. Mr Etemad notes, for example, that many drivers who participated in the project had little idea about what different systems do before they began the trials.

On the other hand, automotive and research partners plan to use the data to further improve IVS systems in terms of both functionality and performance and humanmachine interaction. They have already proposed a follow-up project to carry out a more in-depth analysis of the data.

In the future, Mr Etemad envisions integrated IVS being developed, incorporating multiple technologies that can more easily

and widely be itted to vehicles than current stand-alone systems. In addition, further analysis of the data could also lead to entirely new systems, for example, as developers gain a clearer idea of the kind of support drivers need to improve their safety, comfort and driving habits.

Meanwhile, other stakeholders also plan to make use of the research. Project partner Allianz Insurance, for example, is considering using the results of the euroFOT study for its insurance products.

“Allianz Insurance is now in a better position to create new insurance products which take into account the accident- and claim-reduction potential of driver-assistance systems,” says Johann Gwehenberger, head of Accident

Research, AZT Automotive, Allianz Centre for Technology, Germany. “We aim to extend lossprevention activities by, for example, motivating drivers and leet owners to buy and use promising driver-assistance systems.”

In the long run, Mr Etemad believes that increasing awareness of the bene its of IVS will lead to increasing demand. Ultimately, that will lead to more widespread deployment, safer roads, fewer accidents and a range of other social and economic bene its – ful illing key goals of the EU’s 2011-2020 road-safety action plan that aims to halve the number of road deaths within a decade. euroFOT received research funding under the European Union’s Seventh Framework Programme (FP7).

IFW March 2013

21

fleet strategy

Forecasted residuals fall across Europe Forecasted RVs keep dropping across Europe, with the struggling economies among the worst affected, reports Experteye.

Forecasted residual values continue to fall across Europe with Portugal seeing the most dramatic drop, with a -10% reduction in the last twelve months.

The igures from the Experteye European Leasing index show a downturn in all of the 6 nations surveyed, with Spain reporting a -3.2% decline, Italy -2%, the UK -1.9%, Germany -0.6% and France -0.1%.

With little sign of improvement in the latest quarter, only the UK is showing a slight upward trend with a +0.8% improvement in its forecasts since November 2012. All other countries, however, remain downbeat with Portugal reporting a -4.7% quarterly fall, Spain -1.3%, France -0.9%, Germany -0.8% and Italy -0.2%.

Yet amidst this pessimism in future used car values, fleet customers appear not to be suffering. In all nations, rentals in the last 12 months have either fallen or remained static. French fleet operators have enjoyed a -2.7% reduction in lease rates, the UK -1.3%, Germany -1.2%, Italy -1.0% and Spain -0.1%. There has been no change to average rental rates in Portugal.

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

With continued concerns regarding the economy, there have also been some strong upward shifts in budgeted servicing, maintenance and repair costs, although not all countries have increased their prices during the last year. At one extreme Spain has brought its SMR costs down by -6.9%, whereas at the other end of the scale Portugal’s have risen by +8.7%.

Market summaries – 3 and 12 months to January 2013

FRANCE: French fleet operators have enjoyed the largest reduction in their average lease rates across all nations surveyed, with a -2.7% fall in the last 12 months, although they have seen prices creep back up in the last quarter with a +0.7% rise. SMR budgets are on the up with a +5.7% hike in the last 3 months, and +4.9% for the year. Since February 2012, forecasted residual values have remained most stable in France compared to other nations, with

a slight -0.1% fall. Since November 2012 this has shifted by -0.9%.

GERMANY: German fleet operators have seen rental costs creep back up by +0.4% after a year when they fell by -1.2%. Other forecasts and budgets have remained relatively stable with a -0.6% shift in anticipated residual values since February 2012 and 0.8% from November 2012. Servicing, maintenance and repair budgets have hardly moved in the last quarter (-0.1%) after a year that saw a -0.7% reduction.

ITALY: The last 12 months has seen Italian SMR budgets become more expensive with a +4.3% increase since February 2012. This has been tempered in the last 3 months with a +1.4% rise. Annual residual values are down by -2.0% and -0.2% for the quarter. Rental rates have remained reasonably stable for Italian leet customers with a -1.0% fall during the year and a +0.4% rise during the past 3 months.

PORTUGAL: Sizeable movements in forecasted residual values and budgeted SMR costs continue to feature in Portugal. During the last 12 months there has been a -10% downturn in RVs, and a 4.7% drop for the quarter. SMR budgets have risen by +8.7% since February 2012 and +10.6% since November 2012. Yet there appears to be little impact on Portuguese leet operators who have seen their rental rates unchanged (0%) in the last 12 months. In the last quarter they have enjoyed the biggest fall in prices of all nations surveyed with a -2.5% monthly saving.

SPAIN: Spain’s budgeted SMR costs are down by -6.9% for the year, the largest reduction of all nations surveyed. This continues with a -2.2% reduction in the last quarter. Residual value forecasts have dropped by -3.2% for the year and -1.3% for the quarter. Yet rental costs remain stable with a small -0.1% drop since February 2012 and -0.6% since November 2012.

UK: The UK is the only nation in the Experteye survey to show an improvement to its RV forecasts in the last quarter, with a +0.8% rise.

However, residual values have come down during the year by -1.9%.

Whilst SMR budgets have increased by +2.5% since February 2012, they have come down in the last quarter by -0.1%. Rental rates remain static (0%) during the last quarter and -1.3% down for the year.

CHANGES IN RV FORECASTS, SMR COST FORECASTS AND LEASE RENTALS Forecast Residual Values

Forecast Service, Maintenance and Repair Costs

Current Rental Rates

3-month change 12-month change 3-month change 12-month change 3-month change 12-month change France Germany Italy Portugal Spain UK

-0.9% -0.8% -0.2% -4.7% -1.3% +0.8%

-0.1% -0.6% -2.0% -10.0% -3.2% -1.9%

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

• Twelve-month comparisons show change since February 2012.

• Three-month comparisons show change since November 2012.

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+5.7% -0.1% +1.4% +10.6% -2.2% -0.1%

+4.9% -0.7% +4.3% +8.7% -6.9% +2.5%

+0.7% +0.4% +0.4% -2.5% -0.6% +0.0%

-2.7% -1.2% -1.0% +0.0% -0.1% -1.3%

• 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.

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

management

Hertz looks to the future Tim Kendall spoke to Michel Taride to get the lowdown on one of the rental industry’s oldest names. lot can happen in 94 years. In 1918 Hertz opened its doors in Chicago with a dozen of Henry’s inest Model T Fords, and since then the black and yellow logo has grown from a one-site rental out it into one of the industry’s most recognisable global brands. But not without going through a few changes along the way.

“I started off in the South of France and I’ve now been a Hertz man for 33 years. But in the last ive or six years, the company has changed almost beyond recognition,” reckons Michel Taride, executive vice president and president, Hertz International.

Most long-established industry players will have changed in the last few years – the

A

relentlessly tough conditions ushered in by 2008’s economic crisis have seen to that. But despite the headwinds, Hertz has the bit between its corporate teeth. The long, drawn out acquisition of Dollar Thrifty Group, which took ive years to come to fruition and saw the company divest itself of the Advantage rental brand to squeeze the deal past antitrust regulators, is testament to the determination at the top. “Hertz is on a transformation journey,” enthuses Taride.

HISTORY Starting with that irst Chicago outlet, Hertz consolidated its position in the rental market a decade and a half later, opening a

rental location at Chicago’s Midway airport in 1932. A move across the pond beckoned in 1950, which saw a European assault kick off with a 50-vehicle outlet in Paris. 63 years later the Hertz, Dollar and Thrifty brands span over 10,700 locations across North America, Europe, Latin America, Asia, Australia, Africa, the Middle East and New Zealand. But France remains the company’s largest market outside its USA home market.

FLEET SIZE The combined Hertz and Dollar Thrifty leet numbers 752,200 vehicles – 638,400 of these under the Hertz banner, and 113,800 under the Dollar and Thrifty brands. This

In the last five or six years, the company has changed almost beyond recognition.

IFW March 2013

25

¡

management

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excludes a leet of around 165,000 vehicles operated by Donlen – a once family-owned leet management and leasing business, which Hertz acquired in 2011.

