International Fleet World November-December 2018

November-December 2018 • internationalfleetworld.com

The new Opel

COMBO CARGO Always A l w a y s at a t hand h ann d for f o r your y o ur fleet f l e e t needs. needs.

OPEL COMBO

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November-December 2018 • internationalfleetworld.com

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The new Opel

COMBO C OMBO CARGO CARGO

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Alwa Always lways ays a att hand h and d forr your y r flee ffleet needs. nneed e d s.

INSIDE OPEL COMBO

November–December 2018 • internationalfleetworld.com

04 Editor John Challen talks about cities and the future of the car

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06 Analysing worldwide vehicle sales figures

Director Jerry Ramsdale jerry@fleetworldgroup.co.uk Editor John Challen john@fleetworldgroup.co.uk Deputy Editor Alex Grant alex@fleetworldgroup.co.uk

08 News from the international fleet community

12 Electrified and alternative vehicle developments

Business Editor Natalie Middleton natalie@fleetworldgroup.co.uk Content Editor Jonathan Musk jonathan@fleetworldgroup.co.uk Account Directors Claire Warman claire@fleetworldgroup.co.uk Harry Whyte harry@fleetworldgroup.co.uk

18 A detailed look at the Alfa Romeo Stelvio Quadrifoglio

20 Residual values for the Skoda Karoq

Yvonne Wright yvonne@fleetworldgroup.co.uk Circulation Manager Tracy Howell tracy@fleetworldgroup.co.uk Head of Production Luke Wikner luke@fleetworldgroup.co.uk Designers Dan Bennett dan.bennett@fleetworldgroup.co.uk Tina Ries tina@fleetworldgroup.co.uk

22 The world of accident management

Victoria Arellano victoria@fleetworldgroup.co.uk

26 North American government fleet maintenance outsourcing 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 fw@fleetworldgroup.co.uk web internationalfleetworld.com

32 IFW studies the market performance of Lexus

40 Road test reports

36 An investigation into the Czech car market and economy

42 The (fleet) world according to Tobias Kern

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internationalfleetworld.com • 003

FROM THE

EDITOR Back to the future I guess it stands to reason that car numbers will fall and alternative mobility solutions be developed.

’ve done a bit of travelling over the past couple of months to a few different European cities and it’s clear that congestion is as much of an issue abroad as it is at home. The majority of people I know who travel into London tend to choose public transport as opposed to driving and I can see why. During peak times – in fact, nearly all the time – it’s quicker to walk along some streets than to drive, so why would you put yourself through the hassle? Especially as – when you do finally reach your destination – parking isn’t cheap or often readily available.

Paris was an eye-opener. I’d not been there for a few years and, while I know the traffic might be at the same level that it was on my previous visits, running around the city brought it all back to me.

Even at an early hour, the roads were gridlocked. Part of the reason – I’m sure – was that almost every pedestrian crossing I approached was signalling foot passengers to cross, leaving a stream of cars, vans and trucks trailing into the distance, waiting.

But the main reason, I’m guessing is because of the city’s car ban on weekdays between 8am and 8pm. A great move for the environment and for pedestrians, but maybe not so good for other road users. But it is set to get worse (or better, depending on how you look at it) as the city has introduced an extension of its car-free Sunday.

A larger area of Paris is now affected from 10am to 6pm on the first Sunday in every month, albeit with special dispensation for locals, delivery drivers, public transport and taxis (speed limited to 20kph).

So will it make a difference? It remains to be seen, but the initial trial has seen a 6% drop in inner-city traffic between 2017 and 2018, so it is likely that figure will rise. Don’t get me wrong, I applaud the Parisians for taking a stand, I just wonder if the idea is transferrable to other global urban areas.

I

Destination: peak car But will the Paris car clampdown make a difference to future generations? The rise of the electric car is nothing new – and batterypowered models continue to charge onto the market – but something in a presentation I watched at the end of October shocked me a little.

The leader of a research institute suggested that we are not that far away from ‘peak car’. We are already seeing a shift from ownership to usership; younger generations are less willing to learn to drive and myriad delivery services are making trips to the shop obsolete. I guess it stands to reason that car numbers will fall and alternative mobility solutions be developed.

That means a wake-up call for traditional car manufacturers, many of whom may be fearful of losing not only a customer base, but also a product range at the core of their businesses that could become obsolete. Being ahead of the game has never been more important.

John Challen editor

004 • internationalfleetworld.com

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Official fuel consumption for the Volvo XC40 range in l/100km: Urban 10 – 5.7, Extra Urban 6.4 – 4.6, Combined 7.7 – 5.0. CO 2 emissions 178 – 131g/km.

Fuel consumption figures are obtained from laboratory testing intended for comparisons between vehicles and may not reflect real driving results. Models may vary depending on market.

FLEET IN FIGURES

SEPTEMBER SEES SALES AND SELLING RATE SLIDE FOLLOWING AUGUST’S RECORD HIGH SELLING RATE, SEPTEMBER SAW THE PASSENGER CAR MARKET REVERT TO ‘NORMAL’ LEVELS. BY JOHN CHALLEN.

lobal light vehicle (LV) sales fell by 8.5% in year-on-year (YoY) terms in September, while the selling rate dropped to 90.2 million units a year, from August’s record high of 99.7 million units a year. As expected, sales fell back in September following the implementation of the WLTP emissions testing procedure, which had pulled sales forward to August, mostly in Europe. However, a range of markets, from North and South America to the Asia-Pacific region, also saw YoY declines.

G

North America September new US LV sales finished at 1,443,000 units, down 5.2% YoY. Retail sales dropped 8.4% to 1,150,000 units.

However, the recent launch of the Tesla Model 3 bolstered the compact premium car segment, which rose 44% YoY. Fleet sales continued to grow with a 10% YoY increase.

This September performance translates into a selling rate of 17.6 million units a year, up 780k from August. Canada and Mexico also witnessed YoY slumps in sales; the Canadian market fell 6.8% YoY, to 175,000 units, while in Mexico, sales fell for the 16th consecutive month. In September, 114,000 units were sold, which translates into a selling rate of 1.5 million units a year.

Europe Western European sales were badly hit

by WLTP-related distortion, with LV registrations falling 20.7% YoY in September, and the selling rate dropping to 13.2 million units a year, from 20.3 million units a year, from August.

However, this was clearly payback for August’s exceptionally high volumes as purchases were pulled forward ahead of

006 • internationalfleetworld.com

the new WLTP emissions testing deadline of 1st September.

In addition, some models were unavailable throughout September, due to backlogs in gaining approval under WLTP. As these models become available once again, we expect the pace of sales to pick up. WLTP is not being implemented in Russia just yet, but Eastern Europe still saw LV sales drop by 15.1% YoY in September, driven by a dreadful 67.7% YoY fall in Turkish sales. The Russian LV market expanded by 6% in September to reach 157k, while the Russian selling rate increased to 1.75 million units a year, from 1.49 million units a year in August.

China The world’s largest automotive market continues to decelerate. According to preliminary data, the September selling rate was a 16-month low of 26.6 million units a year, down 5.5% from August and the fifth consecutive month of MoM decline. On a YoY basis, LV sales (i.e., wholesales) declined by 10.3% in September, the third consecutive month of YoY decline.

The slowdown was driven by an 11% fall in passenger cars sales, while light commercial vehicle sales held up relatively well. Sluggish sales reflect weakening consumer confidence, amid the escalating US-China trade conflict, falling stock prices and the decelerating property market.

Sales of the Lada Granta helped the Russian market expand by 6%, while other markets retracted in September.

Other Asia In Japan, the selling rate slowed to five million units a year in September after a surprisingly robust August. Yet, any rate above five million is a good result for this mature and shrinking market.

Sales have remained resilient, falling just 2% YoY in September, despite the fact that a number of powerful typhoons and major earthquakes have hit Japan lately. A strong job market and rising wages are supporting new vehicle sales.

As expected, the South Korean market slowed sharply in September, due to the long Chuseok holiday. Sales declined by 17.4% YoY in September against strong sales a year ago, since the lunar holiday fell in October last year. However, sales are expected to rebound strongly in Q4, boosted by the temporary tax cut on passenger cars, which is set to expire at the end of this year.

South America Sales in Brazil grew more slowly in September, at 6.1% YoY, after a surprisingly strong August. The September selling rate was 2.46 million units a year, closely aligned to the yearto-date average rate of 2.45 million units a year. Consumers remained cautious about spending in the face of volatility in the financial markets and political uncertainty ahead of the October presidential election.

Amidst the country’s financial crisis, sales in Argentina continued to nosedive, with the selling rate plummeting to 534k units a year in September. On a YoY basis, sales plunged by 33.4% in September, the fourth consecutive month of sharp decline. With the recession deepening and inflation expected to exceed over 40% in the coming months, sales are not likely to stabilise soon.

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Fuel consumption in l/100km for The New Tucson range: Combined 4.7–8.5 l/100km, CO2 Emissions 123–195 g/km. The Hyundai 5-Year Unlimited Mileage Warranty applies only to Hyundai vehicles that have been originally sold by an authorized Hyundai dealer to an end-customer, as set out in the terms and conditions of the warranty booklet.

THIS MONTH IN FLEET www.internationalfleetworld.com

Bigger, tech-laden BMW 3 Series revealed BMW’s seventh-generation 3 Series sedan will introduce a new platform along with plug-in hybrids, enhanced driving dynamics and new technologies when it goes on sale next March.

Popular with both fleet and retail buyers – it’s the most successful BMW to date – the new model marks one of the biggest unveilings at this year’s Paris Motor Show. It’s built on the same platform as the X3 and 5 Series, and is longer and wider with an extended wheelbase that brings extra cabin space while boot capacity is also up by 36 litres in real terms. It also weighs up to 55kg less than its predecessor, helped by the use of aluminium, and introduces different styling under a new design language along with an updated cabin.

Opel to drop slow-sellers as new models arrive

Depending on the market, six engine variants will be available from launch, covering four-cylinder petrol models, four-cylinder diesels, plus a six-cylinder diesel unit. Outputs range from 150hp to 265hp with official combined fuel consumption of 5.8-4.2 l/100 km and CO2 emissions of 112-132g/km.

