INTERNATIONAL
FLEETW RLD All that matters in the world of fleet March 2016
Driven
Fuel disclosure
Fleet focus
Kia Sportage Volvo XC90 New Evoque
How alternatives to diesel are shaping the fleet market
Why Poland’s fleet market could be the land of opportunity
Interview Lars LagstrĂśm of Volvo
Evolving vision Skoda goes all out to increase market share
plus...
Show-stoppers from the Detroit Motor Show internationalfleetworld.com
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INTERNATIONAL
FLEETW RLD All that matters in the world of fleet
contents
March 2016
Driven
Fuel disclosure
Fleet focus
Kia Sportage Volvo XC90 New Evoque
How alternatives to diesel are shaping the fleet market
Why Poland’s fleet market could be the land of opportunity
Interview Lars Lagström of Volvo
Evolving vision Skoda goes all out to increase market share
plus...
Show-stoppers from the Detroit Motor Show internationalfleetworld.com
Publisher Jerry Ramsdale jerry@fleetworldgroup.co.uk
14 Motor City show highlights.
22 Looking at viable diesel alternatives.
26 Lars Lagström of Volvo on XC90.
36 Behind the wheel of Kia’s Sportage...
Editor John Kendall john@fleetworldgroup.co.uk Deputy Editor Alex Grant alex@fleetworldgroup.co.uk Business Editor Natalie Middleton natalie@fleetworldgroup.co.uk Features Editor Katie Beck katie@fleetworldgroup.co.uk Fleet Consultant Ross Durkin ross@fleetworldgroup.co.uk Sales Director Anne Dopson anne@fleetworldgroup.co.uk Sales Executives Darren Brett darren@fleetworldgroup.co.uk
04 Fleet Review Editor John Kendall is a convert to adaptive vehicle technology. 06 Inside Knowledge Bart Vanham of TCOplus on the importance of fleet safety.
Claire Warman claire@fleetworldgroup.co.uk Circulation Tracy Howell tracy@fleetworldgroup.co.uk
14 Show Review The key vehicles on display at the Detroit Motor Show.
Dawn Mitchell dawn@fleetworldgroup.co.uk
18 On Fleet All the details of SEAT’s major new deal with the Italian police.
Head of Production Luke Wikner luke@fleetworldgroup.co.uk
19 Feature Dave Moss on why alternative fuel vehicle sales remain slow.
Designers Tina Ries tina@fleetworldgroup.co.uk
22 Feature Fuel Management: investigating viable alternatives to diesel.
Samantha King sam@fleetworldgroup.co.uk
26 Interview Volvo’s Lars Lagström explains why electrification is the future. 28 Fleet Focus Poland’s potential as a strong market for vehicle leasing. Published by Stag Publications Ltd, 18 Alban Park, Hatfield Road, St Albans, Herts, AL4 0JJ tel +44 (0)1727 739160 fax +44 (0)1727 739169 email ifw@fleetworldgroup.co.uk web internationalfleetworld.com
32 Profile Skoda’s assault on the SUV sector and global sales fortunes. 36 Launch Report Kia Sportage / Volvo XC90 PHEV / Range Rover Evoque. 40 Fleet in Figures Breaking down the latest global vehicle sales by region.
Wednesday 11th May 2016 Silverstone STAG Publications
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fleet review
This month, editor John Kendall considers the decline in sales of alternative fuel vehicles, while praising the latest adaptive tech.
Alternative fuel vehicle sales It’s interesting but not surprising that Dave Moss finds that sales of natural gas and liquefied petroleum gas (LPG) powered vehicles have been falling in his feature on p.19. Clearly our current comparatively low oil prices have had an impact, but the effect is being felt even in traditionally strong markets like Italy and the Netherlands, although tax changes in the Netherlands also play a part in the falling market there. As Dave points out, government incentive programmes still play a big part in the buying process for such models because of the high upfront cost of buying them, which the first owner may not recover even with comparatively low energy costs. The Netherlands is not the only country to change tax structures for alternative fuel vehicles, it has happened in the UK too. In the UK, the government may look at the takeup for plug-in hybrids (PHEVs), conclude that the incentive scheme had worked, therefore justifying reducing the incentive. I have some sympathy with that view since many PHEV purchasers in the UK have been company car drivers who have their fuel paid for them. These drivers are eligible for low Benefit-in-Kind tax, but without the personal incentive to save money on fuel, many choose not to recharge their PHEV models and just use the fuel tank instead. Reducing tax incentives for PHEVs could close this loop hole.
Motor City powers up
At the same time, looking at our Detroit Show report, it seems that power is back for North American drivers. It can’t be unrelated to the fall off in alternative fuel vehicles that is being experienced in Europe. Low fuel prices make us all think again. There’s something about a V8 that is hard to resist for automotive fans.
Adaptive Technology Adaptive technology in cars such as adaptive headlamps and adaptive cruise control will be important equipment on autonomously driven cars. I have been thinking about how my own attitude to such things has changed. A year ago, I wouldn’t have considered adaptive cruise control (ACC) as something I would want, but having lived with several cars that have had it, I would now choose ACC over conventional cruise control. Why? Because I drive on many single carriageway roads where there is no opportunity to overtake, so I might as well join the electronic convoy. It must surely only be a matter of time before all cars are fitted with adaptive LED or laser diode headlamps. The ability to change the beam for oncoming traffic and avoid dazzle is one of the best advances for night driving. It’s just ironic that I am currently driving a car with LED headlamps and cruise control that are not adaptive…
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inside knowledge
Let’s talk about... Safety... Baby! www.TCOPlus.com partner Bart Vanham explains how more can be done to advance the S-word for fleets... hange the S-word and it would be a song everynies to pick from a menu and make safety one knows… The same can be said on the programmes bespoke to the culture of the company. importance of safety in traffic in general or fleet Furthermore, technology has made programs more in particular. Nevertheless it is my honest feeling that accessible lowering the implementation hurdles and there is a lot of talk but not a lot of action… allowing an international scope of initiatives. E-learnI have been around for more than 20 years in fleet ing safety courses, applications on smartphones to and started in 2010 as an entrepreneur in fleet being a provide feedback on driving profiles and special car tax expert, developing into TCO-expert. Together communication programs etc have completed the list. with partners we have established successful enterThis allows companies to set up a customised prises in fleet consulting, IT tools like global reporting program. For example, a light communication and light e-learning programme for non-company car drivers, and what-if analysis tools, and a company focused on measuring driving behaviour, combined with a driver behaviour and safety. customised fully-fledged e-learning for company car We started talking about fleet safety in 2009/2010 drivers and a behind-the-wheel course for those in need on the international and Belgian scene. At that time, (or other mixes) – even with an international scope. some of the companies tried behind the wheel training and telematics was on the rise, especially in the More than ever before, the business case to install a UK. Ever since we have met a lot of companies who safety programme is positive. Fuel savings, savings related to direct and indirect cost of acciunderstand the need to do dents, topped with employer or something to increase safety commercial branding benefits etc and reduce accidents or inciSafety first! are overcompensating cost, and dents. We talked a lot and listenFleet safety could become the improved availability of data ing to colleagues in the market – the next big thing in allows fleets to measure this. they talked a lot. Enthusiasm fleet management The real motivator seemingly voiced by fleet, HR or CSR is country-specific Regulations managers during those meetor Directives like the Corporate ings was not often translated Manslaughter act in the UK into real actions, just a feeling shared by others in fleet… (safety is an established part of The internal hurdles for those fleet management in the UK) enthusiasts to sell such projects and new regulations in Germany, followed by the to the board were many. Some of increased real attention compathe most frequently heard were: nies are placing on Corporate It is money spent outside the Social Responsibility. core-business and it’s challengWe feel a change is due and looking at the magazines ing times; ‘investments’ should be to the core of the busiand event initiatives focusing on safety, we can say that ness; Success of safety programmes is hard to measure; Fleet Safety could become the next big thing in 2016/2017. Is data available and reliable…? It is not acceptable to only focus on the safety of company drivers; other projSo take responsibility for your company and your ects, tenders and CO2-reduction, to name but a few, are society and start working on safety! The business case less HR-sensitive and may bring the same or better is there, the menu of products and services is appealing, the scope can be international and results can be results… I am sure you will be able to complete the list. measured. What are you waiting for? Let me know... However, since then, initiatives to increase safety B.vanham@tcoplus.com have multiplied, creating the possibility for compa-
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business news LeasePlan profits up 19% in 2015
Fleet Logistics to expand into US
easePlan has reported a 19% rise in net profits for helped by a 9% increase in its global fleet. LThe2015, leasing giant expanded its fleet to a record level of
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1.55 million vehicles worldwide in 2015. Growth was noted throughout all regions, including the Netherlands, France, the UK, the US and Germany, to emerging leasing markets such as Turkey, where the company acquired sole ownership of the local entity. The SME segment became LeasePlan’s fastest‐grow‐ ing client segment, seeing growth of over 12% in 2015. By the end of 2015, LeasePlan operations in 22 coun‐ tries were serving SMEs and four more were in the process of setting up local dedicated SME activities.
leet management specialist Fleet Logistics is to make its first operational foray into the US fleet manage‐ ment market. The firm is working with a large international chemi‐ cal company with a global fleet of around 8,000 vehicles in a first US pilot project. CEO Rainer Laber said: “Although this is our first oper‐ ational move into the US, we will do it in such a way that fully respects the existing structures that are in place. But we now believe we are strong enough and self‐confi‐ dent enough to be able to make this move, and we will learn quickly from the experience for the benefit of both our US and our European customers.”
Paragon sets up business in China
ALD to acquire Parcours Group
outing and scheduling software specialist Paragon has R set up a wholly owned subsidiary in Shanghai as part of its continued commitment to the Chinese market.
ociete Generale, parent firm of ALD Automotive, has S announced it’s in exclusive talks to acquire the shares of French long‐term vehicle leasing company Parcours
After initially operating via the China‐Britain Business Council’s launchpad scheme, Paragon has completed the formal processes that are required to operate in China as a Wholly Foreign Owned Enterprise (WFOE). This status enables companies to operate as a full legal entity in China allowing them to employ their own staff and enter into contracts directly instead of via an overseas‐ based parent company. Paragon introduced a Chinese language version of its software in 2012, and now has a number of customers in China using its routing and scheduling solutions.
Group for €300m. Founded in 1989 by Jérôme Martin, Parcours Group is majority‐owned by Wendel and also operates in Spain, Belgium, Luxembourg and Portugal. Its total fleet stands at 61,500 vehicles – of which 55,000 are in France – as of the end of 2015. Parcours said the transaction will give it the industry and financial support it needs to step up its growth and development in France and abroad.
Safran extends collaboration with Ubeeqo aerospace company Safran has extended FItsitsrench‐based existing car sharing partnership with Ubeeqo. Snecma aircraft and rocket engines division already runs nearly 80 vehicles and has now added six new vehicles. In addition the Sagem division is now providing its employees with 13 cars for its Eragny site. Already Safran has managed to reduce the number of vehicles on its fleet by 40%. High priority is also put on electric vehicles, which represent more than 30% of shared fleet.
