International Fleet World November 2014

A great place to work.

The new Hyundai H350.

THE NEW SEAT LEON X-PERIENCE WITH 4DRIVE DISCOVER NEW ROUTES FOR YOUR BUSINESS.

TECHNOLOGY TO ENJOY

SAFE DRIVE With its 4DRIVE Technology, higher suspension, and bigger tyres, comfort and safety are assured even in adverse weather and road conditions.

NEW GENERATION INFOTAINMENT Now it’s easier than ever to manage your business, thanks to the touch screen and smartphone capabilities.

VERSATILE AND SPACIOUS The spacious 587-liters boot expands to a surprising 1470-liters to hold all the tools, equipment and products you need to push your business forward.

SEAT FOR BUSINESS

SE AT.COM/BUSINESS Average consumption: 4.8 - 6.8 l/100 km. Average CO2 mass emissions: 125 - 152 g/km.

contents A great place to work.

The new Hyundai H350.

16 Spotlight on new Discovery Sport.

26 Enrico Atanasio on Jeep’s future.

Features Editor Katie Beck katie@fleetworldgroup.co.uk

40 Ford’s global appeal continues.

45 Opel’s New Vivaro put to the test.

Sales Director Anne Dopson anne@fleetworldgroup.co.uk

04 Fleet Review Editor John Kendall analyses the most valuable automotive brands.

Managing Editor Ross Durkin ross@fleetworldgroup.co.uk Publisher Jerry Ramsdale jerry@fleetworldgroup.co.uk Editor John Kendall john@fleetworldgroup.co.uk Deputy Editor Alex Grant alex@fleetworldgroup.co.uk Business Editor Natalie Middleton natalie@fleetworldgroup.co.uk

Sales Executives Darren Brett darren@fleetworldgroup.co.uk Claire Warman claire@fleetworldgroup.co.uk Circulation Manager Tracy Howell tracy@fleetworldgroup.co.uk Head of Production Luke Wikner luke@fleetworldgroup.co.uk Designers Tina Ries tina@fleetworldgroup.co.uk Samantha Hargreaves sam@fleetworldgroup.co.uk

06 Inside Knowledge Simon Oliphant on why leasing suppliers must be adaptable.

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

16 Spotlight An in-depth look at the new Land Rover Discovery Sport.

18 RVs Improving residual values and contract hire rental rates in Europe.

20 Fleet Show 2015 Put 12 May in your 2015 diary, for the fleet event of the year.

22 Motor Show A recap of the biggest new car launches and concepts from Paris.

26 Interview Enrico Atanasio on Jeep’s potential for European fleet growth.

28 Management The importance of driver training as part of a corporate strategy.

32 Interview Alain Visser on Volvo’s plans for XC90 and international sales targets.

34 Fleet Focus How Spain’s leasing sector is recovering after the financial crisis.

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

38 International Fleet Academy Granularity and making sense of fleet data.

40 Profile Ford’s impressive schedule of new car launches and plans for expansion.

44 Launch Report Nissan Pulsar / Lexus NX 300h / BMW 2 Series / Opel Vivaro.

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

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

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fleet review

This month, editor John Kendall looks at possible lower fuel prices, the best global brands and China’s eco-friendly stance.

Best of the best...

Interbrand publishes its Best Global Brands report covering the world’s 100 most valuable brands each year and once again, Toyota is rated as the most valuable automotive brand. Interbrand reckons that a focus on energy-efficient products and integrated technology is helping leading auto brands drive brand loyalty and value. The top 10 automotive brands include Toyota (no. 8 overall, value increased by 20%), Mercedes-Benz (10, +8%), BMW (11, +7%), Honda (20, +17%), VW (31, +23%), Ford (39, +18%), Hyundai (40, +16%), Audi (45, +27%), Nissan (56, +23%), Porsche (60, +11%).

The highest risers in brand value were Audi, VW and Nissan, while Land Rover has entered the rankings at no. 91, making it the 14th highest rated automotive brand in the report. Rated no. 1 and 2 were Apple and Google. Both were valued at over $100bn (Apple at $118.9bn and Google at $107.43bn).

That said, I’m still not sure what this tells us about brand value, but for those who want to know more, the report can be found at http://bestglobalbrands.com/2014/ranking/

China to punish carmakers Rising levels of pollution is one of the drivers for corporate average fuel economy regulations being introduced in China next year.

The target for 2015 is 6.9l/100km, falling to 5.0l/100km by 2020. Last week China said that it would punish manufacturers who fail to meet the targets, by restricting their production and publicly naming them. The fuel consumption formula will be weight based. According to Reuters, the Chinese Government will also reject plans for expansion from those who fail to meet the targets.

These will be required to submit plans for

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improvement. The move is expected to increase demand for hybrid and electric vehicles. It seems that the 2015 targets are not likely to cause problems, but it might be a different story for the 2020 targets. But we are likely to have seen some significant developments in electric vehicles by then, which could have an impact on EV usage and not just in China.

Oil prices

Speaking of fuel consumption, fleets around the world must be quietly hoping that the current falling price of oil is not about to go into reverse. As we discuss briefly in Fleet in Focus, it seems that we are the surprising beneficiaries of a price war between the OPEC oil producers and the United States, which, with its reserves of shale oil and gas has introduced fresh competition into the oil market. OPEC is due to hold a meeting in November to decide how to deal with the situation, but there doesn’t appear to be much unity among its members, if press reports are accurate. As I write, oil is currently selling at $85.40 a barrel and some forecasters believe it could fall as low as $60 a barrel. A lower price would pile pressure on some of the US producers who could have difficulty surviving at such low prices, but while some OPEC nations are happy for prices to fall, others want to see it rise again. Watch this space.

visit internationalfleetworld.com

New Vivaro

READY FOR MORE TEAMWORK. With flexible seating solutions for up to 9 people.

Designed to get work done. opel.com Fuel consumption combined 6.6–5.7 l/100 km; CO2 emissions combined 174–149 g/km (according to R (EC) No. 715/2007).

inside knowledge

Adapt & survive Simon Oliphant, chief executive of Hitachi Capital Vehicle Solutions, says leasing suppliers will have to adapt to the changing mobility needs of companies and their employees.

A

s organisations look to improve the efficiency and if so, what is the most efficient means from a fuel of their workforces and vehicles, the challenge and CO2 emissions perspective?

The company-wide use of video and telephone is on for the vehicle leasing industry to widen conferencing reduces emissions and travel costs each its scope to provide a total mobility solution to corpoyear and travelling on company business may mean rates and employees. using public transport ahead of using a car.

Provision of a financed vehicle with all the added Once a company opens its mind to a wider approach ancillary services to keep it on the road will simply not to people mobility, essential journey planning is be enough to meet the changing mobility needs of adopted wherever possible. Sales journeys to a major organisations and their employees across Europe over city like London or Paris may mean parking on the the next decade. outskirts of the city and using public transport for the Charles Darwin was quoted as saying: “It’s not the remaining 10 -15kms to avoid congestion charges and strongest species that survive, nor the most intelligent, costly car park charges. but the most responsive to change” and that is a useful A longer journey of say 200-300kms may mean analogy for the industry. taking a train and then catching a taxi or bus at the Planes, trains and automobiles come to mind but other end, or if a longer journey is required, hiring a car add in buses, hire cars and even bicycles and you are from a rental company or pay-on-use car club to closer to meeting a brief where organisations strive to complete a journey. These types of suppliers are improve their people and vehicle utilisation at the becoming more prevalent and same time as reducing costs and now run car fleets in many of the their environmental impact.

“Governments around Europe major cities around Europe.

This change in utilisation continue to penalise and Flying is often seen as a last comes on the back of drivers restrict motorists when they resort from a cost and emissions changing their lifestyles and perspective, but sometimes even more organisations introenter major cities in a bid cannot be avoided, especially if ducing major initiatives such as to improve air quality.” it’s long-haul or involves an home working to improve important face-to-face meeting. A people and vehicle efficiencies. third party on hand to provide independent help and Something that will impact everyone very soon is assistance to ensure the most efficient route and plane the added challenge of keeping people and vehicles ticket is purchased would be invaluable for corporates mobile as governments around Europe continue to as part of their overall mobility provision. penalise and restrict motorists when they enter major All the above are already available. In the future, cities in a bid to improve air quality. organisations like Hitachi Capital are well placed to All major cities are now coming under the same extend their service offering to include this extra level pressure of improving air quality and that will mean of support and integrate these services. Their knowlrestricting entry to certain types of vehicles. It is edgeable customer service and operations teams are already happening in London with the introduction of committed to keeping drivers on the road and mixing it the Low Emission Zone which impacts how ‘heavy up to provide a range of other mobility services that diesel vehicles’ can move in and out of the city. can become an integral part of their product offering.

One forward thinking fleet in the UK with a close eye Darwin’s quote relates beautifully to how fleet supplion people and vehicle mobility and reducing emisers need to be adaptable in the future to change what sions is the Environment Agency, which runs 5,000 is an established sector. Those that adapt quickly will operational cars and vans. It encourages employees be rewarded with future growth and success. and managers to ask - do we need to make this journey

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manufacturer news

Hyundai enters heavy van sector yundai launched its new H350 van at the recent IAA Hanover CV Show, unveiling its plans to enter H the European heavy van sector for the first time.

Hyundai says there will be three body styles offered with the H350, which is due to go on sale in Europe in 2015. There will be a panel van, 14/15-seat minibus and a flatbed truck. Both van and minibus versions were on display at the Show.

Hyundai is a strong player in its domestic CV market supplying a range of light CVs and heavy trucks. Several countries already sell the lighter H1/i-Load model.

The H350 van will be available in two overall lengths, with a single roof height. This will offer body volumes of 10.9m3 and 12.9m3. Gross payloads will be available in a range between 1,233kg and 1,365kg, based on a 3,500kg gross vehicle weight (GVW). A full height steel bulkhead will be standard equipment with a bulkhead window available as an option. With 1,380mm between the wheel arches, the H350 will be able to accommodate up to five europallets. A total of 14 load lashing points are incorporated in the load floor and a 12-volt power outlet is fitted near the rear of the load area. Rear doors will

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open to 180° and 270°. Conversion specialist Bott will be offering a range of equipment to suit different trades.

Cabin storage space includes storage under the passenger bench seat, large door pockets and a central storage compartment in the dashboard, which incorporates a 12-volt power socket. Under the dashboard, a folding table is fitted in the central dashboard area. A cooled glove box is also an option.

Door mirrors will be electrically heated and controlled. Equipment will include rain-sensing windscreen wipers and automatic headlights. Cruise control will be on the options list. Audio, navigation and park assist systems will be available, as will DAB radio, Bluetooth hands-free connectivity and iPod connectivity.

The H350 will be powered by a 2.5-litre four-cylinder common-rail turbo diesel, available with two power outputs. Lower powered engines will produce 150hp at 3,600rpm and 373Nm of torque between 1,350rpm and 2,750rpm, while the higher-powered engine will deliver 170hp at 3,600rpm and 422Nm of torque between 1,500rpm and 2,750rpm. Power is fed to the rear wheels through a six-speed manual transmission.

For the latest news, visit internationalfleetworld.com

New Mondeo to feature first hybrid

F

ord has announced details of its 2015 Mondeo, which goes on sale from later this year and is billed as “the most technologically advanced Ford vehicle ever introduced in Europe.”

The new model is built on Ford’s new global CD-segment platform and will be offered as four-door, five-door or estate. It also debuts a host of new technologies including Ford’s new PreCollision Assist with Pedestrian Detection, as well as the introduction of Ford’s adaptive LED headlamp technology to Europe.

The new range also sees the debut of the Mondeo Hybrid, which will deliver 99g/km CO2, and a range-topping 210hp 2.0-litre TDCi engine.

fleetweet a few soundbites from a month in fleet

@Lebeaucarnews Phil LeBeau, automotive correspondent for US cable channel CNBC

71% of Japanese brand vehicles sold in the U.S. last year were built in the US – a new record high (per Japan Auto Manufax Assoc.)

@ianbremmer Ian Bremmer, political scientist & president of @Eurasiagroup

There are 54 cars for every 1,000 people in China.

They’d like a lot more.

@MotoringChat Official Twitter account for Motoring Chat, automotive news website

Hyundai’s Allan Rushforth moves to Nissan issan has announced the appointment of former Hyundai chief N operating officer Allan Rushforth as corporate vice president for global sales.

Mr Rushforth will join Nissan at its Yokohama headquarters and report to Philippe Klein, Nissan chief planning officer.

He was most recently chief operating officer and a senior vice president of Hyundai's European operations, based in Frankfurt, Germany.