Intelligent all-wheel drive will be available from launch in the BMW 320d xDrive Sedan, which offers combined fuel consumption of 4.84.5 l/100 km with combined

Along with sister brand Vauxhall, Opel is targeting a return to profitability by sharing technology with the other PSA Group brands, new launches and refocusing on “high-volume, profitable” segments. The aim is to cover around 80% of the market, rather than offer products in every segment.

The Zafira Tourer was dropped earlier this year and production of the Adam and Viva city cars and Cascada cabriolet will end next year. There are no plans to replace them.

Opel has not confirmed the full line-up of new models yet, but an all-new Corsa

CO2 emissions combined of 118-125g/km.

A BMW M Performance version will arrive later along with a plug-in hybrid model.

New technologies include the BMW Intelligent Personal Assistant, which learns routines and habits, and can respond to commands, for example to lower the music, and even provide casual conversation.

The latest model also brings an expanded range of digital services from BMW Connected and BMW ConnectedDrive.

will launch next year, alongside passenger and commercial versions of the Vivaro van (likely to be based on the Peugeot Expert and Citroën Dispatch), while a replacement for the Mokka X is due in 2020. In 2021, the company said it expects 40% of its sales to be SUVs. The eight launches include several mid-life updates. This is likely to include both the estate and hatchback versions of the Astra and Insignia, though neither are confirmed yet. By the end of 2020, Opel will also have four ‘electrified’ vehicles – two of which will be the electric Corsa and plug-in hybrid Grandland X.

EU softens average CO2 targets for carmakers EU environment ministers have rowed back on average CO2 targets for manufacturers, amid industry concerns that they were unrealistic.

Although MEPs had voted in favour of a 20% targeted reduction in new car and van CO2 emissions between 2021 and 2025 and a 40% reduction in 2030, a final agreement between EU member states has set out just a 15% reduction for cars and vans by 2025 and 35% for cars (30% for vans) by 2030, in line with the

008 • internationalfleetworld.com

Commission’s original proposal. In addition, countries with low GDP receive an additional bonus for selling low- and zero-emission vehicles.

A derogation of niche manufacturers making up to 300 thousand cars was extended, notably benefiting Jaguar Land Rover, although this has caused controversy.

The agreement between EU nations, which comes as the Intergovernmental Panel on Climate

Change (IPCC) highlights the urgency of action on climate change including on transport, has met with anger from environmental groups.

Greg Archer, clean vehicles director with clean vehicle campaign group T&E, said the decision “shows how far the Commission and some member states have shrunk from climate leadership putting carmakers interests first despite the dire warning of the effects of dangerous climate change”.

IN BRIEF

Škoda to launch first true Golf rival

Half of cars still not WLTP tested Almost half of carmakers’ model ranges were not WLTP compliant at the start of October, according to Jato. The company analysed 61 brands and 5,044 variants across 22 European markets, finding just 57% (2,898 variants) had been WLTP tested as of the start of October, bringing significant disruption to September registrations.

Further diesel car bans announced for German cities Older diesels are to be banned from Bonn and Cologne just weeks after a similar ban was announced for Berlin. The bans follow clarification from the German Fedeeral Court that cities can and should ban older diesels from their street to meet air quality limits. Further bans are expected in the coming weeks.

UK’s ACFO to expand reach UK fleet decision-makers’ organisation ACFO has confirmed it is to join the recently formed European Fleet and Mobility Association (EUFMA) in a move to pool fleet management best practice. Deputy chairman Caroline Sandall said discussions had shown fleets in many European countries are tackling many of the same issues including air quality and mobility.

Road risk reduction warranty launches Road risk specialist eDriving has teamed up with Munich Reinsurance America, Inc (Munich Re) to develop a driver risk reduction programme that offers a money-back warranty. The scheme pairs up the Mentor appbased telematics solution and Munich Re’s Smart Mobility service, and warranties a 20% reduction in collisions in the first year, or all fees are refunded.

Škoda has revealed its forthcoming hatchback will be named Scala as it announces more details of the brand’s first like-for-like rival to the VW Golf, Ford Focus and Vauxhall Astra.

Expected to mark the replacement to the Rapid hatchback, the Scala has been designed to bring a more credible alternative within the family hatchback segment, more effectively bridging the gap between the Fabia and Octavia. Skoda board chairman Bernhard Maier said it marks a “new chapter in the compact class of Škoda”, as shown by the name, which is derived from the Latin for ‘stairs’.

It’s also said to take a big step forward in design and technology. Few details have been revealed but the Scala becomes the first European Škoda model to bear the brand name in lettering across the centre of the tailgate, replacing the logo.

It follows on from the reveal of the Škoda Vision RS concept at the Paris Motor Show, which was shown with a plug-in hybrid drive and also gave an insight into the next stage of Škoda’s vRS models.

First-ever BMW X7 brings rival to Range Rover BMW has added a new flagship X7 model to its SUV line-up to bring the fight to the Range Rover and Mercedes-Benz GLS. On sale from March, the new sevenseater puts the focus on practicality and versatility while also bringing “unrivalled” luxury, like that seen in the 7 Series, to the large 4×4 segment.

Practical features include two fullsize seats in the third row with the option of two individual seats for the middle row instead of the standard bench. Middle-row seats – either bench or individual – can also slide forwards and back electrically and tilt forwards to aid third-row access.

Boot space ranges from 326 to 1,210 litres while standard air suspension allows the car to be lowered at the

touch of a button to make loading easier. The X7 also comes with a twosection split tailgate, both elements of which have electric opening and closing as standard.

In Europe, three versions are available from launch: a six-cylinder petrol engine for the 340hp xDrive40i and a pair of six-cylinder in-line diesels to power the 265hp xDrive30d and 400hp M50d M Performance models.

Outside of Europe, the 462hp X7 xDrive50i will provide a rangetopping model.

All units are married up an eightspeed Steptronic transmission and xDrive all-wheel drive while an M Sport differential is fitted as standard on the BMW X7 M50d and in conjunction with the optional Off-Road package.

internationalfleetworld.com • 009

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IN BRIEF DS 7 Crossback PHEV targets sub-50g/km CO2 DS Automobiles will add a 300hp plug-in hybrid to the flagship DS 7 Crossback SUV next year, offering sub 50g/km CO2 emissions (WLTP).

The DS 7 Crossback E-Tense 4×4 will use the same hybrid system as the forthcoming 3008 PHEV, bringing a total 300hp with a range of up to 50km.

Renault confirms full hybrid models for 2020 Renault will launch hybrid and plug-in hybrid versions of the Clio, Captur and Megane starting from 2020, enabling customers to “go electric without changing their habits”, according to group chairman and CEO Carlos Ghosn. The new models will use a full hybrid system (instead of the mild hybrid used on the Scenic) developed in-house, called e-Tech.

For greener, more flexible, future international fleets...

Renault and Brilliance accelerate electric LCV plans Renault and Brilliance have taken the next steps in their plans to launch conventionally-powered and electric LCVs in China thanks to a new agreement with Liaoning province.

The carmakers formed a joint venture at the start of 2018 to manufacture and sell LCVs under the Jinbei, Renault and Huasong brands with the goal of achieving 150,000 sales annually by 2022 and helping to drive the launch of electric models in the biggest; fastest growing EV market in the world Now, the Renault-Brilliance-Jinbei Automotive Co JV has announced plans for seven LCVs for China including three electric LCV models, starting in early 2019.

This will be supported by an agreement with the local government in Liaoning province, where JV is headquartered and where the manufacturing operations will be based.

The agreement sees the city of Shenyang and Liaoning province commit support to vehicle projects, new energies and R&D activities, industrial development, promotion of local suppliers and product development, in recognition of the crucial role that the JV will play for the local economy.

Porsche to refocus on plug-ins Porsche is not reintroducing diesel engines back into its range, claiming the fuel had a ‘secondary role’ and that it will instead focus on meeting demand for hybrid and electric products. The carmaker halted production of its diesel engines in February and the announcement means they wil not be revived.

LeasePlan adds ULEVs to Click & Drive Businesses in Germany can now access online leasing deals for hybrid and electric vehicles through LeasePlan’s Click & Drive scheme.

Designed to offer access to preordered and pre-configured new cars, the scheme now features models such as the Jaguar I-Pace, Nissan Leaf and Tesla Model S and X.

012 • evfleetworld.com

3 Series PHEV to nearly double electric range The forthcoming BMW 3 Series plug-in hybrid will bring nearly double the electric range of the current model along with introducing lower CO2 and improved fuel economy.

The figures, published by BMW in press information following the global reveal of the new-generation 3 Series, show the future PHEV will have a 72km range; a rise of 35km over the outgoing model and a similar increase to the expected electric range provided in the next-generation of BMW X5 iPerformance plug-in hybrid thanks to a battery capacity increase – though the exact kWh increase and weight penalty are yet to be confirmed.

The X5 will be equipped with a 3.0-litre six-cylinder petrol unit outputting 286hp alongside an uprated electric motor with 112hp, making a combined power output of 394hp and 600Nm torque, though it remains uncertain whether the new 330e will benefit from similar treatment or stick with its 2.0-litre four-cylinder unit.

Emissions are provisionally rated at 39g/km, keeping tax low, while fuel economy is rated at 1.7l/100km (NEDC Correlated) compared to genuine NEDC figures for the outgoing 330e of 44g/km CO2 and 2.1l/100km.

MOBILITY

Mobility-as-a-Service app launches Opel launches full-service leasing under Free2Move Lease banner

A new Mobility-as-a-Service app that brings together thousands of public and private transportation providers, including fleet and grey fleet vehicle usage, under one platform is now available for fleets in the UK – with plans to expand overseas.

Launched by Fleetondemand after some three years of R&D and testing, the platform is available via desktop, IOS and Android, and enables users to find, book and pay for their entire business journey (including parking, car hire, flights, trains, accommodation, restaurants, airport lounges, car clubs, buses, taxis, and more) in seconds, through one transaction, on one device.

Dubbed Mobilleo, the platform presents all available modes of transport including comparative costs of driving personal and company vehicles on business.

The desktop solution enables fleet managers to adopt mobility policies and drill down into the data on an employee level to identify total cost, behaviour and even if there has been breaches of the travel policy. Fleets can even set restrictions on maximum spend limit, restrictions on routes of transport, providers or ticket class.

Future plans include possible expansion into Europe and globally.

Opel is launching its own full service leasing offer under the Groupe PSA mobility brand Free2Move Lease.