ALD and Infiniti partner for German fleet initiative
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LD Automotive Germany has teamed up with Infiniti Financial for the fleet market. The new Infiniti Fleet Services brand will provide customers with a comprehensive portfolio of full‐service leasing solutions, backed up by servicing modules such as engineering and maintenance, fuel cards, tyres, insur‐ ance services and reporting. The firm said the launch of the initiative comes as Infiniti looks to target the fleet market with the Q30 and the QX30 mid‐crossover.
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Leaseurope puts focus on SME leasing easeurope is launching a series of roundtable meet‐ L ings across European countries to discuss leasing as a key source of finance for SMEs. The aim is to explore the national SME financing land‐ scape and improve the understanding of leasing as a valuable form of investment finance, as well as identify‐ ing any potential obstacles hindering its use by local SMEs and how these could be tackled at national and ultimately European levels.
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Always green. No matter what colour. Although most of our fleet cars are delivered in silver, green is becoming more popular every day. With this low-emission company car, Mercedes-Benz impressively combines the best of three worlds – sporty dynamics, exceptional comfort and sustainable efficiency. The C 350 e PLUG-IN HYBRID clearly demonstrates that green is no longer just a matter of colour, but is now also an attitude. www.mercedes-benz.com/fleet
Provider: Daimler AG, MercedesstraĂ&#x;e 137, 70327 Stuttgart, Germany
A Daimler Brand
Fuel consumption combined: 2.4–2.1 l/100 km; combined CO2 emissions: 54–48 g/km. Electrical energy consumption NEDC acc. to ECE-R101: 13.2–11.0 kWh/100 km.
environmental news Europe’s plug-in market doubled in 2015, ACEA data shows
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egistrations of plug‐in hybrid and electric vehicles more than doubled in Western Europe last year, with the Netherlands becoming the region’s largest market for these technologies. ACEA data shows 185,266 plug‐ins registered across the EU15 and EFTA countries during 2015, compared to 91,409 units in 2014. Excluding LPG and CNG vehi‐ cles, plug‐ins accounted for 45.1% of all alternatively‐ powered vehicles registered across the region, up from 32.8% the previous year. Sales growth was significant in the Netherlands, where company car tax advantages for plug‐ins were reduced at the end of December. The resulting rush to get the higher incentive meant it became the biggest market (by volume) for plug‐in vehicles, with 43,441 registered – a near three‐fold increase on the 14,805 recorded in 2014. Almost one in ten (9.7%) new cars registered last year was a plug‐in hybrid or electric vehicle. Booming Dutch demand pushed Norway into second place, with a total of 33,721 plug‐ins registered – a
70.6% increase on 2014. However, plug‐ins accounted for nearly a quarter (22.4%) of the 150,686 new cars registered in Norway last year – the highest share of any European country. Also noteworthy was the UK market, where plug‐in registrations almost doubled (+96.6%) to 28,636 units, with the Mitsubishi Outlander PHEV accounting for 11,786 of those. Plug‐in hybrids are increasingly the favoured technology, with figures from the UK’s Society of Motor Manufacturers and Traders showing electric cars were 35.2% of the country’s total plug‐in market in 2015, compared to 47.1% in 2015. ACEA’s data groups full hybrid and mild‐hybrid vehicles into a single category, which totalled 225,528 new cars last year (+20.6%). Including mild hybrid, full hybrid, plug‐in hybrid, range‐extended and full electric vehicles, the largest markets in Western Europe last year were France (78,897), the UK (72,775) and the Netherlands (59,555). In addition, 208,971 CNG and LPG vehicles were registered, most of which (183,433) were in Italy.
Mobile batteries could triple EV ranges this year
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German energy storage company has developed a range‐extender which could enable all electric vehicles to travel over 510km between stops, without using any fuel. The Nomad, developed by Nomadic Power of Stuttgart, is a compact trailer with a rechargeable battery on board. Part funded by a €2m European Commission grant, the company is targeting series‐readiness by the end of the year. For production models with capacities of between 40kWh (25% bigger than the latest Nissan LEAF) and 85kWh (the same as a Tesla Model S), the idea is that electric vehicle owners simply hitch the Nomad to their car for longer jour‐
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neys, adding up to 430km of range when needed. Nomadic Power is looking to offer them to buy or to rent, the latter enabling drivers to pick up a fully charged Nomad at the start of their journey and drop it off when they’re close to their destination. Rental stations would be established along major routes, hitching takes around two minutes, and it’s claimed that this would remove the need to install rapid chargers along major routes. For owners, having a Nomad at home or their place of business would mean renewable energy could be stored ready for use later, and depleted units could be left at rental stations to be recharged while they complete their journey.
For the latest EV news, visit evfleetworld.com
Audi reorganises production network to pave way for electric SUV
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udi is to dedicate its factory in Belgium to production of its forth‐ coming long‐range electric SUV, aiming to create a shared centre for electric mobility within the Volkswagen Group. Previewed as the e‐tron quattro concept and likely to be named Q6, the SUV will launch in 2018 with a high‐performance electric drivetrain offering a 300‐mile range, capable of recharging to 80% in half an hour. In the meantime, the site in Brussels will be redeveloped to make room for production, including a facility for manufacturing high‐voltage batteries for the Group’s electric vehicles, 20 of which are due to launch by the end of the decade. Korean firm LG Chem has the current contract to supply battery packs. As a result, production of the A1 will move to the SEAT plant in Martorell, Spain. In turn, the Q3 crossover, which is currently made in Martorell, will move to Győr in Hungary alongside the A3 saloon and cabriolet and both versions of the TT.
GM to launch 300-mile Ampera-e EV in Europe
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eneral Motors will introduce a Euro‐ pean version of the Chevrolet Bolt electric car under its Opel brand next year, badged as the Ampera‐e. It’s likely the drive‐ train will be largely unchanged from its US counterpart, producing 200hp and featuring a 60kWh battery – twice the capacity of the new Nissan LEAF. On the EPA test cycle, the Bolt has a range of over 320km, this could be closer to 500km on the New European Drive Cycle. Opel has yet to confirm pricing, or whether it will be sold as a Vaux‐ hall in the UK. But expect equipment to include the same 7.2kWh AC on‐board charger as the Bolt, with DC rapid charging to 80% capacity in around an hour due to the large battery. Unlike the slow‐selling Ampera introduced in 2012, the Ampera‐e is fully electric, with no petrol ‘range‐extender’ engine.
EV in numbers
50,000
in brief Smallest Tesla to be unveiled on March 31 Tesla’s compact‐executive Model 3 electric car will be unveiled on March 31, ahead of production and deliveries late next year. Competing with models including the BMW 3 Series, it puts the manufacturer into a much higher‐volume sector with prices likely to start at around €30‐35,000.
Ireland's €7m rapid charge project completed Irish utility company ESB has installed six rapid charging points on the route between Belfast and Dublin. The €7m project was completed with four manu‐ facturers and co‐funded by the EU’s Trans European Transport Network (TEN‐T) which aims to link major air and sea terminals across the region.
5,000 new charging points for Southern California The California Public Utilities Commis‐ sion has authorised two utility compa‐ nies to install 5,000 charging points in the south of the state. Charging will be incen‐ tivised at off‐peak times, when the grid is mostly running on renewable energy.
London-wide rapid charging network confirmed Chargemaster is planning a network of 200 rapid chargers at public car parks across London by the end of 2017. The units will be the manufacturer’s own UltraCharger, compatible with the three most common charging standards in the UK.
75%
Toyota and Lexus’ share of Europe’s hybrid market during 2015
Tesla electric cars delivered during 2015, not far behind Nissan at 55,000.
Source: Tesla Motors
Source: Toyota Europe
internationalfleetworld.com / 13
MOTOR SHOW Detroit
Detroit powers ahead High-powered models were back at the Detroit Show, reports John Kendall.
Audi h-tron concept Acura Precision Concept The Precision Concept points to a bolder, more distinctive future for Acura vehicle design, says the company. Precision shows a large, pillarless, four-door saloon from Honda’s premium division, developed by the Acura design studio in California. Features include ultra-thin ‘floating’ rear seats and a wide, curved centre display screen.
The Audi h-tron SUV concept is a hydrogen fuel cell powered car, driving front and rear electric motors. Hydrogen refuelling takes around four minutes according to Audi. Features include piloted parking and driving, which will feature on the 2017 A8. The system will be available for Stop/Start driving at speeds up to 60km/h and parking.
BMW X4 The M2’s 365hp twin-turbo engine will also power the X4 M40i, which also made its first appearance at the Detroit Show. The car features an electronically limited top speed of 255kph. The chassis gains M performance specifications as well as BMW ConnectedDrive and XDrive. Sales begin in the US in February.
BMW M2 The M2 made its world debut at Detroit, making the two-door coupe the new entry model for the BMW M-series. The accent is naturally on performance with the 3.0-litre, twin-turbo six-cylinder engine delivering 365hp, giving 0–100km/h in around 4.2 seconds. The M2 will be available in the US from April.
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Buick Avista concept Avista showcases a contemporary 2+2 pillarless coupe grand tourer design. Power comes from a twin-turbo V6 petrol engine with cylinder deactivation and Stop/Start, driving through an eight-speed automatic transmission. Touchscreen controls and a widescreen instrument display feature inside. Occupants benefit from advanced noise cancellation technology, ionic air purifiers and aromatherapy.
Chevrolet Bolt The Bolt EV has been designed to provide an estimated range of 320km. The motor can deliver up to 200hp, giving 0–100km/h in less than seven seconds, powered by a battery pack located under the floor of the cabin area. Both standard and rapid charging is fitted. Features include a new regenerative braking system.
Buick Envision Crossover Buick’s new Envision luxury compact crossover is due on sale in the US in Q2, standard equipment includes heated front and rear seats and steering wheel, eight-way power adjustable front seats, tri-zone climate control, Bose sound system and 19-inch alloy wheels. Power comes from a 252hp 2.0-litre turbo petrol engine with Stop/Start and six-speed automatic transmission.
Chevrolet Cruze hatchback Due on sale in autumn 2016, the Chevrolet Cruze hatchback shares many components with the new Cruze saloon, but offers up to 1,189 litres of boot space. Features shared with the Opel Astra include MyLink radio with Apple CarPlay and Android Auto, 4G WiFi hotspot, driver assist systems, heated steering wheel, heated front and rear seats and LED headlamps. A 1.4-litre turbo engine will be standard.
Chrysler Pacifica Chrysler’s latest Pacifica MPV will be available with both petrol and hybrid power and an integrated vacuum cleaner. Safety features include all round views from four cameras, parking assist, adaptive cruise control, Forward Collision Warning Plus and LaneSense Lane Departure Warning Plus. Pacifica will offer up to eight passenger seats.
internationalfleetworld.com / 15
MOTOR SHOW Detroit Genesis G90 Hyundai takes on the luxury sector with its Genesis brand’s G90, launched at Detroit. Included is Smart Sense, a suite of driver safety and assistance systems. Power comes from a 365hp twin-turbo 3.3-litre or 420hp 5.0-litre V8, both petrol and there’s a choice of rear or four-wheeldrive, with eight-speed automatic transmission.