Headquartered in the US, Donlen operates across Canada, Mexico and Europe providing Hertz with a very pro itable avenue back into corporate leet management services, as well as access to a range of proprietary technology. That includes the Donlen Fleet MasterCard, linked to Donlen’s ‘PUSH’ (Prevent Unnecessary Spending and Hazards) technology which can send alerts if a vehicle’s MPG performance is below expectations, a daily spending limit is breached or if the driver enters nonsequential odometer readings.

MARKET POSITION That transformation Taride speaks of is across several fronts. One of which is market share – the Dollar Thrifty acquisition puts the combined Hertz operation ahead of the recently enlarged Avis Budget Group, with a 23.9% share of the €22.5 billion ($30.5bn US) rental market, according to igures from industry researcher IBISWorld. Both groups are humbled by the leviathan Enterprise stable of brands, which enjoy a 38% slice of the US market and signi icant global presence.

But crucially, swallowing up the Dollar and Thrifty brands has provided Hertz with an established path into the mid and lowertier sectors of the rental market. “Now we are no longer trying to be all things to all people – we can tap into the more pricesensitive end of the market without diluting the Hertz brand,” explains Taride. Not to mention the fact that having a lower tier brand in the portfolio provides a good excuse to re-position the Hertz brand onto a more premium footing, he admits.

A value offering will help Hertz ind more customers in the embattled southern European and Mediterranean markets. “Europe is challenging at the moment and Hertz has always been a more premium brand. Dollar Thrifty helps us in places like Spain and Portugal where prices have to be highly competitive,” reckons Taride.

Synergies from combining the two businesses are reckoned to be in the order of €118 million ($160m US) of annual cost savings through shared assets and economies of scale. To put it mildly, the

26

internationalfleetworld.com

company has also been on something of an ef iciency drive since 2007, somehow shaving an estimated €1.55bn ($2.1bn US) off its costs in the last ive years.

‘ASSET LIGHT’ As Taride explains, moving towards an ‘asset light’ business model, partly as a result of adopting the franchising route has been key to leaving more in the company coffers. “Car rental is an asset intensive business, so in many markets we’ll try to partner with established operators to accelerate our growth – more than 35% of our revenues come from the franchised route.”

Hertz’s not insubstantial revenues

comprise €7.45bn ($10.1bn US) from corporate (centrally owned) outlets and a further €3.54bn ($4.8bn US) from franchisee-owned locations – which number 4,500 worldwide.

CAR SHARING This is an age where paring things back is on-trend, so being asset light is also a real draw for the customer. That’s why the carsharing phenomenon is now irmly on the radar of many leet managers who are under pressure to reduce costs.

The Hertz car-sharing brand, ‘Hertz On Demand’ provides 230,000 members in 800 locations with immediate keyless access to

rental cars by the hour or by the day, accessed for an hourly rate which includes fuel, insurance and 24-hour back-up from a member’s contact centre. It’s gaining traction in the corporate sector with high pro ile names such as Heathrow Airport, PwC and Marriott International amongst the customers who have generated signi icant savings and reduced their leet size as a result of using the service.

Hertz On Demand also operates the most energy ef icient models possible, including electric vehicles – of which Hertz have been early adopters in the rental market. “It’s still a niche market, but we really believe this is the start of a new era,” explains Taride.

Hertz has an EV programme spanning

more than 10 cities in three continents, offering an eclectic electric selection – from the Nissan LEAF and Opel Ampera through to the ultra-niche Tesla. And easy rental access to EVs is one of the keys to demystifying the electric car, reckons Taride. The sustainability angle which companies love to plug in corporate responsibility reports is another attraction – but Taride acknowledges it won’t happen overnight.

“Lots of corporations are interested in getting EVs on board as part of a sustainability strategy. There’s good progress on charging standardisation, but it takes time – and renting an EV is one of the best trials people can have.”

ELECTRIC DRIVE Hertz is pioneering an EV programme spanning more than 10 cities in three continents, from smart to Tesla.

REMARKETING There’s no getting away from the fact EVs are costly in terms of a total ownership proposition, but Hertz is balancing that out by increasing the returns from its remarketing activities, something Taride has had responsibility for since 2010. The Hertz ‘Rent2Buy’ program, which started three years ago in the US, has been a success says Taride: “You test drive the car for three days in the US – or 10 days in the UK and if you like it, you buy it afterwards, with the rental costs refunded.”

“Rent2Buy has worked very well in the US so we’ve started it in France, the UK, Italy and Spain, with more countries to follow”.

There’s also an online platform for dealers and the motor trade, but auctions make up less than 5% of total sales. Outside of these channels, buy-back schemes are in place on around 20% of the leet in the US and 65% of the European leet.

As with most operators, there are favoured brands on the leet with Hertz’s biggest supplier being General Motors. 47% of the US leet and 21% internationally wear a GM Group badge. Toyota, Ford and Nissan bring up the rear with strong representation on the Hertz rental leet in the US and overseas.

THE FUTURE Hertz is setting out its stall for emerging market growth: it’s banking on international travel doubling over the next decade, led by the expanding middle-class market. “We are focusing a lot on growth in emerging markets – moving into Brazil, India and China,” admits Taride. “We’ll also focus on higher return investments like car-sharing to bring growth,” he continues.

IFW March 2013

27

S HE PRESTIGIOU T T A , R A D N E L A IN THE FLEET C T N E V RD TO MISS IT ?

E O T F S F E A G U O Y N THE BIG A C MOTORSPORT. H IS IT R B F O E HOM

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FOR the second year running the Fleet World Fleet Show will take place at the impressive new Silverstone Wing and on the track at the race circuit, providing fleet decision-makers with an incredible opportunity to test the latest cars on the famous track, and to meet suppliers and listen to expert seminars.

Wednesday 24th April 2013

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‘The track driving sessions will allow visitors to experience what is available on the market today. The seminars will give them an idea of what they might be driving tomorrow.’

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fleet focus ITALY

RM LEASE

TOP LONG-TE

P FIAT GRANDE

DECLINE AND FALL

EST BRAND SECOND BIGG VOLKSWAGEN

The decline in the Italian vehicle market looks like it’s not over yet.

Sales could be heading for a 50-year low, reports John Kendall.

MADE IN ITALY

Fiat Panda has been the most popular model in the business sector for some years.

32

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UNTO

News that PSA Peugeot Citroën was writing down its assets to the tune of €4.1bn in early February can hardly have made comfortable reading among other car makers hit hard by the continuing European financial crisis. In fact, the news came a few days after Volkswagen – arguably one of the financially strongest European manufacturers – stated that it would be writing down the value of its assets by some €3.9bn.

The news would hardly have made comfortable reading in Turin. Car registrations in Italy suffered one of the largest falls in Europe last year among the larger EU nations. Car registrations fell by 19.9% in 2012 from 1,749,739 in 2011 to 1,402,089, according to data from ACEA, the European Automobile Manufacturers’ Association.

That figure is almost one million fewer registrations than in 2007 (2,493,105).

There was no consolation in the figures for commercial vehicles either. Overall registrations were down by some 31.7% compared with 2011. Light CV registrations were down 32% from 170,672 in 2011 to

116,112. Heavy truck registrations over 3,500kg gross weight were down by 29.4% compared with 2011 from 19,474 to 13,741. A rapid reversal of such decline must be seen as extremely unlikely.

Not surprisingly, the Fiat/Chrysler group was the strongest performer in the 2012 Italian car market. According to data from the Italian Automobile Industry Association, ANFIA, the Fiat/Chrysler Group took a 29.6% share in 2012, worth some 415,018 registrations in 2012. This was more than twice the market share of second placed VW with 13.2% (185,076) and PSA Peugeot Citroën in third place with 9.9% (138,806).

Commenting on the 2012 car market data, Andrea Badolati, managing director of ALD Automotive Italy (left), told IFW, “This market used to work around 2.3-2.4 million units. This year, it could land around 1.2 or 1.3 million units, so we are talking about a reduction of around 50%. To give you an idea, 1.2 million was the volume in Italy in 1960.”

