International Fleet World November 2017

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INTERNATIONAL

FLEETW RLD All that matters in the world of fleet November 2017

The New

HYUNDAI KONA You drive it. You define it.

internationalfleetworld.com



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INTERNATIONAL

FLEETW RLD All that matters in the world of fleet

contents

November 2017

The New

HYUNDAI KONA You drive it. You define it.

internationalfleetworld.com

Chairman Jerry Ramsdale jerry@fleetworldgroup.co.uk

16 SPOTLIGHT: New Nissan LEAF.

20 INTERVIEW: Michael Cole of KME.

32 VW’s renewed fleet portfolio

40 DRIVEN: Kia’s all-new Stonic.

Publisher Steve Moody steve@fleetworldgroup.co.uk Editor John Challen john@fleetworldgroup.co.uk Deputy Editor Alex Grant alex@fleetworldgroup.co.uk Business Editor Natalie Middleton natalie@fleetworldgroup.co.uk Content Editor Jonathan Musk jonathan@fleetworldgroup.co.uk Sales Manager Claire Warman claire@fleetworldgroup.co.uk

04 Fleet Review Editor John Challen takes on the MPG Marathon challenge.

Sales Manager Harry Whyte harry@fleetworldgroup.co.uk Circulation Tracy Howell tracy@fleetworldgroup.co.uk Head of Production Luke Wikner luke@fleetworldgroup.co.uk Designers Tina Ries tina@fleetworldgroup.co.uk

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

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

16 Spotlight Nissan’s latest LEAF breaks cover. We look at what’s new.

Victoria Arellano victoria@fleetworldgroup.co.uk Web Designer Dan Desta daniel@fleetworldgroup.co.uk

18 Van Fleet World iD Experience the new, interactive LCV magazine online now.

20 Interview Kia Motors Europe’s Michael Cole on the fleet future for the brand.

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

24 Feature How much risk are your drivers typically exposed to? We investigate.

27 Analysis Analysing the residual value of the Land Rover Discovery.

28 Fleet Focus Pierre Emmanuel Beau on remarketing in the French used car market.

32 Profile Volkswagen begins a period of renewal after a tough couple of years.

38 Launch Report Alfa Romeo Stelvio / Hyundai Ioniq Plug-in Hybrid / Kia Stonic. To subscribe to International Fleet World visit: www.fleetworldsubscriptions.co.uk

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fleet review This month it’s all about the 2017 MPG Marathon for editor John Challen...

How low can you go? There is a common misconception about motoring journalists (in the UK at least) for being law-breaking, speed-seeking hooligans on the road. As much as many of my peers try to dispel this myth, it won’t go away. To be fair there are enough videos online of folk hooning around a track to see how some people come to this conclusion, but at the same time, we always try and convert people’s way of thinking. This generalisation couldn’t be more wrong during two days in October every year when the Fleet World MPG Marathon takes place. An event where a range of vehicles compete against each other by driving very slowly (most of the time) around the country. The goal? To drive as economically as possible from one point to another (and then back again) and see how much (or how little) fuel is used. My vehicle of choice this year was a Jaguar XE with a 2-litre diesel engine. On the face of it, a car that doesn’t exactly scream ‘Eco warrior’, but it threw up a bit of a surprise – to me, at least. Vehicle manufacturers have to be given a lot of credit for having improved the fuel economy of their cars – so, with that in mind, I’m saying congratulations and thank you to Jaguar. For all of the talk from the company about advanced structures, lightweight materials and aluminium bodies, there was still a part of me that looked at the official average combined figure of 67.3mpg and almost dismissed it. So imagine my surprise when, at the end of the two days, we broke through the 70mpg threshold! Helped by taking advantage of almost any haulage vehicle we could find, which dragged the figure up (hugely according to the onboard computer) in the final stages. Given a collective poor sense of direction, we decided against going ‘off-piste’ and stuck to the sat-nav. However, mistakes WERE made and going cross country down some very narrow lanes – coming up

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against a tractor or two along the way – hampered progress at the beginning of day two. But the powers of concentration were strong and we managed to get back on track and do our best to beat the manufacturer’s figures. While the serious contenders – who often end up as the eventual winners – pore over maps and conduct various calculations before the event, my approach wasn’t exactly science, I’ll admit. A lot of it is common sense and driving as I usually would – just a bit slower! To be honest, that is a lesson in itself – to prove that it really doesn’t take much to make a difference. Save fuel, save money, save the planet!

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fleet in figures

China leads the way as global market grows The highest selling rate in almost a year in China helped the global rate reach close to 100 million units a year. By John Challen. ight vehicle sales in the US finished September with 1,523,000 units, an increase of 2% from September 2016 (selling day adjusted). The September selling rate reached 18.6 million units a year, up 0.9 million units a year ago. Fleet sales were responsible for much of the growth; they were up 8%, while retail sales increased 0.8%. Incentives grew 4% from last year, to $4,091 on average. Once again, Canadian Light Vehicle sales were up – this time to 187k units, or 7.9% more than a year ago. The selling rate reached 2.09 million units a year, the second highest level in 2017. In Mexico, sales plummeted to 116k units in September, 11.2% down from a year ago – the first double-digit decline so far this year. The latter part of September was affected by a deadly earthquake, which hit Mexico City and the states of Mexico and Puebla. These three areas represent more than a third of Mexico sales.

Russian light vehicle market picked up in September, posting a rise of 18% YoY. While the selling rate dropped back from just under 1.6 million units a year in June to closer to 1.4 million units a year in July and August, it recovered to 1.67 million units a year in September. Momentum is being gained from incentives introduced in July. Equally, recent economic news has been encouraging and consumer confidence is rallying.

Europe In contrast to growth elsewhere, light vehicle registrations fell in Western Europe by 2.4% in September, on a comparable number of selling days with September 2016. The latest month’s result translated into a selling rate of 16.1 million units a year, but the car market is forecast to grow by 380k units this year, a reflection of the more solid platform for sales the Eurozone economy has provided in recent times. After a couple of months where sales came in slightly below expectations, the

Other Asia The Japanese market is heading for its first annual expansion since 2014. The selling rate reached 5.16 million units a year in September and averaged 5.2 million units in the first nine months of the year. YoY, sales increased by 7.5% year-to-date. Continuing economic expansion and a tight job market, as well as new model launches, are boosting sales. Nonetheless, stagnant wage growth remains a concern.

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China According to advance data, China’s sales (i.e. wholesales) accelerated in September, with the selling rate exceeding 30 million units a year for the first time since November 2016. Ahead of the expiration of the temporary purchase tax cut on smaller vehicles in December 2017, automakers increased deliveries to dealerships. On a YoY basis, sales increased by about 3% in September, the fourth consecutive month of YoY gain, thanks to robust demand for SUVs.

In South Korea, the selling rate surged to just below two million units a year, and sales increased by 20% YoY in September, but that is because of the timing of the Chuseok (mid-autumn festival) holiday, and because sales a year ago were very weak after the expiration of the temporary tax cut in June 2016. Such a robust rate is unlikely to be sustained, especially at a time when the economy remains sluggish. South America The Brazilian market is gathering momentum. After hitting a two-year high of 2.48 million units a year in August, the selling rate reached a strong 2.3 million units a year in September, compared to the average selling rate of 2.1 million units a year in H1 2017. Consumers are regaining confidence and purchasing power, thanks to the economic recovery and falling inflation and interest rates. In the volatile Argentine market, the selling rate fell to 761k units/year in September, after a robust August. On a YoY basis, however, sales increased by 5.4% in September and 27% in the first nine months of this year, supported by falling inflation and rising real wages.

South Korea saw a selling rate surge, helped by home brands such as Kia.


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manufacturer news

Groupe Renault sets sights on 40% growth by 2022

roupe Renault has revealed its G six-year plan to grow global sales by 40%, to five million units,

while widening its line-up of plug-in models and extending its commercial vehicle offer worldwide. As well as growing volumes, Drive The Future is focused on profitability; it will aim for positive free cash flow every year en route to annual revenues of over €70bn and a 7% profit margin. By the end of 2022, Renault will

have launched 21 vehicles worldwide, 18 in Europe, and three of these will be entirely new models. Around 80% of its global product offer will be on one of five common platforms, cutting cost and complexity, and its CV range will be made available across its global markets with a view to doubling its coverage and growing sales by 40%. The wider range will include eight battery-electric vehicles – five of which will be in new segments – and

Shell to debut subscription-free EV rapid charging service in UK hell Recharge, a forecourt EV rapid charging service, has been launched in the UK. Initially, Shell Recharge will be available at three locations followed by a further seven before end-2017. The rapid charging service does not require a subscription or connection fee and customers pay via the Smoov mobile app, Shell said. Until the 31st of June 2018, an introductory offer of 25p per kWh will be offered in place of the regular 49p/kWh thereafter. Shell operates 35 (non branded) charge points at sites in Norway, but the company has confirmed Shell Recharge will next launch in the Netherlands.