2017 Ford Fusion The latest Fusion saloon adds more power choices and is the first car in North America with a pedestrian detection system, says Ford. New power options include a 325hp 2.7-litre Twin turbo V6 and Energi plug-in hybrid with 30km electric range that needs 2.5 hours to re-charge. Other features include hands free parallel and perpendicular parking.
GMC 2017 Acadia The latest Acadia crossover was launched at Detroit featuring front or four-wheel-drive, 194hp 2.5-litre or 310hp 3.6-litre V6, both with six-speed auto transmission. Seating is provided for five, six or seven passengers depending on model. The latest Acadia is 318kg lighter than its predecessor and goes on sale this spring.
Honda Ridgeline pickup The 2017 Ridgeline pickup was given its debut at Detroit. Developed and built in the US, the Ridgeline will go on sale in H1 2016. Power comes from a 3.5-litre V6 engine driving through a six-speed automatic transmission. Front and four-wheel-drive options will be available. A rear view camera will be standard.
Infiniti Q60 Infiniti’s Q60 sports coupe made its world premiere at Detroit, with features including a new 300hp or 400hp 3.0-litre V6 twin-turbo petrol engine, as well as a 2.0-litre 208hp option. A range of interior trim options includes aluminium and black wood. Other features include second-generation Direct Adaptive Steering with driver selectable modes. Due on sale late summer.
Kia Telluride SUV concept Could this be a future seven-seat SUV from Kia for North America? It features rear-hinged rear doors and seat sensors to monitor the wellbeing of front and second row occupants and can use light to treat jetlag. Plug-in hybrid power combines a 270hp 3.5-litre V6 and 130hp from an electric motor.
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Mercedes E-Class The 10th generation E-Class model features a range of new technologies including a 12.3-inch widescreen navigation display, touch-sensitive controls on the steering wheel, and a touchpad controller for the infotainment system. Fourcylinder petrol and diesel engines will be available from launch, with a plug-in hybrid to follow. Optional air suspension and new driver assistance systems also feature.
Lexus LC 500 Derived from the 2012 LF-LC concept, the Lexus LC 500 two-door, four-seat coupe made its debut at Detroit. It’s the first Lexus to use the company’s new premium rear-drive platform that will be the blueprint for future front engine/rear-drive models. Power comes from a 467hp 5.0litre V8 driving through a 10-speed automatic transmission.
Nissan iDS concept First seen at the Tokyo Show last year, the IDS concept is designed to demonstrate autonomous driving technology. The four-seat hatchback offers both manual and piloted driving modes and an interior layout to match each. In piloted mode the steering wheel moves to the centre and a large flat screen takes its place.
Volvo S90 Volvo’s flagship S90 saloon made its world debut at Detroit, following a year of rising sales in North America and the construction of the company’s first US plant. The S90 takes cues from the XC90 with the dashboard area. Intellisafe Assist is fitted as standard – aiding lane keeping at up to 130km/h. The T8 plug-in hybrid will be a power option.
VW Tiguan GTE Active Concept With diesel looking like a bad option for VW in the US, the Tiguan GTE Active Concept offers a four-wheel drive plug-in hybrid with 148hp petrol engine and up to 32km electric range. It’s based on the completely redeveloped second-generation Tiguan due for US launch in 2017 with a longer wheelbase and seven-seat option.
internationalfleetworld.com / 17
NEWS On Fleet
SEAT assists Italian Police with its enquiries SEAT has won a large fleet deal with the Italian police. John Kendall reports.
I
taly has no shortage of motor manu‐ facturers covering every type of car and commercial vehicle and it is no surprise that the overwhelming major‐ ity of vehicles operated by Italian companies, government agencies and the State are products from the Fiat Chrysler Group (FCA). So it was some‐ thing of a surprise last year when the Italian State Police force and its mili‐ tarised partner the Carabinieri announced that the two forces had signed a fleet deal with SEAT to supply both with Leon models. Of course SEAT began by manufacturing FIAT cars under licence so there are strong historical ties between Italy and the company, even though it is a wholly owned subsidiary of the Volkswagen Group today. Under the deal, SEAT will supply Leon 2.0 TDI 150hp models. Up to 4,000 vehi‐ cles could be supplied under the contract
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until 2018. Initially 925 orders were placed split almost equally between the police and Carabinieri. Apart from being unusual in not selecting an Italian car, the deal was the first time that both police forces had tendered and selected the same make and model. The deal was part of a growing trend of international fleet business from the Span‐ ish manufacturer, which saw business grow by 33% in 2014 alone to 68,900 vehi‐ cles, contributing significantly to SEAT’s overall growth that year. SEAT has also seen major fleet growth in France, Germany, Spain and the UK. Overall total SEAT sales grew by 2.8% in the European Union in 2015 to reach 327,930, contribut‐ ing to overall VW Group growth of 6.1%. The Italian Police Leons are not stan‐ dard models. Among the specified equip‐ ment is armour for the front end of the car, designed to give protection from small
arms fire. The cars are also equipped with special safety tyres, as well as the expected warning sirens and lights as well as radio and communications equip‐ ment. The cars are also equipped with weapons carriers. The back seat has also been designed around a secure prisoner cell, including a dividing partition between front and rear seats. Both forces carried out extensive testing of the Leon prototype police vehicles before placing the fleet order. The testing was designed to reflect the harsh operating conditions the cars are likely to face in day‐ to‐day use. Prototypes for the State police were codenamed “Panthers” and those for the Carabinieri, “Gazelles”. The armoured front doors were opened and closed 100,000 times to test their endurance. Then prototype models for both forces were driven continuously for 30,000km stopping only to change drivers and re‐fuel. Like all other Leons, the Italian police models are produced at SEAT’s factory in Martorell near Barcelona. From there the models are transported to Nuova Carrozzeria Torinese (NCT), based at Chivasso in Italy for further adaptation to police specification. NCT has carried out most of the conversion work for Italian police cars since 2003. The whole process is supported with expertise from SEAT and Volkswagen Group Italy.
FEATURE Alternative Fuels
Changing times for alternative fuels Alternative Fuel Vehicles are still struggling against mainstream petrol and diesel models. Dave Moss looks at why sales are slow.
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hether your fleet runs on petrol or diesel, or fuels such as Auto‐ gas/LPG or Compressed Natu‐ ral gas (CNG) which appeal because of lower pricing or accessible bulk fuel supplies, now is a very good time to review some new possibilities presented by today’s Alternative Fuel Vehicle (AFV) marketplace. Latest JATO Dynamics data covering 54 key global markets reveals declining LPG and CNG vehicle sales, despite shale gas production reducing costs and securing future fuel supplies in the big US market, and improving CNG and LPG availability in Europe. New figures from the Euro‐ pean Automobile Manufacturers’ Associ‐ ation ACEA confirm falling CNG sales in Italy, its strongest market. In the last quarter of 2015, Italian AFV sales fell over 23% compared to 2014, as gas‐fuelled
registrations – alone accounting for over 80% of this entire sector ‐ fell steeply. In the same period, across the EU, AFV regis‐ trations increased by over 20%, while gas‐fuelled car sales fell by almost 32% – part of an 8.4% sector decline across Europe since 2014. Familiar advantages of fossil‐based alternative fuels are under pressure from today’s hybrid and electric cars, which don’t need conversion, and may deliver comparable or lower running costs and emissions – plus taxation benefits and tempting driver incentives. Gas powered vehicle running costs now also face an unexpected challenge: “A significant portion of the natural gas cost advantage has faded in the past 12 months with collapsing world oil prices,” says Sam Abuelsamid, a senior analyst with Navi‐ gant Research. “Various regional factors
also affect NGV markets, including polit‐ ical tensions, refuelling infrastructure availability, tightening emissions requirements, and total cost of owner‐ ship.” JATO 2015 figures show NGV‐ equipped cars accounted for just 0.15% of the global market, but despite the pressures Navigant Research expects global NGV sales to grow to 3.9 million units annually by 2025. The world’s new car marketplace is ever changing, bringing surprises every year. An analysis of those 54 markets by JATO reveals diesel engines are becoming less popular, taking a 22% share of 2008 sales, reducing to 19.6% in 2015 – while gasoline cars increased their share, from 71% to 73%. But early in 2016, there’s hardly a sign of an alternative fuel revolu‐ tion driven by fleet or private buyers deserting conventional fuels for big AFV
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FEATURE Alternative Fuels
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advantages. JATO’s data shows all hybrid and electric vehicles combined took just 0.9% of key global market sales in 2008, peaking at 2.47% in 2013 – but falling to a 2.39% share in 2015. European buyers are ignoring that trend – 23% of Europe’s new car sales involved an EV or hybrid last year – up from 17% in 2014. There’s also strong sector growth in China and India, where 30% of today’s gasoline powered cars are currently sold, but conditions in recent years have put off AFV buyers in both North America and the Asia Pacific region. Its still early days for Plug‐in Hybrids (PHEV) and Pure electric vehicles gener‐ ally – but worldwide impact has been modest so far. The Nissan LEAF, which kick‐started EV sales in 2010, has sold over 201,000 units, and Nissan’s partner, Renault, another 83,000. But, around the world in 2015 – despite 48% growth – total pure EV sales were just 242,000 units. EV and PHEV sales are accelerating in North America and Europe, while market share in the vast Chinese and Indian markets, grew from 0.9% in 2014, to 0.21% in 2015. Ben Scott, senior analyst with IHS Auto‐ motive believes cost and inconvenience are holding back electric vehicle sales ‐ and government support must continue. “Currently EV prices are higher than conventional cars in the same segment,” he says. “There are pay‐offs over time, and total cost of ownership can be less with low fuel costs against petrol or diesel – but these benefits are less obvious with low oil prices. I believe it critical that incentives remain.” Meanwhile, high list prices and range anxiety remain top topics for EV drivers – despite more charging stations appearing. Here, Ben Scott feels drivers have some responsibility – but the cars must also improve: “There’s still a lack of education around charging – and failure to change refuelling habits is slowing the market. EV’s with longer range will help: operators and drivers don’t want to pay extra – and then be inconvenienced by a vehicle with less range.” Looking ahead, IHS Automotive expects the worldwide market share for alterna‐ tive fuel vehicles to grow from around 2% now to 7% by 2021. However, it also fore‐ casts most vehicles will continue to use petrol or diesel engines, with pure EV’s taking just 1% of the market by then.
