International Fleet World May 2014

INTERNATIONAL

FLEETW RLD All that matters in the world of fleet May 2014

SE AT.COM

NEW SEAT LEON TGI EFFICIENCY

Lower running costs Lower NOx emissions

FIND OUT MORE ON PAGE 15 SEAT FOR BUSINESS

ENJOYNEERING Petrol Mode: Average consumption: 5.3 l/100 km. Average CO2 mass emissions: 124 g/km.

CNG Mode: Average consumption: 5.3 m3/100 km. Average CO2 mass emissions: 94 g/km.

internationalfleetworld.com

AlphaElectric Get the full potential from your eMobility.

Less CO2 emission, lower costs and greater sustainability: the road ahead is bright for eMobility. But when it comes to integrating electric vehicles into your fleet, you want to ensure that it’s as straightforward as possible. Alphabet is one of the leading providers of business mobility and an expert in eMobility solutions. Our AlphaElectric product provides you with a complete ecosystem for electrifying your fleet. It includes analysis and consulting of your fleet’s electrification potential, vehicle selection, charging solutions and add-on mobility services. Call us – we’ll get your business charged up.

www.alphabet.com

INTERNATIONAL

FLEETW RLD All that matters in the world of fleet

May 2014

contents

SE AT.COM

NEW SEAT LEON TGI EFFICIENCY

Lower running costs Lower NOx emissions

FIND OUT MORE ON PAGE 15 SEAT FOR BUSINESS

ENJOYNEERING Petrol Mode: Average consumption: 5.3 l/100 km. Average CO2 mass emissions: 124 g/km.

CNG Mode: Average consumption: 5.3 m3/100 km. Average CO2 mass emissions: 94 g/km.

internationalfleetworld.com

Managing Editor Ross Durkin ross@fleetworldgroup.co.uk

16 How Alphabet sees fleet mobility.

19 Autonomous driving and the future...

28 Why Opel is the connected brand.

32 Leon is opening new doors for SEAT.

Publisher Jerry Ramsdale jerry@fleetworldgroup.co.uk Editor Steve Moody steve@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 Sales Director Anne Dopson anne@fleetworldgroup.co.uk Sales Executives Darren Brett darren@fleetworldgroup.co.uk Claire Lake claire@fleetworldgroup.co.uk Circulation Manager Tracy Howell tracy@fleetworldgroup.co.uk Head of Production Luke Wikner luke@fleetworldgroup.co.uk Designers Tina Ries tina@fleetworldgroup.co.uk Samantha Hargreaves sam@fleetworldgroup.co.uk

INTERNATIONAL

04 Fleet Review Editor John Kendall discusses the great global fuel debate.

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

14 RVs Analysing residual value confidence in the Eurozone and beyond.

16 Interview Carsten Kwirandt discusses Alphabet’s fleet mobility strategy.

19 Feature Autonomous driving and the future implications for fleets.

24 Feature The challenges of integrating digital radio and mobile technology.

26 Interview Jürgen Stackmann on how Leon has transformed SEAT. 28 Interview Karl Thomas Neumann explains the Opel – PSA connection.

FLEETW RLD

30 International Fleet Academy First in a series from NAFA’s Global Fleet Guide.

Published by

32 Profile Exploring SEAT’s evolving fleet strategy and the effect of new Leon.

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

36 Launch Report Panamera Hybrid / Outlander PHEV / FUSO Canter / Giulietta.

40 Global Fleet Forum A round-up of activity on the popular fleet forum.

42 Fleet in figures Breaking down the global vehicle sales by region.

global STAG Publications

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fleet review

This month, editor John Kendall looks at the continuing global reliance on oil, the alternatives, and improved registrations.

Don’t ignore natural gas An interview with SEAT Chairman Jürgen Stackmann at the recent Geneva Show raised some interesting points of discussion. Not surprisingly, he is in favour of compressed natural gas (CNG), as a fuel, since SEAT recently launched the CNG powered Leon TGI. It offers low emissions with no particulates, while modern turbocharged natural gas engines can rival the efficiency of a diesel. As Mr Stackmann pointed out, infrastructure is still a problem.

While Germany and Italy have good CNG refuelling networks, others, such as the UK are poorly served.

It’s a fuel that can be produced from renewable sources too. Landfill waste disposal sites, sewage and biomass are all potential sources of methane gas, the principal element of natural gas. Using it could have a beneficial effect on CO2 emissions.

There is a cost to building the necessary infrastructure, but since most developed countries have a natural gas distribution infrastructure in place, the hard work has already been done.

Cause for global optimism Seven months of sustained improvements in registrations suggests that the European car market really is over the worst of the prolonged depression in sales. Only Belgium and the Netherlands posted small decreases in registrations in March. The Dutch decline could be attributed to tax changes earlier this year. Elsewhere North America is looking stable and growth in China is still strong. That said, it doesn't look so good elsewhere. Japan is absorbing a tax increase and the Ukrainian crisis is

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likely to affect the Russian market this year.

Financial problems appear to be affecting South America too, which had been expanding rapidly.

Sustainable fleets...

High European fuel prices have helped to ensure that European fleets in the major markets score pretty well on fleet sustainability. The driving factor in the US, where fuel has traditionally been much cheaper, appears to be coming from a different direction. The National Association of Fleet Administrators (NAFA) has announced that it will begin a Sustainable Fleet Standard programme, in conjunction with Calstart.

NAFA has been spurred on by President Obama's call for a national vehicle sustainability initiative earlier this year. Fuel costs have risen in North America and although they have not risen to European levels, reducing fuel consumption would offer effective cost reductions for US fleets, as NAFA acknowledges. Like other countries, the US is keen to reduce its dependence on imported oil. NAFA's initiative would help to speed things along where that is concerned too. The US desire for fuel independence brings us back to where we started, as natural gas is very much on the US agenda as a road fuel.

visit internationalfleetworld.com

The Astra 1.6 CDTI 110 HP

We’d like to make some noise about this whispering Diesel.

The 110 hp strong 1.6 CDTI engine is quiet, with minimal CO2 emissions of 97 g/km and super low consumption of just 3.7 l/100 km. No wonder we declare this whisper silent Astra – with a loud voice – the ideal car for your fleet!

That’s German excellence in a new price class. Ask about it at your closest Opel partner.

opel.com Fuel consumption combined 3.7 l/100 km; CO2 emissions combined 97 g/km (according to R (EC) No. 715/2007).

business news

ARI acquires netcar24 GmbH

G

lobal fleet services provider ARI has acquired German company netcar24 for an undisclosed amount.

The technology company develops and offers enterprise software solutions for the fleet management industry. It currently provides full service remarketing and dealer management products, which are designed to ease administrative tasks and provide the tools necessary to reduce total cost of ownership.

“We are so pleased to have netcar24 join the ARI family of companies,” said ARI president Carl A Ortell. “Netcar24 has a long history of developing groundbreaking products that help fleets operate more efficiently and transparently, which is directly in-line with ARI’s approach to fleet management. I believe their drive to offer state-of-the-art technology that provides real value will be a tremendous addition to ARI.”

in brief Mitsubishi Motors & Business Lease partner in Netherlands Business Lease Nederland BV is to take on the lease activities of Mitsubishi Motor Sales Nederland BV under a new partnership.

The business will operate under the label ‘Mobile + Leasing’ and makes Mitsubishi the fourth captive partner of Business Lease Nederland in addition to Hyundai, Mazda and Chevrolet.

Mercury Associates opens Canadian office

Hitachi Capital acquires Polish fleet management firm as part of European expansion itachi Capital (UK) PLC is expanding its fleet operations into Europe following the acquisition of Polish car fleet manageH ment business Corpo Flota Sp. z o.o.

The firm has signed a share transfer agreement to acquire 90% of the shares of Corpo Flota, making the company a majority owned subsidiary.

Corpo Flota operates a comprehensive car fleet management business in Poland, including auto leasing, maintenance and fleet management.

Hitachi Capital said it has been conducting market research in several European countries, including Poland, as part of a planned expansion into Europe. The acquisition of Corpo Flota allows the business to combine its experience in the UK car and commercial vehicle leasing markets with local management expertise and supports an immediate market entry to capitalise on growth prospects as European markets recover from recession.

Hudson Kapel Remarketing secures longterm contract with Manheim Australia udson Kapel Remarketing, part of the UK Hudson Kapel H Group, has secured a three-year contract from Manheim Australia, worth half a million pounds.

The long-term contract will see Hudson Kapel provide the global B2B provider of products and services to the automotive industry with an vehicle book-in and inspection system originally successfully developed in the UK. The system is intended to deliver time and efficiency savings, improving customer service and profitability.

06 / internationalfleetworld.com

North American fleet management firm Mercury Associates has opened a Canadian office in Midhurst, Ontario to better serve its existing Canadian clients and better meet the needs of its future clients.

Iveco launches multi-lingual app for products & offers Iveco has launched a new, multi-lingual app to provide Iveco customers and commercial vehicle drivers with information on its products and services.

Dubbed MY IVECO, the free app for smartphones and tablets will be available in six languages (Italian, English, Spanish, French, German, and Polish) from the Apple App Store for iOS and in Google Play for Android.

Sofico underpins growth plans with recruitment drive Belgium-based fleet and leasing software solutions provider Sofico has embarked on a high-tech recruitment drive to locate top-calibre, experienced business and IT professionals to fuel its plans for further growth, whilst still maintaining a high level of service for existing customers.

Sofico is expecting to increase its permanent staff of 120 by around 20% by the end of this year.

manufacturer news

Toyota Motor Europe climbs closer to 5% European market share T

oyota Motor Europe (TME) has said that it is closing in on a 5% mark for its European market share following strong Q1 sales.

TME posted a first quarter sales result of 225,152 Toyota and Lexus vehicles in Europe, up 14% from the same period in 2013. TME’s European market share in the first three months of the year stands at 4.9%, up 0.4 percentage points from the same period last year. Hybrid models accounted for 21% of all vehicles sold by TME between January and March.

Daniele Schillaci, senior vice-president for TME sales and marketing, said: “We started 2014 very strongly with our European market share climbing closer to the 5% mark. Our growth doubled that of the market trend, demonstrating that our products are striking the right note with customers, and there’s more yet to come. Our fun-loving AYGO will excite customers when it hits the showrooms in the summer.”

SEAT to launch first-ever SUV in 2016

S

EAT has confirmed that it will launch its firstever SUV in 2016.

The announcement follows nearly two years’ work by SEAT on the design and development of the new model at its Martorell facility.

The new model will be based on the Volkswagen Group’s MQB, as used in the Leon, and marks the brand’s entry into the growing SUV segment, which represents close to one million cars per year in Europe alone and has increased more than 40% over the past five years.

“This is an excellent piece of news, since it takes SEAT into a new territory, in one of the largest and fastest growing segments in the world,” declared SEAT chairman, Jürgen Stackmann. “The SUV is an important pillar in the future corporate strategy and is a major step forward on the road to reaching sustainable profitability for the company,” he added.

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New Volvo flywheel KERS technology could cut fuel consumption by up to 25% olvo and engineering company Flybrid AutomoV tive, part of the Torotrak Group, have begun UK tests of a flywheel kinetic energy recovery system capable of boosting performance and cutting fuel consumption for a fraction of the price and weight penalty of an electric hybrid.

The Flybrid KERS system is fitted to the rear axle of an S60 powered by a 254hp five-cylinder T5 petrol engine. Under braking, kinetic energy that would otherwise be lost as heat is transferred from the wheels to the KERS, and is used to spin a 6kg carbon fibre flywheel at up to 60,000 revs per minute. When the car starts moving off again, energy stored in the spinning flywheel is transferred back to the rear wheels via a specially designed transmission, and can either boost power or reduce load on the engine.

The combustion engine that drives the front wheels is switched off as soon as braking begins. The energy in the flywheel can then be used to accelerate the vehicle when it is time to move off again or to power the vehicle once it reaches cruising speed.