Looking at the individual brands in

2012, data from UNRAE (Unione Nazionale Rappresentanti Autoveicoli Esteri), which represents distributors and dealers in Italy supplied by Alphabet, suggests that Fiat had a 21% share of the market with 294,454 registrations, VW an 8.1% share and 114,799 registrations, Ford a 7.1% market share and 100,528 registrations, Opel a 5.5% share and 78,487 registrations, with Lancia making up the top 5 with 5.06% and 71,420 registrations.

Of this total, UNRAE data suggests that business cars made up some 36.22% of the new cars sold in 2012, a total of 510,622. Some 49.3% of this total is accounted for by rental business, representing 17.84% of the total new car market. Since the new car market in Italy has contracted in 2012, it is no surprise that the business car market has also reduced – by 13.8% compared with 2011.

Commenting on the trends in the business car sector, Andrea Cardinali, chairman and managing director of Alphabet Italy told IFW, “A general analysis of the car market in 2012 illustrates a general fall in purchases of cars both by private

IFW March 2013

33

¡

fleet focus ITALY

Decline and fall...

THE CAR MARKET: PRIVATE, BUSINESS AND RENTAL FLEETS JANUARY-DECEMBER 2012

REGISTRATIONS IN 2012 BY BRAND Brand

2012

Fiat

294,454

Volkswagen

114,799

Ford

100,528

Opel

78,487

Lancia

71,420

Citroën

2011

2011/2012 Var.

63.79%

1,167,001

-22.88%

510,622

36.22%

592,386

-13.80%

Rental

251,622

17.84%

279,183

-9.87%

69,666

Businesses/leasing

259,265

18.38%

313,203

-17.22%

Peugeot

69,510

Total

1,410,824

100 %

1,759,387

-0.198%

Renault

59,635

Toyota

55,680

Audi

51,068

Nissan

50,440

Hyundai

43,400

BMW

42,467

Alfa Romeo

42,195

Mercedes-Benz

41,513

Other

225,548

Total

1,410,810

Source: UNRAE

¡

individuals (-22.8%) and companies under lease finance (-17.22%). Howeveduring 2012 the market share of business fleets went up slightly over the share of private individuals. Within this segment, 49% of registrations were for rental use and 51% were for companies. The increasing trend of the preference towards rental instead of company leasing has risen from 10.9% to 12.27%.”

According to JATO Dynamics, the most popular model in the business sector has been the Fiat Panda for some years, although the larger Grande Punto saw a steep increase in sales in the sector last

34

internationalfleetworld.com

Registrations

2012

Private

899,937

Business fleets (*)

Market share 2012

of which

Source: UNRAE, ANIASA Ministry of Transport analysis

year, whether this was for rental business, or attributable to large orders is not clear.

But an analysis of the long-term lease sector, provided by Alphabet, gives some indication. The Grande Punto took a 9.9% share of long-term lease car sales, 44% of the 2012 total for the model. One factor may have been the availability of new engines, as Andrea Cardinali of Alphabet suggests, “Even the demand for hybrids (with natural gas and petrol) and the Fiat TwinAir (a small petrol engine which weighs and emits less) has increased, and is in the top 10 of the most wanted lease cars.” The TwinAir engine is available in both the Grande Punto and Panda, among other Fiat Group models.

Andrea Badolati at ALD suggests that the premium car sector is also strong, borne out by the third and fourth placing for the Audi A4 and BMW 3 Series. He suggests that the A3, A4, A5 and A6 all attract a strong following, as does BMW with Mercedes-Benz a little behind its German rivals.

We asked what kinds of cars tend to be favoured by business users. For Alphabet, it is summed up in three words – savings, eco-sustainability and quality. The economic situation has been the factor behind the changes. Cost control has driven demand for smaller engines and lower fuel consumption.

“Size, it is true, goes down, but comfort

(*) Rental/Business/Leasing

and optional extras increase in many cases; from a flagship to a more compact car is less traumatic than you might imagine”, says Andrea Cardinali of Alphabet, “And here is where the non-premium manufacturers find themselves unexpectedly at an advantage, while the premium brands must remodel their products and services to compete with the offer of the smaller makers.

“The downsizing phenomenon also involves migration from premium brand manufacturers to lower categories. In this scenario BMW does not however seem to be suffering, the 3 Series actually represents half of the BMW cars in Italian fleets, it is in 4th place in the classification of long-term leases.”

Andrea Badolati at ALD says there has been a downsizing and downgrading for the business user. “What was usually around 3-litres is now around 1.8-litres.”

The trigger for the downsizing has been the continuing economic crisis in Italy.

“The poor economic situation is the primary factor in putting the brakes on car sales”, says Andrea Cardinali of Alphabet, “However, in 2012 other elements also had a negative influence: increases in fuel prices, highway tolls, insurance, difficulty in getting access to credit, the barrage of taxes and the strong fall in the ISTAT (Italian National Statistics) business

Non-premium manufacturers find themselves unexpectedly at an advantage, while premium brands must remodel their products to compete with smaller makers.

TOP 10 LONG-TERM LEASE CARS

BEST SELLERS, BUSINESS SECTOR

Puchases in 12 months

Share

12,332

9.91%

Fiat Panda

7,724

6.21%

20,352

Audi A4

6,813

5.47%

9,977

12,907

BMW 3 Series

6,183

4.97%

4,131

12,270

11,965

Lancia Delta

6,142

4.93%

Smart Fortwo

13,981

15,417

11,145

Volkswagen Passat

4,741

3.81%

Volkswagen Golf

11,763

11,085

9,873

Fiat Bravo

4,399

3.53%

Fiat Bravo

12,823

15,078

8,860

Ford Focus

4,240

3.41%

Ford Focus

9,220

9,355

8,463

Alfra Romeo 159

4,225

3.39%

Opel Astra

3,883

10,334

8,021

Fiat Croma

3,990

3.21%

Model

2010

2011

2012

Model

Fiat Panda

43,981

46,757

55,921

Fiat Grande Punto

8,252

8,545

28,043

21,862

27,087

Lancia Ypsilon

8,300

Alfa Romeo Giulietta

Fiat Grande Punto Fiat 500

Source: Aniasa analysis of Unrae data

and consumer confidence indicators.”

Mr Cardinali (left) believes that it is time for a less punitive economic policy for businesses and users. With a general election looming at the time of writing, it is not clear if his wishes will be granted.

So how will the business car market in Italy develop in the next few years?

“It will be difficult to maintain the levels of the 2012 market in the absence of fiscal measures which provide more reasonable levels of deductibility or at least better aligned with the other European countries, perhaps even offering incentives for businesses which decide to renew their car fleet”, says Mr Cardinali. “The coming years will prove to be useful for all instruments and solutions which permit efficiency and optimisation of certain processes towards more economic, rational and responsible mobility, in line with the primary needs of businesses for

timely monitoring of all cost items and for mastering all management indicators (mileage trend, length of contract, and global spending, emissions) of the fleet in view of Total Cost of Mobility. The challenges to be tackled in terms of mobility are growing, we are seeking successful solutions adapted to the future needs

of businesses and modern society.”

Mr Cardinali believes that developments such as car sharing, which Alphabet has introduced through its AlphaCity scheme based on long-term leasing, will gain in popularity and spread from Germany, France and the UK, where the scheme is already in operation.

The Fiat 500: Italy’s third best seller in the business sector in 2012

IFW March 2013

35

industry analysis

Partnering for profits To return to profitability, PSA Group needs to consider industry partnerships and the expansion of their global footprint, comments programme manager, Martyn Briggs, from Frost & Sullivan.

The European Auto Industry in 2012 declined again for the fifth consecutive year, with sales down by more than 8%. Every mass market OEM has been struggling in the region, to the extent that the French government has offered guaranteed state loans to PSA Peugeot Citroën, which is under review by the European Commission.

Regional losses have been reported at many OEMs, including Fiat, Ford, GM and PSA Peugeot Citroën. The difference between the aforementioned OEMs and PSA Peugeot Citroën, however, is the exposure to the region, with the majority of PSA cars (some 62% in 2012) sold in Europe on the one hand, and limited international partnerships/alliances on the other, resulting in an overall operating loss to be reported by PSA in 2012.

