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INTERNATIONAL
FLEETW RLD All that matters in the world of fleet May 2016
Driven Ford Mustang Hyundai i20 DS 3
Time-share BMW’s take on the future for car-sharing
Profile
Interview The man tasked with turning Volkswagen around
Giulia strengthens Alfa Romeo’s fleet model range
Data roaming How pooled traffic information could improve safety
internationalfleetworld.com
MORE SPACE TO DRIVE YOUR BUSINESS FORWARD THE SEAT LEON ST
TECHNOLOGY TO ENJOY The SEAT Leon ST is the perfect partner for your daily business activities. It has a boot capacity of 580 litres and has been designed to offer the driver maximum comfort. There is enough space and technology to fulfil your functional needs whilst also providing a relaxing and enjoyable environment on any road.
BOOT CAPACITY
EASY CONNECT INFOTAINMENT
DRIVING ASSISTANCE SYSTEM
With 1470 litres of potential boot space when the seats are folded, this car has the capacity to help streamline your daily activities.
Being in touch on the road is sometimes a necessity and this intelligent technology ensures it’s always possible, its compatible with Apple CarPlay™, Android Auto™ and Full Link.
To ensure safety in every situation the SEAT Leon ST comes with Lane Assist, Adaptive Cruise Control and a Tiredness Recognition System.
SEAT FOR BUSINESS
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Average fuel consumption from 3.6 to 6.0 l/100 km. Average CO2 mass emissions from 94 to 138 g/km.
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INTERNATIONAL
FLEETW RLD All that matters in the world of fleet
contents
May 2016
Driven
Time-share
Profile
Ford Mustang Hyundai i20 DS 3
BMW’s take on the future for car-sharing
Giulia strengthens Alfa Romeo’s fleet model range
Interview The man tasked with turning Volkswagen around
Data roaming How pooled traffic information could improve safety
internationalfleetworld.com
Publisher Jerry Ramsdale jerry@fleetworldgroup.co.uk
14 Under the skin of the New Scenic.
16 Cars and the Internet in unison.
24 BMW boss discusses car-sharing.
36 Alfa Romeo’s glamorous fleet range...
Editor John Kendall john@fleetworldgroup.co.uk Deputy Editor Alex Grant alex@fleetworldgroup.co.uk Business Editor Natalie Middleton natalie@fleetworldgroup.co.uk Features Editor Katie Beck katie@fleetworldgroup.co.uk Fleet Consultant Ross Durkin ross@fleetworldgroup.co.uk Sales Director Anne Dopson anne@fleetworldgroup.co.uk Sales Manager Harry Whyte harry@fleetworldgroup.co.uk Sales Executive Claire Warman claire@fleetworldgroup.co.uk Circulation Tracy Howell tracy@fleetworldgroup.co.uk Dawn Mitchell dawn@fleetworldgroup.co.uk Head of Production Luke Wikner luke@fleetworldgroup.co.uk Designers Tina Ries tina@fleetworldgroup.co.uk Samantha King sam@fleetworldgroup.co.uk
04 Fleet Review John Kendall on the challenges of standardising build quality.
06 Inside Knowledge Autorola’s Jörg Höhner discusses harnessing Big Data.
08 News The biggest stories from a month in the international fleet world.
14 Spotlight An in-depth look at Renault’s fourth-generation Scenic.
16 Mobile Comms The potential for sharing traffic data with other vehicles..
20 Interview Jürgen Stackmann on VW’s commitment to restoring confidence.
Published by Stag Publications Ltd, 18 Alban Park, Hatfield Road, St Albans, Herts, AL4 0JJ tel +44 (0)1727 739160 fax +44 (0)1727 739169 email ifw@fleetworldgroup.co.uk web internationalfleetworld.com
24 Interview BMW’s Ian Robertson predicts how car sharing models will evolve.
26 Fleet Focus How Sweden’s strong economy is benefiting a growing fleet sector.
30 Launch Report Ford Mustang / DS 3 / Ford Ranger / Hyundai i20.
36 Profile Alfa Romeo’s plans to boost market share, and arrival of new Giulia. STAG Publications
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40 Fleet in Figures Breaking down the latest global vehicle sales by region.
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fleet review This month, editor John Kendall looks at the increasingly important role of Global NCAP and Volkswagen’s after-effects.
Volkswagen sales... Volkswagen has issued first quarter sales results for 2016. We touch on this in our regular Fleet in Figures feature on p.40, but I thought it makes interesting reading. I would expect to see deliveries down in North America and the US in particular, so it’s no surprise that compared with Q1 2015, VW sales are down -12.5% to 69,300 in the US. They are also down in South America by -31.3% but that has more to do with the prevailing market conditions in Brazil and Argentina, where the market is still falling. It’s the same in Russia – VW sales down -12.5% but again that’s a reflection on the state of the market. Sales are up 6.5% in China, VW’s strongest market, to 722,800, in line with sales growth there. Sales are down in Western Europe by 0.5%, mostly because the German market is having a quiet time of it. Overall, VW does not appear to be suffering as some had predicted.
other parts of the world where safety sells cars. Latin NCAP says that Tsuru has been involved in 4,000 deaths between 2007 and 2012. Microcars have come in for criticism for their lack of safety construction and more recently the Argentinian Ford Ranger pickup and also the Chevrolet Sail – built in Colombia from a kit produced in China – which scored zero stars in the Latin NCAP tests. We take safety for granted in the developed world, it’s time that the story was the same in other parts of the world.
EU Autonomous Driving Global NCAP concerns
Global NCAP has been hitting the headlines in the past month. The results of Latin NCAP crash testing of vehicles on the market in South America appear to show a stark difference between the standards of safety construction there and in the developed markets of the world. First in the firing line was Nissan for the safety record of the Tsuru, built and sold in Mexico, curiously a country where cars are built for the US and
As if to illustrate the point, in the EU, the EU Council of Ministers met recently to discuss plans to standardise and harmonise autonomous vehicle technology. You might argue that if we could avoid accidents altogether, we wouldn’t need to worry about safety construction, but I think that day is still a long way off. All the time people drive cars, there will be accidents and the same will be true of computer driven cars. There is an irony that the same manufacturers whose parent companies build cars that score zero stars in places like Latin America will be signatories to an agreement to standardise autonomous car technologies in Europe. I hope it’s not lost on them or indeed the politicians who are not pressing for higher safety standards for cars permitted to use their roads.
visit internationalfleetworld.com
CAR OF THE YEAR 2016
The new Astra Sports Tourer with highlights of the luxury class: • IntelliLux LED® Matrix headlights • Hands-Free Liftgate • Ergonomic massage seat • Opel OnStar – your personal connectivity and service assistant The Car of the Year is an international award, judged by a panel of senior motoring journalists across Europe. Fuel consumption combined 6.2–3.6 l/100 km; CO2 emissions combined 142–92 g/km (according to R (EC) No. 715/2007).
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inside knowledge
Big Data, Big Opportunities Successful used vehicle businesses must apply Big Data analytics and data-driven insight or risk extinction says Jörg Höhner, global managing director INDICATA, Autorola Group. ver the past decade the world has experienced major changes, with disruptive forces impacting on every business including the sale of used vehicles. Everything and everyone has become interconnected. Customers have smartphones loaded with apps that let them check prices, compare service offers, read reviews and check in with friends as they examine your offers and those of your competitors. Consumers and businesses alike research, connect and purchase online and over their smart phones without a second thought. Digital channels – search engines, social media, classified sites, manufacturer and dealer sites, consumer review sites – are the top research sources that enable consumers to make decisions, ahead of dealer showrooms and recommendations from friends and family. For used car buyers, classified sites are the top online source to help them buy a used car followed by social media and consumer review sites. Only every third used car buyer mentions brand or a dealer site as the premier source. The Internet has changed the power struggle between dealers and consumers. Buyers can now potentially gain the upper hand through knowledge about cars, their quality, residual value, prices applied, finance charges, availability and more frequently, the dealer’s profit margin in closing a deal. OEMs and dealerships have to adapt. The most dynamic will turn business intelligence to their advantage. The key to growth, efficiencies and profitability will be transparency and symmetry of information, as consumers continue to apply the same approach to researching and collecting information in their search for used vehicles as they do in the new car buying process. At the same time we are living in the era of Big Data. Capturing mass quantities of data is the foundation of strong analytics and the initial stages of Big Data largely focus on data capture. Once you have robust, accurate data flowing in, there comes a time to make sense of it all, encouraging a shift towards data analysis and analytics solutions.
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This environment forces carmakers and dealers to fundamentally change their approach to the management of used vehicle operations and inventories. While these changes involve financial investments, they hold the potential for greater returns. Dealers and manufacturers face a rapidly evolving used car market; they must evolve with it, or risk getting left behind. It is essential for key market players including OEMs, dealers and fleet owners to monitor real-time data to understand these changes and react quickly to market dynamics. Real-time Business Intelligence solutions such as our INDICATA platform collect, process and analyse live market data to provide insights on market dynamics including demand, supply and pricing. The automatic data collection continuously detects which cars are for sale on websites. Individual cars are automatically identified by each model specific characteristics. All information collected is stored and each car’s inventory days are counted and price history recorded. The application of a business intelligence suite of measurement, analysis and diagnostics tools will turn data-driven insights into a competitive advantage and provide guidance to improve operational efficiencies such as: • Improving market transparency • Optimising used car operations • Increasing stock turn • Analysing, managing and reducing risks • Monitoring & optimising dealer network performance • Protecting residual values • Making informed and data-driven decisions • Increasing stock turn and efficiencies By applying business intelligence on Big Data and datadriven insights, OEMs and dealerships will improve efficiencies in their used vehicle operations. On average, dealerships can realise: • Increase in their stock turn by 1.7x • 5% improvement of average price for their inventories • Gain of 5% market share • 16% reduction of over age vehicles stock.
INTELLIGENT MOBILITY FUTURE BUSINESS MODELS IN CONNECTED AND AUTOMATED MOBILITY
29TH JUNE, 2016 JUMEIRAH CARLTON TOWER, LONDON
FROST & SULLIVAN’S 2016 INTELLIGENT MOBILITY EVENT SHOWCASES GROWTH OPPORTUNITIES EMERGING FROM ARTIFICIAL INTELLIGENCE Intelligent Mobility evolves around cognitive technologies, digitisation and the future of cars. Learn more about emerging new business models and their social implications. Join us at Intelligent Mobility!
MEDIA PARTNER INTERNA INTERNATIONAL
FLEETW RLD
To register for the event or for any queries, please email: Jana Schoeneborn, Marketing and Corporate Communications Executive, Frost & Sullivan jana.schoeneborn@frost.com Cyril Cromier, VP Sales, Frost & Sullivan Cyril.Cromier@frost.com
www.frost.com/intelligentmobility
NEWS_IFW_May16 20/04/2016 12:49 Page 1
manufacturer news
Audi reveals refreshed A3 udi has unveiled its new A3, which goes on sale A from the summer and brings new driver assistance systems and engines as well as design changes.
Available in three-door and Sportback versions as well as the sedan and Cabriolet, the A3 brings a new singleframe grille, with updated headlights – including Matrix LED technology for the first time – and tail lights. Inside, the A3 gains the Audi virtual cockpit seen in other models, which displays information on a 12.3-inch diagonal TFT screen. The new model also brings updated trim levels, with two basic model as well as the sport and design lines, with their optional S line sport package and design selection equipment lines. Six engines are offered in total and include a new 115hp 1.0 TFSI and 190hp 2.0 TFSI as well as the 310hp 2.0 TFSI. Diesel units comprise the previous 150hp and 184 2.0 TDI engines plus a new entry-level diesel with 110hp, which is available in combination with the six-speed manual transmission or the S tronic sevenspeed dual clutch transmission.