The four-year trial has shown it can deliver an 80hp performance boost with fuel savings of up to 25%. At mass production volumes, Flybrid estimates it would cost between a quarter and a third of the price of an electric hybrid system.

For the latest news, visit internationalfleetworld.com

Land Rover concept previews future SUV technologies and Rover has shown some of its most advanced nextgeneration driverless vehicle and in-car technologies in L the Discovery Vision Concept, unveiled at the New York International Auto Show.

Hinting at the next Discovery’s styling, the concept can be driven remotely via a smartphone app and is capable of scanning and adjusting for rough terrain via forward-facing lasers. Using ‘smart glass’, the car can display data from its internet-connected infotainment system on its windows and offer an advanced head-up display showing live camera images of the road just in front of the bonnet for easier manoeuvring. In-car systems are gesture-controlled.

Dr Wolfgang Epple, director of research and technology at Jaguar Land Rover, said: “We are showcasing some very exciting new technologies on the Discovery Vision Concept car. While some have real potential and others are just concepts, both Jaguar and Land Rover will continue to set new standards and continue to grow by bringing these new technologies and innovations to our customers.”

fleetweet a few soundbites from a month in fleet

@PropertyVenture Louise Reynolds, owner, Property Venture Overseas

#european car industry positive about outlook,. European Automobile Manufacturers’ Association (Acea), expecting 2% growth 2014.

@lachlikelockman Michael Lachman, transit manager, Athens Transit Ohio

If we’re serious about reducing US fleet carbon we should start requiring manufacturers to list CO2 emissions as a standard spec point.

@CleanAirLondon Clean Air London, organisation monitoring air pollution levels in London

Told by a leading scientist that #SaharaDust is just 5% of the #airpollution hitting the UK. Rest is ours and from Continental Europe

@Thomas_Husson Thomas Husson, vice president & principle analyst, Forrester

PSA to slash models & develop DS as separate brand

P

SA Peugeot Citroën has announced it is to slash the number of models in its range by nearly half and develop the DS line-up as part of a major recovery plan.

Under the ‘Back in the Race’ plan announced by new chief executive Carlos Tavares, Peugeot will gradually cut the number of models in its range from 45 to 26 by 2020. Affected models have yet to be announced.

Meanwhile the DS line-up will be developed as a fully fledged brand.

The plan will also focus on reducing costs and excess plant capacity and look to accelerate its expansion in China, in partnership with China’s Dongfeng, in a move to boost sales in other Asian markets.

The company is also looking to boost its business in Europe, Russia and Latin America where it is losing money within the next three years.

Android Wear + Chromecast + Apple’s Carplay + Amazon’s rumored set-top box etc...

The digital platform war is moving to a new era.

@owenmildenhall Owen Mildenhall, journalist, Auto Express

Trying the Flying Spur from the backseat. How it feels back here really important for lots of buyers.

@SteveFowler Steve Fowler, editor-in-chief, Car Buyer UK magazine

Up close with the Land Rover Discovery Vision Concept – looks great in the flesh.

Big yet nicely detailed.

internationalfleetworld.com / 09

With CO² emissions of just 103 g/km, the C 220 BlueTEC is an easy choice.

A Daimler Brand

Less is more: with its lightweight construction, state-of-the art materials and super-efficient engine, the new C-Class is the best in its segment. You get everything you could ever need from a car of this class, without the big fuel bills. www.mercedes-benz.com/fleet

Fuel consumption urban/extra-urban/combined: 5.5–4.8/3.9–3.4/4.5–4.0 l/100 km; combined CO₂ emissions: 117–103 g/km.

Provider: Daimler AG, Mercedesstraße 137, 70327 Stuttgart, Germany

Efficiency class: A+.

environmental news

Europe-wide €38m hydrogen fuel project launched

S

takeholders in the hydrogen fuel cell sector have partnered to launch a €38m private-public partnership spanning five European Member States.

The HyFIVE project, part-financed by the Fuel Cells and Hydrogen Joint Undertaking, pools the resources of five vehicle manufacturers, plus hydrogen fuel suppliers and energy consultancies to research, develop and demonstrate the technology across Europe.

BMW, Daimler, Honda, Hyundai and Toyota will deploy a fleet of 110 vehicles – including 75 Hyundai ix35 FCEVs – which will be deployed at cities in Italy, Denmark, Austria, Germany and the United Kingdom. Hydrogen fuel cell vehicles produce electricity to drive their own electric motors, with only water vapour as a by-product and refilling times close to a conventionally powered model.

Hydrogen fuel companies, including Air Products, Copenhagen Hydrogen Network, ITM Power, Linde and OMV, will work with other signatories including Element Energy, PE International, the Institute for

Innovative Technology and the European Fuel Cell to install six new fast refuelling stations, conduct research and set standards across the region.

Bert De Colvenaer, executive director of the Fuel Cells and Hydrogen Joint Undertaking, said: HyFIVE will represent the largest single project of its kind financed by the FCH JU. The high level of technology readiness of this zero emission transport technology will be showcased in five European Member States, thus ensuring a broad geographical outreach.

“In addition, the project will also contribute to the buildup of the first networks at local levels necessary to support the market introduction of the vehicles in the coming years.”

A recent report from the European Parliament said electric, hydrogen fuel cell, LNG and CNG-powered vehicles could save the region €4.2bn per year by 2020, rising by €1bn each year as it negates the impact of oil price hikes, while creating 700,000 additional jobs by 2025 and contributing to a 60% CO2 emission reduction target by 2050.

European Parliament rules electric and hybrid cars must make a noise

E

lectric and hybrid vehicles will soon have to be fitted with noise generators to warn pedestrians that they are approaching, following a proposal recently approved in the European Parliament.

The irst alteration of vehicle noise limits since 1995, it also sets a 4dB cut in engine noise for conventionally powered passenger cars claimed to cut noise pollution by 25% and will require vehicles to have a noise level label at the dealership.

Following a five-year transitional period, during which time manufacturers have the option to fit the technology, an Acoustic Vehicle Alerting Systems (AVAS) will be

12 / internationalfleetworld.com

mandatory for all electric and hybrid vehicles, stipulating a minimum noise level while driving at less than 20kph without an internal combustion engine.

The alert must not be an alarm-type sound, cannot be louder than a conventional drivetrain, should vary to indicate vehicle speed and can have a switch allowing them to be deactivated, provided the latter also shows a warning for the driver.

AVAS-type systems are already itted to some electric vehicles, including the Renault ZOE which allows drivers to choose between three different sounds emitted below 30kph.

For the latest EV news, visit evfleetworld.com

Haute-Normandie to introduce EV fleet incentives B

usinesses and communities in the Haute-Normandie region of France could soon be able to claim a subsidy of up to €50,000 to buy electric vehicles and charging points, under proposals put forward in April.

The region is home to Renault’s Cleon factory, which builds motors and batteries for electric vehicles, and the automotive industry is said to have created 27,000 jobs in 350 companies locally.

Nicolas Mayer-Rossignol, Haute-Normandie’s president, said the incentives would ongoing plans to make Haute-Normanide one of France’s first ‘Eco Regions’ – announced when he became president last October.

Proposals put forward include a subsidy of up to 50%, or €25,000, for businesses equipping their premises with charging points, and €5,000 apiece off up to five electric vehicles for their own fleet.

The latter will be matched for private buyers, who will be offered a €5,000 electric vehicle subsidy in addition to the State-issued €6,300 eco-bonus, while high schools will be offered a between 50 and 70% discounts against electric service vehicle purchases.

Lexus NX hybrid targets diesel-heavy crossover sector

L

exus will bring hybrid technology to the mid-size crossover segment later this year, confirming the IS 300h’s drivetrain will feature in the new NX. Unveiled at the Beijing Motor Show, it launches Lexus into a new segment, competing for sales of the Audi Q5, BMW X3 and Volvo XC60, and most customers are expected to be conquests from other brands.

Unique to this segment, the NX will feature a hybrid drivetrain combining a 2.5-litre four-cylinder petrol engine and electric motor, as used in the IS 300h and GS 300h. The NX 300h will be available with front and four-wheel drive, and the former could offer CO2 emissions of less than 100g/km.

Models shown at Beijing will include naturally aspirated and turbocharged petrol engines, but Lexus has yet to confirm whether these will be available in Europe.

EV 90% in numbers

SOURCE: Bentley

Share of Bentley’s products to be offered as plug-in hybrids by 2020.

in brief GM invests in Detroit EV factories General Motors is to invest $449m (€323m) in its electric vehicle manufacturing facilities in Michigan, ready for the next Chevrolet Volt. Of this, €276m will be spent on the Detroit-Hamtramck plant where the Volt, Opel Ampera and Cadillac ELR are built, with the remainder invested in its Brownstown battery facility.

California running low on plug-in hybrid HOV stickers California has issued 38,803 of the 40,000 high-occupancy vehicle lane stickers for plug-in hybrids since the scheme launched in 2012. Access to the state's 1,400 miles of carpool lanes is said to cut commuting times by a third.

Nissan and Omexom to double German rapid charge network Nissan and Omexom substations have begun a two-year partnership to double Germany’s network of DC rapid chargers. Connections will include CHAdeMO and CCS DC and Type 2 AC, with locations including dealers and the carmaker's fleet customers.

EVtweet of the month @GarethDeanPR Gareth Dean, Zero Emission & Electric Vehicle communications manager, Nissan Europe

Electric cars now 1% of Norway total passenger vehicle parc. Inevitable with Nissan LEAF number 1 for Jan/Feb’14 & number 3 for all 2013.

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Cars on Avis Car Rental’s new Nissan LEAF fleet in Denmark – the world’s largest order for the EV.

SOURCE: Nissan Denmark

internationalfleetworld.com / 13

RVs

Analysing leasing and residual value confidence in the Eurozone and beyond...

SMR costs vary across Europe Mixed opinion on SMR budgets across European leasing companies, reports Experteye.

F

orecasted servicing, maintenance and repair (SMR) budgets built into panEuropean contract hire rentals reflect mixed opinion about the expected cost of repairing cars and vans.

In Italy, SMR budgets have fallen by -7.7% in the last 12 months, with Portugal reporting a -3.4% fall, Germany -2.6% and Spain -2.4%. Yet in the UK budgets have risen fractionally (+0.1%) and in France they have gone up by +2.1%.

There are also variances in forecasted residual values (RVs) across Europe, the UK showing most optimism in the future used vehicle market with a +5.7% improvement in the last year. In France there has been a +2.1% annual increase and in Germany a +0.4% rise, while Spain (-0.1%), Italy (-0.7%) and Portugal (-1%) all show slight reductions.

The figures come from the latest Experteye European Leasing index survey which tracks forecasted residual values (RV), servicing, maintenance and repair (SMR) costs and rental rates in six European countries using data supplied by major leasing companies.

In the last quarter there has been a +11.3% increase in forecasted residual values in the UK, however, UK RVs often alter more in the run up to the new registration plate, potentially making this a less dramatic shift than meets the eye. Otherwise forecasted RVs in the last three months have been relatively stable across the nations surveyed by Experteye, with France showing a slight +1.9% improvement in its RV forecasts, Portugal +1.5%, Germany and Italy both +0.4% and only Spain showing a fall of -0.1%.

Market summaries – 3 and 12 months to March 2014

FRANCE: French fleet operators have seen their average rental rates fall by -2.9% in the last year, with a -0.6% reduction since January 2014. Of the nations surveyed, France is the second most optimistic country in its future used vehicle market (behind the UK), with forecasted RVs improving by +2.1% for the year and +1.9% for the quarter. SMR budgets are rising faster in France than any other country with a +2.1% increase since April 2013 and a +0.9% increase in the last quarter.

GERMANY: SMR budgets fell by -2.6% in Germany last year, rising slightly in the last quarter by +0.7%. Forecasted residual values are relatively stable with a +0.4% increase for both the quarter and the year. After a year that saw German rental rates fall by -0.4% they went up by +0.2% in the last three months.