PSA Group therefore, needs to consider many things, in order to make a return to profitability, such as: • Cutting capacity and costs: closing plants and making redundancies. The company has announced a plant closure at Aulnay near Paris and

36

internationalfleetworld.com

other measures that will amount to 8,000 job losses.

• Expand the global footprint: selling more cars in emerging markets. The plan is to increase sales outside Europe from 38% of group sales in 2012 to at least 50% in 2015; the primary focus is Latin America, Russia, and China. The partnership with GM may allow further inroads to Russia/Latin America, where it is rumoured joint developments will take place, and they have their own growth trajectory plan to increase market share in China to 5%;

• Industry partnerships: leveraging partners in strategic growth markets, but also to generate cost savings in loss making Europe. The alliance announced with GM last year is starting to become clearer, and they are due to share three platforms in Europe (including the new Zafira/3008), and potentially expand the collaboration to international product development and purchasing. This alliance is set to result in a €1.5bn annual savings for GM/PSA combined; • Shift to more profitable segments: PSA compete increasingly in lower (A and B) segments which are less profitable and more cost competitive.

There is a focus to sell proportionately more cars in higher (C and D) segments, as well as crossovers such as the 2008 and 3008, and sports models such as the RCZ to increase profitability, as well as to attack new market segments to take market share.

Martyn Briggs is a London-based programme manager at Frost & Sullivan’s Automotive & Transportation Practice.

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fleet profile MAZDA

State of independence Interesting times for Mazda. The Japanese automaker is once again independent, after several years under the effective control of Ford. And Mazda’s new-found independence is giving it the confidence to reassert its presence in the global market with some distinctive and original new cars.

azda fell under effective control of Ford in 1996. The two companies had been running joint ventures in the US and Thailand, and the increased alliance seemed logical at a time when Mazda was struggling and Ford was building a global portfolio of brands.

But the arrival of Alan Mulally as Ford president saw the US automaker’s strategy shift toward ‘One Ford’, resulting in the disposal of all other brands bar Lincoln. The Mazda stake was reduced initially in 2008 from 33.4%, which gave Ford management control under Japanese law, to just 11%. A further disposal took place in November 2010, reducing Ford’s stake to just 3.5%.

All US senior management in luence has now departed from Mazda, and while some JV elements remain in place, new Mazda vehicles are now 100% Mazda, starting with the CX-5 crossover and the new Mazda6, just launched in Europe, which have become a major element of Mazda’s leet offering.

M

38

internationalfleetworld.com

Mazda Global Production, 2012 Vehicle type Passenger Cars Commercial Vehicles Total

Volume 1,097,661 91,622 1,189,283

% Change YOY -0.5 +47.9 +2.0

Source: Mazda

Mazda is best placed to benefit from the weakening Yen, as it is more reliant on exports than Nissan, Toyota or Honda

1.25 MILLION VEHICLES IN 2012 Mazda sold 1.25 million vehicles worldwide in 2012, up 3.5% on the previous year. This represents a strong performance against a continued depressed global auto market. In particular, Mazda performed well in the US market with full-year sales of 277,046 vehicles in 2012, exceeding 2011 by 10.6%, and representing the company's best full calendar year of sales since 2007.

Mazda performed well in Japan during 2012, with full-year domestic sales volume up 14.9% compared with the same period in 2011, due to increased sales of both cars and commercial vehicles.

Mazda Japanese domestic car sales, 2012 Vehicle type Passenger Cars LCVs Total

Volume % Change YOY 192,427 +16.3 25,932 +5.9 218,359 +14.9

Source: Mazda

Indeed, analysts believe that of the Japanese car makers, Mazda is best placed to bene it from the weakening Yen, as it is more reliant on exports than Nissan, Toyota or Honda, which have more local assembly in major markets.

Its higher domestic production and export ratios puts Mazda in a strong position to take advantage of a Yen that has lost around 20% of its value versus the US Dollar since October 2012. Mazda makes 71% of its vehicles in Japan and exports about 80% of them. It does not have a European production base and has recently ceased all production in the US. Mazda, the ifth biggest Japanese carmaker by sales, raised its operating pro it outlook for the year ending in March by €162m to €364.3m, which would be its highest since the pre-recession year ended March 2008, with the softer Yen accounting for €145.7m of the increase.

Mazda's export volume in the period from January to December 2012 increased 3.3% compared with the same period in 2011, reflecting increased shipments to North America and Oceania. European exports were down, largely as a result of an ongoing recession and the model change of the Mazda6.

Mazda car exports from Japan by destination region, 2012 Destination North America Europe Oceania Others Total

Volume 323,170 160,343 98,462 89,815 671,790

% Change YOY +23.2 -12.3 +17.4 -26.0 +3.3

Source: Mazda

Exports of key Mazda models, 2012 Model Mazda3 CX-5 Mazda2

Volume 290,723 164,003 76,996

% Change YOY +2.2% +4604.6% -15.4%

Source: Mazda

Mazda’s overseas production volume in the January-December 2012 period decreased 2.4% compared to the same period in 2011, due to reduced production of passenger cars, in particular the ending of Mazda6 production at the AutoAlliance International (AAI) plant at Flat Rock, Michigan, US. Mazda is exporting the replacement Mazda6 model for North American markets from its

Hofu 2 plant in Japan (pictured above). AAI, which started operations in 1992, will now build only Ford cars, though it remains a 50:50 joint venture between Ford and Mazda. The factory currently produces the Ford Mustang and a further €411m has been invested to add production of the Ford Fusion sedan from 2013.

Despite this move, Mazda is expanding its overseas production network, with new plants in Asia, Russia and Latin America all part of its plans.

Mazda overseas production, 2012 Vehicle type Passenger Cars LCVs Total

Volume 267,367 76,366 343,733

% Change YOY -12.5 +63.5 -2.4

Source: Mazda

¡

New Mazda6 Estate

IFW March 2013

39

fleet profile MAZDA

¡

NEW MODELS AND SKYACTIV TECHNOLOGY The two most recent Mazda models, the CX-5 crossover and the Mazda6 large saloon and estate, are the irst cars to have been designed around a new Mazda approach, which the company calls SkyActiv. This covers engines, gearboxes, stop-start and alternator systems, and the construction of the body. So Mazda refers to its new engines as SkyActiv engines; the chassis is a Skyactiv chassis, and so on.

The concept is based around sticking with internal combustion engines, but trying to be as innovative as possible – hence SkyActiv petrol engines have the highest compression ratios in their class, while the diesels have the lowest. Other innovations include an advanced stop-start system – Mazda’s i-Eloop technology, using a capacitor as an energy storage device, thus bypassing the lead-acid starter battery. The capacitor can store enough energy to power the car’s systems for a minute just during normal deceleration. The i-ELOOP system can boost economy by up to 10%, depending on driving conditions.

The two new cars look like being major successes for Mazda. They signal a further change of the company’s model offering, concentrating on mainstream sectors rather than performance cars. Production of the rotary-engined RX-8 ended last year, bringing to a close 45 years of Wankel engine use

by Mazda. The technology is not dead, but is only likely to reappear in the future, possibly as a hydrogen rotary concept.

Meanwhile, Mazda is ramping up production of the CX-5 crossover and doubling output of the SkyActiv engines launched with it. Last year Mazda said it would increase CX-5 capacity from 200,000 units to 240,000 units a year, adding assembly at a second line at the Ujina Plant in Hiroshima.

Mazda also doubled SkyActiv diesel and petrol capacity at its engine plant in Hiroshima from 400,000 units to 800,000 units a year from October 2012.

Meanwhile Mazda is aiming to sell

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240,000 units of the Mazda6 worldwide this year. The third generation Mazda6 (called Atenza in Japan) will be launched in over 120 countries in total. It is currently manufactured at Mazda's plant in Yamaguchi Prefecture, western Japan.

FLEET BUSINESS Only around 15% of Mazda’s European sales are classi ied as leet business – around 25,000 cars last year. But this leaves plenty of room for expansion, and the company has been ramping up its leet structure for the past couple of years.

Around half of Mazda’s total fleet sales are in the UK and the Netherlands, traditionally strong ‘company car’ markets. A European Fleet Operations department coordinates international business from its base at Mazda Motor Europe’s headquarters in Leverkusen, Germany, though most fleet business is still won at a national level in key markets, largely because of different attitudes toward company cars in different markets.

