THE NEW BENCHMARK
Opel’s compact- class masterpiece.
The new Astra. Fuel consumption combined 5.5–3.4 l/100 km; CO2 emissions combined 128–90 g/km (according to R (EC) No. 715/2010).
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THE NEW BENCHMARK
contents
Opel’s compact- class masterpiece.
The new Astra. Fuel consumption combined 5.5–3.4 l/100 km; CO2 emissions combined 128–90 g/km (according to R (EC) No. 715/2010).
Publisher Jerry Ramsdale jerry@fleetworldgroup.co.uk
16 MINI Clubman under the spotlight.
26 Michael Cole, COO of Kia in Europe.
40 Fiat’s 500-led fleet portfolio.
46 Behind the wheel of the new Tucson.
Editor John Kendall john@fleetworldgroup.co.uk Deputy Editor Alex Grant alex@fleetworldgroup.co.uk Business Editor Natalie Middleton natalie@fleetworldgroup.co.uk Features Editor Katie Beck katie@fleetworldgroup.co.uk Fleet Consultant Ross Durkin ross@fleetworldgroup.co.uk Sales Director Anne Dopson anne@fleetworldgroup.co.uk Sales Executives Darren Brett darren@fleetworldgroup.co.uk Claire Warman claire@fleetworldgroup.co.uk Circulation Tracy Howell tracy@fleetworldgroup.co.uk Dawn Mitchell dawn@fleetworldgroup.co.uk
04 Fleet Review John Kendall discusses Euro 6, Frankfurt IAA and the US of A.... 06 Inside Knowledge LMC Automotive on the state of the Chinese car market. 08 News The biggest stories from a month in the international fleet world. 16 Spotlight MINI’s impressive new Clubman comes under IFW’s spotlight.
Head of Production Luke Wikner luke@fleetworldgroup.co.uk
18 Strategy Detroit Electric: what has happened to the reborn EV carmaker?
Designers Tina Ries tina@fleetworldgroup.co.uk
20 Strategy Saudi Arabia looks to Europe for crash repair expertise.
Samantha King sam@fleetworldgroup.co.uk
22 Feature How fleet management apps can helps fleet avoid future problems. 26 Interview Michael Cole of Kia Motors Europe on its fleet strategy.
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
30 RVs Dramatic pricing shifts in the Italian leasing sector in the last two years. 32 Insurance Update on the latest insurance legislation changes. 34 Fleet Focus USA: How the fleet market across the pond compares to Europe. 38 International Fleet Academy The legal obligations of cross-border contracts. 40 Profile How Fiat is trading on the incredible success of the 500 family.
STAG Publications
44 Launch Report Kia cee’d / Hyundai Tucson / Volkswagen Caddy / Ford Focus ST. ®
To subscribe to Interational Fleet World visit: www.fleetworldsubscriptions.co.uk
50 Fleet in Figures Breaking down the latest global vehicle sales by region.
internationalfleetworld.com / 03
fleet review
This month, editor John Kendall on how things work in fleet across the pond, the arrival of Euro 6 emissions and EU insurance changes.
6 appeal The big difference is the reduction in emissions of oxides of nitrogen (NOx) from diesels.
Euro 6
US Fleet
Europe embraced the Euro-6 emissions regulations from 1 September. The latest legislation brings the toughest exhaust emissions limits into force across the EU member states. The big difference is the reduction in emissions of oxides of nitrogen (NOx) from diesels, which have been reduced by 44% by the legislation, bringing the limits for petrol and diesel engines to almost identical levels. For fleet operators this means that all diesels must be fitted with exhaust after-treatment and for more cars, this will mean that drivers will have to top up with the AdBlue additive that is used to treat NOx in the exhaust. Drivers who ignore the warning lights warning that AdBlue levels are low will find out soon enough that this is not an option. If the tank runs dry the engine will not restart. AdBlue will be widely available though, from fuel stations, dealers and other outlets.
We are seeing more crossover in car design between the big global markets than ever before as globalisation makes it less attractive to produce individual models for different parts of the world. So it is becoming rarer to find places where there are notable differences. One area is fleet operations in North America and Europe. The models are quite different and many a company car driver might be surprised to find out how the system works in the US compared with Europe. Turn to p34 for the full story.
Insurance mediation No sooner had we published a detailed feature on the European Insurance Mediation Directive by John Mitchell of Leaseurope in our August issue, than the EU produced its final agreed text on the matter and decided to change its name to the Insurance Distribution Directive. John has helpfully produced a follow-up feature to show how things have progressed and what is now likely to happen next. You can find his feature on p32.
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Frankfurt Show
I’m writing this from the IAA Frankfurt Motor Show and, as ever, Europe’s biggest motor show is packed with new cars. As I suggested last month, just about every major motor manufacturer has unveiled a new car or derivative and there are also new technologies from many suppliers that should make fleet operators’ lives easier. The European Automobile Manufacturers Association (ACEA) are suggesting how intelligent traffic systems should help road users here at the show. We shall bring you the latest news from the show online and in our next issue.
visit internationalfleetworld.com
inside knowledge
Understanding the
Chinese market LMC Automotive analyses the current situation in China’s car market and looks at what the future has in store.
“
During the first half of 2014, registrations of largely to the twin forces of a ‘payback’ from the passenger vehicles in China’s tier-1 and 2 cities buying frenzy, which took place during H2 2013 and grew by 15% on the previous year, and contributed H1 2014, and the ‘holdback’ resulting from the current around 40% to the total growth seen across the counvolatility in the stock market. try. Conversely, during the same period this year, “This dual dynamic triggered a spike in sales during growth in tier-2 cities amounted to a mere 3% yearH1 2014 in a number of tier-2 cities, followed by a levelon-year (YoY), while tier-1 cities experienced an ling off in the second half of last year and, in recent annual decline of 21% in registrations, which, months, by a downward dip. Looking ahead, we together, acted as a drag on overall market growth. In believe that most of the pent-up sales will be revived sharp contrast, when looking at tier-3, 4 and 5 cities, during Q4 2015 and Q1 2016 and, with a comparathe pattern is decidedly more consistent, with YoY tively lower base in YoY terms, tier-2 cities are likely growth of 18% in H1 2014 and of 15% in H1 2015. to see far stronger growth in 2016. “An accurate analysis of these comparisons is crit“On a more positive note, the lower-tiered cities ical to our understanding of the prevailing market have acted as a pillar supporting overall growth, thus headwinds, which, in turn, helps shape our forecasts. far, in 2015. Going forward, although the economic “The fall in registrations in slowdown poses a risk to growth tier-1 cities during H1 2015 was, momentum, we are of the view “Shenzhen is likely quite simply the result of a drag that double-digit growth is from the city of Shenzhen, entirely possible during the to witness the inevitable which was the last of the tier-1 second half of this year and into rebound in registrations, cities to impose restrictions on next year, given the low vehicle typically seen in the second parc density and inexorable rise vehicle purchases, applicable from this year onwards. This in household income in these year of restrictions.” trend is set to continue into H2 lower-tiered cities. 2015, and is expected to be “Taking all of these factors into followed by mild growth in registrations next year in account, and in spite of the major downward adjustChina’s top-tier cities. Indeed, Shenzhen is likely to ment, for the second consecutive month, to our forewitness the inevitable rebound in registrations, typicast for this year as a whole, our assessment is that the cally seen during the second year of restrictions, Passenger Vehicle market could turn a corner during while China’s other tier-1 cities are projected to expethe final quarter of 2015 to come back on track, and be rience a predominantly flat trend. followed by annual growth of a high single-digit during “However, the situation is more complex in tier-2 the course of 2016. In short, China’s automotive story is cities, where the slowdown in sales can be attributed far from over.”
23rd October 2015 ArenaMK
Register for the show at... vanfleetworldlive.co.uk
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vanfleetworld.co.uk 06 / internationalfleetworld.com
SIMPLY CLEVER
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Combined fuel consumption and CO2 emissions for the Superb model: 4.0–6.2 l/100 km, 100–165 g/km
The New ŠKODA Superb. With attractive TCO. Employees want to travel in style. The CFO wants to travel on a budget. Finally, as Fleet Manager, you can satisfy them both with the new Superb. With class-leading spaciousness and dynamic design this car is stylish yet practical. And with minimum operating costs and low emissions, it could be your most efficient employee ever. Add to it some of the finest safety and connectivity features available today, and this car is an incredible return on your fleet investment. skoda-auto.com
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business news
Fleet Logistics teams up with AlertDriving for risk assessment
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leet Logistics has entered into a strategic part‐ nership with North America‐based AlertDriving to offer a range of online driver training and risk assessment services for fleet operators of all sizes. Fleet Logistics said a key reason for the partner‐ ship was AlertDriving’s global training coverage, having reached more than two million drivers in over 100 languages, and following recommendations from existing users, including fleet customers. Thorsten Bertram, Fleet Logistics’ group director of international customer relations, said: “The new suite of solutions will be available in the coming months and will be customised to meet the needs of fleet decision‐makers in their local markets. It will go a long way to helping companies meet their duty of care requirements.”
New Geotab telematics solution provides real-time verbal feedback for drivers
D
ubbed GO TALK, a new driver awareness tool has been launched by Geotab to transform the way driver training happens behind the wheel by providing real‐time verbal feedback to fleet drivers. GO TALK is an add‐on module for the Geotab GO7 vehicle tracking device that combines GPS tracking, accelerometer and diagnostic data, as well as other manager‐programma‐ ble data incorporating time of day and location zones to relay instant, spoken instruction and safety information directly to fleet drivers. It also passes information back to the fleet management centre on driver behaviour and the effectiveness of responses to the audible coaching. “GO TALK is another big step forward in coaching fleet drivers and improving driving standards,” said Neil Cawse, CEO of Geotab. “The solution has road and driver safety at its heart, but fleet managers will also recognise productivity and fuel savings that GO TALK delivers.”
Alphabet announces new CCO
U
we Hildinger has been named as the new chief commercial officer at Alphabet International, effec‐ tive from 1 September 2015. Mr Hildinger joined Alphabet in 2008 as managing director of its Munich office in Germany. He subse‐ quently worked as head of operations for Alphabet Germany for two years before becoming head of sales and marketing in 2011. Before joining Alphabet he held various positions at LHS where, among other accomplishments, he success‐ fully integrated LHS Sales into Alphabet Germany. His predecessor at Alphabet International, Eric Lelarge, is leaving the company to accept the position of head of business & sales development at BMW Financial Services.
MEPs continue calls for serious road injury target
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he European Parliament has renewed its calls for a pan‐European target to cut serious road injuries, following a rise in serious injuries on EU roads. In a vote last month on a review of European transport policy since 2011, MEPs called for “the swift adoption of a 2020 target of a 40% reduction in the number of people seri‐ ously injured, accompanied by a fully fledged EU strategy”. The calls for a serious road injury target have been welcomed by the European Transport Safety Council (ETSC), which has long argued for the need for a sepa‐ rate pan‐European target to reduce serious road injuries, to complement the targets that have been in place since 2001 to reduce deaths, and says the Euro‐ pean Commission has backtracked on its plans.
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LeasePlan net profit up 21% in H1
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easePlan has reported a 21% rise in net profit to €246m for the first half of 2015, helped by strong growth of the business across all market segments, in particular international and SME. Commenting on the outlook for the second half of 2015, LeasePlan said it “expects the overall positive business momentum as witnessed in the first half of 2015 to be sustained in the remainder of the year. The strength of the recovery of local economies will continue to differ and the associated strong currency movements will endure. However, in view of a resilient second‐hand vehicle market and a strong focus on volume growth, LeasePlan is confident that it will continue to achieve good results over the remaining six months of 2015.”
European congestion rises in 2014
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ongestion increased in over half of European coun‐ tries last year, according to a new report. The data from INRIX shows that of the 13 European countries analysed, more than half (53%) experienced a rise in levels of congestion in 2014 compared to 2013, reflective of steady economic growth. Nations struggling with high unemployment and low or negative economic growth typically recorded lower levels of traffic conges‐ tion compared to 2013. The data shows that Belgium remains Europe’s most congested country, with drivers there spending 51 hours stuck in gridlock in 2014. However, this was down eight hours on 2013.
For the latest news, visit internationalfleetworld.com
Vulog receives €8.4m funding to expand car sharing tech
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ice‐based Vulog, a French SME and European specialist in car sharing technology, has completed a fundraising of €8.4m from Ecotechnologies managed by bpifrance and the British Environmental Technologies Fund. Founded in 2006 by Georges Gallais and David Emsellem, the company had already raised €1.2m in 2013. Its solutions are equipped in over 2,000 vehicles worldwide, including 800 in France. The company has also managed to break into the North American market in recent months, thanks to its ‘free‐floating’ technology, which enables car sharing without a prior reservation or station. “This financing will allow us to continue the R&D and commer‐ cial development internationally with the opening of a subsidiary in 2016 in North America and one in Asia desk,” said Georges Gallais, CEO. “Our goal is to manage a fleet of 3,500 vehi‐ cles in 2016 and to impose a world leader among independent actors in the sector.”
Goodyear research identifies driving personalities
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ew research that reveals seven different types of driving personali‐ ties has been released as the first part of a pan‐European study on the social psychology of road safety. The research has been conducted jointly by the London School of Economics and Political Science (LSE) and tyre manufacturer Goodyear, which say that these ‘driving personalities’ emerge in different situations when drivers interact with others on the road. The personality types were discovered in the first part of the joint research project, which takes a qualitative look into driving behaviour through focus groups and in‐depth interviews and is intended to identify how drivers influence each other’s behaviour on the road. The second part of the project is a pan‐European study across 15 coun‐ tries. The final results and analysis of the study are expected this month.