Peugeot Expert and Citroën Jumpy vans revealed he latest-generation Peugeot Expert and Citroën Jumpy vans have been revealed following their unveiling in MPV form at the Geneva Motor Show. Unveiled at the same time as the Toyota Proace van, which is built in a joint programme with PSA Group, the new Expert and Jumpy (known as the Dispatch in some markets) are built on PSA’s modular EMP2 platform and designed to offer compact external dimensions with maximum load capacities. Both vans are available in three lengths and with two or three seats in the front, and offer up to 6.6m3 of useful space and 1,400kg of useful load with a useful length of 4m. Body lengths include a compact 4.6m version – targeted at urban operators – with Standard 4.95m and Long 5.3m versions available and marketed as the core versions.Features on offer include hands-free sliding side doors and the Moduwork flexible system. Euro 6 BlueHDi engine options range from 95hp to 180hp, and are mostly equipped with Stop/Start technology. The most efficient model emits 133g/km CO2 emissions with official fuel consumption of 5.1l/100km.
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Renault reveals Russian Kaptur PSA to launch one-tonne pick-up plus seven plug-in hybrids and four EVs SA Peugeot Citroën has announced plans to launch a ‘product blitz’ built on 26 passenger cars and eight light commercial vehicles as part of its ‘Push to Pass’ plan for the 2016-2021 period. The plan looks to grow “strong and well-differentiated” Peugeot, Citroën and DS brands supported by the product plans, based on the launch of “one new car, per region, per brand and per year”. This also includes plans for the launch of seven plug-in hybrids and four electric vehicles, and the deployment of the connected and autonomous vehicle programme. At the same time, PSA announced that it will now be known as PSA Groupe, not PSA Peugeot Citroën, and launched a new logo.
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enault has taken the wraps off its new Kaptur crossover, which brings a significantly larger R version of its Captur model purely for the Russian and
CIS markets. The carmaker said the new model, which will be manufactured at its Moscow factory, will play a part in driving Groupe Renault’s growth at a global level, including Russia. It added that there are no plans for this vehicle to be sold in Europe. Unlike its European cousin, it offers a four-wheel drive transmission incorporating a locking centre differential to help drivers cope with the country’s harsh climate, along with approach and departure angles of 20 and 31 degrees respectively, plus record ground clearance of 204mm (unladen) and beefed up suspension. Other key features aimed at Russia and CIS countries are Renault’s Remote Engine Start system, heated front seats and a heated windscreen.
NEWS_IFW_May16 20/04/2016 12:49 Page 2
For the latest news, visit internationalfleetworld.com
Opel Insignia achieves 2,111km on one tank of fuel n Opel Insignia 1.6 CDTI ecoFLEX has been driven for 2,111km from Switzerland to the North Sea on one tank of fuel. Driven by hypermiler Felix Egolf, a former Airbus pilot, the car achieved an average consumption of 3.46l/100km; around 10% below the official figures. “I have wanted to crack the 2,000km barrier for some time now but I couldn’t find the car to do it. The excellent aerodynamics of the Opel Insignia combined with the Eco Contact 5 low-rolling resistance tyres contributed to this outstanding result. This hypermiling tour with the Opel Insignia also shows that anybody who has an anticipatory driving style can easily equal or better the official consumption figures. Anybody can be a hypermiler,” said Mr Egolf. The test comes some two years after International Fleet World’s Alex Grant drove an Insignia 1,600km from the UK to Germany and back on one tank of fuel.
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Average CO2 emissions from new cars fall 3% for EU in 2015 verage CO2 emissions of new cars were 3% lower than in the previous year, according to provisional data released by the European Environment Agency (EEA). Last year, new passenger cars emitted on average 119.6g/km, 8% below the official EU target set for 2015, although the average mass of new cars sold remained broadly the same. However, in response, Greg Archer, clean vehicles director at green transport group Transport & Environment, said: “Official figures on carmakers’ new car CO 2 emissions are hot air. Most of the measured improvement is being delivered through manipulating tests, not realworld reductions. The chasm between the reported data and reality makes today’s announcement worthless. Without a new test conducted by genuinely independent testing bodies, drivers will continue to be misled while the planet warms.”
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Free update cuts NOx for Renault's Euro 6 diesels roupe Renault has developed a retrofit technical solution which reduces real-world NOx emissions of its Euro 6b diesel engines by up to 50%, available as a free upgrade at dealers from October. The upgrade involves reprogramming the engines’ injection controller. This widens the operating range of the exhaust gas recirculation (EGR) system, which reduces combustion temperatures and cuts NOx emissions. It also enhances the performance of the NOx trap, which traps and stores harmful NOx in the exhaust stream, and breaks it down into water and nitrogen. The update will be applied to all new vehicles from July, but owners of Euro 6b-compliant vehicles will be contacted in the coming weeks offering a free, optional upgrade at their local dealer from October.
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fleetinquotes a few soundbites from a month in fleet
We forecast that under this new test cycle, not a single carmaker will reach its specific CO2 target by 2020/2021.
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Thomas Göttle, automotive expert at PA Consulting Group
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To successfully deliver these technologies industry needs a common approach between carmakers, mobile telecom providers and providers of roadside infrastructure systems.
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Dr Wolfgang Epple, director of research and technology at Jaguar Land Rover, on driverless cars
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Our acquisition of a stake in Koolicar is another step forward in our strategy as a mobility services operator. We want to operate right alongside our customers to provide them with the best mobility solutions.
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Brigitte Courtehoux, PSA Peugeot Citroën's senior vice-president, connected services and mobility
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business news
LeasePlan USA announces organisational restructuring
in brief
easePlan has restructured its senior team in a move to focus on endservice delivery. LTheto-end company has appointed Jeff Dube, previously a vice president of
EU car market up 8.2%
risk management, as vice president of security, risk and compliance, to ensure the safety of all clients and their information. In addition, LeasePlan has created a new position of vice president, customer experience to reflect its focus on working hand-in-hand with the customer. The new role has been filled by Natalie Pierce, who previously worked as vice president, process management and strategic planning. She will work closely with Sheri Maple, who was recently named vice president of operations for LeasePlan USA’s Alpharetta headquarters. Ms Maple will lead the vehicle acquisition, licence and title, registration services, remarketing and small fleet operations teams.
US driving safety specialist acquires Interactive Driving Systems nteractive Driving Systems, which provides fleet driver safety manageIbeenment solutions through its Virtual Risk Manager (VRM) platform, has acquired by US online driver education specialist eDriving for an undisclosed amount. The acquisition came at the same time as eDriving’s acquisition of Mentor eData, a consumer-focused telematics app and analytics provider, with the firm saying that the combined companies form a leading driver training and risk reduction business, “with a mission of training consumer and professional drivers to be the best and safest they can be and evolving crash-free operating cultures for corporations worldwide”. It added that the new eDriving enterprise, which has more than 700,000 fleet drivers in 97 countries, using courses in 45 languages, “emerges as the only company providing a full suite of driver training solutions, including a closed-loop solution combining telematics, other driver inputs, interactive online content, and virtual coaching services with licensed instructors to improve driving behavior and lower risk.”
Fleet Logistics set up preferred dealer network ndependent fleet management specialist Fleet Logistics has impleIoutmented a preferred dealer network in the UK with a view to rolling the initiative elsewhere in Europe.
The network, which comprises just 11 dealer groups and dealerships, covers all major marques and with a set of new contractual agreements. The new initiative is being seen as delivering a number of major benefits for Fleet Logistics’ UK fleet customers, including contracted KPIs to measure dealer performance, better dealer discounts and rebates, and a number of process efficiencies including reduced delivery times, improved service levels for drivers plus a new programme of demonstrators. If successful in the UK, Fleet Logistics, which has more than 180,000 vehicles under contract in 27 countries worldwide, plans to roll out the preferred dealer network initiative to a number of its major European markets, including France, Belgium and Germany. A similar system already exists in the Netherlands.
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EU car registrations rose 8.2% in the first quarter of 2016 after recording the 31st consecutive month of growth in March. ACEA data shows that March registrations grew 6.0% to reach more than 1.7 million units – close to March 2007 levels before the economic crisis hit.
Enterprise Rent-A-Car to offer Aston Martins in US Enterprise Rent-A-Car is now offering Aston Martin models including the DB9 and Rapide S at select locations throughout the US. The vehicles will be offered as part of the Exotic Car Collection, which is now available at more than 30 locations in cities across the US.
Toyota plans driverless cars research centre Toyota is to open a third Toyota Research Institute facility in the USA, which will fund studies into artificial intelligence, materials science and robotics. It will join the TRI facility which opened in Palo Alto in January (TRI-PAL) to work with Stanford University, and TRI-CAM in Cambridge, which works with the Massachusetts Institute of Technology.
Kwik Fit to expand into Italy with opening Kwik Fit has signed a franchise agreement that will see the brand expand into Italy with the opening of 200 centres. The automotive repair and servicing company and tyre retailer has signed a franchise agreement with CDG-ONE, part of Segema S.p.A., a leading tyre distribution group in Italy.
Meet the game changer
The new Hyundai Tucson
This is the car that demonstrates the power of change. Bold, expressive design, a completely new platform and class-leading internal dimensions combine to make the all-new Tucson an unbeatable package. There’s a wide-opening panorama roof, smooth-changing 7-speed dual-clutch transmission and other desirable features that are unique in this class. Competitive pricing, low operating costs and high residual values make the all-new Tucson an ideal fleet vehicle. But the major attractions are the way it looks and the way it drives. The new Hyundai Tucson. Change is good.
Combined fuel consumption for the Tucson range: 4.6 - 7.6 l/100 km. Combined CO2 emissions for the Tucson range: 119 - 177 g/km. The 5-year unlimited mileage warranty is valid in all EU member states + EFTA. Warranty is subject to local terms and conditions. For taxi or rental usage model specific restrictions apply. For more information, visit www.hyundai.com/eu
EVNEWS_IFW_May16 20/04/2016 12:42 Page 1
environmental news
All-electric Tesla Model 3 aims for the Germans esla will target the core of the compact executive segment when the first Model 3 electric cars are delivered late next year, offering a range of over 350km and a $35,000 (€30,700) start price in the United States. Unveiled at the end of March, the newcomer is positioned below the popular Model S in Tesla’s line-up and will rival the Audi A4, BMW 3 Series and Mercedes-Benz C-Class. Pre-orders reached almost 300,000 worldwide within 48 hours, with prospective owners queueing outside stores to place deposits. The skateboard-like platform is similar to the Model S, with a battery under the floorpan and motors at the rear or both axles. Two-wheel drive models are said to offer more luggage capacity than similarly-sized petrol or diesel car, helped by a second compartment under the bonnet, and can accommodate a seven-foot surfboard inside the cabin. Expect the line-up to include multiple battery capacities similar to the Model S and Model X, with entry-
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level versions offering a 346km range under EPA conditions. That suggests a 60kWh battery identical to the slightly cheaper Chevrolet Bolt, but the European test cycle usually delivers significantly longer brochure figures than its American counterpart. Model 3 owners will also be able to take advantage of the company’s growing network of Supercharger charging points, which can restore 80% of the battery capacity in around half an hour. It’s said that the car will accelerate to 100km/h in around five seconds, while the dashboard is entirely digital based around a large, remotely-updateable central display. Large-volume battery production will take place at Tesla’s forthcoming ‘Gigafactory’ in Nevada, a joint project with Panasonic. Chief executive and cofounder Elon Musk has also hinted that the company will open local production facilities in Europe – in addition to the assembly plant it already has in Tilburg, in the Netherlands.