At Leverkusen, international tenders are responded to and contracts managed centrally, but vehicles are supplied at a national level. Crucially, almost all Mazda’s national sales companies are subsidiaries of

Mazda Motor Europe rather than independent importers.

In the UK, the new Mazda6 will be a major leet seller, said Mazda’s UK managing director, Jeremy Thomson: “The sector’s 75-80% leet, so leet is one of the primary areas we’ll target with the Mazda6.” Thompson said the old models had performed well in the UK leet sector until a couple of years ago, when stricter taxation on CO2 levels started to affect sales of the old, pre-SkyActiv models.

The UK is scheduled to receive 7,500 of the 39,000 Mazda6 models destined for Europe in 2013, though Thompson believes it’s “highly likely” that Mazda will sell more of the cars in the UK, pointing out that in its best pre-recession year, 12,000 Mazda6s were sold in the UK. The new, low-CO2 Mazda6 – it has CO2 emissions starting at 108g/km – gives Mazda “an opportunity to re-engage with key leet customers”, Thompson said.

Medium-large leets of 100 cars plus are the irst target, while the 140 UK dealers are being geared up to cope with smaller leets, through competitive contract hire rates and so on. “We’re in a very strong position for both user-choosers and leet managers.”

Mazda represents a “blank canvas”, said Thomson, with new cars and the ability to operate without the need for approval from Ford HQ in Dearborn. The Japanese heritage is being emphasised, for example through the Mazda6’s ‘Kodo’ design.

Mazda UK MD, Jeremy Thomson, is keen to re-engage with key fleet customers

The CX-5 is also proving popular in the leet sector, contributing to a growth in leet business to around 50% of Mazda’s total UK sales in 2013 – a major improvement on 2012, when only around 25% of sales were corporate.

Across Europe, the leet market is still geared around essential users and daily rental. And prior to 2001, Mazda had almost no presence in leet, as the focus was largely on private sales of small cars and MX-5 roadsters. Other European markets have looked to the UK for a lead – for example having corporate demonstrator leets.

Germany remains a strong market for Mazda – in the past Mazda has been the leading Japanese brand in Germany, and the emphasis on SkyActiv is playing well in the country – CX-5 has sold very well there.

OVERSEAS PLANT EXPANSION It might make good inancial sense in the short term for Mazda to concentrate on exporting cars from Japan, but the weakness of the yen is unlikely to continue inde initely. The weaker the yen, the more money Japanese companies make when they convert overseas pro its back into their home currency, and products exported from Japan can be sold at more competitive prices abroad. Japanese carmakers with a big domestic production base are more exposed to this move than those who make most of their cars outside Japan.

Mazda chief executive of icer, Takashi Yamanouchi, said the currency situation would not change Mazda’s plans to build more cars in foreign markets where demand is strong, a plan that was set in motion at a time when the Yen was much stronger, thus making overseas production much more favourable.

He said: “Mazda is establishing global production footprints in order to achieve our goal of an annual global sales volume of 1.7 million units by iscal year ending March 2016.

“We will absolutely maintain our structural reform, even if the strong Yen is being corrected. We do not want to repeat the struggles from recent years.”

Mazda has booked a net loss for the past four years since the global inancial crisis in 2008, though looks likely to turn in a pro it in the 2012-13 iscal year.

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¡

fleet profile MAZDA

CHINA

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MEXICO Mazda may have ceased production in the US, but it has not abandoned North America as a manufacturing base.

Instead, it is building a plant in Mexico, part of the North American Free Trade Area (NAFTA) but with lower labour costs than across the border in America.

The Mazda Motor Manufacturing de Mexico plant in Salamanca city, Guanajuato state, is scheduled to start production within the iscal year ending March 2014, initially producing the subcompact Mazda2 model, followed by the Mazda3. And it has recently been announced that the plant will also produce a Toyota-brand vehicle, to be based on the Mazda2, for sale mainly in North America.

Toyota will invest in production equipment and development costs related to the Toyota vehicle and also an appropriate portion of costs related to the plant’s production capacity increase. The sub-compact Toyota-brand vehicle will start production around the summer of 2015 at a rate of 50,000 units per year.

Through the agreement, TMC aims to strengthen its North American vehicle line-up, while Mazda aims to increase production ef iciency and contribute to its profitability. The Salamanca city plant will have an annual production capacity of 140,000 units and will employ around 3,000 workers.

RUSSIA Mazda Motor Corporation last year established a 50:50 joint venture with Russian automaker OJSC Sollers at Vladivostok, in Russia’s Far East, the irst auto manufacturing venture in that part of Russia. The opening ceremony of Mazda Sollers Manufacturing Rus was attended

by Russian President Vladimir Putin as well as senior Mazda and Sollers executives.

Mazda CEO, Takashi Yamanouchi, said: “The Russian automotive industry is rapidly growing with annual sales closing in on 3 million units. Mazda is at the vanguard of the auto industry in establishing a plant at Vladivostok, and it is expected to grow as an important hub, especially within the East Asian Economic group. Through this joint venture, Mazda aims not only to ensure its own further growth in this market, but also to make a contribution to the future of this industry in Russia.”

Operations began at the company’s production facility in October 2012 and in the beginning will be limited to CKD assembly with an annual production capacity of 50,000 units. Moving forward, Mazda aims to establish a body shop and paint shop, and increase capacity to 100,000 units. Mazda will produce two models in the new facility, the CX-5 from the start of production and later, the all-new Mazda6. A total of €202m has been invested, and the plant will eventually employ 3,000 workers.

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A major outcome of Mazda’s independence from Ford has been a major restructure of the automakers’ joint ventures in China involving Changan Automobile Group.

The three-way joint venture between the three automakers ended recently following a lengthy procedure that began in 2010, when Ford reduced its Mazda shareholding to 3.5%. The restructuring plan for Changan Ford Mazda Automobile (CFMA) has now received inal approval from the Chinese government.

Under the old structure, Ford held 35% of CFMA and Mazda 15%. Under the new structure, CFMA will be restructured into two separate joint ventures, Changan Mazda Automobile (Changan Mazda) and Changan Ford Automobile. The partnership between Ford and Changan will retain the Chongqing plants from the former three-way venture, as well as a plant under construction in Hangzhou.

Changan Mazda, a 50:50 joint venture, has been incorporated in Nanjing and will assume all of CFMA’s Mazdarelated business, including vehicle development, manufacturing, marketing and sales in China. Changan Mazda will manufacture Demio (Mazda2) and Axela (Mazda3) subcompacts. It also intends to make the CX-5 SUV in China, starting in 2013.

Ford's Fiesta model will continue to be built at the Nanjing plant in the short term, as Mazda sales in China have been hit by a wave of anti-Japanese sentiment in the country. Mazda had to reduce its China sales target for 2012 from 250,000 units to 185,000 units.

Mazda China CEO, Noriaki Yamada, is optimistic that Chinese sales will recover in the irst quarter of 2013.

“We hope that demand for Japanese vehicles in China will recover to normal levels by next April,” he said at the recent Guangzhou motor show.

Changan Mazda is to build an R&D centre at Nanjing in 2016 – having such a facility is one of the conditions of the split. The centre will aim to develop fuel-ef icient vehicles for the local market as well as electric vehicles and other alternative-fuel models. Mazda and Changan will invest around €59.8m in the R&D centre.

CX-5, and later new Mazda6, will be produced at the new plant in Vladivostock

BRAZIL As well as its new plant in Mexico, Mazda could open a second manufacturing base in Latin America. It is considering assembling vehicles in Brazil to sidestep import restrictions due from 2015.

“We are in talks with several Brazilian automakers on possible local knockdown production,” said Takashi Yamanouchi at last year’s Los Angeles Auto Show.

Mazda had originally planned to use the 140,000-capacity Mexico plant, due on stream in 2014, to export to both North and Latin America, as Mexico has a free trade agreement with Brazil.

But the Brazilian government has decided to restrict imports of inished vehicles, in a bid to protect the domestic car industry, which are forecast to reach 4 million units this year.