Rising Middle East interest in fleet software
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leet management software company Chevin Fleet Solutions has reported that it has had several approaches this year from organisa‐ tions in the Middle East looking to potentially adopt its products. Managing director Ashley Sowerby said: “What we are starting to see is interest from fleets in several Middle Eastern countries. Our Enterprise‐ level fleet management software, FleetWave, is a multilingual system avail‐ able in most major international languages including Arabic, so we are well prepared to implement systems there. “These fleets want to gain a new level of efficiency in key areas such as cost control and service standards, and this is something that we are able to demonstrate they will achieve through working with us. “We have been through several rounds of meetings with some of the organisations involved and it is likely that we will start to sign our first deals later this year.”
fleetweet a few soundbites from a month in fleet
@darren_moss Darren Moss, content editor for Autocar and Whatcar
Porsche's Mission E is one of my stars of the #IAA2015 - as a statement of intent from Porsche, it's pretty big.
@richardaucock Richard Aucock, motoring journalist
V surprised by punchy look of new VW Tiguan. Extra-smart thing, esp GTE in Golf R blue.
@StvCr Steve Cropley, motoring journalist
NEWS FLASH @autocar: Ford reveals Focus RS has 350hp and 470Nm, sprints 0-62mph in 4.7sec and can do 165mph flat. Price under £29k; beats Golf R
@bobbyllew Robert Llewellyn, presenter and journalist
V exciting news, new @NissanEV_UK Leaf will have a 30kWh battery which means greatly increased range. 150 miles? Hope so.
@MartinW_CAP Martin Ward, manufacturer relationship manager at CAP Automotive
Live from #frankfurtmotorshow – Jaguar F-PACE has just been unveiled. Looks great, and very much a Jaguar throughout
@candctaxis C&C Taxis, family-run taxi firm in the South West
We bought LEAF 3 & 4 2yrs ago today. 1 has passed 100k miles, the other will this week. Both have all battery bars.
@Arval_UK Official Twitter account for Arval UK
16% of SMEs are already using ULEVs, and a further 29% are planning to introduce them. Where do you stand?
internationalfleetworld.com / 09
The most important meeting of 2015. The new CLA Shooting Brake.
A Daimler Brand
Space and design meets less emission. Take a decision for comfort and an intelligent energy management. www.mercedes-benz.com/fleet
Provider: Daimler AG, MercedesstraĂ&#x;e 137, 70327 Stuttgart, Germany
environmental news
Highways England to begin off-road trials of wireless charging lanes for UK motorways ireless charging technology which could supply power to battery packs of electric vehicles while on the highway is about to begin 18-month off-road trials in the UK, Highways England has announced. The trials will examine multiple methods of supplying energy through under-road charging coils, fitted in 50-metre sections on high-speed roads. Each section will charge one car at a time, seamlessly handing over to the next section. The 50-metre length corresponds with recommended stopping distances at motorway speeds. It’s hoped that the technology could enable vehicles to travel long distances without needing to top up en route. The trials follow a feasibility study, commissioned by Highways England and published by the Transport Research Laboratory (TRL), addressing different methods of installing under and over-road electricity supply, including the difficulties of stabilising the surrounding electrical grid as cars pass over the loops. Transport Minister Andrew Jones said: “The potential to recharge low emission vehicles on the move offers exciting possibilities. The government is already committing £500m (€684m) over the next five years to keep Britain at the forefront of this technology, which will help boost jobs and growth in the sector. As this study shows, we continue to explore options on how to improve journeys and make lowemission vehicles accessible to families and businesses.” Highways England chief highways engineer Mike
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Wilson added: “Vehicle technologies are advancing at an ever increasing pace and we’re committed to supporting the growth of ultra-low emissions vehicles on England’s motorways and major A-roads. “The off-road trials of wireless power technology will help to create a more sustainable road network for England and open up new opportunities for businesses that transport goods across the country.” Highways England added that full details of the trials would be publicised when a successful contractor has been appointed. It also said it is also committed in the longer-term to installing plug-in charging points every 20 miles on the motorway network as part of the government’s Road Investment Strategy.
New research reflects positive fleet experiences from electric vehicle use ritish fleet operators running electric vehicles are reporting generally positive experiences, according to a Department for Transport report released in August. In particular, the report refutes the idea that electric vehicles are only getting limited, short-range usage, instead showing regular usage, high mileages and, when being used as a pool car, charging taking place mainly at the workplace. It also reflects strongest take-up among private sector businesses, working in a range of industries, with fewer than 500 employees and running a small to medium-sized fleet. Many organisations appear to have initially bought one or a small number of EVs in order to assess their suitability for more widespread use. Private sector businesses are expected to continue to
B
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represent the bulk of future EV fleet owners but further research is needed into the extent to which an initial EV purchase is leading on to large-scale purchasing; and the potential for more organisations with larger fleets to start buying EVs. The most common motivation for buying an EV are financial and environmental factors (linked to CSR). However, one data source reported that a quarter of organisations “reported that they were not willing to modify their fleet operations to incorporate EVs.” The report said these appear to reflect concerns about range, charging times and, the extent to which EVs are being seen to offer the flexibility necessary to meet the needs of different types of organisations.
For the latest EV news, visit evfleetworld.com
Kia to launch hybrid-only Prius rival next year ia will launch a hybrid-only rival for the Toyota Prius in mid-2016, one of nine new cars due by 2018 as it seeks to build on its already rapidly growing European sales. The newcomer is said to put Kia into a new segment, and it’s likely that this will share technology with Hyundai’s forthcoming hybrid-only model. News agency Reuters reported in August that Hyundai would also offer a dedicated hybrid product, and disguised prototypes have been spotted during on-road testing. It’s part of an ongoing product offensive by 2018, beginning with the new Sportage and Optima this year. Kia has already confirmed that the Optima will be offered as an estate for the first time, previewed by the Sportspace concept shown at this year’s Geneva Motor Show, as well as a plug-in hybrid drivetrain – the latter possibly based on the Hyundai Sonata’s petrol-electric system.
K
UK Plug-in Car Grant extended he UK Government has extended the Plug-in Car Grant until at least February 2016, with a longer-term plan to be announced after the November Spending Review. Intended to boost electric vehicle take-up, the grant offers up to £5,000 (€6,820) off the price of an electric or sub-75g/km plug-in hybrid. Grant levels were originally to be reviewed once 50,000 vehicles had been sold – a milestone expected to be reached in November. The extension gives the Government time to develop a long-term plan following the Spending Review in November. Transport Minister, Andrew Jones MP said: “I’m pleased to announce today that the Government is maintaining the current levels of grant, even as we move past the milestone of 50,000 vehicles. “The UK is now the fastest growing market for electric vehicles in Europe. We will continue to invest to help make this technology affordable to everyone and to secure the UK’s position as a global leader.”
T
EV 400 in numbers
BMW i3s on the new public transport-integrated DriveNow car sharing fleet, for Arriva in Copenhagen.
Source: BMW Denmark
in brief Scottish fleets offered interest-free ULEV loans The Scottish Government has made £2.5m (€3.4m) in funding available to offer interest-free loans of up to £100,000 (€137,000) for businesses to buy electric and plug-in hybrid vehicles. Managed by the Energy Saving Trust, it is available until 31 March 2016 and provided in addition to central government purchase grants.
UPS boosts global hybrid and plug-in delivery fleet UPS has purchased out a fleet of 125 hybrid delivery trucks, which will be rolled out across six U.S. states in the first half of 2016. The newcomers follow the start of a 12-month on-road trial in the UK for a range-extended electric delivery truck, with a system which only uses its diesel engine when outside urban areas.
Tesla hints at Model X pricing The Tesla Model X electric SUV will be priced at around $5,000 (€4,431) more than the equivalent Model S in – indicating pricing of $80,000 (€70,928) to $110,000 (€97,487) in the United States. The Californian carmaker is planning to introduce the compact executive Model 3 next March, targeting a $35,000 (€31,020) entry price. European pricing is likely to be higher.
EVtweet of the month @elonmusk Model 3, our smaller and lower cost sedan will start production in about 2 years. Fully operational Gigafactory needed.
250
Range in kilometres for the Nissan LEAF’s new highercapacity battery pack.
Source: Nissan Europe
internationalfleetworld.com / 13
manufacturer news
New Skoda Superb GreenLine to offer 3.7l/100km & 95g/km
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he new Skoda Superb GreenLine will be the “cleanest and most efficient Superb”, the carmaker has revealed. On sale from late 2015 in both estate and hatch bodystyles, the latest addition to the Superb range brings a predicted fuel consumption of 3.7l/100 km and CO2 emissions of 95g/km for the hatchback version The new model is powered by a 120hp 1.6‐litre four‐cylinder diesel engine that as with all other Superb models is equipped with start‐stop ignition and brake energy recovery as standard. In addition, both Superb GreenLine models feature longer gear ratios, SCR (Selective Catalytic Reduction) and 16‐inch reduced rolling resistance tyres. The GreenLine version is offered with equipment versions ‘Active’, ‘Ambition’ and ‘Style’.
in brief Diesel cars exceeding limits Only one in 10 diesel cars meets the legal limits for the new Euro 6 stan‐ dard, according to research. Carried out by environmental NGO T&E for a new report, the study found that on average new EU diesel cars produce emissions about five times higher than the allowed limit, whilst the worst car was found to emit 22 times the limit.
Ford eco research The Ford Motor Company is co‐ funding a three‐year project that will test the potential of two chem‐ icals as alternative green fuels: DME (used as a propellant in aerosol spray gas), and OME1 (a solvent used in the chemical industry). Both ethers can be generated from bio‐ gas or through a process called power‐to‐liquid, which uses solar or wind power along with CO2 captured from the air.
Nissan launches five-year commercial vehicle warranty across Europe
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issan has introduced a new five‐year/160,000km manufacturer warranty on all new petrol and diesel LCVs. The Europe‐wide warranty is applicable from September 2015, and covers component and chassis elements, from powertrain and battery through to paintwork. It also extends to include Nissan Genuine accessories. The manufacturer added that the warranty and roadside assistance are fully transferable to new owners.
Opel European sales rise Opel has reported strong growth in its European sales in August, boosted by new models including the Astra. Preliminary figures show sales were up by more than 7,300 vehicles or 12.8% compared to the same period of 2014. YtD sales were up around 4% or by 27,300 units.
SEAT to invest €3.3bn in launch of four new vehicles
Netherlands safety pilot
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TomTom Telematics has partnered with European car importer Pon for a national pilot scheme across the Netherlands. The trial will provide drivers with real‐time information about their vehicles’ status and performance direct to their smartphones.
EAT has announced plans to invest €3.3bn on equipment, facilities and R&D between 2015 and 2019 in line with its plans to launch four new vehicles over the next two years. The spend – marked out as the largest in the brand’s history for new models – was announced by SEAT executive committee president Jürgen Stackmann during a visit to the company’s facilities in Martorell by Span‐ ish Prime Minister Mariano Rajoy, on the occasion of the 40th anniver‐ sary of the SEAT Technical Centre. The first model under the offensive will be the brand’s first‐ever compact SUV.
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THE BIG BENCH MARK
With Hands-Free Liftgate. The new Astra Sports Tourer brings you first-in-class IntelliLux LEDŽ Matrix headlights and all the other premium features of the new Astra. But on top, it combines sporty looks and an athletic appeal with the extra convenience of a big boot and optional power-operated Hands-Free Liftgate technology. That’s German engineering at its best! Find out more at opel.com
The new Astra.
SPOTLIGHT MINI Clubman
Club Class MINI is replacing the awkward Clubman with the broader appeal of a Golf-rivalling hatchback aiming for an even larger footprint in fleet. But is it all style over substance? Alex Grant finds out.
New customers Although it retains the Clubman name, the new car is no longer a B-segment estate and MINI isn’t expecting much of a customer crossover between the generations. Instead, this is targeting the premium C-Segment, against the Volkswagen Golf, Audi A3, BMW 1 Series and Mercedes-Benz A-Class, among others. So the exterior dimensions are almost identical to a Golf, over a wheelbase and track width which is close to the BMW 2 Series Active Tourer – which uses the same platform. Its cabin is completely redesigned, though still instantly recognisable MINI fare. There’s room for five adults, with a wider centre stack still featuring a central display screen of up to 8.8inches, ringed with colour-changing LEDs. All cars get four full-size side doors, and the split ‘barn door’ rear is retained. Boot volume, at 360 litres, is onpar with the segment norms, and the Clubman has more space inside than a 1 Series with the rear bench folded.
All-Cooper range The Clubman launches with three engine options, with the Cooper D likely to be the most popular with fleets. Priced at €26,900, it’s the same 150hp 2.0-litre diesel that’s found across the BMW range, and consumes 4.1l/100km with CO2 emissions of 109g/km with either the six-speed manual or MINI-first eight-speed Steptronic automatic transmission. At Frankfurt IAA, MINI introduced the new Cooper SD engine variant for the first time. The MINI Cooper SD Clubman with 190bhp (62.8 mpg and 119g/km) will take on the role of the most powerful diesel variant. Petrol engines comprise the entry-level Cooper, which is the only version with one of the new three-cylinder turbocharged petrol engines and consumes 5.1l/100km with CO2 emissions of 118g/km, and the Cooper S. The latter uses a 2.0-litre turbocharged engine and produces 192hp, returning 5.8l/100km with the eight-speed Steptronic transmission. There are no plans for One or One D versions.