The solution launches in Germany, joining the existing offerings from Peugeot, Citroën and DS Automobiles, and will initially be aimed at larger fleets before rolling out at the start of 2019 to all commercial customers and fleet operators.

Jürgen Keller, Opel executive director sales, marketing and aftersales, said: “Free2Move Lease is aimed at companies that want to operate their fleets economically, remain flexible and rely on modern, powerful and efficient vehicle models. Free2Move Lease and our current vehicle portfolio, including our newcomer Opel Combo Life, are an excellent combination that features an attractive price-performance ratio.”

Eco carsharing schemes launch in Paris Renault and Daimler carsharing subsidiary Car2go have separately announced the launch of fully electric carsharing schemes in the French capital.

Renault’s scheme is already live and offers access to 100 Renault ZOE and 20 Renault Twizy vehicles throughout the capital, as well as in Clichy (Hauts-de-Seine) under a partnership with car rental firm ADA – part of the Rousselet Group. More vehicles will be added to as demand ramps up.

Vehicles can be located, reserved and accessed via Bluetooth through the Moov’in.Paris app.

Car2go will launch in Paris in January with an initial fleet of 400 electric Smart EQ Fortwo cars with several hundred more to be added over the course of the year. The French capital marks the 15th Car2go location in Europe and the fourth city in which it will operate a fully electric fleet of cars.

evfleetworld.com • 013

THIS MONTH IN FLEET www.internationalfleetworld.com

FLEET IN QUOTES “With this first Positive Impact Bond, ALD is reinforcing and further developing its sustainable growth strategy, and supporting the shift of its activities towards sustainable mobility, and low emission vehicles in particular.

Aiming at both the green bond and positive impact qualifications was challenging but extremely enlightening: for low emissions vehicles it is of the utmost importance to look beyond tailpipe CO2 emissions and consider the global picture, in terms of life stages and types of emissions.”

LeasePlan shelves IPO plans ‘due to market conditions’ LeasePlan has cancelled plans for an initial public offering a week after it was first announced “due to market conditions”.

The leasing firm had announced its intention to launch an IPO and listing on Euronext Amsterdam and Euronext Brussels. Currently, LeasePlan is a private, limitedliability company named LP Group NV. Prior to settlement of the IPO, it would have been converted into a public company with limited liability with a legal name of LeasePlan NV. The IPO would consist entirely of

existing shares held by the company’s current sole shareholder, Lincoln Financing Holdings Pte Ltd, acting through its Dutch branch. This is controlled by a consortium of investors.

Stéphane Renie, head of corporate social responsibility at ALD

“10 months after our initial launch of our joint venture in China with Brilliance, we have a local management team in place, LCV product plan to deliver further growth with seven LCVs for China including three electric LCV models, starting in early 2019. Our agreement with the local government in Liaoning province will strengthen our foundation for growth.”

Carlos Ghosn, Renault chairman and CEO

“With Dieter Zetsche's intended appointment as chairman of the Supervisory Board, we are ensuring continuity for the sustained success of Daimler AG. In Ola Källenius, we are appointing a recognised, internationally experienced and successful Daimler executive as chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars.”

Manfred Bischoff, chairman of the Supervisory Board of Daimler AG

014 • internationalfleetworld.com

Register now for International Fleet Meeting Geneva 2019 Fleets are being invited to sign up for the International Fleet Meeting Geneva 2019, which will spotlight salient fleet issues including greening the car fleet.

Free to attend, the event – which includes International Fleet World again as a media partner – takes

place on 6 March at the Geneva Motor Show.

Confirmed speakers include Tomas Björnsson, vice president, head of business unit e-mobility, Vattenfall AB, who will speak on ‘The EV100 challenge – converting a fleet into full electric – the Vattenfall case’.

ALD issues first-ever Positive Impact Bond ALD has issued an inaugural Positive Impact Bond to finance its green fleet in a first for the fleet industry.

The firm said the €500m four-year fixed-rate senior note will be exclusively used to finance or refinance eligible vehicles, based on an initial portfolio of 14,348 eligible vehicles, across 13 countries in Europe. These comprise 24% electric vehicles and 76% hybrids and plug-in hybrids (PHEVs) and will avoid 17,000 tons of CO2-equivalent and 99,000 kg of NOx emissions on an annual basis.

ALD said the issuance is unique in

that the Positive Impact Bond Framework is aligned both with the ICMA Green Bond Principles and the Principles for Positive Impact Finance developed by the UN Environment programme.

Société Générale said the issuance further demonstrates its commitment to remain at the forefront in the area of Sustainable and Positive Impact Finance to help build a sustainable bond market and fully support its clients in their financing needs by deepening capital markets funding sources for sustainable growth projects.

For all your fleet electric vehicle needs and to stay up to date with the latest news and developments, visit

evfleetworld.co.uk @EVFleetWorld

EV Fleet World

www.greatbritishfleetevent.co.uk

INCORPORATING

t 01727 739160 // e info@fleetworldgroup.co.uk

HELLO!

SIMPLY COME ALONG AND SAY HELLO TO A FLEET EXPERT IN JANUARY 2019.

IT COULD SAVE YOUR FLEET MONEY. CONFERENCE SESSIONS

Urban Fleet Hidden risks for drivers – the issues surrounding in-cab air quality for city-based fleets.

Sharing the load – collaborative projects delivering real-world CO2 savings for businesses.

Clean Air Zones – improving compliance and cutting costs for fleets in clean air zones.

The Government viewpoint – keynote address, TBC.

Electric Vehicle Understanding workplace charging – the standards, complexities and incentives for plugged-in fleets.

The bigger picture – what can the UK learn from other advanced ULEV markets, and how have incentives affected uptake elsewhere?

Commercial breaks – the businesses pioneering electric commercial vehicles, and the opportunities and challenges of doing so.

Challenges ahead – understanding the route away from fossil fuels, and what it means for fleets.

Technology Safety first – unpicking the complexities of new safety technology, and uncovering which are the most effective for your fleet.

Thinking big – why now is the time to start collecting data, and the opportunities ‘big data’ could unlock.

Fuel choice – the legislative changes affecting petrol, diesel and electric drivetrains, and how you can pick a fleet to meet your business needs Smarter travel – travel plans for fleets, and why consumer expectations are shaping the ‘Mobility-asa-Service’ era for fleets.

ABOUT THE EVENT The Great British Fleet Event 2019, on 24 January 2019 at the Novotel London West, London, will comprise a high-level morning Masterclass Conference and Seminar session, leading into the Fleet World Great British Fleet Awards 2019, alongside a 5-course Gala Dinner in the afternoon. This format will provide the perfect networking opportunity for fleet operators and suppliers to connect.

The prestigious Awards will celebrate the best of corporate motoring in the UK, and will be presented in front of an audience of business leaders, fleet managers and industry executives.

EVENT SCHEDULE 9.00am Registration & Exhibition opens, refreshments served

9.30am IAM RoadSmart presentation

10.00am Networking (delegates divided into two groups)

10.15am Masterclass session one (choice of two topics)

11.15am Networking and refreshments

11.45am Masterclass session two (choice of two topics)

12.45pm Networking

1.15pm onwards Fleet World Great British Fleet Awards open

Future of Fleet Management Taxing times – how to cut costs amid tax uncertainty Driver Eyecare – Vision Express on the importance of eyecare for drivers and ensuring compliance.

Time to talk – why now is the time to discuss drivers’ mental health.

Remarketing Trends – trends from de-fleeted vehicles, and how remarketing is changing as new technologies come on board.

Register now at... www.greatbritishfleetevent.co.uk

SPOTLIGHT Alfa Romeo Stelvio Quadrifoglio

QUAD MUSCLE WORKOUT ALFA UPS ITS SUV GAME

It might not be the most obvious fleet choice, but with the tide turning away from diesel, a high-performance gasoline-powered SUV could be more in demand than you think, says John Challen

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ALFA UPS ITS SUV GAME A relative latecomer to the SUV party, Alfa Romeo is wasting no time in catching up with fellow contenders in the premium segment. The Quadrifoglio sits at the top of the Stelvio tree, with its 2.9-litre V6 bi-turbo engine that offers a maximum power of 517hp at 6,500rpm and 600Nm between 2,500 and 5,000rpm. Certainly no slouch, the Stelvio Quadrifoglio has been dubbed ‘the fastest SUV around the Nürburgring’, having completed the legendary lap in 7 minutes 51.7 seconds.

To help manage the weight distribution, the Italian car uses Alfa’s Q4 all-wheel-drive system to transfer 100% of the torque to the rear axle under normal conditions, before shifting up to 50% to the front when reaching the engine’s limit. Other clever technologies on the car include Chassis Domain Control, Active Torque Vectoring and Alfa’s DNA Pro with race mode.

INSIDE JOB The performance is certainly impressive, but as important as the car’s figures are the creature comforts on the inside. Plenty of leather and alcantara can be found on the seats, which have been specifically shaped for more support when cornering. There is also a touch of carbon fibre on the console, dashboard trim, door handle inserts and steering wheel rim.

Stelvio Quadrifoglio gets Apple CarPlay and Android Auto, both systems working with the Alfa Connect 3D NAV 8.8-inch screen, which is standard on the car. Developed jointly with Magneti Marelli, the infotainment system offers ‘a sophisticated series of features and functions, including a next-generation human-machine interface, controlled by a Rotary Pad’, according to the Italians. In addition, thanks to “optical bonding” technology, the user benefits from an excellent level of visualisation and readability on the display.

IN SUMMARY Alfa Romeo has always dared to be different and it appears that some things never change. Introducing an SUV is nothing new, but bringing one to market with so much performance on offer is a brave move from the manufacturer.

Stelvio Quadrifoglio promises to have many admirers, but with a combined cycle fuel economy figure of 28.8mpg, they’ll have to have deep pockets… JC

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RV A N A LY S I S ŠKODA KAROQ Having had great success with its Kodiaq, Škoda is hoping for more with its baby brother. Dieter Fess casts an eye over the Karoq.

What the manufacturer said at launch: The Škoda Karoq is the most digitalised vehicle in Škoda’s model range. This is the first time a fully customisable digital instrument panel has been offered in a Škoda. The displays can be personalised and are linked to the infotainment system. The vehicle’s extensive network ensures a comfortable and safe ride for driver and passengers alike. All connectivity solutions serve to improve the flow of information, and enhance the entertainment and safety. The Škoda Karoq offers the latest infotainment systems. All capacitive touch displays feature Škoda’s characteristic glass design.