ITALY: In Italy, SMR budgets have come down by -7.7% in the last year, the largest reduction of all nations surveyed. In the most recent quarter they have settled with only a marginal -0.1% fall. After a year that saw forecasted residual values reduce by -0.7% they improved slightly in the last quarter with a +0.4% rise. Rental rates dropped by -0.3% since January 2014 having increased by +1.1% since last April.

PORTUGAL: Of the nations surveyed, rental rates fell by the greatest margin in Portugal, with a -5.8% price reduction for the year, and a -1% for the quarter. SMR budgets are down by -3.4% since April 2013 and -2.1% in the last three months. Following a year that saw forecasted RVs come down by -1%, there has been improved optimism in the last quarter with a +1.5% rise.

SPAIN: Spain is the only nation in the Experteye survey to have reported a downturn in its forecasted residual values in the last quarter, albeit with only a very small -0.1% reduction. This follows a year that also saw a -0.1% fall in RVs. SMR budgets went up by +0.1% in the last quarter, having fallen by -2.4% since last April. Rental rates are down by -1.9% since the start of 2014, having fallen by -1.7% in the last year.

UK: UK forecasted residual values shot up by +11.3% in the last quarter, but fluctuations often occur ahead of a new registration plate. In the last year, however, the UK has led the way in RV confidence with a +5.7% rise since April 2013. SMR budgets have seen little movement with a +0.1% rise for the year and +0.3% for the quarter. Rental rates rose by +3.8% last year but have remained static (0%) since January 2014.

CHANGES IN RV FORECASTS, SMR COST FORECASTS AND LEASE RENTALS Forecast Service, Maintenance Current Rental Rates and Repair Costs 3-month change 12-month change 3-month change 12-month change 3-month change 12-month change +1.9% +2.1% +0.9% +2.1% -0.6% -2.9% +0.4% +0.4% +0.7% -2.6% +0.2% -0.4% +0.4% -0.7% -0.1% -7.7% -0.3% +1.1% +1.5% -1.0% -2.1% -3.4% -1.0% -5.8% -0.1% -0.1% +0.1% -2.4% -1.9% -1.7% +11.3% +5.7% +0.3% +0.1% +0.0% +3.8% Forecast Residual Values

France Germany Italy Portugal Spain UK

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

• Twelve-month comparisons show change since April 2013.

• Three-month comparisons show change since January 2014.

14 / internationalfleetworld.com

• Rental rate changes compare the rates in effect at the time of the survey with those in effect three or twelve months ago.

• RV and SMR changes show the change in participating leasing companies’ forecasts of residual values and maintenance costs over the period.

FULL THROTTLE TOWARDS

A CLEANER FUEL.

With the SEAT Leon TGI and the SEAT Mii Ecofuel, SEAT completes the move towards Compressed Natural Gas (CNG), a safe, economical and sustainable fuel.

The new SEAT Leon TGI has a newly developed 1.4 turbocharged direct injection engine, which runs on both Compressed Natural Gas (CNG) and petrol. Together with the SEAT Mii Ecofuel, it expands the SEAT range with two versions that are outstanding in their efficiency, reduced fuel consumption and carbon emissions, not to mention their truly economical per-kilometre costs. The SEAT Leon TGI also includes a full sized petrol tank should there be no CNG gas station close and therefore comes with an impressive autonomy of 420 km in CNG mode plus 940 km in petrol mode. There is already a dense infrastructure of gas stations offering CNG in a number of markets. SEAT together with the other members of the Volkswagen Group is now committed to offering CNG technology in Spain.

With the specific goal of making progress in this area, at the end of 2013 SEAT signed a historic agreement with the energy company Gas Natural Fenosa (GNF) to develop this alternative to petroleum-based fuels.

The SEAT Leon TGI and Mii Ecofuel represent a strategic investment for SEAT

WHAT BENEFITS DOES A CNG-FUELLED CAR OFFER?

Engine: 1.4 TGI Power: 110 PS Torque : 200 Nm @ 1500-3500 rpm Acceleration 0-100km/h: 10.9 seconds Maximum speed: 194 km/h Range: 420 km in CNG mode, 1,360 km overall CO2 emissions: 94 g/km

Mii ECOFUEL TECHNICAL SPECIFICATIONS Engine: 1.0 MPI Power: 68 PS Torque: 90 Nm @ 3000 rpm Range: 380 km in CNG mode, 600 km overall CO2 emissions: 79 g/km Combined fuel consumption: 2.9 kg of CNG per 100 km

47 175

133

912

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SEAT Mii Ecofuel

WHAT IS CNG?

CNG is practically exempt from IEH (a special tax on fuel oils, Impuesto Especial sobre Hidrocarburos in Spain). The current price per km in Spain is 1 €. The cost per km of CNG is 30% less than for diesel and 50% less than for petrol, respectively.

The energy contained in one kilo of natural gas is equal to 1.5 litres of petrol, 1.3 litres of diesel and 2 litres of LPG or Autogas. Therefore, the fuel consumption savings are huge.

LEON TGI TECHNICAL SPECIFICATIONS

844

Compressed Natural Gas (CNG) is methane compressed at a pressure of 200 bars. It is the only truly viable alternative to petroleum derivatives.

ECONOMIC:

Lower fuel consumption means lower CO 2 emissions, especially compared to a petrol engine. The nitrogen oxide emissions are also significantly lower in all versions, which contribute towards improving urban air quality.

It is the most environmentally-friendly alternative fuel.

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Public CNG stations in Europe’s main CNG markets and Spain Source: ngva Europe - Gasnam

MORE ABOUT CNG

ENVIRONMENTAL:

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IS CNG SAFE?

100%. With the SE AT Leon TGI, manufactured in Mar torell, the same high standards of quality and precision are followed as in our other models in terms of finish, performance and safety. The final quality control procedure for the Leon TGI is performed in the CNG Inspection Booth in Workshop 11, after the car comes off the assembly line. The tests are very strict, designed to ensure that the tanks are gas-tight, as well as adhere to other criteria. These tanks are prepared to withstand over double the normal pressure, and are equipped with a separate safety valve. All tests are carried out with a full tank in specifically-designed facilities.

DOES A CNG CAR WORK DIFFERENTLY FROM ONE THAT RUNS ON PETROL?

CNG TANK OF THE SEAT LEON TGI

The main difference is that it has two gas tanks under a special body floor, close to the petrol tank. The SEAT Leon TGI has a 50-litre petrol tank, and the tank in the SEAT Mii Ecofuel holds 10 litres. The car runs in CNG mode at all times, except immediately after refuelling or when the vehicle is started in very cold temperatures. If the CNG tanks are empty, the engine automatically switches RUNS ON CNG OR PETROL to running on petrol until the CNG is refuelled. The switch WITH THE SEAT LEON TGI from CNG to petrol is imperceptible to the driver, as the handling, power and performance do not change.

WHAT RANGE DOES A CNG CAR ACHIEVE? The SEAT Leon TGI can go from Barcelona to Madrid (620 km) on barely 20 € of fuel (average consumption 3.5 kg/100km for a range of 1,360 km). The Mii Ecofuel can do Barcelona to Zaragoza (315 km) on less than 10 € (average consumption 2.9 kg/100km for a total range of 600 km).

CNG CARS UNDERGO THE MOST STRINGENT QUALITY TESTING

15

INTERVIEW Carsten Kwirandt, ALPHABET

Spelling out the future IFW visited Munich recently to meet Carsten Kwirandt who has recently become Alphabet International’s Head of Marketing and Business Development. He spoke to John Kendall.

City living...

AlphaCity offers keyless entry to a car enabling corporate customers to use cars for business travel and also to rent out cars to employees for private use.

B

MW Group subsidiary Alphabet is currently represented in 19 markets and in 2013, the company operated some 536,000 vehicles on its mixed fleet, including BMW Group models. Germany, the Netherlands and the UK are the company’s biggest markets followed by France and Spain, making Europe the focus of Alphabet’s business.

In addition, the company has an operation in Australia and is looking at other markets in Europe and around the world in its strategic growth plan. The company also plans to continue growing the business in its existing markets.

In January Alphabet International appointed Carsten Kwirandt as head of Marketing and Business Development.

He succeeds Dr Nancy Storp, who has taken up a new Marketing Communications role within the BMW Group.

Carsten was previously head of Alphabet’s eMobility Fleet

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Business Project, where he planned and oversaw the rollout of the company’s AlphaElectric Business Mobility solution.

He originally joined the BMW Group in 2001.

How does he see Alphabet’s business developing in future?

“We consider ourselves to be the most innovative leader in business mobility – and that comes back to the fact that we introduced corporate car sharing with AlphaCity and now we have launched AlphaElectric in 9 markets to be the holistic emobility approach for our corporate customers. We will launch AlphaElectric in 4 more markets in 2014 and will launch AlphaCity in more markets this year too.

“When talking about the mobility needs of our customers, I believe we shall be focussing on these new innovative mobility solutions, such as corporate car sharing. It is still in the development phase, but it is being requested by customers

“We consider ourselves to be the most innovative leader in business mobility.”

and the same applies to e-mobility. We can see our competitors and OEMs are lining up in those fields. We have already entered those fields and that’s why I believe there is a strong anchor to grow our business further in the future, but we must not forget our classical business, operational leasing, either.”

Conventional cars are likely to be the mainstay of fleet needs for some time yet, but how much demand is there now for things like e-mobility and car sharing? “If you look back in the recent past, there has been an iconic change in the car industry,” says Carsten, “If I remember, my father paid cash when he bought his first car, then after a while it was quite usual to finance a car, then came leasing and now people are talking about car sharing.

I don’t know what my children will be talking about, but if you look at Facebook and Twitter, you share everything.

“That is an analogy, but if you look at our corporate business,

the needs that originally came from financial leasing and then emerged through operational leasing will be mobility solutions. We must embrace customer needs and we must not impose what we believe is right for our customers. If I were to do that, I would just stick to operational leasing.

“But this is not the future world for mobility. The customer is asking for more ways of becoming mobile and staying mobile, at whatever location he or she is at.

“Then the corporation or employer comes into the picture.

The user-chooser has certain demands. Part of his or her salary package may be a car today, but in the future it may be mobility. We need to carefully listen to what the market is telling us, to develop exactly the right product. The market tells us there is a strong demand for car sharing, so we deliver car sharing. There’s a strong demand for e-mobility, you can see the Teslas, the Leafs, the Zoes, the i3s on the road, so we will deliver e-mobility. But what comes with it is not only to deliver the product itself but the attached services around it.

Carsten gives the example of e-mobility where the customer takes delivery of an electric vehicle but then needs information about how and where the vehicle can be re-charged. “You need to understand the customer’s needs in order to consult him in the right way so that you can fulfil the customer’s expectations.”

Understanding those customer needs is not always easy, involving insight into a range of issues including technology, infrastructure, the law and finance. “Many people are driven

by TCO (total cost of ownership),” says Carsten, “But the future might be TCM (total cost of mobility).”

AlphaCity offers keyless entry to a car enabling corporate customers to use cars for business travel and also to rent out cars to employees for private use. Currently the product is only available with BMW Group vehicles. At the moment AlphaCity is available in 7 markets and it will become available in others.

Italy is a target market for 2014 and it will probably reach Australia before long. “We are extending our services because we want to have these products as standard products available in all markets where Alphabet is present”, says Carsten.

This is mainly because international customers may want to use AlphaCity in more than one country, “I believe that if you have the right technology and you can control this technology, then corporate customers are willing to invest in bigger fleets for corporate car sharing and this is the constant feedback I am getting when talking to our customers – that there is a growing demand for the car sharing offer.”

Renting cars to employees, as AlphaCity enables is a good example of how traditional leasing must adapt to future needs, involving the end user more. How will Alphabet adapt? “More and more consulting is necessary now and will be more so in the future,” thinks Carsten, “Products will become more complex.