“Allan's past professional experience includes running sales operations in international markets and working across cultural boundaries,” said Mr Klein. “Nissan is a company that values cultural diversity and Allan shares this and has demonstrated the ability to lead multicultural teams successfully. I believe that he is uniquely prepared to lead Nissan's global sales.”

Pull over! It's the police Huracan.

Eyes on mirrors, Italian drivers, the Polizia’s got itself a new 202mph Lambo.

@elonmusk Elon Musk, CEO and chief product architect of Tesla Motors

Just got word that the cumulative miles of the worldwide #Tesla fleet passed half a billion! (Oct 9).

@dglfrd Dave Guilford, news editor at Automotive News of Detroit

Ford & Telogis launch telematics offering

Can chief creative officer Shiro Nakamura bring "shock of the new" back to #NissanMurano after cautious Gen2?

ord and Telogis are teaming up to launch a new telematics offerf ing for commercial vehicles in Europe in a move to help fleets reduce fuel costs up to 20%, reduce their environmental impact and

@RobertLPalmer

increase driver safety.

Debuted at the 2014 IAA Hannover Commercial Vehicle Show, Ford Telematics powered by Telogis will be available to fleet customers as a dealer-installed option in selected European markets, offered through Ford’s network of specialist Transit Centers, and is warrantied and serviceable at Ford dealerships throughout Europe.

Rob Palmer, former GM design & development engineer

With 44% market share, Maruti Suzuki produces as many cars as UK (1.5 million a year) contributing 7% to Indian GDP.

internationalfleetworld.com / 09

Lower costs or higher motivation? Both!

Fleet vehicles and car pool solutions from Mercedes-Benz.

A Daimler Brand

What could be more motivating for employees than a Mercedes-Benz? To facilitate this win-win situation, we provide tailored leasing, financing and insurance conditions which also have a positive impact on running costs. Meaning your days of compromise are over. www.mercedes-benz.com/fleet

The consumption figures relate to the engines (C 180/C 200/C 250/C 220 BlueTEC and C 250 BlueTEC) available for the market Provider: Daimler AG, MercedesstraĂ&#x;e 137, 70327 Stuttgart

launch (09/2014). Fuel consumption combined: 6.0–4.3 l/100 km; combined CO₂ emissions: 140–108 g/km.

environmental news

EU sets targets for cross-Continental charging network

E

U Member States must lay out plans for a network of electric vehicle charging points by the end of 2016, under a new directive adopted by the European Parliament in September.

The directive sets out infrastructure targets for all 28 member states covering not only electric vehicles, but natural gas and hydrogen fuel cell models too, to be in place by the end of 2025.

It recommends a network of one charging point per ten electric vehicles registered in the country by 2020, at the very minimum focused on urban and suburban areas, and stipulates that there should be a common plug and standards for usage across the region. The latter is likely to be the Combined Charging System and Type 2 AC plug – already compatible with many of the European-made plug-in vehicles.

Member States must also set out plans for a “sufficient” network of hydrogen and CNG refuelling stations as part of the framework to be presented by the end of 2016, with installation to be completed by 2025.

The European Parliament will also set standards for usage, covering vehicle manuals, dealership material and the points themselves, as well as improving signage for refuelling locations and easier price comparisons with conventional fuels.

Commission vice president Siim Kallas, commissioner for transport, said: “With these new rules, the EU provides long-awaited legal certainty for companies to start investing, and the possibility for economies of scale. EU Member States requested flexibility in deploying the infrastructure. It is now up to them to develop the right national policy frameworks.”

Tesla Model S gains four-wheel drive and autonomous functions

T

esla has added a new twin-motor four-wheel drive system and driver assistance systems to the Model S electric luxury car, with the first deliveries due in December.

Similar to the drivetrain due for the forthcoming Model X SUV, this adds a second motor at the front axle, joining the single rear-mounted motor on two-wheel drive versions, and will allow the Model S to compete with four-wheel drive rivals from Audi, BMW, Jaguar and Mercedes-Benz in markets which demand the extra traction.

Dual-motor cars are available with the same choice of 60kWh and longer-range 85kWh batteries as the two-wheel drive Model S and add an extra $4,000 (€3,140) to the list price in the United States. Both produce 376hp, split equally

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between the two axles, and offer a slightly longer range than the two-wheel drive counterparts. The dual-motor range is topped by the 691hp P85D, which replaces the P85+ as the most powerful Model S, and is equipped with upgraded suspension for a sportier drive.

In addition to drivetrain upgrades, the 2015 Model S adds new technology which will enable some driving functions to be automated. All cars will feature forward-looking cameras and 360-degree ultrasonic sensors, and Tesla says it will add ‘Autopilot’ functions such as lane keeping, active cruise control and the ability to manoeuvre out of a garage, through future software updates which will be downloaded over the air to the car’s dashboard.

For the latest EV news, visit evfleetworld.com

Smart grid technology tested in California C

armakers and utility firms have conducted the first test of a technology which will allow plug-in vehicles to respond to a request from energy providers to stop, then restart charging, aimed at reducing demand on the electrical grid.

Developed by Sumitomo Electric, the system was given its first full test in Sacramento, California in October, in partnership with the Electric Power Research Institute. The technology has an opt-in function, allowing customers to decide whether they want to allow the car to temporarily stop recharging. Those who do are offered incentives, including the ability to recharge at a location of their choice.

Carmakers involved comprise Ford, Honda, BMW, Chrysler, GM, Toyota, Mercedes and Mitsubishi whilst utility firms involved include DTE Energy Company, Duke Energy, CenterPoint Energy Inc, Northeast Utilities, Southern California Edison, Pacific Gas & Electric Company, San Diego Gas & Electric, Commonwealth Edison, Austin Energy, ConEdison and CPS Energy.

UK hydrogen infrastructure gets €13.8m boost

T

he Office for Low Emission Vehicles (OLEV) has announced a €13.8m investment towards the development of a hydrogen fuel infrastructure in the UK in a move to diversify the range of low emission vehicles available.

Announced by minister of state for business and enterprise, Matthew Hancock MP, while visiting Honda, Nissan and Toyota in Japan, the investment will see the UK’s hydrogen infrastructure grow to up to 15 refuelling stations nationwide.

Joint-funded by government and industry, the project will allocate £7m (€8.8m) to install and run up to seven new customer-facing hydrogen refuelling stations, £2m (€2.5m) to upgrade existing hydrogen refuelling stations and the remaining £2m (€2.5m) will fund the acquisition of around 40 hydrogen-fuelled vehicles for the public sector.

The investment in the hydrogen fuel infrastructure is part of a wider £500m (€630m) government funding pot, which will be invested between 2015 and 2020, in the UK’s drive to become a global leader in the development and take-up of low emission vehicles.

EV in numbers

65%

Share of Britons who would consider an alternatively fuelled car in the next two years.

SOURCE: Contracthireandleasing.com

in brief NRG eVgo helps Sony Pictures staff top up at work Sony Pictures Entertainment has installed a network of 60 NRG eVgo charging points at three locations in Southern California, offering workplace top-ups for employees.

The installation supports an employee incentive programme established in 2008.

First of 50 Norwegian rapid chargers activated The irst of 50 new rapid charging points are now live at nine selected KIWI discount stores across Norway. A collaborative project between KIWI, Nissan, Renault and Volkswagen, the network offers an 80% charge in less than half an hour for compatible vehicles, and is operated by Norwegian utility company Fortum.

Eurotunnel cuts CO2 with EVs A leet of 18 electric vehicles is to be deployed at the Eurotunnel site in Coquelles, France, as part of ongoing attempts to reduce the carbon footprint of the channel crossing. Eurotunnel Group will add seven electric cars to its existing leet of 13, while facilities management partner ISS will replace 11 of its 25-strong leet with Renault ZOEs.

EVtweet of the month @NissanLEAFUK Nissan UK official LEAF account

We sold 850 #NissanLEAFs during Sept, the largest volume of LEAFs ever sold in 1 month in a European market. #EV #recordbreakers

45g/km CO2 emissions for the Passat GTE plug-in hybrid, launching in 2015.

SOURCE: Volkswagen

internationalfleetworld.com / 13

business news

Major European fleets recognised for road safety achievements

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leets including Arriva, Unilever and Bolk Transport have been recognised for their major commitment to fleet safety in the 2014 European Transport Safety Council (ETSC) PRAISE Awards.

Announced at an event in Brussels, the winners comprise Arriva, Denmark in the large company category, the Hellenic Air Force, Greece in the public authority category, whilst Bolk Transport from the Netherlands scooped the award for small or medium-size enterprise. Unilever, Poland and the Port of Antwerp both took the highly commended awards.

Antonio Avenoso of the ETSC said: “We hope these shining examples will inspire companies and public authorities across Europe to see the benefits road safety management programmes can bring.”

in brief US fuel economy at all-time high New US vehicles achieved an alltime-high fuel economy in 2013, the Environmental Protection Agency announced, helped by carmakers’ rapid adoption of more ef icient technologies.

The report found that 2014 vehicles achieved an average of 9.8l/100km – a 2% improvement over 2013 and an improvement in ef iciency of nearly 23% since 2004.

Daily wins Van of the Year

BCA to float on stock market

ritish Car Auctions (BCA) has announced its intention to float on the B London Stock Exchange in a move to increase penetration in existing markets and expand into new ones.

The firm, which is owned by private equity firm Clayton Dubilier & Rice (CDR), is intending to proceed with an initial public offering in November to raise at least £200m (€254m).

The new shares would be sold to institutional investors and used to repay debt and would help position the company for the next phase of its development.

GreenRoad & Zonar team up

reenRoad and US-based telematics provider Zonar have signed an agreement that will see GreenRoad’s real-time driver feedback and G driver behaviour monitoring application offered on the 2020 mobile tablet.

The GreenRoad application provides Zonar customers with driver behaviour tools that help increase fuel economy, safety and fleet efficiency.

Analytic tools will also help managers identify drivers at risk or in need of training, potentially hazardous areas and problematic safety trends.

Iveco’s third-generation Daily LCV has won the International Van of the Year Award 2015, beating the Mercedes-Benz Vito and Ford Transit.

The Daily won by a margin of 17 points from the second-placed Mercedes-Benz Vito, also beating the two-tonne Ford Transit into third place.

ALD Automotive expands into Bulgaria and Kazakhstan ALD Automotive has branched out into Bulgaria and Kazakhstan as part of its programme of international expansion.

The irm has announced the opening of two new subsidiaries in Bulgaria and Kazakhstan, which it says will bene it from the common back of ice and front of ice systems put in place within ALD Automotive Group to ensure the same level of quality across the set-up for all its customers.

Diesel Card Ireland expansion

ETSC publishes van risk report he European Transport Safety Council (ETSC) has published a new T report on Managing the Road Risk of Van Fleets in a move to help commercial fleets tackle vital safety issues.

The report – available on the ETSC website – has been published to give an overview of van safety issues in Europe, and to encourage and enable van fleet operators to navigate European legislation and apply good practice measures for their drivers and businesses.

14 / internationalfleetworld.com

Diesel Card Ireland is moving into larger of ices in Derry to accommodate a period of sustained growth and to allow for a further recruitment drive.

The fuel card provider, which part of Radius Payment Solutions Ltd, one of Europe’s largest fuel card management companies, has a network of over 1,100 illing stations across the country, including 163 in Northern Ireland.

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SPOTLIGHT Land Rover Discovery Sport

Disco-tech Land Rover’s Freelander replacement offers style, quality and low emissions to the compact SUV sector, says Steve Moody.

DESIGN Although a replacement for the Freelander, the Discovery Sport’s progressive new design approach will have more in keeping with the rest of the new Discovery. A 5+2 seating configuration means it will be much larger inside than the current car.

The cabin features high-quality materials and a strong vertical centre console graphic to reflect the premium design of the exterior, while the core Discovery value of versatility is evident everywhere.

DRIVING Supple long-travel suspension, and innovative rear axle ensures the Discovery Sport should be comfortable, refined and rewarding to drive on-road, while retaining the breadth of all-terrain capability for which Land Rover is world-renowned. In fact, with approach, departure and breakover angles of 25, 31 and 21 degrees respectively, Terrain Response technology, and the ability to wade to 600mm, Discovery Sport offers class-leading capability in all conditions, Land Rover claims.

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ENGINES From launch, the new Discovery Sport will be equipped with a 2.2litre SD4 turbodiesel engine producing 190 PS featuring stopstart technology, high-pressure direct injection, low-friction internal components and smart regenerative charging for outstanding performance and economy. Both 9speed automatic and 6-speed manual transmissions are available.