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

What BF Forecasts says now: This ‘little’ Kodiaq is the successor of the Yeti and it does a very fine job in this role. At first glance you could be forgiven for thinking it is not more than a baby Kodiaq or an Octavia Wagon with a better view on the street, but look closely and the differences are clear. The Karoq is designed to look like a larger SUV than it is. It has a lot of elegant and individual features such the design of the headlamps or the projection of the brand name on the pavement once you open the doors. However, the RV in Germany is not as good as it could be, predominantly due to the very massive and strong competitors in the market.

Brand: Škoda Prices from: (incl. VAT)

Model: Karoq

Available since: 2017

1

France

Germany

Spain

About the Residual value Grades: 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 car’s 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.

Petrol

Diesel

France

Germany

Spain

Engines

115hp

115hp

€25,590

€24,290

€24,2100

150hp

Text and data: bähr & fees forecasts GmbH ( Ø- Values; Trade; 36 Months; 60TKM;10-2018)

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.

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Date: 6th March 2019 (2 nd press day) Place: Geneva International Motor Show Location: Room K, Congress Center Target groups: International Fleet Managers / International Fleet Procurement Managers Capacity max. 250 people Access only with admission ticket and an official ticket for the press day.

Registration and additional information: www.internationalfleetmeeting.com Limited number of participants.

Timetable: From 09:00 Welcome Desk opened 11:00 Start of the event / networking 11:30 Top speakers (in English) Tomas Björnsson, Vice President, Head of Business Unit E-mobility, Vattenfall AB «The EV100 challenge – converting a fleet into full electric – the Vattenfall case» Steffen Krautwasser, Global Head of Car Fleet SAP SE «A sustainable company car fleet creates a value add» 12:30

Panel discussion – Moderator, Thilo von Ulmenstein, Managing Partner fleetcompetence europe GmbH Topic: «Converting a fleet into full electric» 13:00 Lunch buffet and networking 14:00 End of the official event 14:00 – 16:00 Lounge-service for sponsors, media partners and guests (only with admission ticket) Contact: aboutFLEET / A&W Verlag AG | Mrs. Jasmin Eichner | Riedstrasse 10 | CH-8953 Dietikon Phone +41 (0)43 499 18 60 | Fax +41 (0)43 499 18 61 | Mobile +41 (0)79 766 99 00 | je@auto-wirtschaft.ch | www.aboutfleet.ch fleetcompetence europe GmbH • Mr. Balz Eggenberger | Alte Landstrasse 106 | CH-9445 Rebstein Phone +41 (0)71 777 15 32 | Fax +41 (0)71 777 15 31 | balz.eggenberger@fleetcompetence.com | www.fleetcompetence.com

Please note this programme may be subject to change

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Forum biznesowe

INCIDENT MANAGEMENT

ACCIDENTS

WILL HAPPEN ACCIDENTS ARE AN UNFORTUNATE PART OF FLEET MANAGEMENT BUT THEY CAN BE MITIGATED THROUGH PROACTIVE MANAGEMENT PROGRAMMES WHICH PUTS THE WELFARE OF STAFF FIRST. CURTIS HUTCHINSON REPORTS.

o matter where in the world fleets operate, the overriding consideration for employers must always be the safety of their staff. While local legislation on employee welfare varies from country to country, a basic premise followed by many companies is to treat the company car as an extension of the workplace and therefore subject to the same rules safeguarding staff.

Fleet vehicles can rapidly become a dangerous environment when something goes wrong, which is why employers need to have accident management programmes in place that do not just address the needs of repairing or replacing broken metal.

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For every employee-related road traffic accident there is a human issue to address. Has the member of staff received sufficient post-accident care? Does their workload need to be reassessed? Is there a requirement for driver training? These human considerations should not be lost in processes geared towards recovering and repairing a vehicle which is why it is important for employers to regularly review the way accidents are managed from a staff perspective.

Evaluate employee experiences Traditionally, accident management solutions provided by fleet

management companies tended to be process-driven offerings centred around recovering the damaged vehicle, arranging hire cars and processing the repair. While these elements are clearly essential, they do not take into account the fact that the driver has been through an experience that may have been traumatic, even if the accident was only a minor one.

The UK’s Institute of Car Fleet Management (ICFM) has long advocated the need for employers to have procedures in place to address the effect of accidents on staff and the need for fleet managers to work closely with those responsible for health and

Only focusing on the business risk [of an accident] is no longer an acceptable stance.

safety compliance within their company. The organisation’s approach to humanising accident management cuts across international borders, providing a good starting point for best practices wherever in the world fleet cars are operated.

“Only focusing on the business risk is no longer an acceptable stance.

Fleet operational responsibility has naturally evolved and now requires expert support from a broader range of fleet responsible stakeholders, which includes a company’s health and safety manager,” says ICFM director Peter Eldridge.

As far as processes are concerned,

the ICFM believes it is important to adopt an approach that identifies risk, assesses its possible impact and enables decisions to be made.

“Risks must be identified before they can be measured and only after their impact has been assessed can decisions be made that will fully support duty of care. This is a good place to start when considering the wellbeing of any fleet driver who has been involved in a road traffic accident,” says Eldridge. “This should also be extended to address the clear distinction between incidents that involve a driver, or passenger, injury and those which result only in vehicle damage.”

Handle with care Having the right processes in place is a fundamental way to manage both the immediate aftermath of an accident and the long-term impact on an employee, which is where having formal accident management cover in place is an important consideration.

With driver welfare established as the starting point for any accident management policy, telematics can play an invaluable role in monitoring usage and identifying risk.

Geotab, the specialist provider of fleet management telematics, operates across all seven continents, including Antarctica. Its European vice president >>

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INCIDENT MANAGEMENT

ACCIDENTS WILL HAPPEN... >> Edward Kulperger believes fleets across

the globe can benefit through greater use of live and historic driver data.

“From potential hazards and dangerous road conditions, to unfamiliar road signs, local laws and driving culture, crossing international borders can be a challenge even for professional drivers,” Kulperger states.

“This situation is especially true for fleets that are required to travel internationally on a regular basis.

Luckily in many cases, telematics data can be used in innovative ways to protect drivers and help them avoid catastrophic accidents.”

Kulperger says connected fleets can ensure proper usage of the vehicle is adhered to through monitoring speeding, braking and acceleration, following too closely and even seat belt usage. “With this data, fleet managers can identify incentive and coaching areas to avoid accidents and optimise the total cost of ownership (TCO) of a vehicle through insurance and fuel usage.

“In the unfortunate event of an accident, Geotab’s secure data can be used to create a comprehensive reconstruction of the accident – ultimately answering questions that may be raised during an accident investigation and speeding time to resolution,” explains Kulperger.

“Telematics data can also prove whether or not a driver is responsible for a collision, expediting the process of making an insurance claim.

The goal is to prevent and mitigate the risk of an accident to the greatest extent possible.”

Accident analysis TMC, the fleet mobility solutions specialist, operates in 36 countries across the EMEA region, looking after 100,000 drivers, giving it a global perspective. TMC’s managing director, Paul Hollick, advocates the consolidation of telematics data to make it more meaningful. “In the

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Paul Hollick, TMC managing director

Aggregating mileage data with data from insurance companies, fleet management companies and telematics enables businesses to spot potential risks and identify drivers who may need to be looked into.

past, accident management has typically been very reactionary. Risk associated with driving is often assessed in silos – driving licences are checked, telematics dashboards are viewed and accident rates are analysed but looking at these things in isolation can mean things slip through the net,” he explains.

“It’s only by putting all the pieces of the puzzle together that you can see the complete picture and take a preventative, proactive approach to accident management,” he adds.

Hollick believes fleets can reap benefits by using data to look at the bigger picture and identify driver trends. By better understanding how company vehicles are used, fleets can take a more informed approach to managing employee workloads and mileages and even identifying the need for driver training to address any shortcomings. “Aggregating mileage data with data from insurance companies, fleet management companies and telematics enables businesses to spot potential risks and identify drivers who may need to be looked into.

“For example, from your telematics data you can identify dangerous driving styles and highlight drivers doing lots of trips between 1,400 and 1,600 – an incident hot spot,” says Hollick. “While your insurance data enables you to see who has made claims and data from your leasing company highlights drivers who have had significant wear and tear on their company vehicles and who have received fines. Overlaying all of this information with mileage and driving licence points, you can build a 360-degree view of your drivers and identify any high-risk drivers and decide on a course of action to minimise incidents.

“We have seen more and more demand for this service from our international clients as we can bring all of their data together for them across all markets to give them

visibility across the board and help them to manage their risk more effectively,” he adds.

Meanwhile, one of the biggest global providers of accident management services is LeasePlan, offering it across more than 30 countries. It believes most fleets can achieve the greatest benefits by outsourcing the

service to specialist providers.

“Accident management is a specialist activity with the aim of controlling repair costs, reducing vehicle downtime and ensuring that mobility is guaranteed,” says Hessel Kaastra, managing director of LeasePlan Insurance. “In most cases accident management is best outsourced, as it

THINKING LOCALLY:

requires in-depth knowledge of the damage repair value chain, its players and the market dynamics.”

In conclusion, the best advice to fleet managers could be to make sure a robust accident management policy is in place that puts the wellbeing of staff first. Also, make sure your provider’s service reflects local nuances.

BEST PRACTICE FOR GLOBAL FLEETS

CASE STUDY GEOTAB

For accident management to work across different territories, programmes must be tailored to account for different legislative requirements, according to Ken Costello (pictured left), manager of fleet maintenance at ARI Fleet, which manages over 1.5 million vehicles in North America and across Europe.

“For fleets who operate on a global scale, it’s extremely difficult to implement a one-size-fits-all solution for accident management. The vehicles, laws and regulations, and operating parameters vary so much across each country, often even by region or province, that in-country expertise is vital to a successful accident management programme.

“Having a strong knowledge of the regional nuances associated with the entire accident management process – vehicle repairs, insurance claims, driver training – is really the best advice I can offer fleet operators,” says Costello. “For the majority of organisations, the most feasible and economical strategy is to partner with a fleet management company who is able to provide a global accident management solution that can be tailored to address the unique challenges of each country in which their fleet operates.”