Ghosn: electric crossover “logical” for Nissan plug-in hybrid or fully electric crossover is “logical” for Nissan as the Alliance chases volume segments with alternative drivetrains, according to its chairman and CEO, Carlos Ghosn. Speaking to the media at the New York International Auto Show, Ghosn said the Renault-Nissan Alliance was seeking segments where it would effectively reduce CO2 emissions, rather than just showcasing the technology. “We’re giving priority to the mass market, that’s why we started with the LEAF, with ZOE, with Kangoo with e-NV200,” he said. “We’re concentrating on lowering the cost, increasing the autonomy and massifying the assets we have. With the trend of crossovers becoming much more popular, it would be logical you would have
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a crossover which would be electrified.” Ghosn didn’t confirm which size of vehicle would receive it first, but the company showed a Juke-sized concept called the Gripz last year which featured a range-extended electric drivetrain with a compact petrol engine. A range-extended electric Juke would put the technology in a high volume, and growing, segment and address one of the main barriers Renault-Nissan has experienced with EV sales to date. “We probably underestimated the reluctance of consumers to move into EVs due to lack of infrastructure,” said Ghosn. “We are seeing this as being the main obstacle for people finally making the decision. And also the costs need to come down, and be much more competitive than today.”
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For the latest EV news, visit evfleetworld.com
Wireless charging moves closer to production ast and efficient wireless charging has taken further steps closer to original equipment for next-generation electric vehicles, following developments in the UK and USA. UK-based company Ricardo, which has relationships with a crosssection of OEMs, now has a license to develop a factory-fitted system for new vehicles, based on Qualcomm Halo technology. This offers charging speeds of up to 22kW, around three times the speed of most wired charging points, by parking over an under-floor pad, but as yet no vehicles are equipped with the required receiver. Oak Ridge National Laboratory (ORNL) in Tennessee, meanwhile, has shown a 20kW wireless charging system which operates at 90% efficiency, demonstrated using a Toyota RAV4 EV. Researchers at the Department of Energy’s facility are now working on a 50kW system, similar to a DC rapid charger, beginning with an investigation into safety aspects from high-frequency magnetic fields. It’s hoped that both developments will enable widespread adoption of electric vehicles by making the charging process easier.
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in brief Skoda confirms Superb PHEV Skoda will launch a plug-in hybrid Superb in 2019, shortly before adding a fully electric vehicle to its range, according to its board members. Likely to use a similar drivetrain to the Golf and Passat GTE and A3 e-tron, the Superb PHEV will offer an electric range of over 50km.
LEAF joins City of Montreal fleet The City of Montreal is to deploy Nissan LEAFs on its municipal fleet, aiming for a 30% reduction of greenhouse gases by 2020, compared to a 1990 base rate. Its electrification strategy also includes a network of 1,000 public charging points and a car sharing scheme by the end of this decade.
Hyundai’s new fuel cell SUV due in 2017 yundai has signed off the design for its next generation hydrogen fuel cell vehicle, which will be an SUV-type product set to launch in 2017, available in right-hand drive for the first time. The successor for the ix35 Fuel Cell, which will complete its production run within the next 12 months, will be a bespoke product based on its own platform, rather than an adapted internal combustion model or based on the hybrid and electric-only Ioniq launching later this year. Hyundai UK’s sustainable fuel development manager, Robin Hayles, said the SUV bodyshell suits the packaging of the drivetrain – which includes bulky hydrogen tanks. This will continue to be a conventional-looking product, with the same familiar controls used in the ix35, but this time including right and left-hand drive versions. Left-hand drive had proved to be a barrier with some health and safety and leasing policies in the UK.
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EV 100% in numbers
Share of Norway’s new car sales to be electric by 2025, under a new government proposal.
Renault returns to Canada with Twizy The Renault Twizy electric quadricycle will become the brand’s first vehicle available in Canada since 1988 when AZRA Corporation begins imports of the 40km/h-limited version this summer. Canadian models feature a charging port like the ZOE instead of a captive lead, and side reflectors to comply with local rules.
California introduces income-based incentives The California Air Resources Board has introduced a new incentive system aimed at making plug-in vehicles more accessible to low earners, while withdrawing rebates for the wealthiest consumers. Public agency fleets operating in heavily polluted areas will be able to claim an additional $15,000 under the programme.
50km Electric range of the new Toyota Prius Plug-in – twice that of the outgoing car.
Source: Norwegian Government
Source: Toyota Europe
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SPOTLIGHT Renault Scenic
Inner space Renault claims to have invented the compact MPV segment 20 years ago. With its fourth-generation Scenic, it might just have re-invented it. By Alex Grant.
Form Crossovers might be the fashionable choice for families needing more space than a hatchback, but the Scenic is following the C4 Picasso’s lead and showing that MPVs can be just as stylish. It’s a surprisingly faithful interpretation of 2011’s R-Space concept, with a steeplyraked windscreen, low overhangs, reduced roof height and long wheelbase. Styling which should help get it noticed, even among crossover buyers. That’s helped by standard-fit 20-inch wheels – a size usually reserved for executive cars, coupes and SUVs – but with unusually narrow, low rolling resistance tyres. Renault says it will offer a large choice of wheel styles and aerodynamic inserts to personalise the car, as well as two contrasting roof colours. It will be interesting to see how that muscularity translates into the seven-seat Grand Scenic, which is due to be unveiled this summer and launches alongside the fiveseat version.
FLEET FACT Scenic is a backronym for “Safety Concept Embodied in a New Innovative Car”.
Function The Scenic isn’t a case of style over substance, and it’s as big on functionality inside as it is neatly designed on the outside. Boot capacity is smaller than in the C4 Picasso or B-Class, but the cabin features stowage compartments throughout and the seating is flexible. How much varies by trim level, but the centre console and rear seats slide, all except the driver’s seat fold flat and the second row is operated by switches inside the tailgate. Like the Megane, and also the Espace and Talisman, the dashboard has significantly fewer buttons than its predecessor. Most functions are relocated to the 220mm R-Link 2 touchscreen system, including folding the rear bench on some trim levels. Technology on board includes autonomous braking with pedestrian detection across the range and TomTom’s live traffic information, with a 12-month subscription.
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Fun Fuel economy figures haven’t been released yet, but the Scenic will feature 95hp, 110hp, 130hp and 160hp diesel engines and 115hp and 130bhp petrol engines from launch. Expect the dCi 110 to emit less than 100g/km CO2, and that’s a figure that should come in well below 90g/km once the mild-hybrid version joins the range early next year. The platform is shared with a growing number of fun-to-drive Renault and Nissan products, including the Qashqai, Kadjar and new Megane, which bodes well. It also features five different drive modes to customise responses to the route ahead, matched to five interior lighting hues to match the driver’s mood. Despite the large wheels, Renault hasn’t fitted low-profile tyres, and it’s promising good ride quality as a result.
What we think... Renault sees crossovers – Captur, Kadjar and the forthcoming Koleos replacement – being its big volume drivers in the coming years, but the Scenic remains an important part of the range. Striking styling and clever technology should help broaden that appeal this time around – no mean feat when it’s up against premium-brand offerings from Munich and Stuttgart as well as the flourishing C-SUV class. AG
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FEATURE Mobile Communications
Internet of Things? What about the Internet of Cars? Sharing data about traffic from other vehicles on the road could make our roads much safer. Steve Banner reports.
hat’s the question being posed by Ralf Lenninger, head of system development, innovation and strategy at Continental’s interior division. Recent onroad trials of eHorizon, Continental’s dynamic electronic horizon, have prompted him to conclude that it is getting ever closer. What eHorizon gives the driver is detailed data on the highway conditions ahead including gradients and curve radii. What it can also provide however, says Lenninger, is up-to-date information about variable speed limits, temporary
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traffic signs and lane closures. It does so by employing what Continental refers to as swarm intelligence. Connected vehicles in the area at issue upload data to the cloud and connected cars entering the affected area can immediately benefit. It means that in future eHorizon will be able to make an assessment of the road ahead says Lenninger, and determine whether fullyautomated driving is appropriate or whether the driver will need to switch to partially-automated driving instead.
“The better the information base, the safer, more efficient and more comfortable the vehicle,” he observes. As well as communicating with the cloud, cars will increasingly communicate with one another. On the heavy truck side this has resulted among other things in trials of platooning. Control is in effect passed to the truck at the head of the column allowing all the other trucks to drive closer to one another thereby making better use of the available highway space and saving fuel.
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“ Real time analytics can be used to alert a traveler to a major problem on the local road network.” DS Connect Nav banner, it is appearing on the Citroen Space Tourer and Peugeot Traveller too and on the newly unveiled Peugeot Expert and Citroën Jumpy/Dispatch light commercials. Aside from the foregoing, other advantages says TomTom include its ability to tell the driver how much service stations in the vicinity are charging for fuel and which car parks have vacant spaces.
Painless Parking experiment. It is a sensible approach given that obtaining information from fixed assets can be problematic. That is something highlighted by a report published last September by the United States Government Accountability Office. “Vehicle-to-Infrastructure – V2I – technologies are expected to offer benefits but deployment challenges exist,” it observes.
eCall due 2018
Car parking information
Connectivity means that the European Union will be able to implement its eCall initiative from April 2018 onwards says Thomas, ensuring that if a car is in a serious accident the emergency services will be able to locate it and respond accordingly. PSA is rolling out a package developed by TomTom that includes TomTom Traffic, Local Search, Speed Cams and Weather to a number of its key global markets. Available on the DS5 under the
Ford underlines the point that the way to obtain data on available parking spaces is to source it from the vehicles using the parking lot rather than from the car park itself. With permission from the participants, Ford intends to collect information from cars entering and leaving parking spaces in a defined area – in effect, a miniswarm – to predict available spots taking into account time of day and location. It will form part of the company’s GoPark
They include issues surrounding the sharing of radio frequency spectrums with other users, interoperability, data security and liability, a lack of resources at local government level to fund V2I systems and ensuring that drivers respond appropriately to V2I warnings. The shortcomings of the highway infrastructure are likely to result in difficulties when it comes to introducing selfdriving vehicles. “We don’t have roads that are optimised for autonomous driving,” Thomas observes.
Vulnerable road users If vehicles are equipped with Vehicle-toX (V2X) technology then they will be able to communicate with vulnerable road users such as cyclists too, exchanging position data using WLANp short-range communications thereby making a collision less likely. All that is required for a modern smartphone – which the majority of cyclists in the developed world are like to carry – to send and receive the data is a change or two to the communications chip. “It brings us one step closer to our goal of zero traffic fatalities,” observes Dr Bernhard Klumpp, head of Continental’s passive safety and sensorics business unit. According to Germany’s Federal Statistics Office around 50% of people killed in traffic accidents are vulnerable road users such as cyclists, motorcyclists and pedestrians. Vehicles are increasingly capable of receiving and sending all sorts of useful information. “Connectivity is built into them these days,” says Mark Thomas, director of product marketing, connected car, at Jasper. “They’ve usually got at least 80 ECUs, some have got over 100 and they can all be monitored on a cloud basis.” Based in Santa Clara, California, USA, and now owned by Cisco, Jasper is a leading Internet of Things cloud-based platform specialist.
Saskia Harreman, director of international consultancy services at LeasePlan
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FEATURE Mobile Communications
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Data analysis One answer to some of the foregoing challenges may be to carefully analyse all the tiny 10-to-15-second pieces of data that are already available in the ether. That is the approach being taken by Ford and IBM in a pilot programme in the USA. The Ford Smart Mobility Experimentation Platform spots patterns, correlations and trends and writes codes that allow people to make better-informed decisions about their journeys. In doing so Ford and IBM are using technology similar to that already in place in the stock market, where data is aggregated quickly to enable rapid transactions. It is an approach familiar to energy companies that monitor grids, identify any requirements for maintenance in advance of a possible failure and despatch crews accordingly. The Ford/IBM approach underpins the Dynamic Shuttle trial now underway at the Big Blue Oval’s Dearborn, Michigan, USA campus. Should one of the Transit passenger carriers being used to transport staff develop a fault, then the platform will start routing requests away from that vehicle to other Transits in service. That will allow another shuttle to be deployed to keep all riders on schedule. Real-time analytics can also be used to alert a traveler to a major problem on the local road network and advise the individual to catch the train instead to get to his or her destination on time.