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platforms and components will be shared between Renault, Nissan, Mitsubishi and Daimler. Groupe Renault will also launch 12 ‘electrified’ models by 2022, though that’s likely to include ‘Hybrid Assist’ mild hybrids as well as plug-ins and full hybrid offers. Half of its range will be electrified, and 20% will be fully electric by that point. Groupe Renault will also leverage R&D and economies of scale from its Renault-Nissan-Mitsubishi Alliance.


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For the latest news, visit internationalfleetworld.com

Iveco Daily Blue Power range tackles urban operation issues

in brief

has launched a new Daily Blue Power range featuring a choice of Itionsveco powertrains to help urban and suburban fleets run city centre operaround the clock.

Ford and Lyft to work on self-driving cars

Designed with a ‘future-proofing’ focus, the line-up includes the Daily Euro 6 RDE Ready. Said to be the first diesel LCV on the market that’s been tested and verified for Real Driving Emissions, the Euro 6 RDE Ready is powered by Iveco’s 2.3-litre diesel and features a Selective Catalytic Reduction after-treatment system. Tested by an independent organisation, the Netherlands Organisation for Applied Scientific Research (TNO), in accordance with the new RDE regulations, the Daily Euro 6 RDE Ready had a conformity factor – which limits how far emissions can exceed the regulations on NOx emissions on any possible RDE trip – of 1.2 compared to 2.1 under the regulation. Iveco hasn’t published fuel economy data but says the model, which comes with standard Start&Stop system and Michelin eco-tyres, uses up to 7% less fuel compared to the current version based on a real urban customer trip. Iveco’s Daily Blue Power family also includes the existing Daily Electric model and the Daily Hi-Matic Natural Power Compressed Natural Gas (CNG) vehicle, now teamed up with an eight-speed automatic gearbox – a claimed first in the industry.

EU emissions rules could cause another ‘smokescreen’, warns legal firm nvironmental law firm ClientEarth has launched legal action against the European Commission as it warns that new EU rules on emissions control systems could prompt another diesel scandal. Following the introduction of the new World Harmonised Light Vehicles Test Procedure (WLTP) test cycle for fuel consumption and CO2 emissions figures, ClientEarth – which has successfully taken the UK government to court over its failure to tackle air pollution – is challenging new rules that allow car manufacturers to keep their emissions control systems secret from the public. Under restricted circumstances, car manufacturers are allowed to alter the functioning of the emission control system if it’s necessary to protect the engine against damage. Although the new rules require car manufacturers to explain what effect any variation to the emission control system has on emissions to national approval authorities, this information remains strictly confidential. As such, ClientEarth claims this prevents citizens, consumers and NGOs from scrutinising whether any such variation (and derogation) is justified for authentic engine protection purposes or is just because the manufacturer wants to use cheaper components. In response, ClientEarth is calling for the confidentiality provision of Commission Regulation (EU) 2017/1154 to be annulled at the Court of Justice of the European Union, alleging that the Regulation is against EU access to environmental information law and against the international Aarhus Convention, which is designed to ensure transparency and public access to justice in environmental matters.

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Ford has become the latest carmaker to sign a deal with ride hailing firm Lyft to develop self-driving vehicles. The carmaker said the partnership would team its experience with autonomous vehicle technology development and large scale manufacturing and Lyft’s customer network to bring self-driving vehicles “to the masses”.

Sofico opens office in Central America Sofico has made its first move into the Central America region with the opening of an office in Mexico. Located in the city of Puebla, south east of Mexico City, the office is staffed by existing personnel seconded from Sofico’s offices in Belgium and Japan, along with a number of locally hired employees, and will provide more effective project staffing and support as well as extending Sofico’s global reach.

PSA mobility brand takes first step in US Groupe PSA has launched its Free2Move mobility solutions service in Seattle, marking its first step in the US market. Already available in seven countries in Europe, the app-based solution enables Seattle users to compare details on local car sharing schemes including from Car2Go and Zipcar and will also add in details on bike sharing schemes.

Daimler acquires German ridesharing firm Flinc Daimler Mobility Services has acquired German ridesharing start-up Flinc GmbH for an undisclosed amount. The acquisition furthers Daimler’s work on mobility services, including its investment in September in US peer-to-peer car sharing startup Turo and last year’s acquisition of the Hailo taxi hailing app.

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Masterpiece of Intelligence. The new E-Class. The new E-Class demonstrates that intelligence has many different sides. Whether in a Saloon, Estate, All-Terrain, CoupÊ or Cabriolet – with Intelligent Drive, you experience a whole new dimension of innovative safety and comfort. www.mercedes-benz.com/fleet

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environmental news

Shell to expand EV charging offering with NewMotion acquisition hell has signed a deal to buy NewMotion, one of Europe’s largest electric vehicle charging providers, as it looks to ramp up its charging proposition. Although Shell is currently in the process of rolling out fast charging points on its forecourt network, the acquisition will expand its offering to cover workplace and home charging points. Based in the Netherlands, NewMotion operates more than 30,000 private electric charge points for homes and businesses including in the UK, and offers access to a network of more than 50,000 public charge points across 25 European countries. Shell’s vice president for new fuels, Matthew Tipper, said: “This move provides customers the flexibility to charge their electric vehicles at home, work and on the go. When you add this customer offer to our current roll-out of fast charging points on Shell forecourts, we believe we are developing the full raft of charge solutions required to support the future of EVs.” The deal will see NewMotion become a wholly owned subsidiary of Shell and will operate as usual. Earlier this year, Shell announced that selected service stations in the UK and Netherlands are to gain rapid charging points for electric vehicles, due to go live by the end of 2017 (more about Shell Recharge on page 8 of this issue) in partnership with Dutch charging point manufacturer, Allego. The announcement followed this year’s Queen’s Speech, which revealed that motorway service stations and large fuel retailers will be required to install EV charge points under new legislation. The Automated and Electric Vehicles Bill sets out a number of measures including moving towards a set of common technical and operational standards for EV charging, such as common connectors and accessibility, in line with government plans for “almost every car and van to be zero-emission by 2050”.

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Paris to eliminate petrols and diesels by 2030 aris Mayor Anne Hidalgo has outlined plans to eliminate petrol and diesel vehicles in the city by 2030 – with incentives on ULEVs to play a crucial role rather than an actual ban. Despite media reports claiming that the city is planning to ban diesel and petrol vehicles in 2030, tweets from Ms Hidalgo and an announcement on the city’s official website have spelled out that there is no ban scheduled in the new Climate Plan Air Énergie Territorial de Paris but a plan to develop long-term solutions that will put an end to the use of diesel engines in Paris in 2024 and petrols in 2030. Such solutions will invest in the

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development of alternatives to petrol and diesel and deploying incentives to enable drivers to make the switch. The idea is to make Paris a carbon-neutral city, in line with plans encompassing the rest of the nation, by 2050. Earlier this year, France’s recently appointed environmental minister said the country will ban the sale of petrol and diesel cars by 2040, with the Climate Plan notably banning the sale of all vehicles that emit greenhouse gases – including hybrid, plug-in hybrid and range-extended electric vehicles as well as conventional petrol or diesel models.


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For the latest EV news, visit evfleetworld.com

in brief

Range boost for Nissan e-NV200 issan has revealed a new version of its NV200 van, which uses new battery technology that boasts a longer range. The extra mileage is achieved thanks to the deployment of advanced battery technology. Unveiled at the Nissan Futures 3.0 event in Oslo, Norway, the upgraded e-NV200 – which will be available to order before the end of 2017 – features a new 40kWh battery that gives the vehicle an extra 100km range, pushing the total to 280km – an increase of 60% – subject to final homologation. The upgrade in the battery comes without any increase in size, crucially meaning there’s no impact on load space or payload. Nissan said the increased range further opens up the vehicle’s potential for businesses and professional drivers everywhere. The unveiling of the e-NV200 comes alongside Nissan’s European premiere of the new LEAF, with a special '2.ZERO’ version for Europe, and confirmed that it will expand its European fast charger infrastructure network by more than 20% over the next 18 months, rising from 4,600 to 5,600.

