International Fleet World October 2012

CO²OL*

A Daimler Brand

*The new A-Class with CO₂ emissions as low as 98 g/km.

www.kia.eu

LOTS OF SPACE, NICELY SHAPED.

7-year warranty* From 4.2 l/100 km From 109 g CO2/km Trunk capacity up to 1,642 litres**

THE NEW KIA CEE’D SPORTSWAGON. EXCITEMENT. QUALITY. FLEET-ABILITY. Isn’t that what you’ve always wanted? The perfect Sportswagon: dynamic on the outside, plenty of space and versatility inside, designed and built in Europe, with low fuel consumption and low CO2 emissions, high residual value and innovative technology backed up by a unique 7-year manufacturer warranty. Voila, here it is - our new Kia cee’d Sportswagon. Want something different? No problem, our fleet range offers enough variety to let each and every employee find the right model. Meet a different kind of fleet: www.kia.eu

* The Kia 7-year/150,000 km new car warranty. Valid in all EU member states (plus Norway, Switzerland, Iceland and Gibraltar), subject to local terms and conditions. ** Maximum trunk capacity achieved by fully folded rear seats.

Fuel consumption (l/100 km)/CO2 (g/km): urban from: 5.0/129 to 8.8/198, extra-urban from: 3.8/98 to 5.3/121, combined from: 4.2/109 to 6.5/146.

INTERNATIONAL

CO²OL*

A Daimler Brand

*The new A-Class with CO₂ emissions as low as 98 g/km.

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

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

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VIEWPOINT

CONTENTS

Ever since I started writing about the motor industry in 1988, one word has been every present. It's the ‘O’ word – overcapacity. It has re-surfaced recently in relation to PSA Peugeot Citroen, currently facing one plant closure and the shedding of thousands of jobs. PSA is not the only company riding a bumpy road at the moment.

The GM Europe balance sheet still shows red and Ford’s European operation has switched from profit to loss in the past twelve months.

The question is, are things now bad enough for the global industry to deal with this long-standing problem? It is not an easy one to solve - the issue of closing plants is a very sensitive one both for manufacturers and governments, particularly those in need of good news, or approaching election time. It is easy to solve the question on paper – close this plant, move production here and there and carry on. And while there are expanding manufacturers looking to break into established markets such as Europe and the United States, it is natural for manufacturers to want to fight back, even if they are on the back foot.

At the same time, we need motor vehicles that don't fit the current steel monocoque, assembly-line product description. We need lighter vehicles so that we can make serious inroads into fuel consumption and emissions reduction. These could be made in smaller numbers while remaining profitable products for their makers. Is now the time for manufacturers to take those steps?

04 News Analysis 08 2012/13 Fleet Calendar 10 EV News Analysis The latest from the EV Fleet World.

12 Management How software developments are helping international fleets.

16 Strategy European residual value confidence.

18 Paris Motor Show Highlights of the Mondial de l’Automobile.

26 MIMS Review of the recent Moscow Show.

27 Industry Analysis Residual value analysis across Europe.

28 Fleet Focus FRANCE

32 Interview Jeff Guyton, president of Mazda Motors Europe.

34 FLEET PROFILE: MERCEDES-BENZ

40 Operator Profile Invensys.

43 Launch Report Audi A3 / Ford Focus BEV / Ford Transit Custom / Mercedes-Benz Citan.

48 Fleet in figures

18 32 32 44

John Kendall Editor

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

IFW October 2012

03

news analysis

Jaguar product revolution Jaguar is in the midst of a product revolution that will increase the number of customers it is able to reach, the kind of cars it will build and the way it will build them.

The four-wheel-drive XF and XJ, introduced at the Moscow show and destined for America, China, Russia and the Alpine regions of Europe, are just the start of a policy to meet local needs through a more flexible model strategy, says Adrian Hallmark, the head of the brand. ”In five years or so we will have developed new engine families that will be flexible in how we use them and new platforms that will allow us to do whatever we want with them,” he promised. ”They will be highly efficient and totally modular. The engines will be suitable for north-south or east-west installation, while the platforms will allow us to build large cars or small cars. They will be developed for Jaguar, but there will be synergies with what is happening at Land Rover.”

But first Jaguar has to leverage more market coverage out of the models already on its books, and has recently announced plans to fit a 2.0-litre four-cylinder turbo engine, driven by the taxation regime in China, and a 3.0-litre supercharged V6 to selected versions of the XF and XJ ranges. ”Adding the 2.0-litre and 3.0-litre engines takes our coverage of the market segments from 10% to 70%,” says Hallmark.

Jaguar owner, Ratan Tata, was the driving force behind the

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creation of the four-wheel-drive XF and XJ models unveiled at the Moscow show.

When he went to America after taking over the company, US dealers pressed him for all-wheel-drive to cover a significant gap in the Jaguar product armoury. ”Mr Tata has a real love of America, and when he went there to talk to the dealers they told him they needed fourwheel drive,” said Adrian Hallmark, head of the Jaguar brand. ”But he is also a man who likes to see all the facts and figures before rushing into anything, so when he got back he asked if it could be done, both technically and economically, and it soon became obvious that the volumes made a compelling business case.”

America will be the top region for Jaguar all-wheel-drive sales, taking up to three-quarters of production. China, Russia and the Alpine countries of Europe will also get the cars. ”In the US, 40% of our volume will be all-wheel drive,” said Hallmark, ”possibly more. In the mountain states 70% of the premium car market is four-wheel drive, and the market average is 40%. ”In China, 30 to 40% of sales will be four-wheel drive, and the same in Russia. The percentages will be smaller in Europe, but in specific regions like Bavaria it will be much higher.”

The four-wheel-drive models will be built only in left-hand drive. They will be offered with just one petrol engine - the new 337hp 3.0-litre supercharged V6.

for the latest news, visit internationalfleetworld.com

Ford reveals new models Ford has unveiled a comprehensive line up of new cars and vans ahead of the Hanover CV Show and Paris Motor Show in September. The company is set to launch into the expanding SUV sector with the ECOSPORT, first seen at the Delhi motor show earlier this year.

The car, based on Ford’s global B-segment platform shared with the Fiesta and B-Max, will be a challenger to the Opel/Vauxhall Mokka, Chevrolet Trax, Buick Encore, Fiat Panda 4x4 and Nissan Juke. EcoSport was designed by an international team in Ford EcoSport Brazil and is due to arrive in Europe within 18 months. Assembly is planned for several locations around the world including Brazil, India and China.

Features for the EcoSport will include the Ford SYNC in-car connectivity system, which will enable owners to activate phone calls by speech and select music from devices connected via Bluetooth or USB. At the opposite end of the SUV scale, Ford will also introduce the Edge large SUV from North America.

Ford has comprehensively revised the FIESTA with fresh design inside and out. Features will include Ford SYNC and MyKey, a programmable key that will enable parents to speed-limit the car for teenage drivers. A 180hp ST New Ford Fiesta model will top the range, which will include the 1.0-litre EcoBoost and Ford’s new 1.5litre TDCi diesel. Options will include an Econetic version delivering 87g/km carbon dioxide emissions. The car will go on sale in Europe on 1 January 2013.

Ford took the wraps off the new ‘2.0-tonne’ Ford TRANSIT, which will also be a global model, eventually replacing the Ford Eseries van in North America.

European models will be powered by a derivative of the current 2.2-litre Transit diesel and will be offered with front and rear New Ford Transit wheel drive. North American models will be rear-wheel-drive only, with power from a choice of V6 petrol engines and a diesel.

The new Transit and Tourneo Connect will also be global models, with European build moving from Turkey to Valencia in Spain, because the new model is based on the C-MAX platform.

Transit and TRANSIT CONNECT are due on sale during 2013 and Ford will introduce a new small van, the Transit Courier, which will also be available in TOURNEO passenger carrying form. The Courier is not expected for another 18 months.

New Ford Mondeo New Ford Tourneo Connect

The new Ford MONDEO has already been seen as the Ford Fusion in North America. The car is due on sale in Europe later in 2013 and will offer a range of new drive options, including Ford’s 1.0-litre 125hp EcoBoost engine already available in the Focus. Ford quotes carbon dioxide emissions of 125g/km for this model. There will also be a petrol/electric hybrid, fitted with a 2.0-litre Atkinson Cycle engine, CVT gearbox and electric drive capable of propelling the car to 100km/h. 1.6-litre engines will also feature, as well as a 2.0-litre diesel model with 4x4 drive.

The car will be available with Ford’s SYNC system and MyFord Touch including an eight-inch colour touch screen and ability to act as a Wi-Fi hotspot for up to five devices.

Other features include LED headlamps with LED high and low beam that will turn with the steering. Ford says the LED headlamps will extend the front lighting for a further 10m. Mondeo will also introduce rear inflatable seatbelts to European models, designed to reduce head, neck and chest injuries.

New Ford Transit Connect

FOCUS stakes its claim at the top of global sales charts, Toyota disagrees. The Ford Focus is the world’s best-selling car, according to new figures from Automotive Intelligence firm IHS. Ford’s global car sold 489,616 units in the first six months of this year, outstripping its nearest competitor, the Toyota Corolla, by more than 27,000 units. Whilst Ford is staking a claim to the top of the sales chart for its third generation Focus, Toyota has thrown doubt on the figures. According to reports in The Wall Street Journal, the Japanese firm says its global car, the Corolla, actually shifted more than 600,000 units over the same period. The discrepancy stems from the way in which IHS Automotive calculates the figures – it doesn’t include units of the Corolla sold under different names around the world. And whilst Toyota’s global car is sold under badges including Fielder, Matrix and Auris, Ford’s global car is badged as the Focus in all territories around the globe.

IFW October 2012

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news analysis

Honda invests €333m in UK plant

Skoda posts record results

Honda has announced a €333m investment programme in its Swindon, UK plant. The news coincides with the launch of its new CR-V model, which will be built there alongside the new Civic, and marks the largest investment in the site in more than a decade.

A further 500 new staff have been recruited so far this year to support increasing production levels, taking the total workforce at the plant to 3,500. The latest capital injection will also support production of a new 1.6-litre diesel engine to be fitted to the new Civic.

By the end of this year, Honda UK Manufacturing will have doubled production compared to 2011 levels, with 183,000 units forecast to have rolled off the line in Swindon. That number is expected to rise to 250,000 within three years.

More than half of Swindon’s output is exported, with 60% of cars and engines built in Swindon delivered to overseas markets across Europe, the Middle East, Africa and Australia.

Commenting on Honda’s announcement, UK business secretary, Vince Cable, said, ”This multi-million pound investment by Honda in its twentieth year of car production in the UK is great news for Swindon and the automotive sector. Having created a host of new jobs, the investment supports Government’s ambition to encourage new investment and exports as a route to renewed growth and a more balanced economy.”

The good news from Honda is tempered by concerns about overcapacity elsewhere in mainstream car manufacturing. Vauxhall shut down its Ellesmere Port and Luton plants for a week on 24 September to try and halt rising stocks of unsold cars amid falling European sales.

Skoda had a record July, with sales growth of 6% year-on-year.

Despite the strong economic headwinds, the company had its strongest July in corporate history, delivering 72,600 cars (2011: 68,500). The Volkswagen-owned brand continues to do well in emerging markets, including China – its strongest market – where deliveries rose by 6% year-on-year to more than 19,000 in July. The Chinese market is particularly strong for Skoda’s Octavia model. However, despite strong performances in the UK (up 20%), Denmark (24.7%) and Belgium (8.1%), overall sales in Western Europe fell by 7.1% for the period, reflecting the tough prevailing economic conditions in the region.

Fleet Logistics acquired by TÜV SÜD Auto Service GmbH Leading European fleet management firm Fleet Logistics has been acquired by Munich-headquartered TÜV SÜD Auto Service GmbH. The news comes one year after the pair launched a strategic partnership and produces a combined fleet for the new operation of over 100,000 vehicles across Europe.

The deal bolsters TÜV SÜD Auto Service’s plans to become the leading independent supplier of fleet services in Europe. Prior to the acquisition, the German company had around 35,000 vehicles under contract, whilst Fleet Logistics managed 65,000 contracts across Europe for large corporate clients including telecoms giant, Ericsson.

Working under the German firm’s FleetCompany brand, the combined operation aims to bring economies of scale in supplier management and purchasing to help customers control the costs of outsourcing their fleet services.

Chairman of the Management Board of the new TÜV SÜD subsidiary, Rainer Laber commented: ”The acquisition provides us with a firm foundation, immediately giving us the capability of looking after the European fleets of international companies. Together with our clients, we will grow in their high-volume markets – including those outside Europe.” TÜV SÜD wants to see the new company double its vehicle inventory over the next three years.

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for the latest news, visit internationalfleetworld.com

LeasePlan sees first half profits fall LeasePlan has reported first-half profits of €123 million, a drop of €13 million compared to H1 2011. The Dutch headquartered fleet management company attributed the fall in profits to one-off income elements included in its 2011 comparative results, but also reports worrying signs of the market contracting in recession-hit countries. Citing faltering economies in its key European markets as a factor, LeasePlan said terminated leases were running at ‘material’ losses in some countries, reflecting the significant variations in vehicle resale values across Europe. LeasePlan’s total fleet size also fell by 1,000 vehicles to 1,327,000, compared to a rise of 3,000 vehicles over the same period last year.

Commenting on the results, LeasePlan’s chairman and CEO, Vahid Daemi, said: ”Despite the unpredictable nature of the external operating environment, we remain confident in the strength of our continued business performance in the majority of countries in which we operate. We intend to continue to take caution regarding the ongoing volatile behaviour of the financial markets that is affecting certain countries, and in particular their respective governments. These situations threaten to undermine economic growth in these countries, and LeasePlan continues to monitor developments accordingly.”