Interactive devices Contacting people via the items they wear rather than through their smartphones or through the vehicles they are driving could become increasingly common, suggests Ford. In response it has set up the Automotive Wearables Experience laboratory at its Research and Innovation Centre in Dearborn. Much of what the lab is currently working on would appear to complement onboard vehicle technology rather than replace it. Lane-keeping assist for instance could become a little more sensitive if a smart watch sends data to the car that infers the driver failed to get enough sleep the previous night. If a driver’s heart rate increases as traffic intensifies then the vehicle’s adaptive cruise control or blind spot information system could increase the distance between vehicles giving the individual some breathing space. Drivers have shouted impotently at their cars ever since the horseless carriage was invented. Verbal instructions will soon prompt a reaction from Volvos, however, promises the manufacturer. Volvo users will shortly be able to talk to their car via Microsoft Band 2 and instruct it to do everything from start the heater and set the navigation to a chosen destination to lock all its doors via Volvo on Call, the manufacturer’s mobile app, and a connected wearable device. “Let’s face it – who hasn’t dreamed of talking to their car via a wrist-worn wearable?,” says Klas Bendrik, senior vice
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president and group chief information officer at Volvo Car Group, and a man clearly not without a sense of humour. The general thrust of developments in connectivity technology should benefit car clubs and car-sharing businesses in particular.
Vehicle sharing Connecting technology is a point not lost on General Motors. In January it inked a deal with Lyft, a rideshare company active in over 190 cities in the USA, to create an integrated network of on-demand autonomous vehicles in North America. GM is investing US$500m (€438.3m) in the business and gets a seat on the board. In March, GM announced the launch of Commercial Link in the USA. Using the same embedded hardware as OnStar – which is now being rolled out in Europe – it gives customers instant access to information on everything from a vehicle’s whereabouts to how much fuel it is using, for US$10 (€8.70) a month. Manufacturers want to make money out of data wherever they can, points out Thomas. In Austin, Texas, USA, Ford Motor Credit is trialling Ford Credit Link which allows a vehicle to be shared by groups of from three to six people under a 24-month lease. They can reserve drive time, check vehicle status, keep up with maintenance, communicate with one another, view their account and make payments through a vehicle plug-in device and app. “Traditional vehicle ownership is looking more and more like deciding to buy CDs when you can download music online,” Thomas remarks. While technology is having an enormous impact on the way fleets operate, it is not perfect. The new Jumpy/Dispatch and Expert are available with a camera that can detect speed limit signs and offers the driver the option of touching a button to use the limit as the basis for the van’s cruise control/speed limiter settings. Some markets impose speed limits on vans depending on their gross weight that differ to those that apply to cars however and PSA’s system does not take this into account. Nor does the system take into account the different limits that apply if the driver happens to be towing a trailer. “The pace of change is skyrocketing,” observes Thomas. He’s right – but it still needs a tweak or two.
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Copyright: Alphabet International GmbH
On the digital road with Alphabet A first-hand experience with the new AlphaGuide app
No question that the digital revolution is changing the world we live in, and fleet management is no exception. Digitalisation has the power to make life, and work, much easier for both drivers and fleet managers. Alphabet’s new digital innovation is the AlphaGuide app for smartphones. Upgraded with new, fine-tuned features that optimally fulfil fleet managers and drivers’ mobility needs, the dynamic app enhances the mobility experience of businesses. But what does this mean concretely in practice? Two AlphaGuide users, a driver and a fleet manager, shared their experiences with Alphabet.
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Jasmin: ‘The best on the road!’ Jasmin, who is part of the sales force at a renowned technology company, reports: ‘I downloaded the new AlphaGuide app a few months ago and have never looked back.’ With her busy schedule, including regular travel, the mobility timeline feature proved especially useful to her. All she has to do is enter appointments in her smartphone’s calendar and the app tells her exactly when to leave to arrive at a meeting on time. ‘Punctuality is really important and I appreciate how the app selects the best route depending on the current traffic situation,’ she adds. While on the road, the app shows Jasmin all available service options at a glance: whether she needs to find the right fuel station, an electric vehicle charging point, or a tyre service partner. This feature gives her peace of mind: ‘At any point during my journey, a simple tap on the ‘hotline’ button connects me with Alphabet for assistance.’ When she recently wondered about when she has to return her car, she was surprised by how easy it is to access contract data in the app: ‘Having all information at hand makes my driving experience much more transparent and since I always have my mobile with me anyway, the AlphaGuide is an ideal fit,’ she concludes.
Mark: ‘Excellence in the office’ The fleet manager of the same technology company, Mark, shares his insights: ‘I upgraded to the new AlphaGuide app right after its release and was impressed from day one by how well-designed the app is and time-saving its features are, from accessing employee’s contract data right through to administrating the fleet.’ He particularly noticed how Alphabet looked into the actual needs of fleet managers and drivers when defining the app’s feature set. ‘This is something that is really apparent when using the app,’ he explains. The upcoming developments of the AlphaGuide are of great interest to Mark. ‘I look forward to seeing which new services Alphabet will add in the future to take the Business Mobility experience to the next level,’ he states. Alphabet is committed to fulfilling its clients’ needs and knows that in the end, Business Mobility should be less about waiting but more about moving. The innovative AlphaGuide app for iOS, Android and Windows is currently available in 8 countries: Germany, France, Netherlands, Belgium, Poland, Luxemburg, Switzerland and the United Kingdom. Next to come: Austria.
Learn more at www.alphabet.com/alphaguideapp
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INTERVIEW Jürgen Stackmann, Volkswagen
Volkswagen looks to an electric future It’s been all change at Volkswagen since the emissions scandal, so Craig Thomas spoke to Jürgen Stackmann, the new board member responsible for the brand’s sales and marketing.
n years to come, authors of marketing textbooks will look back at the effects of the emissions scandal on Volkswagen, one of the world’s biggest car brands, and either hold it up as an example of how to recover from a crisis, or show how it marked the beginning of the decline of a once-great brand. The jury’s still out on which of these outcomes it will be – there’s undoubtedly more information to come, with the publication of the report commissioned from US law firm Jones Day later this spring – but the company has certainly not held back from making changes at the top of the company to fix its problem. One of the most astute moves, in the eyes of many industry observers, has been for Volkswagen to bring Jürgen Stackmann back from Barcelona – where he was CEO of Spanish carmaker SEAT – to take a seat on the brand’s board and head up its sales and marketing activities. Stackmann – who spent 21 years at Ford before joining the Volkswagen Group in 2010 – is an experienced executive who understands marketing and car making. Which will be important, when you consider the challenges that not only Volkswagen, but the entire industry, has to meet in the coming decades. The very future of personal mobility will be up for grabs and only the brands that realise that, and respond with innovation, will survive.
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Technical solutions to the NOx scandal have resulted in zero customer complaints
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Restoring confidence... Stackmann is aware of this, but first he has to help restore Volkswagen’s reputation, win back the trust of consumers and fix the cars of existing customers. This won’t be an easy task, as Stackmann explained to us when we met him at the Geneva Motor Show. “We will be working with our dealers and our service network to convince each of our 5.6 million [affected] customers that we’re competent, that we deliver a great service and that we can be trusted. That’s why we’re happy with the way that the first 10,000 Amaroks have been serviced and we had zero complaints from customers. Every time we release the next piece of software, the next vehicle line, we ensure that it’s perfect: everybody has to be convinced that it’s right before we move ahead. “If you look at the technology of changing what needs to be changed on the car – which is software, essentially – and return the car to the consumer without them feeling it’s changed, it’s bloody hard work. People love their cars and they want them back with the same fuel economy, same noise levels, same power. That’s what we’re aiming at this year and I’m confident that, for the vast majority of our customers, we can achieve that.” Fixing customers’ cars is a good first step to rebuilding Volkswagen’s reputation, but then what? Will existing owners and prospective buyers come back to the brand the next time they’re making a purchase or taking out a lease? Stackmann seems to think so.
...And trust “I went out to the 10 biggest fleet customers to talk to them – which is the first time they’d ever seen a board member in their offices – and hear what they were concerned about. Interestingly, they’re not concerned about our quality or competence: they believe in the value of our cars. They were more concerned about the trust element.” Initial signs are that the scandal hasn’t done too
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“[Fleets] were not concerned about our quality or competence. They were more concerned about the trust element.” much damage to the brand, with Stackmann telling us: “The order take in the first two months has been very promising: it’s back to where it was at the start of last year – and last year was a good year for the brand.” If those figures are correct, it looks as if customers are already forgiving Volkswagen. But what about forgetting? How long will that take? “It’s tough to predict, but it will take a while,” said Stackmann. “If you get it right, people will forgive. There will be references to this for quite some time, but we’ve looked at other companies that have had similar struggles – Toyota, for example – and it took them a year-and-a-half to get back to where they were before. That’s a realistic timeframe.”
Diesel and alternative fuels
The emissions scandal has raised a number of questions for Volkswagen (and the wider industry) about the role of diesel in a world becoming increasingly concerned about pollution and air quality. VW is sticking with diesel, though. “We are convinced that we will continue to make diesels for quite a while. If you look at how we achieve lower CO2 emissions – especially in Europe – and the acceptance of diesels among our customer base, we’re convinced that diesel has a good future. We have a job to make
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INTERVIEW Jürgen Stackmann, Volkswagen
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them sustainable, green and clean: that is technically do-able.” That said, Volkswagen is committing its future to becoming a leader in building electric vehicles – a move that has been given added impetus by recent events. “The issues around diesel acted like a turbocharger, a catalyst that allowed us to focus on electric cars. Sometimes big companies like us do need that impetus. “There will be some exciting questions to be asked about what will premium mean with electric cars? What will modernity look like with electric cars? That’s a great place for Volkswagen to play a stronger role. Then there’s autonomous drive, which seems crazy, but I do believe – in combination with electric and connectivity – it opens up a new sphere of mobility systems, specifically in metropolitan areas, where Volkswagen can play a role.
car share of 20% and it’s amazing to see a country being really serious about going that way. “We believe in the very near future more and more metropolitan areas will take this approach – and we want to be part of that, rather than wait and be late. “I believe that there will be a blend of multiple distribution systems. Sharing has peaked, while daily rentals have changed to half-daily rentals, so there’s been some morphing in patterns of renters becoming sharers and sharers becoming renters. I also believe we’ll see some metropolitan areas replacing their mass and volume mobility with individual mobility on demand. “I don’t think there’s a single way forward, but I do believe that there is a consensus around the globe among politicians that we all want 100% sustainable solutions.”
Silicon Valley challenge Electric switchover “We have 40,000 engineers and we’re sure that if we give them the focus, they will do an excellent job [developing electric cars]. Volkswagen is big, but if we get everyone working in the same direction, we can do some outstanding stuff. The emphasis hasn’t been there, but now the key priorities are shifting to electric propulsion and autonomous drive. The brand is committing to an electric platform that only does electric cars.” It might be coming later to the electric party than other manufacturers, but Volkswagen is fully aware that the whole concept of future mobility is on the verge of a radical change – especially in our cities. “We do believe that many metropolitan areas will come to the conclusion that they need to change and build ecosystems similar to what has happened in Norway in past years, with the commitment of everyone going in one direction for long enough and hard enough. Norway has now achieved an electric
The future also holds challenges from companies such as Apple and Google, but Stackmann thinks that Volkswagen has the disruption from Silicon Valley covered. “I think we take them seriously enough to take that as a challenge. We’re not afraid. But some of the harder pieces of our industry – the engine and gearbox are highly complex systems – you don’t need to do if you go electric. And that’s the incentive for them to start thinking about getting into this industry. “I don’t think they’ve really grasped the long-term implications of being in the car industry. Growing demand and quality, keeping cars in good shape for a decade: it’s a pretty complex business that we’re in.” Considering the six months that Volkswagen has just had, “a pretty complex business” might be something of an understatement – but that kind of attitude might be exactly what will help Volkswagen survive.