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Meanwhile, Felipe Munoz, global automo‐ tive analyst at JATO Dynamics, believes prices and incentives remain the key to more EV sales. “The future will depend a lot on how governments deal with incen‐ tive programmes,” he says, “though lower development costs could drive growth through lower list prices. But there are still problems with battery range, and model choice, especially EV SUVs, with few such models available globally.” So far, high prices for low‐emitting AFV models have made Government and local incentives vital to drive sales – though country by country they vary considerably. City authorities seeking reduced conges‐ tion and improved air quality are intro‐ ducing urban congestion charging and low emissions zones – with incentives or exemptions for specific low‐emitting vehi‐ cles. Business and fleet users have recog‐ nised the opportunities presented by such policies, with taxi, private hire, delivery operators and others lowering costs by moving from diesel into modern AFVs or full electric vehicles. Norway’s benefits package began in 1990: its generosity has seen the EV market share rise beyond 20% – with a majority of cars going to company drivers. Netherlands’ EV share is over 5%, while Britain’s programme, begun in 2010, resulted in more low emit‐ ting vehicle sales in 2015 than in the last five years combined. This situation is changing. Experts at PWC Autofacts anticipate falling govern‐ ment subsidies will slow ‘plug in’ sales during 2016. The UK has recently cut headline grants by 50%, and AFV company car tax will climb from 7% to 14% in The Netherlands. Norway also plans reduced support from 2018. Resid‐ ual values could benefit, but with AFV and pure EV sales still modest overall, upward price pressures while oil prices are low cannot help. JATO’s Felipe Munoz points out: “In the US – the world’s second largest market – recent numbers show big SUV and truck sales partly boosted by lower fuel prices. Last year, for the first time, SUVs were the best selling segment in Europe – just as oil prices hit their low point. If this trend continues, it’ll be more difficult for elec‐ tric SUVs to gain market share.” But all AFV sales could benefit if diesel use declines in future, according to Eric Tanguy, an auto analyst with Standard
“Last year, for the first time, SUVs were the best selling segment in Europe – just as oil prices hit their low point. If this trend continues, it’ll be more difficult for electric SUVs to gain market share.”
Emissions issues The VW scandal has affected the image of diesel vehicles, even those with adequate systems to deal with NOx emissions.
TAXI! FCEVs are the next logical step to complement PHEV hybrids.
PHEVs Still struggling to get a real foothold in global vehicle.
and Poor’s ratings agency. He feels Volk‐ swagen Group’s recent problems and tightening vehicle emissions policy targets could hit diesel sales: “Emissions issues are affecting the image of diesel vehicles, even those with adequate systems to deal with NOx emissions,” he says. “That equipment adds to vehicle costs. Carmakers won’t be able to install it on smaller cars and still keep diesel prices competitive. If diesel starts falling from favour in Europe, low emission hybrid and electric alternatives may receive a boost – because carmakers have until now needed diesel fuel effi‐ ciency benefits to meet increasingly tough CO2 emissions standards. If diesel share falls, AFVs will be needed instead to improve fleet average CO2 figures to meet those regulatory demands.”
For operators frustrated by current EV limitations and unconvinced by the complex technology in PHEVs and range‐ extender hybrids, hydrogen powered fuel cell electric vehicles (FCEV) might seem the answer. Toyota and Hyundai already offer limited numbers in the US, Japan and some key European countries, Honda will follow them this year, and Nissan plans to add fuel cell vehicles to its EV range from 2017. “Fuel cell electric vehicles are the obvi‐ ous next step to complement today’s battery electric vehicles as our industry embraces more sustainable transporta‐ tion,” says Mitsuhiko Yamashita, research and development director and executive vice president of Nissan Motor Company. “We look forward to a future where we can answer many customer needs by
adding them to the battery EVs in our zero‐emission lineup.” FCEVs have a window to become established as long term players in zero carbon mobility, according to IHS Auto‐ motive’s Ben Scott, but he also sees advantages and disadvantages: “Right now driving range and refuelling time are similar to conventional cars... but battery cost and technology improves every year,” he says. “With time, batteries will progress until FCEV advantages fall away, leaving them unable to compete on cost or practicality. If they aren’t well estab‐ lished in the market by then, they could be left in niche applications.” IHS analysts currently forecast slow future FCEV growth, with only 150,000 such cars on the road by 2025, serviced by just 2,000 fuelling stations globally.
Best-seller, but still some way to go Nissan’s LEAF kickstarted EV sales in 2010 and was part of global EV sales of 242,000 units in 2015.
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FEATURE Fuel Management
Fuelling alternative mobility Diesel retains its appeal for fleets, but alternatives are playing a part and not just by choosing a different power source, reports Steve Banner.
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espite Volkswagen’s well‐publi‐ cised emissions problems, concerns over oxides of nitrogen (NOx) and particulate matter (PM) output and the hostility of some big‐city politi‐ cians, diesel is a long way from being dead, so far as fleet managers are concerned. So says Saskia Harreman (left), director of interna‐ tional consultancy serv‐ ices at LeasePlan. “They are asking us a lot more questions about diesel however and what the implications of some of these developments are,” she says. “They are also monitoring fuel usage more tightly and are looking particularly closely at the CO2 and MPG figures quoted by car manufacturers compared with what their drivers are actually achieving.” “So‐called ‘dieselgate’ has not resulted in a major change in acquisition behav‐ iour among fleet managers so far as diesel cars are concerned,” says Alphabet chief commercial officer, Uwe Hildinger (left). “There’s been a small reaction but nothing significant and this may be attributed to a variety of reasons. “So far as orders and remarketing are concerned we do not see any notable short‐term changes. We thought there would be larger ones.” “The Volkswagen scandal has undoubt‐ edly had an impact on consumer confi‐ dence and we’ve seen some of our larger customers become more open to consid‐ ering petrol,” says Suzanne Phillips,
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national fleet consultant at Hitachi Capi‐ tal Vehicle Solutions. This new mood of openness has coincided with technologi‐ cal improvements that have helped propel petrol engines back into contention, at least so far as smaller cars are concerned. “It always comes down to cost however and in a lot of circumstances diesels are still more frugal than petrol vehicles,” she says.
Diesel: taxes and fuel efficiency “We see no signs of a potential short‐term impact,” says Arval director of consulting and corporate vehicle observatory, Alessandro Pigazzi. “Taxation changes may have a medium‐term impact however and diesel could become a less and less attractive option for commuters into city centres and low mileage drivers especially when one considers changes to the local regulatory system by large municipalities.” He is referring to increasing interest among urban councils in the imposition of restrictions on the use of diesel vehi‐ cles in cities amid health concerns surrounding the impact of NOx and particulate emissions. On the other hand modern diesel engines are astonishingly efficient, a factor which has to be weighed in the balance even in a climate of falling pump prices. “Fuel consumption still remains a key factor and a key element when it comes to total cost of ownership and is of course directly connected to CO2 emissions,” Pigazzi observes. “So diesels remain a valid option for the majority of vehicles in a typical corporate fleet.” There is no evidence of a wholesale switch among fleets away from diesel and
in favour of the new generation of small, highly efficient, petrol engines although there is interest in them, Harreman says. “However even these engines tend to use more fuel than diesels and their CO2 output remains higher,” she points out. “A lot of the new petrol engines are getting close to diesels so far as fuel usage is concerned and we’re seeing a move towards petrol in the order mix but there is still a difference between them,” says ALD International chief executive officer, Mike Masterson. Where MPG is concerned, the advantage still rests with diesel. Attitudes towards diesel differ from country to country however, with much depending on local taxation policy. LeasePlan’s recent CarCost Index shows that the bill for running a diesel car differs substantially between one Euro‐ pean market and another, with Germany and the Czech Republic coming out particularly well. “We carried out a study centred around a mid‐sized car popular with fleets and available with both petrol and diesel engines,” Harreman says. “In Belgium and France the diesel model was the cheaper of the two to operate but in the Netherlands and the UK it was the petrol version that was cheaper.” Belgium is increasing the tax on diesel however and reducing it on petrol she points out, which means the equation may alter again. “Given the pace at which things are changing it may now make sense for fleets to review their policies more frequently than they used to,” she suggests. “Maybe they should look at things once every six months.”
Downsized petrol engine, plug-in hybrid? Downsized petrol engines have a role to play says Pigazzi, but in small cars driven by low‐mileage users, covering less than 25,000kms annually. “The appeal of diesel is disappearing so far as this segment of the market is concerned although it should be noted that A‐ and B‐segment cars represent less than 20% of corporate fleets on average,” he comments. Plug‐in hybrids have a part to play too he believes, but the role they can play is subject to a variety of considerations. “It depends on the tax environment, including any incentives that may be
Small is beautiful The trend for downsizing petrol engines is putting further pressure on diesel.
available, and on usage,” he says. “Plug‐in hybrids can certainly make sense for daily urban commuters driving less than 40km a day and with access to re‐charg‐ ing facilities.” Plug‐in hybrids still have a place in the fleet mix Harreman believes – their CO2 figures are better than diesel and much better than petrol – and have been well received in the Netherlands, Norway, France and the UK. “Their monthly cost tends to be higher than that of equivalent petrol and diesel models but they are often chosen for envi‐ ronmental rather than cost reasons,” she says. “Remember too that they may be
attractive to company car drivers from the Benefit‐in‐Kind viewpoint. “That is certainly the case in the Netherlands for instance where hybrids, electric cars and ordinary cars with a CO2 figure of less than 50g/km offer a BiK advantage.”
Usage patterns for e-mobility “The trouble with hybrids though is that they are not always used in the right way,” she continues. “They may be used for long‐distance journeys rather than in city centres and their drivers may not always remember to switch to eco mode.” Alphabet is firmly committed to elec‐ tric vehicles says Hildinger and not just because they are zero‐emission. “They are still cheaper to power than either diesel or petrol cars and in our view the question is not if they will become a big part of the fleet mix, but when. The role they play has to be consid‐ ered carefully however. “If drivers are high‐mileage users then they will not be suitable but they may have a role to play so far as low‐mileage users are concerned,” he says.
“The trouble with hybrids is that they are not always used in the right way.” Saskia Harreman, director of international consultancy services at LeasePlan
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How do you determine the crossover point? “We’ve developed an e-mobility feasibility calculator that will give you the answer,” Hildinger replies. There are of course practical considerations when it comes to living with an electric car or a plug-in hybrid. “If you don’t have a garage at home and live in a flat then there is always the question of where you plug it in,” he says. “There is the question of whether you can plug it in at work too. “These are the barriers that have to be overcome and I think it is time for some joined-up thinking across Europe so far as the provision of re-charging infrastructure is concerned.” “I don’t think lower fuel prices will damage electric vehicles or plug-in hybrids but there is still an issue over the total cost of ownership, which remains relatively high,” Masterson observes.
Mobility packages The collapse in the price of a barrel of oil is not resulting in a drift away from mobility packages that include public transport, bicycles and car-sharing says Harreman; far from it. Younger workers are particularly interested in such schemes she says and may not be wedded to the classic company car. Minimising fuel usage Tesla’s Model S provides an option for fleets looking to streamline their mobility packages.
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“I think that such packages have a healthy future but a lot depends on how they are treated from the taxation viewpoint and whether or not a company car is going to be more tax-efficient,” she says. “There is also the question of infrastructure to bear in mind.” Harreman goes on to point out a major and sometimes overlooked reason why mobility programmes can win out over the traditional fleet car. Parking. Drive into the middle of any major city and you have got to find somewhere to leave your vehicle. If you do find somewhere, you can guarantee it is going to be expensive unless you are driving an electric/plug-in hybrid vehicle that attracts parking concessions. You will not incur those costs if you travel in by bus. If there is an efficient public transport system in place along with plenty of cycle lanes, then a mobility package will work. If such facilities are not available however then it will struggle. “We see an increase in the demand for such mobility solutions and the need to put dedicated platforms in place that will manage them and ensure budgets are kept under proper control,” says Pigazzi. “Demand is however developing mainly in northern Europe.” Relying on a mobility package can be a lot less hassle than relying on a car if the infrastructure is in place, says Twan van den Elsen, manager of international fleet
“It’s not just about the price of fuel, it’s about minimising CO2 emissions and ensuring a sustainable future.” Twan van den Elsen, manager of international fleet mobility products at Alphabet.
mobility products at Alphabet. “If you’re on a train then you can work while you are moving,” he points out. He believes there are circumstances under which the advantages can outweigh the drawbacks even when fuel prices are low. “It’s not just about price,” he points out. “It’s about minimising CO2 emissions and ensuring a sustainable future.”