One of the world’s largest food and beverage companies tasked Geotab with deploying telematics across its large international fleet to help it better manage driver behaviour. The company now uses telematics to monitor aggressive driving, harsh braking and vehicles exceeding the posted speed limit, and to identify when and where accidents happen.

This allows it to continually support its global fleet by ensuring drivers are obeying the rules of the road; regardless of which country they are driving in.

“The cost of an accident is exponential when injuries, or worse, occur; especially when crossing a border. It is therefore the responsibility of the fleet industry at large to mitigate as much risk as humanly and artificially intelligently possible,” says Edward Kulperger.

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MAINTENANCE MANAGEMENT

WHY GOVERNMENTS TAKE THE OUTSOURCING OPTION A ‘PERFECT STORM’ IS FORCING GOVERNMENT FLEETS TO OUTSOURCE AN ACTIVITY THAT THE OVERWHELMING MAJORITY STILL COMPLETE IN-HOUSE: ROUTINE VEHICLE MAINTENANCE. STEVE SALTZGIVER, A 30-YEAR-PLUS FLEET MANAGEMENT EXECUTIVE, EXPLAINS WHY TO MARK BOADA.

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recent report by OmniGov IQ, a fleet market intelligence company, stated that bids for government outsourcing of routine maintenance increased by 40% in 2017, from 2,227 to 3,181. The report explained that as vehicles have become more technologically advanced, ‘the work of maintaining government fleet vehicles has become more high-tech and specialised and many government agencies don’t have specialists on their staffs that can do this work’. Steve Saltzgiver, Previously fleet manager for one city, two states and two corporations, an executive director of the National Conference of State Fleet Administrators and currently a member of the NAFA board of directors, is well-placed to say what impact is likely, if the trend continues.

A

We’re having the biggest exit from the mechanics’ space ever in history with the Baby Boomers retiring.

How does that report square with what you’ve been seeing over the last six years?

We’ve been [predicting] that for a number of years now, our president Paul Lauria and I and most of our team. We call it the ‘Brain Drain Convergence’. Yesterday’s mechanics are now becoming highly skilled technicians who must understand how to diagnose and repair complex vehicle systems. We’re having the biggest exit from the mechanics’ space ever in history with the Baby Boomers retiring – requiring more skilled technicians, which is converging simultaneously with increased complexity of vehicles.

Those two factors are driving these kinds of changes, because people simply don’t have the resources to train people – the increased complexity requires an intense amount of training to keep technicians up to date.

The other thing that’s happening simultaneously is that people aren’t going into mechanics any more. There are all types of incentive programmes, new entrant programmes, and recently President Trump even brought back apprentice programmes.

There is a lot of focus right now going into this because those of us who own cars are going to be in a world of hurt in the next five to 10 years because there are just not enough resources.

>>

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MAINTENANCE MANAGEMENT

>>

What percentage of government fleets do you believe do outsource routine and preventive maintenance and what percentage don’t?

I would say 15 to 20% may outsource routine maintenance. From my experience, that’s what I believe. The required tools, training and infrastructure involved to perform the routine vehicle diagnostics and troubleshooting are becoming much more complex than in the past. There are now more than a dozen independent computer systems required to operate today’s modern vehicles with over 100 million lines of computer code on some models, which is about 14 times more than a Boeing 787 Dreamliner jet.

Do you find that auto technicians who work for government fleets tend to stay with them for a long time?

They do. The tenure of those technicians is definitely longer than the private sector. The private sector has done a lot of things to entice people to come out.

The biggest draw for government fleet technicians is that they all have a pension in the public sector, and that is kind of insurmountable for a private repair shop to pay somebody to leave a government fleet. But what’s happening is that people who have accumulated enough time to draw on their pension can afford to leave their government fleet jobs and find one in the private sector, which offers sign-on bonuses, better benefits and wages, and probably the most important thing is they have a better shift – they work pretty much straight day shifts.

But government fleets are probably facing the same rate of retirement that the private sector is facing, no?

Yes. It’s a problem industry-wide. But it’s probably more so in government because the private sector is a little bit more aggressive using the technical schools to sign future technicians on before they graduate. They have sign-on bonuses that compensate them for their tools. The government sector doesn’t have the kinds of funds to do those things to be competitive with the private sector.

The Millennial workforce seldom stay anywhere for more than two years.

They’re upwardly mobile, trying to find that sweet spot to make more money, get more benefits. They’re nothing like the

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Baby Boomers who stayed for dozens of years with a single employer.

What will be the consequences as fleets find they have fewer and fewer qualified technicians and haven’t resorted to outsourcing their maintenance?

As their workforce decreases in size, they’re going to see excessive costs, increased downtime, the need to increase the fleet size to make up for more downtime and increased costs for training and tools. Every government at some point is going to be affected by the Baby Boomers’ retirement. I suspect many fleets won’t react to it or do anything about it until it is a crisis. I asked a question at a government fleet conference about how they’ve been having trouble getting technicians. And from what they said, it’s already becoming a crisis.

I suspect many fleets won’t react to it or do anything about it until it is a crisis.

One way to avoid getting blamed for the inevitable here is for fleet managers to start now to consider outsourcing routine maintenance?

Yes. The fleet managers who don’t prepare are setting themselves up for some very difficult times somewhere down the road, and they’re not very far away. Of course, the other option is to review their current operations and determine what investments will need to be made to build up the infrastructure necessary to perform quality repairs to increasingly complex assets.

How common is it for government fleets to do routine maintenance and repairs on their own?

Nobody has a real handle on that, but I would say that 15 to 20% outsource and 80 to 85% do it themselves – but every

fleet is different. You’ve got everything from the state of Tennessee, which has pretty much outsourced its entire fleet maintenance, to the state of Utah DOT that does almost everything themselves.

I have some clients who even do their own bodywork. Some do their own alignments and everything else. But the more typical model is they keep the routine stuff, like oil changes, safety inspections, light diagnostics and replacing parts, and they outsource the specialised stuff, such as bodywork, glass repairs, replacing tyres, and complex drivetrain repairs that are in warranty.

Does it vary by fleet size or the location of the fleet depot?

I think it’s a graduated scale. If you’re a very, very small fleet, most likely you outsource a lot more than if you’re a big fleet that is more self-contained and can do more. If you’re in a really rural area, and you don’t have capable outsource resources around, so, most likely you are doing your own. For example, a lot of the DOT depots in Utah are in the middle of nowhere with limited outsource capabilities, and other areas of the country are in a similar situation. Because of their remote location, there’s probably not a capable vendor in those areas that could do everything.

Do government fleets that do their own routine maintenance know how much it really costs?

No, most don’t. One of the things that government fleets have a problem with – and I know because I worked there – is they do not track their sunk costs.

For example, a public fleet rarely puts into their technicians’ labour rate the cost of the building, the cost of the utilities, the cost of the administrative support personnel and activities. So, they’ve got a pretty hollow labour rate.

What do government fleets believe is their hourly repair technician rate?

A typical stated labour rate I see in government is between $45 and $65 an hour. By comparison, the private sector is usually between $100 to $200, depending on what part of the country you’re in and that’s a number that usually represents a fully-burdened labour rate.

What do you tell fleets to do to understand just how much it costs to provide maintenance and repairs on their own?

They need to do what we call ‘ABC analysis’ — an activity-based cost accounting exercise to identify their full cost of maintaining assets in-house. That means looking at all of their costs holistically; anybody who supports fleet, like HR, like IT, what the building utilities are, all the benefits for the mechanics, all the shop tools you have to buy, all the training, all the parts ordering, receiving, storing and distribution. There’s an allocated overhead somewhere that’s supporting you. You need to be sure you track all those costs.

Knowing that is important for fleet managers to defend the way they do things. There are a number of outsource companies coming after the public sector because people can’t and don’t know their costs. These people are able to go to leadership and executives and show that they are less expensive than the government fleet. As a fleet manager, you want to have the full facts in your back pocket and know your costs exactly, so you can defend yourself.

Let’s say I’m a state fleet, and I’ve got maintenance garages all over the state, and I own them. And I’ve equipped them with the hydraulic lifts and diagnostics equipment and all the tools. Then I find out it would be cheaper to outsource, and to do so I’m going to have to get rid of all that stuff.

What are the things fleet managers need to do to cut the costs of the services they provide?

I would recommend they take a very close look at all of their processes, such as the maintenance process. Take a particular vehicle in for maintenance or repair.

Follow the job with a stopwatch and make sure you have no extra steps in there. And take several of your other key jobs and do the same thing. And then look at processes like the way you acquire vehicles, for example, or the way you process accident reports. Make sure you don’t have any bottlenecks or people involved who don’t need to be involved. It’s really about flowcharting, process mapping, and just taking the fat out of the processes, the unnecessary steps. You have value-added steps and you have non-value-added steps.

I would wager that most people don’t look at that often enough.

As a fleet manager, you want to have the full facts in your back pocket and know your costs exactly, so you can defend yourself.

A version of this article originally appeared in Fleet Management Weekly

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FLEET PROFILE LEXUS

Self charging FROM HYBRIDS TO PERFORMANCE V8s, TOYOTA’S PREMIUM ARM, LEXUS GOES TOE-TO-TOE WITH PRESTIGE RIVALS, OFFERING A COMPELLING BLEND OF LUXURY, PERFORMANCE, QUALITY AND LOW EMISSIONS.

Lexus has seen its sales flourish from humble beginnings in the early ’90s to more than half a million annual sales today.

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Manufacturer Lexus Total sales 2017 668,505 Headquarters Nagoya, Aichi Prefecture, Japan Global market share 0.83% (approx. in 2017) No. of models 12

VIEWPOINT

LEXUS Global sales, by market Territory Japan North America Europe China Middle East & North Africa Total

2016 52,149 329,422 74,316 109,151 39,581 677,628

2017 45,598 303,454 74,602 132,867 35,890 668,505

% change -13 -8 0 +22 -9 -1

LUXURY EXPORTER aunched with just one model in 1989, Lexus was always intended by its parent company Toyota to be a luxury export marque that would see its arrival in America followed by Europe and then other markets. Initially spearheaded by the LS 400 into a marketplace traditionally dominated by long-established Germanic rivals including ‘S’ and ‘7’, Lexus had a tough time to break the mould yet managed to win over 1,158 customers over the model’s lifetime in Europe alone, where its combination of reliability, performance, technology and comfort won it immediate fandom.