Hydrogen? “Further out than electric cars” EVs are definitely high on the agenda for Volkswagen, so what about hydrogen fuel cells? Is the company about to follow Toyota, Honda and Hyundai in launching a fuel cell vehicle on to the market? “Hydrogen fuels cells are the next step after batteries, because the question is not the fuel itself, but how does the fuel get created, transported and stored. That is the big question mark. Fuel cells will play a role, but it’s further out than electric cars. “We don’t think we need to be forerunners in this technology, because the first question that needs to be answered is how we get customers to move from combustion engines to electric in comfort. As long as customers still have to think about refuelling and recharging, there is a break point in customers making the transition. Range will get sorted and costs will have to come down – which will take longer than people think, but they will come down.”
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If you want to manage your fleet efficiently and transparently, you need to consider alternatives to traditional closed-end calculations. By unbundling the services in a pay as you go model, you’ll not only achieve targeted potential savings, but you’ll also capitalize on proactive services. What exactly does this mean to you? As a world leader in fleet management, ARI supports you in your ongoing operations, e.g. billing, remarketing, fuel cards, maintenance repair or damage claims. We will also meticulously optimize all processes based on big data concepts. And always, with transparency in the foreground, thanks to online access to all decision-relevant reports and with open accounting based on actual costs per month, vehicle and service module.
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INTERVIEW Ian Robertson, BMW
Is car sharing the future? Car-sharing or ride-sharing are increasing in popularity and if you take this whole idea to the extreme, will carmakers in future ever actually sell a vehicle or will they simply hire them out?
ne thing for certain is that the business model is changing. Most carmakers are now into, or getting into car sharing or alternative mobility. Jaguar Land Rover has recently announced InMotion, a new technology business that builds apps and on-demand services to overcome modern travel and transport challenges. With technology changing the way people travel and providing access to vehicles at the swipe of a screen, more and more people are looking for ways to improve their commute to work or to access the car they want, when they want to. In April InMotion will begin real-world testing of a number of different services such as car sharing and car ownership solutions, across North America, Europe and Asia in the coming months. At the same time, BMW said it is expanding its DriveNow car share service into the US starting in Seattle under the brand name ReachNow. Based on the successful DriveNow model currently operating in Europe, ReachNow is starting with an initial fleet of 370 BMW and MINI vehicles with 20% of the fleet made up of i3 electric vehicles. In addition to Seattle, ReachNow will be expanded into further cities in the US. This move is in line with the company’s strategy
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NUMBER ONE>NEXT, as outlined by management board chairman Harald Krüger at this year’s annual accounts press conference. The strategy states that the development of customer-oriented mobility services will be one of the company’s central business fields in the future. BMW’s new strategy is aimed at setting new standards for connectivity and automated driving. Kruger said the BMW Group will move into a new era in which, “we will transform and shape both individual mobility and the entire sector in a permanent way”. He added: “We are convinced individual mobility will remain a fundamental human need. According to forecasts, new car registrations worldwide are expected to reach 100m by 2020, including a growing premium segment. At the same time, mobility is going to change dramatically thanks to new technological advancements.” BMW and other carmakers are supplementing their classic business model with additional services that make life on the road easier for people in big cities. DriveNow, the joint car-sharing venture between the BMW Group and Sixt SE, offers BMW and MINI brand vehicles for rental in European cities according to the free-floating principle. The vehicles can be rented and returned anywhere within a defined area of the city. Well over half a million registered
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customers can locate and reserve the vehicles via the DriveNow app or website and can use the service in any DriveNow city. DriveNow operates a fleet of more than 4,000 vehicles at locations in Munich, Berlin, Düsseldorf, Cologne, Hamburg, Vienna, London, Copenhagen and Stockholm. 20% of these are electric BMW i3s. Several scientific studies show that a DriveNow vehicle is a substitution for at least three privately owned cars, meaning DriveNow is making a contribution towards reducing traffic congestion in urban areas. Board member for sales and marketing, Ian Robertson, said that BMW has a clear set of target parameters and will continue to invest heavily in the future. The rise of car sharing and ride sharing is, he said, an opportunity, bringing more people to the BMW brand who may only have aspired to it in the past. DriveNow has 580,000 members in 10 European cities but as the sharing culture grows could this not lead to manufacturers owning all their vehicles rather than selling them? Robertson said: “We already own a lot of cars through our huge leasing business but in high density urban areas there are many people who don’t need a car all the time and who could not afford a premium model. As an aspirational brand, the sharing environment opens BMW up to a lot of people who we didn’t have before. There is a much higher risk for volume brands. There are many different ways of achieving mobility and this is very high on our agenda.” He added: “The average car use is just 5% a day making a vehicle a very expensive asset. With DriveNow we are already achieving 20% utilisation and making a profit. What we need to do is analyse the current usage to find ways of getting more people to use the available cars more often. Do we see the
sharing environment as revenue potential? Yes we do.” That said, Robertson believes vehicle ownership will remain strong, particularly away from big cities. The future will also bring greater demands for connectivity between people, vehicles and infrastructure. Robertson said: “We have a very strong software base which we will further enhance in the future by acquiring expertise from start-ups. For example we currently have 200 people in Chicago working on our own apps. But the big question as cars become more connected is who owns the data. There are any number of people who want access to data in return for their products but our view is that the customer owns the data. “We have developed back end structures so we can articulate the data into our own systems. That data is then only available when the customer wants it to be. We do not intend to give anything away, we will be looking to control it ourselves.” As the industry moves towards more connectivity and autonomous vehicles, will it be possible to retain brand identity? In the premium segment the brand is even more important. Robertson said: “Aspiration and what it stands for is our differentiator today and will be tomorrow.” As for driverless cars, much of the technology is already available with technologies such as forward radar, braking assist, lane keeping, cruise control and parking assist. Roberson added: “It is possible now to drive for many miles without using foot pedals and for short periods without touching the steering wheel. More hands off and eyes off will come, but brain off and driver off are still some way off. It all comes down to who is responsible and who makes the decisions.”
Convenience is key Car club users expect to be able to access a vehicle with a swipe of the screen.
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FLEET FOCUS Sweden
Swede Dreams Low interest rates and a strong economy are benefiting Sweden's fleet sector, reports John Kendall. weden is one of the smaller northern European countries, making up a significant part of Scandinavia with Norway and Finland. With a population of some 9.8 million, according to CIA estimates, the total population is roughly equivalent to one of the larger European cities. Despite this, Sweden has a long-established motor industry and is actively involved in the production of cars, trucks, buses and offhighway equipment. Volvo was originally developed as a subsidiary of SKF, a manufacturer of ball bearings, which is the origin of the Volvo name, meaning ‘I roll’, in Latin. Production began in 1927. The company went on to develop cars, trucks and buses, as well as marine and aircraft engines. Although the manufacture of all these continues today, the Volvo Group disposed of its car division, originally to Ford in 1999 and it was subsequently sold again to Geely of China in 2010. Production and development of Volvo cars continues at its Gothenburg base in Sweden. Although small in motor industry terms, Volvo has developed a reputation as a premium manufacturer, based on its history of safety developments and production of high quality, well-specified cars.
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Volvo will celebrate 90 years of carmaking next year.
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VOLVO CENTRAL TO SWEDISH AUTOMOTIVE SECTOR Gothenburg is also the home of the Volvo bus and truck division. The company developed a strong reputation for its truck products with models like the F88 of the 1970s, which like Volvo cars, pioneered safety developments. The company acquired US truck maker White in the 1980s and subsequently General Motors’ truck division, when GM decided to end truck production. Volvo and Renault worked together through the 1990s and it was expected to result in a merger of the two companies, with Renault expected to take responsibility for car production and Volvo assuming responsibility for truck production. The merger did not happen but Volvo subsequently bought Renault’s truck division and with it Mack Trucks of the US, a Renault Trucks subsidiary. The Group now also includes the former Nissan truck division, Nissan Diesel, now known as UD trucks, giving Volvo a broad global market for commercial vehicles. As a truck manufacturer, Volvo and its associated brands is the second largest truck manufacturer in the world after Daimler.
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A merger between Volvo Trucks and Scania trucks could have resulted in a powerful Swedish truck manufacturer with a large global presence. Although frequently rumoured as a possibility in the late 20th century, this did not happen. Like Volvo, Scania disposed of its Saab car making division in the 1990s, but to General Motors, after GM’s advanced plans to acquire Jaguar and Land Rover collapsed at the last minute in the late 1980s. Saab went into receivership and was bought by National Electric Vehicle Sweden in 2012, a company with a majority Chinese shareholding. Since then no cars have been produced. Scania is now part of the truck and bus holding of the VW Group along with MAN. Like Volvo, Scania has also established a strong global presence for its trucks, with a reputation for quality products. GROWING PRIVATE AND FLEET MARKETS The launch of the new Volvo XC90 SUV last year probably helped Volvo to increase car sales in Europe by 11.7% to 285,861. The launch of the larger S90 and V90 models this year will probably help to raise sales further. Separate European manufacturer data for truck sales have not been published in recent years, but in 2015, CV registrations in Sweden reached 51,585, up 6.3% on 2014. At the same time, total car registrations in Sweden reached 345,108, up 13.5% compared with 2014. That trend continued in the first two months of 2016, with February year-to-date CV registrations up 19.6% to 7,995. For cars, Swedish registrations rose by 9.9% YtD to the end of February to 48,517, while Volvo’s EU sales were up 10.6% to
37,524 in the same period. Given the strength of the business vehicle sector in the developed European economies, it would be reasonable to expect that it is a sector that is established in Sweden. According to Asset Finance International’s 2012 report on Sweden, cars were the most commonly leased asset in the country. In describing the fleet and business car sector in Sweden, Alphabet International told us, “The competitors in the fleet market sector in Sweden are made up of a mixture of large international companies and local/regional companies. “Historically, the fleet market has always been a financial lease market, but for a couple of years FSOL (Full Service Operating Lease) has been growing very fast. Today nine out of 10 new Alphabet customers choose FSOL. “In the fleet business, there are more and more tenders coming from international organisations, which then raises the importance of the geographical coverage of a fleet company. This leads to a higher degree of consolidation in the market.” PRICE AND VALUE FOR MONEY LeasePlan observes that, “On the Swedish leasing market, which is relatively small compared to the total European market, many competitors are active. This results in strong competition on price and who can give most value for the money. Competition is coming from both local players, including the car manufactures’ own leasing providers and major banks as well as international players. “Looking at the needs and focus of the clients, we can see a trend towards more focus on cost savings, increasing demand
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FLEET FOCUS Sweden
Technology
Volvo is pioneering ways to integrate smartphones and smartwatches with its vehicles.