Later in 2015, a highly efficient two-wheel drive eD4 turbodiesel engine will join the range with CO2 emissions from just 119g/km.

PRICING Pricing will start from around â‚Ź30,000 for the eD4 variant later in 2015 and â‚Ź34,600 (SD4) from January 2015.

FLEET FACT Discovery Sport has autonomous emergency braking up to 80kph as standard.

WHAT WE THINK...

The new Discovery Sport is a classy new entrant to the user chooser market, and while not likely to be as iconic as the Evoque, offers more practicality and versatility than its Range Rover sibling, at the same price point. SM internationalfleetworld.com / 17

RVs

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

RVs up and rental rates down Forecasted residual values are on the up across Europe with common optimism in the future economy and used vehicle market, reckons Experteye.

D

uring the last 12 months, leasing companies in both the UK and Portugal have reported a +4.8% improvement in the forecasted residual values built into contract hire rentals. In Italy, RVs are up by +3.1%, Spain +2.6%, France +0.8% and Germany +0.4%.

In the latest quarter, from July 2014, the upbeat mood remains, albeit to a lesser degree. Portugal is reporting a +2.3% rise in its forecasted residual values, Spain and Italy +0.8%, the UK +0.4%, France +0.3% and Germany +0.1%.

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

Overall the picture is good news for fleet operators across Europe. Rental rates have come down in every country surveyed by Experteye in the last year, the largest drop being in Portugal where prices fell by -5.3%.

The second largest annual reduction is in Spain, with a -3.8% drop. In France rentals are down by -3.3%, in Italy -3.2%, the UK -0.9% and Germany -0.4%.

This quarter, only Italy has seen a slight +0.3% increase in rental costs, whereas in all other nations they have remained static or come down.

Market summaries – 3 and 12 months to September 2014

FRANCE: French leet operators have enjoyed a -3.3% saving on their rentals during the last year, with a -2.1% drop reported since July 2014.

Forecasted residual values have improved, albeit by only +0.8% for the year and +0.3% this quarter. France, however, has seen its servicing, maintenance and repair budgets increase by +1.6% since October 2013 and +1% in the last quarter; whilst relatively small this is the largest SMR increase of all nations surveyed.

GERMANY: Germany remains relatively static with no change in its average contract hire rentals since July this year and a small -0.4% reduction in the last year. SMR budgets fell by -1.6% in the last year, but crept up by +0.4% for the quarter. Forecasted RVs have seen marginal shifts with a +0.4% improvement since last October and +0.1% in the last three months.

ITALY: Italian SMR budgets dropped by a sizeable -11.4% in the last 12 months, and -3.4% in the recent quarter. Forecasted RVs have gone up by +3.1% since October 2013, with a +0.8% rise since July this year. Monthly rentals dropped by -3.2% in the last year yet, perhaps surprisingly, have gone up by +0.3% in the last three months.

PORTUGAL: Portugal shares the UK’s optimism in the future used vehicle sector with a +4.8% improvement in its forecasted RVs since October 2013. In the last three months they have risen by +2.3%. SMR budgets are down for both the year (-4%) and the quarter (-0.6%), with monthly rentals dropping by -5.3% in the last 12 months and by -1.7% in the last quarter.

SPAIN: Forecasted RVs are up by +2.6% in Spain in the last year, with a +0.8% increase since July 2014. SMR budgets are up for the year (+0.6%) but down for the quarter (-1.4%). Rental rates fell by -3.8% since October 2013 and by -1.8% in the last three months.

UK: Con idence remains strong in the UK, with forecasted RVs climbing by +4.8% in the last 12 months. In the latest quarter they increased by a less dramatic +0.4%. SMR budgets have seen relatively small movement with a +0.8% increase since October 2013 and -0.2% for the quarter. Rentals dropped by -0.9% since October last year and -0.8% since July this year.

CHANGES IN RV FORECASTS, SMR COST FORECASTS AND LEASE RENTALS Forecast Service, Maintenance Current Rental Rates and Repair Costs 3-month change 12-month change 3-month change 12-month change 3-month change 12-month change +0.3% +0.8% +1.0% +1.6% -2.1% -3.3% +0.1% +0.4% +0.4% -1.6% +0.0% -0.4% +0.8% +3.1% -3.4% -11.4% +0.3% -3.2% +2.3% +4.8% -0.6% -4.0% -1.7% -5.3% +0.3% +2.6% -1.4% +0.6% -1.8% -3.8% +0.4% +4.8% -0.2% +0.8% -0.8% -0.9% Forecast Residual Values

France Germany Italy Portugal Spain UK

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

• Twelve-month comparisons show change since October 2013.

• Three-month comparisons show change since July 2014.

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• 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.

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MOTOR SHOW Paris

Pick of Paris Concepts and new models kept the IFW team busy at the recent Paris Show. John Kendall reports.

Divine DS Divine won’t go into production but it’s the same length as a DS4 and signals what to expect from DS in future. This includes the double wings on the grille, destined for all future models, while the “technology meets Paris fashion” interior with interchangeable trim hints at what might appear.

Audi TT Concept Five doors and a longer wheelbase, plus a 400hp variant of the 2.0-litre TFSI petrol engine to power it, formed part of the TT Sportback concept at Paris. It’s inspired by the A5 and A7 Sportbacks and is 290mm longer than the coupe. High strength steel and aluminium help to keep weight low.

Fiat 500X 500X is the latest 500 model and as the name suggests, it’s a crossover with choice of two and four-wheel drive.

Engines will be familiar from the latest Fiat range – three diesel and four petrol engines in Europe. Sales are due to begin next year.

BMW X6 BMW promises a December launch for the latest X6, with fuel consumption cut by up to 22%. The X6 M50d boasts no fewer than three turbochargers for the sixcylinder engine. BMW quotes CO2 emissions between 137g/km and 225g/km. X-drive all-wheel drive is standard and equipment includes eight-speed Steptronic transmission and BMW Connected Drive.

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Ford S-MAX No additive will be needed for the Euro 6 diesels when the new Ford S-MAX goes on sale next year, which may help fleet costs. The car will be bristling with driver assistance systems, including the Front Split View camera, LED headlamps and autonomous emergency braking across the complete speed range.

Honda HR-V

Infiniti Q80

Hyundai i20

550hp with 5.5l/100km is the target for Infiniti’s latest concept, the Q80 Inspiration, a four-door premium saloon with a hybrid drivetrain. The revised 2015 Q70 for Europe also made its debut at the Paris Show, equipped with a new 170hp 2.2-litre diesel engine from Daimler.

Honda was busy in Paris with a prototype Jazz and HR-V as well as a facelifted CR-V. HR-V concept showed a coupe style crossover and Honda claims a centrally mounted fuel tank will maximise cabin space. Honda will use its Magic Seat concept to offer versatile seating.

Hyundai will be joining the list of manufacturers offering a turbocharged 1.0-litre petrol engine next year in the new i20 with a 120hp direct-injection engine, joining the range of small petrol and diesel engines at launch. The i20 has been designed in Europe and is longer, wider and lower than its predecessor.

Jaguar XE The smallest Jaguar is also the lightest according to the company, thanks to extensive use of aluminium in the body shell. Diesel power delivers 163hp and 180hp from the new 2.0-litre Ingenium engines, offering 3.8l/100km and 99g/km CO2 emissions potential.

New All Surface Progress Control promises optimum traction in poor weather.

internationalfleetworld.com / 23

MOTOR SHOW Paris

Land Rover Discovery Sport

Kia Sorento

Based on the front half of the Range Rover Evoque, the new Land Rover Discovery Sport takes Land Rover into new territory with its lightweight ‘5+2’ seat Discovery Sport.

Second row sliding seat offers almost as much knee room as a Range Rover. Expect new ‘Ingenium’ engines soon.

Kia’s large five/seven-seat SUV is completely new, claiming improved ride, handling and crash safety, a new approach to interior design and lower noise levels. It is longer, lower and wider than before. The 2.2-litre diesel is expected to account for most sales in Europe.

MINI five door

Mazda MX-5 The new MX-5 is shorter, lower and wider than the outgoing model, but still offers comfortable cockpit space for adults. Power will come from a 1.5-litre petrol engine, but Mazda is giving few details away, although its SKYACTIV technologies will optimise performance, economy and reduce weight.

Opel Corsa As expected, the fifth generation Corsa gets the new three-cylinder turbo petrol engine first seen in the ADAM and offering 90hp or 115hp, with CO2 emissions as low as 100g/km. More comfort and better handling are promised, while Corsa also gets the GM Intellilink system first seen in the ADAM.

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The MINI five-door Hatch adds a fifth seat by extending the wheelbase of the three-door model by 72mm. MINI sees the car as a significant opportunity in the corporate sector. Power will come from MINI’s range of three and four cylinder petrol and diesel engines with CO2 emissions as low as 92g/km.

Renault Espace Derived from the Initiale concept a year ago, the new Espace makes the transition from MPV to crossover, offering five and seven seat versions. Standard equipment includes four-wheel steering, LED lighting and downsized 1.6-litre turbocharged petrol and diesel engines. Renault’s Multi-Sense system offers four driving modes, Eco, Comfort, Neutral and Sport.

SEAT Leon X-Perience The Leon X-Perience gives SEAT a crossover model with permanent four-wheel drive, but driving the front wheels most of the time. Based on the ST estate model, the X-Perience is powered by the Volkswagen Group 2.0TDI engine with 150hp or 184hp. DSG dual-clutch transmission is standard with the 184hp engine.

Suzuki Vitara Skoda Fabia The latest Fabia introduces crisper design than its predecessor and more interior space, even though the car is shorter than its predecessor. Entry-level models get the Citigo 1.0-litre three-cylinder 60hp petrol engine, with 1.4-litre diesels offering CO2 emissions down to 90g/km.

Stop/Start comes with all models.

The new Vitara will offer two and four-wheel drive models with CO2 emissions expected between 106g/km and 138g/km. Power will come from either a 1.6-litre petrol or 1.6-litre diesel engine, both producing 118hp.

Five-speed manual and six-speed automatic transmissions will be available. Driver assist systems include autonomous emergency braking.

Volvo XC90 Volkswagen Passat GTE The new Passat has only just made an appearance and Volkswagen introduced the GTE plug-in hybrid at the Paris Show, combining a TSI petrol engine and electric drive with a total power output of 218hp. Electric range is a claimed 50km with equivalent CO2 emissions of 37g/km.

Volvo’s new XC90 seven-seat SUV made its public debut at the Paris Show offering bold new design and touch-screen control for many functions. New two-litre petrol and diesel engines are on offer, with a flagship T8 hybrid petrol model offering a combined 400hp and approximately 60g/km CO2 emissions. Extensive new safety equipment includes ‘Safe Positioning’.

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INTERVIEW Enrico Atanasio, JEEP

Jeep targets premium luxury sector Jeep is on the rise and will play an important role in the Fiat Group fleet strategy as European fleet boss, Enrico Atanasio, tells Hugh Hunston.

J

eep is going to play an increasingly significant role within Fiat Group Auto’s multi brand fleet strategy with the new Italian-built Renegade small SUV described as a game-changer

by Enrico Atanasio, head of fleet for Europe, Middle East and Africa.

Speaking on the eve of the fleet launch of Renegade, designed to compete particularly with Skoda’s Yeti and MINI’s Countryman Atanasio, formerly head of Fiat India, said: “Jeep in general, and Renegade in particular, are moving from lowvolume niche status to premium luxury and with that change can take on a role within the international fleet sector. That is why 170 leading European fleet executives and managers are with us in Italy.”

With the Renegade, sharing its basic structural architecture with Fiat counterparts and built at the Melfi factory, being introduced across mainland Europe by the end of this year, Atanasio claims that Jeep will play a complementary, not standalone role, within FGA’s brand portfolio.

He explained: “We can build on the new Cherokee’s success, involving queues lasting several months for businesses in certain markets to have test drives. That is a new and welcome problem for Jeep. Sourcing Renegade from Italy gives us supply flexibility in terms of demand and logistics. For the first time Jeep has the potential to provide real fleet volume within the wider FGA family.”

FGA fleet executives, said Atanasio, faced the challenge of gaining vital onthe-road visibility and recognition across Europe, initially through “carefully chosen daily rental exposure”.

That in turn should lead to establish-

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ing the two and four-wheel-drive small SUV on corporate selection lists, which he conceded could take between six and 12 months to achieve as business policies and replacement cycles rotate and new contracts open up.

Adequate demonstration fleets would be required, with dealers playing a central role and the quality of test-drives, including conversion to fleet sales, being monitored. This results in rewards or penalties. Potential customer companies will be qualified in terms of their fleet requirements and lengths of test loans, while user choosers and smaller businesses provide a specific target sector.