Mazda establishes manufacturing facilities in Russia Mazda has opened a new manufacturing facility in Vladivostok as part of a joint venture deal with Russian manufacturer Sollers. The factory in Russia’s Far East federal district will produce the CX-5 with an annual capacity of 50,000 cars.

Officially opened by Vladimir Putin in September, the Mazda-Sollers plant is a 50-50 joint venture, and will operate as an assembly-only plant at first, with paint and body shops to be established prior to the all-new Mazda 6 joining the production line later. Production will then be ramped up to around 100,000 units annually. ”The Russian automotive industry is rapidly growing, with annual sales closing in on three million units.

Mazda is at the vanguard of the auto industry in establishing a plant in Vladivostok, a land expected to grow as an important hub, especially within the East Asian Economic group,” said Mazda president and CEO, Takashi Yamanouchi, at the plant’s opening ceremony.

Indian Automotive market ‘cautiously optimistic’ Despite a softening in demand for new cars in India, the industry should remain cautiously optimistic about future growth prospects in the region, says Automotive Intelligence firm LMC Automotive. Consumer confidence is currently faltering as global economic worries continue, but LMC forecasts an annual light vehicle market in India of 10-11 million units by the end of the decade. Passenger and commercial light vehicle sales in India are set to reach 3.4 million units this year, with a modest rise to 3.9 million units in 2013, according to LMC forecasts.

in brief...

Lease accounting whitepaper published Asset finance consulting firm CHP has published a whitepaper summarising the latest proposals for reforming lease accounting standards. The paper can be downloaded from www.chpconsulting.com.

The IASB and FASB are expected to publish another round of draft proposals in late 2012.

CHP Consulting Whitepaper.

Lease Accounting Reform: The Systems Impact for Asset Finance

August 2012

CHP Consulting Limited

Renault-Nissan boss forecasts slow recovery Carlos Ghosn, Renault-Nissan CEO, has told Bloomberg he expects the European motor industry to take many years to recover from its present afflictions of over-capacity and slowing demand. Ghosn said Nissan would carefully manage production capacity and focus on growth in South-East Asia and the US over the medium-term.

ABI launches insurance fraud register In a bid to curtail the £1bn-a-year insurance fraud industry, the UK Association of British Insurers has launched an insurance fraud register which will contain details of all known insurance fraudsters. According to the ABI, last year 45,000 fraudulent motor claims amounting to £541m were detected.

Kia makes strides in the US Kia sales in the US are up 16.6% yearon-year. The South Korean brand delivered 50,000 cars in August – up 21% over the same period last year. Both the US-built Optima and Sorento SUV are Kia’s big sellers across the Atlantic – with the former having reached 100,000 sales already this year.

IFW October 2012

07

Lessors.

2012/13 fleet calendar International Fleet World’s guide to what’s happening in the fleet industry in the comimg months – when, where and how to find out more info...

October 10-12 Kiev International Motor Show, TIR’2012, Ukraine (CV) www.autoexpo.ua 11-12 Annual Conference of European Leasing and Automotive Rental Industry, Cannes, France www.annual-convention.eu 20-28 Sydney International Motor Show, Australia (PC, LCV) www.motorshow.com.au 24-4 November São Paulo, 27th International Automobile Trade Show, Brazil (PC, LCV) www.salaodoautomovel.com.br 26-28 Oslo Motor Show, Norway (PC) www.messe.no November 2-11 Istanbul International Auto Show, Turkey (PC) www.odd.org.tr 23-2 December Guangzhou International Automobile Exhibition, China (PC, CV) www.autoshow-gz.com 30-9 December Los Angeles Auto Show, USA (PC) www.laautoshow.com December 2-6 Riyadh International Motor Show, Saudi Arabia (PC) www.recexpo.com 7-16 Bologna Motor Show, International Automobile Exhibition, Italy (PC, LCV) www.gl-events.it January 2013 11-20 91st Brussels Show, Belgium (LCV, RV) www.febiac.be 19-25 Cairo International Motor Show, Egypt (CV) www.mondial-automobile.com 19-27 North American International Auto Show, Detroit (Industry Preview, 16-17) (PC) www.naias.com February 8-17 Chicago Auto Show, USA (PC) www.chicagoautoshow.com 15-24 Canadian International Auto Show, Toronto, Canada (PC) www.autoshow.ca March 1-13 Transportec Logitec 2013, Verona, Italy (CV) www.tltexpo.it 7-17 Geneva 83rd International Motor Show, Switzerland (PC) www.salon-auto.ch 22-31 Belgrade International Motor Show, Serbia (PC, LCV) www.belgradefair.rs 29-7 April Seoul International Motor Show, South Korea (PC, LCV, CV) www.motorshow.or.kr April 3-14 Amsterdam International Motor Show, The Netherlands (PC) www.autorai.nl 9 - 11 The Commercial Vehicle Show, Birmingham, UK (CV) www.cvshow.com 23 – 26 NAFA Institute and Expo, Atlantic City Convention Center, NJ, USA. www.nafa.org/conference May 11-19 Barcelona International Motor Show, Spain (PC, LCV) www.firabcn.es 31 International Kyiv Auto Salon 2013, Ukraine (PC) www.sia-motorshow.com.ua KEY: PC – passenger cars // LCV – light commercial vehicles // CV – commercial vehicles

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CO²OL*

*The new A-Class with CO₂ emissions as low as 98 g/km.

A Daimler Brand

The pulse of a new generation. Thanks to state-of-the-art technical features such as the ECO start/stop function fitted as standard, the new A 180 CDI BlueEFFICIENCY is one of the most efficient diesel vehicles in the compact car segment – with CO₂ emissions from just 98 g per kilometre. And because road safety is not a matter of price at Mercedes-Benz, the radar-supported COLLISION PREVENTION ASSIST system also comes as standard. Find out more at www.mercedes-benz.com/fleet

Fuel consumption urban/extra-urban/combined: 8.4–4.5/5.1–3.3/6.4–3.8 l/100 km; combined CO₂ emissions 148–98 g/km.

Figures do not relate to the specific emissions or fuel consumption of any individual vehicle, do not form part of any offer and are intended solely to aid comparison between different types of vehicle.

EV news analysis

Saab sale finalised, with electric 9-3 due within two years Chinese-Swedish consortium National Electric Vehicle Sweden (NEVS) has finalised its acquisition of bankrupt carmaker Saab, with plans to revitalise the manufacturer as a producer of electric vehicles based on the 9-3.

Under the deal, which was completed on 31st August, NEVS owns the main assets of Saab Automobile AB, Saab Automobile Powertrain AB and Saab Automobile Tools AB. Included are the intellectual property rights for the 9-3 and Spyker-developed Phoenix platform due to underpin the next model, as well as the manufacturing plant, test and laboratory facilities.

The carmaker is planning to launch its first model, an electric version of the 9-3 using a Japanese-developed drivetrain, within two years. Offers of employment have already been sent out to staff being considered for 75 management and other key roles within the company, which will be based out of the carmaker’s headquarters in Trollhättan, Sweden.

Saab Parts AB and the GM-owned intellectual property rights for

the larger 9-5 saloon are not included in the sale. NEVS will be able to sell Saab-branded cars under license from aerospace and defence company Saab AB, but is unable to use the existing logo.

Karl-Erling Trogen, chairman of NEVS, said: ”We will match Swedish automobile design and manufacturing experience with Japanese EV technology and a strong presence in China.

Electric vehicles powered by clean electricity are the future, and the electric car of the future will be produced in Trollhättan.”

Kai Johan Jiang, founder and main owner of National Modern Energy Holdings Ltd, the majority shareholder of NEVS, added: ”Chinese customers demand a premium electric vehicle, which we will be able to offer by acquiring Saab Automobile in Trollhättan. Engineering and development of our first electric vehicle has been underway for an extended period in China and Japan, and now, with the manufacturing facilities in our possession, we are able to continue development work on site at Trollhättan.”

BMW launches EV sharing in San Francisco BMW Group has launched its DriveNow car sharing service in the US with a fleet of 70 electric vehicles deployed in San Francisco.

The service, a joint venture between rental company Sixt and BMW Group, launched in Germany in June 2011 using conventionally powered vehicles, and has since grown to 45,000 members spanning Munich, Berlin and Dusseldorf, with Cologne to join this autumn.

DriveNow will also be used to support the forthcoming BMW i electric vehicle range, offering a service where owners can borrow conventionally-powered models for journeys outside their own vehicle’s electric range.

In San Francisco, a fleet of 70 1 Series-based battery-electric ActiveE cars have been deployed at nine pick-up locations across the city. Customers can register online and reserve a vehicle via the website or mobile app, dropping them off at any DriveNow location when the loan is finished.

Extending the group’s partnership with Coulomb Technologies, customers will also be able to use the ChargePoint network of privately owned, public access charging stations across San Francisco. Parking and charging at DriveNow locations is provided free of charge and BMW will add 14 ParkNow parking spaces, which can be reserved remotely, across the city from September.

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for the latest news, visit evfleetworld.com

Diesel hybrid Range Rover confirmed Land Rover has confirmed a diesel-electric hybrid version of the new Range Rover, which will return fuel efficiency of 6.3l/100km with CO2 emissions of 169g/km.

The fourth-generation Range Rover uses an all-aluminium body shell and lightweight suspension components to offer up to a 350kg reduction in weight over its predecessor, in turn improving agility, performance and economy.

Two diesel engines and a petrol will be offered at launch, but the range will grow to include a diesel-electric hybrid shortly afterwards, likely to be based on the TDV6 engine and knowledge gained during the Range_e plug-in hybrid project.

The drivetrain could also be used in the Jaguar XJ, which has already been shown with a plugin hybrid setup, named the XJ_e.

Better Place opens first Battery Switch Station in the Netherlands Better Place has installed its first Battery Switch Station in the Netherlands, supporting an electric taxi trial operated out of Amsterdam’s Schiphol Airport.

Initially just for use by the fleet of 10 Renault Fluence Z.E. taxis, operated by Dutch private hire operators Connexion, Bios and TCA, the station allows depleted batteries to be swapped for fully charged ones within minutes. In turn, this means the taxis can work virtually around the clock, with no need to stop for hours at a time to recharge.

The station serves one of the busiest transport routes in the Netherlands, with over 700,000 taxi journeys per year originating at Schiphol Airport. A second battery swap station is planned for central Amsterdam to extend the trial’s service area.

Nissan begins rural field trial of e-NV200 electric van in Japan Nissan has announced further field trials of the e-NV200 electric van, with a fleet of London taxis planned for 2013 and a study into rural applications completed during September.

The carmaker unveiled a diesel-powered NV200 taxi in the UK capital in August, and has begun discussions with stakeholders about boosting the city’s recharging infrastructure. An electric version could offer running costs one-fifth the size of a traditional London taxi, the company said.

In Japan, an e-NV200 test vehicle was deployed for a two-week trial in the rural Tochigi Prefecture in September with the local government, examining the use of electromobility in areas prone to electrical blackouts and where fuel stations are declining due to a shrinking, ageing population.

Mass production will begin at Nissan’s factory in Barcelona next year, following trials with the Japan Postal Service, FedEx, British Gas and Japanese supermarket chain AEON over the last 18 months.

in brief...

Efficiency boost for PSA Hybrid4 PSA has completed a mid-life software upgrade on its diesel-electric Hybrid4 drivetrain, resulting in a fuel economy boost to 80.7mpg with CO2 emissions of 91g/km for the most efficient Citroën DS5 and Peugeot 3008 models with the system. The revisions are said to be most beneficial during urban driving.

Ricardo and Intelligent Energy partner on fuel cells UK-based engineering companies Ricardo and Intelligent Energy have formed a non-exclusive partnership to develop components and systems for electric and fuel cell vehicles for automotive manufacturers. Intelligent Energy already has a fuel cell system on test in a converted London taxi, while Ricardo will add its product development, engineering, consulting and clean technology knowledge to the partnership.

£13m UK battery research centre announced The UK government’s Department for Business, Innovation and Skills has announced it will part-fund a £13m (€16.3m) research centre to develop high output batteries for hybrid, electric and hydrogen fuel cell vehicles, including marine and rail applications.

Business minister Michael Fallon said the investment was aimed at capitalising on a growing global market for the technologies, and could bring £250m to the UK economy by 2020.

Peugeot and Citroën to launch electric vans Aiming to rival the Renault Kangoo Z.E., Peugeot and Citroën have unveiled electric versions of the Partner and Berlingo vans, due for a 2013 launch.

Both use a 67bhp Mitsubishi-sourced motor, with a 105-mile range from the batteries mounted under the floor and the option to fast-charge, plus a choice of two wheelbases with payloads of up to 685kg.

IFW October 2012

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management

An unenviable task John Kendall finds out how fleet software developments have helped international fleets.

Fleet managers have an increasingly unenviable task. Vehicles need to be bought and disposed of at the right times. They need to be maintained at the right times and the legal and maintenance requirements of any equipment itted to the vehicle needs to be factored in too. Then there are taxation requirements that need to be logged, which might require the recording of private use.

Fuel purchase needs to be logged and reconciled, and so the list goes on.

Then for leets operating across borders, there are the added complications of different tax regimes and legal requirements. It would require a labour intensive and dedicated team of individuals to maintain all this information on paper. Fleet management software offers the potential to do more than log the information required. It can be used to send alerts to the relevant individuals for routine servicing, driver licence checking, vehicle acquisition and disposal and many other things that need constant attention.

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What do customers want from fleet management software? What are the current trends? We asked Ashley Sowerby, managing director of Chevin Fleet Solutions (below), for his view.

How has fleet software demand changed over the past year across Europe, North America and in other places?

There are common themes relating to global demand for leet software, such as reduced manual administration and cost, which are

as relevant now as they have ever been.

Although speci ic industry challenges may differ from country to country, the leet management pains remain pretty consistent across the North Americas, Australia and Europe and are very much focused around the issues of control and compliance.