The company’s portfolio remained small with the LS the sole offering for several years, before being joined by the mid-size GS. And, 20 years ago this year, Lexus introduced the hybrid luxury crossover category with the launch of its RX model, followed shortly thereafter by the IS – a car to once again tackle established rivals, but this time in the highly competitive compact executive market. It succeeded.

Today, the Lexus model range spans each of the premium sectors, yet maintains a strong presence in the luxury crossover and SUV segments, with the NX, RX and RX L models. These will shortly be joined by the UX, which will serve as Lexus’ smallest crossover model and is predicted to be a top seller for the brand. It will also be the first Lexus built upon the company’s new GA-C global architecture platform.

Though there was initial speculation the UX would be built in Europe, it will instead join the NX in being produced

by Toyota Motor Kyushu in Japan.

Other new models include the ES that

L

will take over from the GS, while others have recently undergone refreshing, including the RC and CT models.

Offering a glimpse of things to come, Lexus unveiled the LF-1 Limitless concept – a flagship crossover introducing new ideas including cameras to replace rear-view mirrors and fourdimensional navigation with haptic feedback. Lexus also used the concept to state that by around 2025, every Lexus model will be available either as a dedicated electrified model, or have an electrified option.

Having built an enviable reputation for reliability and quality and frequently found at the top of driver/ownership surveys, Lexus has seen its sales flourish from humble beginnings in the early ’90s to more than half a million annual sales today.

Lexus has consistently grown over its near-30 year lifespan, yet the last year alone has seen an increase in demand for the brand despite the premium market being flat – sales figures between Jan-Aug have increased 6% globally, with significant increases observed in Japan and China particularly (+45% and +23% respectively). In Europe, sales have increased some 7% over the same period too, with growth recorded in several key markets, such as Spain (+19%), Russia (+9%), Poland (+9%), and the UK (+7%).

However, a slight decline has been observed in both the North American and Middle East & North Africa (MENA) regions.

Despite humble origins just 29 years ago, expansion has been rapid and the brand is currently available in over 90 countries. >>

Akio Toyoda, president, Toyota Motor Corporation Mobility I have decided to “redesign” Toyota from a car-making company into a mobility company. A mobility company is a company that provides services related to movement for people around the world.

I view this once-in-a-century era of profound transformation, the likes of which come only so often, as a major opportunity.

My thinking is that the more we advance new technologies, such as those related to electrification, automated operation and connectivity, the broader the potential of automobiles will become.

Connected It's been said that data is the new gold and that software is the key. But I would argue that we're moving from software to the platform as the thing we're all after. It's the platform that will be the backbone for mobility as a service for autonomy, for car sharing, for any number of services that we want to make possible.

That's why two years ago, in partnership with Microsoft, we launched a standalone company called Toyota Connected. With Toyota Connected, we hope to become just as well-known for the Mobility Services Platform we've developed to manage large fleets of vehicles and all kinds of connected services.

We want the car to be a seamless extension of your phone and computer, a kind of personal assistant on wheels, able to anticipate your needs through predictive artificial intelligence.

Electric There is much work to be done to increase consumer demand for all electric vehicles.

That's why we are working on new solidstate battery technology, which we believe will make them smaller, lighter, and most importantly, for both consumers and automakers, much more affordable.

This new form of electrification, combined with our Mobility Services Platform from Toyota Connected, and our autonomous technology from TRI, are the key components in our vision of future mobility services and mobility commerce.

internationalfleetworld.com • 031

FLEET PROFILE LEXUS

>>

Although Lexus’ early success was attributable to larger-capacity conventional engines, The brand quickly adopted hybrid power.

Today, the company is a leader in luxury hybrid vehicles, with more than 1.25 million hybrid vehicles sold globally as of December 2017.

“Self-charging” hybrid power has been central to Lexus’ development, providing a platform that enabled improved fuel consumption, lower exhaust emissions and increased refinement compared to its non-electrified competition and yet crucially ensuring its cars remain seen as offering an engaging drive. Lexus Hybrid Drive was first introduced in the RX 400h and subsequently every new Lexus model has included hybrid versions.

Lexus sells more hybrids than any other powertrain in its stable, with a 60% hybrid sales mix globally and 98% in Western Europe – a higher proportion than Toyota’s own hybrid sales.

Similarly, hybrids have largely replaced diesels from Lexus’ line-up, with the fuel unfavourable in its largest markets: the USA and China. This, together with its already considerable hybrid sales percentage, effectively spelled a natural end to Lexus diesels.

At the other end of the spectrum, Lexus has offered high-end machinery over the years to express its engineering prowess, including the LFA and more recent LC model. These models

aid the brand’s sporting image, while also offering a chance for Lexus to show off what it’s capable of – the LFA’s V10 engine was, for example, capable of 553bhp at a soaring 8,700rpm – at the time one of the most powerful production engines ever made. While headline figures like those may not impress, it’s the execution that did. Lexus engineers had to reinvent certain components and create new materials to cope with the output – some of which have begun to make their way into mainstream models offered by the brand, such as a digital rev counter.

Today, Lexus produces its highestperformance models under its F marque division, which now adorn the RC F coupé and GS F saloon, the latter likely to be replaced soon by a new ES F. Lexus additionally expends large amounts on safety, as well as comfort and luxury for occupants of its vehicles to enjoy. For example, the new ES saloon received top honours at Euro NCAP crash testing, while its seats and noise, vibration and harshness underwent three years of development to ensure maximum comfort and refinement.

Branching out from cars, Lexus unveiled its first super yacht in September 2018 – the 65-foot Lexus LY 650 – which is expected to be completed by the middle of 2019 and adds to Lexus’ other explorations into non-automotive ventures including culinary, film, design and other select luxury lifestyle experiences.

6%

Global sales increase from January to August 2018

60%

Of Lexus global sales are hybrid

98%

Lexus sold in Europe are hybrid

WHERE ARE THEY MANUFACTURED...

Japan Tahara Plant, Toyota Motor Corp. Aichi Prefecture - LS, IS, GX, RC Toyota Motor Kyushu, Inc., Fukuoka Prefecture - ES, HS, CT, RX, NX, UX Motomachi Plant, Toyota Motor Corp., Toyota City, Aichi Prefecture - GS, LC Toyota Auto Body Co. Ltd., Aichi Prefecture - LX

032 • internationalfleetworld.com

Canada Cambridge Plant, Toyota Motor Manufacturing Canada, Inc.(TMMC), Ontario – RX 350, RX 450h USA Georgetown Plant, Toyota Motor Manufacturing Kentucky, Inc., Kentucky - ES

FLEET MODEL RANGE

CT Variants: 5dr hatch Markets sold: Europe, Asia, South America, Oceania Fuel: 4.1-4.4l/100km CO2: 93-101g/km

ES Variants: 4dr sedan Markets sold: Global Fuel: 4.7-8.8l/100km CO2: 107-200g/km

LC Variants: Coupé Markets sold: Global Fuel: 8.6-11.6l/100km CO2: 199-267g/km

RX Variants: Crossover Markets sold: Global Fuel: 5.8-10.2l/100km CO2: 132-234g/km

IS Variants: 4dr sedan Markets sold: Global Fuel: 4.6-8.2l/100km CO2: 104-191g/km

GS Variants: 4dr sedan Markets sold: Europe, Asia, North America, Oceania Fuel: 4.4-11.2l/100km CO2: 104-260g/km

UX Variants: Crossover Markets sold: Global Fuel: 4.1-5.8l/100km CO2: 96-138g/km

GX Variants: SUV Markets sold: Europe, North America, South America Fuel: 12.8l/100km CO2: 303g/km

RC Variants: Coupé Markets sold: Global Fuel: 4.9-7.2l/100km CO2: 108-168g/km

LS Variants: 4dr sedan Markets sold: Global Fuel: 6.2-11.6l/100km CO2: 141-225g/km

NX Variants: Crossover Markets sold: Global Fuel: 5.5-8.6l/100km CO2: 127-196g/km

LX Variants: SUV Markets sold: Global Fuel: 9.5-14.6l/100km CO2: 250-350g/km

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COUNTRY LOWDOWN

CZECH REPUBLIC

We have witnessed an increasingly structured way of working within the Czech market, which has been positive for business.

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MONTHLY MOMENTUM KEEPS CZECH SECTOR BUOYANT THE CZECH REPUBLIC AUTOMOTIVE SECTOR HAS MATURED GREATLY OVER THE PAST 12 MONTHS ACCORDING TO RENE BUZEK, MANAGING DIRECTOR OF AUTOROLA CZECH REPUBLIC, WITH VEHICLE MANUFACTURERS LEADING THE CHARGE.

ith a stable economic and political base, demand for new vehicles within the Czech Republic is high and has seen vehicle manufacturers turn their attentions on improving business infrastructures via the implementation of workflow management tools to enhance automation. These improvements have been led by Fleet Monitor from Autorola Solutions.

We have witnessed an increasingly structured way of working within the market, which has been positive for business and seen demand for our ‘Solutions’ product increase. We are on the cusp of starting up some new projects with OEMs within the market with a view to enhancing their processes and workflows.

However, while many have made major strides in a bid to future-proof their businesses, there is also a proportion of the market that has fallen behind the curve.

W

Leasing segment overloaded The leasing sector is what we describe as overloaded with vehicles at present.

With vehicle sales channelled through to the retail sector, holding out for unrealistic residual values has meant higher levels of stock and high stocking day levels. The private buying market is simply not absorbing the volume of vehicles coming to market. With this, banks are showing signs of nervousness and applying pressure on lease companies to ensure they speed up used sales so they can see return on investment.

From our perspective this challenge is a great opportunity. We are working together with the leasing sector to relieve the pressures to find the right pricing models and to keep stock days under control.

An oversupply of vehicles creates stock issues and this can then mean the pressure has to be relieved by releasing stock, at a discounted rate, to trade buyers. We are therefore using >>

internationalfleetworld.com • 035

COUNTRY LOWDOWN

CZECH REPUBLIC

>> Solutions to educate and coach the

leasing sector about which vehicles to dispose of via which channel to optimise both stocking days and pricing.