Although Jeep has highlighted the Renegade’s role as a genuine off-road SUV in an expanding market sector where other brands do not seek, nor have 4x4 heritages, Atanasio admitted: “Having the best rough-terrain capability is not that relevant in fleet and I don’t expect many companies or employees to choose 4x4 Renegades to go off-road on the way to and from work. It is about real and perceived safety, high driving position, good visibility and all round security. Within Europe that duty of care element is becoming increasingly part of the choosing and buying processes.”

But he emphasised that public utilities, and organisations requiring access to isolated areas, would also be covered as an expanding Jeep range develops within the joint fleet approach.

Atanasio explained that the Renegade, developed on a trans-Atlantic engineering and styling basis, would stand up to: “logical cost benefit analysis and calculation with some models below 120g/km.

Even four-wheel drive versions can oper-

ate with front-wheel drive only without significant CO2 or fuel consumption penalties, which supports our case in Alpine territories, where people need to do business all year round. But in normal conditions 4x2 remains the most relevant choice.”

Renegade, Cherokee and from the first half of 2016 a new US-built C-sector SUV to replace the Jeep Compass, will fit into the multi-brand business car sales approach. Atanasio said: “We can sell a Fiat Ducato van to a medium-sized company alongside the growing choice of Jeeps for staff and management. Plus if they need reward cars then there are Alfa Romeos. It makes sense to do that rather than have people from the individual brands tripping over each other.”

FGA’s international database, he added showed there are few companies who don’t use a variety of cars and vans.

While targeted daily rental deals might kick-start the Renegade programme and gain recognition Atanasio said FGA Capital would underwrite longer-term Jeep contract hire and leasing business.

Jeep’s product range will grow further in 2017 with a seven-seater Grand Wagoner, which could be aimed at established European premium rivals.

Atanasio said producing the Renegade in Italy helped the business case and the joint venture between Fiat and Jeep engineers also involved the American brand benefiting from state-of-the-art diesel engines, markedly improved fit and finish plus factors like a nine-speed automatic transmission.

He added: “Jeep until recently has been a limited niche brand with limited product offering and relevance. But with Renegade and Cherokee there is no

“With Renegade and Cherokee, there is no reason to exclude Jeep from choice policies on a rational basis.” reason to exclude Jeep from choice policies on a rational basis.”

More specialised Jeep models could also play a role in the FGA approach, which provides cars, including Fiat 500 Abarths, to the Hertz Collection programme where customers want particular luxury or performance models.

Atanasio said the term crossover could apply to the Renegade’s potential fleet appeal, by taking conquest business from conventional C-sector hatchbacks or attracting customers moving up from smaller nominal SUVs like Renault’s Captur, Nissan’s Juke and Peugeot’s 2008.

Jeep, he maintained, shared Land Rover’s brand status as a global seller of capable 4x4 models and had also moved pragmatically, particularly in pursuit of fleet business, towards twowheel-drive variants.

He said: “Jeep is genuinely inter-continental and rare in earning global American automotive brand recognition and status within the business community. It has evolved to be less raw, less utilitarian and more upmarket with the major benefit of our diesel technology. Renegade is a game changer and there is no reason why the larger, compact SUV we are planning, which will be unveiled during CEO Sergio Marchionne’s May 6 corporate plan conference, cannot challenge the Range Rover Evoque.”

It is not known if FGA UK’s fleet slogan for Jeep ‘Business, not as usual’ will be applied across other European or international markets. But Jeep plans to import the new Renegade to northern America, including the larger engined, 2.4-litre, 185hp Tigershark version, which is also being sold in Russia, the Middle East and South Africa.

internationalfleetworld.com / 27

MANAGEMENT Risk Management

Cultural change Driver training needs to be part of a wider corporate safety culture, says Steve Banner.

Old habits One of the big drawbacks of driver training is the tendency of many trainees to revert to their bad old habits during the months following completion of the course.

“It appears logical to assume that bettertrained drivers will have fewer collisions but this is not the case,” says Zurich Australia. That is the conclusion it has come to after examining evidence from customers who have introduced drivertraining programmes as the main means of reducing a leet’s exposure to risk.

“They often enjoy an initial reduction in the claim rate but after 12 to 18 months it is usually back to exactly where it was before the training was implemented,” the company says.

Such a safety culture needs to address issues such as fatigue management, placing company limits on maximum continuous driving times and obliging drivers to take a 15 to 20 minute break after, say, two hours of continuous driving.

In some countries of course legislation places strict limits on how long individuals may remain at the wheel without a break and on the length of their working day, especially if they are driving heavy trucks. The same countries are likely to have laws in place that impose a general duty of care on employers to provide a safe working environment; New Zealand’s Health and Safety in Employment Amendment Act 2002 is a good example.

On-road safety culture

Telematics monitoring

The challenge therefore for leets is to monitor the behaviour of their drivers to ensure this does not happen and to ind ways of continually reinforcing the message the course they attended tried to impart. What operators must do at the same time however is develop an onroad safety culture that permeates their business; and that’s not easy says Zurich Australia.

“It can take years to introduce, even in organisations that have a well-developed safety culture in their factories and of ices,” it observes. “But if you don’t have the appropriate safety/operational balance then you’ll have better-trained drivers operating in an unsafe working environment who are still likely to be involved in collisions.”

One route pursued by a growing number of leets worldwide is to install an onboard telematics-based package that allows them to see if drivers are, for example, speeding or constantly braking or accelerating too harshly. Such on-highway conduct is likely to lead to an accident sooner or later but if managers are aware of what is happening then they can take the matter up with the individuals concerned; and possibly arrange some remedial training.

It is a route that is being pursued in Oman by PAEW, the Public Authority for Electricity and Water.

With some 400 vehicles and serving a population of more than 1.5m, PAEW was becoming increasingly concerned about the number of accidents its

28 / internationalfleetworld.com

¡

Slowly does it...

An on-road safety culture can take years to introduce, even in organisations that have a welldeveloped safety culture in their factories and offices.

internationalfleetworld.com / 29

MANAGEMENT Risk Management

Cultural change ¡

drivers were having thanks in many cases to their irresponsible behaviour behind the wheel.

It turned to MiX Telematics and Fleet Management Systems International to help it deal with the problem. As a consequence a programme to install FM Tracer and FM Communicator was started in mid-2013.

Driver education MiX Telematics helps indentify drivers who speed etc, who can subsequently be coached to improve their driving.

Drivers who speed, constantly hit the brake pedal too hard and forget to put their seat belts on can now be identi ied and subsequently coached to improve their behaviour. Satellite tracking means PAEW knows where they are and the technology used means it can communicate with them all the time.

The package that has been installed and the management follow-up that has accompanied it has undoubtedly resulted in a fall in the number of accidents, says PAEW; something that was clearly seen within the irst three months after the rollout began. There have been other bene its too including falls in maintenance costs and fuel consumption.

Driver feedback Several thousand miles away in the USA, LeFleur Transportation has teamed up with GreenRoad to help ensure that its drivers always drive smoothly and safely.

30 / internationalfleetworld.com

The nature of the Ridgeland, Mississippi-based leet’s work makes this particularly important. It operates around 450 cars, people carriers and minibuses in order to provide non-emergency transport to people who may have mobility dif iculties on behalf of a variety of government agencies and private organisations US-wide.

Clients include the Texas Health and Human Services Commission which has recently selected LeFleur to manage the non-emergency transport needs of Medicaid clients across 71 counties. Medicaid is a means-tested health care programme for people with low incomes jointly funded by the USA’s States and Federal government.

LeFleur has opted for a dashboardmounted unit from GreenRoad that shows a green light if the driver is driving sensibly, a yellow one if he or she is starting to take a few risks and a red one if the driving is potentially dangerous.

The unit’s indings are recorded and can be downloaded and analysed by the management team. Areas that require improvement can then be discussed with the driver.

Measurable improvements LeFleur began having the system installed in 2008. It has subsequently seen 75% of drivers show a measurable improvement in on-the-road behaviour, reducing the leet’s exposure to risk by 77%.

There has been a 71% fall in drivers showing a yellow safety score and a 100% switch away from red safety scores to either yellow or green.

“It’s given us the ability to identify our high-risk drivers and provide them with targeted training,” says LeFleur director of safety and human resources, John Kubala. “As a consequence we’ve improved safety and the quality of the service we provide and reduced costs and fuel consumption at the same time.”

Camera systems Another means of monitoring in-vehicle driver behaviour is by mounting a camera on a dashboard or windscreen. It is an approach favoured by Marsh Risk Consulting (MRC) in the USA which works with DriveCam to provide clients with the necessary technology.

DriveCam says that by combining sight and sound, expert analysis and driver coaching, it has managed to cut vehicle damage and personal injury costs by 50% in upwards of 500 private and public sector leets.

The camera records events such as abrupt stops, sudden turns, rapid deceleration and collisions. The recording is uploaded to DriveCam’s risk analysis centre which then reviews what has occurred and considers why.

Its indings can then be used to help target driver training. They can also be used to identify ways in which exposure to risk can be eliminated.

The camera does not record everything that happens, MRC stresses.

“It is an exception-based recorder that only saves the critical 12 seconds that elapse when something unusual or concerning happens with the vehicle,” says a spokesperson. “It is not ‘Big Brother’.”

Valuable evidence

Many leets have yet to overcome driver resistance, especially in circumstances where employees are allowed the private use of vehicles as part of their remuneration package. Few company car drivers are likely to be happy to have their activities scrutinised by a camera, no matter how many safeguards are built in; and workplace surveillance, however well meaning, can fall foul of privacy legislation in some countries.

In these circumstances one way of ensuring drivers keep observing the training mantra they have been taught is to use online courses.

ucts and its method of engaging and challenging drivers are both unique,” says ARI president, Carl A Ortell.

Elsewhere, VVCR of Rijssen in the Netherlands is now owned by the UK’s Automobile Association. It too delivers online driver training.

But which modules should a driver study? Based in North America, AlertDriving offers Hazard Perception Evaluation, an online predictive behaviour analysis tool designed to identify driver risk in six core competency areas.

Drivers are evaluated on their ability to identify dangerous driving situations and correctly answer a series of questions on safe driving. They are then automatically assigned speci ic, targeted training modules to address any de iciencies.

AlertDriving has recently introduced a more advanced version called Hazard Perception 360 that can be employed on iPads, laptops and PCs. Said to be capable of pinpointing a driver’s de iciencies and risk rating more accurately thanks to an enhanced scoring algorithm, it was available in 9 countries at the time of writing.

They include Italy, the Czech Republic, Argentina, Brazil and Russia as well as the USA. More countries are in the pipeline.

“Hazard Perception 360 can be used on mobile devices without the hassle of app stores or installations,” says AlertDriving marketing vice president, Matthew Latreille.

Online training

Training through games?

It uses e-learning to address the training needs of grey- leet drivers who do no more than 1,500 business miles annually and are therefore classed as low-risk. They are nonetheless expected to complete six online modules over 80 to 90 minutes that cover legal requirements, preparing a vehicle and themselves for a journey, advanced driving skills and what to do in the event of an accident or a breakdown.

What is more, they are tested to ensure they have understood and taken onboard everything they have seen and heard.

Any ongoing use of online training has to be accompanied by some sort of mechanism to ensure that drivers view and complete the courses and learn something from them.

None of the foregoing should be taken to imply that physical on-the-road training for leet drivers that involves them spending half a day or a day in the company of an experienced trainer is no longer necessary. It can be of value, but only as part of a structured package that involves the targeting of training needs; and only if it is supported by a leet culture that genuinely makes road safety a top priority.

Their potential has not been lost on Mount Laurel, New Jersey-based leet services provider ARI. Earlier this year it acquired Drive leet, which offers a wide variety of web-based training modules covering everything from defensive driving to preventing distracted driving. Some of the newer ones use highde inition computer-generated imagery to simulate possible driving challenges.

“We believe Drive leet’s suite of prod-

Another way of delivering online training is being offered by Arval with Drive Challenge. A game that can be downloaded onto a smartphone, it is designed to show players how important responsible driving is and to encourage them to acquire good road habits.

A number of leets have made online training a central plank of their ongoing training programme.

Among them is the Republic of

“Any ongoing use of online training has to be accompanied by some sort of mechanism to ensure that drivers view and complete the courses and learn something from them.”

The evidence garnered could prove invaluable if a defence has to be mounted against subsequent legal action, and the mere presence of a camera could make it less likely that a staged accident will occur. A growing problem in some countries, it involves a vehicle deliberately pulling out in front of somebody to cause a collision that will then be the subject of a fraudulent injury claim. A fraudster is likely to think twice about such a manoeuvre if he fears it might be ilmed.