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Equipment Recognising the different expectations of a larger segment, the Clubman gets a higher level of standard and optional equipment than the equivalent five-door MINI hatch. Standard specification includes air conditioning, automatic headlights and wipers, auxiliary inputs and Bluetooth connectivity, and it’s likely that there will be a high take-up for the Salt, Pepper and Chilli packs as in other MINI models. Higher up the options list, the Clubman is the first MINI with memory-function electronically adjustable front seats, and the split rear doors can be powered, opening by waving a foot underneath the bumper. MINI TeleServices, with a built-in SIM card, adds internet-connected functions to the infotainment system, and smartphone integration will grow as more apps become available.
What we think...
FLEET FACT Clubman’s split tailgate makes this the only six-door car in its class.
MINI has traditionally relied on the Countryman crossover as an option for MINI-loving user-choosers needing extra space, but the Clubman fills that need more effectively. This is a close-fought segment which sells in large volumes and the styling alone makes this a stand-out option. However, MINI sensibly isn’t seeking class dominance. Alongside the five-door hatch, which is already expanding the brand’s fleet uptake, and investment in corporate-specialist sales and aftersales staff at dealers, the Clubman puts MINI in a good position to find new business. AG
internationalfleetworld.com / 17
STRATEGY Detroit Electric
Detroit Electric rebirth draws near Detroit Electric, once a 20th Century EV pioneer was expected to begin sales in 2014. What has happened, asks Dave Moss?
i
n 1906, almost twenty years after the first practical electric car was built, the Anderson Electric Company was founded in the city of Detroit. Its vehicles were badged ‘Detroit Electric,’ and took the company to electric car market leadership in the US by 1912, eventually set‐ ting a twentieth century world record when production ended in 1939 with some 13,000 electric cars sold. The Detroit Electric name was revived in 2008 by former Lotus Engineering Group chief executive Albert Lam, whose vision was an electric sports car combining style, innovative technology, handling and performance. It’s been a long and winding road since then: as many others have found, moving from a great idea to series production of an innovative, fully developed automobile costs both money and time. 2013 launch After five years of development, the new SP:01 electric sports car was launched in Detroit in April 2013, complete with Lotus based chassis and carbon‐fibre body. Its supercar‐level speci‐ fication included a 201 hp (150kW) electric motor, 249 km/h top speed, and 0‐100km/h performance in 3.7 seconds – with a range of over 290km claimed on a 4.3 hour charge. The 2013 Shanghai Motor Show saw the car’s first public appearance – with production due to begin in Wayne County, Michigan, in August that year. Sales were expected to follow, via special‐ ist retail partners in many of the company’s unspecified worldwide target markets, with prices from US $135,000 (€120,960). It was also announced that the SP:01 was first in a diverse family of all‐electric cars, with two more high‐per‐ formance models beginning production by the end of 2014. In June 2014, with development to improve the original vehicle’s aerodynamic performance continuing, timing challenges involving USA certification procedures brought a major re‐think. Production plans were switched to Leam‐ ington Spa in the UK, and the start date put back, though the on sale target remained late 2014 in European and Asian markets, followed by the USA.
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Specialist distribution Setting up the specialist distribution network has continued despite this further delay, already approaching another full year. Albert Lam, says several key distributors are now in place, with more being sought for markets where strong demand is expected: “So far,” he says, “we’ve recruited dis‐ tributors for Azerbaijan, China, Hong Kong, Iceland, Korea, Norway and South Africa – all countries providing highly favourable conditions for sales of pure electric vehicles like the SP:01. Each of these is highly experienced in selling exclusive, luxury cars and electric and hybrid vehicles to customers and high net worth individuals. Once production starts, we will open a flagship store alongside our dedicated production plant in Leamington Spa. There, prospective cus‐ tomers, distributors and dealers can check out how we man‐ ufacture, present and sell our vehicles – all in one visit. We also have a ready‐for‐business showroom alongside our EMEA headquarters in The Netherlands. Our sales team there is in advanced discussions with potential distributors in some larger volume markets in that region.” In some countries, Detroit Electric’s delays have allowed competitors Tesla, and lately BMW, to take an early sales lead in the specialist electric sports coupe market. Albert Lam feels the world remains quite big enough for Detroit Electric to make its own individual mark – and points to advanced plans for a second electric sports car, “The pure electric vehi‐ cle market in which we operate is still in its infancy,” he says. “There’s lots of room for expansion and growth for lots of dif‐ ferent players, and segments are opening up and developing all the time. The EV market is no longer a limited market – Detroit Electric plans to develop additional products for many segments, so providing customers with wider choice.”
Fleet customers For fleet and business customers the company has chosen to follow what Albert Lam describes as an all‐new approach. “We want to offer enabling technology for better fleet car sharing experiences and management,” he says. “We will be looking to work with banks and vehicle leasing companies, to offer a competitive plan to business and fleet car users. We’re still developing this, and more details will be released when we deliver our first vehicles.” The announcement of a major partnership with the Chi‐ nese Geely Automobile Group was another highlight of the Shanghai Show two years ago, with Detroit Electric set to co‐ develop both drive systems and electric vehicles. Reports then suggested the first partnership vehicle would be based on Geely’s Emgrand EC7 saloon, and on sale in 2014, initially to business users and public‐sector organisations, with 3,000 sales predicted in the first year – and 30,000 within three years. Today, the official line is that a pure electric sedan using key Detroit Electric technology will be assem‐ bled by Geely in 2015, with first availability in China, and a European launch by Summer 2016. Confirmed orders exist, and the initial target for the car is the fleet and rental market, though it may later be offered to retail customers.
Where and when? In January 2015 Detroit Electric announced extensive pre‐ production prototype testing of its now updated fastback SP:01. But with competitors clearly demonstrating rising demand for premium‐level electric sports coupe models, increasingly the question is: where are the cars? Detroit Electric’s chairman and chief executive acknowledges dif‐ ficult times in recent years: “We have had our ups and downs... something not uncommon with start‐up compa‐ nies, particularly one setting up in such a dynamic and rap‐ idly‐evolving field,” says Albert Lam. “But we are now almost ready to provide the first vehicles to the market.” Asked about when, where, and how much, most surpris‐ ingly the USA – where the company has its headquarters ‐ is not mentioned: “The SP:01 pure electric sports car will go on sale in Asia and Europe later this year... we have pre‐ viously hinted at a price, but it will vary by market, because of taxes and incentives... the on‐sale price will be confirmed later this year, when production commences.”
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STRATEGY Saudi Arabia
Western repair heads East Saudi Arabia hopes to learn from European expertise in crash repairs, as Dave Moss reports.
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he UK‐based Thatcham Research centre is funded by the British insurance industry and works to reduce claims costs in vehicle safety, security and repair. As a founder of the international Research Council for Automobile Repairs, and a member of Euro NCAP, the facility has devel‐ oped a world‐class reputation in its field, with fully equipped, state of the art facilities and a skills training academy. With vehicles increasingly distributed on a global basis, the centre reports that international demand for body repair and vehicle risk and safety expertise is fast‐growing. Expert services are currently provided to organisations in Australia, the USA, Malaysia, China, and Western Europe. Another country could soon be joining them, as Thatcham recently hosted a high profile delegation from Saudi Arabia, led by engineer Hani Dahhan from Taqeem, the Saudi Authority for Accredited Valuers. Other delegates included senior representatives from the country’s motor insurance industry through the Saudi Arabian Monetary Agency SAMA, and specialist accident management company Najm.
Hani Dahhan, VP planning & business development at Taqeem, said: “We’ve been hugely impressed with both the facilities at Thatcham Research and the knowledge of those we have met, who demonstrated their extensive experience in all aspects of vehicle repair. The visit has been a real eye opener, and we realise there’s a lot of hard work ahead.” Thatcham’s strategy and development director, Neale Phillips, predicts a better future for Saudi Arabia’s motorists. He says: “At present we’re really assessing the process at point of accident and triage, rather than vehicles and their repair, but our experts have visited the country to assess current body repair processes. Our view is that fair‐ ness and service to car drivers and owners might both be improved, which will help reduce numbers of written‐off vehicles, and body repair skills could also benefit from attention. We’re working towards a long term relationship with Taqeem, and believe useful upgrades in repair safety and quality will be possible, using data and skills training adopted from Thatcham’s best practice standards.”
Improving standards
Tighter safety requirements
The visit opened partnership discussions aimed at improv‐ ing assessment and crash repair standards in the Kingdom, while also seeking ways to reduce claims costs. The group spent three days at Thatcham’s repair technol‐ ogy centre and academy, exploring current advanced repair techniques, and the materials, processes and equipment involved in providing them. Also under discussion was how investment in suitable quality standards and professionalism in crash repairs through expert staff training and accredita‐ tion could further the industry’s development in Saudi Arabia.
The visit coincided with news of official moves to improve the Kingdom’s vehicle safety standards. Work is reportedly progressing in one region for electronic connections between insurance companies and traffic administrators, so insurance costs can be directly linked to customer collision records. Stricter safety standards could also arrive by 2017, after an announcement by the Saudi Standards, Metrology and Quality Organization that ABS and electronic stability systems, autonomous low speed braking, and a front passenger airbag will be required on new vehicles.
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FEATURE Apps
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Border security has come under the spotlight across Europe in recent months. Fleet management software apps offer one way of helping fleets manage potential problems, among many others, reports Steve Banner.
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ommercial vehicle drivers of all nationalities heading across France towards the roll‐on/roll‐off ferry port at Calais are acutely aware that they may be inadvertently carrying a lot more than cargoes of vegetables from Spain or motor components from Germany. Thousands of desperate refugees are fleeing to Europe from conflicts in war‐ torn Syria and Iraq. Also heading for Europe are economic migrants from Third World countries in sub‐Saharan Africa eager to carve out a better life for them‐ selves than they have previously enjoyed. Many of them want to get to the UK and are clandestinely boarding vans and trucks – even squeezing into cars and caravans – in order to do it.
Border security By attempting to enter Britain illegally in this way they are risking injury, especially if they hang on to the underside of a truck or clamber onto the roof. If they get into the load area and the truck is carrying foodstuffs then the cargo may have to be written off, and commercial vehicle owners risk being fined heavily by the British courts if they are caught with ille‐ gal immigrants on board. Drivers can now make use of an app that should help combat the problem.
“Drivers can now make use of an app that should help them combat the problem of illegal immigrants on lorries.”
Available from the Apple store and suitable for use on any iOS device running iOS 8 or above – an Android version is now under development – BF Intelligence allows drivers to report any sightings of migrants accessing a truck. A message is immediately passed to the owners alert‐ ing them that their vehicle’s security has been breached so that they in turn can warn their driver and instruct him to take appropriate action; alert the French police for example if the owners them‐ selves have not already done so. There is no reason why the app could not be used at other borders facing simi‐ lar difficulties. BF Intelligence is but one example of the impact that apps and mobile devices – smartphones and tablet computers, not to mention laptops – are having on the way fleets are run. That is especially the case when it comes to ensuring legal compliance, says Chevin Fleet Solutions.
Legal compliance A van driver about to deliver 80 to 100 parcels in a day should carry out a walk‐ around safety check of his or her vehicle prior to departure, identifying any damage or potential safety defects which
should either be attended to instantly or can be remedied later. Up until recently this was a paper‐ based exercise for many fleets with the completed paperwork deposited in the company’s internal mail and winding up on the fleet manager’s desk a couple of days later. Use an app instead and the results can go straight to the manager as soon as the exercise is completed, says Chevin. It can be accompanied by photographs of any damage if needs be. To ensure the check is carried out, the manager can withhold the driver’s list of delivery points until he receives the required information.
Work management Apps and mobile devices can benefit fleets in other ways, says Chevin senior vice president, Ron Katz. “On a van fleet a driver might use a mobile device to clock on and off, record interactions with customers during the day and even automatically calculate mileage,” he says. “So far as field sales people are concerned it is possible to use such a device to record hours worked, time spent travelling and costs incurred through company car use and measure all this against sales performance. “It allows a very direct way of looking at the productivity of your employees on both an overall and an individual basis.” Using virtually any kind of handheld device, Chevin’s Fleet‐ Wave Mobile app can be tailored to capture and transmit almost any type of data, says the company, including signatures and pictures while using barcodes or QR codes to help elim‐ inate manual data entry. As a conse‐ quence it can for example be used to handle point‐of‐sale transactions – customers can sign for their goods elec‐ tronically – doing away with clipboards, paper and pens. With Tata Motors among its global OEM customers – it supplies its FleetMan telematics and fleet management pack‐ ages to the Indian manufacturer – Microlise too offers a proof‐of‐delivery app under the SmartPOD banner, which works on Apple and Google devices.