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2018 will see first PHEV Range Rovers

Renault develops EV smart charging app Hyundai Motor will launch a car sharing programme in Amsterdam in October, offering a fleet of 100 Ioniq Electric vehicles available for use around the city. The city was chosen because of its 2,200-unit charging infrastructure, and CO2-neutral target set for 2025, which the carmaker said resonated with its own sustainability strategy.

Oxford plans for petrol and dieselcar ban Petrol and diesel cars could be banned from Oxford city centre in the UK from 2020 under what’s believed to be the world’s first Zero Emission Zone. The ban would be introduced in phases, with plans to exclude all vehicles that are not zero emission by 2035.

Dyson to launch EV by 2020

he Range Rover and Range Rover Sport are to gain plug-in hybrid technology as part of mid-life facelifts. Forming a replacement to the previous diesel-hybrid versions, the new P400e PHEV models combine a 300hp 2.0-litre four-cylinder Ingenium petrol engine with a 116hp electric motor, enabling a fully electric range of up to 50km when fully charged, or a combined power output of 404hp with petrol and electric power working together. Power comes from a 13.1kWh lithium-ion battery, mounted at the rear beneath the boot floor. Measured on the NEDC cycle, both models emit 64g/km with a fully electric range of around 50km and a claimed combined 2.8l/100km. Default driving mode is as a parallel hybrid, with the option to either optimise battery charge or fuel economy.

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British technology company Dyson, best known for its vacuum cleaners, says it’s started work on a battery electric vehicle due by 2020. Founder Sir James Dyson, revealed the news in a letter to employees, where he announced that a team of more than 400 are already working on the vehicle.

Arval strengthens carbon-neutral solutions Arval is to accelerate its expertise in carbon-neutral fleet solutions and services with the opening of a subsidiary in Norway. Located in the Oslo area, the new subsidiary will play a vital role in providing a “spearhead for carbonneutral fleet car mixes and related services”, according to the firm.

in numbers

Source: The Climate Group

6k 10

Charger production capacity per year at a new manufacturing site opened in Brisbane by Australian EV charging specialist Tritium.

Founding members of new EV100 emissions reduction programme. Source: Tritium

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business news Octo Telematics to acquire UBI assets of Willis Towers Watson cto Telematics is to acquire the usage-based insurance (UBI) assets of Willis Towers Watson as the two firms also partner for future telematics products. The deal, made for an undisclosed amount, includes Willis Towers Watson’s DriveAbility solution and the DriveAbility Marketplace while Octo will also develop a strategic alliance with Willis Towers Watson on additional auto telematics opportunities to enhance both companies’ suite of products and services. Key Willis Towers Watson personnel will also join the Octo team.

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ALD reinforces presence in Latin America LD Automotive has reported the launch of greenfield operations in Colombia as it looks to reinforce its presence in Latin America. Based in Bogota, the operation enables the group to take advantage of the growth potential of the full-service leasing market in Colombia. ALD has been operating in the Latin American region for more than 10 years with an existing presence in Brazil, Mexico, Chile and Peru. ALD along with strategic North American partner Wheels Inc also has regional coverage through targeted partnerships in Central America with Arrend Leasing, as well as in Argentina with AutoCorp.

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UK’s Fuel Card Services spearheads European expansion CC Plc is to expand its UK fuel card operation, Fuel Card Services Ltd, into Europe with the opening of operations in Germany. Located in Essen city centre, the new business will trade under the name FCS Europe and will use a similar business model to the UK with a focus on service and fuel savings. The business will offer fuels through Esso and OMV that will additionally give access to the Shell and Routex networks – covering around 6,000 fuel sites in total.

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Pan-European alliance for road services opens for business new pan-European road services alliance that will provide a single point of contact for fleet and leasing customers has launched. The new alliance provides a single pan-European point of contact for motoring services. The ERA Automotive collaboration between the RAC, Europ Assistance, Falck and VHD builds on an existing partnership announced nearly a year ago and will cover the majority of countries in Europe, including the UK, the Nordics and Baltic countries and across all continental Europe. Also aimed at carmakers and insurance firms, the alliance will develop innovative breakdown services consistently across Europe using a single customerfacing identity that brings simplified pan-European account management.

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fleetinquotes a few soundbites from a month in fleet

Drive the Future is about delivering strong, sustainable growth benefiting from investments in key regions and products, leveraging Alliance resources and technologies, and increasing our cost competitiveness. Carlos Ghosn, Renault chairman and CEO

Together [with Willis Towers Watson], we can extend our geographical reach and leverage our respective established networks to maintain a leading position in enabling consumers and insurers to gain the maximum benefit from accurate telematics data.

Fabio Sbianchi, Octo Telematics CEO

The Dieselgate scandal showed us a cosy stitch-up between manufacturers and the authorities will do nothing to reassure the public that the industry has learned its lesson after Dieselgate.

James Thornton, ClientEarth CEO


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SPOTLIGHT Nissan LEAF

Thinking mainstream The second-generation of Nissan’s pioneering electric hatchback arrives early next year, with more range, better performance and less challenging styling. Alex Grant finds out more.

More power, more range Perhaps the most important part of the new-generation LEAF is a 50% increase in electric range compared to the biggest battery in its predecessor. Nissan says developments in electrode materials and battery chemistry have enabled the battery capacity to grow from 30kWh to 40kWh without changing the external dimensions of the pack. In turn, that provides a range of 378km (NEDC) to a full charge. That’s paired with livelier performance; power has increased from 110hp to 150hp, with an uplift in torque. Essentially, if the old car was roughly equivalent to a 1.6-litre diesel engine, the new one is more in line with 2.0litre units. Charging times have increased slightly due to the larger-capacity battery, ranging from eight hours on a standard 3kW (16-amp) unit, to an 80% recharge in 40 minutes on a rapid charger. Nissan says a more powerful, longer-range version will follow late next year, with the 204hp, 500km range of the Opel Ampera-e in its sights.

Removing Barriers External dimensions are almost unchanged, but the most radical update between generations is the design, now aligned with the likes of the new Qashqai and Micra rather than the car it replaces. Within that same footprint, boot space has increased by almost a fifth as well as being re-shaped to offer a more uninterrupted load area. The outgoing LEAF’s loadspace had been compromised by the bulky on-board charger at launch. Customer feedback has played a significant role in developing the new car. There’s a new power steering setup aimed at offering a more natural feel and extra confidence at motorway speeds, wind noise has been reduced and the new 7-inch touchscreen navigation system includes Android Auto and Apple CarPlay connectivity. AC charging is now done via the more common Type 2 connector, and the sockets are angled upwards to save drivers bending over to plug in.

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Easier Driving The LEAF gets Nissan’s latest driver assistance systems, some of which debuted on the updated Qashqai this summer. ProPilot offers active lane-keeping, speed and distance control between 30km/h and 100km/h on single-lane roads, and can bring the car to a full stop in traffic. It also gets ProPilot Park, which can control steering, acceleration, braking and gear selection to manoeuvre into a space hands-free. Electric driving offers a few more benefits. All versions get the ePedal system, which enables a claimed 90% of driving to be carried out using just the throttle pedal. When fully released, this uses regenerative braking and the conventional brakes to bring the car to a full stop and hold it in position until the throttle is pressed again. The brake pedal is apparently only required for harsh braking.

What we think...

FLEET FACT Nissan has sold 283,000 LEAFs worldwide since 2011.

