International Fleet World October 2014 by Fleet World Group

INTERNATIONAL

FLEETW RLD All that matters in the world of fleet October 2014

SE AT.COM/BUSINESS

THE SEAT LEON ST RECOMMENDED BY DRIVERS

WHAT OUR CUSTOMERS SAY… “SEAT LEON: OPTIMAL TCO CHOICE FOR MY SALES REPRESENTATIVES.” Ing. Giovanni Tortorici - Global Supply Chain/Purchasing Manager Barilla G. e R. Fratelli S.p.A. VISIT US NOW ON SEAT.COM AND DISCOVER MORE TESTIMONIALS OR SCAN THE QR CODE

SEAT FOR BUSINESS

TECHNOLOGY TO ENJOY

Average consumption: 3.3 - 5.9 l/100 km. Average CO2 mass emissions: 87 - 137 g/km.

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SIMPLY CLEVER

ŠKODA SUPERB COMBI

Combined fuel consumption and CO2 emissions for the Superb model: 4.2–9.3 l/100km, 109–217 g/km

Because a business is judged even before the doors open. Your fleet says a lot about you. And your success often depends on it. Now you have a unique opportunity to raise your fleet to the highest level. With the ŠKODA Superb you will have a fleet that conveys exclusivity with its fresh, dynamic design and timeless beauty. It also has the best space in its class, especially noticeable for passengers in the rear. Comfort is evident, however, wherever you sit. Reliability, high specification and low running costs through a cleaner engine also applies to our other models. Contact us and our fleet team will introduce you to ŠKODA’s extensive range of vehicles, and find the best solution for your business. skoda-auto.com/fleet

INTERNATIONAL

FLEETW RLD All that matters in the world of fleet

October 2014

contents

SE AT.COM/BUSINESS

THE SEAT LEON ST RECOMMENDED BY DRIVERS

SEAT FOR BUSINESS

TECHNOLOGY TO ENJOY

Average consumption: 3.3 - 5.9 l/100 km. Average CO2 mass emissions: 87 - 137 g/km.

internationalfleetworld.com

16 First look at Jaguar’s striking XE.

22 The latest fleet software advances.

Features Editor Katie Beck katie@fleetworldgroup.co.uk

40 Big plans for Infinti in Europe.

46 Behind the wheel of new Focus.

Sales Director Anne Dopson anne@fleetworldgroup.co.uk

04 Fleet Review Editor John Kendall explores the barriers to fuel cells.

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

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

06 Inside Knowledge Simon West-Oliver on the importance of analysing Big Data. 08 News The biggest stories from a month in the international fleet world. 16 Spotlight XE – Jaguar’s re-entry into the compact executive segment. 18 Spotlight X-PERIENCE – SEAT’s new flagship for the Leon range. 20 RVs How falling rates across Europe influence the leasing sector. 22 Management The latest advancements in fleet management software. 26 Strategy Introducing Formula E, the new global electric race series. 28 Management ETSC’s report on reducing occupational road risk. 31 Remarketing The changing face of Norway’s used vehicle market. 32 Interview How do you improve on an icon? We ask Ford’s Jordan Bennett. 34 Fleet Focus India’s potential to be the next big automotive market.

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

38 International Fleet Academy The benefits of using a DIM system. 40 Profile Infiniti’s new sense of identity and plans for Q30 in Europe. 44 Launch Report Golf Sportsvan / Jeep Renegade / Ford Focus / Infiniti Q50. 48 Global Fleet Forum A round-up of activity on the popular fleet forum. 50 Fleet in figures Breaking down the global vehicle sales by region.

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fleet review This month, editor John Kendall looks at the future for electric vehicles and how fuel cells fit into the equation.

Too much too soon?

Reuters reported the suggestion that Nissan is poised to cut EV battery production in the face of slow take-up for EVs across the world. If so, it could mean that battery plants in the US and UK might face closure – a decision is said to be due in October. Renault has already begun sourcing cheaper batteries from outside the RenaultNissan Alliance from South Korea’s LG Chem. Millions of Euros have been invested in plants in Japan, the UK and US, with assistance from the US and UK governments. These are tough decisions for Nissan, particularly given the large investment made in building credible EVs, but if car buyers have yet to be persuaded, it is difficult to justify the high levels of investment. Just as Nissan and Renault source components from other manufacturers, if LG Chem can supply batteries more cheaply, Nissan needs to factor that in. The future of EVs will be heavily influenced by further developments in battery technology and the timescale is still uncertain. Don’t give up on it yet though.

What future for fuel cells? In the same week, another EV technology came under scrutiny too. The Detroit News reported that VW’s boss in Japan has said that fuel cell powered vehicles are not likely to enjoy widespread take-up outside Japan.

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VW Japan boss Shigeru Shoji suggested that Government subsidies of as much as €21,700 per vehicle offered in Japan will probably be more than other countries are prepared to match. He also suggested that even in Japan refuelling would be a challenge because handling combustible hydrogen is tricky and building a refuelling infrastructure would not be easy. Shoji’s comments show the difficulty of producing and supplying alternatives to conventional liquid fuels and will be a further blow to the EV sector where hydrogen fuel cell technology has been seen as a means of overcoming the range limitations of batteries. But if battery technology advances to the extent that range issues can be overcome, it is hard to see what future fuel cells would have in the short term for powering passenger cars. Short-term rental is expected to grow in China at an average of 27% per year between 2013 and 2018, according to estimates from industry consultancy Roland Berger, says Reuters. It was probably that forecast that saw shares in China’s largest car rental company CAR rise by as much as 28% when the company’s shares began trading on the Hong Kong Exchange in September. The market value for car rental in China is forecast to double by 2018, taking 2013 values as the start point. None of this can be much of a surprise in a country where car ownership is currently low compared with North America or Europe and it is difficult to satisfy the high demand. Renting offers drivers a means of driving new cars without the trouble of owning one. Add in the restrictions on car ownership being introduced to limit air pollution in some of China’s cities and it is hardly surprising that rental is being eagerly taken up.

visit internationalfleetworld.com

New Vivaro

TOP PERFORMANCE. LOW BUDGET. With best-in-class Total Cost of Ownership. Designed to get work done. opel.com Fuel consumption combined 6,5–5,9 l/100 km; CO2 emissions combined 170–155 g/km (according to R (EC) No. 715/2007).

inside knowledge

Big Data, big fleet challenge What’s getting in the way of the fleet efficiencies that data could bring? Simon West-Oliver, sales and marketing director of Drive Software Solutions, points the finger…

here is a lot of talk about ‘Big Data’ in business at priorities and needs. The leasing companies know that the moment, it’s a buzz word concerned with if they can make sense of the information in their the explosion in information technology, Web, systems, they’ll be able to create the raft of new mobilmobile and cloud computing that sees almost every ity services that businesses running vehicles will pay aspect of our lives recorded as a digital data trail. Busia premium for. nesses, especially automotive businesses, know that The real problem that most of the leasing and fleet if they can make sense of all this data, they have a management companies have when it comes to leverchance to sell us more of what we want, when and aging Big Data, the dirty little secret that they don’t want where we want it. their fleet customers to know about, is their IT systems According to IBM, every day, we create 2.5 quintilcould have come off Noah’s Ark. lion bytes of data, meaning that 90% of the data in Most of the big players in the space have grown by the world today has been created in the last two acquisition over the past 15 years. You try running a years. Think about it: in your fleet, just exactly how business while merging a few small independents, many pieces of information are being created by and maybe a non-core bank-owned operation and a dealer on behalf of your vehicles and drivers every minute group leasing company or three when none of the origof every day? You may have delivery drivers or engiinal owners ever had an IT strategy for their leasing and neers needlessly doubling up on trips, but unless fleet management operation. you can see their vehicle details, schedules, routes In truth, if you could scratch behind the smoked glass and job lists in one place, you’ll facade of 95% of leasing suppliers never know. The data a fleet you would almost certainly find “The trouble is, there is too manager needs to cut the fleet’s legacy systems built out of 30 or much data, it’s in separate wasted mileage is right there. more different pieces of outplaces, in different formats and The trouble is, there is too much dated overlapping software, with of it, it’s in separate places, in the whole thing sitting on multiyour fleet manager has no way different formats and your fleet ple platforms being held together of bringing it all together.” manager has no way of bringing by a team of IT contractors whose it all together. job is simply to keep the lights on. The recent BVRLA Fleet Technology Congress in The good news for fleet operators is that things are the UK highlighted that for the big fleet suppliers like set to change and one or two of the big players are the leasing and fleet management companies, an abilalready in a position to take advantage of the opportuity to mine the Big Data being generated by their nities presented by Big Data and the rapidly appearing customer’s fleets could literally transform the value of IOT (Internet of Things). Driven by forward thinking the customer relationship, particularly in relation to top management teams who have taken a long-term growing demand for mobility solutions, the business view, they have replaced legacy systems with robust of getting people from A to B, via C and back to A again. databases sitting on single platforms, with normalised, The challenge for the big fleet management and properly coded data. As KPMG put it very succinctly in leasing suppliers is just the same as it is for the corpotheir Future State 2030 report: “Use big data to extract rate fleet manager, compounded by having thouvalue out of existing data assets, to better inform and sands of different customers all with different target decision-making.”

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manufacturer news

Jaguar XE saloon unveiled in London aguar has unveiled its XE compact executive saloon at a major multi-million pound ceremony in London. JVisually similar to the larger XF, but with cues

such as the functional wing air vents and rear light signature borrowed from the F-Type, the XE features the segment’s first aluminium monocoque chassis under coupe-like silhouette, and interior space is said to benchmark other compact executive cars. The platform has also made this the lightest, stiffest Jaguar ever made, and the most aerodynamic

Opel to debut newgeneration large diesel

his month’s Paris Motor Show will see Opel debut its new-generation Euro 6compliant 170hp 2.0 CDTI, which forms part of its new powertrain portfolio. Offering 170hp and 400Nm, it will replace the current 163hp 2.0 CDTI engine at the top of Opel’s diesel range, offering 5% more power and 14% more torque while reducing fuel consumption and CO2 emissions. The unit, which will debut in the Insignia and Zafira Tourer, has also been designed to be impressively quiet and smooth as part of Opel’s focus on ‘sound engineering’ measures to minimise NVH. To ensure it complies with Euro 6 standards, the new 2.0 CDTI uses Opel’s BlueInjection selective catalytic reduction (SCR) system, with the AdBlue solution available at filling stations and Opel dealerships.

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too. The model is powered by the newly announced Ingenium family of lightweight diesel and petrol turbocharged engines, premiering with an all-new 2.0-litre diesel engine set to be shared with the Land Rover Discovery Sport, offering fuel economy of 3.8l/100km with CO 2 emissions of 99g/km in 163hp form and on the smallest 17-inch wheels. More powerful versions of the engine will follow. Find out more about the new XE on page 16...

Ford S-MAX revealed ord has taken the wraps off the second-generation S-MAX, FRoughly which debuts at the Paris Motor Show. the same size as its predecessor, the all-new version of the seven-seat MPV brings a new design, with features seen on the Fiesta and the Focus, while the interior is intended to be a ‘dynamic sanctuary’ and includes heated and cooled MultiContour Seats with an Active Motion massage function. To aid practicality, there’s a power-folding feature for the second and third row seats, said to be a segment first. The new S-MAX also marks the European debut of Ford’s Adaptive Front Steering and the first global use of the brand’s Dynamic LED Headlamps with Glare-Free Highbeam. The introduction of Ford's Pre-Collision Assist technology is also billed as a first for the segment and the range also sees the introduction of four-wheel drive to the line-up. The unveiling comes as Ford also announces details of the forthcoming C-MAX and Grand C-MAX models, which go on sale in early 2015 featuring the latest Ford face along with significant improvements in fuel efficiency and CO2 emissions, advanced technology and smart new stowage ideas.

For the latest news, visit internationalfleetworld.com

Refreshed Mercedes B-Class line-up includes electric model

ercedes has unveiled its latest B-Class, which brings a revised exterior and interior design and more efficient M engines, including an Electric Drive model.

On sale now in Europe and in dealerships from the end of November, the new model offers five diesel models including the B180 CDI, which offers CO2 emissions from 94g/km and official combined fuel consumption up to 3.6l/100km. There are also four petrol engines with emissions from 122g/km and oﬃcial combined fuel consumption up to 5.2l/100km. The new model is also marked out for including an alternative drive version. Developed in partnership with Tesla, the electric motor offers 180hp and 340Nm of torque, with a claimed 0-100kph time of 7.9 seconds and a top speed of 160kph.

fleetweet a few soundbites from a month in fleet

@ACEA_eu Official Twitter account for the European Automobile Manufacturers’ Association (ACEA)

12.9 million people work directly and indirectly in the European #automotive sector #fact

@hansgreimel Hans Greimel, Asia Editor at Automotive News

#Infiniti finally gets new boss after de Nysschen and Palmer defect: Roland Krüger to lead Infiniti

@ProspectUpdate Official Twitter account for energy project advisor Prospect Update

By 2025, falling battery & #solar costs will make electric vehicles cheaper than #cars in most European markets

Infiniti adds 2.2-litre diesel to Q70 range

nﬁniti has announced details for its refreshed Q70 (formerly the Inﬁniti M), which makes its European debut at next month’s Paris Motor Show and gains a 2.2-litre diesel for the European market amongst other changes. Specifically launched for the European market, the new 2.2-litre turbodiesel four-cylinder is the same unit as in the Q50 and offers 167hp and 400Nm of torque from 1600rpm through 2800rpm, and offers improvements in turbo-diesel lag time and fuel consumption. Improvements have also been made to the Q70 Hybrid, resulting in a slight increase in possible EV range.