Historically, Africa and the Middle East differ in respect of compliance, simply because there has been less legislation – or indeed enforcement of legislation – relating to operating commercial vehicles. As the African and Middle East leet management markets become more sophisticated – as they are doing, and the sectors supporting them, particularly the mining sector in Africa, grow and become more competitive – the need to better monitor and manage leets becomes greater. Cost reduction through increased ef iciency has been a major selling point for leet management software companies targeting both areas.

One trend that has become apparent

within the last year is the shift towards implementing leet management software for compliance management process enhancement, opposed to the traditional motivation relating to reduced overheads and cost control. Obviously the latter remain essential in their own right, but with new legislation being introduced on a regular basis, relating to CO2 emissions, driver duty of care or vehicle roadworthiness – the legal and inancial implications of failing to comply, or indeed be able to effectively demonstrate said compliance, has prompted a surge in interest in leet management technology's role in supporting optimised compliance management processes and reduced risk.

What features are most popular with car fleets, light commercial vehicle fleets and truck fleets? How does this vary in different markets? How has this changed in recent years?

Features that have remained popular with car leet operators centre around the ability to reduce administration through both process automation and empowering drivers to take on more responsibility relating to their vehicle. From initial procurement using a vehicle order tool, where a driver can select the make, model and speci ication available to their level and then track the order status, to mileage and expense claims and taxation management.

The software features that add the most value relate primarily to utilisation. Assigning a large van when a smaller, more fuelfriendly version is available is a quick way to create unnecessary expenditure so harnessing technology to prevent this occurrence is a popular choice for many van operators looking for a straight forward solution to a potentially very expensive problem. Equally for light commercial vehicle leets, contract mileage reporting enables informed decisions to be made relating to vehicle allocation. The ability to automatically identify vehicles with high mileage and prevent further excessive usage in order to spread the total mileage more evenly across the leet is also a favoured leet management software tool.

The ability to conduct live inspections is a real selling point for truck leets. Utilising PDAs removes the need for duplicate data entry and provides leet managers with a real-time view of any vehicle's status. The vehicle inspection tool can also provide a uniformed way of completing vehicle

checks – ensuring all relevant and required data is captured.

Many NGO leets operating in remote and unstable locations in third world countries rely upon telematics integration to both promote safety and capture data that can then be automatically scrutinised by the leet management software system to identify trends and warn of potential hazards, such as routes with the largest number of accidents. North American and Australian truck leets also take advantage of telematics integration as part of duty of care and fuel reduction initiatives.

Although specific industry challenges may differ from country to country, the fleet management pains remain pretty consistent

How do you expect fleet management software to develop over the next few years?

Aside from the rise in demand for webbased applications and remote device access, accompanied by the development of technology to support electric vehicle leet uptake, the leet management software of the future will branch out into other operational areas of organisations to provide an enterprise-wide solution.

Where pan-European leets are concerned, this enterprise approach will provide global consistency with the ability for localised speci ications, such as automated management of country-speci ic compliance monitoring and reporting. In addition to this, the enterprise model of leet management software will provide a centralised portal for numerous departments of organisations to view, input and analyse relevant data; from procurement and total-life cycle costings, to bene it-in-kind taxation and personnel management. The leet management software of the future will further bridge the gap between transport departments and the rest of a business, creating a more joined-up approach and reducing duplication of record keeping, manual administration and risk.

management software over the last year.

The ability to continuously track and analyse a series of key performance indicators, quickly and without effort, is something the majority of prospects across the globe are beginning to demand as standard.

Taking this one step further, and in accordance with the enterprise model, automated management level reporting is certainly rising in popularity for larger corporate clients – predominantly US-based organisations – but can bene it businesses of all shapes, sizes and locations. Management reporting functionality does exactly what it says on the tin: provides inance directors, HR directors and other boardroom executives with automated emails at pre-set intervals detailing high level analysis of data relevant to a speci ic role.

Capable leet management software can be con igured to automatically analyse performance of any element of a leet – from CO2 and fuel consumption monitoring, to total life cycle costs, driver ines and workshop productivity. Utilising this functionality to enhance cross-departmental communication, whilst reducing the administration associated with manual report production and promoting leet optimisation through the technology's ability to lag exceptions is a huge driving force for US, UK and Australian clients tasked with demonstrating compliance and reducing costs.”

What factors are driving demand at the moment?

Without wanting to sound like a worn out record, the global economic slowdown is still providing a key driver for leet action, or indeed inaction. Faced with the prospect of reduced revenue, businesses have two choices when it comes to the leet department: to invest in implementing strategies to reduce long term running costs or freeze spending and slash budgets to achieve short term results – with potentially hazardous implications.

Cost remains king but several other factors have been encouraging uptake of leet

Which are the new developing markets for fleet software and what are they demanding?

The Middle East and Africa represent huge growth opportunities for leet management software uptake. In terms of demand, telematics integration remains high on the agenda for leets often operating in dangerous terrains. For organisations spread across multiple locations, traditionally reliant upon spreadsheets for process management, web-based technology presents real advantages in its ability to provide access to real-time data from anywhere with a web connection.

IFW October 2012

13

It will leave a las

Think Again.

New Generation Hyundai i30.

What makes a car a great car? Some would say design. Others would choose comfort, or features, and many believe it is all about technology. But if you are one of those who believe that quality is not all about one detail, but a combination of all of them, we think this is the car for you.

To find out more visit Hyundai.com/eu Fuel consumption in MPG (l/100 km) for New Generation i30 range: Urban 29.7-68.9 (9.5-4.1), Extra Urban 54.3-80.7 (5.2-3.5), Combined 41.5-76.3 (6.8-3.7), CO2 Emissions 159-97g/km.

ting impression.

fleet strategy

SMR budgets see dramatic shifts in Italy and Spain Rental rates remain stable while European SMR budgets vary across the continent, reports Experteye.

The servicing, maintenance and repair (SMR) costs incorporated into Italian contract hire rentals have shot up by +10% in the last year and +2.6% in the last quarter, with Spanish SMR budgets falling by -6.6% in the last quarter and -1.6% for the year.

The figures from the Experteye European Leasing index show a dramatic difference of opinion about SMR budgets, with views also differing across Europe regarding future used car values.

Since September 2011, France has expressed most con idence in the used car market with forecasted residuals rising by +3.3%, while at the other end of the scale Portugal expects a -4.8% decline. The picture is more settled for the recent quarter with French forecasted RV moving by +0.9%, and Italy showing least optimism at -2%.

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

Whilst the survey reveals some striking shifts in SMR and RV expectations, rental rates have remained relatively stable. In the last three months the largest increase has been in Spain, but only with a +1.1% rental rise; Italian rental costs moved down by -1.9% for the same period. For the year, Portuguese leet operators have seen a +3.4% rise, the largest across the nations surveyed, with French customers enjoying a -2.9% reduction.

last twelve months forecasted residual values have only moved by +0.3%, SMR budgets by +1.7% and rentals by -1.6%. Since June 2012, there remains little change. Forecasted residual values have fallen by -0.7%, SMR budgets have increased by +1.2% and rentals are up by +0.8%.

ITALY: Italy tops the table for increases in SMR budgets with a whopping +10% rise during the last twelve months and a +2.6% increase since June 2012; the biggest upward shift for both time periods in the Experteye survey. In the last quarter Italian con idence in the future used vehicle market has fallen by -2%, the largest drop of all nations surveyed. Over the course of the year Italian forecasted RVs have only moved by -0.7%, and rental rates have risen by +0.8% for the year and fallen by -1.9% during the quarter.

PORTUGAL: With Portuguese forecasted residual values falling by -4.8% since September 2011, and SMR budgets rising by +1.4%, it is perhaps unsurprising to see rental rates rise by +3.4%. The movement is less dramatic since June 2012, however, with RVs only changing by -0.5% and SMR budgets rising by +0.5% resulting in a +1% rental shift.

SPAIN: SMR budgets have fallen by -6.6% in the last three months, with Spain reporting the biggest quarterly reduction in the survey. The downward trend is also re lected across the past year with a -1.6% overall reduction, albeit less severe than the 3 month change. Forecasted residual values have moved upwards by +2.4% for the year and fallen by -1.7% for the quarter, and rental rates have seen very little change with a +1.1% quarterly rise and a -0.1% annual reduction.

UK: UK confidence in the future used vehicle market has dropped, with a -2% fall in forecasted residual values since September 2011, and a -1.3% reduction since June 2012. There has been an annual increase in SMR budgets of +3% (the second highest of all nations surveyed), however, this has settled to a small +0.3% rise for the quarter. Rentals rates have not moved at all since June 2012 (0%) and have only shifted by -0.6% for the year.

Market summaries – 3 and 12 months to August 2012

FRANCE: French confidence in the future used vehicle market is the highest of all nations surveyed, with a +3.3% improvement in forecasted residual values in the last twelve months and a +0.9% rise for the quarter. With SMR budgets moving marginally (+0.4% since June 2012, and +1.3% since September 2011), the upshot is that French fleet operators have seen their rentals come down with -2.9% reduction in the last year (the largest drop in the survey) and a -0.8% fall for the quarter.

GERMANY: The picture in Germany is relatively stable. Over the

CHANGES IN RV FORECASTS, SMR COST FORECASTS AND LEASE RENTALS Forecast Residual Values

Forecast Service, Maintenance and Repair Costs

Current Rental Rates

3-month change 12-month change 3-month change 12-month change 3-month change 12-month change France

+0.9%

+3.3%

+0.4%

+1.3%

-0.8%

Germany

-0.7%

+0.3%

+1.2%

+1.7%

+0.8%

-1.6%

Italy

-2.0%

-0.7%

+2.6%

+10.0%

-1.9%

+0.8%

Portugal

-0.5%

-4.8%

+0.5%

+1.4%

+1.0%

+3.4%

Spain

-1.7%

+2.4%

-6.6%

-1.6%

+1.1%

-0.1%

UK

-1.3%

-2.0%

+0.3%

+3.0%

+0.0%

-0.6%

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

• Twelve-month comparisons show change since September 2011.

• Three-month comparisons show change since June 2012.

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-2.9%

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

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

The new

Insignia BiTurbo

Tame your right foot.

The best car we’ve ever built.

Now with the powerful and frugal BiTurbo diesel engine.

400 Nm. 230 km/h. With 4.9 l consumption.

www.opel.com/insignia Official fuel consumption urban 8.6–6.1 l/100 km, extra-urban 5.4–4.2 l/100 km, combined 6.6–4.9 l/100 km; CO2 emissions combined 174–129 g/km (according to R (EC) No. 715/2007). Efficiency classes C–A

motor show interview

Paris in Autumn Steve Moody and Alex Grant pick out the stars at the 2012 Mondial de l’Automobile.

Volkswagen Golf Continuing a 36-year lifespan which has racked up 29 million sales worldwide, Paris marks the introduction of the seventh-generation Volkswagen Golf ahead of its October sales launch. Up to 100kg lighter than the outgoing car, the engine range at launch comprises two diesel engines starting at 99g/km, and two TSI petrol engines starting at 112g/km. Selectable driving modes and smartphone-like touchscreen infotainment are among a raft of features which will be itted across the range. AG

Citroen DS3 Cabrio Citroën is adding another string to the popular DS3’s bow, introducing a Cabrio version with a fabric sliding mechanism similar to the Fiat 500C. The roof is available in a choice of three colour schemes, which are matched to parts of the dashboard, and can be opened at speeds of up to 75mph. Most importantly, it also allows Citroën to compete for soft-top sales of the 500 and MINI. AG

Ford Fiesta Ford has given the Fiesta a major midlife refresh, with a bold new grille similar to next year’s all-new Mondeo, LED running lights, as well as voice-activated in-car connectivity system Ford SYNC, Active City Stop and the acclaimed 1.0-litre EcoBoost petrol engine, which is expected to deliver best-in-class fuel economy and CO2 emissions of 100g/km or less. Prices are expected to remain at current levels. SM

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Chevrolet Trax Sharing its platform with the Vauxhall Mokka, Trax introduces a small SUV model underneath the Captiva in the Chevrolet range. Powertrain options are similar to the Mokka’s, comprising of a 1.4-litre turbo petrol and 1.7-litre diesel with two or four wheel drive, and a 1.6-litre petrol with front wheel drive only. Trax also gets a new MyLink infotainment system with smartphone integration. AG

Toyota Auris Toyota’s range refresh continues with the Auris, which is on show at Paris with petrol, diesel and hybrid drivetrains.

Set to be built at the carmaker’s factory in Burnaston, it features a more aggressive front end, more tactile interior materials and is up to 40kg lighter than the model it replaces.

Hybrid versions will have a battery under the rear seat, like the Yaris, rectifying the loss of boot space in the outgoing car. AG

MINI Paceman The Countryman has broadened MINI’s horizons in leet, allowing it to compete for sales in the lucrative B-segment. Alongside the Cooper S Works version on show at Paris, MINI will reveal the Paceman threedoor version. Marked out by a loating, steeply-raked roof and more muscular rear shoulderline, its engines and ALL4 four-wheel drive are likely to be carried over from the Countryman. SM

Suzuki S-Cross Suzuki is renowned for building small cars and SUVs, and both are employed in the S-Cross, a C-segment crossover concept which is said to hint at a forthcoming production model. The carmaker had only released only a design sketch before the show, previewing sharper new styling and a Kizashi-like front end. Expect the production version to feature two and four wheel drive in line with key rivals such as the Ford Kuga and Volkswagen Tiguan. AG

Peugeot Urban Crossover Concept First shown at the Beijing Motor Show earlier this year, Peugeot’s B-segment concept gets its European debut at Paris and is likely to arrive in showrooms badged as the 2008. Slightly smaller than a 308, the concept features claw-like rear lights and trapezoidal grille from the 208 with an RCZ-style double-bubble roof, and could offer a competitive alternative to the Škoda Yeti and forthcoming Vauxhall Mokka if launched with Peugeot’s lowCO2 e-HDI powertrain. AG

Ford Mondeo Ford’s next generation Mondeo for Europe is on display at Paris and promises to be the largest-ever Ford vehicle to be itted with the award-winning 1.0-litre EcoBoost petrol engine. The engine is expected to deliver best-in-class fuel economy and CO2 emissions of less than 130g/km.

