International Fleet World November 2013

NOVEMBER 2013

internationalfleetworld.com

INTERNATIONAL

FLEETW RLD Essential Business Information for International Fleet Decision Makers

Driver training Reducing accidents and costs

Profile Hyundai

Driven Opel Insignia Volkswagen e-up!

Ford Transit Connect

IAA 2013

Stars of the Frankfurt Show

THE NEW SEAT LEON ST WITH ONLY 85g OF CO EMISSIONS PER KM* 2

ENJOYNEERING MORE SPACE FOR YOUR BUSINESS The all-new SEAT Leon ST combines contemporary dynamic design with unbeatable practicality, versatility and driving pleasure. It offers a host of functional equipment details that significantly benefit everyday usability. TECHNOLOGY TO ENJOY. / FOLDABLE REAR AND PASSENGER SEATS / ADAPTIVE CRUISE CONTROL / ADAPTIVE CHASSIS CONTROL / EMISSIONS FROM JUST 85g OF CO2/KM*

SEAT Full LED lights

SEAT FOR BUSINESS

587 LITRES OF BOOT SPACE RISING UP TO 1,470 l

SEAT EASY CONNECT TOUCH SCREEN INCLUDING NAVIGATION SYSTEM

SEAT FOR BUSINESS IS NOW ONLINE, BE SURE TO VISIT OUR NEW PAGE.

SE AT.COM

Average consumption: 3.2* - 5.9 l/100 km. Average CO2 mass emissions: 85* - 137 g/km. * Available from February 2014 onwards.

NOVEMBER 2013

internationalfleetworld.com

INTERNATIONAL

FLEETW RLD Essential Business Information for International Fleet Decision Makers

INTERNATIONAL

FLEETW RLD internationalfleetworld.com

Driver training Reducing accidents and costs

Profile Hyundai

IAA 2013

Driven

Opel Insignia Volkswagen e-up!

Ford Transit Connect

Stars of the Frankfurt Show

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

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

STAG Publications

ÂŽ

VIEWPOINT

CONTENTS

The bi-annual Frankfurt Show is rarely a disappointment, except for journalists who have to cross the vast showground many times over two days as we chase down press conferences and interviews. The mood of the show echoed that of the European car market, which is showing signs of recovery in a number of countries.

Frankfurt reflected that optimism, with a wide range of new cars on show for the first time.

If the show had a theme, it was one of continued focus on lowering emissions and fuel consumption and the number of electric car debuts showed how the technology is continuing to mature. At the same time, there were a few examples of un-reconstructed gas guzzlers. Buyers may not be queuing for them, but it was good to see makers with the confidence to put them on show.

The BMW i3 made the transition from show car to production car at Frankfurt and it could be the most eagerly awaited BMW launch for a while. Once electric cars become mainstream premium models, buyers might start to take them more seriously. There’s still some way to go on price and battery range, but continuing research means we can expect a gradual, progressive improvement.

Only this week Volvo unveiled a new lightweight carbon-fibre battery, which could be moulded into body components. It could be the shape of things to come.

04 News Analysis 10 EV News Analysis 12 IAA 2013 Stars of the recent Frankfurt Motor Show.

20 Interview SEAT Chairman, Jurgen Stackmann chats to IFW.

24 Risk Management How driver training = reduced costs.

28 Technology Why car sharing is bouyant in Japan.

30 Interview Alain Visser of Volvo Cars, on the huge potential for growth in the fleet market.

32 FOCUS ON...

Austria.

35 Remarketing 36 Strategy European residual value confidence.

37 2013/14 Fleet Calendar 38 PROFILE Hyundai.

45 Launch Report Opel Insignia / Volkswagen e-up!/ Ford Transit Connect / DAF LF.

50 Fleet In Figures Analysing the latest ACEA sales charts.

12 30 38 47

John Kendall Editor

To subscribe to Fleet World visit: fleetworldsubscriptions.co.uk

IFW November 2013

03

news analysis

EU governments back to drawing board on CO2 limits European environment ministers have scrapped an agreement to limit CO 2 emissions from new cars to 95g/km by 2020, after Germany secured sufficient support to block the agreement.

The deal had been agreed in June by the European Parliament, the Commission and EU governments but Germany had lobbied for it to be reopened. Now, countries including the UK, Slovakia, the Czech Republic and Hungary have backed its campaign to scrap the agreed deal.

Instead Germany is calling for the limits to be phased in so they apply to all new cars from 2024, ensuring that its domestic automakers, which tend to produce higheremitting vehicles, would not be hit so hard.

The move has been criticised by environmental groups.

Rebecca Harms, co-president of the Germany Greens party, said: ”German Chancellor Merkel has ridden roughshod over the EU’s democratic decision-making process by strong-arming other EU governments into reneging on this legislative agreement. What is the point of the EU’s democratic legislative process if the German government can simply ignore the outcome and force through its will and its narrow national interest? ”The agreement reached between the EP and Council was already low on ambition. Weakening the agreed 2020 limits, which have long been known, is a shameful sop to German car manufacturers and will slow the development of new technologies to deliver more efficient and less polluting cars.

Unfortunately, some in the European car industry continue to view climate protection and competitiveness as mutually exclusive rather than complementary.”

Having effectively rejected the June deal, Council must now decide what changes it wants to the previously agreed deal. This will then be sent to the European Commission and Parliament, which will consider the amended proposal.

ARI continues European expansion with HPI Fleet acquisition ARI has announced the acquisition of Germany’s HPI Fleet and its related European business entities as part of its continued expansion in Europe.

The firm said the acquisition supports its continued development of a strong, strategic global footprint and follows the company’s recent expansion into the UK and Germany.

ARI’s European operations will now include service delivery to customers in Austria, Belgium, Denmark, Finland, France, Germany, Italy, Ireland, Luxembourg, the Netherlands, Portugal, Spain, Sweden, Switzerland and the UK. The deal is expected to close in October, at which time HPI Fleet will operate as ARI.

04

internationalfleetworld.com

Masternaut futureproofs new telematics solution

Masternaut has launched its next-generation Connect telematics solution, said to offer a step-change in features, enterprise integration, and platform scale, robustness and security.

Masternaut Connect is a SaaS suite of modular applications running within an integrated and harmonised web interface, hosted in a new private dedicated cloud infrastructure.

The company says the new platform is future-proofed, offering the robustness and scalability to handle big data demands and unparalleled connectivity. It also offers real-time event processing while storing data for longer, allowing for analytics and compliance purposes.

Alex Rothwell, Masternaut’s CTO, said: ”Incorporating custom-designed user interfaces, in-stream processing and data aggregation and analytics engines, this is a true first for any organisation within our industry. Masternaut Connect leapfrogs current platforms on the market, providing a comprehensive and future-proofed telematics service via one single technology stack, in order to deliver game-changing business intelligence.”

LeasePlan expands Austrian footprint with BAWAG acquisition LeasePlan Austria has completed its acquisition of BAWAG PSK Fuhrparkleasing GmbH, adding around 6,500 cars to its Austrian portfolio.

Announced earlier this year, the acquisition sees LeasePlan acquire 100% of the share capital of the Vienna-based firm.

The company said the move enables it to further expand into the profitable Austrian small and medium enterprise sector, and further supports LeasePlan’s selective growth strategy.

Nigel Storny, managing director at LeasePlan Austria, said: ”We see the transaction as an excellent strategic fit and we are looking forward to welcoming our new colleagues.”

NEW

OFFROAD. BUT NOT OFFLINE. Experience a unique level of connectivity with IntelliLink.

And our most efficient engines ever.

opel.com Fuel consumption combined 8.5–5.6 l/100 km; CO2 emissions combined 199–147 g/km (according to R (EC) No. 715/2007).

news analysis

Kia Fleet boss joins Hyundai Motor Europe Mr Chan Uk Jun, the former manager of fleet and remarketing at Kia Europe, has been appointed to the new role of leasing sales manager at Hyundai Motor Europe, effective immediately.

Mr Chan Uk Jun brings 15 years of experience in sales and marketing functions for General Motors Japan, Jaguar and Mercedes-Benz as well as his role at Kia Motors Europe.

The newly created role of leasing sales manager carries responsibility for all European leasing companies, with Hyundai adding that this is an indication of how important this strategic sales channel is for the carmaker.

Mr Chan Uk Jun’s focus will be on pan-European partnerships with major leasing companies to support direct sales to international clients and the development of the SME segment with white label partnerships.

He will report to Oliver Lajara and Sam Soo Kim, general manager fleet and remarketing.

Renault-Nissan & Avtovaz announce joint purchasing organisation in Russia Renault-Nissan and Avtovaz are setting up a jointly owned purchasing organisation to leverage savings and improve the global quality and competitiveness of the Lada brand.

The company will be jointly owned by Avtovaz and Renault-Nissan Purchasing Organization (RNPO) on which it will be modelled. Dubbed Common Purchasing Organisation (CPO), the company will manage a defined scope of purchasing for the brands related to industrial equipment, powertrains and vehicles based on common platforms.

Using RNPO strategies, the company is expected to generate significant savings for the three partners in Russia thanks to increased volumes and better pricing with suppliers.

Daniel Perry has been appointed CEO of the new organisation and will be based at the company’s headquarters in Togliatti, Samara Oblast, Russia.

Avtovaz and Renault-Nissan have been strategic partners since 2008 when Renault took a 25% stake in Russia’s largest automaker and the Renault-Nissan Alliance is currently in the process of taking a controlling stake in the firm.

06

internationalfleetworld.com

EU puts focus on safety to halve fatalities by 2020 The EU decision to increasingly focus on injury reduction as part of its road safety priorities towards 2020 has been welcomed by senior traffic police in Europe at the annual conference of TISPOL, the European Traffic Police Network.

Speaking at the event, TISPOL president, Koen Ricour, commented: ”Reductions in numbers of serious injuries have not kept pace with those in the numbers of fatalities. We welcomed the EU decision to make injury reduction an important part of its road safety priorities towards 2020; we believe this willingness to give serious injuries a greater prominence will also support the EU’s existing aim of halving the number of road fatalities by 2020. ”The strategy used for dealing with fatalities will be applied for serious injuries, based on the recently agreed common definition of a serious road traffic injury. Data collected in 2014 will form the basis of new serious injury reduction targets for 2015-20,” he explained.

Tyre labelling influences European fleet purchases European commercial vehicle fleets are increasingly using the EU Tire Label as a factor in their purchasing decision, according to new research.

Carried out by MV2 Conseil on behalf of Goodyear Dunlop, the research involved around 500 fleets in France, Germany, Italy, Poland and Spain, with just over half of the fleets (54%) saying that the EU Tire Label influences their tyre choice and two-thirds (66%) putting fuel efficiency as the most important criterion on the label.

The data was announced at a roundtable debate hosted

by Goodyear Dunlop in Brussels, where it was also revealed that more than two out of three consumers who bought tyres in 2013 have been influenced by the EU Tire Label.

Speaking at the event, Michael Staude, general manager of tires and wheels at the independent certification company TÜV SÜD Automotive, emphasised the need for effective local enforcement systems across the European Member states. He said: ”Long-term, the legislation can only be successful and credible in the eyes of consumers and dealers if all tyres sold within, and imported into, the European Union fully comply with the legislation.”

Malcolm Harbour, member of the European Parliament and chairman of the Internal Market and Consumer Protection Committee, who played an integral role in the adoption of the EU Tire Label legislation, added: ”I am pleased with the legislation’s success so far but from a legislator’s point of view we need more time to fully understand the environmental and safety benefits of the label. The legislation will be assessed again in 2016.”

Watch a recording of the debate at: www.thetirelabel.com

for the latest news, visit internationalfleetworld.com

Carmakers show strong growth in latest Interbrand Best Global Brands report

in brief...

Carmakers have once more played a key role in the Interbrand Best Global Brand report, making up 13 of the top 100 most valuable global brands in this year’s newly published research.

The report is run by the brand consultancy on an annual basis, identifying and examining the top 100 most valuable global brands.

This year’s report saw Toyota selected as the top ranking brand within the automotive sector for the second consecutive year, ranked in position 10 again, with a 17% rise in its brand value.

Interbrand noted that the Japanese automaker also topped its 2013 Best Global Green Brands ranking and continues to demonstrate strength in driving customers to dealerships.

Other automotive brands that experienced strong growth in terms of brand value were Porsche and Nissan. Porsche came in position 64, up from 72 last year, and increased its brand value by 26%. Meanwhile, Nissan, in position 65, up from 73 last year, increased its brand value by 25%. In addition the 2013 report saw a new entry from Chevrolet, which came in 89th place.

Other carmakers listed comprised Mercedes-Benz (ranked 11th again, +6%), BMW (ranked 12th again, +10%), Honda (position 20, up from 21 last, +7%), VW (position 34, up from 39 last year, +20%), Ford (position 42, up from 45, +15%), Hyundai (position 43, from 53 last year, +20%), Audi (position 51, up from 55, +8%), Kia (ranked 83rd, up from 87 last year, +15%), and Ferrari (position 98, up from 99, +6%).

EIB provides €300m to PSA Peugeot Citroën for low carbon technologies

Maximum Euro NCAP rating for Qoros 3

GE Capital Fleet Services has unveiled its new telematics solution developed to help fleets in the US reduce costs, minimise unplanned downtime and increase driver safety and productivity.

Launched in conjunction with GE’s Minds + Machines event in Chicago, the new solution offers a customisable dashboard to allow service and delivery fleet managers to track where their drivers and vehicles are and how they’re performing.

A five-star Euro NCAP rating for the Qoros 3 sedan sets a firm foundation for the Chinese carmaker’s entry into the European market, according to IHS Automotive.

The result – the best-ever for a Chinese OEM – is an excellent start to Qoros’ attempts to be seen as a credible player in the European market.

Tim Urquhart, senior analyst at IHS Automotive, said: ”The project’s credibility has been given a major boost by the result, which removes one of the key objections of European consumers to the prospect of purchasing a car from a Chinese OEM. ”The company also have a very useful marketing platform on which to spearhead the brand’s launch in Europe as a result of the positive EuroNCAP result.”