The outgoing LEAF was a trailblazer for electric mobility, widening its appeal beyond early adopters. Arguably it’s lost a bit of its unique identity with the Micra-esque styling, but it’s a sign of how mainstream the technology is becoming. Though, with the ZOE still offering more range, Nissan may be missing a trick by not offering the larger battery option from launch. AG

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IVIEW_MCole_Kia_IFW_Nov17.qxp_Layout 1 20/10/2017 15:22 Page 1

INTERVIEW Michael Cole, Kia Motors Europe

What are Kia’s aims and targets for the European fleet market with new and existing models? We’ve now got a full range of cars and the Optima and Optima Sportswagon – particularly in mainland Europe – are really important to us because that’s where a lot of the fleet business is. Kia is still a relatively young and retail-focussed brand and we didn’t really have the fleet infrastructure, but we’re creating that now. It’s a great opportunity, certainly in terms of C-segment, D-segment and SUVs becoming fleet prospects and we have the right product line up to do that. We see real opportunity in fleet. Nearly 60% of our sales in Europe are to the private market – almost the reverse of the market average. That’s down to our focus on private market growth and we’re still relatively supply constrained. We’ve used the UK as the business model, we’ve created all the material and shared it with all the markets. It’s effectively a roll out of the UK programme to the rest of Europe. What are your initiatives for keeping fleet costs down for companies? We’ve talked about the issue of Total Cost of Ownership (TCO) and a key element is always the service and maintenance costs. We don’t have a fleet services programme, so we’re looking now at package servicing programmes for fleet. Obviously, with our white label fleet partners, we’re looking at offering maintenance, full service, leasing packages, but the opportunity is how we keep the service, maintenance costs low. I’m pushing every market to have service maintenance programmes in place, with a very clear message – ‘this is the cost of maintenance for the vehicle’. We’re not there yet, but our aim is that people will know the total cost. Are there any changes to Kia’s electrification plans considering recent announcements such as the UK government’s plan to ban diesel and gasoline vehicles by 2040? We’re moving on all these technologies, but we don’t believe there’s a silver bullet. Instead we’re working on electrification, with electric Soul already available in all markets and new vehicles launched in Frankfurt. We have plans for mild hybrid, not to be announced just yet. So we’re looking at all the different solutions, that will enable us to get where we need to be. Particularly 2020 with the CO2 targets, obviously NOx levels are coming into high focus considering what’s happened in Germany – with the changes to the testing programme. We already had these plans in place and how to deliver those solutions. I don’t think the announcements made about banning petrol and diesel make a big difference to that, it’s a journey and we’re on the road already.

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“We see real opportunity in fleet.” Michael Cole, chief operating officer at Kia Motors Europe talks to Martyn Collins about alternative vehicles, new products and the future of fleet.

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INTERVIEW Michael Cole, Kia Motors Europe

“We don’t have a fleet services programme, so we’re looking now at package servicing programmes for fleet.” your opinion on government emissions → What’s announcements, such as the UK? It’s a headline story, but let’s be honest there’s quite some way to go to 2040. Personally I think we have to consider all the alternative powertrains, because I think clean diesel can be part of a future solution. So I don’t think this is the death of diesel. Air quality is a major responsibility and we have to contribute to that as a car manufacturer – but I don’t think we should rule out any particular technology for 20 years down the line. Do you think there should be more explanation to help understanding? Manufacturer bodies such as the SMMT in the UK are working hard trying to make sure that out of these discussions people understand. I think everyone’s aligned, it’s not that we disagree – clean air is the goal. We take our responsibility very seriously, not assuming that any particular powertrain will be decimated. The reality is can we really go to 100% electrification? I’m not sure about the logistics, first how would we generate the power? Secondly, where would we put the charging stations in inner cities? I think it would be a real challenge. What does the growth of the hybrids and electric mix in the Kia line-up mean for fleets in Europe? As we’re not such a big player in fleet, I haven’t looked at this, but I can tell you that we sold seven times as many Eco cars as we did last year, mainly down to the introduction of the Niro hybrid. We’re going to offer a plug-in hybrid version of the Optima Sportswagon and that will open doors for us into fleet customers, where maybe we haven’t had the opportunity before. With having products like Niro, we are seeing fleet customers moving into them as well, rather than sedan and hatchbacks. So having that alternative technology, will help us grow our fleet volumes.

Do you think on the flip side, hybrid and electrics will have a negative effect on the values of Kia’s diesel and gasoline cars? It’s not had that effect yet, ironically we’re seeing hybrid sales grow as we’ve introduced Niro into the market. So far this year, the loss in the diesel market has gone to gasoline, it’s not gone into hybrid or electric. There will be some changes to that, we see opportunities to grow in some markets more than others Scandinavian markets, although Norway’s already an electric car market, the Netherlands and the northern European markets are moving towards plug-in hybrids. So it varies region by region, but yes I think that growth in those technologies ultimately will draw sales from other powertrains, diesel is probably the one, inevitably. People have bought diesel for the efficiency, fuel economy and if a plug-in hybrid can start to offer that, diesel has not got such a good PR story – that’s maybe where the customers will drift. What are your thoughts on people using cars rather than buying them? We’re seeing it already to be honest – in a different way. Ownership is not as important to people as it was 20 years ago, we’ve seen it in the private market with PCPs and we’re seeing it with private leasing, which is still a use rather than an ownership programme, but it’s dedicated usage. I think there’s already that cycle of monthly payment, it’s a much more common way of buying a car rather than traditional HP. So there’s that transition already, but I think people still want that dedicated usage. What are your thoughts on autonomous cars and how do you feel it will effect the fleet market in Europe? We’re moving closer all the time to full autonomy, it’s the technology in cars today, in terms of the vast driver assistance systems that we have. This means we’re inevitably moving closer to a car that basically is hands off, eyes off. I still think there’s a long way to go though, not with the technology, but with all the other issues such as insurance, liability, concerns about hacking, that type of thing. I think we have to almost accept this is the way, however long it takes and the technology will probably be there before all these issues are resolved.

Kia hopes the plug-in Optima Sportwagon will be a big car, especially with fleet buyers.

22 / internationalflfeetworld.com


ADVERT_WORKSHOP_FW_Nov16_Layout 1 04/11/2016 18:23 Page 1

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FEATURE_RiskMgt_IFW_Nov17.qxp_Layout 1 20/10/2017 14:24 Page 1

FEATURE Risk Management

HOW MUCH RISK ARE YOUR DRIVERS EXPOSED TO? A fleet manager’s main concern is typically the vehicle, but what about the driver? Klaus Allion, managing director at ANT Telecom, warns not to underestimate health and wellbeing of those behind the wheel.

ealth and safety is of the upmost importance to fleet managers, with plenty of rules being in place surrounding the number of hours a worker can drive for, as well as the amount of breaks they need to take on any given journey. There is also guidance on lifting and moving heavy goods in and out of vehicles. To help managers in their jobs, new technologies have made a big difference. It’s now not uncommon for vehicle fleets to be fitted with GPS trackers and telematics systems to help businesses monitor drivers, as well as to know the location of vehicles and to help monitor the maintenance of them. A broader range of vehicle safety systems – such as CCTV and braking and stability systems – have also been developed and their specification on fleet vehicles is on the up.

H

Going solo When it comes to drivers working on business, however, including breakdown recovery drivers and engineers, it's rare for there to be more than one driver in a cab or van. Therefore, most regularly spend a lot of time on their

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own, without any contact from other employees or supervisors. This situation classifies them as lone workers. In fact, according to members of the British Security Industry Association (BSIA)’s Lone Worker section, the groups facing the highest levels of risk are drivers, including those working in long-distance HGV road haulage as well as LCV or local delivery drivers. Having lone workers means increased responsibility for fleet managers – and hauliers and distributors must evaluate the risk their employees are exposed to. It is imperative that the fleet managers are providing the right level of cover to ensure they are as safe as possible. From this scenario, there are two important initial questions for all employers: if something should happen to a driver, how would they know and what process is in place should an emergency arise? Many drivers travel to locations all over the country – some to very remote locations – and sleep in service centres and laybys when taking breaks. Whilst having trackers and CCTV on vehicles can tick a box in terms of a health and


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FEATURE Risk Management

and security point of view, they → safety aren't able to provide extensive

protection to an employee when a vehicle is stationary. Many companies may check in with their drivers a few times a week, but what happens if an incident occurs in between checks? Some companies may even go a step further and provide drivers with lone worker devices with tilt sensors that can alert a colleague to an incident. And though this is a step in the right direction companies shouldn’t just stop there as triggering an alarm doesn’t always mean help will arrive.

The importance of communication The reality is that employers have a duty of care to their employees and as the regulatory scrutiny of corporate health and safety measures increases, they must renew their efforts to ensure lone workers are adequately protected. The need to provide lone workers with the most appropriate systems of communication has never been greater. To progress, fleet managers should consider reviewing their current means of protecting lone workers – and take an holistic and inclusive approach to developing a more robust system. Through independent advice and thorough environmental analysis, organisations can best develop a customised approach that is fit for purpose.

“The reality is that employers have a duty of care to their employees and they must renew their efforts to ensure lone workers are adequately protected.”