Built on Ford’s global CD-segment platform, new Mondeo will be available as a ive-door and wagon – uniquely developed for Europe – as well as a four-door that will also be offered as segment- irst petrol Hybrid Electric Vehicle (HEV).

Mondeo will also offer segment- irst SYNC with MyFord Touch, a voice-activated in-car connectivity system with the ability to act as a WiFi hotspot. SM

¡ IFW October 2012

19

EVERY FLEET NEEDS A FLAGSHIP.

BMW i

Sheer Driving Pleasure

At BMW i, we know the corporate world is all about efficiency, so we’ll keep it short and simple. Why should fleet managers consider the all-electric, emission-free BMW i3 with eDrive technology, available in 2013? First, it’s a perfect fit for innovation-minded companies. Second, it’s a strong sustainability statement. Third, with its connectivity, it makes a functional workplace when required.

Fourth, it can bring down the cost of ownership. And finally, as a genuine BMW, it’s going to put a smile on the face of your employees – every time out. More: bmw-i.com/i3 BMW i. BORN ELECTRIC.

bmw-i.com

motor show interview

¡

[ IN BRIEF ] AUDI is rumoured to be extending the new A3 range at Paris, unveiling the five-door Sportback and sporty S3 at the show. A convertible version of the 4.2-litre RS5 is also on display.

FIAT will complete the Panda range with a new 4x4 version, including an 85bhp TwinAir petrol engine for the first time and a more efficient 1.3-litre MultiJet diesel.

Opel Adam Hoping to muscle in on the fashionable A-sector, Opel’s ADAM will launch with a wide range of exterior and interior colour options, including two-tone paint, wheels of up to 18 inches and LED-emblazoned “starlight” headlining. The irst models will arrive in showrooms in early 2013, with a choice of colourful, luxurious or sporty trims, an internet-connected infotainment system and three four-cylinder engines. AG

Range Rover Range Rover has put a focus on shedding weight with its new full-size model, with a 39% lighter bodyshell saving up to 420kg in some models with bene its for handling and economy as a result. Instantly recognisable as a successor to the outgoing car, it features Evoque-esque styling and will launch with a choice of V6 and V8 diesels and supercharged petrol engines, and could also be the irst model with a hybrid drivetrain. SM

Jaguar F-Type Jaguar’s long-awaited sub-XF sports car is being unveiled in Paris ahead of its sales launch in mid 2013. The production version will be built at the carmaker’s UK Castle Bromwich plant, and is expected to look similar to the C-X16 concept shown at the Frankfurt Motor Show last September.

It launches as a convertible, powered by supercharged V6 and V8 petrol engines, but a hybrid version in line with the concept car has yet to be con irmed. AG

SEAT’s new Leon is the second Volkswagen Group car to receive the new MQB platform, after the Audi A3, and makes its public debut at the show. Multiple body styles will be offered for the first time, potentially including an ST estate and three-door SC. HONDA is using the Paris Motor Show to announce full details of the sub-95g/km Civic 1.6 diesel, likely to be a key part of its fleet growth plans, as well as the first public showing of the Europeanspec new CR-V. A sub-120g/km 1.6-litre diesel CR-V is expected to launch in 2013.

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internationalfleetworld.com

motor show interview

¡

Kia Carens Kia has inally updated the Carens midsize MPV, the last-but-one model not to receive the stylish lines of design chief Peter Schreyer. The new version takes the outgoing car’s practicality and packages it in a bodyshell which looks like a scaled-up cee’d, featuring a low roo line, larger wheels and longer wheelbase than its predecessor. Expect a full package of EcoDynamics fuel-saving measures too. AG

Mitsubishi Outlander Plug-in Hybrid Mitsubishi is claiming sub-50g/km CO2 emissions for its irst plug-in hybrid, with acceleration said to be similar to a V6 petrol engine.

The Outlander Plug-in Hybrid will be the irst production electric vehicle with permanent four-wheel drive, driven using a motor at each axle and with a small petrol engine working as a generator and providing extra power to the front wheels. AG

[ IN BRIEF ]

DACIA, fresh from the success of the Duster compact SUV, is showcasing the all-new Sandero supermini that is being unveiled at Paris. Released in the UK next January, it will be priced under £7,000 making it one of the cheapest cars on sale.

MERCEDES-BENZ will introduce a limited-edition electric version of the SLS coupe next year. The SLS AMG E-CELL features a batteryelectric drivetrain with 535bhp and 649lb.ft torque, yet produces no tailpipe emissions.

VOLVO will add an R-Design trim to the V40 hatch next year, featuring larger wheels, a sports bodykit and interior styling parts. For the first time, firmer suspension will be optional, allowing drivers to have sporty looks without affecting the ride quality.

Renault Clio Paris marks the world debut of the fourth-generation Clio, which sheds an average 100kg compared to its predecessor and features a lower, wider chassis setup for improved agility.

New Clio will only be offered with ive doors, but comes with a range of personalisation options, the tablet-style R-Link infotainment system similar to the ZOE and new engines including the 99g/km three-cylinder TCe 90 petrol and 83g/km dCi 90 diesel. SM 24

internationalfleetworld.com

motor show MIMS

Big country, small show The Moscow motor show saw the debut of some surprising new models, as Headlineauto reports.

BENTLEY CONTINENTAL GT SPEED The Russian market is a relatively small one for Bentley alongside America, China and the UK. But it could soon become the largest in Europe for luxury cars, and gives Bentley huge potential, says Kevin Rose, the board member for sales, marketing and aftersales.

The company expects to claim 25% of Russian luxury car sales, expected to total 1,000 sales this year, but is already looking further ahead.

“We are 43% up in Russia this year,” says Rose, “Generally, the luxury car market is static or falling everywhere, Russia is one of the few places where it is up.”

MAZDA6 i-ELOOP is among the features of the new Mazda6 unveiled at the Moscow Show. The system is a brake energy regeneration system, using a capacitor to store electrical energy from the moment that the driver lifts off the accelerator pedal. The stored power is used to power electrical components, thereby reducing electrical drain and fuel consumption.

Two petrol engines were on show in Moscow with the car, both using Mazda’s SKYACTIV technology. The 2.0-litre engine produces 150hp while the new 2.5-litre engine offer 192hp, delivering between 5.9l/100km and 6.4l/100km combined and CO2 emissions of between 139g/km and 151g/km in Russian speci ication.

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internationalfleetworld.com

It might seem a surprise that the company chose the Moscow show to unveil the fastest-ever road-going Bentley, the 330km/h Continental GT Speed.

But Rose says the Speed is, “a good car for Moscow”, and added that Bentley has, “plenty of product news to come.”

LAND ROVER FREELANDER Land Rover says the decision to facelift the Freelander just two years after subtle styling improvements accompanied the introduction of new diesel engines in 2010 is a measure to ‘keep the customers happy’ rather than a response to the overwhelming success of the Range Rover Evoque.

“We didn't feel there was any need to respond to the success of the Evoque. A lot of people who come into the showroom to look at the Evoque ind it has some limitations for their lifestyle and move into a Freelander”, said chief programme engineer, Dave Mitchell.

NISSAN ALMERA Nissan unveiled the new Almera at the Moscow Show, a car designed and built speci ically for the Russian market at the company’s Togliatti plant. The four-door ive-seat model features robust suspension, a 160mm ground clearance and 2mm thick steel plating to shield the underbody from the worst that Russian roads can offer. The boot provides 500 litres of load space. Nissan promises “Dsegment space at a B-segment price.”

Power will come from Nissan’s 1.6-litre 102hp petrol engine with either 5-speed manual or 4-speed automatic gearbox.

JAGUAR XF AND XJ 4X4 The four-wheel-drive Jaguar XF and XJ unveiled at the Moscow show are not the company’s first foray into allwheel drive – remember the ill-fated X-type of 1999 to 2007.

But whereas that car was created out of expediency under Ford ownership – to disguise that the X-type was a re-engineered Mondeo – the XF and XJ have been developed for solid marketing reasons.

Making all this happen in two cars that were never designed to accommodate all-wheel drive was not easy. The four-wheel drive system diverts all torque to the rear when the car is being driven normally on dry roads, but can send as much as 98% to the front in extreme slippery conditions.

industry analysis

Moving markets Residual values are under pressure across Europe.

Maarten Baljet of BF Forecasts looks at possible reasons why.

The word ‘residual value’ is not very often mentioned in a positive context.

The buyer of a new car is losing money because although he may appreciate his vehicle more and more while driving it, it is depreciating. These days however, the residual values are under pressure throughout continental Europe and things seem to be getting worse. It is difficult to identify any single cause for this phenomenon, and the same applies to just railing against the high rebates one more time.

Nevertheless, a main driver for decreasing residual values is the shrinking demand, especially for new cars in the different European countries. Whilst the German market is still more or less stable, the French are suffering from economic difficulties. Similar problems, keep the consumers in Italy away from their dealerships, with high fuel prices increasing the pressure. In Spain, the new car market is still down and more and more older used cars are being traded, instead of younger or new ones.

Even in Poland, the successful trend that we have seen in new car sales is affected by the high number of used cars, mainly coming from Germany.

As a result, the car manufacturers are facing a difficult situation. Their production capacities cannot be reduced from one day to the next. Far from it! The car makers are interested in running their factories at full capacity. The alternative would be to work short time or make a significant number of employees redundant. Therefore, many manufacturers favour selling their cars at discounted prices over financing expensive redundancy programmes, which can lead to labour conflicts and eventually negative media coverage for many months.

As I pointed out earlier, the overcapacity is certainly not the only factor causing the current negative residual value trend. There are more developments putting pressure on both current and future used car values. Let us have a closer look at one of them: the continuing popularity of the diesel engine!

For the buyer of a new car who is strongly focussed on the Total Cost of Ownership and with regard to high mileages, the diesel engine is the favourable choice. The used car buyer, however, prefers a petrol engine – the taxes are often lower, the insurance

costs less, diesel and petrol prices are equalizing, and not forgetting the regulations on pollutants that are to be introduced.

Only by using expensive additive technologies could used diesel cars be modified to lower the emission of such pollutants and meet future standards.

With a B2B-share between 50 and 60%, the new car buyers simply have different needs from those buying used vehicles (around 5% B2B), especially in one, two or three years time from now. As yet, the French used car buyer is still focussed on low consumption.

Here we indeed recognise a sustained demand for used cars with a diesel engine, but this is an exception to the rule. As a European trend, used car buyers are turning their backs on the diesel, whereas new car buyers are having a hard time turning away from ‘the oil burners’. The TCO-calculation will get mixed up if the depreciation turns out to be higher than foreseen. However, the forecasted depreciation clearly forms the biggest bulk of costs related to running a car. And ultimately a residual forecast should always aim at the demand of the future used car buyer.

IFW October 2012

27

fleet focus FRANCE

Vive la France!

Conditions are tough in the French vehicle market, but what is the outlook like in the foreseeable future? John Kendall investigates.

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According to the European Automotive Manufacturers’ Association (ACEA), France is the second largest vehicle manufacturing nation in Western Europe, with 29 plants in the country. Most of these are operated either by PSA Peugeot Citroën or Renault, but others are represented too, including AB Volvo, Iveco, Daimler, Ford and the VW Group. But 29 is due to become 28 in the next few years as crisis-hit PSA Peugeot Citroën plans the closure of one plant. Statistics from the international organisation of vehicle manufacturers (OICA) show that France was the tenth largest vehicle manufacturer worldwide in 2011, producing 2,294,889 vehicles in total, consisting of 1,931,030 cars and 363,859 commercial vehicles. Overall production was 2.9% up on 2010.

France was in at the birth of the automobile and, arguably, produced the first combustion-engined vehicle – Joseph Cugnot’s steam wagon of 1769. In the internal combustion age, some credit Edouard Delamare-Deboutteville with building the first petrol powered car, although it seems that these were experimental vehicles that did not reach any kind of series production.

France was the tenth largest vehicle manufacturer worldwide last year, producing over 2.29m vehicles

Just the same, some of the great names in automotive history are French; Panhard, Levassor, Albert de Dion, Emile Delahaye, Léon Bollée, Louis Delage, Ettore Bugatti, Gabriel Voisin, Amilcar, Salmson, Talbot Lago, not forgetting Armand Peugeot, André Citroën, or Louis Renault. Add the coachbuilders too – Carosserie Pourtout, Heuliez and Henri Chapron, to name but three. The French contribution to the motor industry has been formidable.

But there is little time for sentiment in the modern automotive world. France has been badly hit by the European financial crisis and that has spread to the motor industry.

With manufacturers facing high costs to satisfy international regulations, the key to success lies with maintaining a global presence and/or active joint ventures to reduce the cost of developing new products.

Renault and Peugeot have to a degree followed similar paths, in that they both acquired near bankrupt rivals. For Peugeot this was Citroën in 1976 and for Renault, it was Japanese rival Nissan in 1999.

PSA Peugeot Citroën embarked on a successful strategy of platform sharing to

develop both Peugeot and Citroën models, after difficult times in the mid-1980s. The company has formed successful alliances with Fiat for light CVs, Ford for diesel engine development and production, BMW for petrol engines and Toyota for the small car Citroën C1, Peugeot 107 and Toyota Aygo. This was capped by a wide-ranging alliance with GM in February 2012, announced just ahead of the Geneva Motor Show. Platform sharing, purchasing and other economies such as vehicle transport should lead to large cost savings for both PSA and GM. The group’s weakness has been that sales were strongest in its home market and southern Europe but the company lacked a presence in key markets such as North America, despite activities in Iran, South America, China and India. It remains to be seen how effectively the GM alliance can turn round the fortunes of two ailing companies – PSA Peugeot Citroën and GM Europe.

