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INTERNATIONAL
FLEETW RLD All that matters in the world of fleet October 2016
THE NEW SEAT ATECA DRIVING YOUR BUSINESS FORWARD, WHATEVER THE TIME.
TECHNOLOGY TO ENJOY SEAT FOR BUSINESS
FOLLOW US ON:
SE AT.COM
Average fuel consumption: 4.2 - 6.2 l/100 km. Average CO2 mass emissions 111-141 g/km. Provisional data.
INTERNATIONAL FLEET WORLD A 4 S16 indd 1
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If you want to manage your fleet efficiently and transparently, you need to consider alternatives to traditional closed-end calculations. By unbundling the services in a pay as you go model, you’ll not only achieve targeted potential savings, but you’ll also capitalize on proactive services. What exactly does this mean to you? As a world leader in fleet management, ARI supports you in your ongoing operations, e.g. billing, remarketing, fuel cards, maintenance repair or damage claims. We will also meticulously optimize all processes based on big data concepts. And always, with transparency in the foreground, thanks to online access to all decision-relevant reports and with open accounting based on actual costs per month, vehicle and service module.
Discover a new dimension of fleet management. +49-711-6676-17100 | sales@arifleet.de
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contents
INTERNATIONAL
FLEETW RLD All that matters in the world of fleet October 2016
THE NEW SEAT ATECA DRIVING YOUR BUSINESS FORWARD, WHATEVER THE TIME.
TECHNOLOGY TO ENJOY SEAT FOR BUSINESS
FOLLOW US ON:
SE AT.COM
Average fuel consumption: 4.2 - 6.2 l/100 km. Average CO2 mass emissions 111-141 g/km. Provisional data.
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18:15
Chairman Jerry Ramsdale jerry@fleetworldgroup.co.uk
16 SPOTLIGHT: All-new Hyundai i30.
24 INTERVIEW: Opel’s Wolfgang Stahl.
32 Shell Eco-marathon innovations.
44 TESTED: New E-Class Estate.
Publisher Steve Moody steve@fleetworldgroup.co.uk Editor John Kendall john@fleetworldgroup.co.uk Deputy Editor Alex Grant alex@fleetworldgroup.co.uk Business Editor Natalie Middleton natalie@fleetworldgroup.co.uk Features Editor Katie Beck katie@fleetworldgroup.co.uk Sales Director Anne Dopson anne@fleetworldgroup.co.uk Sales Manager Harry Whyte harry@fleetworldgroup.co.uk Circulation Tracy Howell tracy@fleetworldgroup.co.uk Dawn Mitchell dawn@fleetworldgroup.co.uk Head of Production Luke Wikner luke@fleetworldgroup.co.uk Designers Samantha King sam@fleetworldgroup.co.uk
04 Fleet Review John Kendall reviews the EU’s low emission strategy. 06 Inside Knowledge Will tech developments mean increased vehicle pricing? 08 News The biggest stories from a month in the international fleet world. 16 Spotlight An in-depth look at Hyundai’s third-generation i30. 18 Software How modern tracking technologies can improve fleet efficiency.
Victoria Arellano victoria@fleetworldgroup.co.uk Web Designer Dan Desta daniel@fleetworldgroup.co.uk
24 Interview Wolfgang Stahl on the growing fleet appeal of Opel’s range. 26 Risk Management How new UN guidelines could influence fleet safety. 28 Fleet Focus How a strong economy keeps Germany’s fleet sector on top.
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
32 Interview Norman Koch on the innovations from Shell’s Eco-marathon. 34 Interview Telogis’ Sergio Barata on the future development of telematics. 36 Profile Ford’s focus on the lucrative SUV market and plans for electrification. 40 Launch Report Kia Optima Sportswagon / Citroën Grand C4 Picasso / Mercedes-Benz E-Class Estate / Lexus RX 450h F Sport.
STAG Publications
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To subscribe to Interational Fleet World visit: www.fleetworldsubscriptions.co.uk
48 Fleet in Figures Breaking down the latest global vehicle sales by region.
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fleet review This month, editor John Kendall dissects the EU’s low-emission strategy, while preparing for economy driving greatness...
EU low-emission strategy
Motor shows
The EU has produced a strategy for lowemission transport over the summer. It applies to all modes of transport, not simply road vehicles, which is a welcome change from excluding aircraft emissions from the reckoning. In fact the EU is working on a deal now to reduce aircraft emissions. The main elements of the strategy identify three areas for action. These include improving the efficiency of the transport system, by making the most of digital technologies, smart pricing and encouraging a shift to lower emission transport modes. Speeding up the employment of low-emission alternative energy for transport is the second area for action. This will include advanced biofuels, electricity, hydrogen and renewable synthetic fuels and removing obstacles to the electrification of transport. Finally the EU wants to see a move towards zero-emissions vehicles with an acceleration towards low and zero emissions vehicles. The EU says that by midcentury, greenhouse gas emissions from transport will need to be at least 60% lower than in 1990 and firmly on the path towards zero. Who could argue with any of this? Will individual governments get behind it though, or will they be looking for an advantage over their neighbours?
As I write this I am preparing for two motor shows in the next two weeks. First is IAA Hanover, which is possibly the largest commercial vehicle show in the world. Then it will be the Mondial de l’Automobile in Paris with several new cars making their debuts. Volkswagen will launch the new Crafter van at Hanover and Mercedes-Benz will have a concept light CV there too. We don't cover heavy trucks in IFW, but brand new trucks only come around every 15 years or so, because of the low volumes sold compared with cars. This year both MAN and Scania will launch new models. Although the cab is the most expensive element of a truck and Scania and MAN are both VW subsidiaries, I understand that the cabs are not shared in any way. Internal rivalry or were the designs too far developed when VW acquired them?