Corporate car sharing is not an easy product, e-mobility sounds easy, but you need to consult properly to sell it. The traditional way of selling operational leasing also needs proper consulting.”

internationalfleetworld.com / 17

INTERNATIONAL

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FEATURE Autonomous Driving

V2V & V2I

communications

Vehicle-to-vehicle and vehicle-to-infrastructure technology is right on the horizon. Steve Banner looks at the implications for fleets.

Big in Japan...

Anybody in the vicinity of the Sagami Expressway to the southwest of Tokyo one day last November would have witnessed something unusual. They would have seen the irst car to operate autonomously on a major public highway in Japan.

An all-electric Nissan LEAF, it is equipped with autonomous drive technology that enables it to steer, brake and accelerate all on its own in line with prevailing road conditions. It can merge into traf ic, change lanes and - most importantly - keep a safe distance from other vehicles.

To avoid collisions the autonomous LEAF is itted with cameras, laser scanners and radar, which identify cars, traf ic lights and signs, pedestrians and other objects. The data they glean is processed by an on-board computer, which ensures the controls respond accordingly.

Nissan aims to have a commercially viable autonomous drive system available across its range by 2020 but clearly believes the technology is already safe to use.

Company vice chairman, Toshiyuki Shiga, and Kanagawa Prefecture governor, Yuji Kuroiwa, were both in the LEAF as it travelled along the expressway. Furthermore, earlier that same November the car with a mind of its own played host to Japan’s prime minister, Shinzo Abe, and took him on a trip around a park in the middle of Tokyo between the Japanese parliament and the imperial palace.

There is one signi icant problem autonomous drive has to overcome however, and that is its legality.

While the LEAF has been granted a licence plate in Japan in a countrywide irst for Nissan, getting it licensed elsewhere in

the world could prove problematic. According to the 1968 Vienna Convention, while partly automated driving is permissible, fully automated driving is not; and the convention is used as the basis for legislation in many countries around the world.

“Authorisation regimes and questions related to product liability are currently the subject of intense debate among associations, governments and insurance companies,” observed Bosch chairman, Dr Volkmar Denner (right), at an international symposium on automotive and engine technology held in Stuttgart, Germany in March.

That could explain why Toyota in Japan is laying such stress on Automated Highway Driving Assist (AHDA), which it aims to make commercially available in 2015/2016. The driver remains in control of the car but can call on technology to make his or her life just that little bit easier.

The two key features Toyota’s AHDA boasts are Co-operative-adaptive Cruise Control and Lane Trace Control.

The former uses 700MHz band V2V - Vehicle-to-Vehicle Intelligent Transport Systems (ITS) communications to transmit acceleration and deceleration data from preceding cars so that the cars behind can adjust their speeds the better to maintain vehicle-to-vehicle distance. The latter employs a mixture of cameras and radar along with the necessary controlling software to ensure the car maintains an optimal and smooth driving line at all speeds, adjusting the steering angle, driving torque and braking force as and when necessary.

internationalfleetworld.com / 19

¡

FEATURE Autonomous Driving Amercian fusion...

¡

Keep on trucking

AHDA is a close cousin to something known as platooning and both Volvo Trucks and Scania have been closely tied in with its development in Europe. It involves semi-autonomous cars following a lead truck rather like chickens behind a mother hen and equipped with technology that ensures they all maintain the same speed and keep the same distance between one another and the lead vehicle.

Car drivers can join and leave the platoon whenever they wish to do so. Once they have joined however they slow down and speed up together leaving whoever is sitting behind the wheel of each car free to do other things; send and receive texts for example. Volvo Trucks played a signi icant part in the European SARTRE – Safe Road Trains for the Environment – programme, which resulted in the irst multiple vehicle platoon.

Scania is playing a leading role in the three-year €5.4m European COMPANION research programme, which has just got underway. It is looking at ways in which platooning can be implemented on the public highway.

Over in the USA, Ford is working with the Massachusetts Institute of Technology (MIT) and Stanford University in a bid to advance research into automated driving using an automated Ford Fusion Hybrid unveiled last December. The Fusion is itted with four LIDAR – LIght Detection And Ranging – sensors that enable the car to generate a real-time 3D map of its immediate surrounding area and sense objects within it.

In co-operation with Stanford, Ford is attempting to discover ways in which the sensors may be able to see round obstacles ahead. In conjunction with MIT, it is using advanced algorithms to predict the direction in which nearby vehicles, cyclists and pedestrians might be heading.

“Our goal is to provide cars with common sense,” says Greg Stevens, global manager for driver assistance and active safety, Ford research and innovation.

“Our goal is to provide cars with common sense.”

Greg Stevens, global manager for driver assistance and active safety, Ford

Taking control So what are the benefits of all this automation?

Allowing vehicles to travel so close to one another – they may be as little as 6m apart – enables road capacity to be used more ef iciently.

From the leet operator’s viewpoint this closeness means they bene it from reduced air drag and that means lower fuel bills and CO2 emissions. Platooning can cut fuel consumption by up to 20% according to Volvo Trucks.

Denner highlights a further bene it. The more cars are automated, the easier it is for senior citizens to get about; and countries such as Japan, Germany, Greece, Bulgaria, Sweden, Austria and Italy all have ageing populations.

He might also have added that in some countries people are retiring later and later. As a consequence more leets will have to deal with the challenges presented by an ageing workforce that still needs to get from A to B; and a greater degree of automation in the company cars they may still want to use is likely to help.

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“Drivers are good at using the cues around them to predict what will happen next and knowing what you can’t see is often as important as what you can see,” he continues. “By working with Stanford and MIT we aim to bring the same level of intuition to vehicles.”

Aware that pedestrians do not always use their common sense, Toyota has developed a PCS - Pre Collision System - that uses automatic steering in addition to increased pre-collision braking force and automatic braking to reduce the risk that they will be run over. If the car’s sensors detect a pedestrian who is unlikely to be saved by braking alone - if he or she has suddenly stepped straight into the vehicle’s path, say - and there is enough room to steer the vehicle away then the automatic steering will react accordingly.

According to data compiled by the country’s National Police Agency Traf ic Bureau, the number of traf ic fatalities in Japan has declined for 12 consecutive years, reaching 4,411 in

2012. Out of that total pedestrian deaths are the most common, accounting for 37%.

Sensors that will alert drivers to hazards and if necessary bring the car they are installed in to a stop are becoming increasingly common.

Returning to the USA, the recently unveiled all-new 2015 model-year Chrysler 200 mid-size sedan comes with a host of available safety features.

The roll call includes Adaptive Cruise Control-Plus and Forward Collision Warning-Plus, both of which can halt the vehicle if there is danger ahead, and LaneSense Departure Warning-Plus. It uses subtle steeringwheel inputs to warn the driver if the car is drifting out of lane and to assist with corrective action.

If your 200 is involved in a smash then 9-1-1 Call/Assist will connect the occupants to the emergency services thanks to a built-in data link.

On the other side of the Atlantic, eCall is to be made mandatory on all new cars and light commercials sold in the EU from 1 October 2017. It will automatically summon the emergency services in the event of a serious accident.

fleet insight The future is mobility “Car ownership is no longer the be-all and end-all; the future is mobility. That means taking advantage of technology to deliver solutions that meet the needs of modern businesses. The ‘connected car’ is fast becoming the norm and it is likely that manufacturers will invest heavily in on-board accessibility and embedded telematics, especially for the new generation of autonomous cars. In the leet world, this could mean greater productivity for employees working on the move and more proactive leet management to help ‘drivers’ in distress.

The RVs should get better, as it will be clear that the vehicles have been driven optimally. This could ultimately reduce the cost of leasing.”

Richard Schooling Chief Executive Alphabet

Advanced technology...now It would be easy to take a slightly cynical view of the many developments going on around the ‘autonomous car’. The idea of being able to climb aboard, set a destination then sit back and read the morning paper while a satellite-based navigation system drives you safely to your destination might seem a little far-fetched at the moment. But much the same could be said of most of the advanced technologies that we now take for granted... such as satellite navigation itself. It’s no wonder that road atlases are steadily coming down in price.

A good example of this is the hydrogen fuel-cell hybrid. Manufacturers like Hyundai and Toyota are now making these systems commercially available, but few would have dreamed this possible just 10 years ago. But motor manufacturers have a way of overcoming obstacles and there is no doubt that if the consensus view is that autonomous driving is the way forward, then it will happen.

Ross Durkin Managing Editor Fleet World Group

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FEATURE Autonomous Driving

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German approach

Serious money...

European Union commissioner, Siim Kallas, recently announced billions of Euros of investment cash to improve EU transport connections.

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Sometimes referred to as Car-to-X technology, Vehicle-to-Infrastructure (V2I) technology is becoming more important too.

In Germany some 18 months ago BMW was involved in a project in Frankfurt along with the city council, the government of the state of Hesse and a variety of universities and research institutes all working under the simTD banner. It stands for Safe Intelligent Mobility Testing Ground Germany and had the objective of allowing cars and motorcycles to communicate with each other and with the local infrastructure; with traf ic lights for instance.

“By getting traf ic light systems to transmit information on their phase times a driver assistance system can either indicate the ideal (legal) speed for catching all the lights on green or warn drivers before they drive through on red,” says a BMW spokesman.

The car can transmit information too.

“By transferring speci ic data about traf ic levels, the state of the road surfaces and other factors, it is possible for the vehicle to issue advance warnings of accidents, traf ic tailbacks or black ice,” the spokesman adds. Drivers who receive this information can respond accordingly; by slowing down for example.

Much of the data transmitted can be analysed by city authorities when they are drawing up traf ic management plans - they can soon see whereabouts collisions and traf ic jams most frequently occur - and in the long-term planning of road networks. Two-way communication links between vehicles and the infrastructure can also help drivers obtain information on everything from vacant parking spaces and traf ic disruption caused by roadworks to weather conditions.

However, there is a potential problem. The high-frequency WLAN - Wireless Local Area Network - that is often required to transmit V2I information may not be present and is expensive to install.

Billions of euros of investment cash recently announced by Siim Kallas, formerly prime minister of Estonia and now European Union commissioner for mobility and transport, may go some way towards resolving this and other transport infrastructure challenges across the EU. “I am convinced that this major inancial boost will bring the expected bene its in terms of improved transport connections and that the value added by investing in genuinely European infrastructure will become plainly visible to investors, transport users and citizens,” he says.

EU cash – €25m euros in this case – is also being funnelled into a new European research project called AdaptIVE; Automated Driving Applications & Technologies for Intelligent Vehicles. A consortium of 29 partners based at the MobileLifeCampus in Wolfsburg, Germany and led by Volkswagen, it aims to achieve breakthrough advances that will lead to more ef icient and safe automated driving.

“This complex ield of research will not only utilise on-board sensors but also cooperative elements such as V2V and V2I communications,” says Professor Jurgen Leohold, executive director of Volkswagen Group Research.

Says Bosch’s Denner; “The traf ic of the future is electric, automated and connected. By 2020 at the latest, the technologies required for highly automated driving would have reached maturity.

“In the decade that follows we expect to see fully-automated driving.”

That is something leet operators and drivers the world over will have to get used to; and leets will have to develop policies that accommodate it.

FEATURE Mobile Communications

Better connected Bringing digital radio services and mobile phone technology together internationally presents a challenge, particularly when technical standards differ, as Dave Moss reports.

T

wo key themes emerged from the Digital Radio summit masterminded by the European Broadcasting Union (EBU) to coincide with the recent Geneva Motor Show. The first was that the digital radio revolution is gathering speed – with a switch away from FM by bigger stations increasingly likely in coming years. The second was that digital radio and mobile phone technologies are steadily moving closer together – all changes which seem certain to benefit drivers and radio listeners.