However, he added that major European market challenges await the company, not least establishing a sales and servicing network that can fully support the brand’s growth in the region.

IHS Automotive added its forecast that Qoros will experience a slow rise in sales in Europe, with combined sales across the region reaching 25,000 units in 2016 and then 30,000 in 2017, with sales rising to over 100,000 units in the Greater China region by 2017.

The European Investment Bank has agreed to provide €300m in financing to PSA Peugeot Citroën for the development of low carbon technologies.

The financing will be used by the group for the programme to comply with Euro 6.2 emission standards applicable as from 2017. ”Our group is leading the way in low carbon technologies,” said JeanBaptiste de Chatillon, PSA Peugeot Citroën’s executive vice president, finance and a member of the Management Board, ”and this loan will allow us to maintain our advance.”

GE Capital Fleet Services launches telematics solution

LeasePlan pays off government bond early LeasePlan Corporation NV has announced that it has bought back the entire $500m government guaranteed bond that was due to mature in June 2014.

In a statement the company said that, following on from last December’s successful tender offer for government guaranteed bonds maturing in May 2014, it had taken further advantage of the continued success of its various funding franchises and strong liquidity position to pay down additional government guaranteed funding.

IFW November 2013

07

With distance function, park assistance function and role model function.

The new E-Class. Efficiency in top form.

A Daimler Brand

The new benchmark for efficiency. With a combined consumption of just 4.1 l/100 km, the E 300 BlueTEC HYBRID has CO₂ emissions of only 107 g/km. That makes it one of the most economical models in its class and the ideal vehicle for any fleet. www.mercedes-benz.com/fleet

Fuel consumption urban/extra-urban/combined: 14.4–4.1/8.2–3.8/10.5–4.1 l/100 km; combined CO₂ emissions: 246–107 g/km.

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

Efficiency class: F–A+. different types of vehicle. The vehicle shown features optional equipment.

EV news analysis

Hybrids to have a major role in future vehicles, says Toyota chairman Toyota Motor Corporation chairman, Takeshi Uchimayada, has said the automotive industry should target sales of five million hybrids in the United States by the end of 2016, adding that the technology has a major role to play in future vehicles.

Uchimayada, who became chairman in June, is best known as the leader of the project to develop the original Prius in the late 1990s. The company has since sold five million hybrids globally, of which three million are the Prius.

Speaking to the Economic Club of Washington, D.C., he said: ”Some people say hybrid vehicles such as the Prius are only a bridge to the future.

But we think it could be a long bridge and a very sturdy one. There are many more gains we can achieve with hybrids.”

But, he added, tough goals were needed. ”Back in 1993, my group was supposed to come up with a car for the 21st Century. My team proposed to top management that we design a vehicle that would achieve one and a half times better fuel consumption. We thought that was extremely ambitious. But top management told us, ‘Double it. You are not being ambitious enough. You should think about the century ahead.’

”In each of the previous moves to a new generation, we achieved a 10% increase in mileage per gallon. We are committed to beating that record this time,” he said. ”It’s only when we put ourselves under the same kind of intense pressure we faced in developing the Prius that we can achieve great goals. That’s what it takes. I want our industry to achieve this goal.”

Alphabet hopes to double EV adoption in the UK Fleet mobility solutions specialist Alphabet has set a target to double plug-in and electric vehicle sales in the UK, from a projected 4,200 in 2013 to 10,000 within three years, through a new initiative.

The company launched its new consultancy service, AlphaElectric, in October. Run by Alphabet’s eMobility team, it provides clients with a bespoke business case to show where plug-in cars and vans can work on their fleet, and is aimed at removing barriers and boosting confidence in the products.

Although Alphabet is part of the BMW Group, AlphaElectric is offered across the full range of plug-in vehicles, regardless of manufacturer. The company said a wider choice of vehicles and the government’s £37m (€43.6m) investment in infrastructure would both help the market to grow.

Richard Schooling, CEO of Alphabet, said: ”While there is so much talk about limited battery life, car performance and available charging points, we think the single biggest barrier to EV adoption, both privately

10

internationalfleetworld.com

and corporately, is lack of joined-up thinking. ”Manufacturers of various new EV models have possibly focused on the benefits of their own vehicles, with not enough time and effort being spent on helping the businesses or drivers to overcome their fears about adopting a new technology.”

for the latest news, visit evfleetworld.com

Charging infrastructure must be easier to access, says global alliance The Open Charge Alliance, a global consortium of electric vehicle stakeholders, has said a lack of interoperability between charging point providers is a major barrier to plug-in vehicle ownership, as it announces its new charter.

Founded as the Open Charge Point Protocol (OCPP) Forum, the consortium’s members include ABB, Eaton, ESB, E-laad, Greenlots and others, with a combined 10,000 charging point installations sharing standardised software which allows units from different manufacturers to communicate.

Version two of the OCPP software platform is set to launch in the coming weeks, and the Alliance is now seeking additional members to help standardise an even larger share of the public charging infrastructure. In turn, this is aimed at allowing drivers to ‘roam’ across different networks without requiring numerous membership cards and, as a result, facilitate long-distance travel.

CarCharging acquires 12,500 ECOtality EV charging points Florida-based electric vehicle charging equipment manufacturer CarCharging has acquired the assets for ECOtality’s Blink brand of charging points at auction, following the latter’s bankruptcy filing.

The acquisition includes a network of 12,560 public access quick and fast charging stations across the United States, as well as the supporting operating system provided to drivers, businesses and utilities. ECOtality’s research and testing resource and electric industrial vehicle businesses are not included.

CarCharging chief executive officer, Michael D. Farkas, said: ”Since our inception, CarCharging's intent has been to grow our business organically and through acquisitions, and with the purchase of ECOtality's Blink assets, we believe that it will solidify our position as the leader in the electric vehicle charging industry.”

ECOtality, which had been working towards a government-subsidied nationwide charging infrastructure named The EV Project, filed for bankruptcy in September following slow commercial sales, suspension of funding and difficulties with its public charging equipment.

in brief...

Valeo acquires Norwegian EV component manufacturer Component manufacturer Valeo has acquired the automotive division of Norwegian electronics company Eltek for an undisclosed sum, adding the company’s on-board electric vehicle chargers to its product portfolio. A new facility will open in Norway, with 16 Eltek staff transferred as part of the acquisition.

China renews EV subsidy programme China has renewed its electric vehicle subsidy programme until the end of 2016, nine months after the original scheme expired. It offers buyers of electric, plug-in hybrid and hydrogen fuel cell vehicles a subsidy of up to €7,259 against the purchase price, contributing to a target of five million EV and hybrid models on the road by 2020.

Frito-Lay adds 20 more electric trucks to New York fleet PepsiCo snack food subsidiary FritoLay North America will add 20 electric trucks to its New York fleet by the end of the year, bringing its US-wide total to 208 vehicles. Once deployed, the 35 strong electric fleet will be Frito-Lay’s second largest in the United States, saving 238,000 litres of fuel and reducing greenhouse gas emissions by 500,000kg per year in New York alone.

Extended-range electric Cadillac on sale from January Cadillac’s first electric vehicle, the ELR coupe, will go on sale in January, based on the same extended-range drivetrain as the Chevrolet Volt and Opel/Vauxhall Ampera.

Sold only in two-door coupe form, the ELR will be available across the United States from the start of next year, priced at $75,995 (€56,300) – twice the price of the Volt. But, with tax credits, Cadillac said this could come down to $68,495 (€50,700). Although the drivetrain is shared between the ELR and its siblings, it adds a more luxurious interior and a function to increase energy regeneration via paddles on the steering wheel.

Electric Highway now open between London and Leeds Green energy company Ecotricity has completed its Electric Highway network of fast charging points between London and Leeds in the UK, as part of a partnership with Nissan. Located at service stations along major motorway routes, the network offers an 80% charge in 30 minutes, said to be similar to the time drivers stop for a break en route.

IFW November 2013

11

motor show review FRANKFURT SHOW

THE HIGHLIGHTS Alex Grant and John Kendall pick their favourite cars on display at this year’s Frankfurt Motor Show.

<

Citroën’s C Range gets a refresh

>

Hybrids become aspirational

Now a mainstream technology, Frankfurt’s halls were peppered with new models featuring partelectric drivetrains showing increasingly diverse applications of the technology. The diesel-electric Range Rover and Range Rover Sport and BMW’s X5 plug-in hybrid concept all retain four-wheel drive, while Mercedes-Benz showed its 69g/km S-Class plug-in hybrid. Even supercars are benefitting – the BMW i8 with 59g/km and Porsche 918 Spyder with between 70-79g/km offer extremely low emissions for high performance cars.

12

internationalfleetworld.com

With the design and luxury-focused DS Line now established, Citroën’s attention has turned to its C Range models. Designers say the Cactus concept closely previews a model due to be unveiled early next year, likely to replace the C4. In the meantime, the C4 Picasso is the first production car to feature the new design language, and its seven-seat C4 Grand Picasso sibling will account for 75% of the line’s UK sales, offering CO2 emissions from 110g/km for its new Euro 6 diesel engine.

> Infiniti targets C-segment Infiniti has desperately needed core fleet models and the arrival of the fleet-heavy Q50 in November is the first step towards this. The Q30, which will be vying for a foothold in the highly competitive premium C-segment, is earmarked for production at the Nissan plant in Sunderland starting in 2015 and will be a backbone of its fleet presence in Europe. Infiniti has also hinted in the past that it could use the LEAF’s electric drivetrain.

> New Ford S-MAX looks sharp The production version of the next S-MAX is unlikely to change much from this Frankfurt concept car, which is likely to share its platform with the forthcoming Mondeo. But don’t hold your breath. A spokesperson said the Mondeo is coming first, and it’s still a year away, so it could be another 18 months before this stylish replacement for Ford’s very popular MPV arrives in showrooms.

> Kia moves into new segments

> Jaguar SUV showcases lightweight platform

Kia is aiming to continue its upward trajectory, a plan which will include branching out into lucrative sectors such as the growing B-Segment crossover and assessing filling much-needed sectors such as an estate in the next Optima. For the short term, the all-new Soul will be repositioned to compete against key rivals the Juke, Yeti and Mokka, but the Niro concept hints at a design which could be echoed by a Europe-centric model destined for this segment.

While an SUV is an inevitable addition to Jaguar’s range, it’s what’s underneath the C-X17 concept that’s most interesting. This is a demonstration of the lightweight aluminium platform, which will underpin the brand’s forthcoming compact executive car, announced for 2015. Using the carmaker’s new four-cylinder petrol and diesel engines, this long-awaited replacement for the X-Type will target class-leading CO 2 emissions of less than 100g/km for its most efficient version.

¡

IFW November 2013

13

GOOD COMPANY. THE ALL-ELECTRIC BMW i3.

BMW i

Sheer Driving Pleasure

At BMW i, we know the corporate world is all about efficiency, so we’ll keep this short and simple. Why should fleet managers consider the all-new, all-electric BMW i3? First, with its highly dynamic and efficient BMW eDrive technology, it’s a perfect fit for innovationminded companies. Second, with its intelligent handling of resources throughout the value chain, it makes a strong sustainability statement. Third, with its connectivity features, it’s a functional workplace when required. Fourth, it can bring down the cost of ownership. And finally, as a genuine BMW, it’s going to put a smile on the faces of all of your colleagues.

And on yours. More: bmw-corporate-sales.com BMW i. BORN ELECTRIC.

BMW i3

bmw-i.com

0 g CO2 / km* 125 kW (170 hp)

* Zero-carbon operation, encompassing everything from power generation to use on the road, requires energy sourced entirely from renewable resources.

motor show review FRANKFURT SHOW

¡

> Lexus guns for the diesels

> Opel/Vauxhall puts emphasis on value

Carbon-based taxation has traditionally made Lexus’s hybrid models a tough sell in the fleet market, but the new IS changes that and the GS is now benefitting from its four-cylinder hybrid drivetrain. The GS 300h arrives soon, matching the E-Class hybrid’s 109g/km but with a potential tax saving for fleet users based on a matched specification. UK fleet buyers benefit from a new entry-level SE trim which will be pitched at attractive BiK costs for company car drivers.

Competitiveness was the key message on the Opel/Vauxhall stand. The refreshed Insignia arrives this month, with class-leading 99g/km CO 2 emissions for its core 2.0-litre diesel engines. Streamlined production in Detroit, meanwhile, has resulted in a price reduction of almost €8,000 for the Ampera extended-range electric vehicle, while the ADAM finally has the three-cylinder turbocharged petrol engines it needs, offering sprightly performance and sub-100g/km CO2 emissions.

> Volvo sheds cylinders Finally separating itself from the Ford parts bin, Volvo has developed a new line-up of turbocharged four-cylinder Drive-E engines and gearboxes which will be used across the range. Volvo will vary power outputs using turbocharging and assistance from electric motors.

The Concept Coupe, a modern interpretation of the P1800, combines a Drive-E petrol engine with an electric motor for V8-rivalling 400bhp output but with low fuel consumption and CO2 emissions.

> Volkswagen goes electric While Volkswagen sees hybrids as having a bigger sales footprint in the UK, the carmaker will launch an electric up! city car in November followed by the Golf in mid-2014, expecting a fleet-weighted sales split for the two cars. Both will be positioned at the top of their respective ranges, including EV-specific navigation with charging points shown, and the company is looking into partnerships with charging equipment companies to support them.

16

internationalfleetworld.com

¡

AlphaElectric Get the full potential from your eMobility.

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

Fleet Europe Forum, Prague, 21st November 2013 Meet us there and ask for your free kaleidoscope. You‘ll discover a new perspective on eMobility.

www.alphabet.com

motor show review FRANKFURT SHOW

Overheard... ¡

> Kia readies for European market > Tesla sets sights on UK fleet market Tesla Motors sees the UK as a top three market for its Model S electric saloon, with a fleet-heavy sales mix. Right hand drive versions will arrive next spring, with a new retail site to open in the South East of the UK during 2014.