Honda unveils European Jazz

has released the first images of the new Jazz prototype that will HTheonda make its public debut at the Paris Motor Show. prototype provides a sneak preview of the third-generation model due next summer, which is based on the company’s new global compact platform. It will retain the centre fuel tank layout that is already found in the current model, as well as the Civic and recently-announced HR-V helping to maximise space. This will be further enhanced by increased dimensions – the new Jazz will be 15mm longer with a 30mm longer wheelbase, benefiting cabin space and also bringing practical storage solutions and the Honda Magic Seats seen in other models.

@aogarza Antonio Garza, Former US Ambassador and cross-border specialist

#Mexico is on pace to become world’s No. 1 auto exporting country to #US as early as 2015

@Momentum_UNFCCC Official Twitter account for Momentum for Change, @UN_ClimateTalks initiative

India offers USD 2.31 billion in incentives to makers of electric vehicles to boost low carbon transport industry

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

IHS Automotive forecasts China auto sales hitting 22.65m in ‘14. By comparison, U.S. expected to be 16.2–16.4m

internationalfleetworld.com / 09

Lower costs or higher motivation? Both! Fleet vehicles and car pool solutions from Mercedes-Benz.

A Daimler Brand

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

The consumption figures relate to the engines (C 180/C 200/C 250/C 220 BlueTEC and C 250 BlueTEC) available for the market launch 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 Provider: Daimler AG, Mercedesstraße 137, 70327 Stuttgart

(09/2014). Fuel consumption combined: 6.0–4.3 l/100 km; combined CO₂ emissions: 140–108 g/km. Efficiency class: B–A+. between different types of vehicle. The vehicle shown features optional equipment.

environmental news

Renault-Nissan to supply Orange with 200 EVs

elecommunications giant Orange is to add a further 200 electric cars and vans to its fleet in France by 2015, furthering its ongoing partnership with the Renault-Nissan Alliance. The fleet will comprise Renault ZOE and Nissan LEAF cars, and Renault Kangoo Z.E. and Nissan e-NV200 commercial vehicles, which will be deployed for car-sharing purposes between the company’s buildings and installations in France. Employees will be able to book a vehicle for professional or personal use online or via a smartphone, using Orange’s Auto Partage application, and the two firms will collaborate on the installation of a network of charging points at sites which are included in the car sharing programme. The vehicles continue to build on a wider international partnership between the two companies. With plans to reduce its carbon footprint by 20% by 2020, Orange has around 2,000 pool vehicles in France, of which 100 are available for sharing, and has a fleet of

30 Renault Twizy electric quadricycles operating in the Paris area. Hélène Billon, Orange facilities & mobility management director, said: “We believe that the use of electric vehicles needs to be encouraged both professionally and privately. Therefore, this agreement with the Renault-Nissan Alliance contributes to helping us meet our commitment to a 20% reduction in our CO2 footprint by 2020. “By that time, we hope to continue the acquisition of more than 1,000 electric vehicles, notably to account for about one-third of our car-sharing fleet in France.” Christian Mardrus, Alliance executive vice president for Renault-Nissan B.V. and the Alliance CEO office, added: “Thanks to the partnership between Renault and Nissan, the Alliance is able to provide Orange with the widest range of electric vehicles to meet its needs – from subcompact passenger cars to light-commercial vehicles.”

New study could lead to reduced wear from rapid charging

apid charging and discharging of electric vehicle batteries may not be as damaging as previously thought, according to a first-of-its-kind study. Scientists at the Department of Energy’s National Accelerator Laboratory charged and discharged coin-sized batteries at different rates, dismantling and X-raying their electrodes at different states of charge to check for degradation. During rapid charging, only a small part of the electrodes are absorbing and releasing ions, which in turn could lead to cracking and a reduced lifespan. However, this process was spread uniformly across most of the electrodes during rapid discharging.

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The results go against conventional wisdom that slower charge and discharge rates are better for batteries than fast ones, and imply that scientists could engineer the materials to absorb and release ions more uniformly to increase the lifespan of a battery. William Chueh of SIMES, an assistant professor at Stanford's Department of Materials Science and Engineering and senior author of the study, said: “The ine detail of what happens in an electrode during charging and discharging is just one of many factors that determine battery life, but it's one that, until this study, was not adequately understood. We have found a new way to think about battery degradation.”

For the latest EV news, visit evfleetworld.com

Used tyres could improve battery performance M aterials from recycled tyres could soon be used to produce more powerful anodes for electric vehicle batteries, following new research in the United States. The team at the Department of Energy’s Oak Ridge National Laboratory discovered that carbon black, a man-made substance similar to graphite which is used in tyres, could be recovered and modified to produce high capacity anodes for lithium-ion batteries. As well as giving the tyres a second life, the team discovered that this has a higher charge-discharge rate than commercial graphite anodes, which could result in a longer lifespan. The discovery could remove the need to develop a replacement for the carbon composite used to date, as well as its recycling benefits. Parans Paranthaman, one of the leaders of the research team, said: “Using waste tires for products such as energy storage is very attractive not only from the carbon materials recovery perspective but also for controlling environmental hazards caused by waste tyre stock piles.”

Electric VW police car ready for service

olkswagen is to launch a special version of the e-Golf electric car which is adapted for use by police forces in Germany. Unveiled at the General Police Equipment Exhibition and Conference (GPEC) in Liepzig, it’s the latest addition to the brand’s range of vehicles adapted for emergency services use and will go into service in the near future. Upgrades include a new digital radio and the new SoSi siren system, equipping the car for use in all tactical situations, the manufacturer said. The drivetrain, which offers a range of up to 130 miles, is unmodified and the battery can be rapid charged to 80% of its capacity in less than half an hour.

in numbers

£6m

SOURCE: TEN-T

Tesla to build world's largest battery factory in Nevada Tesla has selected Nevada as the site for its Gigafactory, which will be the world’s largest electric vehicle battery factory once production starts in 2017. In partnership with Panasonic, the site will employ 6,500 people and build battery packs for 500,000 vehicles per year by 2020, targeting reduced costs through economies of scale and streamlined logistics.

Mercedes to launch electric B-Class in Europe Mercedes-Benz has con irmed it will launch the B-Class Electric Drive in Europe as part of a range-wide facelift and model refresh. Already available in North America, it features a 177bhp motor and lithium-ion battery co-developed with Tesla and will be the carmaker’s irst all-electric vehicle in the region.

Nissan begins sales of first electric car in China Nissan has launched its irst electric vehicle in China as part of a joint venture with domestic manufacturer Dongfeng. The Venucia e30 is almost identical to the LEAF, and is available in nine cities across the country with plans to roll out nationwide next year.

EVtweet of the month @Tesla_Europe Official Twitter account for Tesla Motors Europe

In August, Superchargers in Europe powered about 4 million kilometers driven, saving almost 400.000 liters of petrol.

Combined EU and manufacturer investment in a network of multi-standard rapid chargers across the UK and Ireland.

102,440

Plug-in hybrid and fully electric cars registered in California since December 2010 – 40% of the total sales across the United States.

SOURCE: California Plug-in Electric Vehicle Collaborative

in brief

internationalfleetworld.com / 13

business news

Firms offering company cars more likely to retain staff that provide company cars are more likely to retain employees than those that reimburse personal vehicle usage for businesses work purposes, a recent GE Capital Fleet Services survey indicates. Notably, the research found that 87% of current company car users and 63% of personal vehicle users would not consider another company if it did not offer a company vehicle.

UK leads way on fleet growth potential in Europe

growing number of UK fleet operators are looking to expand, leading the way in Europe according to research from the Corporate Vehicle Observatory (CVO) Barometer. The research, which is conducted annually by Arval, surveyed 4,500 fleet operators in 15 countries and asked respondents if they expect the number of vehicles on their fleet to increase or decrease. The research shows that a balance of 17% of UK businesses with less than 100 employees expected to see an increase compared to 6% in other European countries. Meanwhile a balance of 15% of larger companies (100+ employees) expect to see growth compared with 12% across Europe.

Alphabet launches carbon offset scheme lphabet is launching a carbon offset scheme in all its markets in partnership with First Climate. aParticipating Alphabet customers can choose the project they wish

in brief EU-funded system to boost EV range Helped by EU funding, new technology is to help increase electric vehicle range by around a third in a move to help curb range anxiety. The OpEneR project comprises six partners, including Robert Bosch and PSA, which have developed a new intelligent energy management and recovery system for EVs, with two demonstrator electric vehicles presented in Spain this summer. The new solutions will be progressively commercialised and integrated into production of new models.

Renault-Nissan to supply Orange with 200 EVs The Renault-Nissan Alliance is to supply telecomms giant Orange with a fleet of 200 electric vehicles in France by 2015. The fleet will comprise Renault ZOE, Renault Kangoo Z.E., Nissan LEAF and Nissan e-NV200 models and will be mainly used for car-sharing purposes between the firm’s buildings and installations in France. The two firms will also collaborate on the installation of a network of charging stations at the sites which adopt the car-sharing service.

to support from a range of water, wind, solar or other ventures, while First Climate takes care of the entire handling process. The firm added that the cost is approximately 1% of fuel outgoings.

Trakm8 signs Scandinavian deal

Tata & Microlise team up for telematics Motors and UK-based Microlise have signed a multi-million TTheata pound contract to provide fleet telematics for customers in India. five-year contract will see Microlise provide in-vehicle hardware and a web-based portal to Tata Motors to help customers reduce operating costs and environmental impact by maximising the efficiency of their transportation. The new deal will expand on the usage of the Tata Fleetman Telematics and Fleet Management services brand launched in India two years ago.

14 / internationalfleetworld.com

Trakm8 has signed a contract with Norwegian company SAGAsystem AS (SAGA) to distribute the T8 tracking units and real time driver behaviour feedback product, ecoN throughout its network in Scandinavia. The firm said the initial order for the UK-manufactured hardware is worth over £270,000 (€339,500), which will be followed with ongoing monthly service charges for each unit, giving a solid recurring revenue base.

3.1 Brand Signature

Hyundai i40

Big on quality. Small on costs.

A spacious interior, impressive build quality, agile handling and many smart solutions including Intelligent Lighting make the i40 a great place to spend valuable time. And with a new generation of engines and transmissions delivering low fuel consumption, the i40 is the ideal travelling companion for your employees. Your finance department will love it too, thanks to the low cost of ownership. A true win-win situation. The Hyundai i40. Get on board.

Combined Fuel Consumption for i40 Wagon: 4.3 - 7.7 l/100 km, Combined CO2 Emissions 113 - 179 g/km. The 5-year unlimited mileage warranty is valid in all EU member states + EFTA. Warranty is subject to local terms and conditions. For taxi or rental usage model specific restrictions apply. For more information, visit www.hyundai.com/eu

SPOTLIGHT Jaguar XE

Top Cat

Jaguar’s re-entry into the compact executive segment is promising to be something very special indeed, says Alex Grant. DESIGN The XE is the first Jaguar to use the carmaker’s aluminium-rich modular platform, which had been shown as part of the C-X17 SUV concept at last year’s Frankfurt Motor Show. So this is the lightest, stiffest car ever to wear the badge, and the most aerodynamic too, promising excellent ride, handling and agility, as well as improving fuel economy. Styling mirrors the XF for the most part, which is no bad thing, with subtle nods to the F-Type, such as the functional wing air vents and rear light signature. Despite the coupe-like silhouette, Jaguar claims to have benchmarked the rest of the compact executive class for interior space. There’s plentiful legroom in the back and, while the windowline hampers rear visibility, it’s not short of headroom either.

ENGINES Jaguar is beginning to break away from its Ford and PSA engine links, and its all-new Ingenium family debuts in the XE as a 2.0-litre, four-cylinder diesel engine, soon to be available in a range of power outputs. For now, only a 161hp version has been confirmed, said to return a class-leading 3.8l/100km and 99g/km CO2 emissions for cars with the smallest 17-inch alloy wheels. The XE will be the only Jaguar available with a six-speed manual as well as the familiar eight-speed automatic used on other models. Stop/Start is fitted to all versions, as is regenerative braking, and the diesel will offer long service intervals of 33,000 kilometres to minimise ownership costs.

16 / internationalfleetworld.com

TECHNOLOGY There’s a familiarity to the XE’s interior, with a dashboard that wraps around the driver as in the XJ and FType, complete with the pulsing engine start button and rotary gear selector which rises out of the centre console on startup. Drivers can select from an extensive list of assistance technology, such as automated cruise control, blind spot and lane monitoring and crash mitigation functions to reduce insurance premiums, and it also features an advanced traction control system – based on Land Rover know-how – to improve grip on snow and ice. The dashboard is also home to an all-new infotainment system which allows Android and Apple smartphones to stream apps to its eight-inch screen via a USB connection, while the InControl app allows the same devices to remotely unlock doors, set climate control functions and reset the alarm.

WHAT WE THINK...

FLEET FACT XE models will return a class-leading 3.8l/100km.

Line the XE up against its nearest predecessor, the X-Type, and it’s clear that Jaguar has changed markedly since it last competed in this segment. But this isn’t only visual. There has been a holistic approach to cutting whole-life costs through new technology, materials, engines and clever thinking, such as simplified repairs for vulnerable parts. This is a brand on the rise, and the XE will be a valuable tool for bringing in new customers. AG internationalfleetworld.com / 17

SPOTLIGHT SEAT X-PERIENCE

A new experience. John Kendall analyses SEATâ&#x20AC;&#x2122;s new flagship for the Leon range.