DAB radio The digital radio message had clearly reached car makers at the Geneva Show, with DAB+ receivers appearing in many ranges with little or no digital radio offering last year. In 2013, digital radio was mostly found only in higher specification cars from premium makers such as BMW, Audi, Jaguar Land Rover, Volvo and others. For 2014, growing numbers of high-volume makers including Ford, Opel, Toyota, Peugeot, Citroën and Kia offer standard fit and optional DAB+ equipment. Yet as Europe moves steadily towards newer, more adaptable DAB+, Britain is staying with earlier, non- compatible and less advanced DAB. New UK-supplied vehicles are increasingly fitted with dual-system receivers, but digital reception may not be possible in older cars visiting Europe.

In digital radio equipment, there’s a growing trend towards greater operational re inement, as broadcasters develop the

The majority of Audi models are now fitted with digital radio as standard.

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system’s potential and enable further technical features. More helpful facilities are appearing – amongst them receptiondependent automatic DAB-to-FM programme following, text services, and pictorial content on colour screens, particularly Electronic Programme Guides. However some commentators have previously suggested user operation could be easier: James Cridland, managing director of Media UK, says that in-car digital radio controls aren’t always easy to ind, often hidden in multi-level screen-based menus – and station searching could be easier.

Digital switchover Digital switchover proved an important topic at the EBU summit. Delegates heard that Norway has announced 2017 and Denmark 2019 as target dates for analogue FM switch off – though subject to conditions, principally that 50% of listening must first be digital. Switchover is under increasingly lively discussion across the EU: the UK says it will switch – but with no date yet fixed, while Nancy Wayland Bigler, from Swiss regulator Ofcom, noted that country's major FM licences currently end in 2019.

Radio across Europe Several summit presentations considered aspects of the future of broadcast radio – built on a likely permanent digital changeover. Behind the scenes, moves to converge radio and internet technology to the great benefit of listeners are already underway, led by the EBU's ‘Smart Radio’ initiative.

This is already supported by 18 major public service broadcasters and several big commercial broadcasters in France, Belgium, Germany, Italy, Sweden and Britain.

This group is now engaged in discussions with carmakers, component suppliers, mobile phone and other device manufacturers, and mobile network operators – as it seeks to secure future-proof, multi-channel, cost free radio listening across Europe. The plan is to have suitable radio receivers installed in all mobile devices – ef iciently connected using current technologies via all useable media delivery networks. Wide accessibility to radio is a primary target, but those in the growing number of ‘connected cars’ could see major bene its, and a major boost to European road safety is anticipated, through easy delivery of precise, newly simpli ied traf ic information covering local to cross-border road conditions.

Hybrid radio The Smart Radio project is a key to what broadcasters have chosen to call ‘Hybrid radio.’ Here, not-for-pro it organisation RadioDNS has 26 members, active in major radio markets including Europe, the US and Australia – with another 60 supporting organisations worldwide. All are promoting newly developed technical standards, which make hybrid radio a practical reality. A suite of RadioDNS technology can now fully bridge the previous gap between FM, DAB, and HD Radio broadcasts and mobile broadband internet connections – thus placing listeners at the heart of seamless interactivity with broadcasters’ programming through sound, pictures and text. Over 1,900 stations already use parts of this technology package, which achieves best versatility using digital broadcasting, allowing listeners to access enhanced, personalised interactive content linked to any chosen station.

This can include ‘on-demand’ news or weather, background to programmes and personalities, speci ic event information, and ‘tagging’, allowing listeners to request more information or purchase items related to broadcasts.

RadioDNS technology and the EBU Smart Radio initiatives together underpin another related venture. The worldwide ‘Universal Smartphone Radio Project,’ is an ambitious move to bring much improved broadcast radio functionality to smartphones – using Hybrid radio principles. Estimates suggest few current smartphones feature radio reception, and the obvious alternative of streamed radio on today’s internet-enabled mobile devices is restricted by data allowances, battery consumption and variable mobile broadband reception.

The Universal Smartphone Radio Project seeks to include all global digital radio reception standards inside future smartphones. Discussions with handset makers and mobile network operators are already under way, and towards the end of the EBU summit RadioDNS chair Nick Piggott announced that manufacturer Samsung had just introduced several models featuring Hybrid radio into its Galaxy smartphone range. Though broadcast reception on these is FM, not digital, limiting capability, the move is seen by RadioDNS as a new willingness by handset manufacturers to take a more flexible approach to radio in future.

Nick Piggott said afterwards: “The units are available in Europe on the Vodafone network, and will also be available in Asia. It’s a landmark for RadioDNS Hybrid Radio, and an exceptional opportunity for radio broadcasters to connect with listeners on smartphones. I hope many radio stations will seize this chance to show they can make broadcast radio as interesting to use as streaming apps on the smartphone.”

Together the 2014 Digital Radio summit and Geneva Motor Show underlined significant progress made by broadcasters and carmakers in just twelve months. Digital radio still has some justified listener concerns, and FM will be around for many years yet, but digitally equipped car numbers are growing fast. Broadcasters are delivering ever more digital programming, and DAB+ continues on course to become a standard for Europe and beyond. Best of all, the innovators are hard at work to make fully connected cars – and smartphones – an easy to use reality at last.

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INTERVIEW Jürgen Stackmann, SEAT

SEAT finds its identity The Leon has transformed SEAT, says Chairman Jürgen Stackmann.

John Kendall caught up with him at the recent Geneva Show.

W

orldwide SEAT sold some 355,000 cars in 2013, with 279,460 of these in the EU27. That represents an 11.3% increase on 2012 against an overall market decline of 1.7%. The company performed particularly well in the UK and Germany with sales up 17% and 20.6% respectively.

“Outside Europe, the main pillars of the business remain Algeria, the 6th biggest market for SEAT, with a 5.4% market share,” says SEAT Chairman Jürgen Stackmann, “We are happy to see that neighbouring North African States are showing more interest in the brand, we are trying to export the philosophy of that market to the region.” With sales in Turkey reaching 10,000 in 2013 and a further 11,000 in Israel, Mr Stackmann says that SEAT is starting to connect markets in the Mediterranean area to build it into the second largest region for the brand.

The company also performed well in Mexico, where it has a market share of 2%. “In Mexico the SEAT brand is built on Ibiza, but last year the Toledo was successful and is starting to become a second pillar for the brand there,” says Mr Stackmann. He describes the Leon as more of a luxury niche model in Mexico, a model that he sees as a catalyst of change for SEAT. “Leon is doing more than just selling, it’s changing the image of the brand,” he believes, “With the launch of the Leon family, the definition of who we are and what we bring to the market is much clearer to everybody outside the brand.

“In many markets the positioning of the brand has been as a small car maker for young people and we’re now expanding the brand into all segment coverage for young spirited customers, which is much more of a reflection of today’s reality in Europe.

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We are seeing an ageing population in Europe and we have to open the brand for more mature buyers.”

Mr Stackmann thinks that the decision to build the Audi Q3 at SEAT’s Martorell plant near Barcelona has transformed the plant along with the quality of perception there and the quality mind-set of the workforce. “It has really helped us to build a quality drive and perception for all the other cars,” he said.

Although the announcement that SEAT would build its own compact SUV was not made until March, Mr Stackmann described the decision as the most important next step in the brand’s development.

Like other manufacturers, SEAT has to comply with tightening emissions regulations, which could affect fleet choice regarding which fuel to use in the future. IFW asked Mr Stackmann how he expects the choice of engines to be affected, “Clearly it’s a huge challenge for the industry. If you look just at CO2 you would say the impulse is towards diesels. If you look at the emissions regulations coming, it’s adding a lot of cost and the question is who is going to carry those costs? I’m not entirely sure that the customer wants to carry those costs.”

SEAT has launched the Leon TGI using compressed natural gas (CNG), but the CNG fuelling infrastructure is not developed in many countries. Mr Stackmann also said that SEAT is not likely to launch an electric car in the foreseeable future: “Currently we see electric and semi-electric propulsion coming into the market from the top down. We will be ready when the market is ready because we can tap into that technology very quickly from the VW Group.”

INTERVIEW Karl Thomas Neumann, OPEL

Opel – the connected brand OnStar comes to Opel and Karl Thomas Neumann explains the PSA – Opel connection.

“

It’s time to connect every car, not wait for the EU to demand eCall, but go for it and utilise what we have in the group.” Opel chairman Karl Thomas Neumann was speaking to journalists at the Geneva Show in March, explaining Opel’s strategy for car connectivity. “We rolled out On-Star 18 years ago in North America, Canada, Mexico and a few years ago in China. We now have 6.5m customers. That means it is the largest connected vehicle network in the world. Every second we have two calls from our customers – 4,500 emergency calls every month.

“We want to bring this to Europe and will introduce it in 2015. In the meantime, the system is being built up and it will be standard on every car except entry-level models. We’re doing this because it will give us a whole new means of access to customers and a whole new business opportunity. With this device we will bring 4G internet access with a Wi-Fi hotspot into the car, eCall and emergency services into every car.

“Further we will bring data services. All our cars are ‘app ready’ – we have an app where you can control your car remotely.

You can have monthly vehicle diagnosis; we can send you offers for maintenance – so many things that can be done. New services working with hotels, restaurants, many things that can be created once you

have the data channel into the car and that data channel will be ours.”

Dr Neumann said that Opel was on target to break even in Europe by 2016 and said that the company’s results had improved by more than 50%. “It’s still a loss but we’ve cut it by 60%,” he said. In 2013 it was the first time in 14 years that Opel had maintained its market share. “We did it with improved financial results, so that means we didn’t ‘buy’ it,” he said. The key elements in improving the company’s fortunes were the introduction of new product and a more intensified focus on the brands.

Opel has been working on product quality, but it’s not easy to get that message across to vehicle buyers. How did Dr Neumann, an engineer himself, hope to raise brand perception?

“First of all we have fixed our past quality problems,” Dr Neumann told IFW, “We have a lot of focus on quality and we see this on new launches like Mokka, because of our heritage and our engineering passion. We should exhibit this in making everything perfect.” He gives the example of a key, “It may work 100,000 times, but how does it feel? Does it feel as good as the next key? How do the panel gaps look?

Are they precise? What do the edges look like? We are working very hard to make everything perfect and you can see it already with the newer cars.”

Opel’s partnership with PSA Peugeot

Citroen has gone through several revisions since it was announced at the end of 2012 and Dr Neumann outlined some of the important elements of the agreement, which includes logistics and purchasing.

Joint purchasing means that together, the two companies have the second largest purchasing volume in Europe and Dr Neumann explained why that is important even to a company like GM, which builds 10m cars a year.

“We need local scale, scale in Europe,” he said. “Tyres are made in Europe, steel is purchased in Europe and we can do this together now so we have local scale.”

Dr Neumann outlined the plans for Opel and PSA to build three cars together, “Our MPVs – the Meriva, the Zafira and also our next generation Combo light CV. We will do this on a PSA platform with PSA engines.

We will make sure it’s an Opel because we will engineer the vehicles using some of our modules, but using their platform.”

The two companies are already working closely together on these projects and will produce them together. “One will be built in Spain, the other car in France, so we have volume and scale,” says Dr Neumann.

“We’re doing this because Opel is the third largest car maker in Europe. We build more than a million cars. Still that is not enough if you have the spectrum we have, because on any car we need to make 300,000 plus, but on lower volume cars we make much less, so we need volume in platforms. All our cars sit on huge global platforms from General Motors. All are built in the millions. The only two that I couldn’t put on such platforms were the MPVs, that’s why we want a partner. And for LCVs anyhow, you seek global partners.”

“OnStar is the largest connected vehicle network in the world.”

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The Russian connection Opel believes that Russia will be the largest car market in Europe in 2020.

“Opel has a very good position there,” says Dr Neumann. It is also a good market for Chevrolet, so how can the company avoid the competition that proved problematic in Western Europe?

“That’s obviously something we’re looking at but here the issue is different,” he explains, “That’s why we decided that Chevrolet stays in Russia – for two reasons.