Rise in export Despite the overall used car sector being buoyant, the challenge of choosing the correct channel for disposal of certain vehicles has also seen a steady rise in the volume of vehicles being exported. With certain ‘lower specification’ vehicles becoming less desirable as the market matures, some of the major vehicle handlers are turning to export as a means of disposing of the surplus domestic stock.

However, as the lower specification vehicles leave the market via export, the import market is steadily developing with the demand for higher-specification, lower-mileage vehicles rising. In line with the new sector, over the past 12 months the demand for such vehicles is too, very positive.

These imported vehicles are entering the market from Austria, Belgium and, predominantly, Germany.

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Global issues rumble in background Although the market has and continues to evolve at pace, some of the current major global challenges appear to have had little impact on the market to date, but the rumblings are clear.

As the ‘demonisation of diesel’ continues to spread post- ‘Diesel Gate’, the market for diesel powertrains remains buoyant domestically.

However, there are some rumblings within the market that plans are afoot to implement regulatory measures, in line with EU recommendations.

This situation is causing a bit of concern within the market at present, but we’re confident that we will not see big change within the next five years. The impact of WLTP is another issue that has been under great scrutiny in recent months throughout Europe and, looking at the domestic data, registration figures have reduced, yet the market remains positive.

Car registrations in Czech Republic decreased to 14,532 in September 2018 from an all-time high of 27,830 in August 2018. The 15-year average (2003-2018) shows average monthly registrations of 15,733.

Supporting the change With the evolution of the market well underway, technology is beginning to play a key role in progressing business across the board but one of the key challenges within the market is centred on mindset and the willingness to adapt to the new order.

It’s a challenge in some areas for people to accept the need to change their remarketing strategies but, on the whole, the market is recognising that it needs to bring in new processes, business models and management flows to satisfy demand.

Demand for Autorola Marketplace and Solutions is ever increasing. Full implementation covers the whole value chain and allows seamless, end-to-end management of vehicles, whilst bespoke packages can build specific workflows into systems to assist certain areas of business. For us, it’s a very exciting time to be in business.

CZECH ECONOMICS lthough GDP growth cooled to a year-and-a-half low in Q2 2018, available data points to upbeat economic activity in Q3. The unemployment rate remained steady in August after ticking up in July from an all-time low in June. This, coupled with nominal wage growth at its fastest in over a decade, have shored up household purchasing power, which likely contributed to the surge in retail sales in July. Similarly, on the supply side, industrial production expanded at the fastest annual rate so far this year in July, propelled by a jump in manufacturing output.

That said, sound hard data has come at odds with leading indicators: consumer confidence, business sentiment and the manufacturing PMI averaged lower in Q3 compared to Q2.

Meanwhile, Prime Minister Andrej Babis’ minority government finalised the 2019 draft budget on 19 September, prioritising increased spending in investments, pensions and public sector salaries; nonetheless, it targets a smaller deficit compared to 2018’s.

Babis will need backing from the Communist Party yet again for

A

parliamentary approval, after their support enabled his government’s survival of the confidence vote in July.

The economy is expected to lose steam this year and next. However, the pace of growth should remain robust thanks to healthy household spending gains, underpinned by a nearlyexhausted labour market and brisk wage growth, as well as by planned increases in government spending, particularly higher infrastructure investment.

Heightened uncertainty and potential spillover effects from deteriorating global trade conditions cloud the outlook due to the export-orientated nature of the country’s industrial base.

FocusEconomics Consensus Forecast panellists see GDP growing 3.2% in 2018 and 3.0% in 2019, which is unchanged from last month’s projection.

Consumer prices fell 0.3% in September from the previous month, contrasting August’s mild 0.1% rise.

Data released by the Czech Statistical Office (CSO) revealed that September’s dip was largely due to lower prices for package holidays as the summer season came to an end.

Inflation edged down from 2.5% in

August to 2.3% in September. As a result, inflation moved closer to the midpoint of the Central Bank’s 1.0%– 3.0% tolerance band. Annual average inflation, meanwhile, held steady at 2.3% for the seventh consecutive month in September.

The economic sentiment indicator, a composite confidence indicator published by the CSO, climbed from 99.6 in September to 99.8 in October, the third successive monthly rise. As a result, the indicator moved closer to the 100-point mark that separates optimism from pessimism in the Czech economy.

The business confidence index remained steady at September’s 97.3 in October. The reading reflected improved sentiment in the industrial and construction sectors being offset by a deterioration in confidence in trade and services.

Meanwhile, consumers turned more optimistic in October, with the consumer confidence index rising to 112.0 points from 111.0 in September.

The climb was mainly due to consumers’ improved views over the general economic situation in 12 months’ time.

Consumer confidence remains well above the historical average.

(Information provided by FocusEconomics)

internationalfleetworld.com • 037

DRIVEN

Opel Combo Life The answer to small families’ mobility woes isn’t always SUV-shaped, explains Alex Grant.

Parenthood is, to an extent, about survival. It’s taking steps to simplify a life that’s become more complicated with kids and the associated bulky buggies and bags in tow. The solution is often perceived to be SUV-shaped but, from a purely pragmatic perspective, that’s not necessarily true.

The Combo Life certainly isn’t SUVshaped, but it is a good alternative. It’s a van-derived MPV, shared for the most part with Peugeot and Citroën’s sister products – for which, in most markets, there is an established customer base. Alongside the Grandland X, it also gives Opel another option for drivers who would previously have opted for a Zafira.

Although it lacks the kerb appeal of an SUV, it’s infinitely more spaceefficient. The Combo is no bigger than a Grandland X, with which it shares a platform, but it offers a boot large and low enough for an unfolded double buggy and sliding doors to make it easier to load in tight spaces. It even has the rare talent of accommodating three booster seats across the rear

bench, each with ISOFIX points, and a third row of seats is optional. However, large families are better off in the extended XL bodystyle.

Engines are shared with the Crossland X and Grandland X; 100hp and 130hp 1.5-litre diesels, and 110hp and 130hp 1.2-litre petrols, the latter only fitted to the short-wheelbase version. Hard cabin plastics and the tall driving position give away that it’s based on a van, but it drives much like a small hatchback – ride quality is good, it’s easy to manoeuvre in town and wind noise is the only real complaint at higher speeds. The entry-level diesel is impressively quiet, too, even without the sixth gear fitted to the equivalent petrol. An eightspeed automatic transmission is available for the two 130hp engines.

Equipment levels are similarly car-like. High-end options like leather seats haven’t come into this segment yet, but the range is simple and top-level trims get niceties such as alloy wheels, chrome dashboard inserts and touchscreen infotainment. Android Auto and Apple CarPlay are both included, each of which put route-planning apps on the main screen, but built-in navigation is optional. As are the

SECTOR Medium MPV PRICE €19,995-€31,550 FUEL 4.1-5.8l/100km CO2 108-133g/km

038 • internationalfleetworld.com

electric rear windows, which are included on Peugeot Rifter’s midlevel trim – cruder pop-outs are standard on the Opel.

That comparison is symptomatic of its biggest threat. The Combo Life is exceptionally clever, but it’s a newcomer facing two established rivals and it feels the most van-like of the three, lacking either the colourful interiors and flamboyant design of the Berlingo or the faux SUV styling of the Rifter. It’s good news for pragmatic parents seeking an easier life, but likely to be a tougher sell for those who would otherwise opt into something SUV-shaped.

THE LOWDOWN STRENGTHS GOOD VALUE INCREDIBLY PRACTICAL. WEAKNESSES SO ARE PEUGEOT AND CITROËN’S RIVALS

THE VERDICT It’s hard to fault the Combo Life’s talent for moving people and objects, but boxy MPVs are a tough sell in a market where the SUV is king.

RATING

DRIVEN

Mitsubishi Outlander PHEV Does Mitsubishi’s latest reworking of the popular plug-in make it any better? Jonathan Musk finds out…

A fleet favourite for its fuel-sipping credentials; despite its size, weight and space, the Mitsubishi Outlander PHEV sells almost half its volume to fleets.

Key changes include a 15% larger battery (now 13.8kWh), a 10% more powerful electric motor and a largercapacity 2.4-litre petrol engine, which is able to switch between Otto and Atkinson-cycles depending on demand, making it even more frugal than the outgoing 2.0-litre petrol unit.

The headlines: 1.8l/100km and 46g/km CO2 – and that's 'full' WLTP data. EV driving range is 45km WLTP, or 55km in a city – and it really does this, during our time with the car, we managed 48km with ease.

Mitsubishi reckons people can save a lot of money, depending on their driving circumstances and current car by switching to plug-in hybrid power.

As with most plug-in hybrids, wholelife costs come into play, and countrydependent estimated tax savings can be as high as €15.5k over three years for company car drivers when compared to a comparable diesel SUV. However, should you travel above average distances regularly, Mitsubishi will pragmatically point you in the direction of the diesel Outlander.

Out and about, the car feels more at ease than the outgoing model, especially thanks to the more powerful electric motors that allow greater acceleration and top speed – enabling the PHEV to be more EV than petrol assistant. When fuel is burnt, however, the new engine does so smoothly without any transfer noise. With a power increase from 120 to 135hp and 190 to 211Nm torque, it’s a modest improvement on paper but feels more suited to the car.

Economy facts and figures have suffered minutely in the switch from NEDC to WLTP, but in reality the longer electric range allows for more economical results – seeing 0.77l/100km on the trip computer after a 64-kilometre journey says it all, while doing a similar journey in the outgoing model offered around 1.75l/100km – both impressive, but clearly if doing fewer than 64km a day, there are significant savings to be had.

Subtle changes have been made inside and are largely cosmetic, though there’s a new reliance on a smart phone connection to supply sat nav via Android Auto or Apple CarPlay, with no integrated solution offered, and an electronic hand brake replaces the old manual one.

The ‘Basis’ model starts from €37,990,

SECTOR Large SUV PRICE €37,990-€50,590 FUEL 1.8l/100km CO2 46g/km

though in Germany can currently be had for €29,990 after incentives. It’s equipped with sensible EV-friendly options too, including a heated windscreen and seats, as well as an electric pre-heater. In practice these should make a significant difference during winter months, as the car can be pre-conditioned using grid rather than battery power.