DESIGN The Leon X-PERIENCE is distinguished from the ST by the raised ground clearance as well as a robust moulding to protect the door sills and wheel arches from off-road damage. The integrated front fog lamps include a static cornering light function to illuminate junctions when the car makes a turn at night, giving pedestrians additional warnings that the car is about to turn left or right. The front spoiler is finished to look like aluminium, a feature that is carried over to the rear bumper too. Roof rails are finished in black. 17 or 18-inch alloy wheels are also part of the Leon X-PERIENCE design. Inside, the Leon X-PERIENCE uses new materials and strong colours. Choose between the black and grey sporty elegance of high quality fabrics, brown Alcantara, or all-black leather seats.

ENGINES Leon X-PERIENCE customers can choose between two 2.0-litre TDI engines, offering either 150hp or 184hp. Both engines are equipped with an automatic Start/Stop and energy recovery system. The range-topping 184hp model delivers 380Nm of torque and comes with DSG 6-speed automated transmission as standard. It can reach 100kph in 7.1 secs yet returns an official combined fuel consumption of 4.9l/100km and CO2 emissions of 133g/km. 150hp variants are equipped with a 6-speed manual transmission, will reach 100km/h from rest in 8.7 sec, yet return a combined fuel consumption of 4.8l/100km, with CO2 emissions of 126g/km, which will help to keep vehicle tax and business vehicle taxes low in many markets. 18 / internationalfleetworld.com

TECHNOLOGY THE four-wheel-drive system that SEAT has chosen offers drivers the best of both worlds. The Leon X-PERIENCE benefits from the latest generation of the Swedish Haldex four-wheel drive system. This brings a number of advantages over conventional all-wheeldrive systems. Usually 100% of the drive will be directed to the front wheels. But whenever the system detects slip from the front wheels, it can transfer exactly the right amount to the rear wheels. There is no limit to the drive that can be transferred to the rear - any amount between 0% and 100% can be transferred to ensure that the Leon X-PERIENCE keeps moving. The system ensures that the car will not waste fuel by driving all four wheels all the time. But it means that it should be able to cope with off-road conditions, ice and snow and towing without the driver noticing when four-wheel drive comes into operation.

WHAT WE THINK...

FLEET FACT Seatâ&#x20AC;&#x2122;s Leon range covers 3-door SC hatchback to 5-door ST estate via the mighty Cupra 280.

The Leon X-PERIENCE gives SEAT a first-time entry in the fast growing crossover sector. The new model combines the flexible load capacity of a five-seat estate car, go-anywhere practicality of a four-wheel-drive system and the stylish lines of the Leon ST. The Haldex 4x4 system is one of the most advanced available, ensuring that drive is transmitted to the front wheels for most of the time, only transferring drive to the rear wheels when needed, reducing tyre wear and fuel consumption. The 150hp and 184hp TDI diesels combine performance with low emissions. JK internationalfleetworld.com / 19

RVs

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

Contract hire rentals down Fleet operators see rental rates falling across Europe, says Experteye.

ontract hire rentals have been falling across Europe in the last three months, with some countries reporting reductions of between 3% and 5%. Fleet operators in Portugal have seen the largest three month price drop with rentals reducing by -4.9%. In France they dropped by -3.8%, Italy -3.6%, the UK -0.9% and Germany -0.2%. The only nation to have suffered an increase is Spain where prices have crept up by just +0.2%. The igures come from the Experteye European Leasing index survey, which tracks forecasted residual values (RV), servicing, maintenance and repair (SMR) costs and rental rates in six European countries using data supplied by major leasing companies. As well as seeing a slight quarterly increase in their rentals, companies leasing vehicles in Spain have seen a +3.2% price rise in the past year. Apart from Italy, where prices have also gone up (by +0.2%) since September last year, all other nations in the Experteye survey have seen rates drop. French leasing companies have reported a -2.1% reduction in rental prices, in Portugal there has been a -1.4% annual shift, the UK -0.8% and Germany -0.4%. The reduction in rates re lects improving optimism in the forecasted residual values which make up the lease rentals, yet there still appears to be mixed fortune across Europe with servicing, maintenance and repair (SMR) budgets. The Italian leasing sector has reported a massive -10.1% fall in budgeted SMR costs in the last three months when in France they went up by +2.8%.

Market summaries – 3 and 12 months to August 2014

FRANCE: French contract hire rentals fell by -3.8% in the last quarter, after a year that saw them come down by -2.1%. Forecasted RVs have been relatively stable with a -0.4% fall since September 2013, and a very small -0.1% shift since June. SMR budgets have gone up by +1.1% in the last twelve months and +2.8% in the last three months. GERMANY: In Germany the picture is one of stability. Forecasted residual values moved by a marginal +0.1% for both the year and the quarter. SMR budgets have only changed by -0.1% over the last year, but have seen a -2.7% fall since June this year. Rentals rates have altered by -0.2% for the quarter and -0.4% for the year. ITALY: Having fallen by -10.1% since June, Italian SMR budgets are the most eye-catching statistic of the Experteye survey, although across the last twelve months the average shift is only -1.9%. RV forecasts are up for both the year and the quarter with a +1.7% and +1% rise respectively. After a year that saw rentals creep up by +0.2% they came down by -3.6% in the last three months. PORTUGAL: Rental prices in Portugal have fallen by -4.9%, the largest reduction of all nations surveyed. Over the course of the year they came down by -1.4%. SMR budgets shifted by -4.2% in the last quarter after a year that had only seen a -0.4% change. Forecasted residual values went up by +2.6% for the quarter and +3.8% for the year. SPAIN: Rental costs have gone up by +3.2% in Spain since September 2013, but have risen by just +0.2% in the last quarter. RV forecasts have risen by +1.1% since June this year, and +1.4% for the year. SMR budgets rose by +2.6% over the 12 months and +2.1% in the last three months. UK: A -6.4% downturn in UK forecasted residual values reflects a typical seasonal registration pattern around the plate change. For the year forecasted RVs are up by +2.4%. SMR budgets have seen very little change, with a +0.4% increase in the last three months following a year that saw them fall by -0.3%. Rental prices have come down by -0.8% since September 2013 and -0.9% since June this year.

CHANGES IN RV FORECASTS, SMR COST FORECASTS AND LEASE RENTALS Forecast Service, Maintenance Current Rental Rates and Repair Costs 3-month change 12-month change 3-month change 12-month change 3-month change 12-month change -0.1% -0.4% +2.8% +1.1% -3.8% -2.1% +0.1% +0.1% -2.7% -0.1% -0.2% -0.4% +1.0% +1.7% -10.1% -1.9% -3.6% +0.2% +2.6% +3.8% -4.2% -0.4% -4.9% -1.4% +1.1% +1.4% +2.1% +2.6% +0.2% +3.2% -6.4% +2.4% +0.4% -0.3% -0.9% -0.8% Forecast Residual Values

France Germany Italy Portugal Spain UK

Notes: • The comparisons are for vehicles with a contract duration of 36 months/90,000km. • Twelve-month comparisons show change since September 2013. • Three-month comparisons show change since June 2014.

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• Rental rate changes compare the rates in effect at the time of the survey with those in effect three or twelve months ago. • RV and SMR changes show the change in participating leasing companies’ forecasts of residual values and maintenance costs over the period.

MANAGEMENT Software

Making sense of data Making data more user-friendly is the next step forward in fleet management software. Steve Banner reports.

How profitable? Failing to allocate all the costs of the cars and vans that had to be used to a particular job, or allocating inaccurate figures means a company cannot tell how profitable the job was; or if it generated a profit at all. Basel, Switzerland-based leasing specialist Auto-Interleasing realised some time ago that this was a problem some of its customers might face so it decided to use Sofico’s Miles software system to help them solve it. It enabled Auto-Interleasing to offer its clients a solution called Full Distance. It allows them to record the precise monthly costs for each vehicle on the fleet based on a pre-agreed matrix of prices linked to the mileage driven. Mileages are captured from the driver or leet manager using odometer readings or downloaded into the So ico system courtesy of an onboard telematics ‘black box’. The costs can then be set against the job concerned.

Customer choice In a separate area of fleet management, in the USA Telogis has recently introduced Telogis Appointment as an extension to its cloud-based location intelligence software platform and as the latest addition to the Telogis Route Planning Suite. Suitable for companies that run fleets of vans on home delivery work, it allows consumers to pick delivery slots that are the most convenient for them, while at the same time being the most cost-effective windows for the delivery firm. Estimated times of arrival can be

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transmitted to the consumer by text or email. “By providing a higher level of service to their own customers, Telogis customers benefit from increased fuel savings, mobile worker productivity and profits,” says Telogis co-founder and president, Telogis Route and Navigation, Newth Morris. The ability to call on such differing facilities is but one example of the impact up-to-date software can have on the way a fleet is run. The scale of this impact is being increasingly appreciated by major users according to Chevin Fleet Solutions managing director, Ashley Sowerby. “What usually happens is that a user adopts a system, it is provided on a software-as-a-service basis and the fleet’s investment is limited to the monthly per-user fee that we charge,” he observes. “However, we have some customers who believe that a planned and ongoing investment in fleet software is highly worthwhile,” he continues. “They might decide to acquire a particular module that we produce in order to solve a specific problem, or even to set budget aside to ensure they are using their existing system to its fullest potential.” He is acutely conscious that this sounds painfully like a sales pitch – “It just looks as though we are trying to get clients to spend more money” – but adds that the self-same point was made by a major customer at a Chevin user group meeting held recently in the USA; and the reaction from other clients present to what was said had been a positive one.

Stateside success Chevin’s web-based fleet management software has been adopted by Northeast Utilities’ fleet.

Cost monitoring Chevin has been enjoying some success in the USA of late, with New England’s Northeast Utilities opting for its FleetWave web-based fleet management software to help it look after more than 5,400 pieces of equipment across seven operating companies. Many thousands of miles away, FleetWave is making significant progress in sub-Saharan Africa. Nairobi-based Toyota Kenya is employing it to manage a major deal it has struck with the country’s government. The company is supplying leased vehicles to several government departments, starting with the Kenyan Police. “It is being used by the Toyota distributor to monitor the costs associated with these vehicles, including factors such as repair times and the elimination or reduction of any undesirable expense,” says Telematics Africa director George Kuria, who helped to put the Chevin deal together. “Toyota is the most popular vehicle here so Toyota Kenya was chosen to pilot the new lease project.” Leasing rather than choosing outright purchase is something of a departure for the Kenyan authorities but it is a development that has been under consideration for a while. “However, the plan remained in limbo until there was a change of government under a new constitution last year,” says Kuria. He believes that FleetWave will eventually be used to oversee around 12,000 leased vehicles. “That’s a huge project by Kenyan leet standards,” he remarks.

Multilingual monitoring Go global – or even use it in just one country in certain cases – and you quickly discover that fleet software has to be capable of being adopted for use in more than one tongue. “One reason why we selected Miles was because of its genuine multilingual capability,” says Auto-Interleasing IT director, Philipp Spaniol. “In Switzerland we speak three main languages; French, German and Italian,” he continues. “To use a system that could easily be converted from one language to another was extremely important to us. “It also interfaces with automotive suppliers such as fuel card and tyre companies and service garages very easily and that’s another key factor for us,” he adds. “We’re fleet managers, not software developers, so ease of use really matters.” The multilingual capability of Miles also appealed to Turkey’s Hedef Fleet Services. “Translating it from English to Turkish was very straightforward,” says managing director, Onder Erdem. Fleet software has to be capable of handling inputs from a wide variety of onboard telematics systems that - as indicated above – monitor mileage as well as track the whereabouts of the user and download information on everything from fuel usage to whether or not the driver is accelerating too quickly. In the USA, Telogis has announced that it is joining forces with General Motors to make it easier for leet operators to receive real-time information that addresses many of these areas using the latter’s OnStar telematics technology installed in GM vehicles.

OnStar telematics technology is installed in GM vehicles.

Outdated software and hardware Increasingly, however, fleet software is some way behind the software to be found on the smartphones, tablets and ultrabooks that employees carry around with them for personal use says Sowerby; and these so-called Bring-YourOwn-Devices (BYODs) may be used for work purposes as well, he points out. “In the corporate world we have many users running our software on Windows XP desktops that date back up to a decade,” he says. “Contrast this with the cutting-edge personally-owned devices that many employees use at work as part of their

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MANAGEMENT Software

lives,” he continues. “They’re often several ¡ day-to-day generations ahead of the official corporate IT. “As a consequence we’ve developed our software to meet the needs of BYODs and often make use of capabilities built into these devices that are not found in any corporate desktop or laptop PC,” says Sowerby. “GPS is a good example. “In this way BYOD is helping to push forward the development of our products at a faster pace than would otherwise be happening.” He goes on to warn however that if employees are using personal smartphones, tablets and so on to access leet software then a company has no control over who may try to get into its system if the devices are stolen or lost. As a consequence, corporate IT policy needs to be modi ied to take this risk into account and minimise its possible impact. Not all leets rely on obsolete corporate software and operating systems of course and many businesses are replacing packages that have long outlived their usefulness. In the Republic of Ireland, Kilbarrack, Dublin-based Avis Fleet Services Ireland recently employed Bynx to implement bynxFLEET across its entire operation. The new package supplanted one that been in place for 10 years, had never been upgraded and was not integrated with any other aspect of the business. Information silos had developed alongside inefficiency and high cost. “We were losing out to competitors in tenders because of the limitations of our technology,” says financial accountant/director, Brian Tobin.

Corporate car sharing... NGM’s ‘fleetster’ is designed to help clients manage pool cars, providing users with an easy means of booking them, thereby increasing fleet utilisation.