The company is working with residual value guides and leasing companies: “It’s really a process of getting to know each other, of education. It’s critically important that those people who set or guide residual values are well informed and know what Tesla is about.”

Michael Cole, chief operating officer of Kia Motors Europe told FW: “We’re very much becoming a brand of demand pull, not supply push. Whereas five years ago we were building cars and going to market to find buyers, we are almost in a total switch of that now.

“We have a vision of where we want to be with leet, and now we’re working on the implementation strategy. We see that we’ve got 18 months or two years to get our structure in place, so that when the market gets stronger and we get increased capacity, we want to be in a position where we’re ready to realise that opportunity in the leet market.”

> SEAT sees Leon as key to fleet business Creating a “second strong business pillar,” will be SEAT’s strategy for the next two years, according to SEAT chairman, Jurgen Stackmann.

“We’re currently heavily reliant on Ibiza and Europe and we want to create a bigger balance for the brand with Leon, Ibiza and Europe. Europe will remain the main focus of our attention,” he said.

“The next big door-opener for us is our Sports Tourer (ST), especially opening the fleet market for the first time.

Many fleet customers do not really consider SEAT as a partner for them – fleets look for more functional cars and we can offer that now in a great shape, but this car is a fully functional estate.”

18

internationalfleetworld.com

> No 1.6-litre diesel Honda Accord Honda has no plans to equip the Accord with its new 1.6litre i-DTEC engine, with economies of scale meaning the Japanese-built saloon would struggle to compete with European brands. The engine will be available in the CR-V, Civic hatch and Tourer by January, and head of corporate sales Lee Wheeler sees these as an alternative leet line-up.

“Honda is not trying to be something it isn’t in fleet, which is a single badge policy, because we don’t have a product in every sector,” he said.

www.kia.com

Imagine a fleet with plenty of room for your business activities.

The Kia fleet range.

Excitement. Quality. Fleet-ability.

The contemporary, revitalised Kia fleet range offers enough variety to let each and every employee find the right model. If a combination of roominess, versatility and great looks is demanded, the spacious ceeâ&#x20AC;&#x2122;d Sportswagon, the flexible Carens and the stylish Sportage are the best examples within the Kia range. Add the fact that they all come with modern, common-sense technologies and our industry-leading 7-year warranty, and youâ&#x20AC;&#x2122;ll understand why Kia is a brand you will enjoy doing business with.

Meet a different kind of fleet: www.kia.com/eu/fleet. * The Kia 7-year/150,000 km new car warranty. Valid in all EU member states (plus Norway, Switzerland, Iceland and Gibraltar), subject to local terms and conditions. Fuel consumption (l/100km)/CO2 (g/km) for the vehicles shown are as follows: urban from 5.0/129 to 10.6/252; extra-urban from 3.8/98 to 6.8/161; combined from 4.2/109 to 8.2/195.

interview

BALANCED BRAND IS KEY Jurgen Stackmann succeeded James Muir as SEAT chairman in May 2013. He spoke to John Kendall at the recent Frankfurt Show.

I

ncoming SEAT chairman, Jurgen Stackmann (pictured right), has arguably landed at the Spanish VW Group division at the right time. The company is going through an extensive revision of the core of the range and importantly for IFW readers, sharpening up its fleet act.

It may be a European based company, but there is a realisation that just as Volkswagen and Audi have developed internationally, SEAT needs a wider market than Europe. SEAT has taken its first steps into the American market and Mr Stackmann says that feedback from the first customer group of journalists and experts has been very positive. “The cars have given the brand a lot of profile and a lot of credibility,” he says.

In Europe, SEAT grew 9.4% in the January to August period in a market that was down 6%. “We’re growing even faster outside Europe,” said Mr Stackmann. “The global volume is up 11.4% driven by overseas increases, mainly around the Mediterranean region. We have a fantastic momentum in Algeria.

It’s one of the markets that you probably only hear of from the French manufacturers, but it’s now our seventh biggest market globally and it’s followed by Turkey and Israel. So we already have three stand posts around the Mediterranean area, which is becoming an area of focus and strength for the SEAT brand.”

SEAT has been present in the Mexican market since the early 2000s. There are

20

internationalfleetworld.com

no plans to expand north into the US; American business will be centred on Mexico and possibly further south. Mr Stackmann says that the company continues to grow in Mexico, based around Ibiza sales; “It’s basically a brand built on Ibiza and we are focussing our energy in that region now on Leon as well, to create a second pillar for the brand.

“That actually describes well what our strategy is for this year and the next two years,” he continues. “We want to create a second strong business pillar for SEAT, called Leon. We are currently heavily relying on Ibiza and Europe and we want to build a better balance for the brand, with

Leon, Ibiza and Europe. Europe will remain the main focus of our attention.

So the work this year has been Leon five-door and SC, with good success and the next big door-opener for us is our Sports Tourer.

“It is especially opening the fleet market for the first time. Many fleet customers do not really consider SEAT as a partner for them. There are obviously some Ibiza sales, but many fleets look for more functional cars and we can offer that now, in a great shape. We think this car will open the door to many fleet customers in North-Western Europe. The big fleet markets are UK, Germany, Austria, Switzerland and Sweden. So this is the current emphasis of our work.

“We will have two more years of innovation around Leon. Obviously as a next step we are looking into the next generation Cupra. It will be the pinnacle of the performance wing of the SEAT brand. The core of the brand is perfectly described by the Leon five-door FR, which we think is the perfect expression of what SEAT is and what SEAT will be.

Basically it’s a car you can own for 10 years and feel great about it and the design should help to rejuvenate the driver, make them feel younger.

“We want to take that concept in any further vehicle development, so don’t go to the extremes, don’t compromise functionality because anything that should suggest we are niche or small or radical

The core of the brand is perfectly described by the Leon five-door FR, which we think is the perfect expression of what SEAT is and what SEAT will be.

Jurgen Stackmann, chairman, SEAT

will not lead to further growth of the brand, we’re really convinced of that.

Many people, probably because they are used to it, have expected a signal of radical change, of revolution and new direction and the big surprise is that’s definitely not coming from me. I see myself in the role of focussing on implementation and continuity and direction.

Great brands need continuity and they need continuity with the same idea executed well enough over long enough time periods. So news from SEAT should not be expected from directions of strategy. It should be expected from good implementation and a focus on that.”

As Mr Stackmann has said, the brand is

reliant on Europe and the European market is still quite weak, despite signs of stabilisation across the region. How much will Leon need to grow for the company?

"In many countries, we’re very small.

There is so much to be gained, rather than much to be lost,” he says. “In many countries we are not relevant to consumers because they think of us as being only Ibiza, or too sporty, or for their sons. Many customers don’t think about us being one of the relevant main stream challengers to any car they may consider. So I do think there is a lot of ground to be recovered.

“I think the strategy is to have an equal volume for Ibiza and Leon, at whatever maximum volume we can get up to. In the

current European environment, depending on the statistics, being at a 25-30 year low, obviously this will be quite a challenge. I think that we are all optimistic enough to say that one day Europe will recover to whatever strength. Our position is still to make sure that our starting position for that moment of recovery is the best possible, which is about share. We need to get our share up in what we call the A-segment. That’s the biggest challenge.”

If Mr Stackmann has targets for this market share, he wasn’t going to share them with us. “The easiest target to remember is if you have an equal volume weight of Ibiza family and Leon family you have a much better business.”

IFW November 2013

21

Hyundai ix35

Inspiration. Engineered.

A Hyundai is made of so much more than metal and car parts. A Hyundai is made of inspiration. It’s the spark we use to turn something everyday into something really special.

Designed to impress, engineered to enjoy.

Discover more at Hyundai.com/eu

Fuel consumption in MPG (l/100km) for new ix35: Urban 24.8 – 41.5 (11.4 – 6.8), Extra Urban 41.5 – 61.4 (6.8 – 4.6), Combined 33.2 – 52.3 (8.5 – 5.4), CO2 Emissions 197 – 141g/km.

risk management

Trained drivers = fewer accidents Senior managers need to be involved with driver training to improve effectiveness, as Steve Banner reports.

Road fatalities are comparatively rare in the Republic of Ireland yet some of the country's drivers appear to be determined to make the situation worse, if the results of a recent survey carried out by AA Motor Insurance are anything to go by.

Of the 16,300-plus motorists it polled no less than 71% said they witnessed other drivers driving too fast every day, while 32% admitted to speeding themselves. 35% of males quizzed admitted to driving at excessive speeds frequently compared with 30% of women.

In a separate survey, again involving over 16,000 motorists, almost 80% stated

24

internationalfleetworld.com

that at least once a day they witnessed somebody using a hand-held mobile phone while driving. Interestingly, however, less than 17% confessed to doing it themselves: perhaps uncomfortably aware that if they are caught by the Gardai (police) they face two penalty points on their licence and a fine of up to €90.

Speeding and allowing yourselves to be distracted by using a phone while at the wheel means that the risk you will have an accident - potentially a severe one - increases dramatically. “You’re four times more likely to crash if you’re on the phone,” points out AA director of

consumer affairs, Conor Faughnan.

Worryingly for Irish fleet managers, at least some of those drivers breaching the law are bound to be driving on business.

It is not of course a situation that is unique to Ireland, and it is one that fleets can address through training, incentives for improved performance, clear policy guidelines on what the company expects from its drivers and a variety of other measures.

However the lead must come from the top and too often it does not, contends Spencer McDonald. He is president of Surrey, British Columbia, Canada-

based fleet driver training company The Thinking Driver.

“Frequently we see lip service paid to driver safety with strong statements of corporate commitment by senior management but an absence of meaningful action,” he observes. “Senior executives are visibly absent from training courses and have a belief that they are somehow exempt from safety policies such as the inspection of vehicles (checking tyres, lights and so on) prior to any trip.

“By contrast, enlightened organisations implement driver safety programmes by ensuring that top managers attend courses and obtain any qualifications involved early on in the process,” McDonald continues. “These managers lead by example by not only committing to training but adhering to policies such as the prohibition of the use of cell phones while driving.

“Workers not only need to hear from management about safety,” he insists.

“They need to see management complying with the rules too.”

So what are those rules? Although they may be laid down in words of one syllable by a trainer, even the most diligent employees may find it difficult to remember everything that has been imparted to them after a few weeks have gone by.

The answer, says McDonald is to set them out clearly in a separate section of the company’s health and safety manual.

“And the consequences for non-compliance should be stated clearly,” he adds.

One of the best ways of improving the general standard of driving in a fleet is at the recruitment stage.

“Check the driving records of all prospective employees who will be driving for work purposes and screen out applicants who have poor driving records since they are the ones who are most likely to cause problems in the future,” he advises. “Furthermore, the individual’s driving record should be reviewed annu-

ally and action should be taken if that record deteriorates.” Such action could include remedial training.

“If a fleet driver does have a preventable accident then the incident should be reported and investigated, the root causes identified and an action plan should be drawn up to help prevent it from happening again,” McDonald says. If for example drivers have repeated low-speed reversing accidents in one of the company's own depots then it could be the case that the lay-out of the depot needs changing and the lighting needs improving.

Carrots are as important as sticks, with the best-performing drivers – those who can boast a zero-accident record over, say, 12 months – receiving recognition, possibly including cash bonuses.

One challenge fleets face, says McDonald is that many drivers, including those with clean driving records, have undergone no driver training whatsoever since they passed their driving test. That may have been many years ago and the test may not have been all that demanding.

David Bradley, president and chief executive officer of the Canadian Trucking Alliance, a trade association, says: “The joke in Ontario used to be that a guy could show up for his heavy truck test in a pick-up with a fifth wheel on it pulling a horse trailer.

“That loophole has been closed, but because testing is a provincial responsibility there are all sorts of other anomalies around the country.”

“To set a baseline for driver performance and to document competence in case of future problems, employees should be trained, evaluated and qualified on the vehicle type or types they will be assigned to in the environment that they will be operating in,” contends McDonald.

“Regular refresher training should be conducted with an on-road re-evaluation every two to three years.”

On-line training also has a role to play as Nestlé New Zealand has discovered. It has

Workers need to hear from management about safety, they need to see management complying with the rules too. worked with Auckland fleet risk management specialist SurePlan to develop a risk management strategy that has delivered a 38% fall in the number of incidents experienced by participating drivers.

It was launched with a series of classroom-based driver education workshops that were followed up by an e-learning driver training programme.

“It has a far greater focus on driver behaviour than the traditional style of driver training does, which often has a greater focus on the driver’s skill," says SurePlan. “Statistics show that the majority of fleet crashes are due to poor time management, a lapse in concentration, distraction or an error of judgement.

“Once Nestlé had decided on the tools to be used to educate drivers it was then a matter of ensuring that the results of the programme could be measured across the business units and at an individual level,” it adds.

“With a combination of the fleet risk management reporting that SurePlan provides and individual user access to the Driving Safer programme, it meant that Nestlé could measure and track the success and see who had and who hadn’t completed the training. It could then apply some management pressure or incentives to

IFW November 2013

25

¡

risk management

trained drivers = fewer accidents ¡

increase driver participation as required.”

Russell White, managing director of fleet safety and risk management business, Driver Safety of Yatala, Queensland, Australia would like to see greater use of driving simulators as a training aid.

“They are the safest and most effective way to combat risky behaviour, improve driver proficiency and better equip drivers with the skills necessary to create safer roads,” he contends.

Even older drivers could find their use beneficial. “Recent research has shown that drivers aged from 40 to 59 demonstrate less of an understanding of basic road rules than their less-experienced counterparts aged from 18 to 24 despite their additional years behind the wheel,” White observes.

18 to 24-year olds are however more inclined to talk on the phone or text while driving according to the same figures. On the other hand 40 to 59-year olds are more likely to drink and drive.

The value of some sort of simulator has also been acknowledged by AGENEAL of Portugal. Based in Almada, just outside Lisbon, the capital, it is a not-for-profit organisation that aims to increase energy efficiency and encourage the use of renewable energy.