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FEATURE Apps
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Route planning and more Using them to capture signatures on consumers’ doorsteps means that systems primarily installed to manage fleets are moving beyond their original function and proving even more useful to clients than originally expected. “Ultimately software such as FleetWave can be used to deliver analytics and reports from any area of a business,” says Katz. “It’s just a matter of how far an organisation wants to take it.” FleetWave Mobile has received an Innovation In Mobile Communications Award from Fleet World, sister publica‐ tion to International Fleet World. With bases in Dublin in the Republic of Ireland and Boston, Massachusetts, USA, Fleetmatics illustrated the potential power of apps as management tools with the launch of its REVEAL Field App earlier this year. An enhancement to its REVEAL plat‐ form offered at no extra charge, it enables operators to send mobile workers the routes they need to follow. They can be used in conjunction with the satellite navi‐ gation software on their devices, which will generate turn‐by‐turn directions. “The application also provides mobile employees with direct access to their performance metrics, allowing them to track their own progress and benchmark themselves against the rest of the team,” says a Fleetmatics spokesman. Using the location of both the device and the vehi‐ cle, it can assign the employee to the next suitable job.
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Smartphones offer cost-savings...
Employing a smartphone rather than a specially designed piece of onboard hard‐ ware helps keep down costs, says Telogis. That has certainly been the experience of Door‐to‐Door Organics of Lafayette, Colorado, USA and which operates in a growing number of states. As its name suggests, it delivers farm‐ fresh organic produce to customers’ doors every week. Judicious use of smart‐ phones employing Telogis WorkPlan along with Telogis route planning soft‐ ware has helped it handle thousands more customers while minimising the number of routes it has had to add. “Our existing software couldn’t keep up with the demands of our business,” says director of operations, Peter Tighe. “Now we can see how our drivers are progressing in real time and respond to challenges quickly.” Among other activities Telogis powers is Ford Telematics, the Big Blue Oval’s cloud‐based fleet management system, which is available globally.
...But bring security issues One potential difficulty with relying on mobile devices is the risk that they will
be lost or stolen and that the informa‐ tion they contain will fall into the wrong hands. “So far as SmartPOD is concerned, the data is encrypted and not stored on the phone and if the driver does not use the phone and app for a while then he will be locked out until he puts in his name and password,” says Microlise executive director, product strategy, Matt Hague. Just as drivers can use apps, managers can employ smartphones, tablets and laptops to manage their fleets when they are away from the office thereby increas‐ ing their productivity. Teletrac’s Fleet Director enables them to use a portable device to keep track of where their vehicles are and to receive alerts if for example drivers speed or if a vehicle is moved without authorisation. “Fleet management has historically been an office job, but managers are no longer restricted to their desks,” observes Shazia Haq, Garden Grove, California, USA‐ based senior creative editor at Teletrac. “Mobility has allowed their work off‐site to be just as effective and perhaps easier.”
Consumer expectations Making full use of such mobile devices is becoming increasingly vital, she adds because customers are using them too. “Mobility culture has created a new consumer who expects faster and more accurate service,” she observes. It is a view shared by Brian Tobin, finan‐ cial accountant/director at Avis Fleet Serv‐ ices Ireland. Part of the Dublin‐based Denis
Fleet performance Microlise has for some time been marketing an app for senior transport industry executives which will give them a snapshot of the performance of their commercial vehicle fleet. It will tell them for example how many deliveries have been made on time so far that day. It is now going further with an app that can tell fleet managers about the on‐the‐road behaviour of each of their drivers – speeding, excessive idling and so on – and gives the fleet the opportunity to run training campaigns. The drivers can be allowed to access data on their performance with an eye to encouraging them to improve it. What Microlise is talking about here is gamification – the process by which systems, services and activities are made more enjoyable and motivating – something which it will be stressing more heavily in the coming months. “It could mean, say, offering a driver who has taken the message on board and really improved his performance over the past few weeks a voucher for use in one of the high street coffee chains,” says Microlise’s Matt Hague.
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C O N T R O L Mahony Group, it is the Avis licensee and has held the licence since 1991. “Customers want to be able to access information about their own vehicles, account, contract and so on at a time and place convenient to them.” Avis Fleet Services uses Bynx’s bynxFLEET fleet management software and is introducing bynxNET, a sister product. It will enable the firm to provide web portals and online access for clients, drivers and other stakeholders. Awareness and acceptability of mobile technology as a management tool varies from fleet to fleet and from market to market, says Hague. “Managers are not necessarily asking for it but when you show it to them then their typical reaction is that it’s a really good idea,” he remarks.
iPad
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Route optimisation to emergency services In New Zealand, Smartrak offers its cloud‐based Fleet Manage‐ ment System (FMS) and GPS tracking software which fleet managers can use on iPhone and Android smartphones and tablets as well as on PCs and Macs. The package it markets addresses everything from route optimisation to emergency alerts and it can also offer lone worker alarms and a variety of driver identification tools. FMS users include Tasman Insulation New Zealand. Part of the Fletcher Build‐ ing Group of companies, it supplies building under‐lays and foils as well as insu‐ lation to the construction industry. It opted for FMS because it realised that it could operate more efficiently if it could always see whereabouts its vehicles and mobile staff were and thus improve the level of customer service provided by its nationwide sales team. Sales reports can now be generated quickly it says, staff spend less time filling in paperwork and as a consequence can devote more time to looking after the company’s clients. “The effectiveness of what Smartrak has to offer was demonstrated recently when a staff member needed immediate medical help,” says Tasman head of busi‐ ness systems, Elena Wong. “We were able to pinpoint his location within seconds.”
INTERVIEW Michael Cole, Kia Motors Europe
Kia targets fleet in Europe Kia’s desire for a great share of the European car market means a bigger slice of fleet business as COO Michael Cole tells John Kendall.
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ew manufacturers came out of the European recession in a strong position, Kia being a notable exception. Since then the company has continued to grow across Europe. The brand looks set to increase sales by 9% in 2015 and expects to see European sales, excluding Russia, reach 385,000 by the end of the year. This would mean that the company would have increased sales by 50% in five years, while European sales for all manufacturers would have recovered to the same level as in 2010. The revised cee’d, designed in Europe and built at Kia’s plant at Zilina in Slovakia alongside the Venga and Sportage went on sale across Europe in July (see test on p.44). This will be followed by more new product next year, including the new Sportage, which made its debut at the IAA Frankfurt show in Septem‐ ber. A new Optima will also join it and there will be plug‐in hybrid and micro hybrid models to come, now that Kia has also launched its turbocharged 1.0‐litre petrol engine in the revised cee’d, a compact power unit well suited to hybrid power trains.
Retail mix Most of Kia’s European business has been with retail customers but as the company matures and sales continue to rise, fleet business will make a greater contribution. Kia’s current sales performance means that 2015 marks seven consecutive years of growth. “Our growth in the last two years has been more in line with the market, having exceeded market performance previously,” says Michael Cole, Kia Motors Europe chief operating officer (COO), “And that’s very much around product cycle changes. The key thing is that it has been sustainable growth with good quality of business. We may have been a supply pushed brand 10 years ago, but we’re now a demand pull, so we work off customer demand.” This brings us to Kia’s European fleet/retail mix. That currently stands at around 62% private sales and 38% fleet, which is more retail orientated than the market average. Cole reckons that to be around 53% fleet and 47% retail. “Actually that includes some of the premium brands so if you took the real volume competitors, we might be on a 40/60 split,
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retail/fleet. So we are still very much focused on our sales in the retail channel, but that actually give us an opportunity. “We’ve already announced that we want to get to 500,000 sales in Europe and we think we can do that before the end of this decade. Of course we’re going to need new product and we have plenty of that coming. When I look at how those 500,000 units will come, you can look at it in terms of product and ask: ‘How many would be Sportage, how many Rio, how many Picanto, how many cee’d and how many new products?’ The other way I like to look at it is the channels and ask, ‘If we are going to sell 500,000, who is going to buy those cars?’”
Fleet sales growth Cole is in no doubt that the current 62/38 retail/fleet mix will change, which almost inevitably means a greater proportion of fleet sales. “We will grow our private sales, I’m convinced of that,” says Cole. “We have a great opportunity to continue to win conquest sales in both the retail and fleet sectors with buyers who become aware of the brand, but we also have a great opportunity for retention. “That will drive private growth, but we know we need to have a stronger presence in the fleet market. Given some of the products that we know are coming in the next 18 months, we’re now building our plans around strengthening our fleet operations in the European market. Some of that is work in progress.” Some of this involves working with Kia’s importers and national sales companies in Europe to identify how fleet business can be grown in different markets. “I will take the UK as an example,” says Cole. “The UK with Kia has an established fleet operation. It has been built over the last five or six years where we started out with creating a business centre strategy. Actually, we say every dealer can sell fleet. We want all our dealer network to be able to sell fleet, partic‐ ularly to be responsive to user‐chooser type business because those customers will come in and just like a retail customer, will want to drive a car and ultimately may want to go through to a quotation, then be given the recommended leasing company.
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“We may have been a supply-pushed brand 10 years ago, but we’re now a demand pull, so we work off customer demand.”
internationalfleetworld.com / 27
INTERVIEW Michael Cole, Kia Motors Europe
Leading the Kia charge The revised cee’d, designed in Europe and built at Kia’s plant at Zilina in Slovakia.
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Proactive business
Rental growth?
“We also recognise that we need to have a more proactive side to our fleet business, because of the local business opportunity, where everyone wants to be because it is more profitable. So in the UK we created this business centre strategy where we supported the dealers, initially with some sort of marketing and head count support. As time goes on you can start to withdraw as the dealer becomes more self‐sufficient because they start to grow their sales volume. Mark Howell, our fleet sales manager in Europe, and I are looking at how we use the UK as the template when we are talking to other markets in terms of what they need to do with their dealer network structure.” This involves asking, “Who can sell fleet? What do they need to sell fleet?” That includes what they need in terms of dedicated resources including a demonstrator fleet and whether that should be centralised or not. On that basis what are the elements that Cole thinks you need to have to be active in the fleet market?
“We’ve been a relatively small player even in the rental market. Of course we’re talking to all the major rental partners regularly and in some markets we have a stronger presence than in others. Again it’s a question of how we do that in a proactive rather than a reactive way.” As Cole explains, he thinks that some‐ times manufacturers go into the rental market because they need to shift volume. “One of the things we need to do is to get people exposed to the Kia brand, because we know that the product we have will exceed so many peoples’ expectations. If you do it in the right way, a controlled way and you have a re‐marketing channel, you can use the rental market very well. Talking particularly about the Optima launch, we’re looking at how we can put vehicles into the rental market to get exposure for the product and get people to drive it.” Kia is experiencing demand for used models from its dealer network across Europe. “As the new vehicle volumes grow, there’s always a lag for the used vehi‐ cle parc,” says Cole. “It’s an opportunity particularly when you have a seven‐year warranty. If you’re talking ex‐rental you could be talking six‐month old cars, but whether it be cars coming off leasing contracts after three or four years, for us, subject to mileage they could still have three or four years of warranty.” Kia launched a European re‐marketing programme last year to support its fleet business and will launch it across Europe. “We know that if we’ve got the right re‐ marketing channel, we can then go into the fleet busi‐ ness confidently knowing that when those cars have been de‐fleeted, whether that is six‐month rentals, or three‐year fleet leasing, you’ve then got a re‐market‐ ing channel. Because we haven’t had such a large number of vehicles being de‐fleeted they have strong residual values and we believe that if we continue this sustainable growth strategy, growing fleet will still give us the opportunity to have strong residual values, which is obviously not only of benefit to the consumer, but also then gives a very strong used car opportunity. “We would look at a fleet opportunity in every market. We have a good fleet presence in Poland for example and we do good business. Every market has a fleet opportunity. It will vary but we know there are some big markets there and one of them is Germany. We see France and Germany as big opportunities.”
White label fleet products “In each of our markets, we are already working with ‘white label’ partners. We use ALD and Arval prima‐ rily as our partners to offer white label, Kia‐branded fleet products. The reason we are doing that now is because we look at the product that is coming in the next 18 months that will give us an added opportu‐ nity in the fleet market. “If I talk about the D‐segment, which is always primarily a fleet market, we are launching new Optima around the turn of the year and we are look‐ ing at the opportunity based on the Sportspace concept from Geneva this year. There’s no official announcement yet but we will see if there is an opportunity in terms of D‐segment wagon. Then there are new products and we are looking at hybrid technology to suit the fleet customer. So there will be more product offering a broader product range that we think will meet fleet demand, so we have to find a way of taking that to market.” Cole acknowledges that all manufacturers want to operate in the profitable local business user market, but he is clear that Kia wants to work on all the fleet channels.
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RVs
Analysing leasing and residual value confidence in the Eurozone and beyond...
European Insight: Trends in the Italian leasing sector Rising forecasted residual values, lower SMR budgets and falling rentals; all characteristics of the Italian vehicle leasing sector, which has seen some dramatic shifts in pricing over the past two years. Experteye reports.
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he forecasted residual values (RVs) built into car leasing rentals have improved by +12% since August 2013. For light commercial vehicles (LCVs) there has been a staggering +30% rise over the same period, underpinning Italian confidence in its future used vehicle market and overall economy. Servicing, maintenance and repair (SMR) budgets have been falling steadily, with a ‐13.3% reduction for cars and ‐14.7% for LCVs. The combination of improving RV
forecasts and lower maintenance costs means companies operating vehicle fleets in Italy have seen their car contract hire rental costs drop by ‐6.9% over the last two years and ‐7.9% for vans. The figures come from the latest 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.