Renault also faces problems in the economic crisis, not least for its bold adoption of electric vehicles ahead of rising consumer demand. The company has

established a joint venture with GM for the production of light CVs, but it was the alliance with Nissan that has done much for the company. Nissan has been successfully revived and its strong presence in North America has helped to offset Renault’s lack of presence in this important market.

Renault’s eastern European presence is assured by its ownership of Dacia of Romania and 25% stake in Avtovaz of Russia.

More recently Renault-Nissan has formed an alliance with Daimler, which will result in joint engine and other developments.

The current state of the French vehicle market is a problem for both major French concerns. Taking cars and light CVs for the January to August period, vehicle sales in France are down 12.4% compared with the same period in 2011 to 1,551,273 according to data from the French manufacturers’ Association, the CCFA. As the leading brands, it is the French manufacturers that are suffering the most. For the January to August period, compared with 2011, Peugeot registrations are down 18.9% to 253,749, Citroën is down 17.6% to 226,969 and Renault is down 16.7% to 320,826.

IFW October 2012

29

¡

fleet focus FRANCE

Vive la France! ¡ LMC Automotive offers this analysis:

“The latest data for August for the French car market once again shows the selling rate below 2.0m units/year. Year-to-date the market is down 13.4% – part of the reason for this result is that it includes a comparison to a heavily inflated market in early 2011 relating to the spill over of the 2010 scrappage scheme. However, while the latter half of last year saw the selling rate average over 2.1m units/year post-scrappage scheme, the selling rate in 2012 has so far only managed to climb above 2.0m units/year for one month, this fact highlights that ongoing economic weakness is negatively impacting consumers’ car buying decisions.

“As elsewhere, the French car market underwent a major distortion during the economic crisis and subsequent recession.

If one was to look at the car sales performance alone, the very strong market of 2009 (close to an all-time record at 2.25m units) offers a completely different picture of events than any economic commentary, or data, would provide.

“The distortion was, of course, caused by the liberal employment of government scrappage incentives coupled with generous OEM pricing discounts which gave rise to once-ina-lifetime bargains, especially on smaller cars.

That period has now come to an end – the scrapping scheme finished in December 2010 though the impact was still being felt in registrations in the opening months of 2011. It must be noted though that the French scheme was unlike any other in Europe in that the scheme was phased out via stepwise reductions in the incentive amount over 2010.

For information, total car market numbers and manufacturer car market shares are as follows:

Year

Sales Volume

2008

2,050,283

2009

2,302,390

2010

2,250,643

2011

2,203,719

2012 Forecast

1,957,000

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OEMs

2011

PSA GROUP

31.4

RENAULT-NISSAN GROUP

28.0

VOLKSWAGEN GROUP

12.7

GENERAL MOTORS GROUP 5.3 2012 Forecast

5.2

As we have discussed on other pages, a report commissioned by the French Government published in September says that job cuts and restructuring at PSA Peugeot Citroën cannot be avoided to ensure the company’s survival. Overcapacity among European carmakers is one of the key reasons, reckons the report. The report was carried out by a senior civil servant in the French finance ministry, Emmanuel Sartorius. The report highlights strategic errors and the company has already said it will shed some 8,000 jobs in addition to the 3,500 announced last year, and close its Aulnay-sous-Bois plant near Paris by 2014.

So what of the business car sector? ALD leads the full service leasing and fleet management market in France. The company claims a market share of almost 21% and manages 296,000 cars. Apart

from its four-wheel business, ALD France launched into the full service leasing sector for motorcycles last year, as well as offering a car-sharing scheme, launched in 2010.

Not surprisingly, it is private customers who are likely to hold back on buying a new car. ALD France’s Laurent Corbellini (Marketing Director) and Guillaume Maureau (Deputy Chief Executive Officer – Sales & Marketing) identified the strength of the German premium brands and the rise of the Korean manufacturers as additional problems for PSA Peugeot Citroën beyond the financial crisis.

ALD data shows that in 2011, 51% of light vehicle registrations (approx

As part of its commitment to lowering fleet CO2, ALD France organises EV testdrives at clients' offices.

1,343,850 passenger cars and light CVs) were for private buyers, with 28% (approx 737,800) in the hands of corporate buyers and long-term rental business, with 9% (approx 237,150) accounted for by shortterm rental. ALD attributes some 426,793 registrations to long-term rental business, an increase of 9.3% on 2010. Laurent Corbellini told us that of the 28% of new registrations attributed to corporate buyers and long-term rental, around 58% or approximately 427,920 vehicles were being operated on full-service leases.

“That share is growing every year by 2 to 4%”, he commented. French manufacturers accounted for some 54% of that total.

FULL SERVICE LEASING TOP 10 FRANCE YTD 2012 1 > Renault Clio 2 > Citroën C3 3 > Peugeot 207 4 > Renault Megane 5 > Citroën C4 6 > Peugeot 308 7 > Renault Scenic 8 > Renault Twingo 9 > Volkswagen Golf 10 > Renault Kangoo Source: ALD Automotive

Country

Registration type

Usage

2011

Share

France

Business

demonstrator

245,949

11.20%

lease

151,460

6.90%

personal use

219,861

10.00%

rental

199,479

9.00%

unknown

51,400

2.30%

Business Total

868,149

39.40%

Private

1,297,659

58.90%

unknown

38,421

1.70%

2,204,229

100%

France Total Country

Registration type

Make

2011

Share

France

Business

RENAULT

190,524

21.90%

PEUGEOT

158,621

18.30%

CITROEN

125,375

14.40%

VOLKSWAGEN

66,134

7.60%

FORD

45,796

5.30%

Country

Registration type

Make

2011

Share

France

Business excluding demonstrator

RENAULT

145,741

23.40%

PEUGEOT

128,174

20.60%

CITROEN

93,250

15.00%

VOLKSWAGEN

51,104

8.20%

FORD

34,230

5.50%

Source: JATO Dynamics

Business Car Taxation France operates a Bonus-Malus tax scheme for business cars to encourage the take-up of environmentally friendly cars. This has been successful with around 2% of business cars being hybrid or electrically powered. There are a number of other taxes and incentives too. VAT can be reclaimed on light CV purchases, but not on cars. At the same time, businesses can reclaim the VAT on diesel fuel for business use, but not for petrol. “This is the reason why 98% of business cars are diesel”, says Laurent Corbellini, marketing director for ALD. The bonus-malus scheme works by giving vehicles a tax credit according to their rated CO2 emissions in four bands. So vehicles with between 0 and 50g/km are eligible for a €7,000 tax credit (up to 20% of the purchase price).

This reduces to €200 for cars with 91-105g/km CO2. Hybrid cars operate on a different scheme with cars with between 0 and 110g/km eligible for a €4,000 tax credit. Broadly the Malus scheme levies taxes on vehicles with 141g/km or more, with a maximum charge of €3,600 for vehicles with CO2 emissions of 231g/km or more. In addition there is an annual tax on cars, normally €160, but there is a sliding scale of exemption based on the year of first registration and CO2 emissions if given. Businesses must also pay an annual tax, which is also based on CO2 emissions with the charge rising according to the CO2 rating. The charge is levied per gramme of CO2 and encourages companies to operate cars with the lowest CO2 rating.

How can we expect the market to develop in the future? “I think that the market will get to around 2 million vehicles”, says Laurent Corbellini. “We expect that the company share will increase and the private share will decrease.

I think that in the company share, full service leasing will increase more and more.”

IFW October 2012

31

interview

BLUE SKY THINKING New cars, new technology and more profit – Mazda Motors Europe’s president, Jeff Guyton, tells Steve Moody how the brand is reinventing itself.

Mazda is at a watershed: its range is almost about to be replaced in its entirety over the next couple of years, by cars with significantly lower emissions, and hopefully, considerably more style.

European president and CEO Jeff Guyton is perfectly placed to see the change, and he reckons that for UK fleets, the firm will become a major force as a result.

“Our sales in the UK have been tremendously beaten down, especially where we’ve not done well in the fleet sector, although we have a stronger share in the private sector,” he admits.

“The strength of the Yen has made it difficult, especially with the discounts some other brands are giving, but the great thing about this new SKYACTIV Technology is that it is less costly to build, so we will see an improvement in our business model and the ability to trade as a result of much improved product. So although its sounds perverse to say, CX-5 for example is much more profitable, yet sells at a lower price point than CX-7 because of the cost of the technology to build, which is head and shoulders better.

“So that is rolling out across our range, and that’s a big piece of how we intend to make the business more profitable. The good thing that I see is that SKYACTIV Technology is underpinning all the successive models in the next few years, so you have this fundamental technology which is the

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next step in Mazda’s evolution, and so the proposition is going to be very strong.

“At this moment our product lineup is as old as it is ever going to be and I see very competitive cars coming, so even though the industry says it is going to be very challenging, I see growth.”

Guyton is confident the brand will see growth on the back of new product, starting with the CX-5 and then the new Mazda6.

“I think versus today’s Mazda6 we’ll see an uplift in sales, no question, and in a European context the current 6 has a 3% market share, but previously we have done, depending on the market, a 6-12% share with it and I don’t see any reason why this car shouldn’t do that again.”

In the UK, nearly 80% of sales for the Mazda6 are to fleet, but that equates to only a 5% market share, and Guyton believes this can be improved.

He says: “We have a strong CO2 story, will have good RVs, very affordable monthly rates and low BiK, so the recipe for this car is very similar to the successful recipe in the market today.

“We haven’t talked about pricing yet, but our ethos is not about big discounts. Buyers will recognise that we don’t typically do the huge discounting but the overall proposition will be strong.”

Low costs are a result of economy boosting SKYACTIV Technology, although Guyton would not be drawn on exactly which fleets

know what puredrive, ecomotion, or any such eco brand is. “They know it’s something, and they think its eco-based but they don’t know what it stands for. What I want them to think when they hear Mazda is that it stands for stylish, insight, great performance and fuel efficiency in a lovely package.

And if we get there through SKYACTIV then great, but I don’t need them to know what SKYACTIV actually is.

“Although it’s very difficult to convey this message, and we’re only at the start, the technical premise of the new 6 is that it’s fantastic to drive, with more power but at the same time best-in-class fuel economy, and with great safety.

“How do we uphold our Defy Convention mantra with this? Well, the way to go about it is that the Mazda6 has a relatively large displacement 2.2-litre diesel engine with a lot of torque – that’s against the current downsizing trend, and that’s not conventional. And so what we’re going to try and say is that you can have your cake and eat it and you don’t have to sacrifice one thing or the other for lower company car tax.”

Mazda has sold more than 120,000 6s in the UK since the car was launched in 2002, and Guyton says the new model offers a real opportunity to get the brand moving: “There are so many company car drivers who have had a Mazda6 in the past. Now is our opportunity to go and talk to them about the car, and get them into Mazda again.”

I think versus today’s Mazda6 we’ll see an uplift in sales, no question Jeff Guyton, President, Mazda Motors Europe

IFW October 2012

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fleet profile MERCEDES-BENZ

TOP SPOT

There has been no guarantee of success in the automotive industry in recent years – but German prestige brands have fared better than most. While the rise of BMW and Audi has continued throughout the recession, Mercedes-Benz has struggled to maintain its leadership position.

The ill-fated merger with Chrysler, which ended in 2007, saw Daimler take its eye off the ball with Mercedes – a situation that chairman Dieter Zetsche has worked hard to correct. Daimler is no longer the number one luxury car maker – it has been overtaken by BMW in recent years and was also overhauled by Audi in 2011. Even so, Mercedes sales have continued to grow, reaching a total of 1,279,100 in 2011.

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LONG-TERM STRATEGY Zetsche has outlined a long-term strategy designed to regain the luxury top spot by 2020, with sales of 2.7m cars – more than double 2011’s total. This ambitious target involves a major alliance with Renault-Nissan, further manufacturing capacity in North America and signi icant growth in emerging markets, especially China and India – which Mercedes believes will be the world’s number one and three markets by 2020.

Zetsche said the medium-term target for unit sales was more than 1.5m in 2014 and more than 1.6m in 2015. And that growth must be pro itable, he added. “We are approaching our targeted return on sales of 10%, which we want to achieve on a sustained basis as of 2013 – on the assumption that our business environment will remain stable,” said Zetsche.

According to a 2012 survey of analysts by Bloomberg News, Daimler’s 2011 operating margin was 8.3%, the highest since 2007, the year the DaimlerChrysler alliance broke up. But it still trails Audi and BMW, both of which posted operating margins of above 10% in 2011. Nevertheless, Zetsche’s 10% target is clearly in sight, and Daimler, like its German rivals, is in a much better position as regards margins compared to rivals such as Renault or PSA Peugeot Citroen, which struggle to get margins above 2%.

Zetsche told Daimler shareholders in Berlin earlier this year that the group was in good shape but was “not there yet”. Firstquarter Mercedes-Benz car sales rose 11.9% over the same period in 2011 to 313,902 units, thanks to strong sales of BClass, C-Class and S-Class, as well as SUV models, and March was the strongest sales month in company history at 131,334 units.

In the first quarter, Mercedes-Benz set a new sales record in the US, Canada, and Mexico – US sales alone rose 15.3% to 61,513 units. And emerging markets sales were strong too, with sales in China growing 19.5% to 51,328 in the first quarter, Q1 sales rising 32.7% in Russia, and 6.9% in India. In Japan, 56,552 units were sold in

the irst quarter, an increase of 14.6%.

And even though Western Europe Q1 sales were less impressive, Mercedes still posted a rise of 6.7% to 78,135 units compared to Q1, 2011.