Members include waste management, gas and water fleets along with the Faculty of Science and Technology at the New University of Lisbon.

AGENEAL’s activities include training fleet drivers to drive more economically. It is not however using a full-blown driving simulator, but an on-screen eco-driving game combined with the steering wheel and pedals used in video car race games.

It is inexpensive, and it works, AGENEAL reports. That is especially the case when the groups being trained are small.

26

internationalfleetworld.com

“There is time for them to compete for the honour of being the best eco-driver,” the company says. “That means not the one who goes faster, as is the case with most video games, but the one who consumes and emits less.”

Onboard devices that show green, amber or red lights depending on whether the driver is driving sensibly or speeding, accelerating too harshly and taking bends too quickly are being deployed worldwide and are helping to drive down fuel usage and accident levels.

Simply using GPS technology that automatically records the speed at which a vehicle is travelling in real-time combined with the awareness of the driver that his on-the-road behaviour is being constantly monitored can have an impact too.

That is the approach increasingly being taken by European bus and coach operator National Express and it is paying off. Working with Divas Technology the company has been able to achieve a 2.2mpg average improvement in fuel consumption across its Spanish coach fleet: worth having, given how much fuel coaches consume.

The initiative has included driver training with the emphasis on fuel economy.

A perhaps-more-old-fashioned, but nonetheless effective, approach to

encouraging drivers to slow down, burn less fuel, and reduce the risk of accidents is being taken by South African tanker fleet, Haulcon. Working with a number of parties, including insurer Santam and driver trainer Shayela Approved, it has combined a driver training programme with something called Driver Check.

Its trucks display a Driver Check sticker with a 24-hour call centre number that motorists can ring – hopefully using a hands-free kit – if they spot Haulcon drivers driving erratically.

“Driver Check’s call centre has the email addresses of our managers and the details of all calls are automatically sent to them,” says Haulcon chief operating officer, Izak Dreyer. “This means that we can give our drivers feedback at the end of every shift.

“The incidents that have been recorded have been both positive and negative,” he adds. “It is good to know that people definitely do phone in to say ‘thank-you’ for good driver behaviour as well.”

Anything that addresses South Africa’s appalling road safety record has to be applauded. Santam points out that over 14,000 people are killed on the country's roads annually and that approximately 85% of fatalities can be blamed on human error.

The South African Department of Transport states that human factors contributing to accidents include drunken driving, excessive speed, not using safety belts, non-adherence to traffic rules, reckless driving such as overtaking when it is not safe to do so, aggressive and inconsiderate driving and drivers becoming distracted by the use of hand-held cell phones.

A grim list that requires tougher enforcement and a wholesale change in the attitudes of road users to whittle it down: and better training undoubtedly has a role to play too.

5 GOOD REASONS

TO TRUST ARVAL Over

4,000 people totally committed to customer satisfaction

With Arval’s eco-driving training, road related risk prevention programmes & road safety training, up to 20%(1) fuel cost savings and up to 30%(2) reduction in accident frequency, respectively

A presence in

39

countries through our subsidiaries and the PHH Arval Global Alliance partners

Innovative, interactive services for a new relationship with fleet managers and drivers

The Arval International Business Office, with its multicultural team, services international corporates with global demands (1) Amount identified by Arval, per car per year (2) Amount identified by Arval, in 3 years

Founded in 1989 and a subsidiary of BNP Paribas, Arval specialises in full service vehicle leasing. Arval offers its customers – professionals, SMEs and large international corporates – tailored solutions that optimise their employee’s mobility and outsource the risks associated with fleet management. Expert advice and service quality, which are the foundations of Arval’s customer promise, are delivered in 25 countries by over 4,000 employees, and in 14 other countries through a network of partners. Our staff are dedicated to the complete satisfaction of our customers so that you can focus on the essential: your business.

Discover more about Arval on www.arval.com or call us on +33 (0)1 57 69 50 00

arval.com

technology

Have no car, will travel Car buying is not cool for young Japanese, but car sharing could be the way ahead, reckons Peter Nunn.

F

rom small beginnings, the world of car sharing is starting to take off in Japan. Car sharing has struck a chord not just because it’s a new and appealing, low cost solution to getting around. Whisper it: car sharing can actually make a great deal of sense.

In a major city like Tokyo where the cost of car ownership is high and driving can be a hassle, a car sharing scheme has two big things going for it: cost and convenience.

In Tokyo, in the irst instance, to own a car means that you must be able to prove you have somewhere to park it. This means you need a registered off-street parking space and typically that can set you back €175 – €400 a month in rent, or more.

Factor in too all the taxes and running costs involved in running a car, not forgetting the shaken (Japan’s notoriously expensive MoT), plus the outlay in getting the car on the road in the first place, of course, and you’re looking at a pretty sizeable overall bill.

To sidestep all that but also have regular use of a car, as you need it, is the buzz behind car sharing and in a highly urbanized environment like Tokyo, Yokohama or Osaka (where public transport is so good you actually quite often don’t need a car), it’s maybe no surprise to find that subscription numbers are fast on the rise.

One survey released in January this year claimed there was a 70% increase in membership versus 2012 to nearly 290,000.

Car sharing is something that’s unquestionably gathered pace post Lehman crisis as signi icant numbers of Japanese have given up their cars (or in the case of young Japanese, pretty much given up the whole idea of car ownership altogether).

For these young Generation Y Japanese, car ownership is seen as something desperately

28

internationalfleetworld.com

‘uncool,’ passé and bad for the environment.

They are far more interested in computers, the Internet and mobile phones.

Other Japanese are giving up on their cars because they want to button down and save money, a complete reversal of the go-go 1980s and early 1990s when a car was seen as a status symbol in Japan, the Japanese economy was on ire and conspicuous consumption was absolutely the way to go.

But times change and today, car sharing is seen as a ‘smart’ and responsible, ecobased way to keep mobile by car, at least in Japan’s major cities.

For Japan’s car makers, this is all shaping up as a pretty eerie, not to say sinister development. By the same token if it takes certain numbers of cars off the road, thereby reducing congestion and pollution, then some will see that as a highly positive development.

Japan’s car sharing market is currently dominated by two major companies, Times 24 and Orix, but competition is fierce and car sharing operators are expanding aggressively. Car manufacturNissan announced Japan’s first ever car sharing programme with ultra-compact EVs.

ers themselves, both domestic and import, are also getting in on the act.

Nissan for instance announced Japan’s first ever car sharing programme with ultra-compact EVs this September. In conjunction with the city of Yokohama, Nissan will offer up to 100 versions of the Renault Twizy – which in Japan gets to be renamed, rather tortuously, as the ‘Nissan New Mobility CONCEPT ultra-compact electric vehicle’.

Billed as the first of its kind in Japan, this new pilot service is called Choimobi Yokohama and is set to last for a year. It’s intended as a one-way car sharing service enabling these tiny EVs to be rented from and returned to any of the 45 car pick up/return stations in the downtown core of Yokohama – Japan’s second largest city.

The snag is you have to undergo a ‘safe driving course’ before you can get on the road. Other terms and conditions apply while usage charges work out at ¥20 a minute (or €9.20 an hour).

Among the importers, BMW and MINI have actively been targeting car sharing.

The companies have been collaborating with Times24, the largest car sharing provider, to offer free car sharing with 12 models between July 10 to September 30 this year from Times24’s flagship Yurakucho store in Tokyo. The BMW group sees it as a promotion: intending to give potential car buyers a convenient and economical way of experiencing new BMWs and MINIs. Close by, Mercedes-Benz Japan signed an agreement with Orix – the second largest car sharing provider – in June.

SMARTs, either petrol or electric versions, can be ‘shared’ at 20% below the regular price at ¥150 per 15 minutes (or €4.60 an hour). This aggressive pricing was made possible by MBJ supplying the cars at special bargain prices. Their intent

is similar to that of BMW Japan, i.e. wooing prospective new buyers.

Likewise, Volkswagen Japan uses a captive company to run its own car sharing pilot program with two Beetle models starting August.

Back with BMW, the BMW Group has been supplying cars for Times24 since July 2010 and the fleet is now comprised of 201 BMWs and MINIs. In July 2012, three BMW ActiveE electric vehicles were supplied as a pilot for EV car sharing. Outside the manufacturer schemes, anyone can sign up for car sharing, of course.

On the Times24 site, it explains how, first, there is a ¥1500 (€11.50) fee to join and get your membership card. Thereafter,

there’s a ¥1000 (€7.70) monthly fee either for individual or family (which includes ¥1000 of driving use). For students or companies, there’s no monthly charge.

Of the cars available, there’s an array of ‘basic’ cars such as the Mazda Demio (Mazda2), Honda Fit (Jazz), Nissan March (Micra) and so on, available for ¥200 yen (€1.55) for 15 minutes.

‘Premium’ cars (BMW 116i or MINI, for instance) are up for ¥400 (or €3.10) for the same 15 minutes.

So car sharing is not going to break the bank and according to Car Sharing Japan – another car sharing provider – 13% of car sharing users said they are now considering buying their own car.

That must come as heartening news for the domestic car industry as car sales have been in decline for some years now in Japan, having peaked at 7.7 million units back in the rip-roaring days of 1990.

Last year, the market came in at 5.4 million units, on the back of another round of eco-incentives, but every time these are phased out, so the market also drops off.

Car sharing then is definitely on the move in Japan. The cost of ownership as well as lack of parking spaces is making cars an unattractive proposition in the big cities. So for cost-conscious consumers, the schemes have obvious appeal.

On the other hand, Japan still has a strong, top end luxury market where cost, almost, doesn’t matter. Over the first six months of 2013, pure car imports grew 12.8% in an overall market that was down 8% to 2.7 million units.

So the new buzz in Tokyo could be to ‘car share’ that new BMW or Mercedes. You get the pleasure of ‘ownership’ but without all the costs that usually go with it. Clever…

CAR SHARE SMARTs, either petrol or electric versions, can be ‘shared’ at 20% below the regular price at ¥150 per 15 minutes.

IFW November 2013

29

interview

SEEKING STRATEGIC GROWTH Volvo’s Alain Visser sees the fleet sector as the biggest potential segment for growth for the company, reports John Kendall.

A

lain Visser joined Volvo Cars as vice president sales operations within Marketing, Sales and Customer Service in September 2012 after working at both Ford and General Motors. He took over as senior vice president marketing, sales and customer service in July 2013.

We caught up with him at the recent Frankfurt Show: “The interesting thing about our fleet business is that it’s very different by market. As you know, it’s a very high percentage in the UK market. For us it goes from 80% of the business in markets like Belgium to about 10% of the business in markets like China. So we see some markets where the fleet business is very mature, as in the UK and in some markets where it is only starting to pick up, like in China, which is probably the most extreme example.”

It’s clear too that Volvo is serious about fleet business: “We believe that the biggest growth potential overall from a Volvo point of view is in the fleet segment,” continues Mr Visser. He believes there are two reasons for this, “One is the growth in the new emerging markets where the fleet business is still very small. Secondly because we see the fleet part of the business growing as more and more companies offer company cars as an alternative remuneration system. So we see the fleet market growing and we see the new emerging markets with enormous potential for the fleet market to grow and evolve.”

The potential for the automotive sector as a whole is enormous in markets like China, so would he expect to see some delay before the fleet sector really starts to expand?

“Absolutely. That’s a trend we have seen everywhere in the world in emerging markets and I would be very surprised if it’s any different in China. I think we will see increasing growth in China, particularly driven by private business and then I think the fleet business will pick up as well, but it always comes later,” says Mr Visser.

While the car market in China continues to grow, Europe is only now starting to show signs of a fragile recovery. “We monitor the

30

internationalfleetworld.com

European situation very closely, on a monthby-month basis and you could say that in fact from the major countries, the UK is the only market that has been pretty stable and sometimes even with slight growth, depending on which numbers you look at, together with maybe Belgium that has also been relatively stable. For the rest, all markets are down and it goes from the typical southern European countries – France, Italy, Spain, Greece that are a catastrophe. Amazingly enough Spain, I think, as the most radical example, since May 2008 it hasn’t stopped declining, it’s just unbelievable.

“Then the new player on the block, in a negative way, the Netherlands, which is collapsing in a dramatic way. Fortunately enough, the Netherlands happens to be the market where we are now doing extremely well because of our CO2 values – hybrid, plug-in, so we are growing our volume in a massively declining market in the Netherlands.

“I would say on average, we see a decline of 5-6% in Europe, year-to-date. But for the last two months, we have seen that it’s stabilising, so we think we have hit the bottom, but I don’t want to be too optimistic. It looks like there are signs of stability and maybe slight growth, so probably more stability overall, but again, very different. I think it’s a compliment for the UK economy that the UK market has one of the biggest markets in Europe and has been the strongest in terms of year over year trends.”

There has also been some growth in the Baltic states, formerly part of the Soviet Union and in Russia itself. How important is this region to Volvo?

“Russia has a very high priority, not just for Volvo but the whole car industry,” says Mr Visser. “Russia is running at a pace of around 2.5 million cars annually. I think it was in 2008 or 2009 when I was sitting in a forecast meeting for the Russian industry for 2009 and we were forecasting it to be at 3.7 million and I think it ended up being 1.7 million instead, so that’s how volatile this business is.

“I still believe the Russian industry,

whether you count it as Europe or not and we do, is a 4 million car per year industry. It is so unbelievably volatile – I don’t think I’m mistaken in saying that for that size of market it is probably the most volatile market in the world. Oil price drives the car demand price. It will grow, the question is when will it settle down in terms of economic and oil price stability, which nobody can forecast. We would be very wealthy people if we could.”

Elsewhere, the Brazilian market is not as buoyant as it was earlier in the year. “It’s probably OK but when the market is up, the increase is falling,” says Mr Visser. The other BRIC market is India and here, Mr Visser also thinks that the market is a difficult one.