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Integrated software Underlining just how comprehensive a modern fleet software package can be, bynxFLEET is made up of a database engine, a financial reporting platform and a suite of modules and applications that cover all elements of the business of fleet operation and vehicle leasing. They address everything from maintenance to disposal. Other areas that can be handled include vehicle procurement and licensing, accidents, ines, fuel and tyres. Drill down into this sort of data and you can soon see for example which cars are spending too much time in the workshop – and whether the cost of some of the work done can be recovered under warranty – and the nature and cost of some of the accidents that are occurring; and which drivers are having them. Tobin and his colleagues are also introducing bynxNET, which will allow them to provide web portals and online access to customers, drivers and other stakeholders, many of whom of course may have gone the BYOD route. Fleet management software needs to be capable of accommodating the changing requirements of businesses; and that includes going the corporate car-sharing route. It is a requirement recognised by Next Generation Mobility (NGM) of Munich, Germany, which has come up with some web-based software called fleetster. Designed to help clients manage pool cars, it provides users with an easy means of booking them, thereby increasing fleet utilisation – usually by more than 25%

says NGM – and potentially allowing for the overall size of the car pool to be reduced. It also makes it easier to integrate electric cars into the pool, NGM contends, because it finds the most suitable vehicle for each journey; and if it is a short trip the vehicle concerned may be battery-powered. Also available with fleetster are a variety of other functions including service reminders and driving licence checks. Users of leetster include skiing equipment manufacturer Atomic Austria and Dutch energy companies TenneT and Cogas. TenneT says that switching to NGM’s system resulted in a 90% drop in pool car administration costs. Cogas reports that utilisation of the electric car it operates has risen significantly since fleetster was introduced, partly because the software always knows whether it has enough charge left in its batteries to complete the trip the driver needs to make. Any fleet management software package must be designed to help fleet managers make sense of the tidal wave of data that constantly sweeps towards them, says Sowerby. “What we need is for the graphical representations of information to become ever more flexible and for dashboards to become the central point of fleet management,” he observes. That way the never-ending stream of facts and figures –

with exceptions to pre-determined parameters highlighted – may become easier to digest. If this is the case then perhaps software companies may care to take a look at some of the work carried out by online tachograph analysis bureaux that help heavy truck operators comply with the European Union Drivers Hours rules. They use on-screen dashboards that enable fleet managers to see at a glance if their drivers are obeying the law and where and when breaches have occurred; vital information given that the penalties for getting it wrong in such a tightly-regulated industry can be truly draconian.

“Any fleet management software package must be designed to help fleet managers make sense of the tidal wave of data that constantly sweeps towards them.” Chevin Fleet Solutions managing director, Ashley Sowerby

AWARDS2014 WINNER

STRATEGY Formula E

Electric dreams FIA President Jean Todt discusses the new global electric race series. On Saturday 13 September the vision of FIA President Jean Todt to create an all-electric championship sparked into life. Ahead of the historic occasion he spoke about the philosophy behind the series and his hopes for the future...

Can you explain the inspiration behind setting up an all-electric championship? The world is changing and as the sporting lagship of motorsport we have a responsibility to keep up with those changes. The link between daily mobility and racing is very important. For me the electric car is really the future of motoring in the cities. And that’s why we began with hosting races in world cities. The exam was the first race in Beijing. We have been creating very high expectations and in life if you create expectations you must not disappoint. So that’s where we are.

Do you see technology transferring from Formula E to other FIA championships? We can expect development in batteries, motor technology and security issues that can be transferred with other series such as F1, WEC, etc. So I would say let’s try to develop as much that can be transferred to a city car as possible.

How does Formula E fit on the motorsport ladder or does it stand on its own?

year and only 1% is with new energy like an electric car. It’s less than a million cars, but I think we can play an important role in promoting the use of more electric cars in cities.

In what ways can Formula E help with the Campaign for Road Safety? Each single category of motorsport has to contribute towards road safety. And over the past decades the motor racing community has been doing a lot with regard to road safety and education as well. You would not get into a racing car without putting on a safety belt, without putting on a helmet, so the same applies on the road. For me a racing driver has to be an ambassador. He has a strong voice. If he says that he will never use a phone or send an SMS while he is driving people will listen more than any other institutional message. For the FIA it’s quite clear. If a racing driver says I go as much as I can to exploit the limit of my car on the circuit, but when I become a normal citizen on the road I will respect the speed limit, it’s a very strong message. They are a hero for young people. For me each champion has a responsibility to be an ambassador.

It could be said that FE is more a stand-alone series rather than a new thread included in the single-seater ladder. However, it still does open career pathways for drivers with various backgrounds and has already attracted both young talents and experienced racers. For me it’s a city, single-seater category, and I’m keen to keep it on a track of its own. You have everything take place in 24 hours. The day before it’s just a normal city, then everything happens for the organisation of the race and then 24 hours later it’s just a memory until next year.

Another unique feature of the series is the plan to leave a lasting legacy behind. How do you feel about that? It can encourage people to adopt new technologies. At the moment 75 million cars are sold all over the world each

For more information, visit www.fiaformulae.com

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INTERNATIONAL

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NEWS from the global fleet community

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MANAGEMENT Road Risk Report

Road Risk Your Problem? The recent ETSC report outlines how businesses cannot afford to ignore occupational road risk. John Kendall reports.

ransporting us from one place to another is fast becoming just one of the things that a car can do for us. Connectivity is something that we expect from most cars today, in the form of an available Bluetooth connection. Some cars also offer a mobile Wi-Fi hotspot enabling occupants to connect to the Internet via the 3G/4G mobile networks. But these are comparatively narrow de initions of connectivity and with further advances in autonomous driving there will be more ways that vehicles can connect with each other and communications networks. The UK recently announced that it would permit autonomous ‘driverless’ cars on its roads from January 2015, in the form of a trial in three cities, which have yet to be identi ied. Mercedes-Benz recently announced that it has also been carrying out preliminary trials with an autonomous driving system based on its Actros heavy truck. The vehicle uses radar, GPS and Wi-Fi among its communication systems and will be on display at the IAA Hanover truck show in September. The Business Case for Work Related Road Risk Management (WRRM) was published by the European Transport Safety Council (ETSC) earlier this year, as part of its Preventing Road Accidents and Injuries for the Safety of Employees (PRAISE) project. As the title suggests, the report was published to show leet managers that apart from reducing accidents and injuries involving employees and those driving for an organisation, there is a strong business case for a risk manage-

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THE BUSIN ESS CASE FOR MANAGIN G ROAD RIS K AT WORK May 2014

ment approach to driving for business. To quote from the report, “From a reputational and business perspective, being involved in a fatal or serious collision can have a signi icant impact on organisations and their leaders.” The report gathers accident data from across Europe to give an idea of the scale of the problem. ETSC’s own data shows that in 2012, 28,000 lives were lost on European roads and a high proportion of these fatalities were related to driving for work or commuting. Data from the UK, Germany and France illustrates the size of the problem in these countries.

Europe-wide problem UK data shows that business travel is responsible for about 30% of all travel in

the country. This igure rises to over 50% if commuting is also included. UK Government data shows that people who drive for work are 40% more likely to be involved in a collision than other drivers and this accounts for up to one in three road collisions on UK roads. European Commission data from 2005 suggests that such collisions accounted for 39% of work-related deaths in the EU. In addition, these are the world’s leading non-medical cause of death and serious injury. The report also indicates that commuting accounts for over 20% of work related deaths in Spain and as much as 45% in Germany. Data from Eurogip in France shows that 47% of work related deaths occur on the roads in France. The data shows that the problem is sizeable across Europe. In fact it is notable that among France, Germany, Spain, Belgium, Sweden and Finland, the only countries that have seen the number of deaths due to commuting fall in 201112 were France and Spain, two countries badly affected by the European inancial crisis. These reductions could be at least partly due to a reduction of people in employment rather than any changes in policy affecting work related driving.

Managing risk reduces harm and damage Even without looking into speci ic data relating to vehicle leets, it’s clear that there is a business case for managing work related road risk, by reducing the

number of employees involved in accidents causing death and injury. The report states, “The business case for road safety is centred on the prevention of harm to persons and the protection of property and the environment.” Furthermore the report stresses that this is a signi icant shift from the historical position when organisations tended to focus on road safety only after a high-cost collision or fatality, as a reactive response. So taking appropriate steps to avoid accidents before they can happen is a key element in the strategy. In the report’s own words, “Any WRRRM scheme should start by looking at the business case to in luence a sustainable reduction in the numbers of people injured, traf ic offences committed and assets damaged.”

Reducing risk equals reduced cost So where should an organisation start from? The report highlights some useful links. For example, the link between road safety and asset and fuel use. If journeys are planned in advance and the driver leaves with plenty of time to arrive at his or her destination, the driver will feel less pressure to speed and take risky decisions. A driver who feels under less pressure is going to be more alert and relaxed. This is likely to result in less fuel being used and less wear and tear on the vehicle, as well as a lower likelihood of risky behaviour. Taken together, these factors will in luence residual values, maintenance and repair costs. A collision that results in business being lost could have more far-reaching effects than just that loss of business. It could also affect the reputation of the organisation concerned, which could impact on future business.

Legal requirement to manage risk

“It’s clear that there is a business case for managing workrelated road risk.”

The report reminds readers that under European Framework Directive 89/391/EEC every employer in the EU is required to undertake a risk assessment from a prevention perspective and that this should include employees travelling for work. A number of national agencies have issued guidance documents on the subject and the report highlights “Driving at work: Managing work-related road safety”, produced by the UK Department for Transport as a recognised minimum benchmark standard. This publication makes it clear that vehicles are classed as workplaces and that risk

assessments need to be carried out for drivers. The Swedish Work Environment Authority has also produced a guidance document relating to the European directive. Advice on how to develop a road safety policy is included in it.

What do road accidents cost your organisation? The report recommends that in assessing the business case for WRRM, a irst step is to look at how much a road accident costs an employer. Included here are approximate repair costs of the last vehicle accident, or assessing the annual repair bill. Health bene its need to be considered too, such as medical and disability insurance, sick leave, life insurance and medical compensation costs. Since third parties are often involved, associated costs also need to be factored in. This could extend beyond direct costs to include third party vehicles, personal damages, property damage, personal injury claims, ines and legal fees. And the list goes on. It could also include redelivery costs, damaged or lost stock, administration costs as well as image, reputation and PR effects. The report recommends two publications on safety cost, from the UK Health and Safety Executive and the US National Highway Safety Administration. Not all road safety initiatives carry a cost to an organisation, says the report. These could include a detailed internal business case presented to senior management, asking insurers, leasing companies and vehicle suppliers to support risk management programmes and focussing on uninsured loss recoveries, using the money clawed back from ‘at fault’ third parties to invest in WRRM programmes. These are just some of the things covered by the report. Involving the most senior managers and directors in any WRRM programme is reckoned to be a key objective, ensuring that everyone in the organisation takes the matter seriously.

The report can be downloaded for FREE at: http://etsc.eu/the-businesscase-for-managing-roadrisk-at-work/

internationalfleetworld.com / 29

Crack The Code Of Global Fleet Management With Fleet’s Most-Trusted Three-Day International Fleet Conference!

NAFA’s International Fleet Academy November 5-7, 2014 Rosen Shingle Creek Resort Orlando, Florida

REMARKETING Norway

Smaller is better Autorola’s general manager, western Scandinavia, Brian Madsen reviews the changing face of Norway’s used vehicle market.

he Norwegian car market is setting the European standard when it comes to incentivising the use of zero emission cars. As we discussed in the September issue, no VAT, reduced road tax, a 50% reduction in company car tax, access to bus lanes in the capital, Oslo and free public parking are all active incentives available to Norwegian electric vehicle drivers. Since 94% of Norway’s electricity is generated from renewable sources and just 2% from fossil fuels, the country is in a stronger position than many European countries to reduce CO2 emissions from cars. The response has been very positive with nearly 18,000 EVs sold in 2013, with sales continuing to grow in 2014. Where else would you see electric cars such as the Tesla model S and the Nissan LEAF among the country’s top five best selling cars? Even so, EVs still only account for just a small percentage of the 2.5 million cars on Norway’s roads. The average age of used cars in Oslo is 8.0 years and in some places, such as in Oppland, one of the more rural counties of Norway to the north of Oslo, as high as 12.8 years. This compares with many EU countries where cars average 8.3 years in age, although Norway’s numbers are set to gradually fall as drivers opt to drive smaller, more fuel-efficient cars. Generally the current used market prefers lower mileage smaller cars with smaller engines, which offer better fuel economy and lower CO2. This move from older cars, plus the growth of EV sales supports the country’s aim to reduce its emissions and reduce motoring costs for car owners.

This increased the demand for small cars that are fairly new, with low CO2 emissions. Supported by a strong economy, this has led to more used vehicles being imported but volumes of exports still remain limited. “The Norwegian market is similar to Switzerland, in that it is not part of the EU and uses its own currency. This tends to cause challenges when exporting, which is why volumes are low,” explained Autorola Norway’s country manager Brian Madsen. “By contrast, car imports are growing, particularly from other Scandinavian countries, as dealers try and satisfy the country’s demand for smaller, fairly new used cars with low CO2,” he added. Norway imports a number of used cars from its Eastern neighbour Sweden, which is the biggest new and used car market in Scandinavia. Many of these cars are bought through Autorola’s online remarketing platform. “Exporting cars from Norway just doesn’t work out as well as we would like due to the increased amount of paperwork generated because Norway is not a Eurozone country. However, we have been successful in exporting commercial vehicles, containers and plant online to other parts of Europe, particularly Germany and Holland. “Their higher value and more bespoke specification helps stimulate demand. With used cars we can see imports of smaller cars continuing to rise as Norwegian motorists switch onto the cost benefits of running a smaller and newer car,” added Madsen.