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for help with fleet administration, the possibility of giving more support to drivers, and also help with harmonisation of the fleet and vehicle related suppliers within Sweden and the Nordic countries. Demand for consultancy services is also growing. “The Swedish market is quite unique in the sense that most companies prefer one supplier (sole supplier status) instead of two or more. This is due to the fact that one supplier is able to give more value in the form of consultancy services and less administrative burden. It is also a question of trust between the client and the fleet management company. “Most larger Swedish companies also strive for a long term relationship with its supplier to enable cost savings and to get better control of the total fleet. “The two dominant makes for cars in Sweden are VW and Volvo followed by BMW and Audi.” LeasePlan estimates the size of the total leasing market for cars in Sweden at 550,000. According to Alphabet, 156,000 cars were registered in the fleet sector in 2015. Interestingly, Alphabet reckons that some 1,120,000 cars are in use in the fleet sector in Sweden, but as we have said before, it depends on how the size of the market is estimated, so the variance with LeasePlan’s estimate is not necessarily surprising. SALARY SACRIFICE GROWING Alphabet suggests that the combination of a strong economy and low interest rates have helped the fleet sector in Sweden. The growth in the fleet car sector has had other benefits too, reckons LeasePlan, “It has lead to a growth in the form of new clients while existing clients are leasing more cars. It has also lead to an increase of salary sacrifice car leasing programs,” the company comments. Harsh winters are common in Sweden, particularly in the northern parts of the country. Inevitably, this has an impact on the kind of cars that fleet customers choose, “The fleet market is dominated by four brands: Volvo, Volkswagen, BMW and Audi,” comments Alphabet, “The typical car is a station wagon with towing hitch, diesel engine, automatic transmission and four-wheel drive.” Considering that Volvo started making station wagons in the 1950s and the company is renowned for building them, the preference for them in Sweden doesn’t come as much of a surprise.
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STATION WAGON COUNTRY It’s a trend that LeasePlan identifies too, “Station wagons are number one among business cars by far, while the demand for crossovers is growing. Station wagons have been popular for a long time, Sweden is, what Swedes call, a “station wagon country”. Swedes priorities are that there is plenty of room for the whole family in the car and that there is also enough space for the kids’ activity equipment, such as ice hockey. Station wagons have a high demand on the market for used cars which give the best residual value.” Growing economies tend to bring demand for light CVs with them and Sweden is no different. LeasePlan says the LCV sector is very important to the leasing sector, “In the Swedish market the LCV sector has a share of 13% but when it comes to leasing, the share is much higher than for cars,” the company comments. Alphabet adds that LCVs are of growing importance to the leasing sector. While fleet cars are treated the same as private cars for taxation purposes, the use of a company car attracts a benefit in kind tax, as in many other European countries, “A taxable benefit arises if you drive a car that you are able to use, due to your employment or conditions of work, for private use,” comments LeasePlan. “If, on the other hand, you only use the car for private use to an ‘insignificant extent,’ no taxable benefit is incurred. According to the Swedish Tax Agency, ‘insignificant extent’ means that the car is used a maximum of 10 times a year with a total distance driven of a maximum of 1,000 km. Both these conditions must be satisfied to qualify as tax exempt. Note that journeys to and from work are normally counted as private driving,” comments the company, “Regarding salary sacrifice cars, the company must pay social security fees on the benefit value that arises for the driver.” Alphabet points out that while the driver has to pay the Benefit-in-Kind tax, the employer pays a social security charge associated with the provision of a fleet car. Leaseplan reckons that operational leasing is responsible for around 15% of fleet car financing, but Alphabet suggests that when you just look at fleets with more than 10 vehicles in their fleet, the balance between operational leasing and finance leasing is closer to 50/50. Both companies see further growth in operational leasing.
AUTOROLA_IFW_Sweden_May16 20/04/2016 12:41 Page 1
REMARKETING Sweden
More information sells used cars Online channels continue to change the face of new and used car retailing in Sweden, says Autorola Sweden country manager, Brian Madsen. he Swedish new car market is on fire with February celebrating the market’s 26th consecutive month of growth and 2016 already looking set to beat 2015 as the largest ever Swedish market on record. This unprecedented level of growth looks set to continue as interest rates stay low, house prices keep rising and the average consumer has high levels of disposable income to spend on high value items such as cars. In parallel, the used car market also continues to grow with demand reaching a level that has forced traditionally conservative Swedish retailers into importing cars to satisfy the demand. Like many countries, the used car buyer is changing the way they research and source a car with 92% now mainly looking at classified websites to not only find a car but also get a feel for what it will cost and where in the country their car of choice is available. This increase in researching and purchasing used cars online has meant Autorola has used its expertise in online remarketing to work with OEMs to ensure their dealers represent their cars in the best possible way online. Price in one important factor, but not all. You need to monitor the market changes and adjust to stay competitive online. Understanding the drivers and the balance between supply and demand is key. But to get the customers to contact you, you need to have the best possible presentation, good photos and information. The modern day Swedish market shows that a dealer only providing one or a few photos of a car being sold online with a brief description of condition will struggle to sell that car when up against a dealer offering the same car with 10 – 15 good photos and much more detail on its condition. Anything that builds buyer confidence is positive for buying a car online which is often the most expensive purchase
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second only to buying a house. As a result of the growth of online many OEMs are now using real-time business intelligence solutions to collect, processes and analyses live market data. The old adage of increased stock turn increasing a dealer’s profitability is the same for retailers across the globe and OEMs that are spending more time on understanding the dynamics of their brand’s used performance both physical and online are bearing the fruits of a healthier, more profitable dealer network. Autorola has also seen its online tools help support banks and leasing companies when managing repossessions. Although repossession levels have been falling in Sweden the new online management system developed for asset owners has created great interest particularly with its ability to manage external suppliers, documentation and process monitoring across a single online system. The larger dealer groups, and finance and leasing companies are also using online to manage their vehicle inventories more efficiently. DIN BIL is the VW owned dealer group and the largest seller of new and used cars in the country and has recently entered into a partnership with Autorola Sweden. A fully integrated management system for handling part exchange cars coming into the group is being adopted, managing external suppliers via an online order module and monitoring the used car inventory in line with the current used car market. It’s an exciting time for the new and used car industry in Sweden and times are definitely changing. Those dealers and asset owners that are embracing online marketing and remarketing techniques with the latest market data mining tools are set to cut costs and sell more cars, with a guaranteed increase in their profitability.
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ROAD_IFW_Mustang_May16 20/04/2016 12:57 Page 1
Ford Mustang Tuning the Mustang for European tastes hasn’t dulled its desirability, says Alex Grant. SECTOR Coupe/Convertible PRICE €38,000–€49,000 FUEL 8.0–13.6l/100km CO2 179–306g/km
onceived as an affordable everyday performance car for mid-1960s America, the Mustang’s enduring appeal has made it as iconic a part of Ford’s history as the game-changing Model T. And this sixth-generation car is more accessible than ever before. That’s because, as an offshoot of the ‘One Ford’ strategy which is putting Americans behind the wheel of threecylinder Fiestas, the Mustang is beginning its 53rd year by launching in Europe. A move which not only introduces an icon on both sides of the Atlantic, but also fills a gap left open since the last Capri rolled off the line 30 years ago. This isn’t a small-volume import programme. The new model was developed to meet the demanding standards of European drivers – it’s a stiffer body structure, with aluminium front-end body panels to improve weight distribution, better brakes and cooling for high-speed driving, and independent rear suspension to improve ride and handling. The latter is an integral link setup, as used on the Jaguar XE, replacing the crude solid axle on its predecessor. Aside from a new-found ability to cope with Europe’s reaching 100kph in 5.8 seconds from rest, accompanied winding, undulating and infinitely variable roads, the by an artificially enhanced but very addictive exhaust biggest change in terms of suitability for export markets snarl. Small, turbocharged, high-revving performance is that it’s also the Mustang available in rightpetrol engines are a segment norm in Europe, hand drive. That’s something which opens and Ford’s most efficient muscle car provides FLEET FACT new opportunities in Australasia, South Africa more than enough pace for road use. and Japan as well as the United Kingdom. Ford But commit to the EcoBoost early, and don’t Ford has sold sees conquest opportunities among business be tempted to try the V8. The lure of the owners who might otherwise default to a 416hp 5.0-litre Mustang GT is a hard one to more than nine German executive coupe. resist, and it’s not surprising to see sales million Mustangs For those seduced by the styling, fuel weighted towards the bigger engine. It offers since 1964. consumption isn’t likely to be a deciding point, seemingly relentless torque, combining the but the range now starts with a four-cylinder alluring ability to charge towards the horizon engine – another first. It’s a 2.3-litre EcoBoost unit, similar in almost any gear with a second talent for lazy, lowto the one used in the new Focus RS, and far from a soft revving cruising. And, where the 2.3-litre EcoBoost looks option. Its 317hp is delivered with electrifying urgency, good value, the V8’s €43,000 start price makes German and Japanese super coupes seem extortionate. Of course, there are some aesthetic sacrifices to be made for that price difference. The cabin feels well built, but even the aluminium toggle switches and retro-modern design can’t hide the abundance of shiny plastics and wrinkled leather inside. They're details, not deal-breakers. The most important aspects are well excuted, though. Ride quality is firm but not unsettled on poor road surfaces, the steering is direct, and it doesn’t feel ungainly or twitchy on rural roads. However, for most users, satellite navigation would have been a more useful standard feature than the V8’s control and line-lock brakes, the latter enabling easy burnouts to warm the tyres for track driving. So the Mustang has become a true ‘world car’ at last, applying the qualities which made it so popular in America to a chassis engineered for Europe. Nothing at this price can match it for on-road presence and value, particularly with the 5.0-litre V8. If you can afford the fuel, the muscle car variant is absolutely the right choice, but you won’t feel short-changed by either engine.
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what we think A wholly emotional choice offering excellent up-front value and genuine day-to-day usability for those without CO2-restricted choice lists. Has the time finally arrived for Ford to launch its first diesel-powered Pony Car?