“For us it’s still a very small market,” he says, “It’s a very difficult market to penetrate because of its size. You almost have to focus on particular urban areas and really build the business there. I think it is probably one of the most difficult. It’s very difficult to predict volume growth. In terms of total industry it’s still very low, a very small market but with huge potential for growth, if you just look at the size of the population and the number of cars sold.”

V40 has helped to boost Volvo’s fleet presence and Mr Visser thinks that fleet is one of the areas where Volvo has the most growth potential. “We are well organised from a fleet point of view but we want to be very specific in where we grow. For example, we don’t necessarily want to grow in daily rental, because it doesn’t fit that well with the brand and second it’s not a profitable market. We don’t want to play the game to go for volume and then go in and out of it. It’s a good tool to get people to experience our products, but only if you use it in a proper way.

“We want to grow our small fleet business considerably. We see Volvo as a good brand for some partners. We have recently signed a deal with Nike – a brand we like to be associated with. We’re looking at Ikea in Sweden too. We’re not just going for volume but looking at the strategic partnership opportunities.”

We are well organised from a fleet point of view, but want to be very specific where we grow.

IFW November 2013

31

fleet focus AUSTRIA

E BIGGEST-SELL VOLKSWAGEN

AUSTRIA WEATHERS THE STORMS

R

GOLF

SELLER SECOND BEST EN POLO VOLKSWAG

The European recession passed the Austrian car market by, but a number of factors are cooling demand, as John Kendall discovers.

POPULAR SUVS The BMW X1 is a popular choice in the Alpine regions of Austria

32

internationalfleetworld.com

2012 registrations are the second highest ever recorded in Austria, second only to the 2011 total. But that is not to say that the market has been completely unaffected.

Austria is one of the smaller European countries, a member of the European Union, with a population of around 8.5m.

The country is bordered by the Czech Republic and Germany to the north, Slovenia and Italy to the south, Switzerland and Liechtenstein to the west and Hungary and Slovakia to the east. Historically, the country has had a strong German connection. The name Austria is derived from the Germanic Österreich (eastern kingdom) and German is the majority language of the country.

Landlocked Austria is situated in the heart of the Alps and it’s not surprising that road transport is vital for the country. According to ACEA data from 2010, Austria had the sixth highest car density in the European Union at 528 cars per 1,000 inhabitants. Like the rest of Europe, the Austrian car market has been affected by the European financial crisis, but the effects have been fairly minimal.

Car registrations rose through the early years of the crisis, reaching the highest recorded figure for Austria in 2011 and it

was only in 2012 that the market declined, although the decline looks set to continue in 2013. Provisional data from ACEA for the first nine months of 2013 shows that passenger car registrations in Austria are down -7.0% compared with the same period in 2012 at 266,890. If that average were maintained for the rest of the year, total passenger car registrations for Austria in 2013 would reach around 312,500.

In 2013, the business car market has accounted for around 50% of total car registrations. Berthold Spitzbart, JATO country sales manager for Austria and Switzerland, reckons the business car market is worth around 180,000 registrations a year, while Stephan Klier, managing director of Alphabet in Austria, reckons that the business car market accounted for around 171,000 cars in 2012. Martin Koessler, the regional director for ALD Automotive in Austria, reckons that in the first six months of 2013, business cars accounted for 92,561 registrations representing some 49% of the total car market.

Since Austria is a Germanic nation, it’s not surprising that AUSTRIAN PASSENGER CAR German car manufacturers feaREGISTRATIONS 2007-2012 ture strongly in the sales charts. Volkswagen appears to be an Austrian favourite, both Year Registrations % change as a brand and as a group.

According to Martin Koessler at 2007 298,182 -3.4% ALD, the top eight brands in the first six months of 2013 were 2008 293,697 -1.5% Volkswagen, Skoda, Hyundai, Audi, Opel, Ford, Renault and SEAT. “If you summarise the 2009 319,403 +8.8% Volkswagen Group,” he says, “You get a market share of 2010 328,563 +2.9% roughly 36%, which is I think amongst the biggest world2011 356,145 +8.4% wide. If you look at the number of models sold, the unbeaten number one is the Volkswagen 2012 336,010 -5.7% Golf. If you listed the Golf as a

separate manufacturer, it would be ranked ahead of Renault in the market.”

ALD’s top five best sellers continue with the VW Polo at number two, then the Volkswagen Tiguan, Renault Megane and Skoda Octavia.

Berthold Spitzbart at JATO also gives the VW Group a market share greater than 30% with Opel and Ford as second and third best sellers. Alphabet lists Volkswagen, Ford, Opel, Renault, Skoda, BMW and Audi.

Austria is not only mountainous but its Alpine setting also brings heavy snowfalls in the winter months, with drivers using winter tyres for six months of the year.

When it comes to vehicles favoured for business use, it’s not surprising that SUVs feature in the list, alongside MPVs, saloons and estate cars in the mid-size segment, reckons Alphabet. Popular SUVs include the BMW X1, X3, Audi Q3 and Q5. “That is very much replacing saloons such as the Audi A6, BMW 5-series,” says Martin Koessler.

“People have been replacing station wagons with SUVs.” Low CO2 emissions from the latest generation SUVs means that many fleet drivers are able to replace saloons and estate cars with an SUV. “It’s all about CO 2 emissions at the moment,” says Martin Koessler at ALD, “The average CO2 emissions have dropped significantly in recent years.” The average across the Austrian new car parc is some 134g/km. Not surprisingly it’s German manufacturers who dominate in the business car sector too. “That has a lot to do with the reputation, good residuals and the professionalism of the aftersales network,” says Martin Koessler. He also identifies BMW as becoming a more competitive fleet player.

As we have seen from ACEA-sourced Austrian registration data, the Austrian car market was not directly affected by the 2008 financial crisis and the market has only gone into decline since 2012.

Even so, 2012 registrations are the second IFW November 2013

33

¡

fleet focus AUSTRIA

Austria weathers the storms... ¡

highest ever recorded in Austria, second only to the 2011 total. But that is not to say that the market has been completely unaffected. “Cost awareness has been further strengthened. To some extent, a switch to the next lowest car class or even a general overhaul of the car policy has resulted,” comments Stephan Klier at Alphabet. “In 2008 and 2009, Austria was against the trend,” says Martin Koessler at ALD, “In 2008 and 2009, there was probably more retail business, but after the first shock waves from 2009 to 2012, the market was definitely driven by a high number of fleet orders.

“In Austria and Germany people are traditionally concerned about losing their money through inflation,” he continues, “That was the shock after both World Wars, so was in the mind set of those generations. So one of the impacts from the financial crisis was that people took their savings and spent it on cars. That was probably in the private consumer market.

People said to themselves that they were not earning interest from the banks, “So I’ll buy a car.” There were some incentives,

The Volkswagen Tiguan came third in ALD’s top five best-sellers list.

34

internationalfleetworld.com

but they were only for one year, so you can’t attribute the market performance to incentive schemes.

“Austria and Germany have not really suffered that much in the financial crisis.

People have become a bit more cautious now and this is currently affecting the markets, so people tend to extend their contracts and wait a bit before ordering a car in the fleet segment. In the first six months of the year in the full service leasing and contract hire sector, the market is down by -13.5% compared with the first six months of 2012.” By contrast the total number of new car registrations fell by around 8% over the same period.

At the time of our interview, Austria was approaching elections, with talk of new taxes on CO2 emissions to higher rates of VAT, as well as modest GDP growth, which all results in increased caution in the market. “We’re not falling back, like in southern Europe,” says Martin Koessler. “2013 is probably going to be the third or fourth best-selling year in our history.”

“Despite a stabilisation of the total economy over the past year, we noticed

increased price awareness from our customers,” comments Stephan Klier, of Alphabet, “It is essential therefore to continue to respond with intelligent full-service offers and close customer proximity.

Particularly in fleets with many different car makes and models, we still see lots of potential for us. In future, Alphabet will focus heavily on these fleet types. In doing so, we can rely on our market presence in Salzburg and Vienna and our multi-make, comprehensive product and service offer.”

In the light CV sector, the market is running at around 10% of the size of the Austrian car market. JATO estimates this at around 35,000 vehicles a year, with small and medium vans as the best sellers.

Alphabet also estimates the market at around 34,000 light CVs. “We don’t target too many commercial vehicle fleets because they are typically in a financial leasing or purchase scheme,” says Martin Koessler at ALD, “They tend to use the vehicles for longer than we want to operate them.”

Business vehicles are not taxed differently from private cars, but they are

exempt from Austria’s Nova (Normverbrauchsabgabe) one-off tax for passenger cars. Cars are taxed according to their CO2 emissions and there are concessions for cars using alternative fuels and for hybrids.

Leasing is the preferred method of acquiring business vehicles. Martin Koessler at ALD reckons around 29% of business cars are acquired this way.

Berthold Spitzbart at JATO is more specific, “Financial leasing is dominant for tax reasons. More than half of all business vehicles are financed this way.”

Both Koessler and Spitzbart are agreed on the dominance of finance leasing: “There is not much appetite for transferring risk in many segments, so even in the private sector, people still prefer to have a financial lease.

“Operational leasing is more interesting for corporates. Contract hire and leasing is well accepted amongst the multi-nationals and international companies and still not widely accepted in small and medium size businesses.”

Finance leasing accounted for 72,394 vehicles in the first six months of 2013, according to ALD data, a 0.2% increase on the same period in 2012. By contrast 10,990 cars were supplied on full service leasing in the same period, down from 12,709 in the same period of 2012.

Although banks are still the source for some financing, there is a trend towards manufacturer-funded schemes, with leasing companies offering full service leasing to mainly corporate clients.

The future for the Austrian market appears to be one of low or no growth over the next few years. Martin Koessler at ALD expects to see a market of around 320,000 cars for the future. He also detects a change, a trend where cars are less welcome in big cities, which means they are less attractive to younger drivers who would almost certainly have owned a car in the past, “First of all it’s quite costly. Now there are new schemes coming up in the mar-

ket like Car2go, which is a big success here, where people can easily live without a car but still have the freedom to choose a car at any given time.

“Our company car market is a solid one. We get cars back with an average mileage of around 130,000km after three to three-and-a-half years, which means these cars are driven and they are needed.”

Stephan Klier at Alphabet sees similar developments, “Fleet management will continue to develop into comprehensive Business Mobility management. It’s no longer just about making company cars available to employees.

On the one hand, this means all-around service for the driver, from insurance and tyres to fuel cards and accident management. On the other hand, it’s more and more important to think about what additional services are necessary so that employees stay mobile and flexible. Corporate Car Sharing is an interesting keyword in this respect. But also transnational fleet management will continue to play a growing role.

Furthermore, eMobility has the potential to become a relevant component of the mobility mix in companies.

“An additional trend that we have been observing for some time is ‘saving without compromising on service.’ This takes in the use of more efficient models that offer the same service and the same driving fun but with less energy consumption. We support the efforts of our customers to have an environmentally friendly vehicle fleet through intensive consultation, and also through combined safety and fuel-efficient driver training.

In this way, we are also responding to the demand for an optimised analysis of the Total Cost of Ownership, which is a big priority in the fleet industry. Sustainability and efficiency are the topics of the day. Against this background, fleet management will, in general, continue to develop into comprehensive Business Mobility management.”

REMARKETING At the remarketing end of the spectrum, Kia Austria is the latest OEM to use Autorola’s Branded Sites online platform to manage its remarketing activities.

Ex-press fleet cars, management cars and company cars are being loaded onto the site for its franchised dealers to log onto and buy online. In the first year Kia anticipates selling a few hundred vehicles online to its dealer network.

Kia Austria has been following its strategy of further upgrading its remarketing activities and has combined the launch of Branded Sites with installing Autorola’s Fleet Monitor, the workflow management tool that supports fleet-owners in their defleet and remarketing processes.

Kia is installing all newly registered cars being used by the OEM onto its system and will be tracking the car from the time it is shipped into its Vienna import centre, through to PDI and to when it is being defleeted and sold. Its service partner also has a login to the system thus ensuring transparency to everybody when vehicles are added onto the system about mileages, servicing, etc.

Previously Kia Austria used Excel spread sheets to manage its OEM fleet so Fleet Monitor should help improve fleet and remarketing efficiencies. ”The Kia brand is growing in Austria and it is upgrading its remarketing and life cycle management systems to cope with this growth,” explained Autorola’s Austria country manager, Rene Buzek. ”Branded Sites is helping Kia to establish a corporate online remarketing platform which has a consistent brand look and feel for its dealers to buy from. ”With Fleet Monitor, photos of each car are being loaded onto the system at the time of the PDI and the system integrates with Kia’s SAP accounting system. All of this will ensure Kia Austria can track the entire life cycle of a vehicle,” he added.

IFW November 2013

35

fleet strategy

Big shifts, but signs of stability Twelve month servicing, maintenance and repair budgets see big movement across Europe, says Experteye.

Servicing, maintenance and repair (SMR) budgets built into contract hire rentals have seen dramatic shifts across Europe in the last 12 months. At one extreme Portuguese leasing companies have increased their costs by +7.4%, while budgets have fallen by -8.2% in Spain.

The figures from the Experteye European Leasing index show SMR budgets rising by +7.3% in France since October 2012, remaining relatively static in the UK (+0.4%), but falling by -1.4% in Germany and -5.8% in Italy.

In the recent quarter, the picture is more even, yet Italy has shown a -4% fall in its SMR budgets and Portugal -2.9%. Other nations, however, remain relatively stable with Germany reporting a -1.3% shift, Spain -0.8%, the UK -0.4% and France +0.7%.

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

Differences in economic optimism are also relect ed in forecasted residual values throughout the year. The UK remains the most upbeat with a +4.4% improvement in its RVs, with Portugal showing greatest pessimism with a -9.8% fall in future re-sale values. But as with SMR budgets, RV forecasts have stabilised in the latest quarter with far less variation in the reported igures.