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INTERVIEW Jordan Bennett, Ford Transit

Drawing the future How do you design a van that will be sold around the world? John Kendall asks Ford’s Transit design manager, Jordan Bennett. Replacing two iconic designs Replacing any iconic vehicle is never an easy prospect for any designer. Whether it’s an exotic rare car or a much loved volume produced model makes little difference. Imagine being tasked with replacing the VW Golf, sold all over the world, the Land Rover Defender, or Toyota Landcruiser – similar models with a worldwide audience and a loyal following. So spare a thought for Jordan Bennett, design manager for the Ford Transit. Ford’s panel van was already sold in over 70 countries before the arrival of the latest ‘2-tonne’ model, replacing the heavier Transit range earlier this year. For the new model, Ford pushed sales into countries where the van had not been sold before. Not just any countries, but the United States and Canada, replacing the long-running Ford Econoline. So Bennett not only had to satisfy leets in Europe, where the Transit name has been on a panel van for almost 50 years, but he also had to come up with a design for customers who had just lost one long running model line. Given the difference between European and North American vehicle design, the task was not getting easier.

Where do you start? Ford acknowledged the magnitude of the task by appointing separate design teams to handle the interior and exterior. So just where do you start, when faced with such a big design task? “You set yourself a set of foundation blocks,” says Jordan, “In this case, it was Ford DNA, with Transit DNA. When I say DNA, I’m talking about the traits and features that you’d associate with a design philosophy. At the time it was Ford’s ‘Kinetic design’, although we don’t use the word any more. “There are certain design features that we also had to integrate for Ford DNA and Transit DNA. Again the traits for Transit

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“We always need a philosophy, a statement of rules that we’ve designed and created for ourselves to give Ford models a family identity.”

DNA are obviously, ‘Fit for purpose’ and the fact that it had to look like it could do the job and that it could do the job reliably and dependably and obviously to the best of its ability in the market place.”

looked like the front had been attached to a box, so it didn’t work. So we had to then re-think what we were doing. Again, we had to come up with an idea that was for the bigger CVs. It’s one look for the heritage of Ford.

Standout features “We always need a philosophy, a statement of rules that we’ve designed and created for ourselves to give them a family identity. In this case it was the trapezoidal grille. You’ll see it on all the Ford products, in various different guises, in different proportions and this is obviously the biggest. Even in North America, with the exception of the F150s because they are kind of vertical either side for the grille, you’ll have this trapezoidal grille. Even now with the next generation of Fords, they will have the trapezoidal grille. It will be slimmer for cars and a bit more substantial for commercial vehicles. “It’s every sort of aspect that you can go through on this van that you wouldn’t have gone through in previous Transits. For those it would have been a matter of designing an exterior and just adhere to the engineering and feasibility, package and engineering constraints. “With this one, you have to make it a global Ford identi ied product. So you could cover the badge and tell where it actually came from.” So did Ford do that with customers in design clinics? “We did and a lot of people guessed what it was. We tried one clinic with one that had a front end that was similar to the Transit Custom and it didn’t do so well, because it was too streamlined for the load capacity. It’s carried off on the Transit Custom because above the windscreen it’s at that level all the way across, the proportions are really well balanced. When you come to doing something that’s got two different roof heights and three different lengths, then it’s a different ball game. It

Getting it right “When we took it to clinics again in Europe and North America, we got a different reaction – “OK, this is it, we like this, this one looks like it its the van and the purpose, the strength, dependability and reliability.” It just became a bun ight, so to speak, about the height of this bullnosed section (the grille) and it was only 30mm difference. We had two models and it really does look different. “In the end, we went for the lower one.” So was there a clear split between Europe and North America in choosing the higher or lower design? “It was just certain factions on both sides of the Atlantic. There’s a lot of people who think that because it was going to America, that’s where Ford’s headquarters are and no one else had any in luence, but that’s not the case. We took it to clinics extensively in Europe and the UK and yes, it’s different, it’s strong, it’s a proper face for Ford.” Jordan then walked me round the van. “We’ve incorporated a lot of features and again, you’ll see these on the cars and other commercial vehicles. There’s a strong pronunciation of the wheel arch. The customers and potential customers in the clinics could see it and that it gives it a good start and you want a good visual start. We took some models to clinics with more tumblehome (more taper into the body sides as they reach the roof) and it didn’t look like it could carry anything. It didn’t look very stable, so we then had to tune it to a ine point where it met the package requirements, but didn’t look too top heavy, it was a ine line. “Then we had to do it again for the low-

roof version in America. It was quite a task to get that. Getting back to the pronounced wheel arch trait, when we’re designing a van, we’ve got the responsibility for the Asurface. Then there’s ‘real estate’ on the inside between the interior and everybody is jostling for that space, so we in exterior design want a pronounced wheel arch. It’s a trade off and we’re always going backwards and forwards. It could have been a lot latter and had just one crown in it, but it would have been featureless.”

Family features Jordan then pointed out a small feature at the back of the side panel, just above the waistline, where the pressing line does not run horizontally all the way to the back of the vehicle, but rises diagonally at the end, “This feature here, you’ll see on every Ford product,” he says, “We call it the undercut. It creates a shadow, creates a dynamic feeling that the vehicle is moving even when it isn’t and the customer sees it too. “The customer is not just about, “Yes it’s going to get good gas mileage, you’re going to get lots of stuff in it.” They want to be seen in the market place to be ef icient, switched on. There’s a lot of owner drivers as well as leets, but even the leets want to be seen as saying we’ve got the latest model and it shows how successful our business is. “You would never think about that in previous Transits. It’s like a philosophy for the cars and when you see it you think that’s synonymous with Ford design. They’ve actually intelligently thought about what they are doing and put a bit of sculpture on a van. Nobody ever thought about putting sculpture into vans because it’s a box that you carry stuff with and it’s got to be economical and ef icient, but it doesn’t have to look like anything. But nowadays, it does. It’s a big player in the perception of success and being intelligent in what you’re doing.”

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FLEET FOCUS India

India gears up for growth A new Government seems to have triggered an improving economy in India, while the automobile sector is targeted for growth over the next decade, as John Kendall reports.

t’s just over two years since we last looked at the Indian automotive and fleet markets. Back then; India was feeling the cool winds of a slowing economy. That was a prelude to a period of economic turmoil, which is still affecting the country today. According to the Economic Times recently, the government of Kerala state in the south-west of the country is considering ramping up vehicle taxes to help overcome the financial crisis currently facing the state. Overall, the Indian economy is in a state of fragile recovery. For the automotive sector, the weakened economy led to a decline in passenger vehicle (PV) sales for the irst time in a decade. According to Frost and Sullivan, PV sales in India reached 2.4 million in 2013, but the company believes that this will grow to 3.6 million by 2019 and Frost and Sullivan believes that petrol power will dominate the PV sector in the coming years. Free trade agreement to boost automotive? India is one of 16 countries involved in negotiations over the Regional Comprehensive Economic Partnership (RCEP), a proposed free trade agreement between the 10 member states of the Association of South-East Asian Nations (ASEAN) and the six nations that ASEAN already has free trade agreements with, namely Australia, China, India, Japan, South Korea and New Zealand. The 10 ASEAN member states are Brunei, Burma (Myanmar), Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand and Vietnam. Negotiations began in 2012 and are due to be completed by the end of 2015. Under the RCEP, India should become a production hub in the automobile sector and a major exporter. Target markets include Europe, the Middle East, Africa and other markets in Asia and the Oceania region. The Automotive industry would serve as an engine of growth for economic development in India under RCEP.

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Automotive agreement with Japan signed More recently, in September 2014, a Memorandum of Understanding (MoU) has been signed between the Society of Indian Automobile Manufacturers (SIAM) and the Japan Automobile Manufacturers Association (JAMA). Japanese manufacturers have been involved in the Indian automotive sector since 1963 when Yamaha began producing motorcycles in India. Today India is the largest market for motorcycles and scooters in the world. Japanese motor manufacturers have 18 production sites across India, including four that are either planned or under construction. The MoU recognises that Indian motor manufacturers face a number of challenges including the production, sale and servicing of safe and environmentally responsible vehicles that meet the needs of Indian customers and adopting internationally harmonised technical standards. India’s infrastructure presents another challenge, while bureaucracy, problems in obtaining business permits and a complicated tax system are also seen as challenges for further development in India. Automotive Mission Plan India has an Automotive Mission Plan 2006-2016 outlining future development in the industry but the recent economic slowdown means that around 25% of the targets set are likely to be missed, according to recent reports. The plan includes aims to see output from the Indian automotive sector rise to $145bn (US) (€110.5bn) by 2016, contributing 10% of India’s Gross Domestic Product (GDP) and providing employment to an additional 25 million people. India is already working on a new plan for the following decade to 2026 with the aim of increasing the share of manufacturing in GDP terms from 15% to 25% and increasing the volume of exports.

“Maruti Suzuki is the largest manufacturer on the Indian car market with over 42% total market share.”

In its recent report, “Market Forecast and Key Trends in the Passenger Vehicle Market in India”, Frost and Sullivan expects PV production in India to rise at a compound annual rate of 4.3% over the next ive years. For 2015, the report expects the rate to be less, citing massive duty rises by the Sri Lankan government, Europe’s non-tariff barriers and preferential duty agreements with certain African and Latin American countries. Frost and Sullivan’s analyst commented, “The next phase of market growth will depend on political stability and new reforms,” stressed the analyst. “Regulations that drive technology advancements and fuel ef iciency improvements will play a crucial role in determining the road ahead for the Indian PV market.” New Government sparks growth India elected a new national Government in May, won by the National Democratic Alliance, led by the BJP under Narendra Modi. For the first time since 1984, a political party won an outright majority, giving the BJP 282 seats in the Indian parliament and the NDA 336 seats, out of 543

seats in total. According to Suvajit Karmakar (pictured), chief executive officer of ALD Automotive India, the new government has focused on the economy from the start. “From what we understand, the Government is trying to simplify a lot of things, becoming a bit more pro-business and they accept that growth has to come. Without growth, neither the overall economy nor the situation of India is not going to improve, so there are a lot of changes they want to bring in. “Since June, we have been seeing some good indications in the market. The overall car market seems to have improved. Registrations in August went up compared to the previous year.” India measures the car market by financial year, which runs from April to March. For the 2013-14 financial year, the market dropped by around -6.0% to 2.3 million new cars. Suvajit Karmakar says that for the past few months growth has returned to sales, with 4.4% sales growth for the overall passenger vehicle market in the April to August period. Of these, passenger cars grew by 5.4% and utility vehicles by 9.6%. Comparing June to August with the preceding three months, Karmakar reckons that growth has been around 20%.

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FLEET FOCUS India

Accurate data for the business sector is not available, but LeasePlan estimates the business car parc at around 800,000 in total, while in the last financial year, around 200,000 cars were bought by corporates. Maruti Suzuki dominates market Maruti Suzuki is the largest manufacturer in the Indian car market with over 42% total market share. According to LeasePlan, the company reported a 49.24% market share in January 2014. Some 98,304 Maruti Suzuki models were sold in August, according to Suvajit Karmakar at ALD. LeasePlan gives a market share of 21.44% for second placed Hyundai, 6.56% for Honda and 6.18% for Tata. Karmakar reckons August sales of 33,000 for Hyundai, and 16,800 for Honda. He puts Indian manufacturer Mahindra & Mahindra next in August with sales of around 14,000, followed by Toyota with around 11,200 sales, then Tata with around 10,900 sales. Business vehicles – huge growth potential “Sectors like agri, manufacturing, chemical and machine tools predominantly use vehicles as Tool of Trade. Mahindra & Mahindra’s Boleros, Maruti Suzuki’s Swift and TATA Motors’ Indica are the preferred models for this application. These are sturdy vehicles and are well suited for rural and semi urban applications,” says Karmakar. “Mahindra Bolero Pickup, Force Traveller, TATA Ace, Maruti Ecco and Maruti Omni Cargo are common business vehicles used as cash vans, project vehicles, material transfer, etc. These are registered as commercial vehicles and fall under the category of Light Commercial Vehicles. “In the perquisite and bene it segment, the car makes and models vary from luxury brands to mid-sized cars. There is a wide range of cars available in India for the company and the drivers to choose from. Honda City is a popular mid-segment car.” Suvajit Karmakar says that the Tool of Trade sector is very small, with some agri, oil and engineering companies providing such vehicles. He reckons that 99% of companies do not provide their employees with a car. Given the low level of car ownership in India, he says that even today, owning a car is considered a luxury. “There are companies that have started looking at policies over the last couple of years,” says Karmakar, “and they typically tend to provide smaller cars.” This would be something similar in size to a Suzuki Swift or smaller – a supermini or city car. Karmakar also identifies the emergence of salary sacrifice schemes for managerial staff who may be offered a car as part of their remuneration package and the cash element is reduced by the cost of the car lease or equivalent, which reduces income tax liability for the employee. He reckons that this segment is much larger than Tool of Trade. No go for electrics Ecological concerns are not well developed in the Indian car market. LeasePlan says there is only one electric car available,

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from Mahindra, although hybrids such as the Toyota Prius and Camry are available. Karmakar at ALD says that dual fuel petrol/LPG or petrol/CNG models are more popular, particularly in some cities. “All the taxis in Mumbai or Delhi would run on CNG, by regulation,” he says. As in many other countries, CNG is a cheaper road fuel than petrol or diesel. LCVs in decline Karmakar also reckons that the light CV sector is in decline in India, with around 400,000 sales expected in 2013-14. LeasePlan puts the figure higher at around 500,000 and feels that the importance of the sector is being felt with a growing industrial economy. If the Indian economy expands as hoped, growth in this sector seems likely. “The concept of car sharing doesn’t exist in India,” says Suvajit Karmakar, a view supported by LeasePlan, “Employees practice carpooling at individual levels. Currently, the concept of car sharing for fleets is not there in India.” Karmakar believes this is partly due to the poor infrastructure in many Indian cities. Tax reform needed “Taxation is probably the biggest challenge that we face in India,” he says, “It’s very complex. Motor vehicle taxation is more of a state subject (India has 29 states and seven union territories). Each state has a different way of doing things. We have various registration types.” These include private and commercial registrations and where passenger cars are concerned there is a further distinction between chauffeur driven and self-drive rental vehicles. Different coloured number plates distinguish between different types. Then different states apply different tax rates. Privately registered and company registrations are taxed at different rates. When a car is bought, the owner is liable for 15 years road tax immediately and the rate varies from state to state. There are further administrative charges for vehicles used out of state. The new Government has indicated that reform is coming, possibly based on the UK taxation model. Perhaps predictably, business vehicle financing reflects the relatively low vehicle numbers in the country. “Most business vehicles are bought,” says LeasePlan, “Operational leasing is now understood by corporates and some are replacing their existing methods with operational leasing. The concept is being popularised by the global leasing companies as India is seen as a promising market for operational lease.” So what of the future? “India is a very important market for vehicle manufacturers. With nearly two million new car sales every year, India is a high growth market for them. To gain market share and alleviate competition they are actively introducing products to suit Indian buyers,” says LeasePlan. “Businesses are becoming more aware about the operational lease concept and are embracing the idea. We see a steady growth year-on-year in the number of corporates transitioning from buying to leasing.”