“One is that Chevrolet is much bigger in Russia relatively than it was in the rest of Europe. When we sold about 90,000 Opels we sold 200,000 Chevrolets.

“Secondly, the product portfolio is different. We import a few more budget type cars into Russia or build them in Uzbekistan and ship them. In general the portfolios are better separated and the transaction prices between Opel and Chevrolet are much more distinctive than they used to be here, so it’s good, we have to develop this further and fine tune it, but generally it would be stupid to give up a position where you have two brands which you can really position.”

Emissions strategy Finally, Dr Neumann discussed how Opel would meet the EU goal of average emissions of 95gm/km CO2 by 2020. “Our strategy is to reach as much as possible with traditional combustion engines,” although there will be some electric vehicles he said. Efficiency is the key, “We believe we can achieve our goal with extremely efficient drivetrains, efficient cars and the minimum of electrification.”

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NAFA International Fleet Academy

Getting the most out of your fleet..

Reproduced with the kind permission of NAFA Fleet Management Association, this is the first in a series of extracts from the International Fleet Academy Global Fleet Guide. It is a practical tool, designed to help get a global fleet team working together to pursue a standard of excellence in their dealings within their organisation and with external suppliers and customers.

CHAPTER 1

Global opportunities

W

Global FM training

Global cost base

Procurement capability

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Process improvements

hether you are new to global leet management or currently managing a leet in several countries, experience and research point to the fact that many companies could devote more attention and resources to their global leet operations. Doing so will result in more effective global operational processes, a re ined infrastructure, and more streamlined administrative operations. This increased attention will enable both cost reductions and sales improvements.

Effective global leet management can be a truly transformational undertaking for an organisation. Corporate global leet managers, directors, and procurement specialists use a variety of measures to meet the challenge in a comprehensive way. These include process improvements, measurement of the global cost base, universal policies, better procurement capability, and global leet management training.

Corporations will continue to seek international business growth and take advantage of increasing industrial output. The transportation infrastructure and corporate leet presence in existing and emerging markets will expand.

Global leets in the coming years will continue to be in luenced both by spurts of economic growth and traditional cyclical declines. Managing a global leet across world markets will require specialised skills and the need for professionals who can adjust to the work environment.

Universal policies

Key challenges New international markets bring with them key challenges to leet management on a global scale:

• Emerging markets will require more time and resources to manage.

• Vehicle sourcing will require more selective applications and/or new features.

“Effective global fleet management can be a truly transformational undertaking for an organisation.”

• Risk in these markets will increase, resulting in greater corporate brand and legal exposure.

• Financing and leasing will usually have limited support or understanding.

• Contracts and agreements will have to cross new boundaries in contract language, legal issues, and trust.

• Driver and safety training, telematics, and registration/licensing issues will abound.

• Corporate responsibility, in particular sustainable leet operations, will increase in importance.

In addition to these leets emerging in new markets, traditional global leets are setting new standards by looking to systematically improve environmental performance throughout the entire lifecycle of their leets from vehicle selection to vehicle remarketing.

Conclusion Savvy global leet professionals make good choices that are rooted not only in their present capabilities, but also in those they can readily develop. It can be seen that relentlessly seeking and implementing new strategies, integrating and streamlining processes, rewarding success, and reinventing methods to improve the inal results, provides signi icant rewards.

Readers can review the full article – and much more – by purchasing the Global Guide through the NAFA website: www.nafa.org/

internationalfleetworld.com / 31

PROFILE SEAT

Breaking new ground SEAT enjoyed a record-breaking year in 2013, thanks largely to the remarkable success of new Leon range. With a more targeted approach to the fleet market and new models poised for launch, the brand hopes to strengthen its proposition even further in 2014...

“We have a fantastic product range which will continue to grow around the Leon family, the heart of the SEAT brand.”

SEAT chairman, Jürgen Stackmann

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Manufacturer SEAT Total sales 2013 355,000 Headquarters Martorell, Spain EU market share 2.0% No. of models 7

view

from the top

Leon’s driving force...

Accounting for almost a third of the 355,000 total sales achieved by SEAT in 2013, the Leon range has proven itself to be the brand’s greatest asset, helping to swell SEAT’s global presence and boost its leet reputation.

The irst all-new Leon since 2005, the ive-door hatchback recorded a 44.4% rise over 2012 igures, becoming the brand’s best selling model in several territories, including Germany, United Kingdom, France and Turkey.

Leon’s remarkable performance in 2013 aside, however, many of SEAT’s other models recorded a marginal decrease over 2012 sales igures, the most marked of these being in the Ibiza range. Sales of the Ibiza SC fell from 38,640 in 2012 to 31,676 in 2013, while the Ibiza ST experienced a downturn from 21,227 to 16,831 units.

The Altea range – now SEAT's oldest model – also experienced a slight downturn in sales, while SEAT’s city car offering, the Mii, recorded a dip of -1.1% over 2012 igures.

Highlights for the brand in 2013 included the launch of two new versions of the Leon – the three-door sport coupé SC, and ST estate version – marking the irst time the car has been sold in multiple body styles and further broadening its appeal. With no D-segment Exeo Estate, the ST will be particularly important for SEAT's leet presence.

SEAT also presented two models powered by engines running on natural gas – in Geneva the Mii Ecofuel, and the Leon TGi in Frankfurt, as well as the Ecomotive version of the Leon at the Frankfurt Show.

Despite a strong sales performances in some segments, the brand reported diminished revenue per unit in 2013, due largely to strong competition in Europe (SEAT’s largest trading region) and the ongoing challenging economic climate. Taking advantage of the financial opportunities offered by countries unburdened by the Eurozone crisis, SEAT continued to push for sales in global territories in 2013.

For the irst time, the brand now ranks three non-European countries amongst its top ten best selling territories – Mexico (5th), Algeria (6th) and Turkey (8th).

In Algeria, sales experienced an uplift of +26.9%, closing 2013 with 20,500 units sold, while Turkish sales almost doubled (+90.4%). In Mexico, sales increased by +0.2% to 21,200 units, marking the territory out as one of SEAT’s top regions in terms of volume sales. One in every ive SEAT vehicles is now sold outside the European continent.

“In 2014, in spite of the still-persisting dif iculties in the economic environment, we intend to continue working hard to make constant progress. We have a fantastic product range which will continue to grow around the Leon family, the heart of the SEAT brand,” declared SEAT chairman, Jürgen Stackmann, at the presentation of the 2013 results.

SEAT Global sales, by country 2013 Country Germany Spain United Kingdom France Mexico Algeria

Units sold 76,622 58,945 45,676 21,787 21,189 20,501

Share of SEAT sales 21.6% 16.6% 12.9% 6.1% 6.0% 5.8%

Neil Williamson, Director, SEAT UK, explains how SEAT plans to carry the momentum of its bumper year into 2014 and beyond.

How does SEAT plan to build on its success in 2014?

The key will be doing good quality business. You could accuse us in the past of doing too much short term, but we’re not doing that any more, and while we’ll always do some rental because everybody does, we’re looking to grow our volumes through the leasing companies, user chooser leets and restricted badge deals.

Why such a concentration on fleet this year?

Well, we have complete range of Leon: three door, ive door and ST, and the ST has really opened some doors for us. We have been pleasantly and relatively surprised by how many leets have said “right, now you’ve got ive door and the estate, let’s talk”.

What it has meant is that leets which were closed to us before are now open, and I’ve been really surprised at the type of business: single badge and user chooser leets.

The last leet car we had that had that type of leet draw was the Exeo and the ST really gives us something to talk about.

Which model is SEAT’s best fleet performer?

People want to buy Leons and that’s the driver that has transformed our business. Last year we had our ingers crossed, and in some months now we’re the fourth biggest seller after Golf, Focus and Astra which is brilliant and proves Leon is a proper volume leet car.

¡

Source: SEAT

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PROFILE SEAT

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Where are they made?

4 3

2

1

Manufacturing plant locations

FIN fleet in numbers

increase of 44.4% Percentage Leon sales over 2012.

1 in 5

The number of SEAT vehicles now sold outside Europe.

7:58:4mins The number of minutes SEAT Leon Cupra took to lap the Nürburgring, setting a new record for front-wheel drive cars.

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1

VW Bratislava – Bratislava, Slovakia Mii

2

Martorell plant – Martorell, Spain Ibiza, Altea, Altea XL, Altea Freetrack

3

Palmela AutoEuropa – Palmela, Portugal Alhambra

4

Solomonovo plant – Solomonova, Ukraine Leon, Altea, Toledo

SEAT SUV due in 2016 SEAT irst hinted at a lower-medium crossover when it unveiled the IBX concept car in 2011, but has now con irmed that its irst SUV will be available from 2016, based on the MQB platform used in the Leon.

A presence in this lucrative sector is vital. SEAT says crossover sales have grown over 40% since 2010, driven by the popularity of models such as the Nissan Qashqai, Kia Sportage and fellow Volkswagen Group product the Skoda Yeti. Such models are particularly popular with the young, designconscious buyers SEAT is targeting, and a growing part of the leet sector.

Development has been underway for two years at the company’s Martorell headquarters, and the as-yet-unnamed crossover will be a vital conquest car for SEAT featuring four-cylinder diesel and petrol engines shared with the Leon.

Industry insiders believe a concept version could be shown as early as Geneva next year, with a production reveal likely to appear at the Frankfurt Show in 2015, however news on the exact launch date is closely guarded.

Elsewhere in the range, new arrivals are aimed at strengthening the brand’s design and sport-led identity. Launched to great fanfare at the 2014 Geneva Show in March, where the model was hidden beneath the ‘skirt’ of a suspended acrobat, SEAT hopes the Mii by MANGO will boost interest in the model. Described as a “stylish urban car with a unique feminine touch”, the manufacturer aims to capitalise on the fashion chain’s image and push the Mii as a young, stylish alternative in a crowded segment.

SEAT is also continuing to develop its high performance models. The spearhead is the newly launched Leon Cupra, Coming soon...

SEAT will enter the growwhich features a 280hp turbocharged petrol engine and is ing crossover segment being marketed based on a record-setting lap of the famed with a Leon-based Nürburgring racing circuit in Germany. It consumes 6.6 compact model in 2016. litres of fuel per 100km, and emits 154g/km of CO2.

Styling is likely to be influThe Ibiza Cupra, sold only in the three-door SC enced by the 2011 IBX concept (pictured), with bodystyle, was also refreshed last year in line with the production scheduled rest of the range, its 180hp twin-charged 1.4-litre TSI for Martorell, Spain. engine emits 130g/km CO2 thanks in part to a sevenspeed DSG gearbox. While both the Leon and Ibiza Cupra models sell relatively small volumes, both help strengthen the brand’s performance credentials, which are reflected in the popular sports-styled FR trim levels.

SEAT fleet model range

Mii

Ibiza

Variants: 3/5dr hatchback Markets: Europe, Asia Fuel: 4.1-4.7l/100km CO2: 95-108g/km

Variants: 3/5dr hatchback, estate Markets: Europe, Asia, Africa, South America, North America Fuel: 3.4-6.3l/100km CO2: 89-149g/km

Leon

Toledo

Variants: 3/5dr hatchback, estate Markets: Europe, Asia, Africa, South America, North America Fuel: 3.3-5.9l/100km CO2: 87-137g/km

Variants: : 5dr hatchback Markets: Europe, Asia, Africa, North America Fuel: 3.9-6.1l/100km CO2: 104-137g/km

Altea

Altea Freetrack

Variants: 5-seat MPV Markets: Europe, Asia, South America, North America Fuel: 4.5-6.5l/100km CO2: 119-152g/km

Variants: : Crossover Markets: Europe, North America Fuel: 5.9-8.4l/100km CO2: 155-197g/km

Alhambra Variants: 7-seat MPV Markets: Europe, Asia Fuel: 5.4-8.5l/100km CO2: 143-198g/km

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Porsche Panamera S E-Hybrid The plug-in Panamera is an impressive car, but Porsche isn’t alone here, explains Alex Grant.