Journey planning Even if fleets do not go for such a package then they can at least hold fuel costs down by planning trips so that two people go in one car rather than drive to the same destination separately. “What you’re doing is planning your activities in an efficient way,” he says. “What we’re probably looking at for the moment are car-plus-mobility packages,” says Masterson. In other words, there are people who still want a company car, but need a cost-effective mobility solution for situations where using a car simply is not viable. “To be honest though the take-up of these packages remains relatively light,” he observes. Even in California, in San Francisco and Silicon Valley, where such schemes might be thought to have an appeal, there is no indication that employees are relinquishing their cars; although they may of course decide to opt for a Tesla.
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INTERVIEW Lars Lagström, Volvo
Volvo’s alternative fuel future Hybrids, with longer range and a pure electric XC90 will join the Volvo range in time. The XC90 T8 is just the beginning, says John Kendall.
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olvo might have more experience with different hybrid types than any other manu‐ facturer, having offered both diesel and petrol hybrids for some time. The XC90 T8 Twin Engine Hybrid is not the first plug‐in hybrid from Volvo, the V60 D6 AWD has that distinction, but the petrol/electric variant is the first hybrid to carry the T8 badging. It won’t be the last. T8 will become the flagship model in each new Volvo range. Senior project manager for the XC90 Lars Lagström says that the petrol engine/electric motor combination was chosen because it can be sold in all global markets where Volvo is represented. Diesel may have been dealt a mortal blow for cars in the US following the VW emissions story from last year but a petrol hybrid will be as acceptable in the US as it is anywhere else. Not surprisingly he expects the XC90 T8 to do well in markets where low CO2 emissions are encouraged by tax benefits and where govern‐ ments offer incentives for hybrid and electric models. “It’s for people who would like to have a fast car, a roomy car, it’s a full seven‐seater and also for
XC90 T8 Volvo’s twin-engined flagship hybrid
Renegade kick-started Jeep in Europe but more is to come
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those who would like the tax benefits”, he says. Those tax benefits have already helped sales in some parts of Europe, “We can see that in the Netherlands. We delivered 1,600 cars before the end of 2015 because they then changed their rules,” says Lagström, “We were the biggest hybrid car manufacturer in the Netherlands due to the tax incentives they had there.” Under current European testing, hybrids return some spectacularly good CO2 emissions and fuel consumption figures and the XC90 T8 is no excep‐ tion with 49g/km and 2.1l/100km on the combined test cycle. Hybrid testing will change when a new emissions test cycle is introduced, but that is still some years away. “The new test cycle will correspond more to the American way, because it will show the fuel efficiency that you could normally achieve by driving the car in a sensible way,” comments Lagström. “We at Volvo have foreseen that we cannot come that much further down in fuel efficiency with combustion engines, we need to add the electrification. This represents the future for reduced fuel consumption and then we need to improve the driving range on electricity and the efficiency of new battery cells. By fitting it in the same package that we have, we will get longer range and with that, reduced fuel consumption, although we know that the new test cycle will probably increase the figures on paper compared to today’s figures.” Volvo has already discussed a battery electric XC90 and the target is that in 2019 there will be an electrical version that can cover 500km before needing a recharge. Looking to the next emissions limits for Europe – Euro 6c, due in September 2017, Lagström believes that Volvo will have to make changes for diesel engines. “It will need selective catalytic reduction. There are no other known technologies today to do it.” Volvo, like every other car manu‐ facturer, will therefore need the AdBlue additive to help reduce emissions of nitrogen oxides further from its diesel models.
“We at Volvo have foreseen that we cannot come that much further down in fuel efficiency with combustion engines, we need to add the electrification.�
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FLEET FOCUS Poland
Land of fleet opportunity? Poland's new car market is historically small, but could leasing gain a greater share? John Kendall reports.
Opel Astra
Opel began production of the fifth generation Astra in Poland in 2015. 28 / internationalfleetworld.com
A
fter reading the UK Institute of Advanced Motorists (IAM) guide to driving in Poland on p31, you might be thinking that the roads are poor, the country is a risky place to drive and that your car would be vulnerable to theft. Some of these points are made by others too. Paul Gogolin‐ ski, CEO of Total Fleet Solutions Poland spoke at a conference of the International Auto Finance Network in London last year and noted that more development of the road network is needed and road safety is a particular issue. He also suggested that demand for ex‐lease vehicles has opened up a need for remarketing channels for leasing companies. At the same time he noted that ‘clocking’ – winding back mileage readings to enhance resale values and also advertising damaged vehicles as undamaged have been problems among non‐franchised dealers. None of these problems are unique to Poland of course, but in automotive terms, the country is less developed than others in the European Union, which Poland joined in 2004. SLOW PROGRESS OF NEW CAR MARKET According to data from ACEA, the 2015 car market in Poland rose 8.3% to 354,975. This made it the eighth largest new car market in the EU last year. According to the UK Financial Times Poland has been the fastest growing market for cars in the EU since 2007 and is one of the few EU car markets that is larger than before the financial crisis. Even so, the FT points out that new car sales reached 600,000 in 2000 and that opening up the country to the EU used market has been a factor in the decline of new car sales. Marek Małachowski is general manager of ALD Automotive Poland and adds, “In total there were only 9.2 new cars registered per 1,000 inhabitants, which is three times less than the European average, 66% of which are acquired by companies. It’s an open secret that an important number of cars first registered in Poland are re‐exported to other countries.” Data from the Polish Leasing Association (PLA) shows that at the end of Q3 2015, the vehicle sector made up the largest part of the Polish leasing market. Cars and light CVs accounted for 36.7% of the Polish leasing market and heavy transport for a further 26.5%, while the total Polish leasing sector grew 15.7% year‐on‐year at the end of Q3 2015. Up to the end of Q3 2015 the PLA reckons that new leasing volumes were worth €8.11bn (35.9bn zloty (PLN)).
THRIVING MANUFACTURING INDUSTRY Back in 2004, Poland was one of the major car producing nations in the EU, but has since been overtaken by the Czech Republic and Slovakia. Fiat, Opel and VW produce cars in the country, while Volvo Bus and MAN both have bus plants there. MAN also builds heavy trucks in Poland. The new Volkswa‐ gen Crafter will be built in the country with production sched‐ uled to start later this year. The plant has a capacity of 100,000 vehicles a year. Opel began production of the fifth generation Astra in Poland in 2015 and has also installed a new diesel engine production line at its Tychy plant. In addition, Poland is host to a thriving manufacturing sector for automotive parts, with many of the leading global suppliers represented in the country. CAR FLEET MANAGEMENT The Polish Vehicle Rental and Leasing Association (PVRLA) includes prominent members from the vehicle leasing and rental sectors. It released its most recent business informa‐ tion at the end of Q3 2015. Then the organisation reported that car fleet management had grown by 14% YoY and that 21.2% of new cars purchased by companies at Polish dealer‐ ships were covered by car fleet management (CFM) services. PVRLA data also suggested that the number of cars used under long‐term rental contract in Poland during Q1, Q2 and Q3 2015 was 71% higher than in the same period in 2014. Putting that into figures, the market for that period grew by 7,420 cars in 2014 compared with 12,697 in 2015. The PVRLA says it represents around 80% of companies in the Polish vehicle rental and leasing market and says that at the end of September 2015, 17,054 more cars were in use under long‐term contracts than at the end of September 2014, bringing the total number of cars under long‐term contracts to 138,573. Alphabet reports that this figure grew to almost 150,000 cars by the end of 2015. There is still plenty of room for growth, reckons Alphabet, “The estimated market capacity is 500,000 cars and it depends mostly on market information and savings on leasing for companies.” Alphabet quotes growth in the CFM sector at 16.6% during 2015, the highest for seven years. PVRLA provides an analysis of Q3 2015, using figures from Polish motor trade organisation IBRM Samar. Over 55,500 new cars were sold to companies in Poland in Q3 2015. PVRLA reck‐
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FLEET FOCUS Poland
Skoda Octavia
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ons that 11,800 of these were rented under car fleet manage‐ ment arrangements, the equivalent of 21.2% of total company sales. PVRLA also notes that during Q3, companies bought around 70% of the new cars sold in Poland. PVRLA says that full service leasing (FSL) is the most popular car fleet management service in Poland. Of the 138,573 cars operated by CFM companies belonging to PVRLA members at the end of September 2015, 103,137 or 74.4% of them were under full service leasing. Alphabet Poland reports FSL sector growth of 10.2% in 2015, equat‐ ing to almost 10,000 more cars. “Long‐term lease has become the preferred form of financing company cars for up to one‐third of companies which lease vehicles”, says Alpha‐ bet. The company attributes much of the growth to new business in the small and medium enterprise (SME) sector. “The number of micro, small and medium‐sized companies in Poland opting for long‐term rental cars is expected to increase further, affecting the continued high growth of the industry.” At the end of Q3 2015, the largest PVRLA members offer‐ ing FSL were; LeasePlan Fleet Management Polska (22,103 cars), Arval Polska (16,019 cars), Alphabet Polska Fleet Management (12,706 cars), Carefleet (10,661 cars) and ALD Automotive Polska (9,999 cars). FLEET CAR PREFERENCES Fleet Management, where the organisation outsources the management of its fleet to an external service provider is the second most popular service. This accounted for 19,233 of the cars included in the total PVRLA fleet at the end of Q3 2015. This represented 13.9% of the cars. The third largest sector was for contracts covered by leas‐ ing and service arrangements. This is not so comprehensive as full service leasing, but similarly involves external fleet financing, but a smaller range of administrative and car main‐ tenance services. 16,203 of the cars or 11.7% of the total fell into this category. The PVRLA reported that the most popular cars under CFM contracts in Poland in late 2015 were the Skoda Octavia, Ford Focus, Skoda Fabia, Toyota Yaris and Opel Astra. “The typi‐ cal fleet car in Poland is still a C‐segment station wagon powered by a
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Ford Focus
diesel engine,” reports ALD’s Marek Małachowski (pictured below left). “However, hatchback and sedan are also popular. Premium brands and SUV are rather limited as they are driven only by executives.” Alphabet reports a very similar situation, “The most popular types of cars are combi and saloon. Surveys show that the most wanted types of cars are generally SUVs and crossovers. “The reason they don’t dominate in the fleet sector is their (typically) higher price and corporate car policies, which often prohibit those types of cars or restrict them for management only.” ENVIRONMENTAL POLICIES AND TAXATION Around 71.3% of vehicles are diesel powered and some 28.5% fuelled with petrol. The market for hybrid and elec‐ tric cars is still small, at around 0.2% of the market, but is growing steadily reports the PVRLA. Marek Małachowski of ALD says there is, “A total absence of any pro‐environmental policies of the authorities: there are neither taxes nor tax incentives based on emissions. As consequence the cars powered by alternative energies are almost absent in sales figures, diesel is still the king.” Drivers of company cars are only taxed on private use and new regulations were introduced in 2015, as Alphabet explains, “For the private use of company cars with an engine capacity of less than 1600 cm3 the tax is set at 250 PLN (approx. €60) per month, for cars with power units above this capacity it is set at 400 PLN (approx. €100) per month. The change here as compared to the previous system is that with the new system calculating value of this fringe benefit is straightforward. A lump‐sum rule is applied, instead of market valuation.” ALD’s Małachowski focuses on the taxation of vehicles, “It is probably surprising for most readers, but in Poland there are no specific taxes for fleet/business vehicles. On the contrary, for those vehicles the VAT on purchase, mainte‐ nance and fuel is deductible fully (for LCV) or partially – 50% for passenger cars. There is a tax benefit for fleet vehicles vs. private vehicles.” The PVRLA established a separate Rent a Car Companies Group in May 2015 and members now include Avis, Budget, Express, Hertz, Panek, Sixt and 99rent. In total, these compa‐ nies had some 11,243 cars on their fleets at the end of Q3 2015. PVRLA has 21 member companies in total.