While in-vehicle systems such as these have been implemented extensively worldwide by commercial vehicle and passenger transport leets, they are not so widely seen in company cars.

Driver resistance

Ireland’s Bord Gais Networks. In the process of changing its name to Gas Networks Ireland at the time of writing, it is responsible for developing, operating and maintaining a 13,500km-long natural gas pipeline network and serves over 657,000 customers.

Grey fleet training

internationalfleetworld.com / 31

INTERVIEW Alain Visser, VOLVO

“All-new XC90 is a clear statement that we are moving up in the premium area.”

Alain Visser

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Part 1

New XC90 to boost Volvo fleet business?

Volvo Senior Vice President Marketing, Sales and Customer Service, Alain Visser, tells John Kendall about the new XC90, targets, European performance and the Chinese market.

T

he new XC90 made its public debut impact sales? “Our fleet business is very at the Paris Show, replacing the different, according to market,” says model that has been on sale since Visser, “The UK is one of the biggest fleet 2002. It introduced many new safety markets in the world from a percentage features and is built on the company’s point of view and we have traditionally new scalable product architecture which had a very strong fleet position there. On will be the building block for new models the other hand we don’t traditionally due in the foreseeable future. have a very strong fleet position globally, This has helped to lighten the car by so we have a lot of potential to grow in around 150kg compared with its prede- the fleet business. We believe that this cessor. With new petrol and diesel car will give us some opportunities. You engines too, it adds more fleet appeal to could say that this car touches a very the package. specific sub-segment of fleet business – Just as the original XC90 opened up that’s obviously the user-chooser and new markets for Volvo, the new model is that for us is absolutely key.” sure to awaken interest from new customers. IFW caught up with Senior Vice President Marketing, Sales and Customer Service, Alain Visser at the Paris Show. What impact does he expect the new car to have? “For us, it’s got dual implications,” he reckons, “I think the first one is the brand. It’s a clear statement that we are New XC90 crucial to Volvo’s fleet success moving up in the premium area. That’s also why we have this unique display here in Paris with one Looking at its European business, car on the stand, it’s a bit like jewellery, a Visser says that he now sees a softening brand statement for us. of the downward trend that has been “Then the second element from a busi- seen in Europe since 2008. “We see more ness point of view is volume. It’s a big stabilisation in the European car indusglobal segment, bigger in some markets try, even seeing a slight increase in some than others, but overall it’s an important of the markets,” he observes. “Without segment. We currently sell 450,000 to wanting to be over-optimistic, we see 470,000 cars a year and we plan to sell some light at the end of the tunnel. The around 80,000 XC90s in an average year. question is, is that going to remain? We This already shows how important this are obviously very concerned about the vehicle is to us.”

Russian situation and how far that could Turning specifically to fleet business, affect the overall European situation. I how does Volvo expect the XC90 to think it’s fair to say that after six years of

down trends, we see a slight recovery.

“When we look at our performance in Western Europe, we see a volume growth that goes beyond the slight industry recovery. Our market share is improving, we’re doing better in the key markets, which for us is the UK and Germany. We’re also seeing recovery starting in other markets including France and improvement in Southern Europe – Spain and Italy.

“Whether you consider Russia is part of Europe or not, Russia is down, our performance in the Russian market is significantly up, but the volume is down because the market is so down. “What will happen in Russia?”, is for us the biggest question mark globally.”

Volvo’s core fleet business is based around the V40, S and V60 and XC60.

“We see that across the globe,” says Visser, “In some markets, like the US, it tends to be the V60 and XC60 and we are improving our penetration levels in fleet and we have a new Vice President Fleet, Andrew Sellars, who is re-shaping our fleet strategy, which is something that I think is going to help us a lot.”

Volvo is now a Chinese-owned company, under parent Geely, with potential to open up the Chinese market to the company. According to Visser this is very much part of the plan to step up Volvo’s global sales: “I would say China is key for us and the biggest part of our growth plan. If you compare our volume today with our planned volume of 800,000 cars, the step up in China is moving from 60,000 last year to 80,000 this year to 200,000 cars. China is already crucial and this year, will be our biggest market.”

internationalfleetworld.com / 33

FLEET FOCUS Spain

Viva EspaĂąa The Spanish economy is still recovering from the 2008 financial crisis but prospects are looking good in the car leasing sector, reckons John Kendall.

34 / internationalfleetworld.com

S

pain was the 11th largest producer of passenger cars worldwide in 2013 with significant production by the Volkswagen Group, mainly through its SEAT subsidiary, although production of other brands, notably Audi and Volkswagen also takes place. Ford and GM are among other volume car producers in the country. GM produces the Corsa and recently began production of the Mokka at its Zaragoza plant.

Ford produces the C-Max, Kuga and Transit Courier at its Valencia plant. Commercial vehicles are also produced in Spain, with IVECO producing both heavy trucks and vans.

Car market recovering slowly The 2008 European economic crisis hit Spain particularly hard, having a dramatic effect on the motor industry and Spanish domestic car sales. The Spanish Government has successfully stimulated new car sales with a succession of scrappage schemes (PIVE), providing a combination of Government grants and manufacturer discounts to retail buyers who scrap a car that is at least 10 years old. While the scheme is not applicable to business car customers, it has helped to revive domestic car sales. In the first nine months of 2014, 640,673 new cars were registered in Spain, compared with 546,435 in the same period in 2013, a 17.2% increase.

For the month of September alone, car registrations reached 57,010, compared with 45,175 in September 2013, an increase of 26.2%. In many ways, the figures are a measure of how far the Spanish market has fallen in the crisis. In 2007 Spanish car registrations reached 1,939,298. On this data, the market has more than halved since 2007, even with Government support.

Business car registrations rising Current concerns about the global economy aside, Spain seems to be making a slow but steady recovery. Jorge Bautista, CEO of Alphabet Spain suggests there are currently around 2.2 million business cars on the roads of Spain and around 20% of these are on operational leases. The suggestion of a recovery seems to be supported by improvements in the market, “It is important to emphasise that in the irst half of 2014, the operational lease sector has registered 30% of the business car registrations, with an investment of €1,500 million by acquiring almost 83,000 vehicles, that is, 17% more than in the same period last year,” says Bautista. Arval is slightly more conservative, suggesting that there are about 1.7 million business cars on the roads of Spain, a reduction of 6.4% compared with the previous year. But Arval also suggests that current growth is in line with the growth in the car market. With the business car sector growing by 17.5% in September compared with September 2013, putting the total number of new business cars in Spain so far this year at 154,672 units, up 11.6% on the same period last year.

Pedro Malla de la Heras at ALD Automotive in Spain shares the view that things are getting better. He says; “Last year, we may say the market improved, not as much as this year, but not on the company side. It decreased, but now this year, it has increased a lot.”

Arval reckons that the business car market in Spain represents around 25% of new car registrations. Jorge Bautista at Alphabet is more specific. So far in 2014, he thinks that the operational lease sector accounts for 16% of the new vehicles registered in Spain.

“If we consider just the cars that are related to the companies, it’s one third of the total new registrations,” says Malla de la Heras at ALD. “If we consider the total business car market, including car rental, I think it’s around 50% of the total market.”

Although the figures from our different fleet providers vary, it depends how the market is defined.

Volkswagen Group leads the car market There is more agreement among the companies regarding the most popular vehicle manufacturers. SEAT as a Spanish manufacturer may influence the popularity of the Volkswagen Group.

“Taking into account the last market figures, the most popular vehicle manufacturers in Spain are Volkswagen (with 4,673 registrations in September), Peugeot (with 4,543 units), Renault (with 4,519), Opel (3,982) and Ford (3,762),” says Arval. ALD agrees that the Volkswagen Group is the market leader, but also highlights the popularity of Renault and Peugeot. Malla de la Heras also points to conservatism among fleets. Those that have used one brand tend to stay with it.

Bautista at Alphabet ranks Renault as the most popular manufacturer followed by Volkswagen and Peugeot.

He is also clear about which were the most popular models on operational lease contracts in the irst half of 2014, “The Renault Megane, the SEAT Leon and the Volkswagen Polo.”

Malla de la Heras focuses on the vehicle type and notes that although SUVs are gaining in popularity, traditional saloon cars are still the most popular body style. Arval focuses on the reasons behind purchase decisions, “Really, the medium sized cars under 120g/km of CO2 are the most popular. Why? Because they are exempted from the Spanish registration tax. In other words, less purchase costs and also, lower fuel consumption. This is an important item, taking into account the high price of gasoline.”

Government incentives All three companies noted the importance of the Spanish Government PIVE and PIMA Aire incentive schemes for the market and the way they have helped to stimulate car sales. Malla de la Heras at ALD notes that, “Even though we (leasing companies) are not affected, I think it’s very good. The manufacturers are happier, then the dealers and there is a positive atmosphere around the markets that pushes us in other areas.”

EVs and hybrids growing There is also an incentive scheme for electric vehicles, as there is in many other countries. Arval noted that the exemption from registration tax for cars emitting 120g/km of CO2 meant that it is cheaper to buy into these low emission vehicles without the expense of hybrid or electric cars. “In 2013 the electric vehicle

internationalfleetworld.com / 35

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FLEET FOCUS Spain

“GM produces the Corsa and recently began production of the Mokka at Spain’s Zaragoza plant.”

¡

market was only 0.13% of the Spanish car market with a total of 925 registrations, so its importance is still discrete,” says Bautista at Alphabet. “Nevertheless, registrations are increasing this year, with 655 vehicles registered up to the end of August, of which 139 (21%) were registered by operational lease companies.”

“You need to analyse what kind of use you are going to make of the car,” says Malla de la Heras at ALD. He says that there are 30,000 hybrid cars on Spanish roads by comparison and they are a popular choice in cities. “Just to give you some figures about Spain, ALD only has 73 electric cars while we have 304 hybrids”, and he expects the number to rise, reflecting the greater number of models available in the market.

LCV demand rising Bautista at Alphabet summarises the responses from all three companies regarding the light commercial vehicle sector, “This segment accounts for 11% of all registrations. Of these, 22% are acquired through operational lease, according to the latest data published by the AER (Spanish Operational Lease Association).

The most popular models are the Renault Kangoo, Citroën Berlingo, Peugeot Partner II, Volkswagen Caddy and Ford Transit.”

Car sharing interest growing?

A weakened car market could help to stimulate demand for car sharing. Has this happened in Spain? Arval believes there is an upward demand trend, with demand having increased by five percentage points since last year, but that only 16% of Spanish companies have implemented car sharing. “Even though we offer the solution to our customers, they still think, ‘one car, one driver,’” says Malla de la Heras at ALD. “In Alphabet Spain we are seeing that our customers are becoming more involved in finding a way to optimise savings with their vehicles, by using for example car sharing services

36 / internationalfleetworld.com

or electric vehicles, as well as by redesigning their car policies and working more closely with their drivers,” reports Bautista.

Operational leasing grows The inancing of business cars tends to vary according to the size of the company, reports Arval, “It depends on the size of the company. While the Spanish SMEs go into self purchase, the big corporations – accustomed to outsourcing – are the best clients of operating leasing. More than 63% of big companies inance the leet by this method, compared with 13% of the small and medium ones.” Bautista at Alphabet sees operational leasing as an increasingly popular method; “One out of every three vehicles registered during 2014 in the business car market was undertaken using the operational lease formula.” Leasing accounts for one third of the market, according to Malla de la Heras at ALD. Modest growth expected In Spain there are around 400,000 cars on contract hire, so how is this likely to develop in the future? “We may grow by 4% this year”, says Malla de la Heras at ALD, “And maybe in the next three-four years, an average of between 3-4%. Last year, we touched bottom, now it’s time for improvement”.

Bautista at Alphabet expects similar development, “From our point of view, over the next few years the operational lease sector must continue to develop to offer more complete, lexible and innovative mobility solutions for both companies and drivers, generating its customers greater savings, control and security, the main attributes of the operational lease traditional product.”

Arval reckons the prospects look good too; “Spanish companies are definitely going to restart the cycle of investment after a period of containment, so the fleet will grow about 10% in the mid-term. In fact, 22% of big corporations plan to increase the fleet size in three years from now.”

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NAFA International Fleet Academy

Data granularity Reproduced with the kind permission of NAFA Fleet Management Association, this is the latest in a series of extracts from the International Fleet Academy Global Fleet Guide.

CHAPTER 7

Implementing DIM systems In last month’s article, we explored the concept of data information management (DIM) and how DIM systems can be used to monitor a number of different values. But how is this data collected, and what does the information demonstrate to a leet manager about the health of their leet?