SECTOR Luxury PRICE €110,409 FUEL 3.1l/100km CO2 71g/km

P

orsche’s first plug-in hybrid drivetrain forms part of the aid of an external power source. From flat, this takes the Volkswagen Group’s wider electromobility around 70km to recharge, which means drivers beginning plans, which will eventually offer a part or fullyand ending a journey on urban roads can avoid any exhaust electric model in every sector in which it competes. emissions in populated areas. The downside is that this also The Panamera, which sits in a fleet-heavy market sector, puts a substantial dent in the Panamera’s fuel economy. offers a glimpse of some of the most advanced hybrid technolAs does the car’s alter-ego. In Sport mode, the combustion ogy available within the Group’s portfolio, a preview of the feaengine and electric motor are combined to produce 416hp – tures which could be available in smaller models in the coming enough to propel its 2.1 tonnes to 100kph in a mind-bending years. So it’s really important, despite the small volumes.

5.5 seconds. The weight is noticeable while cornering but, Porsche has had a hybrid Panamera before, but the S for a grand tourer, grip and stability are ample.

E-Hybrid makes better use of its electric power. The motor There’s very little to adjust to compared to the diesel is more powerful, producing 95hp, and version. Visual modifications are limited its new lithium-ion battery allows the to lime green highlights on the brakes, car to drive 36km without using any badges and clocks – which feature a fuel. For the electric motor’s modest power gauge where the speedometer power output, it doesn’t feel overwould usually be found – and the only whelmed by the car’s weight and can adjustment to be made is getting used reach 135kph. That final detail means to plugging it in at the end of the day to it’s suitable for drivers with short, high maximise the available economy. speed, commutes as well as urban ones.

But Porsche isn’t alone here. Tesla has Depress the throttle further and the fleet ambitions for the similarly-priced motor gets a helping hand from a 3.0-litre Model S, which can travel much further supercharged V6 petrol engine, with on battery power. Likewise, Mercedeswhich it shares its eight-speed PDK gearBenz will soon have a plug-in hybrid Sbox. Programmed to shift into as high a Class competing in this sector, adding gear as possible while cruising and capaThere are greener hybrids, similar tax efficiencies to a more practible of decoupling the engine and coasting cal, comfortable luxury car. but the Panamera has a under low loads, it allows the directThe S E-Hybrid’s high price, and the role to play in reducing injection engine to achieve palatable low volumes of the sector in which it economy of around 8l/100km under competes, won’t make this a common inner-city smog for smooth driving. Not enough to rival a sight. But heavy incentives for plug-in drivers who would Toyota Prius, but impressive for a heavy drivetrains mean this tax-efficient luxotherwise default to the performance car. ury car offers an interesting alternative sector’s big-selling diesels.

Unusually, the engine can also fully to the default diesel for those with the charge the hybrid system battery without right kind of commute.

what we think

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Mitsubishi Outlander PHEV Mitsubishi makes a strong case for hybrids with the Outlander PHEV, reckons John Kendall.

SECTOR SUV PRICE €30,400–€32,100 (approx.) FUEL 4.0–6.4l/100km CO2 44g/km

S

ize means that Mitsubishi is not a big player in the electric power direct to the motors and in parallel hybrid fleet sector, but as advanced hybrids like the Opel mode, the motor drives the front wheels with assistance Ampera have shown, low CO2 emissions can be parfrom the electric motors. ticularly attractive for fleet drivers where CO2 emissionsMitsubishi says that the batteries can be completely rebased tax systems are in use. Several countries also offer charged in five hours from a 13-amp supply or four hours incentives for buying hybrid and electric vehicles too, which from a 16-amp supply. The car has a rapid charging facility might help to offset the higher price. too which means that it would take 30 minutes to restore So could Mitsubishi’s Outlander PHEV plug-in hybrid an 80% charge in the batteries, which can also be directly make a good fleet vehicle? The problem, as with all charged using the petrol engine. advanced hybrid and electric vehicles is the price, even with The compromise compared with conventionally powered grant funding available in some countries. Low CO2 emisOutlanders is that the third row seat option is not available, sions – the Outlander PHEV emits making the Outlander PHEV a five-seater.

44g/km – makes this car an attractive This is because the batteries are stored proposition for drivers where benefit-inunder the floor, although the car still prokind taxation applies. That figure vides 463 litres of luggage space with the equates to 1.91l/100km on the EU comrear seats in place. bined cycle. How easy that is to achieve Driving the car is as straightforward as will depend on your driving cycle. The any other electric car. Once the power is Outlander’s lithium–ion battery will proswitched on, it’s a matter of selecting vide an electrically driven range of up to your drive mode and setting off. In EV 52km. Short range commuting could be mode the car moves off silently – Mitcovered almost entirely by electric subishi provides an audible warning for power, meaning that the car would rarely pedestrians that operates up to around use its 119hp 2.0-litre petrol engine.

30km/h. The paddle-shift levers behind Like the Ampera, the Outlander PHEV’s the steering wheel allow the driver to main advantage is that it is not restricted select higher or lower levels of regeneraOutlander PHEV is an by the available battery capacity. The car tive braking, meaning it is possible to impressive car, but does is fitted with two 60kW electric drive drive the car without using the brakes. it make financial sense? motors, one at the front and one at the When the batteries have been run That will depend on the rear, giving four-wheel-drive when down, the engine will start up to provide required. In addition, the car has three power quietly enough to almost pass available incentives and drive modes: EV, series hybrid and paralunnoticed. It’s an interesting package tax regime. It moves the lel hybrid. EV mode uses battery power with the potential to use very little petrol EV technology game on. to drive the front and rear motors. In and takes a step forward in making series hybrid mode, the engine supplies advanced hybrids mainstream.

what we think

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Fuso Canter Establishing a presence in a distant automotive market isn’t easy. Ian Norwell reports.

SECTOR Light truck GROSS WEIGHT 3.5–8.55 tonnes ENGINES 3.0-litre four-cylinder POWER 150hp and 175hp

LOCAL BOY Gaining acceptance in a market is usually given a boost if you can set up a factory there, employ people and source some local parts. The Daimler Trucks leviathan has a majority stake in the Mitsubishi Fuso truck and bus corporation, and with that comes a European assembly operation for the Fuso Canter light truck in Tramagal, Portugal. When we went there five years ago it was little more than a CKD and assembly operation, with complete trimmed cabs shipped from Japan and crates of parts to go with them. After a €27 million cash injection from Daimler, the 158,000m2 facility is now a full manufacturing operation, including cab construction and paint shops. The change of approach now draws in around 50% of components from Europe.

The Fuso name might not ring big bells in the West, but it’s a big player with a heavy truck portfolio in the Far East. With 140,000 chassis sold last year, the modest Canter outsells all Daimler’s other truck models, NAFTA and Europe included.

RANGE The 3.5–7.5-tonne gross vehicle weight (GVW) Canter range is built here, with a new 8.55t GVW variant just added. For chassis up to 6.0t GVW, Euro 6 compliance has been addressed by EGR (exhaust gas recirculation), an oxidation catalyst and a particulate filter. Above that weight, the extra laundry provided by an SCR (selective catalytic reduction) package, and AdBlue is needed. No AdBlue consumption figures were available, but Fuso claim to have improved diesel economy by 9%, compared with old Euro 5 models. If the range is sold on anything, it’s payload, and you only get that from lighter construction, it’s that simple.

The new 8.55t GVW version, the 9C15/9C18, claims an

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incredible 6.0t capacity for body and payload. Worth considering is their Duonic twin clutch AMT (automated manual transmission) which now gets specified on around 40% of chassis. No breaks in torque between shifts, and clutches that are claimed to last the life of the vehicle are added benefits.

ALL-WHEEL DRIVE A 6.5t 4x4 is available with a simple five-speed manual box and a reduction gear to effectively give a low range.

We wouldn’t have attempted the off-road course provided in the Sintra mountains, had it not been laid out for the purpose. A lively ride limited speed of progress, but we came away impressed with the grades and muddy ruts it coped with. Aimed at forestry, utilities and light construction, it could find a home where high mileages are not involved. Two wheelbases and a single or crew cab are available.

GREENERY Fuso’s Kawasaki HQ in Japan is also Daimler’s centre for alternative drives. One of the first products that resulted was the Canter Eco-Hybrid. A downsized diesel (150hp) and a 40kW electric motor work in parallel to give a claimed 23% fuel bonus. The €8,500 extra cost is said to be recouped over two years. Globally it represents 5% of Canter production, so there are 7,000 floating about somewhere wearing last year’s registration plates.

From that same alternative drives laboratory came a surprise guest on our factory tour. The 110kW (150hp) all-electric Canter E Cell was listed as a ‘second prototype’. A static chassis that may appear at the Hannover IAA show in October this year, its Achilles heel will most likely be the vagaries and volatility of tariffs from electricity suppliers.

Alfa Romeo Giulietta 2.0 JTDM-2 150hp Have the changes to the Alfa Romeo Giulietta made a difference? John Kendall finds out.

SECTOR Compact medium hatchback PRICE €17,050–€26,100 approx. FUEL 4.0–6.4l/100km CO2 104–148g/km

A

104g/km. Topping the diesel range is the 175hp 2.0 JTD model. lfa Romeo launched the revised Giulietta range at the As before, the car comes with the Alfa D. N. A. driving selecFrankfurt Show last year, with a number of revisions tor with Dynamic, Normal and All Weather options, designed to the model that first appeared in 2010. These to change various responses such as acceleration and steerinclude minor exterior changes such as a new front grille ing to suit the mode selected. design and revised front fog lamp surrounds, new colour Initially there is not too much to distinguish it from the earoptions and new 16, 17 and 18-inch alloy wheels. lier 140hp model. Externally the changes are small and the Inside, all Giuliettas are available with Alfa’s new Uconnect interior changes comparatively subtle. Interior quality is defimultimedia system with 127mm screen or larger 165mm nitely better than earlier Alfas, but it still struggles to comscreen for models with satellite navigation. The system offers pete with rivals from Germany. The extra 10hp is welcome Bluetooth connectivity, wireless music streaming, and DAB and more to the point, the additional sound insulation, which digital radio. There are some trim changes including new makes it more comparable with its diesel door trim panels and a new “sporty” rivals. It’s a better rival than it used to be steering wheel. The seats have been reto models like the SEAT Leon FR, Vauxhall designed for greater comfort. Alfa has also Astra, Ford Focus and VW Golf, but surrevised sound insulation to reduce inteprisingly for a sporty Italian car, lacks the rior noise for all models. driver involvement of these models.

Under the bonnet, a revised 2.0-litre JTD But it does offer competitive CO2 emisengine now develops 150hp instead of sions and low fuel consumption, which 140hp, while emitting less CO2 – 9g/km helps to give it fleet appeal. This is helped less at 110g/km. Fuel consumption on the by the comprehensive trim options – there EU combined cycle is reduced to are five in total - Impression, Progression, 4.2l/100km. The new common rail fuel Distinctive, Exclusive and Quadrifolglio injection system can provide up to eight Verde, giving a wide range of prices. Availinjection pulses in each injection sequence, ability varies according to market. Standard helping to reduce the characteristic diesel equipment includes six airbags, the Alfa combustion noise, and 40% fewer compoThe 2014 Giulietta is a DNA system, and manual climate control. nents so should prove more durable. better car than before.