CHANGES IN RV FORECASTS, SMR COST FORECASTS AND LEASE RENTALS
Forecast Residual Values
Forecast Service, Maintenance and Repair Costs
Current Rental Rates
3-month change 12-month change 3-month change 12-month change 3-month change 12-month change Germany
+0.8%
+6.7%
-0.1%
+3.7%
-3.2%
+1.2%
Spain
+0.1%
+1.9%
-1.9%
-4.8%
-3.3%
-2.6%
France
+1.8%
+3.8%
-1.6%
+2.5%
-6.6%
-1.3%
UK
-3.7%
+1.6%
-0.9%
+3.8%
+2.9%
+3.3%
Italy
+1.5%
+5.9%
-3.1%
-2.6%
-6.4%
-3.8%
Portugal
-1.2%
-0.7%
-0.9%
-7.0%
+1.7%
-3.57%
Notes: • The comparisons are for vehicles with a contract duration of 36 months/90,000km. • Twelve-month comparisons show change since September 2014. • Three-month comparisons show change since June 2015.
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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.
Market summaries – 3 and 12 months to August 2015 GERMANY: Since August last year, German forecasted residual values have risen by +6.7% but have calmed of late with a smaller 0.8% shift since June 2015. SMR budgets went up by +3.7% over the last 12 months, resulting in a +1.2% annual increase in lease rentals. Companies operating fleets in Germany will, nevertheless, be pleased to see a ‐3.2% fall in rentals in the last quarter.
Rick Yarrow, managing director of Experteye, said: “Every month we receive data from major leasing companies throughout Europe regarding their residual value forecasts, SMR budgets and rental rates across a broad basket of the most popular fleet vehicles. “Our monitoring of the Italian leasing sector has revealed dramatic shifts in the pricing elements that make up their contract hire rentals – and look‐ ing at the past year from August 2014, and the most recent quarter from June 2015, it appears to be continuing. “In the last 12 months, Italian RV forecasts are up by +5.9% and +1.5% for the quarter. SMR budg‐ ets fell by ‐2.6% since last year and ‐3.1% over the last three months. Rental prices have, resultantly, dropped by ‐3.8% for the year and ‐6.4% for the three months, albeit the quarterly fall in lease rates has been further aided by a ‐3% reduction in new car prices.” The improvement in Italy’s outlook is encourag‐ ing because, according to Experteye, forecasted residual values as a percentage of new car prices have still not recovered since the recession. Back in 2009, the fleet sector benchmarking and research specialists gave all forecasted residual values a nominal index of 100 and have been track‐ ing their movements as a proportion of new car prices ever since. The medium car sector has almost recovered to pre‐recession values, however in proportion to new car prices most vehicle types in Italy are still expected to depreci‐ ate more quickly over a three‐year/90,000km contract than they did six years ago.
SPAIN: Rental prices are coming down in Spain, with a ‐3.3% fall over the last quarter and a ‐2.6% reduction for the year. RV forecasts are stable and since June 2015 they moved by a very small +0.1%, following a year that saw only a +1.9% shift. SMR budgets dropped by ‐4.8% over the last 12 months, and ‐1.9% in the last three months. FRANCE: French fleet operators have enjoyed some price reductions since June this year, with rentals falling by ‐6.6%. Since August 2014 they have come down by ‐1.3%. There has been a +3.8% improvement in forecasted residual values during the year, but a lesser +1.8% movement in the last three months. SMR budgets fell by ‐1.6% during the quarter, after an annual +2.5% increase. UK: After a year that saw residual value forecasts go up by +1.6%, they fell by ‐3.7% in the latest quarter. Servicing, maintenance and repair budgets rose by +3.8% since August 2014, but are down by ‐0.9% since June this year. UK fleet oper‐ ators are currently experiencing the largest price rises of all nations surveyed. Over the last 12 months rentals have increased by +3.3% and +2.9% for the quarter. ITALY: Italian fleet operators are being treated to contin‐ ued price reductions with a ‐3.8% fall in rental rates since August 2014 and ‐6.4% since June 2015. Forecasted residual values went up by +1.5% this quarter, after a positive +5.9% rise over the last 12 months. SMR budgets dropped by ‐2.6% for the year and ‐3.1% for the quarter. PORTUGAL: Portuguese SMR budgets took a steep ‐7% fall over the last 12 months, but have settled in the latest quarter (‐0.9%). RV forecasts have been relatively stable, moving by only ‐0.7% since August 2014 and ‐1.2% since June this year. After a year that had seen lease rentals come down by ‐3.7%, they rose by +1.7% this quarter.
internationalfleetworld.com / 31
MANAGEMENT Insurance
Insurance Mediation Directive Update There’s a sequel to the Insurance Mediation Directive story. John Mitchell from Leaseurope brings us up to date. urther to my article published in the August edition of International Fleet World, and following a flurry of late activity amongst EU stakeholders over the summer, the final compromise text of the Insurance Mediation Directive has been agreed. Recently renamed the Insurance Distribution Directive (IDD), the agreed text was circulated on 16 July 2015. It will now be put through the formal adoption processes of the European Institutions before it is transposed into national legislation by Member States.
F
What does it mean for leasing & rental? This latest text can be cautiously welcomed by the industry. Although the text is yet to be filtered through the legal writers of the EU, it appears to have accounted for a number of our concerns, including those concerns expressed in my previous article. First of all, while an ancillary insurance intermediary must be registered similarly to other insurance intermediaries, it is to be at the discretion of the Member States who will be responsible for that registration process. Then there is Article 1, which is of interest for lessors in general and short-term rental companies in particular. This article details the scope of the new Directive and the conditions by which an ancillary insurance intermediary can claim to be outside its scope. Of crucial importance is the condition regarding the value of the
32 / internationalfleetworld.com
contract. Under this text, ancillary insurance intermediaries selling insurances for a contractual period of less than three months that are of a monetary value of less than €200 per person – while satisfying the other criteria – will be out of scope. Furthermore, the professional training and knowledge requirements, in so far as they apply to ancillary insurance intermediaries, appear now to be subject only to the requirement that ancillary insurance intermediaries possess an appropriate knowledge and ability to complete their tasks and perform their duties adequately. The specifics of these requirements are then to be prescribed by the Member States. As such the language of the text, as it applies to ancillary insurance intermediaries, has returned somewhat to the original ‘product orientated approach’ espoused by the European Commission, that being that training and knowledge requirements should primarily be suitable to the complexity of the products being distributed. This is something Leaseurope has argued for extensively. A new requirement will be that, prior to the conclusion of an insurance contract, ancillary insurance intermediaries must provide the customer with suitable and objective information concerning the insurance product. However, we understand the responsibility for generating this infor-
mation document (or webpage) will fall on the ‘manufacturer’ or the insurance intermediary. Finally, another significant revision of the original European Commission text is that remuneration disclosure requirements for ancillary insurance intermediaries in the current version of the IDD will only require ancillary insurance intermediaries to detail the nature of the remuneration received in relation to the insurance contract. What is next? In all likelihood, the Directive, as it has been agreed, will not satisfy any one particular sector. The original aim of the Directive was to tackle the fractured nature of the insurance distribution market and to harmonise regulatory requirements, thereby facilitating cross-border activity. It is questionable whether this has been achieved. As such, we can say with reasonable certainty that this Directive, which is subject to a review clause, will be looked at again in the near future.
FLEETW RLD FRIDAY 23RD OCTOBER 2015 AWARDS DINNER THURSDAY 22ND OCTOBER 2015
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FLEET FOCUS USA
Powered by retail Fleet business in the US is very different from that in Europe, forming a comparatively small sector of the market, as John Kendall reports.
The Ford F-series pickup is the traditional best-seller, at the top of the list with 494,800 sales YtD.
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T
he United States of America was the birthplace of motor vehicle mass production and the automobile remains a potent force in the country. That is not sur‐ prising given that the US has the largest road network in the world according to data from the US Central Intelligence Agency (CIA) and is also the third largest country in the world. Although the US was overtaken by China for annual vehi‐ cle sales a few years ago, the country remains the second largest light vehicle market in the world. Data from LMC Automotive shows that year to date sales (YtD) until the end of August stood at 11,592,014, a 3.8% increase on the same period in 2014. Carlos Gomes at Scotiabank estimated that US sales totalled an annualised 17.7m units in August, an increase on the 17.3m during the previous three months. He attributes this to, “rising pent‐up demand, a strengthening labour market, low interest rates and gasoline prices have lifted sales above 17 million units in each of the past four months – a development not seen since the ‘tech bubble’ of the late 1990s.” STRONG PICKUP AND SUV SALES The pickup truck has historically been a strong seller in the US, due in part to the large unpaved road network, repre‐ senting 35% of the total road network. Data from the Wall Street Journal shows that YtD light truck sales accounted for 54.4% of total light vehicle sales. Gomes at Scotiabank says that market gains continue to be driven by both pickups and sport utility vehicles (SUVs). He suggests that improving per‐ sonal finances for US citizens is encouraging consumers to move to more expensive models. Wall Street Journal data shows pickup trucks as the top three sellers in the US light vehicle markets. The traditional best seller, the Ford F‐series pickup remains at the top of the list with 494,800 sales YtD, a ‐0.5% decrease compared with 2014. Chevrolet is the second best seller with the Silverado pickup registering 387,179 sales, up 16.6% YtD. Dodge com‐ pletes the top three with the Ram pickup and 294,045 sales YtD, up 3.8% on 2014. Gomes suggestions are borne out by the Wall Street Jour‐ nal data. YtD, General Motors leads the US light vehicle mar‐ ket with a total of 2,048,537 sales, of which light trucks were responsible for 1,406,140 units. Total sales represent a 3.2% increase on 2014, yet total car sales are down ‐15.8%, while light truck sales are up 15.1%. That pattern is repeated for most other manufacturers and is the overall pattern of the US market this year. The trend is also supported by the Wall Street Journal data. The Honda Accord is the best selling car YtD, but sales are down ‐14.8% to 231,173 and the same is true of the fifth placed Toyota Camry with YtD sales down ‐4.8% to 291,843. For the top 20, the pattern is much the same with car sales generally down and pickups and SUVs up. The Nissan Rogue (sold as the X‐TRAIL in other markets) has posted the largest percentage rise with sales up 37% compared with 2014.
The Honda Accord is the best-selling car in the US YtD.
CARS FOR THE JOB Where the fleet sector is concerned, there is probably no larger contrast than between the European market and the US market. Broadly, the European fleet market is now dom‐ inated by operational leasing where the leasing company carries all the residual value risk. Leases tend to be of fixed length and generally for around three or four years. It is probably fair to say that the European car fleet sector, although driven by business need, also contains a propor‐ tion of business where the car is part of the wider salary package – a benefit to the employee. The US picture is quite different. “It’s a much smaller piece of the overall pie,” says Scott Singsank, senior global account manager at Wheels Inc., one of the leading North American fleet service providers and ALD Automotive’s North Ameri‐ can partner. “It’s much more regarded as a work tool as opposed to a Benefit‐in‐Kind, so the majority of folk that get a vehicle here are going to get it because they need it for their everyday job.” LeasePlan’s US office echoes those views, “The US fleet car sector is a mature market where most of the vehi‐ cles are business‐related, meaning they have a specific job function. These cars are generally used as service or sales vehicles, which is not a new concept in our market. Leasing is a common practice in the US especially among larger fleets.” Governments are fleet customers in Europe, but the scale of the business appears to be greater in the US. “It’s about a third, I would say of the overall fleet business,” reckons Singsank. Overall he reckons that commercial business and rental take up around a third each too, but around those are also police and taxi fleets which he thinks account for around 2% of the market each. It depends on how you do the maths, but LeasePlan reck‐ ons things slightly differently, “When looking at commercial versus government vehicles, government would make up roughly half the sector. However, government fleets tend to operate differently from most commercial fleets. In many cases they own their vehicles and they self‐manage the fleet. They run their own maintenance, repair and accident shops, and sometimes even their own fuel pumps.” That is a picture that would have been recognisable in Euro‐ pean fleets around 20 years ago, although there are still some
internationalfleetworld.com / 35
→
FLEET FOCUS USA Chevrolet is the second best-seller in the US with the Silverado pickup registering 387,179 sales, up 16.6% YtD.