Data granularity: what do you need?

‘Granularity’ is the extent to which a larger entity is subdivided. Macro systems consist of fewer, larger components than micro systems. An example of increasingly micro granularity would be a list of nations in the United Nations, a list of Eight Levels of Data all states/provinces in those nations, a list of all cities in those states, etc.

Within a DIM System there are two categories of data granularity: 1. The macro category provides international leet operators with a very high level of data as a basis for strategic decision-making.

2. The micro category begins reporting on data from a single invoice, to vehicle data within a speci ic country. This enables leet operators to steer the operational day-to-day business in the desired direction.

Within the two data categories there are eight typical levels of data information, which follow a common structure in a company. This structure may be generic. However, it is intended to illustrate the importance of data transparency in each of these eight layers.

The diagram (right) illustrates those levels and de ines the separation and cross-over point of micro/macro data granularity.

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Eight levels of data

Macro category Macro strategy – Strategic reporting strategic reporting

8 7 6

5

Micro –Microstrategy category operational Operational reporti reporting

4

3

2

1 els Lev

The rationale behind the eight levels of data granularity is clearly identifiable: • GLOBAL – International leet decision-makers have the ability to retrieve full transparent data on leet costs and dynamics. This high level reporting will be the basis for strategic decision-making and will create easy benchmarking across regions and countries, enabling the global leet operator to steer and optimise the leet from the top down. This ultimate level is still a vision for most organisations but will become more important as organisations seek and attain it.

• REGIONAL – This level of data aggregation is currently a focus point for a large number of multinational companies.

Fleet operators will have the ability to harmonise purchase streams from a regional level due to the full transparency of data available at this level.

This goes along with the clear trend to centralise the category leet on a regional level. In regions that are highly fragmented into separate markets (e.g. Europe) DIM is challenging. Generally, the regional level is commonly used to negotiate framework agreements with main suppliers such as manufacturers, lessors, insurance companies, insurance managers, etc. Full data transparency on this level is of the utmost importance in order to negotiate the best deals based on achieved and forecasted volumes and costs with suppliers.

• COUNTRY – This is the point in which the data is primarily used for operational reporting, to ensure the highest ef iciency levels within each national leet. The output from this reporting would be used for strategic purposes, thus creating the cross-over point between macro and micro reporting.

• ENTITY – This data level applies where fleet operators are responsible for a specific entity within their business.

Transparency of the total cost of ownership (TCO) will identify efficiencies and best practices on this level within a country.

• DEPARTMENT/COST CENTER – The main purpose at this level is to monitor cost allocation within a business from a controlling point of view, following up on set budgets.

• DRIVER/CAR – This level enables the monitoring of costs associated to a vehicle or driver. Detailed information will be available on the number and costs of crashes, fuel usage, fines, etc., within set time frames. A fleet manager may use this data to charge specific costs to drivers, such as extraordinarily high refurbishment costs when returning the vehicle.

One consequence resulting from the last economic crisis is that companies tended to transfer more responsibility to drivers and held them completely responsible for their vehicle operation. In order to implement this policy, however, a DIM system has to have the ability to link costs directly to individual vehicles and drivers.

• SINGLE INVOICE – This is the first level of data information that builds the basis for an entire DIM system. This level is commonly used to check individual invoice costs for tight cost control, the very basis for optimisation of fleet TCO on the very micro level.

Conclusion Without any doubt, the importance of data information management will increase in the future. DIM systems are currently operating up to the regional level but are expected to shift to the global level in the near future.

Considering the target of transparency, a leet operator will likely ind challenges running a DIM system. However, once a DIM system is established, companies will be afforded an overview in all key areas, including global leet costs, patterns, and supplier structure. In addition, they will have the ability to benchmark their leet regionally, locally and even by legal entity.

The described global reporting tool is an important step toward gaining transparency on a macro level. Such powerful tools will provide leet owners the possibility to optimise, monitor and manage the leet from a top-down perspective.

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

Next month...

We explore how the information gathered by a DIM system is managed.

internationalfleetworld.com / 39

PROFILE Ford

Going further The ubiquitous Ford Focus once again claimed the title as the world’s most popular car of 2013, selling more than one million units worldwide. Far from resting on its laurels however, Ford continues to forge ahead with a seemingly endless supply of new car launches and targets for global growth…

“Sales of vehicles equipped with the 1.0-litre EcoBoost petrol engine significantly increased in the first half of 2014.”

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Manufacturer Ford Total sales 2013 6,330,000 Headquarters Michigan, USA Global market share 8% No. of models 23

view

from the top

Asia-Pacific key to growth

F

ord recorded European growth of 6.6% in the irst half of 2014, totalling 605,400 sales to claim an 8% market share. According to Ford, more than 52% of vehicle sales in the irst six months of the year were of all-new or signi icantly freshened vehicles.

Sales of vehicles equipped with the turbocharged 1.0 EcoBoost three-cylinder petrol engine also signi icantly increased in the irst six months of the year, up by 15.3% compared to the same period last year.

Launched in 2012 with the Ford Focus, the 1.0-litre EcoBoost is now available in Europe in a further nine vehicles: Fiesta, B-MAX, EcoSport, C-MAX and Grand CMAX, Tourneo Connect, Tourneo Courier, Transit Connect and Transit Courier. Over 30% of Fiesta sales and more than 33% of Focus sales were of 1.0-litre-equipped versions in the irst half of the year. The 1.0-litre EcoBoost is already available in the Fiesta in North America, and also will feature in the North American Focus at the end of the year. Over two million EcoBoost engines were produced globally in 2013.

Ford recorded Fusion’s best-ever August sales in North America, totalling 29,452 vehicles – an increase of 19%. The Fusion Energi plug-in hybrid vehicle also broke records, recording 1,222 sales, followed by the C-Max Energi on 1,050 and the Focus Electric at 264 units.

Explorer sales surged 25% in August to 17,748, with the brand con ident that the model will be the best-selling midsize utility for a fourth consecutive year, and Transit Connect and ever-popular Lincoln MKC also posted particularly strong sales increase.

Ford estimates that India’s wholesale igure could reach over two million vehicles in 2018. In order to support demand and improve market share, the company aims to increase the dealership count across the region to 500, and ramp up production to 450,000 cars and 600,000 engines by the close of 2015.

The company has also reduced the waiting period for the EcoSport crossover, which is popular in the country as well as in South Africa, Taiwan, Australia and several European countries, helping to further boost Ford’s exports from the region.

The brand is also pursuing a major expansion plan in China. Ford expects AsiaPaci ic countries (mainly China and India) to account for 70% of its global growth in this decade, and generate 40% of its vehicle sales in the next four to ive years.

Ford last year launched a number of new vehicles to China including the EcoSport, Fiesta, Kuga and Mondeo, as part of a €3.3bn initiative to capture the Chinese market.

Passenger car sales in the region fell 4% in September compared with 2013 to around 69,000. This follows sales increases of 13% in August and 19% in July— representing growth, but at a slower rate than the 49% sales surge recorded for all of 2013.

Analysts blame a lack of new models for the downturn, which the company attributes to constrained manufacturing capacity. A new plant in Hangzhou with the capacity build 250,000 vehicles should help to ease this pressure, and the China-made Ford Escort sedan and imported Ford Mustang due in 2015 will help to boost sales.

FORD Global sales, by territory Territory North America South America Europe Asia-Pacific

2012 2,784,000 498,000 1,353,000 1,033,000

2013 3,088,000 538,000 1,360,000 1,344,000

% change +11% +8% +1% +30%

Total

5,668,000

6,330,000

+12%

Wolfgang Booms, executive director of fleet and remarketing in Europe, explains how the brand plans to grow its European share and why the new Focus was designed with fleets in mind..

How does Ford plan to grow its fleet share in Europe?

In addition to great vehicles, to grow further our fleet share in the European market we want to continue to be a strong partner for our business customers. Going forward, we’re extending our dedicated fleet business dealer network to establish 600-plus Business Centres to be key contact points for medium and large fleets, with more than 700 Transit Centres.

Do you see a growing role for alternative-fuel vehicles within the European range?

We do not expect a major shift in powertrain buying behaviour in the short term as our TDCI diesel engines are delivering a perfect blend of re inement, torque and low CO2 emissions – starting as low as 94g on the new Mondeo. We do, however, recognise an emerging trend to also look at electri ied technologies where they are a match for a leet’s driving pattern.

How did feedback from customers steer New Focus development?

Fleet customers appreciated the extensive safety technology features looking after their drivers in the previous model Focus, and we’ve included more of these advanced technologies in the new Focus, such as Active City Stop, Active Park Assist and SYNC 2 connectivity system with 8-inch touch screen. We were also keen to maintain the strong TCO proposition of Focus, for example, by moving all engines to Stage 6 emission levels and improving fuel ef iciency by up to 19% compared to the previous Focus.

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PROFILE Infiniti Car assembly plant locations

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South America • Pacheco Stamping and Assembly, Buenos Aires, Argentina • Camacari Plant, Bahia, Brazil • São Bernardo Assembly Plant, São Paulo, Brazil • Cuautitlan Assembly, Cuautitlan, Mexico • Hermosillo Stamping and Assembly, Sonora, Mexico • Valencia Assembly, Valencia, Venezuela

Where are they made?

Europe • Genk Body and Assembly, Genk, Belgium • Cologne Body and Assembly, Cologne, Germany • Saarlouis Body and Assembly Plant, Saarlouis, Germany • Valencia Body and Assembly, Valencia, Spain • Craiova Assembly, Craiova, Romania • Ford Sollers St Petersburg Assembly, St Petersburg, Russia • Ford Sollers Elabuga Assembly, Yelabuga, Russia Asia-Pacific • Broadmeadows Assembly Plant, Sydney, Australia • Changan Ford Automobile Co., Ltd. (CAF), Chongqing, China • JMC Nanchang Assembly Plant, Nanchang, China • Changan Ford Automobile Nanjing plant, Nanjing, China • JMC Xiaolan Assembly Plant, Nanchang, China • Ford Lio Ho Motor Co., Ltd, Chung Li, Thailand • AutoAlliance (Thailand) Co., Ltd, Rayong, Thailand • Ford Thailand Manufacturing (FTM), Rayong, Thailand • Ford Song Cong Diesel Assembly, Hai Duong City, Vietnam • Ford India Private Limited Chennai, Chennai, India North America • Flat Rock Assembly Plant, Michigan, USA • Chicago Assembly Plant, Illinois, USA • Kansas City, Missouri, USA • Louisville Assembly Plant, Kentucky, USA • Wayne Assembly Plant, Michigan, USA • Avon Lake Assembly Plant, Ohio, USA • Oakville Assembly, Ontario, Canada Africa • Silverton Assembly Plant, Pretoria, South Africa

FIN fleet in numbers

Ford’s position in the global ranking of hybrid vehicle sales.

2

1964 The year the iconic Mustang was launched.

40 per cent Ford’s predicted sales growth in Africa & Middle East by 2025.

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Ever-expanding range...

B

y the end of 2014, Ford will have launched a total of 23 new vehicles around the world in a single year, including refreshes of its lagship Focus and a new Mondeo, based on the Fusion This rate of activity will continue into 2015, with a raft of vehicles poised to launch, including the new C-MAX and Grand C-MAX range. Design changes re lect the ‘One Ford’ global design language and see the C-MAX family gain the new Ford face with the inverted trapezoidal grille. Inside, there’s a more intuitive layout with fewer controls and switches, and new black satin trim and chrome detailing.

The model also brings Ford’s new 1.5-litre TDCi diesel engine, delivering 120hp – up by 5bhp on the 1.6-litre diesel it replaces, whilst also offering up to a 6% improvement in CO2. Meanwhile the revised 2.0-litre diesel is expected to improve emissions by up to 20%. The range will also again include 100hp and 125hp versions of the 1.0-litre EcoBoost petrol engine.

Coming to market in 2015 is the new S-MAX, which debuted at the Paris Motor Show and brings new engines and optimised fuel economy. Roughly the same size as its predecessor, the all-new version of the seven-seat MPV gains added practicality with a power folding feature for the second and third row seats – dubbed Easy-Fold.

Underpinning the new model is the new CD4 platform, which is shared with the Mondeo and set to be used on other forthcoming models, and is said to bring a class-leading driving experience, enhanced by Ford's new integral link rear suspension.

Ford’s US import models – the Mustang and the Edge – will soon be coming to Europe for the irst time. “We’re very excited about the iconic Mustang joining our European line-up, and the same is true with the all-new Edge which is taking the successful SUV-formula to the business class level,” explained Wolfgang Booms, executive director of leet and remarketing in Europe.