Progression adds rear electric windows, a Other engine options remain. This Improved refinement is CD/MP3 sound system and steering wheel includes the 120hp and 170hp variants of welcome and the 150hp remote controls. Distinctive brings a longer the 1.4-litre MultiAir petrol engine. The list of additional equipment including alloy 170hp variant with TCT automated twindiesel will be attractive wheels, front fog lights and dual zone cliclutch transmission benefits from CO2 in markets with CO2 mate control. Exclusive brings leather/fabemissions reduced to 119g/km. The based tax systems. ric upholstery, rear parking sensors, rain 105hp 1.6-litre JTD diesel variant which sensing wipers and light sensing lights. delivers the lowest CO2 in the range at

what we think

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MANAGEMENT Global Fleet Forum

global connecting the international fleet community

Join the European structure blocks restructuring Dean Bowkett, Technical Director and Chief Editor, Eurotax Glass’s Group

Global Fleet Forum is International Fleet World’s new international network and digital forum, launched in March 2014.

At the heart of the Global Fleet Forum is a team of fleet professionals who play a key role in the industry, either as fleet managers, consultants or fleet suppliers. These fleet experts provide a regular feed of information that is posted on the website forum in the form of discussion topics.

Typical areas of interest include, but are not limited to: taxation, finance and accounting, legislation, environmental issues, fleet safety, insurance, fleet management, supply issues and security.

Fleet suppliers are permitted to respond to queries if it is felt that their response represents honest and impartial advice. This aspect of the service is strictly moderated in order to ensure that the quality of information provided remains of the highest standard.

We have already attracted a strong network of international fleet professionals, and our expert contributors have submitted a number of thought provoking discussion topics, a few of which are previewed to the right.

We hope you will consider joining us in this exciting new venture into the world of fleet.

To find out more about the Global Fleet Forum and request membership, please visit:

theglobalfleetforum.com

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Whilst 2008 was the year the world went into economic meltdown, the credit crisis really started back in 2004 when US mortgage interest rates started to rise from 1% to 5.35% resulting in a rise in credit defaults. Before long homes were being repossessed, debts started to spiral and by 2005 the US dream started to falter as car sales started a downward trend which continued until 2009.

But rather than denying the inevitable, the major auto makers agreed a strategy which saw 18 plants closing between 2005 and 2009 resulting in 23% cut in capacity.

This created the right-sized vehicle production to meet demand, and has resulted in a lean and generally profitable automotive business for all involved.

Europe was protected from this early part of the crisis as many saw it as a US sub-prime loan problem, but with most of the major banks chasing growth and profit it was almost inevitable that in April 2007 one of the first European banks, BNP Paribas, told investors they could not value the assets of some investment funds and therefore they could not let them withdraw funds due to a “complete evaporation of liquidity.” Before long we were seeing a run on banks, collapsing central interest rates and the rest of the credit crisis is now well documented.

But whilst Europe was able to look at the success of North America’s automotive restructuring and many of the OEMs involved in cutting capacity were the same as those facing the same problems in Europe, there was no repeat of that decisive action. During the worst part of the crisis in Europe we saw just PSA, Ford and GM cutting plants and production although some others did cut out shifts and slowed production lines.

The reality is European capacity utilisation is now struggling to stay above 70%, and neither that nor European car sales trends are forecast by most in the industry to get back to pre-crisis levels until around the end of this decade.

Meanwhile car sales in Russia and India have both struggled and even Brazil saw car sales fall in 2013 for the

debate...

in association with

Meet the experts... first time in a decade which leaves just China as the lone growing BRIC country. But even China is seeing new car sales slowing down as more and more cities are introducing vehicle restrictions to combat pollution.

So maybe the real reason why Europe has not tried to follow the US example is a simple one of Europe not being the single market it claims to be. The US may have state legislative variations, but over here we have 31 sovereign states making up the European Union and the European Free Trade countries. The US has the mighty US dollar; we have twelve different currencies, and even the largest by country coverage has to balance economies as diverse as Germany and Greece.

The cost of shutting down a plant and the level of negotiation required with employees, unions, sovereign government and beyond is a minefield and as we have seen in France, even when you have calculated the closure makes sense that still doesn’t stop governments from stepping in.

So whilst the EU talks of a single market with free movement of labour, the reality is far more complex and it is this complexity which has contributed to a reduced level of plant closures and safeguarded employment.

Cross-border checking Alex Grant, Deputy Editor, International Fleet World GE Capital Fleet Services have reported that driver licence checking is the number one priority for UK fleets as far as management systems is concerned.

But does anyone know of a way in which, say, a fleet manager in France can check the validity of a driver from, say, Ukraine?

Aside from the issue of different alphabets, is there a common system with licences for denoting whether or not a driver has committed certain offences?

My understanding of this is limited, but I seem to remember that drivers is some countries start off with a number of points and then lose them when they commit an offence, whereas others start with zero points and accumulate them.

Is there a central bureau for checking this?

Dennis Dugen, Car Fleet & Employee Benefits Manager, WSP Dennis has worked at WSP, a professional consultancy, for the past 14 years. He was originally involved with building up the company fleet to over 650 cars, but is currently operating a salary sacrifice scheme for all company car drivers, having recently extended the offer to all employees.

Dennis was previously fleet manager at KPMG – a leading accountancy firm, for over 10 years. During this time he was responsible for regional fleets, and offered fleet management consultancy to many of the company’s clients.

Dean Bowkett, Technical Director and Chief Editor, Eurotax Glass’s Group Dean is responsible for the consistency and quality of residual values across the EurotaxGlass’s Group.

He is a keen advocate for the closer integration of data and information across markets to provide a more rounded view of the industry.

He is a Fellow of the Association of Chartered Certified Accountants, and has over 23 years’ experience within the automotive industry. Having started in external audit, Dean has worked for and with brands such as General Motors, Vauxhall Opel and Nissan.

John Kendall, Editor, International Fleet World John has edited International Fleet World since 2012. An award-winning journalist, he has over 30 years experience across b2b and consumer titles, including Automotive Engineering International, Automotive Design, Dealer Update, Diesel Car and Motor Industry magazine.

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fleet in figures

Global sales rise European and North American vehicle sales appear buoyant, but Asian and South American markets appear weak. John Kendall reports.

Skoda Octavia The Skoda Octavia has enjoyed sales growth of 38.5% in Q1 2014.

Western Europe The revival in the Western European car market continued for the seventh consecutive month, according to data supplied by the European Automobile Manufacturers Association (ACEA) for the period to the end of March 2014.

Passenger car registrations rose by 10.6% in March to 1,449,148 for the EU 27 member states. ACEA points out though, that the total was the second lowest result to date for the month of March since ACEA began the current registration data series for the EU 27 in 2003. Only Austria, Belgium, Luxemburg and the Netherlands registered a decrease in March registrations compared with March 2013. The largest market for March was the UK with registrations up 17.7% to 464,824. A

42 / internationalfleetworld.com

change in licence plate for the UK at the beginning of March would have been a contributory factor to the strong March market and registrations will almost certainly have reduced for April.

Over Q1 2014, EU 27 registrations rose by 8.4% to 3,246,719 compared with Q1 2013. The revival in the German market sees Germany with the highest number of registrations for Q1 with 711,753, up 5.6% compared with Q1 2013. The UK posted the second highest figure with 688,122 registrations. Of these 67.5% were recorded in March. Amongst the other large European markets, France posted a 2.9% increase in Q1 with 446,609 registrations, Italy a 5.8% increase with 376,519 and Spain an 11.8% increase to 202,128. For Q1, only Belgium and the

Netherlands recorded market falls, with Belgium down -0.4% to 148,532 and the Netherlands down -6.7% to 107,723 registrations. JATO Dynamics believes that the figures for the Netherlands are likely to have been caused by a tax change that came into effect at the start of the year, rather than the property market problems affecting the financial sector in the country.

Volkswagen remains the best-selling brand in Q1 increasing registrations by 4.6% to 381,808, giving a significant lead over Opel/Vauxhall, the second best-seller with 222,666 registrations in Q1 – an increase of 8.8% compared with 2013. Renault is close behind with 212,872 registrations, an 11.9% increase compared with Q1 2013. At 203,323, Peugeot is the fourth best-sell-

Top 10 Models Make & Model

March ’14

March ‘13

% change Mar

Mar YtD ‘14

Mar YtD ‘13

% change YtD

Volkswagen Golf

56,042

49,114

+14.1%

129,599

112,423

+15.3%

Ford Fiesta

44,491

41,638

+6.9%

85,639

77,763

+10.1%

Opel/Vauxhall Corsa

33,563

33,582

-0.1%

64,591

63,554

+1.6%

Renault Clio

32,434

31,537

+2.8%

74,473

75,349

-1.2%

Ford Focus

30,743

28,953

+6.2%

61,170

61,264

-0.2%

Volkswagen Polo

30,716

28,450

+8.0%

73,576

68,887

+6.8%

Nissan Qashqai

27,843

29,155

-4.5%

53,773

61,886

-13.1%

Peugeot 208

26,211

28,189

-7.0%

62,275

66,948

-7.0%

Opel/Vauxhall Astra

24,016

22,238

+8.0%

46,224

51,521

-10.3%

Fiat 500

21,990

17,857

+23.1%

46,572

38,967

+19.5%

Source - JATO Dynamics

ing brand in Q1 and Audi the fifth best seller with 179,227.

As data from JATO Dynamics shows, the Volkswagen Golf remains the top choice in Europe with a substantial lead over the Ford Fiesta in second place.

JATO notes that outside the top 10 best sellers, Ford’s Kuga, Mondeo, S-Max and Galaxy have all experienced sharply increased sales. The Renault Captur has also performed well with over 41,000 units sold in Q1. Other models that have sold well in the same period have been the Citroën C4 Picasso and Grand C4 Picasso, new Nissan Note, SEAT Leon and BMW 4 Series. The Skoda Octavia and Audi A3 have enjoyed Q1 sales growth of 38.5% and 50.5% respectively. High demand for the Fiat 500 in France, Germany, Italy and the UK has pushed the car into tenth place while strong UK demand for the Astra has helped it to achieve ninth place.

Central And Eastern Europe Around the world, total light vehicle sales rose in Q1 by 4.7% to 21775,017 compared with Q1 2013, according to LMC Automotive. The company reports that the seasonally adjusted annualised selling rate dipped to 86.2m units per year. While LMC believes the performance remains strong, the company expresses concern about weakening performance in emerging markets.

Among these are the Central and Eastern European regions. Russian sales are holding up well but LMC points to a sharp fall in Turkey with light vehicle sales down 30% year-onyear. The selling rate has fallen to 590,000 units per year, the lowest for 4 years. LMC expects the Russian market to contract again this year.

China The market in China is looking brighter. LMC reports that the selling rate reached a near record high of 23.3m units/year in March. But LMC’s analysis suggests that passenger car sales slowed while light CV sales were buoyant. LMC reckons that possible purchasing restrictions for cars based on air pollution concerns expected later this year could have stimulated demand. The company also notes that inventories at dealers and with OEMs have been rising, which indicates reduced sales. On the other hand LMC reports that the Chinese government is taking steps to stimulate the economy, which could support vehicle sales.

Japan We reported on tax changes in Japan in the April issue of IFW, when the Japanese government raised consumption tax for the first time in 17 years on 1 April. Although vehicle sales rose ahead of the increase, the March selling rate of 6.1m units per year was

not as strong as expected. Falling sales in the coming months are reckoned to be unavoidable.

North America The market in North America appears to have bounced back after the winter weather reduced demand. Both LMC and Scotiabank believe that the annual selling rate rose above 16m units per year in March with light truck sales exceeding passenger cars. Chrysler saw truck sales rise 34% according to Scotiabank, assisted by the new Jeep Cherokee.

Similarly sales in Canada remained near a record high, but Scotiabank reckoned that the March sales pace slackened to a three month low. Crossover utility models performed strongly with sales over 20% up on the same period in 2013.

South America Sales in South America appear to be slowing with the Brazilian and Argentinian markets down sharply in March according to LMC. That may be partly due to the Carnival holiday where Brazil is concerned but the country is also facing rising interest rates, high in lation and growing household debt. The situation appears worse in Argentina where the country is said to be suffering from high in lation, shortages of imports and the risk of a inancial crisis. High speci ication models have also been the subject of a tax increase.

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