→
heavy truck fleets that operate their own repair and mainte‐ nance facilities, even though some of these may involve a con‐ tracted maintenance provider from the dealer network. FLEET LIMITED BY STRONG RETAIL SECTOR Singsank reckons that the light vehicle parc in the US is around 250m vehicles in total and of that, fleet takes up around 12 million or some 5% or less, a total that includes light commercial vehicles. The buoyant retail market that US buyers are currently enjoying does have an impact on the fleet sector, as LeasePlan notes: “The biggest impacts to the U.S. market are incentives and availability. With current car sales being strong, manufacturers haven’t needed to revert back to the high incentives once offered. In addition, vehicles that are also popular with consumers may see early build‐ outs, lack of availability for out‐of‐stock purchases and chal‐ lenges in general in terms of fleet allocations.” Singsank at Wheels agrees, “Obviously being such a small percentage of the overall number of vehicles on the road, fleet gets impacted by retail where there’s a vehicle that’s very popular in retail. So if a manufacturer has a very popular vehi‐ cle, they may withhold the allocation that goes to fleet. They may be less willing to incentivise that vehicle because they can get more money for it selling it off their dealer lots.” Because vehicles tend to be business tools in the US fleet sector, the choice of vehicle is influenced by what it will be used for. “When we first approach our clients, we want to understand what the vehicle does for their business – what is it meant to do, what’s the job it’s got to do? From there you can help determine what vehicles you look at”, says Singsank. Fleet goals will also influence choice, “Do they want to put the safest vehicle on the road for their drivers as a tool? Do they want the lowest cost vehicle? Something that has the best fuel efficiency?” These are all factors affecting choice, he reckons. LeasePlan also sees cost as a factor, “It largely depends on the industry and usage, but some of the considerations are around upfront cost, total cost of ownership, fuel efficiency and quality. Most organizations today are basing their pur‐ chases around those factors, and what is the least amount of vehicle to get the job done.” In terms of favoured manufacturers, Singsank identifies a pattern that is not particularly surprising, “In most cases, I would say that the ‘Detroit Three’ (Chrysler, Ford and GM) are still leading the way from an OEM standpoint because of
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access to supply. They have the most dealers and the highest production capacities and things like that.” That said, he reckons things are changing, “More and more, we’re seeing other brands that are popping into the mix like Nissan, Volk‐ swagen or Subaru – brands that can fill niche needs.” The ‘business tool’ approach also means that the light CV sector is an important part of US fleet business, “The light‐ commercial vehicle sector makes up a significant part of the market in the U.S. because we have so many service vehicles. Small vans and light‐duty trucks tend to be the most popular, but purchases are again driven by the job function,” says LeasePlan. The sector is defined differently from that in Europe and covers a greater weight range. Singsank reckons it covers vehicles from small vans up to a US Class 5 truck, which has a gross weight range of between 16,001–19,500 lb (7,258–8,845 kg), which would be the equivalent of the Euro‐ pean light truck sector, requiring a specialist driving licence. Fleet cars are generally taxed in a similar way to private cars, but as Singsank points out, taxation is not based on CO2 emissions. LeasePlan points to two significant differences in taxation from private cars too, based on depreciation and fringe benefit. “A business that owns motor vehicles is permitted to depreciate the vehicles for tax purposes. Unless the vehicle is used in a business, an individual is not permitted to depreciate a private car. “A second difference is the taxability of the fringe benefit of an employer‐provided motor vehicle to an employee for their personal use. An employee is subject to income tax on the value of the personal use of the vehicle.” OPEN-ENDED LEASE When it comes to vehicle financing, the favoured method for US fleets tends to be the open‐ended ‘track’ lease. LeasePlan notes that closed end and open calculation type leases are also available but just not as popular. Singsank explains how the track lease works, “The track lease puts the risk of resid‐ ual value on the lessee. They can keep the vehicle as long as they want as long as they keep it for 12 months, but they are on the hook for the difference between what’s left on the book value and what the residual value is. As a fleet man‐ agement company our job is to help them manage that prop‐ erly so that they make the right decisions and keep their businesses. That’s the overwhelming majority of fleet leases in this market.”
REMARKETING USA
Retail leasing boost Dick Dennis, country manager of Autorola USA, shows how brand repatriation and Certified Pre Owned schemes are injecting new enthusiasm into the used car industry.
T
he USA’s economy has shown continual growth over the past few years and with it a steady surge in new car sales. Predictions in 2015 are that the market will reach 17 million, but still well down on the record 21.7m in 2001. Alongside a steady growth in the new market has also been an increase in retail leasing as US consumers are offered more available credit as the economy improves. Just 13% of new car sales were purchased as a retail lease in 2005 and this has grown substantially to a forecast 22% in 2015. This availability of credit has helped grow new car sales, but behind this leasing growth is a new strategy by car makers, which has also been mirrored in other countries including the United Kingdom. Car makers know that once a consumer buys a car on lease, the dealer who delivered the car will have some control over that driver’s next car purchase when the contract ends. A well‐timed call from the dealer one to two months before the end of the lease with another keen new car finance deal and an offer to take their old car back a few weeks early works for all concerned. The consumer is happy that they have another new car with an affordable finance deal, while the dealer receives a good quality part‐exchange they can immediately put on their forecourt for sale. This approach has been backed by a keen strategy by car makers to strengthen their Certified Pre Owned (CPO) schemes to attract those consumers who can’t afford a new car but can afford a two to three‐year old used car.
Up to 3.0m used cars will be purchased through certified schemes in 2015, a rise of more than 10% on 2014. Car makers can charge more for the car as they are sold in retail condition and the consumer receives peace of mind they are buying a premium purchase. Multiple websites, from OEMs to franchised dealers, are offering CPO vehicles across the US, with significant sales success. Retail schemes are generally supported by aggres‐ sive remarketing, making used cars available online as deal‐ ers compete for this new breed of eager US used car buyer. This focus on used cars has helped dealers improve their profitability at a time when margins on new cars are shrink‐ ing. It has also injected new enthusiasm by dealers in used cars as manufacturers look at repatriating more and more cars back into their brands. Greater control over their used market means better control of prices and distribution into the marketplace, another factor in improving dealer profitability. Another trend now that fewer car makers are offering rental cars on buy back deals is the increased focus by rental suppliers on extending the replacement cycles to well beyond two years. This has helped feed older used cars into the wholesale market, which is set to increase to around 10.0m in 2015 from 9.5m in 2014. This increase in supply has only slightly impacted on prices, but with more corporates extending their replace‐ ment cycles of cars on lease wholesale volumes are likely to continue, which will keep prices in check at the three to five‐ year old end of the market.
internationalfleetworld.com / 37
NAFA International Fleet Academy
Legality of cross-border contracts CHAPTER 17
Legal obligations Most cross�border contracts specify which country’s law will apply in deciding future disputes over a contract. Some contracts do not however, and this can lead to disagreements over which legal regime is the relevant one. This chapter will provide an overview of Business Law, Tort Law and Employment Law, and which area of the business each encapsulates..
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.
38 / internationalfleetworld.com
Business Law Both the United Nations and the EU have regu‐ lations that may apply to international contracts. The United Nations Convention on Contracts for the International Sale of Goods (CISG) has the binding power of law for parties that have headquarters located in nations that are signatories. However, the parties in a contract can choose not to have the entire Convention or parts of it apply to the contract, but this must be implicitly stated in a contractual clause. CISG is the product of compromise between three of the world’s major legal systems – common law, civil law and socialist law – so it possesses a universal appeal that many arbi‐ trators will find attractive. Although the use of the CISG is not manda‐ tory, almost two‐thirds of products being traded globally fall under the CISG. CISG provi‐ sions apply to contracts of sale of goods between parties whose businesses are in different nations and whose nations are signa‐ tories to the contracts. The list of signatories includes: • Australia • Belgium • Czech Republic • China • Egypt • France • Germany • Ghana • Greece • Holland • Italy • Luxembourg • Mexico • Norway • New Zealand • Peru • Russia • Singapore • Spain • USA
Readers can review the full article – and much more – by purchasing the Global Guide through the NAFA website: www.nafa.org/
Application of CISG When should an organisation choose to use the CISG provisions instead of the national law applicable where they are operating? This is a very important decision that depends on the features of that business, the familiarity with local laws, and the amenability of the other party. Where the application of world‐recognised standards will help in establishing trust, this approach is recommended. In addition to considering the use of CISG provisions, those engaging in international contracts should be aware of the importance of early clar‐ ification, standard formats and language. There is obviously a greater potential for misunderstanding and error in international discussions than in domestic negotiations due to language barriers. Tort Law Tort is a large area of private law concerned with compensating those who have been injured by the wrong‐ doing of others. Tort law involves private parties who institute legal actions against each other for damages. The purpose of Tort law is not to punish wrongdoers, but to provide damages to victims as compensation for their losses. Although this general concept of tort is applied by all nations to some degree, there are some distinct differ‐ ences between the administrations of Tort law in different countries. It is customary in the US, for exam‐ ple, for parties to pay for their own legal costs. In many other countries, a ‘loser pays’ rule applies where the losing party pays not only damages but also legal costs. In fact, insurance markets exist in many EU countries to offset these potential costs.
“ Fleet operators must be aware of the labour laws in the nation in which they are operating.” Employment Law The International Labour Organiza‐ tion (ILO) is the international organisation responsible for draw‐ ing up and overseeing international labour standards. It is called a ‘tripartite’ agency as it brings together representatives of govern‐ ments, employers and workers to jointly shape policies and programmes. Fleet operators must be aware of the labour laws in the nation in which they are operating. In 10 Tips for Employers with Opera‐ tions in China, Littler Mendelson, an international labour and legal firm, offers advice that applies in any country: “Gain a basic under‐ standing of local labor laws and ensure employee handbooks are specific, detailed and well publi‐ cised. It is important to under‐ stand that the application of foreign law is limited, and recog‐ nise that the foreign‐language version of any employment contract is controlling. Operators should plan ahead to satisfy any strict evidence admissibility requirements, and when terminat‐ ing an employment contract, provide notification to the trade union at the first opportunity.”
Next month... We look at the role of the fleet in emergency preparedness and global risk exposure..
internationalfleetworld.com / 39
PROFILE Fiat
A family affair Following the runaway success of the revived Fiat 500 in 2007, Fiat has been keen to extend the model’s retro appeal across a new range of family models. Together the Fiat 500, Fiat 500L and Fiat 500X have succeeded in attracting a young, fashionable customer base, and the acquisition of Chrysler gives the brand a firmer foothold in the key market of the USA‌
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Manufacturer Fiat Total sales 2014 586,100 Headquarters London, England Global market share 4.5% No. of models 14
view
from the top
Jerome Monce, head of EMEA
Fiat as a part of the FCA Group
F
iat acquired the US and Canadian government’s 53.5% stake in Chrysler in January 2014, leading to the formation of Fiat Chrysler Automobiles NV (FCA). Following the acquisition, FCA has amalgamated sales figures for its subsidiary brands in many major markets, making it challenging to review Fiat sales in isolation on a global scale. Fiat‐only European and NAFTA sales figures are published and the Fiat brand posted sales of more 356,000 vehicles in Europe for the first half of 2015, a 10% increase over the previous year. The brand recorded sales of 66,000 vehicles in June 2015, a sales increase of 15% over June 2014. Fiat’s European sales were up 16% year‐over‐year in Germany, 32% in France and 25.1% in Spain. In Italy, all Fiat brand vehicles ranked first in their respective segments in June, reflecting strong support from the home market. The brand continued as a leader in the European A‐segment, with the flag‐ ship Fiat 500 and Fiat Panda city car accounting for a combined 28% share year‐ to‐date, and sales of the Fiat 500 passing the 100,000 unit mark ahead of the launch of the new model in September. In June, the Fiat 500 accounted for 19,200 units sold in Europe, followed by the Fiat Panda, with nearly 14,800 sales for the month (+10%). With more than 9,100 units sold, the Fiat 500’s large five door MPV sibling, the 500L, recorded a 24% share for the year‐to‐date. Launched in early 2015, the Fiat 500X crossover strengthened its position among the European top ten in the small SUV segment, with sales increasing to more than 7,600 vehicles in June from 5,700 in May. Approximately 23% of FCA’s sales in the U.S. and Canada in the first quarter of 2015 were to fleets. Historically, Fiat has been a niche seller in the USA, with the most popular model, the Fiat 500, recording 2,283 sales in June 2015 (according to data provided by analysts www.fiat500usa.com). Sales of the Fiat 500L, which have been averaging about 1,100 per month, posted a significant 53% drop in June, down to 530 cars after failing to capture American buyers’ imagination in the same way as Europeans’. The full‐scale arrival of the Fiat 500X to American showrooms helped to off‐set this sales downturn in July, recording a 197% increase in sales over the previous month, with 962 units sold. The only electric vehicle in the Fiat range, the Fiat 500e, recorded sales of 485 units in June 2015 (estimate based on State/rebate data), despite only being available for sale in California. At the time of the creation of FCA, analysts Frost & Sullivan forecast an increas‐ ing global manufacturing strategy for Fiat; “Production volumes from the Ameri‐ cas is expect to drop over the next seven years, while production volumes from Asia is expected to increase to 9% of overall volumes in 2018. Taken together with projected volumes in Iran and India, more than 11% of the total FCA vehicles produced globally are expected to be from the group’s Asian operations.”
FIAT Global sales, by territory Territory Europe Of which Fiat
NAFTA Of which Fiat
Latin America APAC1* Total
2013 875,000 573,700 2,147,700 50,900 933,100 267,200 4,442,400
2014 886,100 586,300 2,459,100 54,200 830,000 199,500 4,155,300
% change 1% +2% +15% + 8% -11% +34% +7%
1,575,480
1,741,100
+11%
* China, India, Japan, Australia & S. Korea
Total
fleet & business sales at FCA Italy on Fiat’s future opportunities. What is the secret of 500’s success? The 500 is popular with SMEs and entre‐ preneurs who want a visible, character‐ ful car that’s inexpensive to run, doesn’t tie down a lot of capital or demand a long‐term commitment. The new 1.2‐ litre engine will help consolidate its market‐leading position by appealing to ecologically‐minded customers, whilst further reducing running costs. How has the 500X broadened Fiat’s fleet appeal? The FIAT 500X is proving popular in countries where fleet sales are grow‐ ing fast – it offers an alternative with personality while also making sound financial sense, resulting in around 40% of our sales across Europe taking place in B2B channels. A hatch and estate, based on the Aegea Project, are to be shown at the Geneva 2016. How will the target market for these vary from the FIAT 500 family? It’s too early to discuss marketing strate‐ gies but while 500 family vehicles tend to be purchased as much for emotional as practical reasons, the Aegea Project customer will likely be more rational so we will focus on the key specific areas, where it will be extremely competitive versus the competition. Do you cross-promote other FCA brands when speaking with fleets? We offer a huge range of products, from small cars to huge vans, and we don’t limit our conversation with fleet managers to just one brand. We do work with each brand very differ‐ ently, however. Does FIAT see a place for electric or hybrid drivetrains in its European product offering, and why? We have a new plug‐in hybrid electric vehicle (PHEV) scheduled for launch next year. This is currently the best compromise in Europe, offering the benefits of electric use for shorter, fuel‐ hungry journeys but the backup of petrol power for longer excursions.