IAM REPORT India

Disorganised chaos Advice from the Institute of Advanced Motorists on some unconventional driving in India…

f you’re in India on business, chances are you will be assigned a driver for the time you are there who will have his own vehicle. If not public transport, taxis and other transportation services are plentiful and inexpensive. It would be very unusual to have the need to drive solo in India while on business; in fact many car hire operators don’t even give you the option of hiring a vehicle without a driver. But if you need to drive by yourself, we have some advice to help you get through the experience unscathed. Although you drive on the left in India like the UK and Ireland, sometimes it might feel that in India it’s more for guidance than actually a law! And while lanes are marked, it is commonplace for them

to be ignored and drivers will cut across you with no warning. And not just drivers … pedestrians and animals can and will cross in front of you without looking, or acknowledging you even being there. It’s often said that if you are not accelerating, your foot should be hovering over the brake pedal as you are likely to need it regularly. If you are hiring a car, you should be aware your rental agreement could contain a number of extra charges for items like depreciation on metal and plastic. So you should read your agreement closely, and query anything you don’t understand. Third party claims though are very rare, and they would need a police report accompanying it. Avoid driving late at night as not only are the roads poorly made, they are badly lit. Also, motorcycles, cars and large trucks might not have working lights. Again manoeuvres without notice are common. Add to that, people driving under the influence of alcohol are not uncommon – so do have your wits about you. As a road user in India, you will be sharing the tarmac (or perhaps the gravel) with many other things. You will encounter carts, cycles, rickshaws, three-wheelers, trucks, buses, and of course cows. There are no ‘slow’ lanes as such, so be prepared to brake and stop frequently. Other things that can slow you down on your journey include wedding processions or religious ceremonies, which are many and frequent. Many drivers choose to take unplanned ‘detours’ which includes driving along the sides of unpaved roads – we couldn’t possibly comment on whether you should do the same! If you are heading out of the cities and into smaller towns, it is likely the roads will be very narrow and cannot support two lanes of traffic side by side. If you encounter oncoming traffic, move to the left so you are taking up as little of the road as you can. Hopefully the driver approaching you will do the same. Even on wider roads as you ind in Chennai and other places, be alert for smaller cars driving on your side of the road. This is just a small picture of what you can expect as a driver in India. Whatever your journey is for and wherever your motoring takes you, I’m sure you will bring back a lifetime of memories!

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NAFA International Fleet Academy

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

CHAPTER 6

Uses of a DIM system At an operational and strategic level, transparency is key for decision-making. Therefore, an enhanced DIM (Distributed Information Management) system is essential for international leet operators to provide a complete and comprehensive picture of all aspects of leet operations around the globe, regardless of the number of countries in which the leet is operated.

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Variations by market The continents on which leet operations are based will determine the sophistication and complexity of managing leet data. Within North America, there is generally a rule of single-supply data management, which means all leet data is obtained from a single source. The situation is quite different in Europe, where the market is signi icantly more fragmented and data is supplied by many third party vendors. Other factors in luencing DIM are leet market maturity, setup of supplier networks, funding methodologies available and risk diversi ication. In Europe multi-bidding, or allowing several companies to bid on a single lease, is increasingly common. This sourcing model is based on creating competition between three or four leasing companies per country, which results in lower overall leasing prices. However, this creates complexity in terms of data sources since data is captured by multiple suppliers all across Europe. Finally, adding another layer of complexity to the issue, some regions of the world might not even be capable of delivering the required data in electronic format because their markets have not yet matured to the point where such technology is in place.

DATA INFORMATION MANAGEMENT DIM Systems can help to monitor a number of different values, including:

Central management From an operational perspective, global data consolidation is a time-consuming, laborious and expensive task. Even a relatively simple task, such as the collection of Vehicle Identification Numbers (VINs) in order to claim manufacturer bonuses, becomes increasingly complex the more spread out the fleet is around the globe. As a result of the last economic crisis, the focus of many companies is to optimise the indirect purchase categories related to their leet. As a consequence, leets are becoming more and more centrally managed. This can be either on a regional level (e.g. Europe, North America, Asia Paci ic) or global level. The latter, however, remains a vision for most leets, as a great deal of effort is required to realize a fully established global strategy. As noted, a centrally managed leet requires transparency, which remains a challenge when variables such as account fragmentation in terms of funding formulas, supplier networks, and maturity of markets are taken into account. Consequently, the establishment of a DIM system, which enables leet operators to manage operations data and inancial information on local, regional and global levels, is becoming a necessity.

Supplier Network Suppliers play a key role in any vehicle fleet and are a crucial part of TCO optimisation and in creating transparency. It is necessary to identify the number of suppliers in use and, more importantly, the costs associated with each. Fleet operators will be able to assess their dependency on each supplier and the volumes ordered from them, potentially creating negotiated terms and conditions based on this information, resulting in a decrease in overall expenditure. While regional scaling of purchase volumes with suppliers is a common practice for most major fleet operators, the next step would be to go to a global level where fleet operators will also require full transparency. The last economic crisis clearly showed the need to react quickly on changes in supplier networks. The fact that leasing companies were unable to take on new business, or even vanished completely from the market, indicates that fleet organisations need a risk identification capability to predict this type of emerging problem.

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

Total Cost of Ownership Cost savings derived from established measures become easily identifiable which, in turn, enables international fleet operators to steer their fleet in the desired direction: in line with the budgeted allocations for this spend category. Fleet Inventory Basic information on the number of vehicles within the fleet and to which legal entity, country, etc. they belong, will provide clarity about the entire volume under management. The most or least popular vehicle manufacturers, makes and models should be apparent, identifying visible trends within the fleet. A defined history of the vehicles within a fleet will also be evident and may point to areas for improvement. CO2 profiles and information on engine types are required to identify and analyse fleet sustainability. In terms of repair and collision costs, a DIM allows an organisation to track details such as the number of tires, crashes, and windshield repairs that have occurred by vehicle type on a national and a global basis. In-depth analysis of such data will provide fleet decision-makers with the information required to create best practices.

“A consequence of the last economic crisis is that fleets are becoming more and more centrally managed.”

Next month... We examine the basics of establishing a DIM system.

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PROFILE Infiniti

Onwards & upwards The opening of Infiniti Design London last month heralded the brand’s latest step towards independence from parent company Nissan. This new sense of identity is key to the brand’s growth strategy in Europe, and with Q30 on the horizon, Infiniti has high hopes for the future...

“The USA continues to represent Infiniti’s largest market.” 40 / internationalfleetworld.com

Manufacturer Infiniti Total sales 2013 180,000 Headquarters Hong Kong, China Global market share 0.2% No. of models 8

view

from the top

Steve Oliver, Infiniti’s regional

USA and China lead the way

nfiniti has undergone a series of structural upheavals over the last two years, from the relocation of its head offices from Tokyo to Hong Kong, to a complete overhaul of the model naming strategy. The aim of all these upheavals has been to increase the brand’s global appeal, and Infiniti now exports to a network of over 230 dealers and 15 countries worldwide. Still a relatively low-volume manufacturer compared to other premium brands, Infiniti grew marginally in 2013, thanks largely to its success in the key markets of China and USA. Growth in these territories helped to counteract falling sales in Europe, which is a territory in which Infiniti acknowledges it still has some work to do to establish itself alongside leading premium brands such as BMW, Mercedes and Audi. Infiniti launched into its key European market of the UK in 2009 at the height of the financial crisis, leading to a slower start than the brand would have hoped for. Infiniti recorded only 385 UK sales in 2013 – a downturn over 2012 figures and a disappointing figure for the brand. To the end of August 2014 however, Infiniti recorded a +35% uplift over last year at 377 units, with a predicted endof-calendar year total of over 800 cars, thanks largely to the success of the Q50 and a resurgence of interest in the QX70. According to Steve Oliver, regional director for North Europe, Infiniti is on track to register 10% of its historic vehicle parc in September alone in the UK, such is the rate of change. Infiniti has also engineered a 2.2-litre diesel engine for Q70 and a 2.0-litre petrol turbo engine for the Q50 in a bid to broaden the model’s appeal for the European market. Both engines are sourced from Daimler, with the updated Q70 diesel poised to make its European debut at the Paris Motor Show in October. The USA continues to represent Infiniti’s leading market by a considerable margin, recording 42,924 sales to the end of August 2014. Q50 leads the way as the most popular Infiniti model with US buyers, followed closely by the QX60 Hybrid luxury crossover. Infiniti has a very strong profile in the States and is worth 120,000+ cars a year to the brand, bringing in similar sales to Audi, and creating a benchmark for how Infiniti aspires to perform in other territories. China now represents Infiniti’s second biggest market after the USA, with sales of 14,000 vehicles in the first six months of this year, more than double the figure recorded in June 2013. This figure is expected to soar in November with the launch of the Q50L – a stretched variant of the Q50 designed to appeal to the Chinese auto market. The brand also recorded a sales figure of 1,524 units across the Middle East in the first quarter of 2014 – a substantial rise of 31% compared to the same period last year and a response to the growing popularity of premium sector cars in the region.

INFINITI Global sales, by territory Territory USA Canada Europe China Rest of the world Total

2012 119,877 7,993 2,995 11,109 31,026 173,000

2013 116,455 8,947 2,209 17,108 35,281 180,000

% change -3% +12% -26% +54% +14% +4%

director for North Europe, reveals how the brand plans to increase its sales share in Europe and what the expectations are for upcoming Q30. At the moment Infiniti has a relatively small share in Europe. How do you plan to grow in the region? The key thing for us this year is getting the Q50 irmly established. It provides In initi with a car that is much more competitive, whereas previously cars have originated in America and been brought here. Next year with the Q30, we will have a European and UK-built car which will be available in several different guises, helping us to cover a great deal of the C-sector and deliver something different. So the whole outlook, in terms of the partnership with Daimler which provides us with European diesel engines, is critical to our growth. Can you outline the thinking behind the brand's re-naming strategy? I think for people that have been with In initi for a while the change is a challenge, but for new customers it provides a consistent naming mechanism. Now we have a clear-cut position and it is easier to visualise where cars it into the range. What are the expectations for Q30 in Europe? I think Q30 will be massive for us; we’re envisioning Q50 representing over 40% of our sales, Q30 45%, and the other models will be delivering depth to the product. Our cars have fantastic CO2, great fuel economy and impressive running costs. All of this will Q30 help us to concept really establish ourselves in the UK and European markets.

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PROFILE Infiniti

Where are they made?

Manufacturing plant locations

FIN fleet in numbers

The number of years Infiniti has been trading as of November 2014.

sixty The percentage by which Infiniti’s product range will grow by 2019.

4.0

Seconds the Q50 Eau Rouge concept takes to go from 0-100km/h.