Elsewhere in South America, Mazdas are assembled in Colombia at a CKD plant in Bogota, which has a capacity of 15,000 units a year.

MALAYSIA Mazda Motor Corporation and Bermaz Motor Sdn. Bhd (Bermaz) have established a joint venture company in Malaysia called Mazda Malaysia Sdn. Bhd, based at Shah Alam, Selangor. Mazda owns 70% of the JV and Bermaz has 30%.

Mazda Malaysia’s main role is to oversee production and distribution of locally assembled models by Mazda’s local distributor Bermaz. Malaysian Mazda3 assembly form CKD kits started in January 2011, and the Mazda CX-5 SUV will be assembled at the Inokom plant3 in the Malaysian state of Kedah starting from spring 2013. Production target is 3,000 units of each model.

THAILAND Thailand is already well established as Mazda’s biggest overseas production base. The AutoAlliance Thailand (AAT) plant, a continuing JV with Ford, builds the BT-50 pick-up for global markets, alongside the similar Ford Ranger. Mazda3 cars are also produced, and total AAT capacity is 275,000 units.

Last year Mazda announced it would construct a transmission plant with an annual production capacity of 400,000 units in the Chonburi The AutoAlliance Thailand Province at an plant produces Mazda3s. investment of €210m.

Mazda has decided to establish the wholly-owned Mazda Powertrain Manufacturing Thailand (MPMT) plant in order to respond to increasing demand for models featuring SkyActiv technology and to strengthen its global production footprint. Operations at the new plant will commence in 2015 and it will employ 500 workers.

The transmission plant will be located approximately 5km north of AAT and will supply automatic transmissions for models produced at AAT and other Mazda production facilities around the world. The Hofu Plant in Japan will remain the chief production facility for transmissions, but the second plant is designed to enable Mazda to cope with the rapidly increasing demand for SkyActiv models.

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

March 1-3 Transpotec Logitec 2013, Verona, Italy (CV) www.tltiexpo.it 7-17 Geneva 83rd International Motor Show, Switzerland (PC) www.salon-auto.ch 22-31 Belgrade International Motor Show, Serbia (PC, LCV) www.belgradefair.rs 29-7 April Seoul International Motor Show, South Korea (PC, LCV, CV) www.motorshow.or.kr April 9-11 The Commercial Vehicle Show, Birmingham, UK (CV) www.cvshow.com 23-26 NAFA Institute and Expo, Atlantic City Convention Center, NJ, USA www.nafa.org/conference 24 Fleet World Fleet Show 2013, Silverstone Wing, Silverstone, Northants, UK www.thefleetshow.co.uk May 11-19 Barcelona International Motor Show, Spain (PC, LCV) www.firabcn.es 31-2 June International Kyiv Auto Salon 2013, Ukraine (PC) www.sia-motorshow.com.ua June 4-5 The Blue and Amber Light Fleet Exhibition, Telford International Centre, Telford, UK (Emergency services) www.napfmevent.org.uk 15-23 Sofia International Motor Show, Bulgaria (PC) www.svab.bg 20-30 Buenos Aires International Motor Show, Argentina (PC, LCV) www.elsalondelautomovil.com.ar September 10-14 Moscow Auto Salon COMTRANS, Russia (LCV, CV) www.oar-info.ru 10-22 Frankfurt International Motor Show, Germany (PC) www.iaa.de October 4-13 Bucharest International Motor Show, Romania (PC, LCV) www.siab.ro 18-27 Johannesburg International Motor Show, South Africa (PC, LCV, CV) www.johannesburgmotorshow.co.za November 2-10 Athens International Motor Show, Greece (PC, LCV) www.seaa.gr 14-17 COMVEX Istanbul Commercial Vehicles, Buses and Components Expo, Turkey (LCV, CV) www.osd.org.tr 22-1 December Los Angeles Auto Show, USA (PC) www.laautoshow.com 23-1 December 43rd Tokyo Motor Show, Japan (PC, LCV, CV) www.tokyo-motorshow.com 27-2 December Riyadh International Motor Show, Riyadh Exhibition Center, Murooj Area, Olaya St, Riyadh Saudi Arabia (PC), www.recexpo.com KEY: PC – passenger cars // LCV – light commercial vehicles // CV – commercial vehicles

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launch report Volkswagen Golf p46 Range Rover p47 Mazda6 p48 Mercedes-Benz Arocs p49

Good looks and low fuel consumption could prove to be a winning fleet formula for new Mazda6... p48

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launch report

Volkswagen Golf Volkswagen has come up with a class-leader in the new Golf, again, says John Kendall.

SECTOR Lower medium PRICE €16,975 – €28,825 FUEL 3.8 – 5.3l/100km CO2 99 – 123g/km It was a strange sight – a group of journalists sitting around gloomily exchanging notes on the latest Volkswagen Golf, looking desperately for a glaring fault to write about and finding nothing of significance. As we said following the launch of the 7th generation Volkwagen Golf, it might not be the most inspiring car to look at but it rarely disappoints to drive or travel in. I remember driving the 4th generation Golf, a modest looking car even by Golf standards, but I was stopped and asked about that car on more occasions than any other I can remember.

The obvious model to drive was the 1.6litre TDI, which is likely to be a favourite for fleet managers, along with the BlueMotion model, also powered by a 1.6-litre TDI, but whereas the 1.6 TDI produces 105hp between 3,000rpm and 4,000rpm, returns 3.2l/100km on the combined cycle (3.25l/100km for the DSG equipped model) and 99g/km CO2 (102g/km for the DSG), the BlueMotion model reduces combined consumption to 2.7l/100km and CO2 emissions to 85g/km. Volkswagen says that the BlueMotion 1.6TDI engine is completely new and also produces 110hp.

The Golf is based on Volkswagen’s much-discussed MQB architecture. It is not a platform as we understand it, but a

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method of placing all the major components in the same place, regardless of model. In time Polo, Beetle, Golf, Scirocco, Jetta, Tiguan, Touran, Sharan, Passat and CC will all share the layout, as will corresponding Audi, SEAT and Skoda models.

But initials do not tell what a car is like to drive. The Golf may retain that slightly anonymous, yet distinctive appearance, but it is the best Golf to drive without a doubt. The 1.6-litre diesel is as impressive as ever for its refinement and deceptive torque, able to pull cleanly from low in the rev range, while returning good fuel consumption and offering enough performance for most situations.

It rides and handles as well as you would hope. While the car is generally larger and lower, it is also lighter, which is good for fuel consumption and agility.

Volkswagen has added a good deal of safety equipment to this model. Standard for the UK market are ABS with ESP, 7 airbags and XDS, an electronic differential lock and automatic post collision braking.

Equipment may vary in other markets.

That’s just the beginning, other options, depending on model and market, include the PreCrash system that first appeared on the Touareg, automatic cruise control, city

emergency braking, front assist and a driver alert system. And there’s more too, including different drive modes; Eco, Sport, Normal and Individual depending on specification, among many other options.

The extra space inside the car is welcome. The front axle has been moved forward 43mm and it’s 13mm wider, resulting in 15mm more rear legroom, more legroom in the front, 31mm more shoulder room and 22mm more elbow room than before. At the same time, the boot is 30litres larger. It was easy for a 1.85m tall driver to get comfortable with room for a similarly sized passenger behind.

Drivers will get a touch screen display as standard with DAB digital radio as standard too.

Altogether, the latest Golf looks like a perfect fleet car with the 1.6-litre TDI engine – lots of safety equipment, low cost of ownership and the best Golf to drive yet. Both fleet managers and drivers should be happy.

verdict We’ve only scratched the surface, but the new Golf offers a great deal more than its predecessor. And it’s the best Golf yet, which should worry quite a few rivals.

Range Rover The latest Range Rover is lighter, more fuel efficient and almost unrivalled, reckons John Kendall.

SECTOR Large SUV PRICE €82,960 – €114,500 FUEL 7.5 – 13.8l/100km CO2 196 – 322g/km Is it possible to be British and not like a Land Rover product? In short, yes – I wouldn’t be first in the queue at my local dealer for an Evoque for instance. And for many years, Land Rover’s larger models – Discovery and Range Rover - have simply been too heavy. Discovery 4 was the first to go on a diet and the new Range Rover has also been shedding the kilograms.