IAM REPORT Poland
Driving in Poland Tips on driving in Poland for those on business from the Institute of Advanced Motorists (IAM).
I
f you drive on business in Poland you will need to keep your wits about you and be alert at all times, as the coun‐ try has a comparatively high rate of fatalities on the roads, per head of population – around 14.3 per 100,000 compared to only 5.5 per 100,000 of in the UK, for example. In addition roads in Poland are generally of poor quality, the skill level of many Polish drivers is low and the level of car thefts alarmingly high. A standard EU driving licence will enable you to drive in Poland; otherwise you will also need an International Driv‐ ing Licence. Like all other mainland European countries, driving is on the right‐hand‐side and overtaking on the left. Similarly, it is illegal to use your mobile phone whilst driving in Poland, unless you’re using a hands‐free kit. There are rules regarding horn use in Poland and it is mostly illegal to use one. If you have to give a warning to another driver, you should usually flash your headlights to make them aware of your actions. You can use your horn in poor visibility to make others aware of your presence, but for no other reason. As a visitor to Poland you must keep your registration papers, insurance documents and driving licence safe. The high number of car thefts means it is not advisable to leave your valuable paperwork in the car, so keep it with you. The Polish police rigorously enforce the speed limits – even though local drivers pay seemingly little attention. Fines are commonplace and the punishment more severe if you are
caught speeding to a significant degree. In general the speed limits are as follows: expressways – 110km/h or 130km/h dependent on area; outside built‐up areas – 90km/h; built‐up areas – 50km/h or 60km/h dependent on area. The Polish police adopt a zero‐tolerance approach to driv‐ ing under the influence of alcohol. Even one unit of alcohol in your bloodstream carries the risk of a charge of drink‐driving. Despite strict road rules, local drivers don’t always follow them. Roads are often poorly maintained, with junctions and cross‐ roads often not marked with stop lines. Roundabouts can be difficult to spot, as they’re not often round, so many drivers just continue through regardless. There are other assorted quirks of driving in Poland. For instance, you should be aware of people overtaking in the face of oncoming traffic. It is also not uncommon for people to jump red lights. Many drivers in Poland only stop at a red light if there’s another vehicle obstructing its path. Don’t assume that drivers will stop at a zebra crossing. Unless there is someone already in the middle of the crossing, many drivers in Poland will choose not to stop at all. Driving too close to the car in front is also very common, so keep a safe distance between yourself and other drivers. You may pass trams on the right, but if one has stopped and passengers are disembarking you must yield to them. You should also watch out for horse‐drawn vehicles, especially during the harvest months. As traffic signals are often ignored and drivers do not always signal before making a manoeuvre, being able to read the body language of other drivers could stand you in good stead. Finally, keeping your headlights on all day is encouraged.
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PROFILE Skoda
Evolving vision A full Fabia range, the launch of new Superb and engine updates for popular models helped spur Skoda to record sales success in 2015. Attention now turns to the launch of a large SUV next year, signalling the brand’s new focus on growing market share in this competitive, fast-growing segment‌
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Manufacturer Skoda Total sales 2015 1,055,500 Headquarters Mladá Boleslav, Czech Republic Global market share 1.5% No. of models 7
New Superb delivers a sales boost
S
koda Auto broke its sales record for the second year running in 2015, with global deliveries up 1.8% to 1,055,500. The brand’s involvement in the Volkswagen emissions scandal at the end of last year has been felt less keenly than other members of the Group. Octavia was the brand’s best selling model of 2015, with 432,000 sold. Rapid took second place with 194,300; and Fabia followed close behind at 192,400 units. New Fabia Combi arrived in dealerships in January last year, followed closely by the world premiere of new Superb. The brand’s new fleet‐friendly flagship model has been available since June, and contributed significantly to Skoda’s success in the second half of the year. Compared to 2014, deliveries of Superb rose 8% in West‐ ern Europe, 7% in Germany, and in the Czech Republic, Skoda delivered 43% more Superbs than in the previous year. In Western Europe, sales experienced a 4% uplift to 430,900 deliveries in 2015. In Germany – the brand’s second‐strongest global market – deliveries increased by 6% to 158,700 vehicles. Skoda also recorded strong growth in Italy (16,600 vehi‐ cles; up 17%), Portugal (3100 vehicles; up 31%), Spain (22,100 vehicles; up 24%), Sweden (15,100 vehicles; up 11%) and Ireland (7900 vehicles; up 25%). UK sales contracted marginally, however, down 1% to 74,693 units. Russia continued to prove a challenging environment for the industry last year, with Skoda recording a 42% drop to 55,000 units. The brand fared better in other Eastern European territories, with sales in Romania up 23%, Serbia up 14%, and Bulgaria up 28%. Czech buyers are historically loyal to Skoda, and in the home market sales increased by 21% in 2015, to 85,000 units. Double‐digit growth in the neighbouring country of Slovakia (up 11%) and Slovenia (up 14%), continued the positive trend. Over the next few years, Skoda’s production capacity of the East‐ Bohemian region is set to increase by up to 280,000 vehicles per year following investments in localised manufacturing facilities. Chinese customers had to wait until October for new Superb, four months after the European on‐sale date. Since the model’s launch in 2009, 218,000 Superbs have been delivered to customers in China from the Shanghai Volk‐ swangen factory (SVW) in Nanjing. Other SVW locations, at which Skoda models are manufactured for the Chinese market, include those at Anting (Shanghai), Yizheng and Ningbo. SVW has been a close business partner to the brand since Skoda entered the market in 2007, and has sold over 1.5 million vehicles in China to‐date. Even with the late entry of Superb, Chinese sales remained stable in 2015, with total deliveries in Skoda’s strongest global market rising 0.1% to 281,700 vehicles. Skoda also performed well in other global territories, with the brand recording a significant uplift in Turkey (22,200 vehicles; up 58%) and Israel (17,800 vehicles; up 17%). Skoda India delivered 15,800 vehicles in 2015, a 2% sales increase.
SKODA Global sales, by territory Territory Western Europe Eastern Europe Central Europe China Other markets Total
2014 413,000 34,700 149,900 281,400 158,200 1,037,200
2015 430,900 32,700 172,100 281,700 138,100 1,055,500
% change +4.3% -5.9% +14.8% +0.1% -13.6% +1.8%
Focus on in-car connectivity Skoda has invested heavily in the development of a suite of in‐car networking and vehicle monitoring apps, with Fabia, Octavia, Rapid, Rapid Spaceback, Yeti and Superb currently supporting the technology. SmartLink and SmartGate functions bridge the connection between car and smartphone or tablet; SmartLink gives access to apps on the car’s infotainment screen, while SmartGate units are fitted to give access to vehicle data. Using these functions and associ‐ ated apps, a connected smartphone or tablet can retrieve a range of useful information including fuel economy, driving style and servicing intervals. SmartGate can specify around 40 different parameters on the vehicle, and data is transferred wirelessly to Android, iOS (Apple) and Windows devices. For security reasons, users are advised to change the corresponding security pass‐ word after the SmartGate function is first activated. Values such as average speed and fuel costs are displayed on the Skoda Drive App to help with budgeting, and journey lists are saved on the Skoda Driver Portal for easy perusal. The Service App is also available, offering assistance in emergency situations. Functioning as a kind of mobile assistant, the application provides information on the vehi‐ cle’s location when needed. The G‐Meter App analyses driving behaviour by recording g‐force, acceleration, speed, engine revs, brake force, gearshifts and accelera‐ tor pedal pressure. The application warns the driver when a predeter‐ mined value is exceeded and gener‐ ates reports, offering driver training assistance. All apps are available to download free‐of‐charge from the Apple Store, Google Play and Windows Store, and the full suite will be available in the forthcoming large SUV.
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PROFILE Skoda
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Where are they made?
Manufacturing plant locations
FIN fleet in numbers
25%
Percentage of estate cars that are Skoda Octavias in the UK fleet market, according to SMMT figures.
88g/km CO2 emissions of Skoda’s most efficient Fabia 1.4 TDI.
18m
The number of cars Skoda has manufactured since 1905. The 18 millionth car rolled off production lines in January 2016, and was a Superb.
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1
Asia Skoda Auto India Co. Ltd., Aurangabad, India – Octavia, Superb, Yeti.
2
Volkswagen India Co. Ltd., Pune, India – Rapid.
3
Shanghai-Volkswagen Automotive Co. Ltd., Ningbo, China – Superb, Octavia.
4
Shanghai-Volkswagen Automotive Co. Ltd., Shanghai, China – Fabia, Octavia, Yeti.
5
Shanghai-Volkswagen Automotive Co. Ltd., Yizheng, China – Rapid.
6
Europe Volkswagen Slovakia a.s., Bratislava, Slovakia – Citigo.
7
OOO VW Group Russia, Kaluga, Russia – Rapid.
8
Skoda Auto Kvasiny, Kvasiny, Czech Republic – Yeti, Superb.
9
Skoda Mladá Boleslav, Mladá Boleslav, Czech Republic – Fabia, Rapid, Octavia.