26 / internationalfleetworld.com

Know who’s driving It’s all very well looking after the people driving fleet vehicles, but it pays to make sure you know exactly what you’re signing up to when you employ them. Some employers wrongly believe that by taking a photocopy of an employee’s driving licence means they fully comply with health and safety laws. Others don’t realise that if they ask an employee to pop to the shops in their own car for a pint of milk then they should be treated the same as official company car drivers and are subject to vehicle and driver safety checks. Some health and safety managers have admitted their bad practice and lack of knowledge about legal responsibilities to their staff who drive for work. The grey fleet was “a grey area” for many with some managers revealing they only knew which staff were driving on their behalf when expense claims were submitted. Large and small companies are being encouraged to try out fleet risk audits to find out how they could improve and compare their protocols to industry best practice. Those who have used TTC DriverProtect have been keen to discuss how compliance and managing work-related road safety can easily be part of daily work activities, according to the company’s marketing manager Jo Baugh. “One of the main talking points was grey fleet where one in six businesses do not carry out any checks at all. Some were aware of the need to manage grey fleet but didn’t know where to start,” says Baugh. “Others were doing it to a certain extent but some just did not realise that they actually had grey fleet drivers. “The rule is simple: if you are driving at work you are driving for work and grey fleet drivers must be treated in exactly the same way as company vehicle drivers,” adds Jo. She also reveals that more than one fifth of drivers and 8% of vehicle owners used out of date documents which meant they were illegal to drive. With a quarter of all road collisions involving someone driving for work, the responsibility was now on employers to manage and reduce the risks of road traffic incidents for their employees. TTC DriverProtect helps employers properly manage work related road safety and meet duty of care responsibilities with fleet audits, policy management, driving licence checks, driver risk profiling, e-Learning, in-house workshops, on-road driver training, behavioural change and grey fleet management.


ANALYSIS_IFW_Nov17.qxp 20/10/2017 13:28 Page 1

ANALYSIS Residual values

Remarketing notes Analysing the resale value of the LAND ROVER DISCOVERY Dieter Fess provides the details for the seven-seat family SUV. What the manufacturer said at launch:

About the residual value grades

Demand for Discovery has always been strong in our home market; the new Discovery will build on this, offering customers the most complete all-round SUV package available anywhere today. The new vehicle takes absolutely everything that is great about Discovery from its design, its versatility, its go anywhere, do anything credentials and builds on them to make it better in every way. The new Discovery is for the digital age. Ingenious technology keeps families safe, connected and confident on all surfaces, all terrains and in all weathers to ensure every destination is reached.

The residual value grades assess the residual value performance of the car model in question. Additional to the grades, a short statement addresses some of the cars’ characteristics or other factors, which are relevant to its residual value performance. The residual value grades are calculated according to their residual value percentages and the monetary depreciation within three years after the purchase as a new car, considering a common mileage for the respective segment. The performance is put in relation to the residual value performance of competitor models.

About BF Forecasts What BF Forecasts say now: The price range of the Discovery lies somewhere between Evoque and Range Rover Sport. The look of the “Disco”, however, is closer to that of the Range Rover. Generally, the Land Rover family is well represented amongst those cars, which achieve the highest residual values. This does apply to the Discovery as well. The reason for the lower Spanish residual value grade lies in the registration tax in Spain, which is linked to the emission of the car. Because of that, there is a substantial amount to be paid for the Discovery and there will be no refund even if the car is being sold outside Spain. Brand: Land Rover Model: Discovery Available since: 2017 Prices from: (incl. VAT) Engines:

France

Germany

Spain

€50,800

€52,000

€57,600

Petrol

Diesel

300hp

180hp

340hp

240hp

BF Forecasts is an independent supplier of accurate and transparent residual value forecasts as well as used car value data for the past and current used car market. BF Forecasts has been providing such data to leasing companies (both captive and non-captive), OEMs, NSCs, major company fleets as well as to insurance and investment companies inside and outside of Europe since 1998.

RESIDUAL VALUE GRADES 10 9 8 7 6 5 4 3 2 1 France

Germany

Spain

258hp Text and data: bähr & fees forecasts GmbH ( Ø- Values; Trade; 36; Mon; 75TKM;10-2017)

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FLEET FOCUS France

The French winning formula for used cars France is beginning to change its mindset to online selling, says Autorola France country manager Pierre Emmanuel Beau.

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Photo: Shutterstock.com

utorola France has seen a change of approach by some OEM vendors in 2017 with them looking at new ways of reaching used buyers, particularly through online channels. The EAuction was new to the French market when it was launched in early summer with vehicles being offered for sale on the Autorola portal at a pre-advertised time, with online offers being made by remote buyers across France and beyond. The auction is all over in around two hours and the vendor is on hand to make quick decisions on vehicles during the auction. One of the first brands to sign up to the EAuction concept was Mercedes-Benz Vans. The brand is now on its third sale and not only is it reporting great conversion rates but it is beginning to build a reputation and buyer base all over Europe.

A

THE BENEFITS OF INNOVATION Like so many countries the French used industry is quite fixed in the way the market sells used vehicles to buyers but we have seen more vendors keen to look at new ways of selling their used stock in 2017. They are being more innovative and adventurous, which as an online remarketing provider excites us. We are working with some great vendor partners who now understand the power of online selling. I like to think of it as a change of mindset.

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→


FLEET FOCUS_France_Nov17.qxp_Layout 1 20/10/2017 14:19 Page 3

FLEET FOCUS France

Mercedes-Benz is seeing two out of every three used vans sold at EAuction. The stock ranges from 12-24 months old with 20-100,000km on the clock. In the last EAuction 60% of bidders were in France, which included most of the country’s Mercedes-Benz dealer network, while 40% of nonMercedes dealers were from outside France. Buyers from 15 countries bid on the used vans that were remotely stored in two compounds in Paris and Marseille with cataloguing and images taken and then uploaded online prior to the sale being marketed to buyers. MAKING LIFE EASIER Mercedes-Benz is rightfully very proud of being an innovator in the market and has been a little surprised that its stock has generated such a wide geographic interest. Mercedes-Benz dealers and independent buyers have been competing side by side for the used vans, and our administration has been set up so that if a Mercedes dealer buys a van then it is automatically invoiced to them from head office and it counts towards their annual sales target. They also receive access to wholesale stocking finance for 60 days. The energy and can-do attitude of the vendor has certainly helped us sell more used vans faster to our Europe-wide buyer base. Citroën sells around 200,000 used cars into the French market each year and it has been piloting EAuction, selling ex-daily rental cars from five compounds all over France directly to the online buyer. Stock varies from 50-70,000km

30 / internationalfleetworld.com

and is up to two years of age, which is considered as good quality used stock by buyers. Citroën leaves it to Autorola to fix the reserve for each car using its Indicata real time used car online pricing tool. USED CAR CONFIDENCE We use our expertise in the market to set reserves, which is a big responsibility for us but one we enjoy. We are working in the market every day and Citroën has the confidence to leave us to get the best price for each car. We have to set realistic reserves for the used cars to ensure they sell, and so far each sale has seen an 80%+ conversion rate. The online sale is more cost effective than physical auction as there are no transport costs prior to the car being sold. With a country as big as France that also means stock is being offered for sale more quickly. The rare unsold cars can move to another channel quickly and at no cost. Autorola France sells used cars online for a number of different vendors, but the next one to sign up to EAuction is a German car brand. They have seen how successful the formula has become by offering stock in the open market. Competition improves prices, and the dealer network gets the same chance to buy stock from the OEM but just in a slightly different way. The French remarketing industry is beginning to modernise and try different things. Just like the new car sector, the used market is changing, and change is usually good to move forward.