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internationalfleetworld.com / 41
PROFILE Fiat
→
Where are they made?
Manufacturing plant locations
3
Europe
1 Fabbrica Italia Pomigliano S.p.A, Naples, Italy – Fiat Panda 2 Società Automobilistica Tecnologie Avanzate S.p.A, Melfi, Italy – Fiat
Punto, Fiat 500X, Fiat 500 Plus 3 Fiat Auto Poland s.a, Tychy, Poland – Fiat 500 4 Türk Otomobil Fabrikasi A.Ş, Bursa, Turkey – Fiat Linea 5 Fiat Automobiles Serbia, Kragujevac, Serbia – Fiat Punto, Fiat 500L
5 1
Latin America
6 Fiat Chrysler Automóveis Brasil LTDA, Minas Gerais, Brazil – Fiat
2
4
Bravo, Fiat Palio, Fiat Siena/Grand Siena, Fiat Palio Weekend, Fiat Punto, Fiat Linea 7 Fiat Auto Argentina s.a, Cordoba, Argentina – Fiat Siena, Fiat Palio 8 FCA US LLC, Toluca, Mexico – Fiat 500, Fiat 500C, Fiat Freemont Asia
9 Fiat India Automobiles Limited, Ranjangaon, India – Fiat Linea, Fiat 10
Grande Punto GAC Fiat Automobiles Co. Ltd., Changshua, Hunan Province, China – Fiat Viaggio, Fiat Ottimo 10
8
9
6 7
FIN T
Expanding the 500 Family
fleet in numbers
102 g/km
CO2 emissions of the Fiat 500X with 1.6 MultiJet II engine.
160hp
Horsepower of the 16V MultiAir Turbo engine in the sporty Fiat 500 Abarth.
300 Customisable colour options on the Fiat 500L for user-chooser appeal.
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he first of two new Fiat models to come to market in 2015, the Fiat 500X was launched in Europe in January 2015, and to over 100 global territories by the middle of the year. Sharing a platform with its sister, the Jeep Renegade, the Fiat 500X extends the best‐selling 500 Family into the lucrative compact crossover segment. The model was made available from launch with front and all‐wheel drive, with the engine range in EMEA countries comprising four petrol and three diesel engines. Preliminary figures suggest a very successful first year on sale. The latest incarnation of Fiat’s flagship city car, the Fiat 500, followed in September with updated styling, infotainment systems and engines. The new car retunes its compact dimensions – 3,570mm long, 1,630mm wide and 1,490mm tall with a wheel‐ base of 2,300mm, and is said to bring 1,800 detail changes, led by new front headlights with LED daytime running lights and the new rear light clusters, plus updated colour options, a revamped dashboard, new steering wheel and improved materials. The engine line‐up of the new 500 includes a 0.9 TwinAir engine (85hp or 105hp), a 1.2‐litre 69hp engine and a 1.2‐litre LPG 69hp bi‐fuel. ‘Eco’ configurations of the 1.3 MultiJet 95hp and the 1.2‐litre 69hp (available after the launch) will limit emis‐ sions to 99 grams of CO2 per kilometre. For some markets, the engine line‐up of the new 500 will feature a TwinAir 0.9 65hp aspirated engine and a 1.4‐litre petrol 100hp engine. Standard equipment varies by market, but includes seven airbags, Uconnect Radio 5” with six speakers, AUX‐IN and USB ports, controls on the steering wheel and LED daytime running lights in most territories. Based on the Dodge Dart sold in North America, the Fiat Aegea Project will launch in Turkey in November and will gradually expand into more than 40 countries in the EMEA region. The Fiat Aegea has been designed to accommodate five passengers comfortably and will be available from launch with a range of fuel‐efficient engines, including two MultiJet II turbo‐diesel engines and two petrol units with power outputs of between 95 and 120hp. Available with manual and automatic transmissions (depending on engine), the diesel engines are particularly fuel efficient, with Fiat claiming upwards of 5.6l/km (comparable to that of a city car). The new model will be manufactured in the Bursa plant in Turkey, and a UK New Fiat 500 launch is under consideration.
Fiat fleet model range
500 / 500C
500L / 500L Living / 500L MPW
500L Trekking
Variants: 3dr hatchback, cabriolet Markets: Global Fuel: 3.8-5.4l/100km CO2: 88-155g/km
Variants: 5/7-seat MPV Markets: Europe, Africa Fuel: 4.0-5.6l/100km CO2: 105-163g/km
Variants: Crossover Markets: Europe, Africa, North America Fuel: 4.2-7.0l/100km CO2: 109-163g/km
500X
Uno
Panda
Variants: : Crossover Markets: Europe, Africa, North America, Oceania Fuel: 4/1-6.0l/100km CO2: 109-144g/km
Variants: 5dr hatchback Markets: North America, South America Fuel: N/A CO2: N/A
Variants: 5dr hatchback Markets: Europe, Asia, Africa, Oceania Fuel: 3.9-5.2l/100km CO2: 95-120g/km
Panda Trekking
Panda 4x4 / Cross / Trekking
Punto / Avventura
Variants: Crossover Markets: Europe, Asia Fuel: 4.2-4.6l/100km CO2: 105-109g/km
Variants: Crossover Markets: Europe, Asia Fuel: 4.2-4.9l/100km CO2: 105-125g/km
Variants: 3/5dr hatchback Markets: Europe, Asia, Africa, South America Fuel: 3.5-6.9l/100km CO2: 90-161g/km
Albea / Palio / Siena
Bravo
Linea
Variants: 3dr hatch, 4dr sedan, wagon, crossover Markets: North America, South America Fuel: N/A CO2: N/A
Variants: 5dr hatchback Markets: South America Fuel: N/A CO2: N/A
Variants: 4dr sedan Markets: Europe, Asia, South America Fuel: 4.9-6.3l/100km CO2: 129-148g/km
Viaggio / Ottimo
Freemont
Variants: 5dr hatchback, 4dr sedan Markets: Asia Fuel: N/A CO2: N/A
Variants: Crossover Markets: Europe, Asia, Oceania Fuel: 6.4-11.3l/100km CO2: 169-262g/km
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Kia cee’d New engines, more equipment and subtle revisionsmake for an improved package, finds John Kendall. SECTOR Lower Medium PRICE €20,280–€27,660 FUEL 3.6–7.4l/100km CO2 94–170g/km
I
t may be an upgrade, but Kia has packed a lot into the tweaks to the latest Kia cee’d, including subtle changes to both interior and exterior, a new GT Line specification and several new engine options. All three body styles – three‐door, five‐door and four‐door Sportswagon remain in the range. Externally, the differences are quite subtle with the same grille treatment – ‘tiger‐nose’ in Kia‐ese. Other changes are in the front bumper – more angular and wider with chrome trim around the fog lamps and a new oval shaped grille mesh. At the back, there are re‐shaped bumpers too, revised reflectors and LED rear lamps. New 16 and 17‐inch alloy wheels designs are also available. Inside the instrument binnacle gets chrome trim around it, as do the fascia vents and the central section of the fascia is now finished in anti‐scratch gloss black. Diesel models get more sound deadening material in the carpets and ventila‐ tion system and around the dashboard panel. Diesel models also gain additional sound absorbing treat‐ ment for the engine block, oil pan and diesel particulate filter. Kia is not alone in introducing a downsized one‐litre when fitted with Kia’s Idle Stop/Go ISG Stop/Start system. That turbocharged direct injection petrol engine (1.0 T GDI) to a C‐ translates into CO2 emissions of 104g/km or 94g/km. For DCT segment car. 100hp and 120hp options will be on offer when equipped models, CO2 emissions fall to 109g/km compared the engine becomes available later this year. with 145g/km for the previous six‐speed auto‐ Preliminary data suggests 4.7/4.9l/100km fuel matic model. A six‐speed DCT is also available FLEET FACT consumption and CO2 emissions of 109g/km. with the 1.6‐litre GDi petrol engine. Fleet buyers are likely to focus on the diesel Other changes include a new torque vector‐ New 1.0-litre T-GDI ing system, which reduces understeer by brak‐ models, which include 1.4CRDi and 1.6CRDi versions as before but with some revisions to the ing the inner front wheel under cornering. The offers approx. 1.6CRDi engines. A 110hp variant is introduced electric power steering has been re‐calibrated, 4.7l/100km and and the power output for the more powerful the front wheel geometry revised to improve 109g/km CO2. version has been raised from 128 to 136hp. This steering feedback while changes at the rear is now available with a new seven‐speed dual‐ have been designed to improve ride comfort. clutch transmission replacing the previous six‐speed auto‐ Driver assistance systems now include a speed sign recog‐ matic. For both 110hp and 136hp variants, friction reducing nition system shown by the speedometer and the navigation measures cut fuel consumption to 4.0l/100km or 3.6l/100km screen. Blind spot detection and rear cross traffic alert are also available to warn the driver when a car is in the blind spot and when there is traffic while reversing out of a parking bay. The smart parking assist programme has also bee upgraded, a new navigation system with Kia Connected Services is available. The TomTom based system features live traffic updates, speed camera alerts, local search and weather forecasts. It may be based on the same cee’d but the raft of changes give the car a different feel, altogether sharper in handling and road holding while the additional sound deadening in the diesels improves refinement. The new 1.0‐turbo petrol engine is another refined and impressive 3‐cylinder design, which could appeal to low mileage fleet users. The diesel models are undoubtedly impressive and the new DCT would be a good choice for those who prefer automatics. The interior has a better quality feel to it while the digital instrument pack in the cars we drove offered a high‐quality display that looks very like conventional instruments, with the flexibility of adding navigation information to the display in front of the driver.
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what we think highlights Three-door, five-door and Sportswagon variants Prices start from €20,280 (approx) 1.6 diesel manual emits 104g/km C02 and returns 3.6l/100km New GT Line spec from late 2015
If this is the upgrade, how good will the next new cee’d be? Anyone who thinks that Kia still builds budget models needs to look again. The latest cee’d is a competitor for some of the sector leading rivals, while the broad range of engine choices and the new DCT provide something to suit a very wide range of drivers and uses.
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Hyundai Tucson Hyundai’s ix35 replacement is a class act, says Alex Grant. SECTOR Crossover PRICE €22,400–39,850 FUEL 4.6–6.7l/100km CO2 119–177g/km
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lthough the locally‐focused i30 and cee’d hatchbacks have had a large‐volume role in changing the image of their respective brands in Europe, it’s aspirational crossovers which have really driven the Korean duo upmar‐ ket. A quarter of Hyundai’s sales are the ix35 or Santa Fe, weighted towards the former, which the Tucson replaces. Recognising the importance of aesthetic appeal, the biggest advance between this and its predecessor is the design, penned by a team headed by Peter Schreyer, the man behind Kia’s recent style renaissance. This is a car with big shoes to fill, but its scaled‐down Santa Fe styling ought to stand it in good stead – arguably it’s easier to love than the new Kia Sportage, which is a role reversal. There’s as much of a step change inside. The Tucson’s interior is neatly designed, logically laid out and feels very well built, despite a few shiny plastics still dotted around out of the commonly‐touched areas of the dashboard. It looks particularly classy in lighter colours and, with leather‐ trimmed seats, feels almost premium. That’s helped by a luxuriously long list of equipment, boot is around 10% larger than in the ix35 with the seats including a powered tailgate, heated and cooled eight‐way up. The rear bench folds flat with the floor, and a pair of adjustable front seats and automated parking assist. The indents just inside the tailgate hold the tonneau cover in panoramic roof’s central support bar is slimmer place when it’s not in use. than before, which makes a big difference to the Hyundai reckons the 116hp 1.7‐litre diesel FLEET FACT light getting into the cabin, and there’s a compre‐ engine will be the big‐seller in Europe, particu‐ hensive package of active safety systems too. larly in fleet, and a reduction in CO2 emissions The ix35 Hyundai’s familiar navigation interface is from 135g/km to 119g/km, with fuel consump‐ updated to include a seven‐year subscription tion of 4.6l/100km, will help. However, it’s start‐ accounted for to TomTom’s real‐time traffic information serv‐ ing to feel like an old engine – noisy under load 22% of Hyundai’s ices, with speed camera warnings, live weather and slightly underpowered in a car of this size. European sales updates and a place search, shown on a clear The 2.0‐litre diesel is much more appealing; in 2014. and responsive eight‐inch touchscreen, and top quieter and offering a useful increase in mid‐ trim levels have twin USB charging sockets for range torque which stops the car feeling like back‐seat passengers. it’s working hard when accelerating. There are now two to All occupants get generous head and leg room and the choose from, producing 136hp and 185hp, both of which are offered with four‐wheel drive and an automatic gear‐ box. A new 127g/km two‐wheel drive 136hp 2.0‐litre diesel, caters for those who want more performance than the 1.7‐litre, but don’t need additional traction. There’s also an unlikely star performer in the 1.6‐litre turbocharged petrol engine, similar to the unit used in the Veloster Turbo. It’s incredibly quiet, offers an eager 177hp from low revs and is the only drivetrain with the dual‐clutch gearbox, but it’s also only available with four‐wheel drive and CO2 emissions are high. Regardless of engine choice, ride quality is impressive even on large wheels and body control is excellent, though there’s no reassuring feedback from the steering wheel. The stiffer bodyshell and extra sound deadening offer a notice‐ able reduction in NVH, and it’s quiet while cruising. Distilling the Santa Fe’s luxury into a smaller package, the Tucson is as much of a step forward as the ix35 was when it launched. This looks and feels as good as the best‐sellers in this segment, and can only continue the Koreans’ march forward.