highlights First ever right-hand drive Mustang Fastback and convertible bodystyles available 2.3-litre EcoBoost four-cylinder turbo engine emits 179g/km CO2
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ROAD_IFW_DS3_Ranger_May16_Layout 1 20/04/2016 12:51 Page 1
DS 3 Great engines but the DS 3 struggles to be a premium competitor, reckons John Kendall. SECTOR Supermini PRICE €15,890–€26,340 FUEL 3.4–5.6l/100km CO2 87–129g/km
schedule, fuel consumption and parking location. t’s six years since the DS 3 made its first appearance, Front and rear parking sensors are now included, with a wearing Citroën badges, and since then 390,000 reversing camera, incorporating visual guidelines. Manual customers have bought one, with UK buyers heading the transmission models get Hill Start Assist. There are new list, buying even more than French car buyers. Facelifts tend colour and trim options for the interior. to come around more quickly than every six years, but it’s Power options include five petrol and two diesel engines. worth remembering that the 2008 financial crisis brought Three of the petrol engines are equipped with PSA’s PSA to the brink of bankruptcy. If the car was selling like 1.1-litre three-cylinder turbocharged petrol engines delivhot cakes, why spend money when there would have been ering 82hp, 110hp or 130hp. Two 1.6-litre four-cylinder more urgent calls on it? engines, developing 165hp and 210hp make up the petrol The facelift brings a revised front and some possibilities range. Then there are two 1.6-litre diesels producing 100hp for personalisation. Connectivity and driver assist systems or 120hp. 110hp petrol engines are are another focus for manufacturers at offered with PSA’s latest six-speed autothe moment and the DS 3 is no different. matic transmission. The 100hp diesel The front grille has been re-worked to offers the lowest emissions and fuel incorporate the ‘DS Wings’ and there are consumption with 87g/km, while the LED/xenon headlamps and fog lamps, lowest emitting petrol engine is the with LED sequential indicators. Other110hp petrol engine with 100g/km. The wise, DS has left much of the original exteautomatic variant offers 105g/km. rior unaltered, but the personalisation It is difficult not to be disappointed by options extend to the roof, body, door the revised DS 3. The engines are mirror housings, continuing inside with impressive and work well with the car. the dashboard and gear knob finishes. DS They also offer good economy potential says there are no less than 78 body/roof for both the three-cylinder petrol and colour combinations and a choice of four diesel variants. The big problem is that fabric roofs for the cabriolet. DS has set itself up as a premium brand The dashboard incorporates a new DS needs to do more – and the car does not convey that in build 7-inch colour touchscreen. Smartphone particularly in terms of quality. Both my co-driver and I found users can connect their phones to the build quality – for the the front seats to be uncomfortable in infotainment system, which is equipped less than 20 miles of driving. It’s hard to with Mirror Screen. This is a system that DS 3 to win over drivers see how small Audi, BMW or MInI drivis compatible with Apple CarPlay and of premium brands. ers would be tempted away by the DS3, MirrorLink for Android phones. DS has The engines are even with a good line-up of engines. DS also developed a ‘MyDS’ app for both the stars here. has many good ideas, but the fundamenApple iOS and Android. It is supplied free tals need to be right first. to remind drivers of their servicing
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what we think
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ROAD_IFW_DS3_Ranger_May16_Layout 1 20/04/2016 12:52 Page 2
Ford Ranger Ford’s revised Ranger faces some stiff new competition, reckons John Kendall. SECTOR Pick-up PRICE €23,400–€37,675 FUEL 6.5–8.9l/100km CO2 171–234g/km
ord unwrapped the face-lifted Ranger pickup at the Although the Ford Transit van, which is also powered by Frankfurt Show in September 2015. There were no this engine, will get a new 2.0-litre engine for Euro 6, the surprises in that it retains three body styles – doubleRanger will stay with the 2.2-litre engine. It’s not likely to cab, extended single cab (Super Cab) and single cab. get 2.0-litre power until a new model is launched, which The latest Ranger is distinguished by its new trapezoidal could be five or six years away yet. grille and if you opt for the range-topping Wildtrak, there’s The new 160hp engine delivers 385Nm of torque between a vibrant shade of orange paint too. 1,500 and 2,500rpm helping to make the Ranger more Much of the detailed changes are out of sight. Firstly there competitive with new rivals such as the Mitsubishi L200 and are revisions to the engine range. Replacing the 125hp and Nissan NP300 Navara. I drove both manual and automatic 150hp variants of the Ford 2.2-litre diesel are versions revised versions. The automatic offers smooth shifts, more so once for Euro-6 emissions limits. 130hp and 160hp variants replace the transmission oil has warmed up and would be an appealthe outgoing engines, which are available ing choice for those who use pickups to with automatic Stop/Start. tow regularly. If you do and you need a This combined with a switch to elechigh towing weight capacity, you will need tric power steering and new final drive to opt for either the 3.55:1 or 3.73:1 drive ratios has helped to reduce fuel ratio to take advantage of the 3,500kg consumption and emissions. Ford quotes maximum towing weight. The 3.15:1 ratio 171g/km and 6.5l/100km combined for axle limits towing weight to 1,800kg, the 160hp 4x4 model equipped with a which could be enough for many users. 3.15:1 final drive ratio. Trailer sway control is an option, which 4x2 and 4x4 variants are available, but would be particularly useful for high check your local specification for availtowing weights. ability. Both six-speed manual and sixThe Ranger is a capable off-road vehispeed automatic are available, but only cle too and would suit farming, forestry or with the more powerful engines. This construction users. Hill launch assist and means the 160hp variant as well as the hill descent control make driving on steep Reduced fuel consumprange topping 3.2-litre five-cylinder diesel slippery surfaces drama-free. It’s also tion and revised engines that has been part of the Ranger line-up equally at home on road, capable of cruisgive more appeal. The since the 2011 launch. This engine ing comfortably at motorway speeds. produces 200hp and 470Nm of torque Ranger is now available with a range comprehensive range of and if you opt for the Wildtrak, it’s the of driver assistance systems from Lane options make it one of only engine option. Wildtrak comes with a keeping Alert and Aid, adaptive cruise the best all-rounders in long list of equipment including the 18control with forward collision warning, the pickup sector. inch alloys, ‘sports hoop’ and 8-inch front and rear parking sensors and a rear colour touchscreen display in the cab. view camera.
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what we think
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ROAD_IFW_i20_May16_Layout 1 20/04/2016 12:56 Page 1
Hyundai i20 Active Hyundai’s new i20 Active Crossover offers good value for money, says John Kendall. SECTOR Crossover PRICE €16,900–€22,200 FUEL 4.5–5.1l/100km CO2 106–119g/km
That’s a cost that may not be worth it for low mileage users, he doomsayers would have us believe that diesel but that may also depend on available lease prices. power is on the way out for smaller cars, which The little petrol engine, like many other similar 1.0-litre might stand up better if it had ever been a popular three-cylinder turbo petrol engines is smooth and refined, choice. CO2 emissions may be top of the fleet agenda, but unless you get rev-happy, but with 171Nm of torque from cost has been a bigger factor, particularly among low a diesel-like 1,500-4,000rpm, for both 100hp and 120hp mileage users. Here, diesel models rarely score because of variants, you can keep out of the noisy zone. The five-speed the additional cost and petrol power has remained the manual gearbox makes the most of the torque spread and most popular choice for A and B-segment cars. I averaged an indicated 6.6l/100km on a short test route. That said, Hyundai’s i20 is a particularly poor example, The emphasis is on comfort, with soft springing, which as the latest 1.1CRDi model is available from around absorbs road surface irregularities well. Noise is fairly well €14,550 depending on market and with 84g/km CO2 suppressed and although the small emissions has fleet and retail appeal. petrol engine might not be first choice But there’s a new kid on the i20 block for extended motorway cruising, it’s and Hyundai has kept engine choices quite capable of doing so. for it to a minimum. As you might expect from Hyundai, it’s We’re talking Active here, the i20 well equipped. Standard equipment and Crossover model with 20mm raised ride trim will depend on the market, but most height and a list of appealing equipment Active models will come with a USB which includes 17-inch alloys, LED connector, while EU specification will daytime running lights, DAB radio and include ESC (electronic stability control), rear parking sensors (check local tyre pressure monitoring, and emergency market specifications). braking assistance. Unique bumpers, roof The engine choices are the new rails and a rear spoiler are all part of the turbocharged 1.0-litre T-GDi three-cylinActive package. Most markets will have an der petrol 100hp or 120hp engine availoption for TomTom Live services when able from around €16,900. This engine An impressive new the navigation option is specified. replaces the 1.4-litre petrol engine engine complements On the downside, other Hyundai with manual transmission across the the new Active crossover models have moved the game on further complete revised i20 range. Alternaand the i20 feels like an older Hyundai tively, Hyundai is offering its 90hp 1.4 model well. Quality and product, despite the 2016 revisions. The CRDi turbodiesel with prices from equipment levels interior doesn’t have the quality feel of around €19,950. So despite the complexprovide competition for some other models in the current range, ity of the 1.0 litre turbo petrol engine, the Citroën’s C4 Cactus. for instance. But it’s a competitive proddiesel, with aftertreatment systems still uct in the marketplace. adds around €3,000 to the starting price.
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what we think
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PROFILE_Alfa_IFW_May16_Layout 1 20/04/2016 11:55 Page 1
PROFILE Alfa Romeo
Aiming high
Alfa Romeo’s sales took a tumble in 2015, with import issues in key Asian markets and an ageing product portfolio struggling to hold attention. But with eight new models scheduled for release by the end of the decade and a stronger focus on US sales, the brand plans to turn its fortunes around in style…
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PROFILE_Alfa_IFW_May16_Layout 1 20/04/2016 11:59 Page 2
Manufacturer Alfa Romeo Total sales Europe 2015 56,796 Headquarters Turin, Italy EU market share 0.5% No. of models 4
Home market loyalty remains strong lfa Romeo recorded a -4% downturn in sales in its key region of Europe in 2015, despite putting in a strong performance in the home market of Italy and Austria. Giulietta continued to be the brand’s best selling model in the region, with sales up 1.6% over 2014. Giulietta currently represents around 2/3 of the brand’s sales to the UK market, with MiTo supermini accounting for 1/3 and the 4C sports car representing between 2-3% of the total. The Italian new car market is currently experiencing something of a recovery, and loyal Italian buyers purchased 30,511 Alfa Romeos in 2015, an 8% uplift over the previous year. Giulietta continued to be one of the most popular vehicles in the Italian C-segment throughout 2015, with the model posting an 11.9% segment share in the month of December. Austria’s buoyant new car market also contributed strongly to the brand’s European performance, with sales up 19% over 2014. Sales fell in the rest of the EU28 markets, hindered by an ageing product lineup. A facelift for Giulietta and all-new Giulia due later this year should help revitalise the brand’s image and capture European buyer interest. Alfa Romeo returned to the USA in 2014, following a near-20 year absence from the market. 4C led the charge, and a coupe and Spider version of the model will soon be joined by Giulia and Giulia Quadrifoglio to strengthen the model range. USA remains a key growth target for Fiat Chrysler Automobile, with cautious projections of up to 150,000 vehicles annually by 2020. According to figures provided by Automotive News Data Center, regional sales totalled fewer than 1,000 units for Alfa Romeo in 2015, so the success of these new models will be crucial if the brand is to meet its targets in the competitive but potentially very lucrative US market. These targets contribute to the brand’s wider sales aims, with Sergio Machionne, CEO of parent company Fiat Chrysler Automobiles, setting out the ambitious growth targets at a recent press conference. Alfa Romeo’s target of 400,000 sales annually by 2018 is under consideration, and will be scaled back to reflect a focus on the European and North American markets following import restrictions in China. The brand will proceed with its plan to grow market share with an expanded model range and investment in the sales network. Boosted by a €5m investment plan, the brand will launch eight new models by 2020. Giulia and refreshed Giulietta will be followed closely by a full sized saloon, two SUVs, two ‘specialty’ vehicles and a hatchback. A mid-size SUV will be positioned to rival the likes of BMW X3, and is due in 2017. From 2017-2020, a full size SUV model will come to market, alongside two further utility vehicles, one of which will be smaller in size. The ‘speciality’ models are expected to be in the vein of 4C to strengthen the sportier end of the portfolio, and the hatchback is earmarked as a replacement for Giulietta.
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ALFA ROMEO European sales, by country Country Italy France Germany UK Spain Austria Total
2014 28,326 6,353 3,556 5,523 3,071 1,216 59,190
2015 30,511 7,608 3,094 5,069 2,851 1,447 56,796
% change +8% -16% -13% -8% -7% +19% -4%
The road to 2020 Alfa’s renewed fleet line-up Compact – Giulietta (TBC) Alfa Romeo product plans show all future models will be based on a rear-wheel drive platform, which means the BMW 1 Series will no longer be unique when the replacement Giulietta arrives. There are two versions shown, perhaps indicating a compact sedan to suit global markets, but no replacement for the smaller MiTO. Compact Executive – Giulia (2016) Giulia marks the return to a segment last covered by the 159, which was withdrawn in 2012. Its replacement will be rear-wheel drive, like most of its rivals, and product plans suggest a Sportwagon is coming too. Expect sub-100g/km CO2 emissions and competitive automatic transmissions. Mid-size SUV – Stelvio (2017) The Giulia’s platform will underpin an SUV, rivalling the BMW X3, Audi Q5 and newcomers such as the Jaguar FPace and Porsche Macan. It’s rumoured for a 2017 launch as the ‘Stelvio’, named after the Italian mountain pass, and expect the line-up to include two-wheel drive versions. Executive – unnamed (TBC) Alfa Romeo never replaced the 166, cut in 2008 due to slow sales and a limited diesel offering. The Maserati Ghibli could provide a platform for its re-entry into this segment, likely in 2017, which could feature four and six-cylinder diesel engines. Could it also revive the iconic Alfetta badge? Large SUV – unnamed (TBC) Big business globally, it should come as no surprise that Alfa Romeo has plans to take on cars like the BMW X5 and Audi Q7. This could borrow engines from the Maserati Levante, but with a wider range to suit this sector’s corporate focus, possibly including a plug-in hybrid.