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7
4 5 3 1 2
VisionS spearheads SUV range
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oised to debut at the Geneva Motor Show, Skoda's new VisionS concept previews an SUV based on the Group's MQB platform, positioned above Yeti in the model range. The model is the first of four new SUVs due within the next four years, and signals the brand's determi‐ nation to improve its market share in this fleet‐heavy segment. Due in early 2017, the production version will offer three rows of seats with room for up to six passengers, and will feature the familiar range of Volk‐ swagen engines. The concept vehicle has also been tested with a plug‐in hybrid power train: with 225hp, the show car accelerates from 0 to 100 km/h in 7.4 secs with a top speed of almost 200 km/h. Skoda claims this offers a range of 50km on electric power, and will travel up to 1,000km with both systems in use. Skoda’s flagship SUV is likely to be manufactured at the Mladá Boleslav plant in Czech Republic, which is currently undergoing a major investment programme. In Spring 2016, Skoda will install a new servo press line that will enable engineers to press body panels made of aluminium for the first time. The new facility is expected to go into operation in February 2017 following an investment of €86 million into the project. By recovering the energy released during pressing, Skoda claims that the new press line will consume up to 15% less energy compared to conventional systems in continuous operation. “The new press shop will be making our production a great deal more environmentally friendly, efficient and forward looking,” explains Michael Oeljeklaus, Skoda board member responsible for Production and Logistics. New Superb only became fully available to Indian customers in February this year, a full 12 months after its launch in Europe. Superb is manufactured locally at the Skoda Auto India plant in Aurangabad, India, and the new model will be the last new model launched in the territory for a while. The brand will instead focus on improving aftersales services and cutting costs; “We are very realistic that there is no point in putting new products on the road if the customer experience with those is going to deteriorate after six months,” says Sudhir Rao, chairman and managing director of Skoda Auto India. Data miners have been deployed to identify weaknesses in the company’s aftersales strategy.
SKODA fleet model range
Citigo
Fabia
Variants: 3/5dr hatchback Markets: Europe. Fuel: 4.0-4.6l/100km CO2: 93-106g/km
Variants: 5dr hatchback/wagon Markets: Europe, Asia, Africa, South America, Oceania. Fuel: 3.4-4.7l/100km CO2: 88-108g/km
Rapid / Rapid Spaceback
Rapid (India/China)
Variants: 5dr hatchback Markets: Europe, Asia, Africa, South America, Oceania. Fuel: 3.4-4.8l/100km CO2: 89-112g/km
Variants: : 4dr sedan Markets: India, China. Fuel: 4.6-7.0l/100km CO2: 122-162g/km
Octavia
Superb
Variants: 5dr hatchback/wagon Markets: Europe, Asia, Africa, South America, Oceania. Fuel: 3.5-6.6l/100km CO2: 90-154g/km
Variants: : 5dr hatchback/wagon Markets: Europe, Asia, Africa, South America, Oceania. Fuel: 3.7-7.1l/100km CO2: 95-159g/km
Yeti Variants: Crossover Markets: Europe, Asia, Africa, South America, Oceania. Fuel: 4.5-6.3l/100km CO2: 118-147g/km
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Kia Sportage The new Sportage is a better car all-round, but does it look as good? asks John Kendall. SECTOR Crossover PRICE €19,990–€42,190 FUEL 4.6–7.6l/100km CO2 119–177g/km
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tand the new Kia Sportage next to the outgoing model and there is an air of familiarity about it. Kia has sensi‐ bly kept the basic shape of the outgoing model, with the biggest changes to the front and rear ends. But take a closer look and it’s clear that the latest model is longer than its pred‐ ecessor (most noticeably in the rear doors). It is 40mm longer with an additional 30mm in the wheelbase, giving more front and rear legroom. Width and height remain the same, although the floor has been lowered by 40mm, making it easier to get in and out of the car. The boot is slightly larger too and the rear loading height is 47mm lower. Elsewhere, the door mirrors have been lowered and feature narrower plastic mounts while there are thinner A‐pillar bases to improve visibility. At the rear the tailgate glass extends upwards further and the C‐pillars have been narrowed, also benefitting visibility. The previous four engines have all been revised to meet Euro 6 emissions limits and there is a new engine too, giving a choice of two petrol engines. The 132hp 1.6‐litre direct injection GDi petrol engine (147‐156g/km CO2) is joined by and both 185hp CRDi models come with AWD as standard. a turbocharged T‐GDi variant (169‐177g/km CO2), raising There’s a long list of driver assistance equipment and power to 177hp. The fleet favourite is likely to remain the options, with availability depending on market, while all 115hp 1.7‐litre turbo‐diesel with CO2 emis‐ European markets have their own trim choices. sions from 119g/km. Finally there are two vari‐ There is one pan‐European trim, the GT Line, FLEET FACT ants of the 2.0‐litre turbo‐diesel producing 136 first seen on the Optima last year, introducing a and 185hp (184‐201g/km CO2). A six‐speed mid‐spec option with additional equipment manual transmission is standard across the included in the price. New 1.7CRDi range, while the TGDi engine is available with a Quality takes a step forward with the new Stop/Start offers seven‐speed dual clutch automated transmis‐ Sportage thanks to a stiffer body shell and 4.6l/100km with sion (DCT). Both diesels are also available with better quality materials inside the cabin. The 119g/km CO2. a six‐speed conventional automatic. stiffer body shell brings better ride quality and 1.6GDi and 1.7CRDi models come with front‐ reduced noise levels, while the steering gets the wheel‐drive only, while 1.6T‐GDi and 136hp 2.0CRDi manual same treatment as the Optima with a servo motor re‐posi‐ models are offered with either front or all‐wheel drive tioned on the steering rack, which brings greater precision. (AWD). Then T‐GDi models with DCT, automatic 136hp CRDi The 1.7CRDi model, offering the lowest emissions, is likely to be the fleet favourite, particularly where CO2 emissions‐ related tax schemes are in operation. CO2 emissions range from 119g/km to 124g/km. It’s a pleasant and refined drive‐ train, except when extended – like most diesel rivals. Although the engine is available with the DCT transmission in the European‐built Optima, that is not currently an option for the Korean‐built Sportage, but it’s a possibility for the future. The 1.6‐litre T‐GDi engine is a refined option but the higher CO2 emissions will rule it out for some fleet markets, with the greatest CO2 emissions in the range. The 2.0‐litre diesel flag‐ ship with automatic transmission is a refined and comfortable cruiser, capable of taking on market leading rivals. In a brand‐ conscious market sector, that may not be enough to tempt rivals away from premium German manufacturers. Design may prove to be the deciding factor for many potential buyers. The outstanding design of the previous model helped it to overcome a few shortcomings. The revised front may help to bring the Sportage into line with other Kia models, but it loses some of the distinctive design of its predecessor.
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what we think highlights Improved build quality and finish More interior space New 1.6 T-GDi petrol engine with seven-speed DCT transmission
The new Sportage is a better car all-round than its predecessor with better ride and handling, lower noise levels and better quality materials and build quality. But it loses some of its design edge with the new front end.
More safety and driver assistance equipment
key fleet model Kia Sportage 1.7CRDi six----speed manual
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Volvo XC90 T8 The XC90 T8 Hybrid could prove popular with some executive fleet drivers, says John Kendall. SECTOR Premium SUV PRICE €76,705–€80,305 FUEL 2.1l/100km CO2 49g/km
W
originally quoted at the XC90 launch following further tuning. hen Volvo launched the new XC90 in 2015, the These may be credible figures for those who re‐charge the range consisted of the 320hp T6 petrol powered battery every night and use the car for electric‐only commut‐ model and the 225hp D5 diesel model. A T8 plug‐ ing during the week, but for many drivers combining both in‐hybrid (PHEV) was included in the model range from the electric and petrol drive most of the time, fuel consumption is start, but was not available at launch. Now it is making its likely to be much higher. For fleet drivers whose fuel is paid for debut in all markets where Volvo sells the XC90. by their employer, the tax advantages will mean fuel The car combines the 320hp 1,969cc four‐cylinder petrol consumption is likely to matter less as the potential tax bene‐ engine of the T6, driving the front wheels, with an 87hp elec‐ fits will outweigh any such considerations. tric motor, which drives the rear wheels. Like other PHEVs, this Otherwise, the XC90 comes with the same range of trim gives a variety of drive options. The default mode is ‘Hybrid’ options: and long list of optional equipment. Eight‐speed where both the petrol engine and electric motor are used automatic transmission is standard and either individually or together. ‘Power there is a long list of safety equipment mode’ uses both power sources for maxi‐ as you might expect from a Volvo. The mum performance. ‘Pure’ uses only the XC90 was the first Volvo to adopt the electric motor, offering a maximum range company’s latest touchscreen infotain‐ of 43km, according to Volvo. ‘Save’ uses the ment system with Apple CarPlay and petrol engine only, saving the battery Android Auto bringing a selection of energy for zero emissions zones or where apps for drivers too. needed. ‘AWD’ is used for low speeds on Choosing a drive mode simply involves poor traction surfaces or other situations using the selector on the centre console, where all‐wheel‐drive is desirable. ‘Off while additional regenerative braking can Road’, engages an electronically‐controlled be brought in by tapping the gear selector limited slip differential function at speeds back to the ‘B’ position. Air suspension is below 40km/h. ‘Individual’ allows a an option, but I prefer the better body degree of customisation combining some control offered by the standard steel settings to suit individual tastes. Recharg‐ The T8 offers a lowsuspension and would pick other options ing takes around 2.5 hours. emissions alternative over the air ride. Otherwise, the XC90 is as Like other PHEV models, one of the big to diesel power for the impressive as before with subdued engine, advantages for fleet drivers operating effortless eight‐speed automatic transmis‐ where CO2 emissions‐related taxes are XC90 with benefits sion and plenty of comfort and space for up applied is the potentially low rates of for fleets where CO2 to seven occupants. It would be an impres‐ tax. Under the European NEDC cycle, the emissions-related tax sive long‐distance cruiser. Driver usage T8 returns CO2 emissions of 49g/km schemes are in use. would determine how effective the hybrid and combined fuel consumption of option would be for individual drivers. 2.1l/100km. These figures are lower than
what we think
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Range Rover Evoque Evoque’s 2016 makeover includes the Ingenium diesel, says John Kendall. SECTOR SUV PRICE €33,100–€56,810 FUEL 4.2–8.6l/100km CO2 109–201g/km
f
ive years after it was launched, the Range Rover Evoque binnacle as well as new colours and finishes. has been re‐worked to include a range of revisions and Evoque now gains the All‐Terrain Progress Control (ATPC), new technologies to bring it up to date. which means that there is no dialling in for off‐road conditions From a fleet perspective, the most notable is the Ingenium before driving off. ATPC monitors conditions and applies the 2.0‐litre diesel engine, which also makes its way into the Land settings it thinks are appropriate. There’s also a new Rover Discovery Sport and reduces both fuel consumption eight‐inch colour touchscreen with JLR’s InControl touch info‐ and CO2 emissions compared with the outgoing 2.2‐litre tainment system, which displays available smartphone apps diesel. Two variants of the engine are available in the Evoque, as they appear on your mobile device. The hands‐free tailgate producing either 150hp or 180hp, with the 180hp variant opening function also filters down from larger models, producing 50Nm more torque – 430Nm at 1,750rpm. Only opened by waving a foot beneath the rear bumper. 180hp variants are available with four‐wheel drive. Land The Ingenium engine is a significant advance for diesel‐ Rover claims that the 2016 Evoque is 18% powered models, principally in refine‐ more fuel‐efficient that the original ment. Engine noise levels are reduced and version. There’s also a 240hp 2.0‐litre the 2WD 150hp models will be attractive petrol engine. Service intervals have also to those who found that CO2 emissions of been extended to around 34,000km. the 2.2‐litre engine kept the Evoque off For three‐door 150hp versions, EU their choice lists. Performance is good in combined fuel consumption starts from both 150hp and 180hp versions. 4.2l/100km and CO2 emissions from Undoubtedly the 180hp engine is more 109g/km, only reaching 4.3l/100km and desirable, bringing 4WD and a nine‐speed 113g/km for five‐door manual models. automatic option, but for those wanting an There are no 150hp automatics. The Evoque inside the constraints of a fleet 180hp variant starts from 4.8l/100km policy, 2WD models have impressive off‐ and 125g/km CO2, with five‐door auto‐ road capability too. I didn’t drive off‐road matic models returning 5.1l/100km and and none of the petrol models were avail‐ 134g/km. able to drive, but previous experience off‐ The Ingenium diesel is a Externally, 2016 models are designated road suggests that the Evoque is likely to welcome arrival for the by a new front bumper with wider air far exceed the needs of its drivers. Evoque. It’s better to drive intakes and new grille designs. There is Quality ought to be a given for any vehi‐ also a new rear spoiler with integrated cle with a Range Rover badge and the and 109-113g/km CO2 high‐level brake light. The Evoque also Evoque provides the expected air of qual‐ emissions are what many becomes the first model from Jaguar Land ity. The new interior touches help and the potential drivers have Rover to feature LED adaptive headlamp simplicity of the new InControl connectiv‐ been waiting for. technology. Inside there are new seats and ity is welcome. Just pair the phone and the door casings and a redesigned instrument available apps appear on the centre screen.
what we think
internationalfleetworld.com / 39
fleet in figures
SUVs top registrations VW led the European car market in 2015, while average true fleet sales growth in the leading markets outstripped retail growth, reports John Kendall.