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what we think highlights Two-wheel drive now offered on 1.7 and 2.0-litre diesel engines. New navigation system with TomTom live traffic, speed camera and weather data. Significantly better quality cabin, with more space and luggage volume.
The Tucson has the style, build quality and equipment levels to compete with the best crossovers on the market, but wider availability of the dual-clutch gearbox and CO2 emissions closer to 100g/km would help compete with the newcomers.
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Volkswagen Caddy The revised Caddy brings a number of useful revisions to VW’s impressive van, reckons John Kendall. SECTOR Small Van ENGINE 151–178hp PAYLOAD 582–735kg CARGO VOLUME 3.2m3 or 4.2m3
“
If it ain’t broke, don’t fix it”, seems to have been Volk‐ Buyers can also specify spark ignition engines, depend‐ swagen’s guide in re‐working its successful small van. ing on market, with the options of 1.0‐litre 102hp, 1.2‐ It uses much of its familiar predecessor, in production litre 84hp or 1.4‐litre 125hp turbocharged TSI petrol from 2003 – 2015. The shape is reassuringly similar, while engines. The TGI natural gas engine is also available in the interior has been subtly re‐worked to incorporate some markets based on the 1.4‐litre engine. some revised options like Volkswagen’s latest infotain‐ Standard equipment includes the Volkswagen multi‐colli‐ ment systems, while leaving the clear instrument layout sion brake system to brake the vehicle after a collision if the and familiar control layout largely untouched. driver is no longer able to do so. Other options include light The changes were designed to accommodate revised or high‐beam assist and park assist for the first time, while Euro 6 powertrains. Unlike the EU car sector, the Euro 6 adaptive cruise control, front assist and city emergency brak‐ emissions limits did not come into force for all newly ing are all on the options list too. Three trim levels are avail‐ registered vehicles on 1 September able – Startline, Trendline and Highline. 2015. Light CV buyers have a further The 3.2m3 and 4.2m3 load volumes of the Caddy and Caddy Maxi vans are year before the limits apply to all new unchanged, while payload ranges from registrations. That gives many buyers a 582 to 735kg. Combi, Window van choice to either adopt the Euro‐6 tech‐ and passenger carrying Life variants nology now or wait until the law takes provide a wide range of options. the choice away in September 2016. The driving experience is very similar This leaves the Caddy with a choice of to the outgoing model, but since it was both Euro 5 and Euro 6 engines for the one of the best small vans to drive, that is time being. Diesel is likely to be the not a problem at all. The Caddy remains a dominant choice and the engines are solidly engineered van with fine road familiar from Volkswagen’s passenger manners and a comfortable cab. As car ranges, even if the power outputs before, the DSG automated manual trans‐ vary. Both 1.6‐litre and 2.0‐litre TDI mission remains an option, making life engines are available although the 1.6‐ VW has delivered a particularly easy for stop/start and town litre variants will disappear when Euro subtly revised Caddy driving. As in the cars fitted with the 6 becomes mandatory and Volkswagen range that incorporates gearbox, it delivers seamless gear shift‐ will rely solely on the 2.0‐litre engine to ing and a relaxed driving style. deliver either 102hp or 150hp with the many new features. It The Caddy load area remains a prac‐ option of BlueMotion low emission vari‐ remains one of the best tical one too offering a competitive load ants with the 102hp engine. For now vans in its class despite space and payload. There may be the Euro 5 1.6‐litre engine is also avail‐ stiff competition. newer rivals, but the Caddy remains a able with either 75hp or 102hp and the very appealing choice. Euro 5 2.0‐litre TDI offers 140hp.
what we think
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Ford Focus ST 2.0 TDCi Ford’s first diesel ST has plenty of company car appeal, reckons Alex Grant. SECTOR Lower Medium PRICE €29,900–€30,850 FUEL 4.2/100km CO2 110g/km
X
R, ST, RS, Cosworth – Ford has an impressive history torque delivered right in the middle of the rev range means of bringing performance to the masses. An iconic in‐gear acceleration feels almost as muscular as its sibling, lineage which the first diesel‐powered Focus ST will albeit for shorter bursts. be looking to continue, particularly with user‐choosers. But this isn’t a particularly refined diesel engine. Volk‐ It’s an easy business case. The Golf GTD has had wide‐ swagen’s equivalent is considerably quieter at all speeds spread popularity with a heavily fleet‐weighted sales mix, and, although the ST has a bespoke sports exhaust system, and most of Ford’s rivals – including premium brands – have the Focus doesn’t have a sound actuator like the Golf GTD an equivalent product. Efficient for wherever the journey to fake a petrol‐like soundtrack. There’s hardly any vibra‐ takes you, but fun for the trip back home, it’s an appealing tion through the cabin, but it’s noisy enough to be a offer, particularly with the Focus ST’s optional wagon constant reminder that this isn’t a petrol ST. bodystyle for those who need the space. Otherwise, it masks the extra weight and slightly blunted Power comes from a retuned version performance very well. Ford’s torque of the 2.0‐litre diesel used in the vectoring system, which brakes the inside Mondeo, with a sports exhaust and front wheel while cornering, helps to intake system lifting power to 185hp. It make the most of the Focus’s excellent gets the same short‐throw, short‐ratio chassis, and the ST responds quickly and gearbox and suspension and brake confidently to steering, throttle and brake upgrades as the petrol version, but with inputs. It feels like a proper hot hatch. a significant efficiency improvement; However, it’s also excellent at covering 4.2l/100km with 109g/km CO2 emis‐ long distances. It’s quiet and just about sions, compared to 6.8l/100km and softly sprung enough not to be tiresome 159g/km for the petrol version. at high speeds, and fuel economy of It feels sporty even at slow speeds. between 5.0 and 5.5l/100km is easily Firmly sprung and with a reassuring achievable. The wider wheels and recali‐ weight to the steering, pedals and brated steering setup does give it more of gearchanges, it also features some of a tendency to grab at bumps in the road, Aggressive to look at, the best seats in its class and a dash‐ though, and the turning circle is notice‐ fuel-efficient and great board wrapped around the driver. The ably larger than the rest of the range. to drive, the diesellatter is much improved by the SYNC 2 There are a compromises for the advan‐ touchscreen and de‐cluttering from the tage of diesel economy in the Focus ST, but powered Ford Focus new Focus. they’re small. This opens new doors for ST makes a very Thankfully that sensation doesn’t the brand’s sportier side in fleet, without desirable company disappear when the road ahead permits. dampening the identity of the petrol car option. The diesel engine produces 65hp less version – it’s a genuine fast Ford with than the petrol ST, but the extra 40Nm of huge potential as a company car.
what we think
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fleet in figures
Mixed fortunes Struggling markets in Eastern Europe, the ASEAN region and Japan contrast with the strong markets in North America, Western Europe and China, says John Kendall.
Spain According to LMCA, The Spanish market registered its best August result since 2009. Leading the way with 23% year-on-year growth.
he Chinese economy has been under the spotlight in a newsstarved August, with no shortage of industry commentators pointing to the problems there. The level of debt certainly seems to remain an issue, but despite a weak month in July, and a slow month in August – never a good month for vehicle sales in any market with so many countries in the northern hemisphere on holiday –
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the Chinese vehicle market has not ground to a halt. Data from LMC Automotive shows that China is still the largest automotive market in the world by some margin. With data for August factored in, year-to-date (YtD) sales have reached 15,281,854, a 1.1% increase over 2014. LMCA’s own commentary suggests that; “According to preliminary data, the selling rate in China surged to
23.3m units/year in August, up 9% from a two-year low of 21.4m units/year in July. Industry concerns had grown in light of the weak results prior to August, which came against a backdrop of worrying signals from many parts of the economy.” LMCA gives a broader analysis of the Chinese vehicle market on page 6, which gives a useful insight into the factors affecting the market there.
Western Europe Overall Western European growth has been 8.4% YtD, taking registrations to 8,701,704 according to LMCA.
Western Europe remains buoyant We have discussed the US market on page 34-36, where growth is still very much the story. There’s a similar picture in Western Europe with the ‘Big Five’ markets in particular looking strong, although Italy is not so buoyant as Spain, Germany, France and the UK. Overall Western European growth has been 8.4% YtD, taking registrations to 8,701,704 according to LMCA. Spain led the way in the Big Five with 23% year-on-year growth. According to LMCA; “The Spanish market registered its best August result since 2009, as the seasonally adjusted annualised rate of sales moved further above the one million unit mark. Supported by the ongoing government scrappage scheme, and higher disposable income, buyers are finding it easier to access finance, and business confidence appears to be returning to the country after a tumultuous few years.” Registrations in Spain reached 714,052 YtD. August registrations in Italy reached almost 60,000 according to LMCA, an 11% increase over August 2014. Overall YtD growth in Italy averaged 14.9% with registrations reaching 1,064,612. Growth has been more measured in France, but LMCA has recorded a selling rate of 1,900,629 YtD and the market is up 5.9% YtD at 1,256,676. LMCA notes that it is fleet business that is driving growth in both Germany and the UK. Average growth of 5.6% YtD brings German registrations to 2,135,459. Growth is averaging 6.7% in the UK YtD, bringing registrations to 1,634,369. In percentage growth terms, Ireland is the strongest performer in Western Europe with YtD growth of 30.9% and registrations reaching 116,770. Portugal is also recording strong growth with
registrations up 28.5% YtD to 125,609. Growth is not a universal picture across Western Europe and three markets are showing an overall contraction in the market, with Austria down -1.3% YtD to 209,731, Finland down -0.6% to 74,199 and Luxemburg down -5.1% to 32,793.
Eastern and Central Europe struggle Eastern and Central Europe are also looking up if Russia is taken out of the equation. LMCA estimates that growth is around 14% in these countries YtD. But factoring in the -19% year-onyear decline in Russia takes Eastern Europe as a whole to a YtD market of 2,512,489, a decline of -12.2% according to LMCA, which only expects a minimal recovery in Russia in 2016. For August, sales in Russia were slightly higher than expected reports LMCA. This is attributed to more weakness in the value of the Rouble, which will push vehicle prices higher in the coming months.
Tax rises cool Japanese market For Japan, the dual effects of the rise in consumption tax in April and tighter rules on eco-car tax exemptions have taken their toll and the market is down -10% YtD to 3,348,932. South Korea on the other hand has continued to thrive with the market up 7.5% YtD to 1,129,672, which LMCA attributes in part to low interest rates and low inflation. But the company warns that high household debt and a weakening economy could change the picture. Brazil’s economic problems have not eased and the recession is deepening according to LMCA. The weakening job market is also adding its effects to falling car sales. This has helped to bring the combined market in
Argentina and Brazil down to 2,099,164 YtD, a decline of -19.1%.
Weak economies hold back ASEAN markets LMCA has been analysing the H1 ASEAN car market results – made up of combined sales in Thailand, Malaysia, Indonesia, the Philippines and Vietnam. Overall the combined market saw sales fall by -8% in H1, but the picture across the region is a combination of high percentage growth and some large reductions too. The market in Indonesia declined by -16%, similar to the reduction in Thailand of -17% with Malaysia recording a fall of -4%. The reasons for this were a weakening economy in Indonesia, marked by lower exports, reduced government fuel subsidies, triggering fuel price rises and a weaker economy. To stimulate the vehicle market, the Indonesian authorities have reduced the required minimum down payment for passenger car buyers from 30% to 25%. Thailand is home to a number of pickup truck manufacturing operations and LMCA expects to see growth in the segment in H2 following the launch of the new Toyota Hilux. A rise in excise tax is expected in January 2016, reports LMCA and this in turn is expected to trigger some forward buying. But the overall economic picture is not expected to lead to a sales improvement. Among the factors given for this is a tightening of rules imposed by finance companies on vehicle leasing. Strong industrial growth is helping to fuel 42% growth in car sales in Vietnam in H1 and LMCA expects the country to hit a new record of 210,000 units in 2015. Growth in the Philippines is also strong at 13% and LMCA predicts that car sales will reach 293,000 units this year and exceed that in 2016.
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New Hyundai H350
Driving up expectations Meet the new light commercial that’s been engineered to exceed expectations, not only on the roads of Europe, but also on your balance sheet. It combines car-like comfort with business-like efficiency, and smart technologies that deliver high levels of safety, stability and convenience. Five loaded Euro pallets can be accommodated, and the complete powertrain - from the 2.5 l CRDi engine to the smoothchanging 6-speed transmission - is specifically tuned to maximise drivability. And there’s the reassurance of a 3-year unlimited mileage warranty. The new Hyundai H350. A great place to work.
The 3-year unlimited mileage warranty is valid in all EU member states + EFTA. Warranty is subject to local terms and conditions. For more information, visit www.hyundai.com/eu