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PROFILE Alfa Romeo
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Where
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are they made?
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Manufacturing plant locations
FIN fleet in numbers
160mph Top speed of 4C coupe.
99g/km CO2 emissions of new Giulietta with 1.6-litre JTDM-2 turbo diesel engine.
7:39 minutes Time taken for Giulia Quadrifoglio to complete a lap of the Nürburgring. 38 / internationalfleetworld.com
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Cassino plant, Fiat Group Automobiles S.p.A, Piedimonte San Germano, Italy – Giulietta, Giulia
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Stabilimento Mirafiori plant, Fiat Group Automobiles S.p.A, Turin, Italy – MiTo
3
Maserati S.p.A, Modena, Italy – 4C
Giulia leads new model offensive ace-lifted Giulietta comes to market in late 2016, bringing updated styling and trim levels and the addition of the TCT dual-clutch automatic gearbox as an option for the 120hp 1.6 JTDM-2 turbo diesel. Updated styling ties the model more closely with forthcoming Giulia and brings a new honeycomb grille, black bumper inserts and revised headlamp and fog lamp surrounds. In addition, the line-up has been rationalised and now features three trim levels (Giulietta, Giulietta Super and Giulietta Veloce), two packs (Veloce and Lusso) and nine engine versions (petrol, diesel and LPG). Engine line-up sees the 120hp 1.6-litre JTDM-2 turbo diesel engine now available with the Alfa TCT twin dry-clutch transmission. The model offers 3.8l/100km and sub-100g/km of CO2 on the combined cycle with the ECO version. Alfa Performance also debuts on new Giulietta. Using an array of digital gauges and instruments, drivers can control the main parameters of the car, measure performance and see driving statistics on their smartphone, in addition to receiving real-time driving tips. The service is available on Uconnect 6.5” Radio Nav LIVE. Other features include a satellite navigation function with 3D bird's-eye view maps, sequential route instructions and One Step Voice Entry Destination. Spearheading Alfa Romeo’s new product offensive, Giulia will be available in all markets throughout the EMEA area by early 2017. In addition to the flagship 510hp Quadrifoglio model, three engines will be offered from launch: a 200hp 2.0-litre turbo petrol and a 2.2-litre turbo diesel engine with either 150hp or 180hp and marked out as the first diesel unit in Alfa Romeo’s history made entirely of aluminium. The diesels will be available with a six-speed manual or a new eightspeed automatic transmission; the petrol will be solely offered with the auto. A new Integrated Brake System for improved braking performance also debuts on Giulia along with a patented rear suspension design. Models will come with rear-wheel drive as standard, with all-wheel drive offered for some versions. Three trim levels will be offered – Giulia, Super and Quadrifoglio. Specification details will be released closer to launch, but the Super version features leather interior with full-grain leather seats and dashboard, combined with a real wood interior trim, as well as 18-inch wheels. Connect 3D Nav infotainment system and aluminium gearchange paddles fixed to the steering column are also included.
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ALFA ROMEO fleet model range
MiTO Variants: 3dr hatchback Markets: Europe, Asia, Africa, South America, Oceania. Fuel: 3.5-5.8l/100km CO2: 90-134g/km
Giulietta Variants: 5dr hatchback Markets: Europe, Asia, Africa, South America, Oceania. Fuel: 3.8-6.8l/100km CO2: 104-157g/km
Giulia Variants: 4dr sedan Markets: Global. Fuel: TBA CO2: TBA
4C Variants: Coupe, roadster Markets: Global. Fuel: 6.8-6.9l/100km CO2: 157-161g/km
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fleet in figures
SUV takeover? Are SUVs taking over the automotive world? Is diesel declining in Europe? John Kendall looks at the numbers . Diesel decline Diesel vehicles slipped below a 50% market share in Europe during Q1 2016, despite rising volumes.
he varying fortunes of the dieselpowered car are particularly interesting to those involved in the car market in Europe. The reason is an obvious one – in a part of the world where fuel prices tend to be the highest, fuel efficiency has traditionally been more of an issue in Europe than in North America or other parts of the world. The pressure to reduce CO2 emissions has also played a part, with diesels offering reductions of up to around 25% compared with petrol engines of similar power. The VW diesel scandal has not helped diesel car sales, even though the introduction of Euro-6 emissions limits means that diesel exhaust gases should carry the lowest level of pollutants ever. LMC Automotive suggests there has
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been a trend for the past few years for some decline in European diesel market share. This is only to be expected as manufacturers have introduced downsized turbocharged petrol engines. Turbocharging brings greater efficiency for petrol and diesel engines, but the new generation of downsized engines tuned for economy has put pressure on small to medium sized diesels. The new petrol engines can’t match the fuel consumption or CO2 emissions of a small diesel, but diesel engine technology tends to be more expensive. For low mileage drivers, the comparative cost is likely to work in favour of the small petrol engine. This is the area of the market where diesel has generally taken a smaller share of the market anyway, because
price sensitivity tends to be greater here. Another factor is that for the latest generation of A-segment cars – city cars, most are not available with a diesel option. Again it’s a matter of price sensitivity and profitability. Diesels are generally not price competitive at this end of the market. LMC reports that the diesel car market share in Europe slipped below 50% in March and the company expects that the share might remain below 50% in 2016. That said, the actual volume of diesel car sales has continued to rise. Looking at LMC’s year-to-date data for the larger European markets, diesel sales in the 17 larger markets rose from 1,774,500 YtD 2015 to 1,833,400 YtD 2016, an increase of 3.3%, while market share for new diesel cars slipped from
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52.2% YtD 2015 to 50.1%. Based on data for March alone, the diesel market share fell to 49.1%. It should be said that some of the data for March 2016 is based on estimates.
Western Europe Data from the European Automobile Manufacturer’s Association (ACEA) for March 2016 was not available as we went to press, but both LMC and JATO dynamics have produced data for March and Q1 2016. JATO suggests that analysis of the ‘Big Five’ European markets; France, Germany, Italy, Spain and the UK shows that Q1 registrations were up 8% to 2,892,000 and up 5% in March compared with March 2015 to 1,358,000. Notably, SUVs accounted for most registrations, responsible for more than 25% of total registrations, reaching a total of 343,400. Germany remains the largest market with some 791,000 registrations YtD, with the UK second with 772,000 registrations. March registrations in the UK would have been boosted by a change in registration plate, which takes place in March and September. LMC also suggests attractive finance deals are helping to fuel the UK market. The UK recorded the highest number of registrations for March at 519,000. The Italian market rose 21% in Q1 (YtD) to 524,000 ahead of France with
516,000, an 8% increase and Spain with 289,000, also with an 8% increase. Interestingly the German market was flat in March while Spain saw March sales down 1% compared with March 2015. Volkswagen remained the biggest selling brand in the ‘Big five’, but with total registrations down 1% YtD to 317,800. JATO suggests that the company has been losing market share for nine consecutive months, which would pre-date the emissions scandal. The Golf remains the best seller with 96,000 registrations YtD. VW is not alone in losing market share, being joined by fellow VW brand SEAT, as well as Nissan. The overall effects for VW could be far worse than this signals.
Eastern Europe LMC indicates that the sales volume in central and Eastern Europe continued to decline, with March sales down over 3%, but suggests that the decline could be nearing the bottom. Data suggests that the Q1 Eastern Europe sales were down -4.8% to 825,448.
China JATO has produced full year data for China in 2015. This shows that car sales rose by 11% in 2015 to 18.9 million. Even so the growth rate is slowing, down from 13% in 2014 and 16% in 2013 according to the company. Factors affect-
ing the market are the economic slowdown in China and the car purchasing restrictions introduced in eight cities including the largest population centres of Guangzhou, Shanghai and Beijing. JATO points out that while registrations have been falling in the largest cities, as intended, they have been rising in smaller cities where there are no restrictions. As in other parts of the world, SUVs are driving new car sales in China, with sales up 45% in 2015 to 6m units, according to JATO. SUVs accounted for 32% of the 2015 new car market in China. JATO says that while the SUV boom has benefited Chinese manufacturers, it is international manufacturers who dominate the market. Volkswagen is the best selling brand with over 2.6 million new registrations in 2015. Toyota was in second place with over 1.1m registrations. The best-selling Chinese brand was Changan with 694,000 sales making it the eighth best selling brand in China. “Our analysis shows that the Chinese automotive sector is in a period of transition. Growth is coming from less mature cities and from newer segments such as SUVs. Regulators and manufacturers now face the challenge of finding a way to sustain such an economically important industry, while also addressing its environmental and social impacts,” commented Felipe Munoz, Global Automotive Analyst at JATO Dynamics.
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fleet in figures
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LMC Automotive suggests that data indicates that Chinese car sales picked up in March with the selling rate rising to 26.5m units/year compared with 24.5m units in February. LMCA suggests that this could be due to a temporary tax cut on models with smaller engines. LMC also points to a stabilising financial market in China as a factor, following the volatility at the start of the year.
China and the NEV Electrification of cars in China increased significantly in 2015 according to LMC. Referred to as New Energy Vehicles, the sector includes battery and plug-in hybrid models, which between them accounted for 86% of the 2015 market for NEVs. Overall sales tripled in 2015, reaching 222,000. Sales of plug-in models rose 315%. Hybrid models are not included in NEV sales and do not attract government subsidies. LMC reports that the annual subsidies are lowered annually at the beginning of the calendar year. This causes a spike in demand for NEVs in December and in December 2015, sales reached 87,000 units, around 40% of the annual total. LMC offers an interesting insight into the grants available: “While there is
little doubt that grants have boosted the NEV market, they have also led to market corruption – in other words, subsidy fraud – as a number of automakers focused their efforts on cheating the system rather than on technological improvements. At the end of last year, the government made a snap announcement that it would investigate this scandal, which led to a huge public outcry as questions were asked as to the validity of the subsidy policy in shaping the future of the NEV market. In February 2016, in a bid to curb the endemic corruption, the government stated its plans to reward companies that provide high-quality batteries in lieu of offering a blanket subsidy to every battery manufacturer. Looking further ahead, with the grant policy set to expire at the end of 2020, a credit system, similar to California’s ZEV scheme, will be implemented as a way of punishing companies that fail to meet official emissions standards.” LMC indicates that in total in 2015, national and local grants for NEVs dropped to CNY62,000 (€8,496) from CNY70,000 (€9,592) in 2013. This will fall again to between CNY50,000 (€6,851) and CNY60,000 (€8,222).
North America According to Scotiabank, few dealer visitors over the Easter weekend contributed to a lower rate of increase in light vehicle sales in the United States in March than expected. Car sales appear to have been responsible for the results, with Scotiabank reporting that sales of imported brands were 14% lower than a year earlier. The US love affair with the pickup truck continued though. Scotiabank explains the background to the market performance, “Despite last month’s weaker-than-expected performance, industry fundamentals remain solid, driven by strong employment gains, rising wages and low interest rates. Highlighting the positive industry backdrop, automakers boosted their second-quarter North American production schedules by 3%, an additional 247,000 units. Light trucks account for more than 70% of the increase in assemblies, reflecting the surge in popularity of these models.” LMC also indicates that US OEM incentives rose 6% year-on-year, while average transaction prices remained flat. The Canadian market is also buoyant with growth exceeding 9% year-on-year for the first three months of the year.
Crossovers on the rise In Western Europe, a quarter of registrations in the first quarter of the year were SUVs – 343,400 units.
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