“Edge offers a unique blend of stand-out design, class-leading roominess, smart technologies, and a driving experience our customers will love. It sits at the top of our SUV line up above Kuga and EcoSport and showcases our technology and design credentials in one upmarket SUV. With two versions of our 2.0-litre TDCi diesel engine and very competitive CO2 and a high quality interior, we’re convinced that this is a true alternative to some of the established competition in the market – especially within the user-chooser segment of the fleet market.”

FORD fleet model range Ka

New Ka

Figo/Ikon

Variants: 3dr hatchback Markets: Europe.

Fuel: 4.9l/100km CO2: 115g/km

Variants: 3dr hatchback Markets: Europe (soon), South America.

Fuel: (4.1l/100km) CO2: (95g/km)

Variants: 5dr hatchback, 4dr saloon Markets: Asia, North America, South America, Africa Fuel: 5.1-6.6l/100km CO2: 139-144g/km

Fiesta

Escort

Focus

Variants: 3/5dr hatchback, 4dr saloon Markets: Global.

Fuel: 3.3-5.9l/100km CO2: 85-139g/km

Variants: 4dr saloon Markets: China.

Fuel: TBC CO2: TBC

Variants: 5dr hatchback, 4dr saloon , estate Markets: Global.

Fuel: 3.8-7.2l/100km CO2: 98-169g/km (0g/km Electric)

Mondeo/Fusion

Mustang (2015)

Mondeo Zhisheng

Variants: 5dr hatchback, 4dr saloon, estate Markets: Global.

Fuel: 3.6-7.5l/100km (2.7-9.0l/100km) CO2: 94-174g/km (62-210g/km)

Variants: Coupe Markets: Global.

Fuel: (9.0-12.4l/100km) CO2: (210-287g/km)

Variants: 4dr saloon Markets: China.

Fuel: 9.1l/100km CO2: 211g/km

Taurus

Falcon

B-MAX

Variants: 4dr saloon Markets: Asia, North America.

Fuel: (9.0-11.8l/100km) CO2: (210-273g/km)

Variants: 4dr saloon Markets: Oceania.

Fuel: 8.1-12.4l/100km CO2: 192-278l/100km

Variants: Mini MPV Markets: Europe.

Fuel: 4.0-6.4l/100km CO2: 104-149g/km

C-MAX

S-MAX

GALAXY

Variants: 5/7 seat MPV Markets: Europe, Asia, North America.

Fuel: 4.3-6.4l/100km (2.7-5.9l/100km) CO2: 112-149g/km (62-136g/km)

Variants: 7 seat MPV Markets: Europe, Asia.

Fuel: 5.2-8.3l/100km CO2: 139-194g/km

Variants: 7 seat MPV Markets: Europe.

Fuel: 5.2-8.1l/100km CO2: 139-189g/km

EcoSport

Kuga/Escape

Edge

Variants: Crossover Markets: Global.

Fuel: 4.6-8.3l/100km CO2: 120-200g/km

Variants: Crossover Markets: Global.

Fuel: 4.7-7.7l/100km CO2: 122-179g/km

Variants: SUV Markets: Europe (soon), Asia, North America, South America (soon).

Fuel: 6.4-9.4l/100km* CO2: 149-218g/km*

Flex

Territory

Variants: Crossover Markets: Asia, North America.

Fuel: (11.8-13.1l/100km) CO2: (273-303g/km)

Variants: SUV Markets: Oceania.

Fuel: 8.2-10.6l/100km CO2: 217-249g/km

Endeavour / Everest

Explorer

Expedition

Variants: Large SUV Markets: Europe, Asia, North America, South America, Africa.

Fuel: 11.0–12.3l/100km CO2: 255-285g/km

Variants: Large SUV Markets: Asia, North America, Africa.

Fuel: (13.1-14.7l/100km) CO2: (303-341g/km)

NB. Figures in brackets are calculated from non-NEDC combined cycle tests. *Provisional figures.

Variants: SUV Markets: Asia, Africa, Oceania.

Fuel: 8.6-8.8l/100km CO2: 228-232g/km

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Nissan Pulsar Nissan is back in the family hatchback market with the Pulsar. By Steve Moody.

SECTOR Lower medium PRICE €17,490–€25,670 FUEL 3.6–5.1l/100km CO2 94–119g/km

A

For those people, the Pulsar delivers. decade or so ago, Nissan stopped making worthy The diesel engine, which will be the principle fleet but dull cars, reasoning that the modern buyer choice, is the staple 115 dCi Renault-Nissan motor, and wanted something with a little more character is as refined in this as in any car and offers lowish, if not that fitted in with the multi-faceted lives they lead. The class-leading, CO2 emissions of 94g/km. There is also a firm effectively revolutionised the car market by intronew 115hp 1.2-litre DIG-T petrol unit which revs healthducing the crossover, firstly with the Qashqai, and then ily without offering too much in the way of acceleration. with the smaller Juke.

Thanks to the longest wheelbase in the class (2,700mm), The new Nissan Pulsar, though, is a C-sector hatchback the Pulsar offers considerably more rear legroom and to compete against Korean rivals and established fleet volshoulder room than its sector rivals. Indeed, with 692mm ume brands. New Pulsar is a car that doesn’t really break of leg space – the Pulsar boasts more rear legroom than the mould in any particular way, but it is an important, the average D-segment offering – as tactical addition to the Nissan range. much as a Skoda Superb, it seems.

It is not that it is a bad car as such, There is also some useful, if occasionand when all the component parts are ally intrusive, equipment such as Nisadded up, it is likely that fleets with a san’s Safety Shield, although the plethora large number of job-use cars will find of beeps and warnings of perceived danthat it fits the bill in terms of price, fuelgers is wearing after a while. Unfortueconomy and reliability. nately, most of this only comes in the top Nissan seems to tacitly acknowledge of the range Tekna model, although the that the Pulsar has almost been invented emergency braking makes an appearto allow them to sell more Qashqais. Nisance on Acenta models and upwards. san expects to sell around 10,000 units a Nissan is well aware that buyers in year, which is not huge volume, and conthis class are perhaps more concerned siderably less than the Qashqai. Managwith value and reliability than handling ing director James Wright explained the and performance and have pitched the firm’s thinking: “We have found that in a The Nissan Pulsar new Pulsar as a worthy contender in lot of the larger corporate fleets, we need won’t set your drivers’ this highly competitive sector. The to have a C-sector offering or we cannot pulses racing, but it is cabin is sufficiently contemporary to get our cars on choice lists. So having the compete with rival models from the Pulsar will allow us to do that.” a steady, practical volume manufacturers and in that But there are, after all, a lot of people hatchback at a good sense, the Pulsar feels like it could who don’t want a high crossover typeprice and ideal for make a useful job-need car rather than machine, or a car that is the latest thing job-need fleets. the user-chooser bait the Qashqai or in handling, but do want a faithful car Juke might be. with a lot of space and some handy kit.

what we think

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Lexus NX 300h With its exciting looks and ultra-low emissions, the Lexus NX 300h delivers on its promise.

SECTOR Compact premium SUV PRICE €39,800–€56,600 FUEL 5.0–5.3l/100km CO2 116–123g/km

W

regime. Fleet buyers don’t need to look too far back into ith hybrid versions of its existing five models the past to find a time when cars of this size and power representing 60% of European sales, it’s hardly would be attracting the highest possible levels of taxasurprising the first compact SUV from Lexus tion, but extensive work on engines and transmissions sports a hybrid powertrain. The Japanese manufacturer has brought this down to a far more acceptable level and has gambled almost all of its chips on hybrid cars and this the NX 300h at 116g/km is impressive for a car with a new NX model may never be offered with a diesel option.

2.5-litre petrol engine.

Thanks to the low emission tax advantages of hybrids, Performance is an unhurried 9.2 seconds for the 0-62kph Lexus has sold well in the company car market. This NX sprint, though drivers who are unfamiliar with the car’s CVT too offers a tax advantage, thanks to a CO2 figure as low transmission may take a while to get used to its high-revving as 116g/km and combined cycle fuel consumption as low nature. Buyers who are looking for higher levels of performas 5.0l/100km. With a backdrop of increasing sales in the ance might be persuaded to look elsecompact SUV segment, the NX is clearly where, though the Lexus hybrid is not far an important product for Lexus. off the pace of its more established rivals.

Lexus claims three-year cost of ownEngine noise is apparent when driving ership is lowest for NX compared to the with any sense of urgency. Press on the car’s rivals: Audi Q5, BMW X3, Range accelerator and the engine speed picks Rover Evoque and Volvo XC60. But will up ahead of road speed. Lift off the throtthe ‘arresting’ looks of the NX 300h tle and the sound continues for moments tempt company car drivers away from more. Lexus has incorporated an artifithe competition? cial engine note to reduce the auditory Only two powertrain options will be effects of the real one and if you switch offered in most European markets: the between the four drive settings this is petrol-electric hybrid which has a 2.5clearly apparent. However, for those that litre petrol engine combined with an prefer their engine note ‘au naturel’ the electric motor driving the front wheels artificial sound can be switched off. and an additional electric motor drivGood fuel economy, Driven less urgently, the NX 300h is a ing the rear wheels too when needed. low whole-life costs most agreeable car. Its handling is good, Output is 197hp. There is also a frontand CO2 figures should helped by its AWD system and while the wheel drive version in entry-level S NX doesn’t at any time feel fast, those trim only. A faster turbocharged petrol attract drivers to the who are expecting hot hatch performmodel will come in 2015, which Lexus hybrid SUV. Striking ance are probably missing the point. It says it will sell comparatively few of. appearance may is refined, comfortable and luxurious – The hybrid offers good figures for divide opinion. qualities that will appeal in the sector emissions and economy – important the car is pitched. considerations in any CO2-led tax

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BMW 2 Series Active Tourer A new segment and new drivetrain don’t mask the BMW DNA beneath, says Alex Grant.

SECTOR MPV PRICE €27,200–€38,100 FUEL 4.1–6.0l/100km CO2 109–139g/km

T

hose who remember the lacklustre sales performwith rivals next time around, sharing components and ance of the last A and B-Class, and the relative cost with the MINI range. soaring sales of crossovers and SUVs in recent This layout means that the Active Tourer is only slightly years, might question why BMW has chosen to launch a longer than a 1 Series hatchback, yet the high roofline and MPV as premium rivals are putting their focus elsewhere. large windows make it feel much more spacious inside.

But, while the 2 Series Active Tourer may sound like a Rear passengers get legroom to rival a 7 Series – noticeably square peg in the round hole of the BMW range, there’s a so – and with the three-piece rear bench folded there’s as definite niche to fill. This not only broadens its customer much cargo capacity as a 3 Series Touring. Switches just base to include young families who would otherwise inside the tailgate to drop the rear seats, a load area under defect – possibly due to a crossover-restricted choice list the boot floor and a flat load space show BMW has put – to another brand, but it works well enough as an MPV some effort into flexibility here. Seven seats are rumoured to tempt conquest buyers too. to be in the pipeline, which will broaden It’s a tool for BMW to take on premium its appeal even further. rivals like the B-Class, but also high trim There’s also no sense that aesthetics levels of the Citroën C4 Picasso, Ford have been compromised inside, where C-Max and Volkswagen Golf Sportsvan. the MPV is awash with familiar softOf course, the challenge with this segtouch materials and accents of alument is that it’s focused on capacity and minium or colour. The seats are flexibility rather than outright driving supportive and the slightly raised drivdynamics. It’s meant BMW has had to ing position is excellent. MPVs can take a controversial move sideways make you feel like you’re sat on them, from its preference for rear-wheel drive, rather than in them, and BMW has adopting an extended version of the new managed to avoid this. It feels like a MINI’s platform, and some of its engines, premium product, as it should. to underpin the Active Tourer.

With supple ride quality and surprisAs much as this might make BMW ing agility on offer, and the new Despite a new segment stalwarts weep, it’s a logical move for MINI-sourced three cylinder 218i and platform, sparky the smaller members of the range. The petrol and familiar four-cylinder 218d engines, an excellent carmaker’s own studies of 1 Series diesel both combining lively power owners have shown few of them know delivery and low consumption, it feels chassis and premium which wheels are being driven, and as dynamic as a BMW should. So materials leave no doubt MINI shows the Group has the expertfamilies sizing up out of a 1 Series that this is a good BMW, ise to build excellent front-wheel drive won’t feel short changed, but neither as well as a good MPV. cars. Don’t be too surprised if most will current MPV drivers seeking a bit models below the 3 Series fall in line more badge cachet.