It’s 420kg lighter than the outgoing model launched in 2002 – that’s the weight of a mature horse. Some of this is due to the fact that it is replacing an 11year old model. A car with shorter model cycles would have shed weight in stages, but the Range Rover has gone straight to an aluminium monocoque, which is 39% lighter than the steel body of the outgoing model. Efficiency is boosted by a revised aerodynamic profile making it the most aerodynamic Range Rover ever with a drag coefficient starting from 0.34Cd. Range Rover gets a broader choice of engines too starting with the 3.0-litre 258hp TDV6 diesel. This supplements the 4.4-litre 339hp V8 diesel and a pair of petrol V8s, both of 5.0-litres – a 375hp naturally aspirated and 510hp supercharged version. Later this year will see the launch of a diesel hybrid model. All

engines drive through an 8-speed automatic transmission and two-speed transfer box to all four wheels.

Land Rover’s Terrain Response system has been through an upgrade for the new model too. There’s no need to select the surface as in the previous model. Terrain Response 2 will sense what is needed from the array of on-board sensors and the choice of high or low ratio in the transfer box.

Land Rover claims a 22% reduction in fuel consumption with 7.5l/100km and CO2 emissions of 196g/km for the TDV6.

The diesel hybrid has a CO2 target of 169g/km.

The latest Range Rover is every bit as capable as its predecessor, yet its credentials as a luxury road car have also been improved with adaptive dynamics to improve the ride quality and over 118mm more rear legroom and rear two-seat executive class option for those who prefer to be driven.

Our drive coincided with an English snowfall and the gritted and cleared roads were nothing of a challenge for the ‘basic’ Vogue TDV6. We also had a long drive session off road at Eastnor Castle in Herefordshire UK, where Land Rover

carries out some of its off-road development work. This involved driving on snow and ice, through water and on some of the slipperiest surfaces I have ever driven off-road in an Autobiography supercharged V8.

Such conditions are a challenge for any vehicle. But the Range Rover dealt with the conditions without drama. Descending a slippery snow covered grass slop was the most challenging moment, where speed control was crucial, but managed easily by the Hill Descent control braking individual wheels to ensure that the car stayed pointing in the right direction. It may be armchair off-roading in every sense, but it shows just how far technology has progressed in the 42 years since the first Range Rover made its appearance.

To demonstrate the rear seat space, I was driven back to our start point in the same car that we had used to negotiate the off road course.

verdict The new Range Rover is a seriously impressive car both on and off-road. If you have the budget, there is nothing else like it.

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launch report

Mazda6 The new Mazda6 is smarter in every sense, reckons Stuart Birch.

SECTOR Upper medium PRICE €23,150 – €31,540 (approx) RANGE 3.5 – 4.9l/100km CO2 108 – 136g/km Car companies supplying the fleet market are fond of boasting that they have squeezed the CO2 figures of their latest model to the max, but the all-new Mazda6 will go one better; or to be more precise, four better.

The business car-targeted 2.2-litre 150hp diesel with 6-speed manual transmission, has just been launched claiming a best-in-class 108g/km, says Jeremy Thomson, managing director of Mazda Motors UK: “But we will see continuous improvement through the early lifecycle of the model to reduce the figure by another 4.0g/km by late summer, further lengthening our lead over the opposition that until now has been headed by the BMW320d.”

This and a combined fuel consumption of 4.2l/100km means Mazda is playing an impressive game of catch-up. The outgoing 6 had become “a bit less competitive” admits Thomson: “Taxation is now hardwired into people’s choice in terms of CO2 – and that’s why we are now best in class.”

But is the 6 a little late for the party?

Thomson says: “Better to arrive fresh and beautifully dressed.”

That may sound a touch glib but he has a point: the new Mazda6 with its SKYACTIV Technology, impressive frugality potential and ‘KODO – Soul of Motion’ styling, is smarter in every sense. It is not a premium

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car but in airline terms it sits confidently in premium economy.

Engine choice is 2.0-litre petrol (145hp and 165hp) or 2.2-litre diesel (150hp and 175hp).

Rather than downsizing, Mazda is focusing on making larger engines more efficient – and avoiding turbocharging the petrol units.

Driving the Mazda6 in Portugal proved it to be a competent, exceptionally wellequipped (particularly in SE-L trim), roomy and good-looking alternative to arch rivals, which include the Volkswagen Passat.

Extensive motorway travel demonstrated that the 150hp diesel version (from €25,750 approx) cruises well, although road noise is too obvious on some surfaces. Aerodynamic efficiency is an impressive 0.26CD. Cockpit ergonomics are excellent. In town, the car is easy to drive (forward visibility is claimed as class leading) and park.

On the few winding, poorly surfaced roads on Mazda’s test route, the car proved competent enough with good ride quality.

Handling is safe and sure but suspension settings are on the soft side and steering feel is nothing to write home about.

In manual form, the torquey (380Nm at 1,800rpm) 150hp diesel saloon reaches 96km/h in 9.0 seconds (auto 9.8 seconds) with 211km/h top speed potential (auto

204km/h). Urban consumption is 5.10l/100km. Six-speed automatic transmission suits the car well.

The new Mazda comes in saloon and Tourer forms, the latter with a 102mm longer wheelbase for fine rear seat legroom. The Tourer also offers added luggage space: 522 litres versus 489 litres.

Both have ‘kerb appeal’. Thomson says: “For many fleet users the new Mazda6 will be a mix of essential and ‘perk’ car.”

Depending on the market, standard equipment includes autonomous Smart City Brake Support, which helps towards lower insurance grouping compared with the outgoing model. A brake energy regeneration system can provide a 10% economy improvement. At present there is no spare wheel – and no sunroof/panoramic roof option, which is a pity.

With a €23,150 UK entry price, Thomson is confident of high residuals for the Mazda6: “It will be top quartile within its sector.”

verdict Good looks and low fuel consumption could prove to be a winning fleet formula for new Mazda6, whilst exceptional equipment levels will appeal to drivers.

Mercedes-Benz Arocs The Mercedes heavy truck range is almost completed by the Arocs construction range. Ian Norwell reports.

SECTOR Heavy truck GVW 41.0 tonnes ENGINE 7.7, 10.7, 12.8 and 15.6-litre Euro-VI, 238 – 625hp.

After a new Actros long-distance truck and then the Antos, a completely new heavy short-radius distribution range, both launched in 2012, Mercedes-Benz has now uncovered its Actros/Axor replacement for the construction industry. Yet another madeup name beginning with ‘A’, it’s the Arocs.

It will have big shoes to fill and the proliferation of engines, cab panels and transmissions reflect the range of international components in the Daimler garage. Spanning the gulf between 18 and 41 tonnes, it starts with an entry-level 4x2 two-axle rigid with 238hp, and climbs to a rarefied 8x8 chassis with 625hp and 3,000Nm of torque.

Between the pair, there lies as comprehensive a range of tipper, mixer, aggregate and muck-away chassis as is available anywhere.

With the preceding ranges of the last year or two launched and in service, the Arocs could be said to have already existed, but not all assembled in the same place. Cab shells and panels – except for the frontal design specific to the Arocs – engines, gearboxes and much of the final drive gear already exist and they are establishing a sound track record.

Most notable, certainly for the construction sector, is the standardisation on an AMT (automated manual transmission). A manual three-pedal affair is available, but only as a

cost option. The tables have finally turned for the manual box in one of the last hold-outs, construction. 14 cab sizes and 16 power outputs from four engine displacements cover all needs, and a few more. There are even ‘posh‘ flat-floor cab variants, hitherto the preserve of the long-distance men.

In addition to the new range, the Munich launch also heralded the 15.6 litre OM473 engine that is the natural successor to the old portly Mercedes V8s of yore. This engine is now also officially available in the new Actros, completing that line-up.

Men are also on the move in the international management hierarchy of Daimler’s truck division. Stefan Buchner, previously responsible for global power trains at Daimler trucks, has now stepped up to take over as head of Mercedes-Benz trucks, reporting to Daimler board member Andreas Renschler. Buchner replaces the urbane Hubertus Troska, who has moved to manage Daimler’s operations in China. Industrywatchers predict that he will return to Stuttgart in an even higher position at some future stage. But the timing of his latest career ‘wash-and-spin’ cycle will depend on the vagaries of China’s automotive market.