Market summaries – 3 and 12 months to September 2013

FRANCE: SMR budgets have shot up in France during the last 12 months, with a +7.3% increase (the second highest of all nations surveyed). This has steadied in the last quarter, with a +0.7% increase, yet still places France as the only nation to have reported a rise in its SMR costs since July 2013. French forecasted residual values have remained fairly static for both year and quarter, with a -0.6% fall since October 2012 and a -0.3% reduction in the last three months.

The impact on rental rates has been negligible, with only a small +0.3% increase for the year and no change (0%) for the quarter.

GERMANY: In the last quarter, German forecasted residual values

have improved by +1.2%. Whilst not dramatic, this is the largest increase of all nations surveyed following a year that saw a small -0.5% reduction. SMR budgets have seen little change (-1.4% for the year and -1.3% for the quarter), but after a year in which rental rates went down by -1.6% they have climbed by a very slight +0.3% in the last three months.

ITALY: SMR budgets fell by -4% in the last quarter, after a -5.8% reduction for the year. This is the largest quarterly reduction in SMR costs of all nations surveyed. Forecasted residual values have also been falling, albeit only by -0.9% over the last three months after a -0.8% annual decline. Rental rates remained relatively unaffected, with a -0.5% fall during the last quarter and just -0.1% for the year.

PORTUGAL: Portuguese leasing companies have reported the most dramatic shifts in the pricing elements that make up their contract hire rentals. Since October 2012, RV forecasts have fallen by -9.8% with a -3% decline in the last quarter. SMR budgets have risen by +7.4% for the year, but have come down by -2.9% since July 2013. After a year that saw Portuguese fleet operators enjoy a -4.6% reduction in their rental rates, these have gone up by a very slight +0.1% in the last three months.

SPAIN: Spain has reported the biggest fall in its SMR budgets, with a -8.2% reduction over the last 12 months. In the latest quarter they have fallen by a far less dramatic -0.8%. Forecasted residual values came down by -2.3% for the year, and by -0.7% for the quarter.

Rental rates, however, have been reasonably stable with a -0.6% reduction since October 2012 and a -0.1% fall since July 2013.

UK: With a +4.4% increase in forecasted residual values, the UK has shown most confidence in the future used vehicle market over the past year. This has steadied in the last quarter with a slight -0.2% fall in RVs. SMR budgets have remained quite stable with a +0.4% annual increase and a -0.4% quarterly reduction.

After a year that saw rental rates go up by +3.8%, they remain virtually unchanged for the quarter with a -0.1% fall.

CHANGES IN RV FORECASTS, SMR COST FORECASTS AND LEASE RENTALS Forecast Residual Values France Germany Italy Portugal Spain UK

Current Rental Rates

3-month change 12-month change 3-month change 12-month change 3-month change 12-month change -0.3% -0.6% +0.7% +7.3% +0.0% +0.3% +1.2% -0.5% -1.3% -1.4% +0.3% -1.6% -0.9% -0.8% -4.0% -5.8% -0.5% -0.1% -3.0% -9.8% -2.9% +7.4% +0.1% -4.6% -0.7% -2.3% -0.8% -8.2% -0.1% -0.6% -0.2% +4.4% -0.4% +0.4% -0.1% +3.8%

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

• Twelve-month comparisons show change since October 2012.

• Three-month comparisons show change since July 2013.

36

Forecast Service, Maintenance and Repair Costs

internationalfleetworld.com

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

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

2013/14 fleet calendar

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

November 2-10 Athens International Motor Show, Greece (PC, LCV) www.seaa.gr 5-9 Dubai International Motor Show, Dubai World Trade Centre, Dubai, UAE (PC) www.dubaimotorshow.com 15-17 COMVEX Istanbul Commercial Vehicles, Buses and Components Expo, Turkey (LCV, CV) www.comvexistanbul.com 22-1 December Los Angeles Auto Show, USA (PC) www.laautoshow.com 23-1 December 43rd Tokyo Motor Show, Japan (PC, LCV, CV) www.tokyo-motorshow.com 27-2 December Riyadh International Motor Show, Riyadh Exhibition Center, Murooj Area, Olaya St, Riyadh Saudi Arabia (PC), www.riyadh-motorshow.com January 2014 15-26 North American International Auto Show (NAIAS), Detroit USA (PC) www.naias.com 16-26 Brussels Auto Salon, Brussels Expo, Belgium (PC) www.salonauto.be 17-19 Memphis International Motor Show, Memphis Cook Convention Center, Tennessee, USA (PC, LCV, CV) www.motortrendautoshows.com/memphis February 8-17 Chicago Auto Show (provisional), Chicago, USA (PC, LCV) www.chicagoautoshow.com 14-23 Canadian International Auto Show, Toronto, Canada, (PC) www.autoshow.ca March 6-16 Geneva International Motor Show, Switzerland (PC) www.salon-auto.com April 8-11 NAFA Institute and Expo, Minneapolis Convention Center, Minneapolis, USA (PC, LCV, CV) www.nafa.org/conference 18-27 New York International Auto Show, New York, USA (PC) www.autoshowny.com 21-29 Beijing Auto Show, Beijing China International Exhibition Center Exhibition Hall, Beijing, China (PC, CV) www.chinaexhibition.com 29-1 May CV Show, National Exhibition Centre, Birmingham, UK (LCV, CV) www.cvshow.com September 25-2 October IAA Commercial Vehicle Show, Hanover, Germany (LCV, CV) www.iaa.de October 4-19 Paris Motor Show, Paris, France (PC) www.mondial-automobile.com KEY: PC – passenger cars // LCV – light commercial vehicles // CV – commercial vehicles

IFW November 2013

37

fleet profile HYUNDAI

Hyundai drives forward A local production strategy, particularly in the BRIC countries, is helping to fuel Hyundai’s continued growth, as Mark Bursa reports.

H

yundai may have played second iddle to its stable mate Kia in the spectacular growth stakes, but the Korean automaker has nevertheless been a strong performer, building up a major global presence as a manufacturer. And as the more conservative brand of the two, it’s becoming a strong leet player as well.

There’s no question now that HyundaiKia’s combined sales are very much in the big league. According to research irm LMC

38

internationalfleetworld.com

Automotive, combined Hyundai-Kia sales of 3.683m vehicles in the irst half of 2013 gave the group a global market share of 8.8%, the same level as in the full year of 2012. The group sold 7.12m cars worldwide in 2012, up 8.0% from 2011.

Growth has been steady during the recession – in 2009, the two Korean brands had a combined market share of 7.8%, rising to 8.1% in 2010 and 8.6% in 2011. By comparison, Toyota sales in the irst half of 2013 hit

4.91m, followed by General Motors (4.85m) and Volkswagen (4.7m).

For the full 2013 year, the group is targeting an increase of 4% year-on-year to sell 7.41m units. The Hyundai-Kia group experienced a very strong August month, with global sales up 19.4% year-on-year to 606,417 units, compared with 507,854 units in August 2012.

And it was Hyundai that drove this growth. Hyundai August sales totalled

Allan Rushforth, vice president and COO of Hyundai Motor Europe

381,429 units, up 29.1% y-o-y from 295,449 units in August 2012. Kia, meanwhile, posted a y-o-y global increase of 5.9% in the same month to 224,988 units. Part of the growth was put down to the impact of strikes at Hyundai’s Korean plants in August 2012. Industrial action is common in Korea during the summer months, though this year, Hyundai appears to have come to a deal with the unions, which has lessened the impact of strikes.

The other major growth driver for Hyundai in 2013 has been China. The country became Hyundai’s biggest market in 2012 after 1.33m units were sold, up 14.2% on 2011, with Hyundai accounting for 856,000 units and Kia 480,000. That put the group third in the Chinese market after Volkswagen (2.6m) and General Motors (1.44m).

Hyundai Group’s Chinese sales accounted for nearly 20% of the company’s total sales last year.

Hyundai-Kia has set a target of selling 1.47m cars in China this year, which would represent a 10% increase on 2012 sales.

Hyundai brand, through its Beijing Hyundai Motor operation, would take the lion’s share of these sales, with a forecast of 970,000 vehicles and Kia’s Dongfeng Yueda Kia Motor selling 500,000.

And in the irst half, this growth looks on track, with Hyundai-Kia Chinese sales surging 36% during the January-June period, compared with the irst half of 2012. Much of this is political – Korean brands have scored heavily in China after Chinese consumers shunned Japanese cars in the wake of a damaging dispute between Beijing and Tokyo over ownership of a group of islands in the East China Sea.

However, Hyundai expects its sales growth in China to slow in the second half of the year, hit by an economic slowdown, and restrictions in output capacity until its third Chinese factory reaches full capacity. The plant came on line in July 2012.

A slowdown in China would be bad news for Hyundai, which has seen growth start to dry up in some of its other main markets, especially Western Europe and North America. Indeed, in Europe, where conditions remain tough, Hyundai has put back the timeframe for its ambitious target of reaching a market share of 5% from 2015 to 2020.

Hyundai’s 144,000 sales in Europe in 2012 were up 10% in a market which dropped 7% – market share was 3.4%. In the irst quarter of 2013, Hyundai year-onyear European sales rose 3.5%.

The group has a similar 5% market share target for North America, but although it is much closer to achieving this, in the irst quarter of 2013 the group underperformed in a growing market. Its market share actually slipped to 4.5% from 4.7% for a variety of reasons, including product recalls and a lack of local capacity.

NEW KID ON THE BLOCK Forthcoming New i10 will add to Hyundai’s impressive sales growth in 2014.

FLEET PRESENCE Hyundai is a relative newcomer in the leet sector, but its share has grown signiicantl y since European production began. In the UK, Hyundai was the fastest growing leet manufacturer in 2012, with 47% of the brand’s registrations classi ied as leet, close to the UK average. Sales have also been bolstered by low whole-life costs, thanks largely to a ive-year warranty across the range.

SMEs represent huge potential, Hyundai believes – in the UK, businesses running between one and ive cars accounted for 729,000 car sales in 2012.

To help serve SMEs better, Hyundai has begun the rollout of 27 new Fleet Business Centres at UK dealers. The Fleet Business Centres will offer a number of additional services to business customers and aim to deliver competitive purchase deals and contract hire rates for SMEs with leets of up to 10 vehicles.

This is part of a pan-European programme aimed at serving leet customers, and services on offer at the FBCs include ixed labour rate programs, extended opening hours and courtesy cars.

Hyundai admits it has been fairly lowkey in its marketing, which has led to relatively low brand recognition across Europe. The brand received a boost when it became one of the most popular during recent European scrappage schemes, but despite high-pro ile sponsorship of World Cup football, depth of customer knowledge varies from country to country.

“We have been most successful in what I call the secondary markets Poland, the Netherlands and Belgium,” said European COO and senior vicepresident, Allan Rushforth. “In the Netherlands our brand awareness is 25% and it's the same in Poland. In the UK it’s 20% but in France it's only 11% and in Germany 16%.”

Hyundai is now taking steps to try to improve unaided brand awareness to an average of 30% across Europe. “They will be dependent on the investment we are prepared to make, but one thing we will certainly be doing is increasing our digital presence,” said Rushforth.

IFW November 2013

¡

39

fleet profile HYUNDAI

MANUFACTURING STRUCTURE Hyundai and Kia may be part of the same group, and their cars share considerable amounts of technology – including platforms and powertrains. But the two brands are kept apart and positioned differently – PSA Peugeot Citroën is the nearest analogy, with Hyundai the more traditional ‘Peugeot’ brand and Kia the younger, more lifestyleoriented ‘Citroën’.

And there is one key difference. While PSA brought together its manufacturing into a single entity, with vehicles of both brands built on common production lines, Hyundai and Kia factories remain largely separate. Other than isolated instances, Kias are made at Kia plants and Hyundais at Hyundai plants.

Last year, Hyundai-Kia’s overseas production outstripped its domestic output in Korea for the irst time. Indeed, the company’s manufacturing strategy applies to both brands – build locally in all major markets: North America, Europe and the BRICs. Indeed, overseas markets in 2012 accounted for more than 2m units of Hyundai-Kia output.

According to the Korea Automobiles Manufacturers Association (KAMA), 60% of the group’s overseas output came from plants in BRIC markets. And most of the overseas output was for Hyundai brand – around 1.6m vehicles against just under 500,000 Kias. In the irst half of 2013, overseas production at Hyundai and Kia made up 61.5% and 43.4% of their total respective output, compared to 12.5% and 5.7% a decade ago.

THE CARS ARE THE STARS The i30 is Hyundai's star performer in Europe, but close behind is the ix35, which is the fastest-selling model Hyundai has ever introduced in Europe...

40

internationalfleetworld.com

And Hyundai has expanded without getting into overcapacity problems. The European plants are at 100% of capacity, while the operating ef iciency of the BRIC plants is extremely high. Hyundai Motor’s plant in Russia ran at 112.7% of capacity between Q1 and Q3, 2013, while its plant in India ran at 99.8% capacity, higher than the 98.7% of the domestic production sites.

HYUNDAI GLOBAL PRODUCTION 2012 LOCATION

UNITS

South Korea China India US Czech Republic Russia Turkey Brazil

1,904,000 855,000 638,000 361,000 303,000 224,000 87,000 27,000

Source: Hyundai

KOREAN PLANTS Hyundai has three factories in Korea. The largest is the Ulsan factory on Korea’s east coast, which it claims is the world’s largest single car factory. Hyundai started its car production at Ulsan in the 1970s, and the plant now has annual capacity of 1.5 million units, made up of ive independent manufacturing facilities on a ive million m2 site.

Ulsan employs 34,000 workers and churns

out an average of 6,000 vehicles per day, much of which is destined for domestic consumption.

A second car plant was opened on the west coast at Asan in the late 1990s, on reclaimed land. This plant is located close to Kia’s Hwa Sung plant, built in the 1980s.

Asan is a self-suf icient factory that produces 300,000 mid- and large-sized cars annually, mainly for export.

Hyundai’s third Korean plant at Jeonju is the world’s biggest production centre for commercial vehicles. Jeonju has an annual production capacity of 100,000 vehicles. It produces trucks above 2.5 tonnes GVW, buses seating 25 passengers or more, and speciality vehicles such as off-highway trucks.