Mitsubishi has made sensible changes to enhance its already appealing plug-in package. With a real-world electric range in the high 40s, it’s genuinely usable as an EV, yet the quiet and reasonably refined petrol unit doesn’t break the bank when it takes over. With keen pricing, this is maximum bang-for-buck motoring and should remain a top fleet pick.

THE LOWDOWN KEY FLEET MODEL MITSUBISHI OUTLANDER PHEV BASIS STRENGTHS ELECTRIC RANGE, LOW CO2, PRACTICAL INTERIOR WEAKNESSES SOME IFFY CABIN PLASTICS, UNINVOLVED DRIVE

THE VERDICT How plug-in hybrids should be: practical to live with and economical to run. The Outlander PHEV continues to tick a lot of boxes.

RATING internationalfleetworld.com • 039

DRIVEN

Volvo V60 Volvo’s compact executive wagon gives plenty for rivals to worry about, says Alex Grant.

It would have been hard to imagine only a few years ago, with Volvo’s sales so heavily weighted towards diesel, but the V60 marks the end of an era. This compact executive wagon will be its last ever new car launch with a diesel engine – its future, and to some extent its present, is in progressively more electrified petrol engines.

If ever there was a time for Volvo to ‘go electric’, it’s now. Its stylish new line-up seems unable to do much wrong – global sales to the end of September were up 14.3% on 2017 (to 472,553 units), and that’s despite the XC40 arriving in Q2 in some markets. Although SUVs are more than half of that volume, there’s still space for Volvo to play to its luxury wagon strengths.

This is a full departure from Ford parts, now sharing its platform and technology with the XC60, V90 and XC90. A strong family resemblance with the V90 is certainly no negative, and it’s a well-timed launch. Alfa Romeo, Jaguar and Lexus don’t have wagons to rival the V60 head-on, and the German compact executives are

all either due for, or undergoing, a refresh. New opportunities beckon.

It’s playing to the brand’s recent strengths, too. The cabin is similar to the V90’s; best in lighter colours and wood, but awash with high-quality materials even in a more Germanic spec. It feels durable and logically laid out, even down to the portrait infotainment display which has the rare talent of not making touchscreen climate control settings hard to operate while driving, and the seats are up to Volvo’s long-established reputation for comfort.

For now, diesel is likely to continue playing a vital role with European fleet customers, and there’s a choice of 150hp D3 and 190hp D4 2.0-litre engines to meet their needs. Both are available with an eight-speed automatic or six-speed manual transmission, and fuel economy is almost identical between them. We tested the D4 manual – a muscular performer well suited to the V60’s slightly sharper-than-V90 driving character, but noticeably noisier than its larger stablemate.

Petrol options comprise the T5 and T6, and the range will include two petrol plug-in hybrids producing up to 390hp. At 49g/km CO2, and with

SECTOR Compact Exec PRICE €37,000-52,000 FUEL 2.1-9.0l/100km CO2 47-206g/km

040 • internationalfleetworld.com

clever packaging of the batteries meaning there’s been no need for an overly-downsized fuel tank, these offer some scope for broader fleet appeal in markets with the right incentives in place. Especially as these also don’t lose any of the V60’s competitive load-hauling ability.

The V60 perhaps doesn’t offer as much of an opportunity to grow as the surging market for premium SUVs, but there’s still a strong market for cars like this in fleet and the newcomer has the styling, technology and running costs in its favour to stand out. It might be the last of an era, but it’s still the start of something new.

THE LOWDOWN STRENGTHS GOOD TO DRIVE STYLISH WEAKNESSES NOISY DIESEL ENGINES

THE VERDICT Volvo is setting high standards for its competitors and the V60 follows in that same vein.

Lower-powered PHEVs might help with fleets, though.

RATING

DRIVEN

Ford Fiesta Active Active trim adds SUV looks to the Fiesta line-up, finds Jonathan Musk.

With a raised ride height, ‘rugged body styling’ and designed for muddy boots and soggy passengers, Active is Ford’s latest trim level to adorn the Fiesta, Ka+ and Focus with all-important fashionista SUV styling.

The Fiesta Active is, therefore, Ford’s first-ever Fiesta SUV; benefiting from a handful of nifty modifications to the standard model.

The main and most obvious change is the styling, which receives mud-friendly wheel arch trims and roof bars as standard plus a variety of colour options and customisations. Aside from this upgrade, the car is decidedly standard inside, so don’t expect any additional boot space or clever storage options.

However, the Active is no mere suspension jacking-up job either, with a new hydraulic rebound stopper and unique knuckle geometry. And, to offset the 18mm taller ride height aesthetic, 17-inch alloys are standard across the Active range, although these do add to the road noise a little.

Ford’s other notable modification is a ‘slippery’ driving mode. This fiddles with the stability and traction control to provide more grip, for example when

pulling away on mud, gravel, snow and likewise when cornering.

Engine options include 85, 100, 125 and 140hp outputs from the 1.0-litre EcoBoost petrol engine or 85 and 120hp versions of the 1.5-litre diesel. Each is equipped with a six-speed manual or an auto box is available on the 100hp petrol or 85hp diesel. The majority sold will likely be the 100hp EcoBoost, while the diesel remains the best option for ultra-high milers – offering 4.2l/100km from the 85bhp variant and just 108g/km CO2. Go for the 125bhp EcoBoost and there’s bags of power without a CO2 penalty, with it emitting the same 113g/km as the 100hp petrol.

Figures across the board are slightly worse than the regular Fiesta.

Three Active trims start from €17,950 for the ‘Active’, which is also predicted to be the best seller. ‘Active Colourline’ adds some fancy yellow highlights to the interior, Ford’s SYNC 3 system and a decent sound system, while ‘Active Plus’ tops the range and adds partial leather seating and other premium equipment.

Out on the road, it drives much like a Fiesta, so it’s a very capable thing, but with modified suspension the ride is more refined and less jittery than the standard Fiesta. Conversely, cornering isn’t quite as assured, but it’s certainly

SECTOR Supermini PRICE €17,950-€21,450 FUEL 4.2-5l/100km CO2 108-138g/km

no worse for it in everyday driving.

Hooning around a track is not this car’s natural environment, yet chucking it about a go-kart venue demonstrated impressive body control. The EcoBoost range is versatile and rewarding to drive, with plenty of power available at most speeds, though the 85hp petrol and diesel feel a touch underpowered. Small seats hold passengers well, but could be criticised as being too small and may prove uncomfortable for plus-sized individuals.

THE LOWDOWN KEY FLEET MODEL FIESTA ACTIVE 125HP 1.0-LITRE ECOBOOST STRENGTHS STRONG ENGINE OPTIONS, GOOD RIDE QUALITY WEAKNESSES A COSMETIC SUV, NO TRUE OFF-ROAD CREDENTIALS

THE VERDICT With SUV looks and the Fiesta’s proven qualities, the Active range adds to an already excellent car.

There’s nothing to dislike, but pricing may prove a tall order for what are largely cosmetic changes.

RATING

fleetworld.co.uk • 041

OPINION

Tobias Kern managing partner, fleetcompetence Group

Time to be positive about batteries leet electrification is progressing, but it is clear that – with the exception of Norway – it is a long way from becoming mainstream. Some might argue whether it will actually ever be relevant to fleets; however, on the other side of the coin, they might be surprised to hear the range of possibilities, which are already achievable.

Considering the broad bandwidth of opinions on electrification, one key question remains: beyond the evaluation of pure rational facts, is electrification also a matter of the right attitude?

People typically fall into one of two categories: EV optimists and EV pessimists. Based on the attitude, different views on typical EV challenges can be derived from a number of angles:

F

Range anxiety For pessimists, range limitation is still perceived as one of the killers for any electrification programme, which prevents drivers from using full electric vehicles. However, it is surprising how many drivers cope with EV ranges when taking the time to analyse the usage patterns in more detail. And if full electric vehicles don’t matching all the range requirements, PHEV technology is still an alternative, although thorough regulations are needed to keep the use of the combustion engine as low as possible.

Product limitations For special requirements, such as ‘towing trailers with LCVs’ or specific equipment options, the pessimist will often find some road-blocks to electrification. The optimist might assess the operational requirements in detail first,

042 • internationalfleetworld.com

in order to understand the ‘must-have’ compared to ‘nice-to-have’ features, proving at least a certain share of the fleet can be electrified. The current vehicle range covers many needs – and more models continue to be announced.

Limited infrastructure for charging From a purely pessimistic view, drivers will run out of electricity and get stranded because of the lack of charging points right at the moment of need.

Accepting those limitations in the

People typically fall into one of two categories: EV optimists and EV pessimists. short-term and starting to actively plan trips and charging stops means changing one’s habits. However, this should not be an unreasonable hurdle.

Furthermore, drivers may find more charging stations than expected – did you ever call your client or supplier to find out if visitor parking is equipped with a charging station?

Business case Interestingly, the pessimists would probably be surprised about the outcome when doing a thorough TCO analysis by also considering the impact on taxation,

governmental subsidies and charging infrastructure. Over the last 12 months, the tremendous shift of cost levers such as residual values, tax impact through WLTP, increasing fuel prices and enhanced vehicle rebate offers support the development to come close to, or even exceed, the break-even point. Obviously, the levers impact the TCO differently depending on the country. So, bad news for pessimists: the trend in Europe for a beneficial business case is positive.

Level of complexity It is a fact that the development and introduction of an electrification program is a complex topic, where pessimists might see an over-kill for the fleet department.

However, it is also a fact that electrification is only one subject of change next to numerous others such as WLTP, IFRS16, mobility, influencing fleet strategies.

Looking positively: one will surely not get bored over the next few years! Better to get used to change by embracing the advantages resulting from it?

As an underlying aspect to all the areas above, people tend to be hesitant or even resistant to change their habits. New topics – such as electrification – require people to move out of their usual comfort zone, which requires time.

Consequently, introducing an electrification programme means managing the change process in the first instance.

The pure market factors start speaking in favour of electrification – at least for a certain share of fleet vehicles – however, the right attitude to overcome the challenges of electrification seem to lack behind and thus turn out to be the real showstopper!

SUBSCRIBE NOW! For all your global fleet needs, visit fleetworldsubscriptions.co.uk to receive International Fleet World magazine every month. om lfleetworld.c rnat•iona inte ationalfleetworld.com 8 • er intern 2018 Octob October 2018 • internationalfleetworld.com October 201

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