Ford Kuga SUV registrations increased by 30.2% during the year. Three models shared the highest registrations: the Vauxhall Mokka, Ford Kuga and Mitsubishi Outlander
A
ccording to data from Dataforce, the True Fleet market in the leading five European fleet markets: France, Germany, Italy, Spain and the United Kingdom saw average growth of 10.8% during 2015. Dataforce says that in all five countries, this rate of growth was greater than in the corresponding retail sectors. According to data from the European Automobile Manufacturer’s Association (ACEA) This average rate of growth was also greater than the growth overall in new car registrations for France, Germany and the UK, while Italy and Spain, which saw far larger falls in registrations during the financial crisis experienced overall growth in new car registrations of 15.8% and 20.9%
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respectively. Dataforce has taken a closer look at the data for each of the five countries.
35.5%. Opel registrations also rose strongly, up 31.8%.
France
Growth of 5.6% in the overall German car market in 2015 saw registrations reach 3,206,042, the first time the market has topped 3.2 million since 2009, reckons Dataforce. The company reckons that True Fleet registrations accounted for 786,723 registrations – 24.5% of the total 2015 market. The 2015 total gives True Fleet growth of 9.9% compared with 2014, while the 2015 total is the highest since Dataforce started analysing the German market in 2001. Despite its problems in Q4, Volkswa‐ gen was the best selling True Fleet brand with registrations up 12.7% on
Overall, registrations in France grew by 6.8% according to ACEA, but Dataforce shows that the True Fleet sector grew by 10.6% in 2015, while retail registra‐ tions grew by 2.5%. The company shows that, perhaps not surprisingly, it was French manufacturers that domi‐ nated True Fleet registrations with Renault achieving best‐seller status, followed by Peugeot and Renault, then Volkswagen in fourth place. BMW in fifth place saw registrations rise by 21.8% during the year and Nissan in seventh place experienced a rise of
Germany
2014, followed by Audi, BMW, Mercedes and Ford. Hyundai displaced Toyota in tenth place.
Italy The reviving car market had a very posi‐ tive impact on the Italian True Fleet sector, which rose 18.2% during 2015 to reach a total of over 290,000, the high‐ est annual volume since 2008, accord‐ ing to Dataforce. The top five positions in the sector remained unchanged from 2014, with Fiat the best seller, followed by VW, Audi, Mercedes and BMW. A rise of 43.5% propelled Peugeot into sixth place, while Ford also performed strongly with a 34.7% increase. Citroën in ninth place saw True Fleet registra‐ tions rise by 43.7% compared with 2014. The Fiat 500X was the most successful new market entrant, taking seventh position in the True Fleet sector close behind the Fiat 500.
Spain Spain registered the highest percentage growth in True Fleet registrations of the ‘Top five’ according to Dataforce, with an overall increase of 28.3%. According to the company, both the True Fleet and total car markets recorded the highest volumes since 2008. ACEA data shows that the total market rose by 20.9%, taking new car registrations above 1 million, with a total of 1,034,232. VW led the market with Renault and
Peugeot in second and third positions. BMW took fourth place with registra‐ tions rising 40.8%, while Nissan saw True Fleet registrations climb by over 80% compared with 2014. Qashqai led the SUV segment.
across Western Europe for SUVs in the 2015 total market. Overall SUVs accounted for 22.5% of European new car sales. Nissan took the largest slice with 376,000 sales, representing an 11.6% share of the SUV market.
UK
2015 European market leaders
A 6.2% increase in the True Fleet market in the UK resulted in over 900,000 regis‐ trations in 2015, making the country the largest True Fleet market in Europe. But Q4 saw an overall decline of ‐0.4% compared with Q4 2014. Does this signal a cooling off in the UK business car sector, or were big fleet deals concen‐ trated in earlier parts of the year? Dataforce points out that Opel/Vaux‐ hall and Ford led the market with a combined 25.4% share of the segment. Even so this has fallen by two percentage points compared with 2014. Mercedes‐ Benz, Hyundai and Citroën all recorded increases above 20% with increases of 21.8%, 25.8% and 22.4% respectively.
Among the manufacturers in the overall European car market in 2015, data from ACEA showed that once again, VW regis‐ tered more cars than any other manufac‐ turer with overall EU registrations rising by 6.3% to 1,657,195, accounting for almost 50% of the VW Group registra‐ tions during the year. Ford took second place with 999,224 registrations, an 8.6% increase over 2014. Renault took the third place with 957,391 registrations (+10.9%), followed by Opel/Vauxhall with 925,115 registrations (+6.3%) and Peugeot with 837,752 (+9.1%). Audi, BMW, Mercedes, Fiat and Skoda made up the remainder of the top 10. In percentage terms, Jeep experienced the highest rise in registrations, growing by 122.2% to 84,261, with the Renegade accounting for much of Jeep’s return to form. JATO Dynamics reckons that Jeep was the 25th best‐selling brand in Europe in 2015. JATO also credits the arrival of the new Smart Fortwo and Forfour models with helping to raise smart regis‐ trations by 71.2% to 92,340. JATO notes; “Once again the Volkswa‐ gen Golf was Europe’s best‐selling car
SUVs top markets SUVs now account for the largest share of True Fleet registrations. SUV regis‐ trations increased by 30.2% during the year to represent 26.7% of car True Fleet registrations. Of these, three models shared the highest registra‐ tions: the Vauxhall Mokka, Ford Kuga and Mitsubishi Outlander. JATO Dynam‐ ics reports that this pattern is repeated
In percentage terms, Jeep experienced the highest rise in registrations, growing by 122.2% to 84,261.
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fleet in figures
Top 20 best-selling cars in Europe Make & Model
Total
Change % 2014/15
Volkswagen Golf
533,584
+3
Ford Fiesta
314,432
+2
Renault Clio
305,305
+1
Volkswagen Polo
302,817
+8
Opel Corsa
269,765
+7
Ford Focus
234,442
+5
Nissan Qashqai
232,176
+14
Peugeot 208
229,767
+7
228,113
+49
Skoda Octavia
218,095
+6
Peugeot 308
214,907
+32
Audi A3/S3/RS3
199,668
0
Opel Astra
195,612
+8
Renault Captur
195,323
+18
Suzuki withdraws from Malaysia
Toyota Yaris
184,317
+9
Fiat 500
180,523
-1
Mercedes-Benz C-Class
173,381
+27
Fiat Panda
172,338
+13
Opel Mokka
163,747
+28
Skoda Fabia
161,394
+38
LMC also notes that Suzuki has with‐ drawn from the Malaysian market with effect from January 2016, affecting all production and sales activity. Suzuki’s 29 outlets in the country will become Proton dealerships, while remaining as repair and maintenance suppliers for Suzuki‐branded vehicles. This follows an agreement made last summer allowing Proton to manufacture Suzuki passenger models under the Proton name.
Volkswagen Passat
Source: JATO Dynamics
more than 530,000 units registered → with in 2015. It was ahead of the second place Ford Fiesta by more than 200,000 units. The Golf was the best‐selling car in Austria, Croatia, Germany, Luxemburg, Norway and Switzerland and kept its position despite its slower annual growth, the third lowest in the top 10. “Renault’s Clio and Volkswagen’s Polo finished in third and fourth place respec‐ tively. The Nissan Qashqai was once again the best‐selling SUV/crossover in Europe and was one of only two models to post double‐digit growth in the top 10. The other was Volkswagen’s Passat, the big winner in terms of volume growth with 87,500 units more than the previous year. Outside the top 10, the Peugeot 308, Renault Captur, Mercedes C‐Class, Fiat Panda, Opel/Vauxhall Mokka and Skoda Fabia also posted double‐digit growth.”
42 / internationalfleetworld.com
a lower rate of increase at 48% YoY. Behind these figures is the Vietnamese government’s announcement, in Octo‐ ber 2015, that the tax on imported CBUs would be revised in 2016, with an incre‐ mental rise in the retail price of imported vehicles. “In Thailand, sales in the month grew by 6% YoY ahead of the new excise tax hike in January 2016, marking the first YoY increase in 31 months. As of Janu‐ ary 2016, vehicles will be taxed on their CO2 emissions and fuel efficiency rather than on engine size. In other words, vehicles with larger engines emitting more pollutants will be taxed more heavily and be more expensive. SUV sales ahead of the new tax have benefit‐ ted in particular.”
ASEAN Region
Ford quits Japan and Indonesia
Full year sales for 2015 are not yet available in all regions and this includes the ASEAN region, covering Thailand, Malaysia, Indonesia, the Philippines and Vietnam. LMC Automotive has been crunching the numbers for the year to November and offers some insight into the markets. Overall, the markets surged by 10% year‐on‐year (YoY) in November, but LMC observes that this is most likely to be the result of pull‐ahead demand before expected price rises in Vietnam, Thailand and Malaysia, rather than an indicator of overall market improvement. LMC comments; “In Vietnam, sales surged by 99% YoY and 39% month‐on‐ month (MoM). Further analysis reveals that sales of imported completely built units (CBU) soared by a massive 193% YoY, while locally‐produced vehicles saw
Suzuki is not the only brand withdraw‐ ing from the region either. Ford has announced that it will withdraw its operations from Japan and Thailand this year. This is because Ford’s small market share in both countries makes operations there uneconomical. Ford had a market share of 1.5% of imported cars in Japan and less than 1.0% of the Indonesian market. The Jakarta Post suggests that the Ranger pickup has been one of the mainstays of the market for Ford in Indonesia, but with commodity prices falling and mining companies facing a weak market, pickup sales have fallen for the past few years. The withdrawal is due to take place in the second half of 2016 from both countries. Dealerships will be closed and Ford vehicle imports to both countries will end.
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