As with previous truck ranges, there are variants that aim at customers for whom

every ounce of payload has an impact on the balance sheet. Others need the carrying capacity for sure, but they also want a bombproof build that will soak up abuse. For these two client bases the Arocs comes in the quaintly named ‘Loader‘ and ‘Grounder‘ versions. Genteel marketing language describes the Loader as ‘payload-optimised’. Hard-bitten fleet buyers would probably call it ‘stripped-out’, but that would not be a criticism. The Arocs ‘Loader’ 8x4/4 32-tonne cement mixer chassis claims a kerb weight of 9,250kg, and a payload that reaches that benchmark eight cubic metres of concrete.

A raft of measures to cut kerb weight includes chassis frames in different widths and thicknesses, aluminium wheels, tanks and air reservoirs and even a practical cab that deletes the passenger seat.

The new range will be on show at the UK CV show in April, where Mercedes will also unveil the new Atego light truck. Arocs production begins in May.

verdict Arocs helps to give Mercedes-Benz the most modern truck range in Europe.

Comprehensive driveline, chassis and cab options will increase its competiveness.

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fleet in figures

European CV registrations weaken in 2012 European CV registrations struggled last year, but the US revival appears to be taking hold, reckons John Kendall.

It is likely Renault has retained its leadership in the light CV sector.

Full year figures for commercial vehicle registrations in Europe from the European Automobile Manufacturers’ Association (ACEA) show a predictable set of results for 2012. Overall for all sectors, registrations fell by 12.4% on average from 1,934,675 in 2011 to 1,695,173 in 2012.

Following the pattern throughout the year, all major markets saw registrations fall and it was only Baltic and East Euro-

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pean States in the EU, as well as Iceland and Switzerland among the European Free Trade Association (EFTA) States that saw registrations grow.

In contrast to its fortunes in the passenger car sector, France was the largest CV market in Europe in 2012 with 432,973 registrations, some 10.3% less than in 2011.

Second placed Germany saw registrations slip by 7.0% to 311,948, while the UK

market slipped back by 5.7% to 289,154.

Portugal experienced the largest percentage decline during the year with registrations falling by more than half (52.2%) to 18,126. Among the larger markets, Italy experienced the largest decline, with registrations down 31.7% to 131,984. Portugal took a smaller hit with registrations down 25.9% to 91,402.

As yet statistics for the full year by man-

decline of 12.45% compared with January 2012. Even % change so, India remains a largely two-wheeled -10.3% market with motor-7.0% cycles accounting for the majority of -5.7% registrations.

In terms of produc-31.7% tion, Indian vehicle -25.9% manufacturing grew by 2.76% between April 2012 and January 2013, compared with the same period for the previous year.

EUROPE TOP 5 LCV REGISTRATIONS BY COUNTRY Country

2012

2011

France

432,973

482,823

Germany

311,498

334,822

UK

289,154

306,488

Italy

131,984

193,209

Spain

91,402

123,353

ufacturer are not available from ACEA, but it is likely that the pattern for the half year was similar for the remainder of the year.

If so, it would mean that Renault retained its leadership in the light CV sector, followed by Ford, VW, Peugeot and Citroën.

In the heavy sector above 3,500kg gross weight, Daimler was the market leader after six months in 2012, followed by MAN, DAF, Volvo and Iveco.

In the coming year, heavy truck manufacturers will be preparing themselves for the introduction of Euro-VI emissions regulations, which will take full effect in January 2014. Because this is likely to bring an on-cost of between €8,000 and €12,000 per vehicle, most manufacturers are expecting a surge of orders for Euro-V vehicles ahead of the deadline. Given the longer lead-time to build a truck, this probably means that orders for Euro-V compliant vehicles will have to be placed by June at the latest. Following the introduction of Euro-VI limits, the European truck industry is bracing itself for a lean 2014.

INDIA Data from India shows a mixed picture for the Indian vehicle market and vehicle manufacturing. For the period April 2012 to January 2013, domestic CV registrations declined slightly by 0.37%, compared with the same period in 2011/12. This was caused by a combination of a large fall in the medium and heavy CV sector, with registrations down 21.37%, while light CV registrations increased by 15.48%.

By contrast, the passenger car market in India grew by 6.8% over the same period, although figures for January 2013 show a

US Polk is forecasting that the revival in the US auto sector will continue with forecast light vehicle registrations rising to 15.3m in 2013, 15.8m in 2014 and 16.2m in 2015. The forecast follows a buoyant start to 2013 with light vehicle sales rising 14% in January compared with January 2012.

Polk’s Tom Libby points to a number of factors driving growth, including low interest rates and a promise from the Federal Reserve to keep them low until unemployment falls below 6.5%, enabling motor manufacturers to offer low interest rate finance. US house prices are rising and house building has reached its highest rate since June 2008. Libby suggests this will stimulate the large pickup truck sector, while rising equity in property will encourage spending on motor vehicles.

Libby also points to falling unemployment, rising industrial output and a strengthening stock market. A wealth of new product seen recently at the Detroit Show shows that the industry is looking up too.

But Libby also lists the potential problems that could de-rail the US economic recovery. These include tensions in the Middle East and North Africa, which could send oil prices upwards, lack of economic growth and unstable fuel prices.

J.D. POWER VEHICLE DEPENDABILITY SURVEY 2013 It’s that time of year when J.D. Power and Associates presents the findings of its vehicle dependability study in the US. As

J.D. Power explains, “The study, now in its 24th year, measures problems experienced during the past 12 months by original owners of three-year-old vehicles (those that were introduced for the 2010 model year). Overall dependability is determined by the number of problems experienced per 100 vehicles (PP100), with a lower score reflecting higher quality.” The survey is drawn up from responses provided by 37,000 original owners of 2010 models after three years of ownership.

Toyota and its related companies racked up no less than 7 awards, while General Motors took 4. According to J.D. Power, the dependability of models now that were new or substantially redesigned for the 2010 model year were rated by the company as 116 on the PP100 scale compared with 133 for models that were unchanged from the 2009 model year. This is the first year that the company has recorded fewer reported problems for new or re-designed models than for models carried over since the study was re-designed in 2009. Models that were refreshed in 2010 averaged 111 for the 2013 survey.

“There is a perception that all-new models, or models that undergo a major redesign, are more problematic than carryover models,” said David Sargent, vice president of global automotive at J.D. Power and Associates. “Data from the 2013 VDS suggests that this is not the case. The rapid improvement in fundamental vehicle dependability each year is more than offsetting any initial glitches that all-new or redesigned models may have.”

In the survey, overall vehicle dependability averaged a score of 126, 5% better than the 2012 score of 132, while US brands average 133 compared with 123 for imported models.

Lexus ranked highest in the survey with a score of 71, with the Lexus RX recording the fewest reported problems with a score of 57. Making up the top 5 were Porsche (94), Lincoln (112), Toyota (112) and Mercedes-Benz (115). The bottom five were Volkswagen (174), Jeep (178), Mitsubishi (178), Dodge (190) and Land Rover (220).

IFW March 2013

51

SIMPLY CLEVER

ŠKODA Rapid.

A great news for your fleet.

Regardless of which angle you look at the new ŠKODA Rapid, you will always discover many good reasons why to make it a member of your company fleet. Rapid is a representative as well as a practical car. Behind its elegant clean lines awaits a spacious interior and many clever details that will make traveling pleasant for the entire crew. For example, the side pockets where you can place your cell phone, an ice scraper mounted on the fuel tank lid or the multimedia holder located on the center console. While drivers will enjoy the high performance of TSI engines, fleet managers will appreciate their efficiency.

The offer also includes extremely efficient 1.6 TDI diesel engines. All TDI and TSI engines are also available in Green tec versions that are particularly environmentally friendly. With the new ŠKODA Rapid your fleet will reach a completely new level.

Contact us as soon as possible. We will gladly introduce you to other ŠKODA models from our fleet offer. www.skoda-auto.com

Combined fuel consumption and CO2 emissions for the Rapid model: 3.9–5.8 l/100 km, 104–134 g/km