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Nissan Smyrna Vehicle Assembly Plant, Smyrna, Tennessee, USA – Q60 Crossover

Nissan Motor Manufacturing UK, Sunderland, England – Compact Q30 from 2015

Dongfeng Nissan Passenger Vehicle Company, Xiangyang, China – Q50L

Nissan Motor Oppama, Yoksuka-shi, Kanagawa Prefecture, Japan

Nissan Motor Tochigi, Kawachi-gun, Tochigi Prefecture, Japan

Nissan Motor Iwaki, Iwaki-shi, Fukushima Prefecture, Japan

Nissan Motor Yokohama, Yokohama-shi, Kanagawa Prefecture, Japan

6 5 4 7

More to come globally...

s part of a strategy to capture 500,000 units globally by 2020, In initi plans to expand its product portfolio by 60% in the next ive years, along with doubling the number of powertrains. Models like the In initi Q30 Concept and powerful In initi Q50 Eau Rouge offer a preview of the brand’s new direction, and as In initi's global presence continues to expand, so does its manufacturing footprint with China and the United Kingdom joining production sites in the United States and Japan. In addition, leveraging strategic alliances – such as that with Daimler AG – will lead to collaboration on advanced research and development of key technologies and engines. The 2015 In initi Q70 line-up expands with the arrival of new Q70L – a longwheelbase version of In initi's lagship sedan with additional 5.6 inches rear seat legroom. The new Q70L comes to market in late 2014, and is expected to perform particularly well in the Asian markets. There is a palpable sense of excitement around the Q30 concept, with Steve Oliver, regional director for In initi North Europe, predicting that the Q30 could have the same impact for brand as the Qashqai had for Nissan. Combining coupe, hatch and crossover design features, the Q30 previews the brand’s entry into the compact premium segment, and is designed to appeal to younger customers seeking an alternative to traditional premium C-segment options such as the A3 and 1 Series. The new model will be underpinned by the Mercedes MFA platform used for the A-Class and B-Class, with powertrains also being sourced from Mercedes, and will be produced in Sunderland in the UK from 2015. In initi has also released a teaser image of its new Q80 Inspiration concept, which makes its debut at this year’s Paris Motor Show. The four-passenger fastback concept, said to foreshadow an audacious top-of-the-line model, has been designed for a “low-slung, ingeniously aggressive” look and is intended to “demonstrate to the premium world just how In initi aims to play its part.” Unveiled at the Detroit Motor Show this year, the Q50 Eau Rouge concept provides the brand with a igurehead super saloon. The high-performance design concept is based on In initi’s Q50 premium sports saloon and draws inspiration for aerodynamic design from the technical collaboration between In initi and fourtime Formula One World Champions In initi Red Bull Racing. The model is not expected to enter production, functioning instead as a demonstration of the brand's engineering prowess.

INFINITI fleet model range

Q40

Q50

Variants: 4dr saloon Markets: North America, South America. Fuel: 10.5-11.5l/100km CO2: 216-246g/km

Variants: 4dr saloon Markets: Africa, North America, Asia, Europe, Oceania. Fuel: 4.4-6.8l/100km CO2: 114-159g/km

Q60

Q70

Variants: Coupe, Convertible Markets: Africa, North America, South America, Asia, Europe, Oceania. Fuel: 10.5-11.4l/100km CO2: 246-264g/km

Variants: : LWB/SWB 4dr saloon Markets: Africa, North America, South America, Asia, Europe, Oceania. Fuel: 6.9-10.2l/100km CO2: 159-235g/km

QX50

QX60

Variants: Crossover Markets: Africa, North America, South America, Asia, Europe. Fuel: 8.5-11.3l/100km CO2: 224-265g/km

Variants: : Crossover Markets: North America, South America, Asia, Europe. Fuel: 8.5-10.7l/100km CO2: 197-248g/km

QX70

QX80

Variants: Large SUV Markets: Africa, North America, South America, Asia, Europe, Oceania. Fuel: 8.6-13.1l/100km CO2: 225-307g/km

Variants: : Large SUV Markets: North America, South America, Asia, Europe. Fuel: 14.5l/100km CO2: 336g/km

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Volkswagen Golf Sportsvan VW gains a more distinct compact MPV in the Golf Sportsvan. Winner or loser, asks John Kendall? SECTOR Compact MPV PRICE €17,800–€25,540 FUEL 3.9–5.1l/100km CO2 95 –130g/km

tretching dimensions seemed to work for the origiseat can also fold forward stretching the load space to nal compact MPV, the Renault Megane Scenic, back 2,484mm long on the passenger side. So it can be a pracin the early 1990s. It was 2005 before the Golf Plus tical load carrier – useful for a number of business users, came along, using much the same idea, but somehow the or comfortable passenger carrier, as needed. stretched proportions did not look so comfortable. It doesn’t have the individual rear seats of the Touran, Revealed at the Geneva Show earlier this year, its succesbut a 60/40-split station wagon-style bench seat. To be sor, the Sportsvan, or SV in some markets, looks more specific, the seat is split 40/20/40, giving it more of a purposeful and the more angular lines give it a greater spacious four-seat bias, which seems an odd choice in a family resemblance with the five/seven seat Touran. sector where five-seats are the usual selling point. PerNot surprisingly, the Sportsvan is based on Volkswahaps this has more to do with a perceived market sepagen’s MQB architecture. At 4,338mm long, it is 134mm ration from the five-seven seat Touran. longer than the Golf Plus and 83mm The engine range brings no surlonger than the current Golf, while prises, as all are available across being 224mm shorter than the Golf the Volkswagen Group model range, estate. Compared with the current from 1.2-litre and 1.4-litre TSI petrol Golf, the wheelbase is 48mm longer, to 1.6-litre and 2.0-litre TDI diesel. helping to provide more interior space. 1.2-litre TSI comes with 85hp or Maintaining the comparison with the 110hp, while 1.4-litre means 125hp or Golf, the Sportsvan is 81mm wider at 150hp. 1.6-litre TDI comes with the 1,807mm and 126mm higher, at expected 90hp or 110hp, with 110hp 1,578mm without roof rails. BlueMotion, plus 2.0-litre TDI 150hp. To take advantage of the longer Volkswagen’s excellent DSG automated wheelbase, the rear seat can slide back twin-clutch gearbox is available with and forth through 180mm, providing seven-speeds and all engines except either more rear seat legroom or more the BlueMotion TDI. luggage space as needed. Compared The 1.6-litre TDI is likely to be the Golf driving characwith the Golf Plus, there is 76 litres popular choice, either with 95g/km teristics and family more boot space at 500 litres with the CO2 from the BlueMotion or 101g/km resemblance will from either 90hp or 110hp variants. rear seat set back as far as it will go. The car drives in the fuss-free way we This compares with 380 litres for the appeal to customers, would expect from a Golf variant and Golf and 605 litres for the estate. With but is there too much with the comfort of low noise and a the rear seats set as far forward as poscrossover with spacious interior. It offers the higher sible, luggage space is increased to 590 the Touran? driving position of an MPV too and that litres and there’s up to 1,520 with the will also be appealing to some drivers. rear seats folded. The front passenger

what we think

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Jeep Renegade Can the new European small Jeep be the brand’s fleet game changer, asks Hugh Hunston? SECTOR Small SUV crossover PRICE €16,000–€25,600 FUEL 5.1–6.9l/100km CO2 120–155g/km

with an eye on a fairly high percentage of user-chooser buyuilt in Fiat’s Italian Melfi factory, with co-operative, ers there is a wide variety of customising features available trans-Atlantic engineering and design input, Jeep’s from US Army star decals to a Jeep-branded attachable tent. new compact Renegade is a significant contender in Although two-wheel drive should dominate Renegade the expanding global small SUV-crossover sector. fleet sales in most markets, Jeep pointed out that its torqueWith a technical platform that shares basic elements with sensing 4x4 system incorporates the option for drivers to Fiat’s 500L and upcoming 500X, the Renegade is the first disconnect the rear-wheel drive element resulting in a limmodern Jeep to be made in Europe and has the pioneering ited impact on fuel consumption and exhaust emissions. potential to gain significant international fleet business. As with Land Rover and Range Rover the potential capaThe distinctively styled newcomer, drawing some detailed bility of all-wheel drive remains central to Jeep’s marketinspiration from the original 1941 US Army Willys Jeep, ing strategy setting it aside from most rivals with the claim uses a five-door unitary construction and according to Fiat that they can carry virtually anything, Auto Group was designed in Detroit, virtually anywhere. Michigan, and crafted in Turin and Melfi. The Renegade feels significantly Jeep’s American chassis engineers roomier and sturdier than some Eurodemanded that the Renegade’s interprepean and Korean rivals and sits between tation of the basic Fiat architecture Nissan’s Juke and Qashqai, with impresequipped the SUV with genuinely robust sive rear passenger space and headroom 4x4, off-road capabilities. Even if Enrico plus a maximum of nearly 1,300 litres of Atanasio, FGA’s head of fleet for Europe, luggage compartment space. the Middle East and Africa, admitted that New market territory for Jeep the majority of CO2-conscious, corporate involves higher-grade interiors, while customers will buy the front-wheel drive design details can be customised to a 1.4-litre, 140hp, six-speed manual petrol high degree. On the road the frontand 140/170hp 2.0-litre Multijet, ninewheel-drive 140hp, six-speed manual, speed automatic versions. 1.4-litre turbo petrol model was fairly To set it apart from what Jeep claimed Jeep scales up fleet refined and agile. But as with the 2.0are compromised smaller European SUVs, ambitions by scaling litre turbo diesel 4x4 counterpart (with like the two-wheel drive only Peugeot down with the smaller the same power output) ride quality was 2008 and Renault Captur, Jeep’s Renegade compromised although the diesel’s nineslots between Nissan’s Juke and Qashqai, SUV Renegade and speed automatic made highway sections whose all-wheel drive sales are marginal. widening the iconic relaxed and economical courtesy of high Jeep considers the MINI Countryman and US brand’s footprint ratio low engine revs. Jeep is working on Skoda’s Yeti as more direct opposition. in the process. reducing the two-wheel drive petrol The Renegade’s upright styling has survariant’s 120g/km CO level. prisingly good aerodynamic efficiency and

what we think

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Ford Focus A substantial facelift for the world’s best-seller has made it feel European again, reckons Alex Grant. SECTOR Lower medium PRICE €16,450–€26,960 FUEL 3.8–6.3l/100km CO2 98–146g/km

id-life refreshes don’t come much more imporBeneath the aesthetic updates, the front end is stiffer tant than this. Now sold in 140 global markets, than before, in turn enabling the suspension and steering the Ford Focus is the world’s best-selling car, setup to be re-tuned. Ride quality claims are lofty but realtypically only outsold in Europe by the Fiesta, and over a istic, even on rough roads, yet it corners with the agility of million found homes worldwide last year. a smaller car and responds quickly and naturally to steerBut no car is without faults, and Ford has sought to ing inputs, aided by a new traction control system which rectify a few of the criticisms levelled at the outgoing can anticipate and correct skids. model, the first Focus to really be sold as a World Car. It Diesel engines now follow the Fiesta and B-Max, moving feels like the newcomer has taken its lead from European from the 1.6-litre TDCi engines to new 1.5-litre low-friction customer feedback, which is a good thing. units with 90hp and 120hp. Both emit 98g/km and consume Simplicity is the keyword here. It’s a predictable transition 3.8l/100km, but were unavailable to drive on the launch. to the chrome-barred grille from the Instead, we tested the 150hp 2.0-litre Fiesta and forthcoming Mondeo at the TDCi, now 15% more fuel efficient than its front, while the rear lights which used to 140hp predecessor, and significantly more melt over the bodywork like a Salvadore refined than before thanks to improved Dali clock are now smaller and neater too. noise suppression up front. All diesel But it’s the interior which has changed engines are Euro 6 compliant, and feature the most. The awkwardly large handa maintenance-free NOx trap rather than brake gone, the centre console now feaan additive, to keep a lid on servicing costs. tures clever cupholders with moving The perky 1.0-litre EcoBoost petrol is dividers capable of holding a large water unchanged but will soon enable the Focus bottle, and there’s a consistent use to become the sub-100g/km non-hybrid of satin aluminium accents throughout petrol in this sector. User-choosers with which all helps it feel more upmarket. more of a need for speed will also enjoy Significantly, Ford has also downsized on the new 1.5-litre EcoBoost, again downthe mosaic of buttons that made the old sized against its predecessor, which offers Ford has systematically dashboard so hard to get used to. Aside a wide spread of torque and 182hp, with addressed all of the old from climate control functions and basic CO2 emissions of 127g/km. car’s weakest points, With CAP indicating residual values audio controls, everything has moved to a close to the benchmark Golf, and fairly intuitive eight-inch touch screen, introducing more coherimprovements to the driver assistance which can optionally be equipped with the ent styling, an improved systems likely to shave a little off fleets’ SYNC 2 voice control package. This is a gendriving experience and running costs, the Focus has all the right uine driver aid, capable of recognising fast simpler controls. ingredients to set an example for the rest instructions in a wide variety of accents, of the segment. rather than a frustrating distraction.

what we think

46 / internationalfleetworld.com

Infiniti Q50 2.0t The addition of a turbocharged petrol engine helps the Q50 soar, reckons Alex Grant. SECTOR : Compact Executive PRICE €39,260–€43,790 FUEL 6.3–6.5l/100km CO2 146–151g/km

coarse, last-generation note under heavy acceleration. he third engine option for European versions of By comparison, the 2.0-litre turbocharged petrol is Infiniti’s Q50 compact executive saloon is an interan absolute revelation. It’s another Daimler handesting one. If it wasn’t for carbon-based taxation, me-down, but it feels perfectly tuned to the Q50. It’s this would absolutely be the engine choice to have. muted and doesn’t vibrate through the cabin, and the While it’s early days, Infiniti is a growing brand. It’s only noise under heavy acceleration is a sporty exhaust reaching new markets, entering four new segments growl. The difference it makes to the way this car feels over the next five years and in Europe it’s the Q50 and on the road is immeasurable. the Q30 premium hatch that will do most of the hard The only problem is, Europe is focussed on CO2 emiswork for the brand. sions and that’ll make this a tougher sell than it should Sales expectations are sensible, and the plan isn’t to be. Steer clear of the large wheels and fuel consumption challenge the Germans on sales volume. Instead, Infiniti drops to 6.3l/100km, with CO2 emiswants to set itself aside on styling and sions of 146g/km. Figures that not technology, providing a slightly more so long ago would’ve been perfectly avant-garde option for the company acceptable from a diesel engine. car driver. Unlike the diesel, the 2.0t doesn’t get This is a great looking car, no matter a manual gearbox. But the automatic which trim level you opt into, and aesis a good one, operated by paddles thetically at least it shouldn’t have any behind the steering wheel to hint at issues finding a spot on European sportier road manners. It’s quick and choice lists. The cabin is stylish and finsmooth in its shifts, and feels eager to ished in high quality materials, there’s get into seventh gear on the motorway plentiful rear legroom and the tabletto stretch economy. With plentiful style InTouch dashboard controls are torque, the Q50 feels sprightly even surprisingly intuitive. without dipping down a cog or two. The problem is, that quality of fit and Given the choice, this is absolutely the finish is being sullied by the likely Stylish, well-finished engine to go for. It lacks the pace, but also corporate choice in most of Western and rich in innovative the cost, weight and complexity of the Europe. Infiniti is using a Daimlertechnology, the Q50 has hybrid, and doesn’t demolish the overall sourced 2.2-litre diesel in the Q50, and aesthetics of the car with a grumbly and while it’s competitive on performance plenty going for it. Includoutdated-feeling diesel engine. But and CO2 emissions, which are down to ing, now, an attractive Inﬁniti reckons it’ll reach a retail-heavy an impressive 114g/km, it feels like a petrol option for drivers 10% of Q50 sales, and until taxation much older engine than the best in its with low average mileage. changes in Europe it’s likely to remain a class. Push the start button and it’ll very capable underdog in the line-up. vibrate through the cabin, giving a

what we think

internationalfleetworld.com / 47

MANAGEMENT Global Fleet Forum

global connecting the international fleet community

Join the Are foreign cars increasingly being seen as a cash cow? Natalie Middleton, Business Editor, International Fleet World