OVERSEAS PLANTS Hyundai Motor Group recently set up a new division to oversee its overseas factories.

The global plant coordination division is located at Hyundai’s Seoul headquarters, and will control 15 Hyundai and Kia factories in eight countries. Hyundai operates seven factories in 10 countries, while Kia owns ive factories in three countries.

The new division is aimed at supporting better communications between overseas factories and the Seoul headquarters, and is part of chairman Chung Mong-koo’s increasing emphasis on overseas markets.

“As the domestic market is expected to continue to suffer in the latter half of this year, we need to focus more resources on overseas markets,” Chung recently told Korean media.

CZECH REPUBLIC Hyundai expanded into Europe in the last decade, taking advantage of EU expansion, which meant it could locate its plants in cheaper former communist states. Hyundai’s main European plant is at Nosovice in the Czech Republic. Hyundai spent more than €1 billion building the plant, including €150m in local grants, and the plant was built in remarkable time. Production started in November 2008 – just 19 months after the groundbreaking ceremony on the green ield site.

The Czech factory produces 300,000 units a year and serves as the base for expanding into Europe, the Middle East, Australia, and South Africa. Around 18% of the cars it makes go to non-EU countries.

It is the second part of Hyundai group’s European manufacturing strategy. The other, Kia’s plant at Zilina, is about 90km further east, over the border in Slovakia.

It’s pretty much a mirror of the Nosovice plant. The only difference is that while

Zilina builds engines, Nosovice does not.

Instead, it builds transmissions, and the two factories supply each other, thus localising all powertrains.

The cars built in the two factories are based on shared platforms. Nosovice makes the Hyundai i30 range, ix35 crossover and ix20 mini-MPV. The corresponding Kia models are the Cee'd, Sportage and Venga.

Both plants have a capacity of 300,000 cars a year, based on a ive-day, triple-shift system.

In fact, Nosovice actually ran at 101% of capacity in 2012, producing 303,035 vehicles in its irst year at full capacity.

The i30 is Hyundai's star performer in Europe, but close behind is the ix35, which is currently undergoing a mid-life facelift. The ix35 is the fastest-selling model Hyundai has ever introduced in Europe and this year will be the biggest-volume model to come out of Nosovice, accounting for 45% of total production against 41% for the i30 range.

TURKEY Nosovice is not Hyundai’s only bridgehead into Europe. It has completed the expansion of its assembly plant in Turkey, increasing the company’s capacity in Europe to 500,000 units a year. Hyundai Assan Otomotive Sanayi (HAOS) opened in the city of Izmit in 1997, with an initial capacity of 60,000 cars a year. The plant is a joint venture with Turkey’s Kibar Holding. A second shift in 2007 took output up to 125,000, and a new injection of capital will boost capacity to 200,000 by 2014. Hyundai has spent more than €1bn on HAOS to date.

The upgrade will allow the facility to switch production of the redesigned i10 city car from India to Turkey, where it will be built alongside the larger B-segment i20. This means all LHD i10 and i20 models for Europe will be built in Turkey, with only UK and Ireland still sourcing RHD cars from India. The move will mean that, by the end of the year, 90% of Hyundai-brand vehicles sold in mainland Europe will also have been built in the region. In the UK, 70% of cars sold will be European-built.

Only Hyundai’s European premium models – such as i40, i800 and Santa Fe – are now sourced from Korea.

These accounted for more than 10% of the Korean brand’s sales in Europe last year, a major increase on just 4.4% of European sales in 2011, largely due to the Hyundai i40, which was launched in July 2011.

IFW November 2013

41

fleet profile HYUNDAI

NORTH AMERICA Hyundai opened a major â&#x201A;Ź1.3bn (US$1.7bn) plant in Montgomery, Alabama in May 2005. The factory builds Elantra (pictured left) and Sonata models, and is running at full capacity. In 2012, it set an annual production record of 361,348 cars.

Hyundai wants to sell 740,000 vehicles in the US this year, which would represent a 5% increase over the 703,007 sold in 2012. In September, it added a third shift at Montgomery. In a mirror of its European operations, Kia operates a similar-sized plant in Georgia, and Hyundai Group is considering adding capacity in the form of a third North American plant.

A possible Korea-Mexico Free Trade Agreement (FTA) has driven speculation that this would most likely be sited in Mexico. Hyundai has recently set up its own dealer network in Mexico, a market where it has been absent. Building a plant in Mexico would allow it to feed the local market as well as US and Canada via the NAFTA FTA.

42

internationalfleetworld.com

RUSSIA Hyundai Motor Manufacturing Russia began operations in St Petersburg in January 2011 with an annual production capacity of 150,000 units. The irst car off the line was the Accent small car, badged Solaris in Russia, and this has now been joined by three other models.

The plant’s capacity has also been increased to 200,000 units to meet increasing demand in Russia. In 2012, the factory became the largest car manufacturing plant in north-west Russia, operating 10% above its stated capacity.

The Solaris is the second-best selling car in Russia, after the Lada Granta.

BRAZIL Hyundai’s newest factory is in the Piracicaba region of Brazil, 160km north-west of Sao Paulo, which began production in September 2012. Hyundai is investing a total of €457m in Hyundai Motor Brazil (HMB), and maximum capacity is expected to reach 150,000 units annually.

The factory builds the HB20, a i ve-door hatchback related to the European market i20, but designed speci ically for Brazil with different exterior styling and interior. A crossover version called HB20X was added in February 2013, and a sedan model, HB20S in March. The plant manufactured 17,000 vehicles in its irst three months of operation.

Hyundai HB20X

CHINA Hyundai's irst plant in Beijing began producing the Sonata in December 2002. The company now has three plants as part of its joint venture with Beijing Automotive, and in 2012, these factories built 856,000 units, making China Hyundai’s biggest market.

Currently, the irst and second factories in Beijing produce 300,000 units each, while the third factory, which began operations in July 2012, has an annual capacity of 400,000, bringing the total Chinese production capacity to 1 million vehicles per year. And despite fears of a market slowdown, Hyundai has plans to increase production in China by as much as 40% to 1.4m units by 2015.

Beijing Hyundai Motor Company wants to increase sales of mid-sized and large cars to 50% of its total China sales by 2015. At present, smaller models like the Avante and Tucson take a higher share of the company's sales in China, but Beijing Hyundai is focusing on larger Sonata and Santa Fe models, as well as high-end cars such as Genesis and Equus.

INDIA Hyundai Despite the shift of European-destined Sonata cars away from India, Hyundai’s Chennai plant remains central to its strategy. The Korean company opened the Chennai plant in 1998, and subsequently a second factory has been built alongside the original factory, making it Hyundai’s biggest factory outside Korea. In 2012, the two factories in India produced 641,281 vehicles. Of these, 391,276 were sold in India and 250,005 were exported to more than 110 countries across Europe, Africa, Middle East, Latin America and Asia.

Originally it was used as the global source point of all small Hyundais – the i10 and i20, and these are both still built there alongside the EON model. Larger vehicles such as Santa Fe SUV and Sonata and Elantra saloons have recently been added. All nonEuropean RHD small car production comes out of Chennai.

Local content is almost 100% following the opening in 2008 of a new engine and transmission plant with a capacity of 570,000 powertrains. Further expansion is under way, with a new diesel engine plant and new stamping shop at a cost of €228m. Cumulative investment in Chennai to 2013 stands at more than €1bn.

India gives Hyundai a cost advantage that is signi icant for Hyundai – Indian labour costs (based on Global Production Inc’s 2008 data) were only 18.3% of Korean costs.

And Indian labour is signi icantly cheaper than, say, Slovakian labour, which is roughly half the Korean cost.

IFW November 2013

43

INTERNATIONAL

FLEETW RLD

ONLINE NOW! For all your fleet needs, visit internationalfleetworld.com

NEWS from the global fleet community

INSIGHT from experts into the fleet industry

ADVICE best practice for running your fleet

launch report Ford Transit Connect p46 Volkswagen e-up! p47 Vauxhall Insignia p48 DAF LF p49

The revised Insignia offers some subtle changes, which mask significant improvements in aerodynamics, emissions and fuel consumption. p48

IFW November 2013

45

launch report

Ford Transit Connect

Ford’s new Transit Connect brings Ford’s small van range right up to date, reckons John Kendall.

SECTOR Small van PRICE From €15,390 (approx) FUEL 5.6 – 4.0l/100km CO2 105 – 129g/km It’s 11 years since Ford introduced the first Transit Connect, to compete with successful monospace designs such as the Citroën Berlingo and Renault Kangoo. That model, designed to be ‘Truck Tough’ was based on Ford Escort underpinnings and built in Ford’s brand new plant in Turkey.

The latest model, first seen a year ago, is logically based on the Escort replacement, the Focus, or to be more precise, the C-Max variant. With the transfer of all Transit Custom and Transit production to the Turkish plant, there is no space to produce the smaller Transit model there now. So production has moved to Ford’s Valencia plant in Spain, home of the C-Max. Not surprisingly, the new van shares much with the models it’s based on. Headlights and the frontal design leave no doubt that the Connect is a modern Ford. Inside it’s a similar experience, with the dashboard, instruments and controls that would be familiar to any Focus or C-Max driver. So it has many car-like attributes and design features; just what we would expect from a van of this size.

Ford hasn’t been afraid to borrow good ideas from elsewhere either. The cab is available with a dual passenger seat, first seen in this size of van on the Citroën Berlingo/Peugeot Partner. Similarly, Peu-

46

internationalfleetworld.com

geot and Citroën were the first to offer bulkhead through loading for longer items. Ford has taken the idea and developed it further, so that items can be loaded through the folded down outer passenger seat.

Size is important. Ford has dropped the high roof option for the new model, but retained two wheelbase options. This means a slight reduction in overall load volume for the larger model, down to 3.6m3 with a bulkhead fitted or 4.4m3 without, compared with 3.7m3 for the current model although the through bulkhead loading for the new model offers 0.1m3 more than the current model with folding passenger seat. What is probably more important to users is the improved load area access and usable space inside.

Ford says the new Connect will be the only van in its class permitting the loading of a Europallet through the side loading door. A special profile in the top of the bulkhead also means that 2.4m x 1.2m sheets can be carried in the longer L2 van - of particular interest to the construction sector.

Ford has also raised the payload to match the best in class Fiat Doblo/Vauxhall/Opel Combo. L2 Connect will have a choice of 700-1,000kg payloads, while the L1 model will be available with 625-825kg options.

The core engine will be the Ford/PSA 1.6-

litre diesel, available in 75hp, 95hp and 115hp variants. The 115hp engines are equipped with a six-speed gearbox, while the lower powered models are fitted with a five-speed box. There will also be the option of the 100hp 1.0-litre three-cylinder EcoBoost petrol engine, the first time there has been a serious petrol engine option for the Transit Connect for a few years. Ford will also offer a 150hp 1.6-litre EcoBoost petrol engine with an automated transmission, but this is designed principally for the North American market.

The 1.6-litre diesel engine is familiar enough and performs as expected in the Transit Connect, offering good performance from the 95hp variant and good fuel consumption potential, particularly from the 4.0litre/100km ECOnetic variant. In terms of refinement, it’s a clear step ahead of the outgoing model. The 1.0-litre EcoBoost should not be underestimated either. It might lack the diesels torque, but was quite capable of giving good performance to a part laden van.

verdict

Ford was lagging behind with the outgoing Transit Connect, but on first impressions, the new model is set to go straight to the top of its class.

Volkswagen e-up!

The latest up! to join the range is the expected electric version.John Kendall took a glide around Frankfurt.

SECTOR A segment hatchback PRICE €26,900 FUEL n/a CO2 n/a The Volkswagen e-up! made its debut at the Frankfurt Show in September, with sales due to begin in October. It will be followed by yet another electric Volkswagen in spring 2014, when the e-Golf also goes on sale. Both will be propelled by a similar electric motor, driving the front wheels and a Lithium-ion battery pack.

This battery pack is built into the floor between the two rear wheels, partly under the back seat, so it makes a minimal intrusion into the load space. The e-up! motor develops 60kW (82hp), giving the e-up a top speed of 130km/h.

A great deal of technology has been developed to ensure that the car uses energy very efficiently. Volkswagen says that it uses 11.7kWh/100km and at an average electricity price of 25.6 cents, based on German prices in 2013, driving 100km is said to cost around €3.02. Recharging from a European 230V 2.3kW supply will take around nine hours, if the battery is completely run down. Volkswagen can supply a wall box, which will offer 3.6kW charging and can completely recharge the battery in seven hours. Fast charging is also possible at rates up to 40kW and this can give a quick charge of up to 80% in 30 minutes.

Driving 100km should not be a problem

either. The e-up! has a quoted NEDC range of 160km, although that would depend on driving style, among other factors.

Volkswagen has looked into all energy saving possibilities for the e-up! and managed to reduce aerodynamic drag by 4% compared with the take-up! while reducing rolling resistance by 7%. It also gets a regenerative braking system to help extend driving range and is fitted with an air conditioning system developed for the car.

In addition to this, the car has three driving modes, ‘standard’, ‘Eco’ and ‘Eco+’. For normal short distance driving, the standard mode gives full power. ‘Eco’ reduces maximum motor power to 50kW, reduces the output of the air conditioning system and changes the accelerator pedal response. In ‘Eco+’ mode, power is limited to 40kW, the air conditioning is disabled and the accelerator pedal response is modified still further.

Then there are five different levels of regenerative braking – D, D1, D2, D3 and B. In D, the default mode, there is no regenerative braking unless the brake pedal is applied. From D1 through to B, the levels of regenerative braking are progressively increased and from D2 to B, the level of regenerative braking is sharp enough for the brake lights to be automatically triggered.

Given the high price, Volkswagen has given the e-up! a high specification, which includes a satellite navigation system programmed for e-mobility with charging stations displayed.

It gets a radio/CD system, hands free phone connectivity, four doors, a heated windscreen, air conditioning, and heated seats.