Sales growth looks set to continue throughout 2012. Second-quarter sales were around 370,400, up 4% on 2011’s Q2, suggesting overall car sales could be close to 1.4m for the full year. Including truck sales and Smart car sales, irst-half Daimler group sales reached 1.72m units.

KEY ACCOUNT MANAGEMENT With Europe-wide and worldwide tender requests becoming increasingly widespread in the leet market, Mercedes-Benz increasingly has to offer international framework contracts with manufacturers and leasing companies. Many large leets want to streamline their base of car suppliers, and that means sourcing from only one or two premium manufacturers. A broader base of products has become essential to win these orders, but having a leet sales and management structure that can cope is just as vital.

Mercedes has more than 200 leet customers with an International Framework Agreement (IFA). Of these, 80 are based in Germany, 30 customers are in Great Britain and around 20 each are in France, Italy, Spain, Switzerland and Belgium.

IFA customers range from genuine multinationals operating in several continents, to regional players with operations in two or three countries. The IFA consolidates all the national agreements covering the customer’s vehicle orders, and guarantees the most favourable terms in every country where the customer company is represented, even national subsidiaries operating smaller leets.

IFA customers have a personal contact – an International Key Account Manager who plans, controls and monitors the implementation of your framework agreement in close collaboration with the relevant MercedesBenz national subsidiaries or distributors.

IFW October 2012

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¡

fleet profile MERCEDES-BENZ

¡ NEW HUNGARIAN PLANT Much of the Mercedes-Benz small car production will be concentrated at a new plant in Kecskemet, Hungary, which has opened this year, in addition to the existing, modern Rastatt plant in western Germany, which opened in 1992 and produces A-Class as well as B-Class. The German plant built 177,572 vehicles in 2011 and is close to capacity. A third shift will be added in the autumn to increase capacity in order to build a small SUV at Rastatt from 2013, Daimler has recently announced.

Daimler spent €800m building Kecskemet and a further €600m expanding Rastatt for the new compact models, and BClass production began at Rastatt in September 2011. Daimler said the Kecskemet plant was needed to meet “overwhelming demand” for the B-Class. Zetsche said: “With the production network of the Rastatt and Kecskemet plants, we now have the capacity to meet the demand from many new and existing customers in the segment.”

Kecskemet currently builds B-Class, and a ‘four-door coupe’ version (possibly called CLA, or BLS) of the new-generation compact range will also be built in Hungary, where the workforce will rise from around 2,500

Production lines running in Kecskemet, Hungary now, to more than 3,000 by the end of 2012.

The move into Hungary makes sense. The country is emerging as a low-Cost hub for automakers, with lower taxation, and labour costs that are almost a ifth of the German equivalent. The cost of manufacturing a Mercedes-Benz B-Class in Hungary is estimated to be $2,500 lower than in Germany.

Opening a new plant for the compact A and B-Class cars in Hungary and offering four instead of two models is the clear long term move to strengthen Daimler’s position in the relatively price-sensitive compact car segment. Mercedes’ share of A/B-Class sales has dropped from 20% in 2008 and 2009 to 18% in 2010 and 14% in 2011, as the ageing and rather quirky old models started to lose ground against newer rivals.

Such is demand for A-Class and B-Class that even the two plants cannot cope with demand at the moment. As a result, Finnish assembler Valmet Automotive has been awarded a contract to assemble 100,000 A-Class models between 2013 and 2016. The irm already supplies convertible roof systems to Daimler.

This arrangement is likely to end when Kecskemet completes a second phase of expansion. Hungarian media has recently reported that Daimler plans to double annual production at its new plant in Hungary to 300,000 vehicles by 2015. And while Daimler will not con irm this plan, the company says such expansion is possible.

All four new compact models (A-Class, BClass, B-Class coupe and small SUV) use the new front- and all-wheel drive MFA platform. Daimler says there will one more vehicle to come on this architecture, possibly a small conventional four-door sedan for China and the US. Extra lexibility comes from more ef icient logistics. Most Daimler plants are linked by rail, with regular trains used for components deliveries. Body parts, engines, transmissions and other components are delivered from the German locations to Kecskemet by rail. From 2013, most of the completed vehicles will also be transported by rail in the opposite direction. Overall, when completed, this will save up to 60,000 tons of CO2 per year.

FLEET-FRIENDLY SMALL CAR MODELS There is considerable potential to grow with leets – only around 15% of Mercedes-Benz’s global sales are accounted by leet car sales, so part of the growth plan involves making a much more leet-friendly model range.

This is most clearly demonstrated in the recent launch of new A-Class and B-Class models, which are much less quirky than the original cars, and are instead aimed at key leet competitors such as the Audi A3 and BMW 1 Series.

The A-Class and B-Class, together with planned future derivatives, share the same platform architecture, which provides production lexibility. All models can be produced on the same assembly line, in all variants of the product range and in any sequence. So if A-Class demand starts to outstrip B-Class, the volumes can be altered very quickly.

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LARGE CAR PRODUCTION CONCENTRATED IN GERMANY Most medium and large saloons are produced at two massive plants in Germany. The biggest Daimler plant is at Sindel ingen in Germany. In 2011, this plant produced 484,014 cars across several platforms. Models built there include MercedesBenz C-Class, E-Class, S-Class, CL-Class and CLSClass, as well as SLS AMG coupe and roadster and Maybach super-luxury limousines. Sindel ingen is also home to the Mercedes-Benz Technology Centre, which heads research & development for new Mercedes-Benz models.

The bulk of Mercedes-Benz C-Class production (sedan, estate and coupe) is concentrated at another large plant in Bremen, the one-time Borgward factory taken over in 1971. This plant built 313,026 cars in 2011, and as well as C-Class derivatives it also produced E-Class coupe and cabriolet, SLK and SL sports cars, and the new GLK compact SUV, which uses the C-Class platform.

With the launch of the next generation C-Class, the Bremen plant will become the centre of competence for this high-volume production series – which is likely to result in E-Class derivatives shifting to Sindelfingen and all C-Class build being concentrated in Bremen.

SUV PRODUCTION FROM THE US Mercedes-Benz opened a plant in Tuscaloosa, Alabama, in 1997, speci ically to build the new M-Class SUV. Tuscaloosa now serves as the worldwide source point for this vehicle and two other niche SUV ranges, the GL-Class, and R-Class. Total production in 2011 was 148,092 vehicles, and further expansion will see the next-generation C-Class being assembled at Tuscaloosa for the North American market. And in 2015, the plant will begin manufacturing a new, as yet unspeci ied ifth Mercedes-Benz model.

RENAULT-NISSAN PARTNERSHIP Daimler unveiled a strategic collaboration and the Renault-Nissan Alliance in April 2010, including an equity exchange that gives the Alliance a 3.1% stake in Daimler and Daimler a combined 3.1% interest in Renault and Nissan. This wide-ranging alliance covers several joint projects, including: Joint architecture for Smart and Renault Twingo: From the irst quarter of 2014, the Twingo will use the same platform as the next-generation Smart. The next-generation two-seater Smart will be produced at Daimler’s plant in Hambach, while a four-seater Smart will be produced at Renault’s plant in Novo Mesto, Slovenia, alongside the Twingo.

The rear-engined layout is likely to be retained for the Smart – suggesting the Renault will switch to rear-drive.

New Mercedes-Benz Citan van: Mercedes now has an LCV below the Vito, thanks to this reworked version of the Renault Kangoo van, built at Renault’s van plant in Maubeuge, France.

Powertrain cross-supply: Renault-Nissan will supply Daimler with compact threecylinder petrol engines to be used in Smart and Twingo vehicles and four-cylinder diesel engines to be used in both the Citan and in Mercedes-Benz’s next generation of compact cars. In return, Daimler will supply Nissan and In initi with four- and six-cylinder gasoline and diesel engines as well as with automatic transmissions. Some of these engines will be made at Nissan’s engine plant in Decherd, Tennessee. The plant will supply these for itment to US-buit In initi models as well as to Mercedes’ plant in Alabama, which will assemble C-Class from 2014.

Platform sharing: In initi plans to base a premium compact vehicle on the Mercedes A/B-Class compact-car architecture, starting in 2014.

New A-Class is much less quirky than before, aimed at key fleet competitors such as the Audi A3 and BMW 1 Series.

Electric vehicles: Daimler will provide batteries from its production facility in Kamenz, Germany, and Renault-Nissan will provide electric motors for use in electric vehicles (Smart and Twingo Z.E.) from 2014.

IFW October 2012

37

¡

fleet profile MERCEDES-BENZ

¡ LIGHT COMMERCIAL VEHICLES Mercedes-Benz has arguably the broadest single-manufacturer vehicle range, running from the two-seater Smart car, via a full car range from hatchbacks to luxury limousines, MPVs and SUVs, as well as a full commercial vehicle range of vans, buses and heavy trucks.

This does present opportunities for leet sales that its main rivals cannot match – for example providing a leet of vans as well as cars via the same international leet structure.

Daimler’s biggest van production plant is in Düsseldorf-Derendorf, which produces the Sprinter large van range at a rate of more than 600 Sprinters per day (in excess of 150,000 units per year) including the similar Volkswagen Crafter, produced for VW as part of an alliance between the two companies on large vans.

The smaller Vito van, as well as its passenger-carrying derivative, the Viano, is built at the Vitoria plant in north-west Spain’s Basque region. This plant received a major inancial boost in 2003, when the introduction of the second-generation Vito/Viano resulted in a doubling of the plant’s size and an increase in capacity to 100,000 vehicles a year, a level it has maintained despite the recession. The battery-electric Vito E-CELL model is also produced in Vitoria.

Mercedes-Benz claims market leadership for large and mid-sized vans in western Europe. The brand increased its market share to 18% in 2011, and division head, Volker Mornhinweg, said 2011 was the most successful year in the irm’s history: “We sold over 264,000 vehicles last year, or 18% more than in 2010. We even boosted pro its by 85%, achieving a new record of €835m.”

By the end of 2012, Mercedes will enter the European compact van segment for the irst time with the Citan, a restyled version of the Renault Kangoo, and the irst product of the ‘Alliance alliance’. The compact van sector totals around 700,000 units a year in Europe, and Mornhinweg expects Mercedes-Benz’s market share to reach between 4% and 5% – around 35,000 sales.

FILLING THE NICHES Mercedes is continuing to broaden its car range. Like BMW and Audi, new models are being launched into new niches, such as the CLS Shooting Brake ‘sports estate’ model (pictured left), and the forthcoming ‘CLA/BLS’ compact sports sedan. Mercedes believes this will widen the customer base and give greater appeal to younger customers.

Mercedes says it is planning to launch 10 more new derivatives, for which no predecessor models exist, by the year 2015. For example, the luxury segment will be enlarged by expanding the S-Class range from three to six models, including an extra-long wheelbase Pullman version, effectively a replacement for the discontinued Maybach super-luxury brand.

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SMART The Smart fortwo city car has been built in Hambach, France, since the brand was launched after a lengthy gestation in 1998. Attempts to broaden the range with an outsourced larger model (from Mitsubishi in the Netherlands) came to a premature end, but Daimler has persevered with the twoseater model, now into its second generation, and with electric derivatives forming part of the range.

The Hambach plant is very lean and innovative in terms of layout, with a cross-shaped production line tailored to the needs of ef icient logistics and assembly. Production was 103,635 units in 2011. Future growth and next-generation models – including another attempt at a ‘forfour’ model – are tied in to the partnership with the Renault-Nissan Alliance.

EXPANSION OUTSIDE EUROPE Daimler has announced investments of more than USD5 billion in production facilities for the Mercedes-Benz car division outside Europe – mainly the US and China. $2.6bn is earmarked for China and another $2.4bn will be spent in its North American business.

Much of this involves new capacity, as well retooling existing factories in these markets so all plants can make vehicles from common platforms.

Russia, India and possibly Brazil could gain too. Mercedes plans to build vans in Russia, while a return to Brazil, where a previous manufacturing plant was closed in 2005, is believed to be under consideration.

In China Daimler is extending its Beijing Benz Automotive (BBAC) joint venture with Chinese partner Beijing Automotive Group (BAIC). In June 2011 both partners agreed to invest €2bn in the joint venture, which currently produces Mercedes-Benz C-Class and E-Class sedans and the GLK compact SUV. The plant will now also produce three versions of the new Mercedes compact cars.

From 2013, a new engine plant will produce four-cylinder petrol engines which will be used in locally produced Mercedes passenger cars and vans. A new R&D centre at BBAC will be established to focus on vehicle testing and helping local suppliers.

Daimler’s Russian van project is in partnership with GAZ Group, in Nizhny Novgorod, Russia. The companies plan to build the Mercedes-Benz Sprinter, as well as engines and other components. Daimler will invest more than €100m in the product, production processes and sales network. GAZ Group is investing €90m in the project.

GREEN INITIATIVES Reducing CO2 emissions has become a priority at MercedesBenz. Indeed, the average CO2 emissions of the Mercedes-Benz car leet has been reduced within two vehicle generations by 35% to an average of 150g/km, and a leet average target of 125g/km has been set for 2016. BlueEFFICIENCY-branded clean versions are available across the range. “We are convinced that ‘cool’ and ‘green’ can peacefully co-exist in our garages,” said Zetsche.

The reductions are being achieved through several initiatives. Mercedes has developed cleaner powertrains for its latest small cars - the new A-Class range, for example, starts with emissions of 98g/km. Meanwhile larger cars are going through a process of engine downsizing, most notably the launch in 2011 of a four-Cylinder diesel-powered S-Class, the S250.

Electric and hybrid cars have also been launched, including the E-CELL battery-electric versions of both B-Class and Vito van.

Meanwhile, a diesel hybrid version of the E-Class has now been added to the range, the E300 BlueTEC HYBRID, with a compact lithium-ion battery pack itted under the bonnet. This car is available as saloon or estate, and is the most ef icient E-Class yet, with claimed consumption of 4.2 litres/100km (67.2mpg) and CO2 emissions of 109g/km.