Global Fleet Forum is International Fleet World’s new international network and digital forum, launched in March 2014. At the heart of the Global Fleet Forum is a team of fleet professionals who play a key role in the industry, either as fleet managers, consultants or fleet suppliers. These fleet experts provide a regular feed of information that is posted on the website forum in the form of discussion topics. Typical areas of interest include, but are not limited to: taxation, finance and accounting, legislation, environmental issues, fleet safety, insurance, fleet management, supply issues and security. Fleet suppliers are permitted to respond to queries if it is felt that their response represents honest and impartial advice. This aspect of the service is strictly moderated in order to ensure that the quality of information provided remains of the highest standard. We have already attracted a strong network of international fleet professionals, and our expert contributors have submitted a number of thought provoking discussion topics, a few of which are previewed to the right. We hope you will consider joining us in this exciting new venture into the world of fleet. To find out more about the Global Fleet Forum and request membership, please visit:

theglobalfleetforum.com

48 / internationalfleetworld.com

Two recent announcements have left me wondering if European nations are increasingly regarding foreign drivers as an untapped cash cow. First came news that the German government plans to implement a toll system for foreign drivers on the country’s autobahns, a decision that has been heavily criticised by the VDIK German auto importers’ association. Federal Transport Minister Alexander Dobrindt has said the tolls could be used to help maintain the country's infrastructure, bolstering Germany's economy by up to €2.5bn over the next four years. In response, the VDIK has said the proposed toll is “bureaucratic and unfair, and it does not even ensure that the comparatively low revenue will indeed be earmarked and used exclusively to maintain the federal highways and their bridges.” If the tolls are passed, they will be introduced next year but there could be a stumbling block in the form of Brussels, as foreigners-only fees potentially contravene European Union non-discrimination law, although Mr Dobrindt insists this is not the case. Although most of Germany’s neighbours, including France, Austria, Switzerland, Poland and the Czech Republic, already use toll systems for private cars, these don't distinguish between foreigners and nationals, making the German proposals sound like a planning minefield, let alone a potential issue for European fleets to have to consider. I would think the cost of implementation, the hassle of administration, and the increase in traffic on non-motorway routes that this would cause would be catastrophic for the German government. Given the much greater size of the German autobahn network compared with UK motorways, and the massive number of foreign truck using it, I think the pressure on non-motorway roads would be immense. There would be an increase in congestion, noise, emissions and road traffic accidents. Meanwhile, the UK’s RAC breakdown organisation has

debate...

in association with

Meet the experts... Martin Keighley, Director, KIS Autodata

called on the UK government to crack down on untaxed foreign cars amidst concerns that millions of pounds that could be invested in the roads is going uncollected. RAC head of external affairs, Pete Williams, said: “Other countries in Europe have got to grips with this. Norway, for instance, has a system for tracking foreign cars and billing them for using toll roads. In the interests of ensuring all vehicles on Britain’s roads are roadworthy, fully taxed and insured, it really is high time the UK followed suit.   “We understand that DVLA, the UK Border Force and the police are looking at how data can be used to identify foreign-registered vehicles that have been in the UK for longer than six months, so we urge the Government to make finding an effective solution a high priority.” At least if it’s a tax on foreign cars, rather than toll roads for foreign drivers, there should be less complaints about having to pay to drive on the UK’s shambolic roads anyway…

A Global Fleet Forum member replied… I think it's going to upset border-crossers, but for what you get it's actually very cheap. Initial plans indicate a year-long autobahn pass will cost €100, while ten-day access will cost €10. That's not a huge charge to use some of the best high speed roads in Europe, as far as I'm concerned. Particularly when you compare it to the Severn Bridge into Wales (€8 per crossing, for a five kilometre crossing) or M6 Toll north of Birmingham (€7 for 43km of near-empty motorway). Remember that this charge covers a drive from Munich to Hamburg, or Cologne to Berlin - it's nationwide rather than a short stretch. Yes it's an incremental cost for those who are used to using it for free, but if it's as essential as border-crossers say it is, then it's a small price to pay. Having covered long distances through Germany, the autobahn is a very convenient and well-managed way to travel. Considered relative to the price of a service station lunch for one-off visits, or 27 cents per day for a year-long pass, it's really good value.

Martin is a director of KIS Autodata, wepricecars.com and DrivenData. He has been in the valuation game for 35 years and created CAP Monitor in 1990 which became, and remains, an industry standard for leasing and finance companies. A regular commentator for the industry, Martin is an expert in vehicle life-cycle analysis and aims to revolutionise the way we maintain and understand all vehicle data.

David Brennan, Chief Executive, Nexus Vehicle Management David joined leading rental provider, Nexus Vehicle Management in May 2014, following eight years as managing director at Leaseplan. David has a formidable track record in the fleet and automotive industry, previously holding several positions at Rover Group, Mazda UK, AT Kearney and Capita PLC. In his time at LeasePlan, David oversaw substantial growth, leading the company to the number two position in terms of UK market share.

Dennis Dugen, Car Fleet & Employee Benefits Manager, WSP Dennis has worked at WSP, a professional consultancy, for the past 14 years. He was originally involved with building up the company fleet to over 650 cars, but is currently operating a salary sacrifice scheme. Dennis was previously fleet manager at leading international accountancy firm KPMG. During this time, he was responsible for regional fleets and offered fleet management consultancy to many of the company’s clients.

internationalfleetworld.com / 49

fleet in figures

Strong global sales, but is it slowing? Strong markets in Western Europe, North America and China could be masking growing market problems in other parts of the world. John Kendall reports.

Volkswagen Golf Volkswagen is maintaining its dominance in model sales, with the Golf at the top of the best sellers list in Europe.

European CV market European commercial vehicle registration data for the first half of 2014 from the European Automobile Manufacturers Association (ACEA) shows no great surprises. 2014 was not expected to be a good year for heavy truck registrations following the introduction of Euro 6 emissions limits at the beginning of the year, bringing a sharp increases in truck prices because of the additional cost of exhaust aftertreatment. But the impact on registrations has not been as great as some had feared. H1 data shows that overall, European registrations for commercial vehicles

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over 3,500kg gross vehicle weight (GVW) reached 135,358, an increase of 1.6% compared with H1 2013. Isolating the data for heavy trucks shows that the sector has performed well with registrations up 5.7% to 105,405. As we have indicated before, diﬀerent means of applying the derogation permitting the continued registration of Euro 5 compliant vehicles after the Euro 6 deadline had inﬂuenced the behaviour in certain markets. The German heavy truck market, for instance increased by 19.4% in H1 to 30,420, whereas another of the top 5 markets, the UK, decreased by -26.5% to 9,802. The other big player in the truck market is

France and here, the -6.7% decrease in H1 registrations may also reﬂect the country’s continuing economic problems. Looking at the total picture for all commercial vehicle registrations, EU H1 data shows that overall; registrations grew by 9.3% to 912,722. Only Belgium, Finland and the Netherlands recorded decreases, but all in single digit percentages. The light CV sector below 3,500kg GVW continued to perform well. H1 registrations overall grew by 10.9% to 761,521 compared with H1 2013. Belgium was the only EU member state to record a decline, with H1 registrations down -4.4% to 30,102.

France maintained its position as the biggest market for light CVs with an H1 increase of 1.5% to 189,856 compared with 2013. The UK registered the second greatest number of LCVs with 155,532, a 16.8% increase compared with 2013. Germany took the third place with 106,797 registrations, up 7.3% compared with 2013. Portugal posted the largest percentage increase, with registrations up 60.4% to 11,934, while Spain, also badly affected by the European financial crisis registered a 39% increase in registrations to 40,689.

Passenger cars Meanwhile, the European new car market has racked up 12 continuous months of sales growth, according to JATO. Registrations in January – August were up 6.0% to 8,336,159 compared with the same period in 2013. Only Austria, Belgium and the Netherlands registered a decrease in registrations. Portugal registered the largest percentage gain, echoing its performance in the light CV sector during the period. Germany is the biggest market with 2,021,609 registrations during the irst eight months, although August registrations actually declined by 0.4%. As JATO points out, mid-sized markets such as Greece, Ireland and Portugal made signi icant double-digit percentage gains. Continuing government incentives in Spain are helping to support the market there. August registrations in Spain rose 13.7% compared with August 2013, while overall, registrations in Spain are up 16.4% to 583,663 in the irst eight months of the year. Volkswagen maintains its signi icant lead with 1,029,148 registrations in the January to August period, a 4.3% increase over 2013. Volkswagen remains the only brand to have posted over 1.0m registrations to date in 2014. Volkswagen is almost 400,000 registrations ahead of second placed Ford, which has registered 621,322 cars in 2014, a 7.3% increase. Opel/Vauxhall has registered 579,422 cars in the period, an 8.6% increase. Jeep posted the largest percentage increase in the period with registrations up 44.6% to 19,762, ahead of the Jeep Renegade launch. Dacia is also continuing to

Top 10 Brands Make & Model

Aug ’14

Aug ‘13

% change Aug

Aug YtD ‘14

Aug YtD ‘13

% change YtD

Volkswagen

98,330

86,024

+14.3%

1,064,521

1,026,184

+3.7%

50,181

43,857

+14.4%

644,056

610,260

+5.5%

Opel/Vauxhall

45,320

42,024

+7.8%

591,110

545,982

+8.3%

Renault

41,780

44,035

-5.1%

578,667

520,611

+11.2%

Ford

Audi

40,774

44,188

-7.7%

488,505

467,938

+4.4%

Peugeot

38,970

37,664

+3.5%

525,266

495,598

+6.0%

Mercedes-Benz

38,500

39,265

-1.9%

428,824

414,669

+3.4%

BMW

38,494

39,122

-1.6%

437,321

416,184

+5.1%

Skoda

36,530

30,059

+21.5%

388,115

324,360

+19.7%

Citroën

29,385

29,026

+1.2%

413,824

406,945

+1.7%

Source - JATO

increase registrations, posting a 30.2% uplift to 247,942, but it is Skoda that posted the largest numerical increase, up 21% to 372,504 from 307,855 in the same period in 2013. As JATO’s top brands data shows, all manufacturers listed are registering an increase in year-to-date registrations with Renault continuing its strong showing. Volkswagen is maintaining its dominance in model sales too, with the Golf Mk7 at the top of the best sellers list while the Polo and Passat have cemented the company’s grip on the market. The Skoda Octavia is clearly responsible for a large part of Skoda’s sales success this year. Brian Walters, vice president of data at JATO Dynamics, commented: “Although August is traditionally a slower month, this did not prevent brands like Volkswagen, Ford and Skoda from continuing to grow their sales and market share. With many of the recently-introduced models performing well and a signi icant number of product announcements in the pipeline for the autumn, the market looks set to end the year in similarly good health.”

Global outlook LMC Automotive comments that although sales continued to increase globally in August, the year on-year gain of 1% was the weakest in over a year. The selling rate has cooled since Q1, says LMCA. While gains are evident

in Western Europe, the US and China, Eastern Europe and South America are having a more difficult time. Scotiabank says that US passenger vehicle sales climbed to an annualised selling rate of 17.4m units, the highest level since January 2006. Chrysler posted the sharpest rise in the month with a 20% gain in year-on-year sales, due in part to the launch of the new Jeep Cherokee Meanwhile car and light truck sales were 8% up on August 2013 in Canada. Light truck sales saw the biggest increase with a 14% year on year rise. LMCA suggests that the annualised selling rate in China has levelled out at around 23 million units since Q4 2013. While the selling rate of passenger vehicles has continued to rise, the selling rate for light CVs has been falling since summer 2013. Expected sales restrictions in China’s big cities have helped to drive huge increases in H1 in China with passenger vehicle registrations in Nanjing and Shenzhen up by over 60% in H1 2014. Brazil has not shown the expected rebound in sales following the World Cup in the summer. LMCA reports that the selling rate has dropped by nearly 10% to 2.8m units per year in August. LMCA includes credit restrictions, a slowing job market and an uncertain economic outlook as factors affecting the Brazilian market.

internationalfleetworld.com / 51

A STRIKING ACQUISITION

The new NX hybrid crossover. Striking design meets innovative technology. Discover more at lexus.eu/NX

The new NX