FLEET FOCUS_France_Nov17.qxp_Layout 1 20/10/2017 14:19 Page 4

Source: FocusEconomics Photo: LMspencer/Shutterstock.com

French economics rance’s economy is expected to accelerate this year and next on the back of strong domestic demand and growth in exports. A clear political panorama at home has generated optimism and is fuelling robust growth in fixed investment, while low inflation and reduced unemployment should provide a boost to private consumption. Panelists participating in the FocusEconomics Consensus Forecast expect GDP growth to accelerate mildly to 1.6% this year. For 2018, the panel also foresees growth of 1.6%, which is unchanged from last month’s forecast. The consumer confidence indicator produced by the National Institute of Statistics and Economic Studies (INSEE) dropped from 103 points in August to 101 points in September. The undershooting market expectations of 103 points, marks the third consecutive monthly decline from the multiyear high observed in June. Despite the drop, the indicator remains slightly above its long-term average of 100 points, where it has been since January. The indicator crossed the threshold in January for the first time since September 2007. September’s decline marks a more pessimistic assessment of both, personal finances and the country’s economic outlook. The personal financial situation in the upcoming and past 12 months declined substantially in the surveyed month. Expected and current savings capacity also declined in September even though both subcomponents are still resting above their respective long-term average. The decline in future savings capacity partly reflects growing expectations of higher inflation in the upcoming year. French consumers also viewed the country’s economic outlook in a more negative light with future standards of living declining and approaching its long-term average. Lastly,

F

unemployment fears rose sharply and reached its April 2017 pre-presidential election reading. The FocusEconomics panelists also expect private consumption to increase 1.4% in 2017, which is unchanged from last month’s forecast. The panel expects private consumption to grow 1.5% in 2018, which is unchanged from last month’s forecast. Looking at the wider French picture, President Macron scored an important victory on 22 September when he signed his flagship labour reform bill into law in spite of protests and criticism over his use of executive powers. The reforms, passed by presidential decrees, will cap severance payments and make it easier for firms to lay off and hire workers to improve competitiveness, among other measures. These policies should rekindle faster growth in the medium term and provide further impetus to the economy if current dynamics persist. GDP growth for Q2 was confirmed at the 0.5% quarter-on-quarter increase reported previously, reflecting higher corporate investment, stronger growth in residential construction and healthy consumer demand supported by a strengthening labour market. The latest survey-based data from the third quarter and beginning of the fourth quarter is positive and suggests that the growth momentum will carry through the second half of the year.

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PROFILE_VW_IFW_Nov17.qxp 20/10/2017 12:02 Page 1

PROFILE Volkswagen

E-Power to the people Following a tough two years, Volkswagen is beginning a period of renewal. An era of broader product ranges targeting fast-growing segments, affordable electric vehicles and new ways of using the car.

“South America is Volkswagen’s smallest volume region, but also its fastest-growing.” 32 / internationalfleetworld.com


PROFILE_VW_IFW_Nov17.qxp 20/10/2017 12:03 Page 2

Manufacturer Volkswagen Total key region sales 2016 5,987,800 Headquarters Wolfsburg, Germany Global market share 2016 8.6% No. of models 22

view from the top

Stabilised by new markets… lthough few would envy Volkswagen’s recent fortunes, in the two years since the company was rocked by diesel and CO2 emissions scandals, it’s shown there’s still plenty of strength in the brand. Passenger car sales to the end of September 2015 numbered 4,349,600 units and, having recorded stable volumes a year later, volumes during the same period of 2017 totalled 4,490,900 units – up 3.2% on 2014, its last pre-scandal year. Growth over the last year has not been led by its home region of Europe, where sales dropped 10,000 units year-on-year to the end of September – a 0.8% decline. Germany recorded an even larger fall, down 7.4% to 399,800 units, despite Volkswagen offering an “environmental bonus” of up to €10,000 against vehicles which comply with Euro 6 emissions standards. Downturns in Europe’s largest markets were offset partly by Eastern Europe, the region up 24,000 units (15.1%) year to date. Russia, too, recorded healthy growth of 17.9% to 62,100 units, only months after the brand broadened its partnership with GAZ Group to produce vehicles locally until 2025. The picture is more positive in the United States, which saw a 12.4% year-onyear sales decline in the first nine months of 2016, falling from 264,200 units to 231,300. So far this year, the brand has sold 252,500 cars in the region, up 9.2%, helped by introducing the Atlas SUV and new Tiguan. The Golf SportWagen has also become a staple part of the range with an 8.8% share (22,171 units, up 161.5% on the same period of 2016). SUVs were also vital for growth in China, which now accounts for almost half of the brand’s passenger car sales worldwide. The Teramont (sold as the Atlas in North America) and Tiguan contributed to a 3.2% increase in volumes from 2,133,100 units to 2,200,400. Growth in the Asia-Pacific region will be bolstered further by the brand’s re-entry into Iran in August, after a 17-year absence, initially with the Tiguan and Passat, imported under contract with local company Mammut Khodro. South America is Volkswagen’s smallest-volume region, but also its fastestgrowing. Bolstered by the Polo-sized Gol hatchback, and its sedan sister car the Voyage, the carmaker reported a 24.0% increase in units to the end of September; 315,200 sales in total, compared to 254,200 in the same period of 2016. JATO figures for the 2016 calendar year reflect ongoing popularity of its core models. Volkswagen’s global biggest-seller was the Golf, at 859,845 units (-8.2% year on year), which is comfortably ahead of the Ford Focus (732,893). Likewise, the Polo remained stable at 601,096 units, ahead of the Fiesta at 447,721, despite both being replaced this year. The Jetta and Tiguan were its third and fourth biggest-selling products, at 588,213 and 517,156 units respectively.

A

Volkswagen Global sales, by territory Territory

Jan-Sept 2016

Jan-Sept 2017

% change

1,288,300

1,278,300

+0.8%

North America

423,900

440,000

+3.8%

South America

254,200

315,200

+24.0%

Asia-Pacific

2,264,900

2,324,700

+2.6%

Total

4,374,800

4,490,900

+2.7%

Europe

Dr. Herbert Diess, chairman of the board of management, Volkswagen Passenger Cars, speaking at the IAA 2017, Frankfurt Electric Mobility: For 70 years we have been making our contribution to individual mobility all over the world. Our mission is to make modern technology accessible to lots of people. To do that, we will be investing €6 billion in e-mobility over the coming five years. The aim of our electric offensive is to set a standard for e-mobility. With vehicles that are reliable and suited to everyday use, vehicles that are fun – and that people can afford. The I.D. will have a price tag similar to a Golf diesel with comparable features. The Golf of the future must once again be a Volkswagen! I.D. products: These three vehicles belong to our starting line-up for Volkswagen’s electric offensive which we will be rolling out in quick succession from 2020. The I.D. – the compact car for the Golf-sized segment. The new I.D. Crozz – the modern SUV for all roads and terrains. And the I.D. Buzz – which transfers the legendary Volkswagen Bulli feeling to the future. More vehicles are in the pipeline: for Europe, for the Americas and, above all, for China. Connected Cars: “vw.OS” is the name of our new operating system for the intelligent control of our I.D. vehicles. “vw.OS” enables fast software updates and vehicle system upgrades that make the car better and better. I’m sure you are familiar with such systems from your smartphones. The car and the driver have permanent access to cloud features such as charging or parking. In other words; the car becomes an internet hub on wheels. This is the basis for us to develop models that herald the start of a new design era for Volkswagen as well.

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PROFILE_VW_IFW_Nov17.qxp 20/10/2017 15:19 Page 3

Where

Manufacturing plant locations

15

16

are they made?

17

18 19

20

2 31

7

6

21

5 1

2 3 4 5 6 7

Europe Wolfsburg (Germany) – Golf, Golf Sportsvan, Touran, Tiguan Emden (Germany) – Passat, Arteon Zwickau (Germany) – Golf, Passat Palmela (Portugal) – T-Roc, Sharan Pamplona (Spain) - Polo Bratislava (Slovakia) – Touareg, Up Kaluga (Russia) – Polo Sedan, Tiguan

9

8

FIN fleet in numbers

150 million vehicles produced globally as of August 2017

€3.5bn investment in optimising gasoline, diesel and natural gas powertrains by 2022.

40%

expected SUV share of Volkswagen’s global sales by 2020

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22

17 10

23 16 21 19 22

23

15 24

12 11 13 8

14

11

9

Africa Uitenhage (South Africa) – Polo, Polo Vivo

20

18

4

Asia Pune (India) – Polo, Vento, Ameo Shanghai (China) – Polo, Lavida, Tiguan, Touran, Phideon Chengdu (China) – Jetta, Sagitar Urumqi (China) – Santana Nanjing (China) – Lavida, Passat Changchun (China) – Bora, CC, Magotan Changsha (China) –Lavida, Touran Foshan (China) – Golf, Golf Sportsvan Ningbo (China) – Lamando, Teramont Yizheng (China) – Santana

10

North America Chattanooga (USA) – Passat, Atlas Puebla (Mexico) – Jetta, Beetle, Golf

12

13 14

South America São José Dos Pinhais (Brazil) – Fox, Suran, Golf Ancieta (Brazil) – Gol, New Saveiro, Jetta Taubaté (Brazil) – Gol, Up, Voyage Pacheco (Argentina) – Suran