IFW October 2012

39

operator profile Invensys

The right tool for the job Truly global fleet deals are few and far between, but the agreement between Invensys and General Motors – forged in 2000 and still going strong – is an example of how some of the best fleet management principles can be applied around the world.

Ross Durkin reports.

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I

nvensys is a global technology group supplying solutions, software, services and equipment to monitor, control and automate processes in a wide range of environments and across almost every sector. The company, headquartered in London, has three divisions; Invensys Operations Management, Invensys Controls and Invensys Rail, each with locations throughout the world.

The Global Fleet Department is based in Foxboro, Massachusetts and manages the organisation’s 1,750 vehicles in total, with its key markets in terms of leet size being North America (450), UK (450), Italy (140), France (120) and Germany (115). The acquisition policy in North America is open end lease and, in the rest of the world, primarily contract hire (full service lease).

Overall responsibility for leet falls to Greg Asadoorian, Director – Global Fleet (left), based in the company’s Foxboro location. He has over 30 years’ leet experience, is a member of the National Association of Fleet Administrators (NAFA) Corporate Advisory Board, past Chairman of the New England Chapter of NAFA, prior member of GM’s Global Advisory Board and current member of PHH’s Global Advisory Council. He is supported in his role by UKbased Brian Staples, who is responsible for the operation of Invensys’ European leet and also provides assistance for other regions such as South America, and by Karen Doyon, who primarily provides support for North America.

The changes undertaken by Mr Asadoorian and his team in 2004 – and indeed the reasons for undertaking them in the irst place – will be familiar to many international leet managers, especially those with major operations in the USA. “Our chief goals were to reduce cost by leveraging volume, with less focus on the emotional issues surrounding company cars,” said Mr Asadoorian.

“We see company cars as a tool for employees to use in order to do their jobs.

We want them to have the right tool for that job. When we undertook our review in 2004 we had 22 motor manufacturers supplying cars to us, and this caused a number of problems, not least of all in the reallocation of cars when an employee left the business.

It’s far easier to reallocate a car to a new employee when you remove the bias of personal brand preferences.”

The decision that was made in 2004 was to reduce the number of vehicle suppliers from 22 to 2, with the main concentration of volume being through General Motors.

GM has sole supplier status in North and South America, and Australia and in the rest of the world unless local conditions require a vehicle that GM cannot supply. In Europe Vauxhall/Opel is the primary supplier with Renault as secondary.

PHH provides leet management services in North America, Lex Autolease and LeasePlan supply the UK and mainland Europe respectively, while LeasePlan and PHH supply other markets around the world.

Prior to 2004 Invensys had vehicle leases with nearly 20 vehicle lease providers.

Unsurprisingly, Mr Asadoorian faced some challenges when introducing the new fleet supply arrangement. “HR were probably the most difficult to win over. It was a question of getting a balanced perspective from the various heads of department. We tried a global approach in 1999/2000 which was not nearly as successful due in part to a lack of maturity in the fleet industry (OEMs and Vehicle lease providers) to organise and support global arrangements. In 2004 with lessons learned, suppliers better prepared to support global agreements and with the full support of our leadership team we got it right and in the end the transition was smooth and relatively seamless.

“From the leet policy perspective we have implemented speci ic operational leet policies in North America and the UK. Outside of these major markets we have standardised lease terms, implemented our OEM and leet management suppliers and provided continuous support to our businesses. We provide cars that are right and safe for the job in hand, but when it comes to employee recruitment and retention the car is just one factor. A consistent vehicle approach allows us to eliminate one-off exceptions as a means of compensation. “ Due to the size of the leets in North America and the UK the Global Fleet Department has a “hands on approach” along with the leet management companies. However, outside these regions, Mr Asadoorian’s

In North America and the UK we can get the consolidated cost data we need and can drill down in great detail to aid in our management decisions. policy is to direct the leet from a high level, while allowing most operational decisions to be made at a local level. Accurate management information is the key to this, though it has not all been straightforward as Mr Asadoorian explained: “In North America and the UK we can get the consolidated cost data we need and can drill down in great detail to aid in our management decisions. We can do the same in each of the individual countries where we operate, but it is labor intensive to consolidate and the fleet management suppliers are only just beginning to pull the data together across markets.”

“UK-based Brian Staples has responsibility for Europe; pulling together management information from the various countries in which Invensys operates, and for overseeing the service provided by leet management suppliers. Most importantly Brian is the ‘face’ of the Global Fleet Department in Europe. He frequently meets with our businesses located in each country throughout Europe, something which is vital to the success of the operation because in North America or the UK we are in constant contact with our businesses to manage, inform and re-enforce policy; Brian’s visits do that for us in mainland Europe. His visits help us develop strong business relationships that build understanding and support of our global mission.”

“Our relationship with the leasing companies and OEMs is also crucial. It’s far better to sort issues out with an existing supplier than to find a new one, and that goes for price as well as service. We constantly benchmark the prices we are getting to ensure that our suppliers are competitive.

“Overall we’re looking for a situation that’s win-win for everyone. We know each other very well and meet on a regular basis to review the performance of different suppliers. It’s worth the extra work if it means that you can fix problems as they arise,” said Mr Asadoorian.

On issues such as leet safety, Mr Asadoorian says that while the organisation has a wide range of existing measures in place to manage leet drivers, he would always consider measures that provide additional control: “Where the vehicles are concerned we always specify ESP and ABS, Bluetooth and as many airbags as are available on the models offered.

“For drivers our policy includes journey planning, a ban on hand-held mobile phones and taking rest periods when necessary. All new starters have their driving licence checked when they join the company and existing employees are licence checked on an annual basis. We now have effective systems in place in the UK and North America, and across virtually all of mainland Europe. Currently, we are in the process of producing our own global leet driver safety and awareness training video.”

On the environmental front, Mr Asadoorian says that leet emissions have fallen consistently over the last ive years, both as a result of company policy (diesel vehicles in Europe, introduction of four cylinder engines and E85 compatible in North America) and the improvements in vehicle emissions made by motor manufacturers like GM. “The trend among motor manufacturers to it diesel engines into higher level cars in Europe has certainly helped here,” he said.

“We specify GM’s EcoFlex models where they are available and we’ve looked at electric vehicles as well, but with the highway mileages we are doing they just aren’t practical at the moment. Range-extended cars like the Ampera might be the answer, but additional subsidies would make them far more attractive inancially.”

The global expansion of Invensys means that Mr Asadoorian and his team are increasingly developing leet policy for new markets, including Algeria, Nigeria and Kazakhstan. But however challenging they may be, he believes that the irst principle must still apply – start by inding the right vehicle for the job.

IFW October 2012

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launch report Audi A3 p44 Ford Focus BEV p45 Ford Transit Custom p46 Mercedes-Benz Citan p47 The silhouette is almost unchanged, gaining A6like lamp units front and rear to bring it up to date... p44

IFW October 2012

43

launch report

Audi A3 Third-generation A3 is more revolutionary than it looks, says Alex Grant.

SECTOR Lower medium PRICE €22,500 – €33,550 FUEL 3.8-6.6l/100km CO2 99-152g/km Audi may have a reputation for cutting-edge car styling, but it really wouldn’t have been too hard to predict how the latest A3 would look. It’s by no means an ugly or bland-looking car, but more of a subtle update to the familiar lower-medium model than a complete rethink on the original concept.

There’s no reason to change what’s become a winning formula. Audi was the first to launch a car into the premium C-segment back in 1996. It’s become a crowded and closely fought segment, with BMW and Lexus muscling in and now Mercedes-Benz and Volvo trying to steal a little of the limelight away from Audi’s LED-emblazoned hatch.

So, visually at least, Audi has played it safe. The silhouette is almost unchanged, gaining A6-like lamp units front and rear to bring it up to date, and the revolutionary technology is hidden underneath.

A3 is the first car to get the new Volkswagen Group MQB platform, the Modular Transverse Matrix. This allows complicated components to be standardised across the group’s brand portfolio and numerous model sizes. It not only cuts development costs, but also allows for hybrid and fully electric drivetrains to be fitted without major modifications.

MQB also means Audi can launch two very

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different A3s. The five-door Sportback will be longer than the three-door model, offering extra rear legroom for the cars most likely to have back seat passengers.

New A3 launched with a single engine, the ubiquitous 2.0-litre TDI with power increased to 150hp and, more importantly, CO2 emissions of 106g/km with fuel economy of 4.1l/100km. Petrol engines with 122 and 180bhp arrived in September, but weren’t available to test, while the 1.6 TDI and 1.4 TSI with cylinder shut-off will complete the range early in 2013. The small diesel still emits 99g/km, but can now do so even fitted with the large wheels of the range-topping S line.

Buyers will initially be offered three trim levels, topped by the S line in each market.

Each gets progressively larger wheels and firmer, lower suspension among its upgrades, but this time with the option to fit the softest setup in each version – a muted admission that the sportier A3s of old were as jarring on poor surfaces as owners alleged.

Standard suspension is more than adequate for even the most aggressive drivers, though. It’s a perfect balance of being able to ride impeccably over rutted roads, but without uncontrolled body roll when cornering. Sizing up to the larger wheels and

lower ride height doesn’t ruin the ride quality completely, but the slight loss of comfort doesn’t come with the handling benefits to make it worthwhile.

The 2.0 TDI is fantastic in either, though.

Smooth and refined enough to be mistaken for a petrol from inside the cabin, it’s flexible enough to be driven a gear higher than normal, barely labouring even when rumbling along at just over idle. Even when taking advantage of its ever-eager throttle response, it’s also effortlessly efficient.

Inside, the A3 retains the circular air vents of its predecessor, but introduces new technology such as the handwriting recognition function for entering addresses and contact details, as debuted on the A6, neatly incorporated into the MMI system’s navigation wheel.

Quality is, as expected, very high throughout.

There are no real shocks to be found here, instead the new model caters perfectly for existing owners looking to upgrade and holds its own in a keenly-fought segment.

verdict New A3 updates rather than reinvents, but new technology and the option of a comfortable, low-carbon sporty-looking trim will please user-choosers.

Ford Focus BEV IFW was one of the first to drive the Ford Focus BEV. Is it a game changer, asks John Kendall?

SECTOR Lower Medium PRICE TBA Is the novelty beginning to wear off ?

Is it only a matter of time before another new electric car generates fewer headlines, as models become more mainstream? Or has the novelty worn off already? GM has recently halted Ampera production of what is arguably one of the most acceptable hybrid electric cars. But in our tight economic climate, it’s plainly an expensive choice that few are prepared to make.

Maybe that is not the best news for Ford as it prepares to launch the Focus BEV (Battery Electric Vehicle) in Europe early next year, when production starts at Ford’s Saarlouis plant alongside the other Focus models. The car is already in production at Ford’s Wayne Assembly Plant in Michigan in the US, and the two plants will be the only ones worldwide to build the electric Focus.

As part of the One Ford strategy there is no saloon version of the car, so both North American and European Focus BEVs are based on the five-door hatchback. That doesn’t seem like much of a problem for the conventionally powered models, but the BEV’s 23kWh lithium-ion battery pack, sourced from LG Chem, is located under the boot floor, where the car’s fuel

tank is normally positioned and behind the seat too, taking up space in the boot and removing the flat loading floor with rear seats folded. It’s less than ideal, but perhaps the inevitable trade off from converting an existing hatchback model to electric drive.

Externally, our left-hand-drive, USsourced model comes with the US trapezoidal front grille. Since the recently revealed Fiesta facelift incorporates similar frontal treatment and the BEV production run is likely to be small, European customers can expect the US-style nose to be a feature of the Focus BEV. If the Focus facelift in a year or two adopts similar design, it could bring the same front end to the whole European Focus range.

Conscious of the range anxiety discussion, Ford has engineered the Focus BEV for 6.6kW charging, which offers the potential for re-charging in around 3.5 hours. This should be possible via most street and industrial charging points, while customers who have the right home charging installation should also be able to take advantage of the faster charging.

Like any other electric vehicle, the Focus BEV could not be much simpler to drive, without the need for a conventional

gearbox. The car is fitted with an automatic-style gear selector to select the drive mode, and then it’s a matter of pressing the accelerator pedal to move off and the brake to stop. Performance is brisk. The car pulls away smartly and we cruised on a section of dual carriageway at 110km/h very comfortably, although cruising at such speeds will shorten the range considerably.

Driving the car around Oxford in the UK, the car rode and handled with the poise we have come to expect from the Focus despite the poor quality road surfaces. The regenerative braking is not too pronounced, while careful planning ahead means that it is possible to avoid using the conventional brakes in Stop/Start traffic, where the car is at its best.

Ford has yet to publish a price for the car, but the Nissan LEAF’s price – around €38,600, without tax concessions, must offer a good guide.

verdict The 3.5 hour re-charging potential opens up the road for the Focus BEV, making longer distance electric driving much more of a reality for electric cars.

IFW October 2012

45

launch report

Ford Transit Custom Dan Gilkes gets behind the wheel of what could be one of the best selling vans in its class.

SECTOR Medium van PRICE from €21,900 approx FUEL 6.691lit/100km CO2 178g/km (average for range) Ford is launching its sixth generation Transit, the Transit Custom. This will be the first time that Ford has created two distinct models for the ‘1-tonne’ and ‘2-tonne’ van markets, with the Custom covering the lighter sector, against the likes of the Mercedes Vito and VW Transporter. A heavier Transit model, that was unveiled at the Hanover Show in September (see news on p.05), will take on the might of the Mercedes Sprinter, VW Crafter and Iveco Daily.

Although handling the 1-tonne market, the Transit Custom is still available as both a short wheelbase van, with a 6.0m3 load volume, and a long wheelbase model, carrying 6.8m3. A high roof version will also be available next year.