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Opel Vivaro Bigger where it matters, quieter and more comfortable, the new Vivaro impresses, reckons John Kendall.

SECTOR Medium van PRICE €21,060 FUEL 5.9–7.0l/100km CO2 155–185g/km

I

dashboard, so you have daylight to illuminate the dark t’s 13 years since the Opel Vivaro first appeared, glove box interior. It’s a small point, but it makes a difbuilt in a joint venture with Renault, which also proference. The cab is an office for many drivers and the duced the Trafic and Nissan Primastar. The joint venVivaro gains another Movano/Master idea, a folding centure continues, as with the latest model, but whereas tre seatback, which forms a table. most previous Primastars, Trafics and Vivaros were built Overall, the van is 216mm longer than before. 116mm at the GM plant at Luton in the UK, Renault is now proof this has been given to the cab and although it does not ducing the Trafic at its Sandouville plant in northern sound much, it does make a difference, by giving more France and GM is producing most Vivaros in Luton. We space for seat adjustment. The remaining 100mm has say most, because the Luton plant paint shop cannot been given over to the only significant change to the load accommodate the high roof variants and these are built area, which is now 100mm longer. This means that short at Sandouville. Nissan has yet to launch a replacement wheelbase models can now accommofor the Primastar. date the eight-inch by four-inch boards The Vivaro has not been changed for used in the building trade. In addition the sake of it. The design that was radto the eight or 10 lashing points fitted ical back in 2001 aged surprisingly to the floor, 10 more at half height are slowly and still looked fresh at the end. available as an option.

The trademark ‘bump’ in the cab roof The big change is under the bonnet. has gone and the frontal treatment is As before, Renault is the engine supfar bolder than before. It was interestplier and a 1.6-litre downsized coming to note that the van still grabbed a mon-rail diesel offers 90hp, 115hp, lot of attention while we had it on test 20hp or 140hp, the same and more – unusual for a van. than the outgoing 2.0-litre engine. The Inside, GM and Renault have carried 120hp and 140hp versions feature over some of the ideas from the larger twin turbochargers. As before there are Movano/Master such as the generous ecoFLEX low emissions models too. under seat storage. There is also the The new Vivaro is The engine impresses with its very option of a loading flap through the an impressive van. low in-cab noise levels as well as the standard full-height steel bulkhead.

The new engines are performance from our 140hp variant This provides for long items such as with 340Nm of torque available from pipes or ladders. The cab itself has notably quieter and the 1,750rpm. Drivers will have no idea been thoroughly modernised with up new cab is well thought that there is a 1.6-litre engine under to date dials and switchgear. There are out. More load length the bonnet. The payoff will be at the no less than two glove boxes on the is a winner. pumps, with impressively low fuel conpassenger side, one offering 12-litres sumption across the range. of storage accessed from the top of the

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MANAGEMENT Global Fleet Forum

global connecting the international fleet community

Join the Something to shout about Steve Moody, Editor, Fleet World

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

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

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

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

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

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

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

theglobalfleetforum.com

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I went to the Jaguar XE reveal in London, which involved a 90-minute stage show in front of 3,000 guests flown in from all over the world. Whether such bombast (and rumours of a €5m budget) is your thing is perhaps neither here nor there – what it did show is that, for Jaguar, the XE is the most important car it has launched in decades.

Jaguar, relative to the German premium brands, is a small company with no volume models. However, the XE is intended to change this.

It looks good too, if a little conservative, and has the right numbers in terms of CO2. So that’s a good start, but now the real work begins and there are a number of questions Jaguar will have to answer before it can challenge BMW, Audi and Mercedes-Benz.

Firstly, does the firm have the infrastructure to manage fleet business? It needs a corporate sales team and backup that can provide first-class service to customers, and dealers willing to deal with drivers who aren’t necessarily buying cars from the showroom.

Also, without a small hatchback, will Jaguar be able to get on some of the larger corporate choice lists? After all, Nissan has just launched the Pulsar to access that business because it felt the Qashqai was missing out – and that’s a huge fleet seller.

There’s no doubt that there will be plenty of userchooser leasing business for Jaguar for this car and I’d be amazed if it didn’t have strong residuals and competitive running costs. And as I sat there watching Emeli Sandé belting out her songs, it’s clear this is a firm unrecognisable from the one which launched the X-Type. Confident, cash rich and with a clearer direction of where it is going, the XE heralds a new beginning for Jaguar in fleet.

Andrew Houston, Head of ICT & Fleet, Altro Limited replied…

With massive investment, backed by the startling confidence demonstrated by its new owners (that some other industries could take heed of), Jaguar’s state of the art fac-

debate...

in association with

Meet the experts...

Mark Merrell, Partner and Head, Corclaim tories in the UK are now capable of turning out volume quality products to rival anything the world has to offer.

The XE looks the business. If the engineers and production guys have done the job right, this is exactly the car to meet BMW and Audi particularly head on in that sector. Let’s hope the dynamics live up to all that and the car driving reviews next year hit the spot. But please Jaguar, don’t forget the more exotic and niche cars you produce – you have a lead in those too!

Are your cars safe and secure?

Alex Grant, Deputy Editor, International Fleet World Whilst there has been much coverage on the benefits of connected cars, the issue of possible breaches in security of such technology has again come to light with the publication of a list of the 20 ‘most hackable’ cars.

The list, which sees the 2014 Jeep Cherokee, 2015 Cadillac Escalade and 2014 Toyota Prius take the top three spots, has been put together by hackers Charlie Miller and Chris Valasek, who last year showed they could hijack the steering and brakes of a Ford Escape and a Toyota Prius just using laptops connected to the cars.

Already, Wil Rockall, director at KPMG’s cyber security practice, has said that vehicles should be “secure by design.” He commented: “This will provide security measures aimed at preventing vulnerabilities from being attackable, rather than accepting flaws in design and masking them with a third part conventional security product.”

BMW has previously said: “A vital point to acknowledge here is that there is no such thing as the ‘unstealable’ car.... If a criminal decides they want your car, they will find a way to take it. Our job is to make it as difficult as possible.”

But, clearly, as car technology evolves, so will the ways in which criminals steal such cars…

Corclaim is a niche provider of services to businesses that have sustained loss or damage to property resulting from the actions of others. Mark has particular expertise in the application of the Road Traffic Act and all matters relating to the Motor Insurers’ Bureau. Before becoming head of Corclaim, Mark was with a national top 20 law firm for around 16 years, always representing claimants in recouping their losses.

Gary Killeen, Fleet Services Managing Director, GE Capital With over 20 years experience with GE Capital, Gary first joined the company in 1988 as a trainee financial accountant. he has in-depth expertise across asset based lending, working as general manager for GE Capital's structured financial solutions before taking up his role as fleet services commercial leader. As well as leading the fleet business, he is also the leader of the sales office where he is responsible for the day-to-day business welfare of the workforce.

Paul Verkinderen, Sales Director EMEA, Chevin Fleet Solutions Paul has a long and established track record in the automotive sector. He was MD of a mid-size leasing company for more than 20 years. After his career in leasing, Paul worked in the remarketing and outsourced fleet management business. Since May 2011, he has been sales director in the EMEA for Chevin, the global leading fleet management software supplier.

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fleet in figures

Global sales continue recovery Rising global sales and falling oil prices may be good news for car buyers, but could a weakening Chinese economy bring change, asks John Kendall.

Renault Renault Group has also continued with rising sales. Renault registrations YtD have risen by 11.1% to 647,295.

China – market softening?

The Chinese economy has been the subject of focus in the past month, with commentators suggesting that China’s 30 years of double digit economic growth is coming to an end. A survey by Bloomberg suggests that Chinese growth will be around 7.3% this year, the slowest for 24 years. Data from LMC Automotive seems to support the slowing of the Chinese economy. Company data suggests that the year-on-year sales

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growth of locally-made light vehicles fell from 7.4% in July to 4.7% in August and an H1 2014 average of 9.1%, although how much of the August fall is due to holidays is not clear. LMCA suggests that growth in the light commercial vehicle sector has suffered the biggest declines, with August sales falling by -10% compared with August 2013.

According to LMCA, the seasonally adjusted annual selling rate (SAAR) for LCVs in China has been relatively flat

since May, settling at around 4.95 million units in August, while the SAAR for passenger vehicles rebounded to 18.7m units, reversing the declines of the previous three months. LMCA can find little optimism in the Chinese dealer inventory index either, noting a small improvement but still close to the high inventory level seen in the same period in 2012.

LMCA continues, “More concerns arose when we found that passenger

vehicle sales growth so far this year was driven mostly by the tier-two cities which risk implementing car purchasing restrictions. We have increasing doubts over how long such a high level of growth can be sustained, but also over how soon it may lead to the implementation of car registration quotas in those cities.”

LMCA has revised its forecast for China’s LV growth downwards for 2014 to 7.1%. This is made up from passenger car sales growth of 10% and a -2.0% decline for light CVs. Volkswagen holds the top three best selling slots for cars, according to LMCA with the Lavida at 332,813 sales to the end of August, Santana in second place with 211,907 and the Sagitar NCS, a variant of the European Jetta saloon in third place with 207,989. Volkswagen leads the Chinese car market with sales until the end of August of 1,953,988.

Similarly Wuling holds the top three best selling places for the light CV sector. The market leading Hongguang saw sales rise 68% in the period to the end of August to 483,159.

Global market Annual light vehicle growth of 7.1% would be regarded as remarkable in most other markets around the world.

Chinese growth contributes greatly to the global rise of 3.2% in the first nine months of 2014 to 64,673,410, as reported by LMCA. The Global SAAR of 86.2m units per year is slightly up on August. Western Europe and North America are recording increases while South America and Russia continue to struggle.

Scotiabank reports that North American light vehicle sales are at or near record levels. In the US light truck sales have forced the pace, with Scotiabank reporting that the US ‘Big Three’ took

the top three best selling places in the light truck market for the first time in four years. “Chrysler overtook Toyota in September, as a 47% year-on-year surge in volumes at its Jeep brand lifted the company’s overall truck sales 30% year-on year,” reports Scotiabank’s Carlos Gomes. He continues, “While there is some concern that the US market may begin to plateau around current levels going forward, we believe that underlying fundamentals – such as an ageing vehicle fleet and improving household balance sheets – point to an extended auto replacement cycle, with purchases averaging 17m units or higher for several years.”

LMCA data shows that US light vehicle sales in Q1, Q2 and Q3 combined were up 5.4% to 12,408,291 compared with January to September 2013. Counting light trucks and cars together, Scotiabank reckons the total reaches around 16.3m for the same period.

For Canada, Scotiabank says that car and light truck sales hit an all time record annual rate of 2.0m units by the end of September. “In fact, this represents the strongest quarter-to-quarter increase in vehicle sales since the beginning of the current economic expansion in mid-2009,” says Gomes.

Western Europe maintains momentum In Western Europe, data from the European Automobile Manufacturers’ Association (ACEA) shows that the EU market for new cars showed its 13th successive month of growth, with registrations for Q1, Q2 and Q3 combined totalling 9,572,259, up 6.1% on the same period in 2013. Only Austria, Belgium and the Netherlands recorded decreases YtD, with Austria, Denmark and the Netherlands the only markets showing a decline for September. Amongst the

major EU markets, Spain has registered the highest percentage growth so far this year, with registrations up 17.2% to 640,673, as we report in the market report on Spain on page 34.

Amongst manufacturers, Skoda has continued its strong showing with YtD registrations climbing 18.7% to 422,681, challenging brands such as Citroën. Renault Group has also continued with rising sales. Renault registrations YtD have risen by 11.1% to 647,295. Dacia has continued its progress with registrations rising 29.2% to 273,743. Jeep has recorded the largest percentage rise with registrations up 47% to 23,187. Japanese brands Lexus, Mazda and Mitsubishi have all shown large percentage increases with Lexus up 23.5% to 20,150, Mazda up 23.6% to 127,679 and Mitsubishi up 38.2% to 66,786. Suzuki is also performing well among the Japanese brands with registrations up 11.2% to 118,127. Smart has recorded the largest percentage decline at -16.1% to 40,352, but with new models currently arriving, the company should see its European fortunes improve.

Are US oil prices heading for $60 per barrel?

The US is partly responsible for the current low price of oil. Some analysts are predicting that prices will fall further to $US60 per barrel, as the US, with its shale gas and oil reserves helping to reduce demand for oil from the OPEC nations, seems to be entering a price war with the OPEC producers that could bene it consumers. The long global economic crisis is also a factor, with car sales still below pre-crash levels. The global move to downsize engines and lower energy consumption has also gathered momentum in the recession years and may also be affecting demand for oil.

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