Redefining the “People’s Car” olkswagen went through a period of reflection following the emissions scandal. As a Group, it’s begun laying out plans for its near-future recovery and the changing automotive landscape, under a plan called Transform 2025+. The aim is to increase productivity and return unprofitable regions to at least break-even by the end of the decade, while streamlining its processes, and exploring new drivetrain and mobility technologies. By 2020, the entire product range will have been renewed, with some additions. Near-future plans include a global portfolio of 19 SUVs, building on strong demand for the Tiguan (now offered with seven seats for the first time) and for the Atlas in North America, also sold as the Teramont in China. The T-Roc will arrive in its launch markets by the end of the year, followed by the smaller T-Cross and a new Touareg flagship in 2018, while the compact Taigun will target emerging markets shortly afterwards. Volkswagen expects the T-Roc, which is platform-shared with the Golf, to be one of its best-selling models. That SUV portfolio will also include a production version of the I.D. Crozz, from Volkswagen’s “I.D.” electric vehicle sub-brand. The Group wants to be leader in emobility by 2025, selling a million plug-ins each year, and Volkswagen as a brand will have 23 fully-electric cars by that point. I.D. will comprise at least four vehicles; a hatchback, crossover and an MPV and van inspired by the 1950s Transporter and Microbus, which are all confirmed for production. Expect electric and/or plug-in hybrids across most of its best-known nameplates in the meantime, developed using a modular electrification “toolkit” which standardises parts to cut costs and development time. Of course, there’s still a role for the combustion engine, and Volkswagen isn’t neglecting these. In the near future, all of its diesel engines will have selective catalytic reduction to cut harmful nitrous oxide emissions, while all gasoline engines will have particulate filters. A new generation of combustion engines will be released in 2019, and the Group is researching synthetic fuels, which can be made using renewable energy, to power them. Brand CEO Dr. Herbert Diess said: “2016 was a pivotal year for the Volkswagen brand. It was a year of transformation. And a year that marked the start of a new phase for our company. We devoted immense energy to the diesel crisis. We initiated the transformation in business operations. And, we laid the groundwork for the strategic realignment of the brand.

V


PROFILE_VW_IFW_Nov17.qxp 20/10/2017 12:05 Page 4

Volkswagen fleet model range

Up

Fox/Suran

Polo

Variants: 3/5dr hatch Markets: Europe, Asia, Africa, North America, South America. Fuel: 4.1-4.6l/100km (exc. Electric) CO2: 96-104g/km (exc. Electric)

Variants: 3/5dr hatch, crossover, MPV Markets: North America, South America. Fuel: 5.9l/100km* CO2: 139g/km*

Variants: 5dr hatch Markets: Europe, South America, Oceania. Fuel: 4.4-4.8l/100km CO2: 101-108g/km

Polo/Vento/Ameo

Polo Vivo

Gol/Voyage

Variants: 5dr hatch, 4dr sedan Markets: Europe, Asia, Africa, North America, South America. Fuel: 4.1-6.5l/100km CO2: 108-154g/km

Variants: 5dr hatch, 4dr sedan Markets: Africa. Fuel: 6.2-6.9l/100km CO2: 147-163g/km

Variants: 5dr hatch, 4dr sedan Markets: North America, South America. Fuel: 5.4-5.6l/100km* CO2: 125-129g/km*

Santana

Golf

Scirocco

Variants: 5dr hatch, 4dr sedan Markets: China. Fuel: 4.6-4.9l/100km* CO2: 107-114g/km*

Variants: 3/5dr hatch, wagon Markets: Global. Fuel: 1.6-7.1l/100km (exc. Electric) CO2: 36-165g/km (exc. Electric)

Variants: Coupé Markets: Europe, Asia, Africa, South America. Fuel: 4.2-8.0l/100km CO2: 110-187g/km

Jetta/Sagitar/Lamando

Beetle

Variants: 4dr sedan Markets: Global. Fuel: 4.7-7.8l/100km CO2: 123-181g/km

Variants: Coupé, Cabriolet Markets: Europe, Asia, North America, South America. Fuel: 4.3-6.9l/100km CO2: 114-160g/km

→ ­internationalfleetworld.com­­/­ 35


PROFILE_VW_IFW_Nov17.qxp 20/10/2017 12:05 Page 5

PROFILE Volkswagen Volkswagen fleet model range

Passat/Magotan

Passat NMS

Arteon

Variants: 4dr sedan, wagon Markets: Europe, Asia, Africa, South America, Oceania. Fuel: 1.7-7.2l/100km CO2: 38-164g/km

Variants: 4dr sedan Markets: China, North America. Fuel: 5.8-8.9l/100km CO2: 135-206g/km

Variants: 5dr hatch Markets: Europe, Asia, North America, Oceania. Fuel: 4.2-7.3l/100km CO2: 110-164g/km

Phideon

Golf Sportsvan

Touran

Variants: 4dr sedan Markets: China. Fuel: 7.0-9.1l/100km CO2: 162-211g/km

Variants: MPV Markets: Europe, Asia. Fuel: 4.1-5.6l/100km CO2: 106-130g/km

Variants: MPV Markets: Europe, Asia. Fuel: 4.5-6.2l/100km CO2: 118-142g/km

Sharan

T-Roc

Tiguan

Variants: MPV Markets: Europe, Asia. Fuel: 5.0-7.3l/100km CO2: 130-168g/km

Variants: crossover Markets: Europe, China. Fuel: 5.1-7.0l/100km CO2: 117-155g/km

Variants: crossover Markets: Global. Fuel: 4.7-8.4l/100km CO2: 123-195g/km

Touareg

Atlas/Teramont

Variants: SUV Markets: Global. Fuel: 6.7-9.1l/100km CO2: 175-239g/km

Variants: SUV Markets: North America, China Fuel: 7.5-10.1l/100km CO2: 174-234g/km

36 / internationalfleetworld.com


ADVERT_EVFW website_Jan17_Int_Layout 1 27/02/2017 18:51 Page 1

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ROAD_AlfaRomeo Stelvio_IFW_Nov17.qxp 20/10/2017 13:51 Page 1

Alfa Romeo Stelvio Is Alfa’s first SUV a brand extension too far? Alex Grant doesn’t think so. SECTOR SUV PRICE €40,000-€56,000 FUEL 4.7-7.0l/100km CO2 124-161g/km

ack in 2014, Alfa Romeo revealed plans for an allnew generation of cars; light-weight, rear-wheel drive and focused on putting agility and driver enjoyment back into the brand. The Giulia spearheaded that relaunch last year, but an SUV is a prerequisite for premium brands, and the Stelvio offers an even bigger sales opportunity than its sedan stablemate. You can groan at the idea of a marque once known for svelte coupes and featherweight sports sedans launching a bulky off-roader, but Alfa Romeo hasn’t neglected its brand identity here. Named after a winding mountain pass in Italy, it’s pitched somewhere between coupe-SUVs like the BMW X4, and the more practicality-led offers such as the Audi Q5. Its closest rivals are the Jaguar F-Pace and Porsche Macan. So, like sports-tuned Alfas of old, the start point is low weight. The Stelvio gets a re-tuned version of the Giulia’s chassis, with a carbon fibre propshaft and plentiful use of aluminium in the drivertrains, suspension parts and bodywork to shed kilos. Kerb weight is easily best in class, closer to equivalent versions of the BMW X1 and Audi Q3 than larger grossly under-wheeled in its lower trim levels. The upshot, SUVs, and split evenly between the front and rear axles. though, is that it’s quite large inside; the sporty styling hasn’t It shows. This changes direction with the precision of a blunted passenger space, and boot capacity is competitive, much smaller car, helped by a perfectlyextended over flat-folding rear seats and weighted, linear steering setup and four-wheel accessed via a standard-fit electric tailgate. FLEET FACT drive which puts all the power to the rear wheels For the most part, it also feels really neatly unless it’s needed elsewhere. Alfa’s eight-speed executed inside, too. The large metal paddle automatic works well too; avoiding needless upshifters behind the sculpted steering wheel are Alfa's first offshifting when you want the performance, and incredibly tactile, and embossed leathers, roader was the downshifting quickly when needed. It’s also wood inserts and deep-set instruments set it Matta, built for the aside from the more conservatively-styled managed this without jarring ride quality, or military in 1951. pitching from side to side on uneven roads. German SUVs. Unfortunately, so does the 8.8Hiding that visually is trickier. The Stelvio inch infotainment system. It’s clunky to use, looks like an upwardly-stretched hatchback from most doesn’t have Android Auto or Apple CarPlay and the small angles. It’s also incredibly colour-sensitive, relying on bolder screen isn’t helped by an inability to zoom out far enough to hues inside and out than most SUVs, and prone to looking see where it’s taking you. Most rivals do this better. From launch, the Stelvio gets a pair of 2.0-litre petrol engines, at 180hp or 280hp, and 2.2-litre diesels with 180hp or 210hp. Fleet demand is still likely to be weighted towards the latter, and it’s in line with most rivals at 127g/km CO2 for four-wheel drive versions, or 124g/km for the lower-powered engine with two-wheel drive. With a small price and fuel efficiency gap between the two, most buyers are likely to add four-wheel drive. The higher-powered version was the only available to drive on launch. As in the Giulia, it’s a little grumbly from cold and when worked hard, but there’s an impressive lack of road and wind noise while cruising and plenty of pulling power without shifting through the gears to find it. Versions with all-wheel drive can also tow up to 2.3 tonnes, for those who need it. So the Stelvio is a well-rounded first attempt at an SUV, capable of matching its key rivals in most areas while offering its own sense of style and driving dynamics. Not one for the purists, perhaps, but it should do well.