The Transit Custom drives through the front wheels only, whereas the larger model will have front and rear drive versions, along with a 4x4 option.

Power is delivered by Ford’s Euro5 compliant 2.2-litre Duratorq TDCi engine. The base model gets 100hp and 310Nm of torque, with the middle version packing 125hp and 350Nm. The top of the range vans, and next year’s SportVan, come with 155hp and 385Nm. All three engines drive through an easy to use six-speed manual gearbox and Ford is

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claiming an average 6% reduction in fuel use across the board, with average CO2 levels now set at 178g/km.

There are three trims at launch - Base, Trend and Limited - with a 100bhp ECOnetic model and the SportVan to follow next year.

All Customs come with an ECO switch, which controls both the Start/Stop function and a 70mph speed limiter. Fleet buyers can have a fixed limiter set by the dealer if preferred.

The vans all get a fixed full height steel bulkhead too, with a load-through flap to allow longer loads to extend beneath the passenger seat. An innovative integrated roof rack is available as an option, with the cross bars folding flat to the roof when not in use to cut fuel consumption.

Transit Custom will be available as a panel van, the increasingly popular doublecab-in-van, which retains enough payload and load area for customers to reclaim VAT if registered.

There is also a Kombi or the Transit Custom can be ordered as a full Tourneo people-carrier. The Tourneo has moved well beyond merely being a minibus version of the van. It is virtually a separate model now, much like Transporter and Caravelle for Volkswagen, offering a very comfortable people-carrying option.

All models come with ESP, ABS, Hill Start Assist and daytime running lights, while Bluetooth and USB connectivity will be standard from February.

Service intervals have been extended to 48,000km/2 years, while the warranty stays at 160,000km/three years. The perforation warranty has been extended to 12 years.

The new van’s structure is 30% more rigid, which contributes to the improved ride and handling. It does increase the basic weight of the van though, so Ford has lifted the gross weights to keep payloads comparable, so for instance the popular 280SWB becomes a 290SWB with a similar carrying capacity.

Despite that increase in weight Ford remains confident that customers will benefit from improved fuel consumption and reduced ownership costs, thanks to greater efficiency in the running gear. Certainly customers will have no concerns about the driving experience, as the Transit Custom leaps straight to the top of the class.

verdict Offering an impressive, well-rounded driving experience and the capacity to handle three Euro pallets, Ford is ticking a lot of boxes with the Transit Custom.

Mercedes-Benz Citan Is the new Mercedes-Benz Citan more than just a Renault Kangoo with a new nose? Dan Gilkes finds out.

SECTOR Light van PRICE TBA FUEL 4.2-5.4l/100km CO2 119-130g/km Mercedes-Benz seemingly has a car model for every niche sector in the market. With the launch of Citan, the same can now be said of it’s commercial vehicle business too.

A compact city van, available in three wheelbases – Compact, Long and Extra Long – the van offers load capacities of 2.4m3, 3.1m3 and 3.8m3. Payloads are 500kg for the Compact, 650kg for the Long and 800kg for the Extra Long, taking Citan up to the smaller end of the larger Vito range.

Despite the new nose of course, the Citan range is made by alliance partner Renault, alongside the similarly wide-ranging Kangoo line-up. However, Mercedes has made a good job of differentiating the appearance of the van, from the front at least.

There is a new look inside too, with a bluff dash replacing the more organic form of the French van. Anyone who has driven a Renault will recognise the dials in the dash and the rather odd handbrake though, that mimics the engine controls of an aeroplane, but completely blocks the 12V outlet beneath.

Mercedes will offer four engines, including three versions of the familiar 1.5-litre diesel with outputs of 75hp and 180Nm, 90hp and 200Nm and 110hp with 240Nm of torque. There is also a petrol option – a 1.2-litre motor with 114hp and

190Nm on tap. All offer two-year/25,000 mile service intervals.

The two lower-powered diesels drive through a five-speed manual gearbox, while the petrol and the higher-powered diesel have six gears. There are no plans for an automatic or an automated manual box.

A BlueEFFICIENCY package is standard on the petrol and optional on all diesel.

This incorporates ECO Start/Stop along with battery and alternator management and low rolling resistance tyres for models with up to 650kg payload.

Mercedes says it has tuned the suspension specifically for Citan models to provide sure-footed handling. Perhaps more importantly, ESP is standard on all models, which incorporates Vehicle Dynamic Control, EBR engine friction torque control and ASR acceleration skid control.

A driver’s airbag is standard on van models and a front passenger airbag comes as standard on the Crewbus model, a fiveseater based on the Long chassis. Thorax sidebags are also standard on the M1 Crewbus model and optional on all vans. Windowbags are available as an option for the Crewbus five-seater.

Customers can specify a full bulkhead or a folding safety grille, which works with a

fold-flat front passenger seat to extend the load area for longer loads. Based on the Extra Long van body, the Mixto is a fiveseater with a folding rear bench seat and twin, glazed sliding doors. An optional separator grille keeps loads in the rear.

On the road the Citan drives, unsurprisingly, much like the Kangoo, which is no bad thing. However, the Mercedes does seem to have a slightly taughter suspension set-up, and it proved very quiet and smooth at higher speeds. The steering is direct and accurate, allowing you to place the van with ease in busy urban environments. Appearance is of course subjective, but the bold three-pointed star on the grille will certainly appeal to some buyers and it fits in well with heavier Mercedes vans for those running a fleet.

And that for Mercedes is where it really matters. While the cache of M-B ownership will be attractive to owner drivers, for the first time Citan allows Mercedes dealers to offer a complete fleet solution.

verdict The Citan range fills an important gap in the Mercedes LCV range, in a sector of the market that, despite overall van market difficulty, continues to expand rapidly across Europe.

IFW October 2012

47

fleet in figures

US car market booms in August The US car market is booming at present, but elsewhere August has not been easy.

India has taken a dive and southern Europe struggles on, reports John Kendall.

Ford are doing well overall despite losing money in Europe.

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The prolonged contraction of the car market and, particularly, the weak performance in Europe is taking its toll on manufacturers. Ford for instance has seen its first half pre-tax profit of $469m (approx €363m) for Europe in 2011 turn into a $553m (€428m) pre-tax loss for H1 2012, on revenues down from $17.7bn (€13.7bn) to $14.3bn (€11.1bn). The situation is brighter in Asia-Pacific and Africa where H1 pre-tax profit in 2011 of $34m (€26m) has turned into an H1 pretax loss of $161m (€125m) on revenues that have risen from $4.2bn (€3.3bn) in H1 2011 to $4.6bn (€3.6bn) in H1 2012.

It’s the strong market in North America that is keeping Ford in the black at present, with H1 profit up from $3,752m (€2,906m) in 2011 to $4,143m (€3,210m) in 2012, on H1 revenues that have risen from $19.5bn (€15.1bn) in 2011 to $19.7bn (€15.3bn) in 2012.

Chief executive and president, Alan Mulally, promises aggressive restructuring to operate profitably at the current demand, a changing model mix and to accelerate development of new products.

The first examples of the acceleration of new models came recently, ahead of the Hanover CV Show and Paris Show, as reported on the news pages (pages 04-07).

Ford’s position is a good indicator of how the motor industry is progressing around the world. Scotiabank’s Global Auto Report on the first half of 2012 points to a 6% increase in global car sales in H1. Scotiabank expects the trend to continue, pointing to record low short and long-term interest rates in most countries, an acceleration in the pace of automotive lending across the world and job creation in emerging markets. Employment in developing nations is growing at more than 4% year-on-year, with job growth rising at an average of 2.3% globally – said to be one of the fastest in the past decade. They are all prospective car buyers. Scotiabank believes that consumer confidence could improve in H2 2012 too.

JAPAN AND RUSSIA LEAD SALES GROWTH Expansion in automotive lending is at its greatest in Russia, which is growing at more than 40% year-on-year according to Scotiabank, with lending also on the increase in Brazil and India. The bank

points to car sales growth in all regions, except Europe. Japan and Russia are said to be leading the growth with car sales expanding at 52% and 29% year-on-year respectively. There are double-digit increases for North America with purchases at their highest since 2007.

JAPAN Scotiabank says sales of environmentally friendly vehicles have grown by 60% in Japan this year, due in part to Government incentives. Sales are expected to decline later in the year and the bank points to the number of potential car buyers in Japan declining by almost 1% per annum.

RUSSIA Russia is expected to exceed 2.9 million sales this year, the peak reached in 2008, and to overtake the sales level in Germany – forecast at 3.2 million this year – by the middle of the decade. Scotiabank says that the Russian government has set aside 3.3 trillion roubles for car loans this year, up from 2.8 trillion in 2011. This is set to rise to 5.4 trillion in 2013.

CHINA Government stimuli are said to be helping to fuel sales increases in China and Brazil.

In China, the Government has created a subsidy programme worth some €737bn for buying fuel-efficient cars with engines up to 1.6-litres. To quote from the Scotiabank report, “Since the introduction of the program in May, car sales have advanced 14% year-on-year, from only a 1% increase through April. In addition, while GDP growth moderated to 7.6% year-onyear in the second quarter from an average of 10% over the past decade, much of the slowdown reflects weaker exports and investment spending. In contrast, employment and urban income growth show no signs of abating.”

The Chinese vehicle market slowed to a growth rate of 2.5% last year, following 46% growth in 2009 and 32% in 2010, although growth is expected to pick up again to between 5% and 8% this year.

Higher growth is expected for the passenger vehicle market in 2012, at 11% to some 16.1 million units. Having overtaken the US vehicle market in 2009, forecasters from IHS Automotive, Macquairie Equities research and the Economist Intelligence Unit are suggesting that the Chinese mar-

ket will expand to 25.5m sales in 2015, bigger than the US, Japanese and German car markets combined.

INDIA Lending may be on the increase in India, but SIAM, the Indian Automotive Manufacturers’ Association, senses that the economic downturn has arrived for the Indian motor industry. Vehicle production for the April to August period is 4.2% up on the same period last year, but SIAM’s concern is that for August – production fell to 1,564,259, down 7% on August 2011. Passenger car sales grew by a modest 0.86% for the April to August period compared with 2011, but again SIAM is concerned that passenger car sales fell back by 18.5% in August 2012 compared with August 2011.

Total Indian vehicle exports for the April to August period were down 5.56% on 2011. Of these, passenger vehicle exports grew by 1.3%. Car exports took a big tumble in August, though, down almost 27% compared with August 2011.

NORTH AMERICA US car business sales have jumped 21% this year, says Scotiabank, helping to push overall car sales up by 13% this year. US retail sales are also up 12%, fuelled by the strongest employment growth since 2007, pent-up demand, car loan rates as low as 3% and more incentives from manufacturers. There is a similar picture in both Canada and Mexico.

WESTERN EUROPE By contrast, the Scotiabank forecast expects Western European car sales to slide for the fifth consecutive year to 12.2 million, the lowest level since 1996. The forecast shows the same patchy performance that IFW has seen using ACEA data, with southern European countries suffering the most and others enjoying growth.

FRANCE As we’ve indicated elsewhere, France and French manufacturers are continuing to feel the chill winds of recession, with August registrations down 11.4% to 96,115 compared with August 2011, according to the French Automobile Constructors Organisation (CCFA). Data shows that compared with 2011, the January to August registrations total in 2012 is down

IFW October 2012

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fleet in figures

Italian incentive scheme worth €50m encourages low-emission vehicles.

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13.4% to 1,294,021. French car makers are having a hard time of it in their own market, with Peugeot registrations down 20.5% to 211,157, Citroën down 18.6% to 184,833 and Renault down 21.1% to 237,950 for the January to August period.

GM and Ford are facing similar percentage falls, but on smaller volumes.

But it is the French manufacturers themselves who are making the headlines at the moment, particularly PSA Peugeot Citroën. A report commissioned by the French Government published in September says that job cuts and restructuring cannot be avoided to ensure the company’s survival. The company has already said it will shed some 8,000 jobs in addition to the 3,500 announced last year, and close its Aulnay plant near Paris by 2014.

GERMANY The market may be cooling in Germany, but the data for August makes far more comfortable reading than it does for France. Figures from the German manufacturers association (VDA) suggest that the market slowdown is gathering some momentum with August registrations

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down 5% to 226,600 compared with August 2011. The January to August figures show an overall decline of 1.0% to 2,108,900. Car production and exports are both holding up.

UK Despite the country’s continued economic weakness, the UK car market is holding up well. Total car registrations for August were up 0.1% to 59,433, compared with August 2011. August is traditionally a weak month for UK registrations as the twice-yearly registration plate changes take place in March and September, meaning that buyers usually hold back in August.

For the year to the end of August, sales were up 3.3% to 1,260,997, compared with the same period in 2011. A closer look at the figures published by the UK Society of Motor Manufacturers and Traders (SMMT) shows that growth has been entirely in private car registrations. For the January to August period compared with 2011, private registrations rose 10.6% to 567,772, while fleet registrations fell 0.7% to 641,608 and business car registrations

fell 15.4% to 51,617. SMMT market share data for the same period shows that private registrations took 45% of the market, fleet 50.9% and business 4.1%. The SMMT is forecasting a total UK car market of 1.97 million for 2012.

ITALY In July the Italian Government approved an incentive scheme for low-emission vehicles, specifically for the car fleet sector – part of a range of measures designed to stimulate the Italian economy. The scheme introduces a national infrastructure plan for electric vehicle charging, worth €50m between 2013 and 2015. In addition there will be a total of €140m between 2013 and 2015 to help with the purchase of low-emission vehicles in two bands, up to 95g/km and 96g/km to 120g/km. This funding will only be available for vehicles used in business.

Car registrations in Italy were down 19.7% for H1 2012 and 19.9% for the January to August period. In that period, Fiat Group registrations were down 20.1% to 363,594, with Fiat brand registrations down 21% to 363,594.

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