Driving the e-up!, like other electric cars, could not be much simpler. It’s simply a case of switch on and go. The performance is very lively in standard mode, reaching 100km/h almost a second quicker than the petrol powered variant and of course it is very quiet. In standard mode, the car will roll after lifting off the accelerator like a normal car, switching into D1 makes a notable difference with regenerative braking able to replace braking in many cases, if you anticipate the approach to traffic lights or standing traffic. The more active regeneration modes would need some practice, but could be useful in stop-start urban traffic. It certainly made city driving as easy as possible.

verdict

Well thought out and well executed, the e-up! makes a great city car. Electric cars are improving noticeably, but price still makes a car like the e-up! expensive.

IFW November 2013

47

launch report

Opel Insignia

The Opel Insignia gets a subtle facelift, with new engines and equipment, reports John Kendall.

SECTOR D-segment hatchback, saloon and estate PRICE From €19,000 (approx) FUEL 3.7 – 11.0l/100km CO2 95 – 259g/km It’s hard to believe that the Opel Insignia has really been around for five years, in which case, it’s probably overdue a facelift. In truth you will need to be an Insignia expert to spot the difference. New is distinguished from its predecessor by some subtle redesign work to the front and rear. There’s a wider and lower front grille, while at the rear, the chrome logo bar is lower than before, extending into the tail lights and incorporating the reversing lamps. Tail and stop lamp functions are carried out by red LEDs. Importantly the subtle bodywork changes help to reduce aerodynamic drag. Hatchback models boast an impressive drag coefficient of 0.25, while for the Sports Tourer, the figure is 0.28.

There is also a new addition to the Insignia Sports Tourer, the Country Tourer, which features raised ground clearance and an allwheel-drive-system. There are new engines too, which help to extend the Insignia’s fleet appeal. These include new 120hp and 140hp ecoFLEX models powered by new variants of the 2.0-litre CDTi diesel engine. There is also a new 165hp variant of the 2.0-litre diesel.

The 120hp and 140hp ecoFLEX models get an active front air shutter to smooth airflow even further, when cooling air is not needed for the radiator. With fuel consumption of 3.7l/100km and CO2 emissions of 99g/km for

48

internationalfleetworld.com

both 120hp and 140hp models, they should find favour with business drivers. Two new petrol engines join the range too, the 170hp 1.6-litre direct injection SIDI engine, first seen in the Cascada convertible earlier this year and a 250hp 2.0-litre direct-injection SIDI engine. The 1.6-litre engine offers CO2 emissions of 139g/km and combined consumption of 5.9l/100km, while the 2.0-litre engine emits 169g/km of CO2 and gives 7.2l/100km in combined consumption.

For petrolhead die-hards, Opel has launched the Insignia VXR, powered by a 325hp V6 petrol engine with a 273km/h top speed.

It’s inside where most drivers will notice the difference, if they choose the new infotainment system with eight-inch touchscreen.

The system is part of the Intellilink family, first seen in the ADAM earlier this year. The centre console has been re-designed with a touchpad, in addition to the touchscreen and steering wheel remote controls. Two and three finger swipes perform different functions with the touchpad, emulating the functions on a touchscreen smartphone.

The system comes with a second display, which replaces the speedometer directly ahead of the driver with a display screen showing a digital speedometer, but with a

conventional analogue dial. It can also show a range of information including navigation, audio and smartphone functions, in the centre section of the dial. It looks good, although we found the touchpad was slow in operation.

The Insignia remains a good car to drive.

It does not have the fluidity or accomplishment of the Ford Mondeo, but it’s not so far behind.

The new ecoFLEX diesels must be seen as stopgap engines, because they are sure to be replaced by the new 1.6-litre CDTi diesel first seen in the Zafira Tourer recently and now following in the Meriva. But they give fleet drivers low emission, low consumption engines that will be welcome, particularly where there are tax advantages for the low CO2 output.

Refinement could be better from the 2.0-litre diesel but it is easy enough to live with.

The new 1.6-litre petrol engine offered impressive performance with low noise output. While it lacks the diesels’ torque, it’s not that far behind.

verdict

The revised Insignia offers subtle changes, masking big improvements while introducing impressive new engines. Is the best yet to come?

DAF LF

DAF has reworked its entire range for Euro 6.Ian Norwell drives the smallest – the LF at 7.5 tonnes GVW.

SECTOR Light truck GVW 7.5 – 21.0-tonnes ENGINES 4.5 and 6.7-litres POWER RANGE 140 – 300hp I KNOW MY PLACE… A world away from the flat-floored, long hauling 600hp truck class, there’s a small army of nimble little trucks slogging away on parcel delivery and the like. Were they to be developed in isolation, they would probably still be primitive little vehicles, but they are the beneficiaries of the trickledown technology that gets invested in larger trucks. It’s ironic, because the volumes lie at this lower end, but sadly the percentage of their cost that is represented by say, an AMT (automated manual transmission), represents too big a proportion of the chassis price. Even so, such a device has now arrived in the type of truck where it will offer most benefit to the driver – the multi-drop 7.5 tonner. Yes it’s an option, but the six-speed ZF AMT is there. We can’t help feeling that continuing to specify a manual box on a truck that has to work as hard as this for a living may be a mistake.

Control of over-revving and preservation of clutches should be justification enough.

MIGRATION Tony Pain, marketing director at DAF Trucks in the UK, tells us that there is a price to pay. He says; “The increased costs of Euro 6 will have a continued effect on

the 7.5 tonne market, I expect it to shrink by 10% as a direct result.”

The death of the 7.5 tonner has been over-reported for many years, but it continues to decline. Operators are choosing either to extract themselves from the onerous legislation surrounding licensing for vehicles over 3.5-tonnes GVW in Europe, drivers hours and compliance by migrating south to a 3.5 tonne GVW van, or to boost productivity by going up to a 12 tonner. And the LF takes another 150kg weight penalty with the added after treatment equipment.

driver’s performance percentages on anticipation, fuel economy and braking, can all be deleted at shift’s end. The cab’s exterior and interior have been completely revised to give it the new range ‘family’ look, and it appeared quiet by light truck standards. DAF took 39.7% of the 7.4-7.5 tonne market in the UK last year. Their closest competitor was Iveco with 15.6%. If truck operators are trading up to 12 tonnes, it looks like they’re keeping the badge on the grill the same, as DAF has a dominant share of that sector too.

THE DRIVE Despite these travails, this was one of the nicest trucks to drive in the CF and LF line-up. We drove what DAF called the ‘Royal Mail spec’, which was clearly selling on price and keeping things as standard as possible. An LF150 with a five speed manual box, and a simple engine brake switch on the steering wheel, was an almost welcome return to simplicity.

DPA (driver performance assistant) does come as standard and the feedback on the dashboard display manages to be supportive, without being patronizing. It is not part of a telematics package, DAF does not have its own, and so the individual

UPLIFT An integrated DAF ‘truckphone’ that just requires a SIM card, daytime running lights and navigation (a boon for the multidropper), all help to give it an uplift from the outgoing model. Improved seats and redesigned steps also help with the dozens of daily moves in and out of this cab that the average driver will have to make.

verdict

The latest DAF LF is a good little truck. It gets plenty of cab and wheelbase options and some nice options in this class, which should ensure its continuing popularity.

IFW November 2013

49

fleet in figures

Europe on the mend?

The overall sales trend may still be down, but there are growing signs of a recovery in the European car market, suggests John Kendall.

The successful launch of the new Captur crossover and strong sales of the Clio helped Renault post a 17.5% rise for September.

Registrations data for September from the European Automobile Manufacturers Association (ACEA) suggests that the European economy is making progress. Registrations in the EU 27 nations in September rose 5.4% for the month, compared with September 2012 to 1,159,066 units. Registrations in September 2012 reached a record low of 1,099,468 – the lowest igure recorded since ACEA began recording registrations in the EU 27 in 2003. Only eight States recorded a decrease in registrations during September.

Overall, the September year-to-date igures are still down, but the decrease was an encouraging -3.9% compared with the same period in 2012, with the September YtD total for 2013 reaching 9,000,629. As JATO Dynamics comments, the -3.9% YtD registra-

50

internationalfleetworld.com

tions decrease is the smallest so far this year.

According to the Scotiabank Global Auto Report; “The improvement reflects a rebound in business and consumer confidence – currently at the highest level in two and a half years. Industrial orders have also begun to strengthen across the region, led by rising export demand. In particular, the region’s Purchasing Managers Index has advanced consistently since March, with the September reading at the highest since mid-2011.”

The September increases were notable in that some of the weakest markets in the region posted some of the largest increases.

Ireland, whose economy was devastated by the European inancial crisis, posted a 27.9% increase in registrations to a com-

paratively modest 3,175. Spain recorded a similar percentage rise, with September registrations up 28.5% to 45,175. Among the other troubled economies, France posted a 3.4% rise for September to 142,166. While Italy still posted a decrease, it was comparatively small at -2.9% taking the September total to 106,363.

The UK again posted the largest increase in YtD registrations with a 10.8% increase to 1,794,924 registrations. Spain has now reduced its YtD decline to -1.6%, with 546,435. Germany is -6.0% down at 2,217,019, but the September fall of -1.2% suggests that German registrations may be returning to positive figures before too long.

Overall, manufacturers had a good

September in Europe too. Just a handful recorded a decrease in September, compared with September 2012. These included Peugeot and Citroën, which saw registrations slip by -2.0% and -4.1% respectively, with the two companies down -9.6% and -13.2% respectively too.

Lancia/Chrysler and Alfa Romeo are still struggling with September registrations down -20% and -14.8% respectively, although Fiat and Jeep both posted small increases. Nissan, Honda and SMART were the only others to record a fall in registrations in September, but Nisssan’s decrease was small at -0.5%. Honda was down -13.7% and SMART -1.7%.

Mazda posted the largest percentage rise in September, up 29.9% to 12,128 registrations, with an 11.0% rise for September YtD. Dacia continues to bolster Renault’s fortunes with a 40.7% increase for September and a 20.6% increase for September YtD. Renault posted a 17.5% rise for September, which helped the company to record a 0.4% increase for September YtD, after a bruising two years of decline. JATO Dynamics attributes the increases to a successful launch of the new Captur crossover and strong sales of the Clio.

Volkswagen is the only manufacturer to have registered over 1m cars in Europe in the September YtD period, even though registrations overall are down -6.7% to 1,115,731. But Volkswagen has still sold 64% more cars in 2013 than its nearest rival, Ford. Also in the VW Group, SEAT is enjoying a 10.4% rise in registrations YtD. Among the 10 best selling brands, only BMW and Mercedes-Benz have registered more cars in 2013, with BMW September YtD sales up 1.0% to 486,682 and Mercedes up 5.1% to 478,007.

The Volkswagen Golf remains the best selling model in Europe with sales up 2.1% for the year to 347,405 and up 17.4% for the month to 45,212 for September, according to JATO Dynamics. Other strong performers were the Renault Clio, with sales up 20.2% to 216,761 YtD and up 28.8% for September to 25,851 and the BMW 3 Series up 20.1% YtD to 155,335 and up 23.4% for September to 22,054.

Commenting on the European data for September, Gareth Hession, vice

TOP 10 BRANDS Sept 2013

Sept 2012

% Change Sept

Sept YtD 2013

Sept YtD 2012

% Change YtD

137,202

135,091

+1.6%

1,164,131

1,249,533

-6.8%

Ford

98,497

93,518

+5.3%

708,932

748,575

-5.3%

Opel/Vauxhall

88,088

83,453

+5.6%

633,769

659,324

-3.9%

Renault

72,757

62,313

+16.8%

593,467

630,319

-5.8%

BMW

70,604

65,488

+7.8%

486,682

481,991

+1.0%

Peugeot

66,855

68,279

-2.1%

561,581

621,739

-9.7%

Audi

66,623

64,857

+2.7%

534,605

550,280

-2.8%

Mercedes-Benz

63,387

55,920

+13.4%

478,008

454,956

+5.1%

Toyota

52,530

49,645

+5.8%

390,587

403,321

-3.2%

Citroën

51,715

53,959

-4.2%

458,892

529,686

-13.4%

% Change YtD

Make Volkswagen

Source - JATO Dynamics

TOP 10 MODELS Sept 2013

Sept 2012

% Change Sept

Sept YtD 2013

Sept YtD 2012

Volkswagen Golf

45,212

38,506

+17.4%

347,405

340,212

+2.1%

Ford Fiesta

33,561

31,445

+6.7%

222,184

238,440

-6.8%

Opel/Vauxhall Corsa

28,347

30,607

-7.4%

188,705

211,203

-10.7%

Renault Clio

25,851

20,074

+28.8%

216,761

180,391

+20.2%

Ford Focus

24,872

24,127

+3.1%

176,507

190,350

-7.3%

Peugeot 208

22,398

23,424

-4.4%

189,654

98,309

-

BMW 3 Series

22,054

17,875

+23.4%

155,335

129,317

+20.1%

Volkswagen Polo

21,625

20,613

+4.9%

201,929

225,119

-10.3%

Opel/Vauxhall Astra

21,055

21,996

-4.3%

153,281

179,660

-14.7%

Nissan Qashqai

18,993

19,061

-0.4%

161,054

161,699

-0.4%

Make

Source - JATO Dynamics

president of research at JATO Dynamics said; “September’s results should be something for the European car market to celebrate. The fact that the deficit in year-to-date figures is the smallest we’ve seen this year is encouraging. Similarly, September saw the largest single monthly increase of 2013 so far. Although it is still too early to tell whether this signals the start of long-term improvement for the industry, our latest analysis shows

there are certainly grounds for optimism.”

Elsewhere, the US and China have continued their strong performances, although the political stalemate in the USA in October slowed the pace in the country. Reuters reported that US auto sales fell -4.2% in September to 1.14m vehicles, the first decline in over two years, but with a short-term deal on the deficit agreed, analysts expect the US to recover for the rest of the year.

IFW November 2013

51