B

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ROAD_AlfaRomeo Stelvio_IFW_Nov17.qxp 20/10/2017 13:52 Page 2

what we think There’s a clear business case here, and the Stelvio works well. Alfa’s hardest job may be marketing itself in an established segment where, as a brand, it’s had no presence before. Once people drive it, it may sell itself.

highlights Four-wheel drive diesels emit 127g/km, consume 4.8l/100km. 525-litre boot capacity, under the load cover. Low weight and Giulia-derived agility.

internationalfleetworld.com / 39


ROAD_Kia Stonic_IFW_Nov17.qxp 20/10/2017 13:56 Page 1

Kia Stonic The Stonic gives Kia a conventional sub-Sportage crossover, at last, explains Alex Grant. SECTOR Crossover PRICE €16,000-€26,000 FUEL 4.2-5.5l/100km CO2 109-125g/km

hen you consider how successful the Sportage has been for Kia – not only in terms of outright sales but also for brand exposure – the gap in the line-up for a smaller crossover has taken a while to fill. That’s something the Stonic will rectify. The launch of this car is a step into the conventional; a better fit for customers’ design expectations than the square peg in a crossover-shaped hole that is the Soul, and without the cost of the hybrid system in the clever but high-tech Niro. It’s an important niche to fill, one expected to account for around 100,000 sales a year across Europe during its lifetime, without cannibalising volume from other models. That's roughly a 20% uplift. The foundations are good; the platform is shared with the new Rio, but it’s longer, taller and offers 42mm of extra ground clearance. It’s a handsome compact crossover, less challenging than the Sportage but with an obvious styling link at the back, while there’s a hint of Soul in the headlights. Chunky shoulderlines, relatively large wheels and plenty of bold colour options, with the ability to spec a isn’t as lively as you might expect. It’s more appealing with contrasting roof, bode well in a segment where styling is the 1.0-litre turbocharged petrol, which delivers its 120hp a priority. with more gusto and less noise. Lower pricing and Crossover customers tend to opt for higher115g/km CO2 emissions mean it’s not a huge specced versions and that's reflected in the leap for drivers, though there is a 20% FLEET FACT standard equipment. All include 17-inch alloy increase in fuel consumption to factor into wheels, and a 7.0-inch touchscreen with whole-life costs. Entry-level petrols with 1.2 Android Auto and Apple CarPlay, the latter and 1.4 litres are also available, but better This segment is upgraded to include TomTom navigation on expected to be 10% tuned to cost-conscious retail buyers. higher trims, and the entire range is priced It’s a decent car to drive with either engine. of the European under the entry-level Niro. European versions get a region-specific chasmarket by 2020. With limited demand for four-wheel drive sis setup, so it handles neatly despite the in this segment, Kia won't offer it. But there raised ride height, without resorting to overly are petrol and diesel options for fleets. The 109hp 1.6-litre stiff suspension or steering that’s too sensitive at high diesel comes in at 109g/km, which is competitive, though speed. The Ceed is a better highway car, but only just. it’s quite a grumbly engine in the Stonic and performance There are some compromises for those athletic looks. Although it’s almost identical in footprint to the Soul, the Stonic offers less shoulder room for passengers in both rows, and less leg room in the back. Boot space below the load cover is almost identical, and slightly less than you’d get in a Ceed, though the Soul’s flat roof and upright tailgate give it the edge as a load-mover. Sales volumes should prove that’s not a huge priority in this segment, though, and the usual dual-level floor and two-piece folding bench mean there’s enough flexibility when needed. There’s still room for adults in both rows, and though there’s an abundance of hard shiny plastics dotted around, accents of colour and that large touchscreen mean it doesn’t feel drab inside, like some versions of the Rio. This is a fast-growing segment, in part because the Stonic is one of many newcomers on the way. But, like the Sportage, this is good value, looks sharp and drives well, which should bode well for luring yet more new customers into dealerships.

W

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ROAD_Kia Stonic_IFW_Nov17.qxp 20/10/2017 13:56 Page 2

what we think A competitive offer for a booming segment. However, automatic versions would be a worthwhile add-on to keep customers from opting into one of its many competitors.

highlights Lively 1.0-litre petrol turbo engine consumes 5.0l/100km with 115g/km CO2. Android Auto and Apple CarPlay across the range. Bold colours and contrasting roof options.

internationaleetworld.com / 41


ROAD_Hyundai Ioniq_IFW_Nov17.qxp 20/10/2017 13:53 Page 1

Hyundai Ioniq Plug-in Hybrid The third part of the Ioniq family is plug-in hybrid technology done right, explains Alex Grant. SECTOR Lower Medium PRICE €30,000-€35,000 FUEL 1.1l/100km CO2 26g/km

lthough there’s no shortage of tax-efficient plug-in seamlessly in and out of electric mode depending how hard hybrid products on offer, Hyundai’s is different to it’s working. most. Rather than trying to offer warm performance The Prius has a slight advantage on economy, but the behind a short electric range, the Ioniq is laser-focused on Ioniq has the edge to drive. It’s more agile, and the dualefficiency, bolstering an already frugal hybrid system with clutch gearbox offers a sharper-responding Sport mode the ability to cut exhaust emissions during local use. for bursts of acceleration, plus paddles on the steering This gives it only one direct rival – the Prius PHV. The two column for extra control; qualities it balances with cars are similar in aerodynamic silhouette and evenly matched sublime high-speed refinement and supple ride quality on on performance and CO2 emissions, though the Hyundai has a its relatively small wheels. Where the Ioniq Electric had price advantage and is the expected biggest-selling version, to use a simplified rear suspension design to make room especially in fleet. That should give bigger volumes than the for the battery, the Plug-In has an independent setup from Prius PHV, which sells in much lower the Hybrid, and copes far better with numbers than the regular hybrid. rough surfaces. The Ioniq Plug-In gets most of its drivTrim levels are aligned to the hybrid, and etrain from the Hybrid. Its 105hp the two variants are similarly generous on 1.6-litre petrol engine and six-speed dualstandard kit, including touchscreen naviclutch gearbox are shared, and the latter gation with Android Auto and Apple is a welcome point of difference over the CarPlay, dual-zone climate control and a droney continuously-variable transmispackage of driver assistance features, sions favoured by Toyota. But the Plug-In though the Plug-In adds LED headlights, gets a power upgrade from the electric larger wheels and a pair of charging cables. motor, which produces 60hp instead of Cabin quality is generally high, with 43hp, and the 8.9kWh battery stores soft-touch non-oil-based plastics and an almost six times more energy, offering a air of durability to the switchgear. range of around 50km. However, rear headroom isn’t the Ioniq’s It’s a good all-round package. The elecstrong point, and the Plug-In loses almost The Ioniq Plug-in tric range figure is realistic, there’s a quarter of the Hybrid’s load volume to teams the useful range enough power to haul the Ioniq up to make space for the battery. of the Electric model motorway speeds without burning fuel, Arguably, though, the biggest thing and the 7kW on-board charger means it Toyota and Hyundai share is confronting with the efficient can be topped up in half the time of most a lack of public understanding. The Ioniq Hybrid drivetrain but plug-in hybrids on a suitable charging Plug-In is the way this technology should loses out in desirability point. Once that range is depleted, fuel be used, but getting people to understand to the Kia Niro. economy settles at 4.7l/100km under how it differs to most of its seemingly motorway or urban conditions, slipping close rivals is a trickier problem to solve.

A

what we think

42 / internationalfleetworld.com


ADVERT_IFW subs_IFW_May17.qxp_Layout 1 24/04/2017 14:38 Page 1

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