Emission control... The EU is targeting an acceleration towards low and zero emissions vehicles.
MPG Marathon 2016 Before the next issue of IFW, Fleet World Group (of which International Fleet World is part) will have staged the annual MPG Marathon. The title does not translate well into metric measurement, but it's all about teams trying to get the best fuel consumption they can on road routes using standard road cars. Last year I managed to break the 3.0l/100km barrier for the first time driving a Citroën Cactus BlueHDi 100 model. This year we shall be driving a Kia Niro, our first time behind the wheel of a hybrid. It will be a challenge as we shall have to quickly learn how to get the best from a hybrid, a completely different driving technique from driving a diesel, which is what we have mostly driven for the past 15 years or so. You can follow our progress at www.thempgmarathon.co.uk.
MPG marathon 2016
visit internationalfleetworld.com
04 / internationalfleetworld.com
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inside knowledge
Will technological developments increase global vehicle costs? The race toward emissions compliance and weight reduction in key global markets is estimated to create an incremental cost per vehicle of $744 USD (€667) globally between now and 2021, says Matteo Fini, senior manager, supplier solutions for IHS Automotive.
he regulatory environment around emissions the market. More intelligence will be applied to lighting will drive usage of lighter materials for composystems with camera- and sensor-enabled lighting nents and further electrification. New opportucontrols being installed in one in five vehicles by 2021. nities for suppliers are emerging through a variety of Increased content opportunities for suppliers are also powertrain technologies such as turbocharging and linked to vehicle connectivity with 4G and 5G network cooled EGR (exhaust gas recirculation) being impleavailability, which will allow OEMs to offer component mented in more cost-sensitive but higher volume health checks. Some OEMs are already introducing this segments, for example. technology on components like fuel pumps, batteries Comfort functions such as infoand starter motors – however, based tainment, vehicle connectivity on IHS Automotive analysis, wider and autonomous driving applications will materialise, within “Autonomous driving features may add an average of chassis, as an example. features could add $360 USD (€323) to vehicle costs Emerging markets also are when compared to 2015. expected to play a major role in incremental costs of Consumer demand is a signifidriving the average content $75 USD (€67) per cant driver of this incremental upward on a global basis, as cost as consumers crave to get consumers in these markets drive vehicle by 2021.” connectivity and active safety demands for higher levels of features in the new vehicles they sophistication for vehicles made purchase. Further integration of available locally. For example, the consumer electronics in the vehicle will for example increased use of digital and analog-digital instrument require OEMs to offer in-vehicle wireless charging. clusters in China alone is expected to generate $1.2 In addition, automatic air conditioning, passive entry billion USD (€1.08bn) in incremental business for systems and power seat adjusters are being deployed suppliers of this component by 2021. across several segments on a global scale – further Not all component areas will equally benefit from supporting greater penetration of well-established expanded opportunities, the analysis says. While for comfort features across key markets. example enhancements to powertrain subsystems Autonomous driving features could add incremenand electrification are anticipated to contribute tal costs of $75 USD (€67) per vehicle by 2021, led by approximately 37% to the overall component cost increased penetration of forward collision warning increase by 2021, interior hardware is expected to and emergency braking systems, according to the stay relatively flat. This indicates any incremental research; those values may increase further as regulacosts in some interior sub-systems will be balanced tion continues to drive more safety technology into by efficiencies in others.
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THE NEW OPEL MOKKA X
» LED headlights for 30 % brighter visibility* » Forward Collision Alert » Intelligent All Wheel Drive »
With premium-class innovations. *Compared to halogen headlamps. The listed features are optional/available with selected trim levels only. Fuel consumption combined 6.7–3.9 l/100 km; CO2 emissions combined 155–103 g/km (according to R (EC) No. 715/2007).
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opel.com
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NEWS_IFW_Oct16 20/09/2016 16:07 Page 1
business news
LeasePlan appoints new CEO and COO easePlan has appointed Tex Gunning (below left) as its new chief executive officer and Marco van Kalleveen (below right) as chief operating officer. The move comes as current CEO Vahid Daemi and COO Sven-Torsten Huster step down. Tex Gunning has extensive experience in supporting large global companies through to their next stage of development. He worked in global positions for Unilever for more than 25 years. His last role at Unilever was business group president in Asia and he also brings broad management experience at companies including Vedior, AkzoNobel and TNT Express. Marco van Kalleveen has management experience on a global level as a partner of McKinsey and in senior positions at Bain Capital and TNT Express. Mr Daemi said: “LeasePlan is in good shape, has a successful history and a continued growth path. This current environment presents a natural opportunity for me to pass the baton to a new CEO. I consider it a privilege to have led LeasePlan to its current market leadership and solid profitability. I am confident that CEO Tex Gunning and COO Marco van Kalleveen, together with CFO Guus Stoelinga and CCO Nick Salkeld, will form a strong Managing Board.”
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Knorr-Bremse launches CV telematics solution ommercial vehicle braking systems specialist KnorrBremse is to enter the CV telematics arena under a partnership with Microlise. The newly announced agreement between the two firms will lead to the launch of a range of fleet solutions under the TruckServices ProFleet Connect banner. These will initially be aimed at truck fleets but will later target lighter commercial vehicles too. Dr Peter Laier, member of the executive board of Knorr-Bremse AG responsible for the Commercial Vehicle Systems division, said: “With TruckServices ProFleet Connect, we are offering more than just a link between the vehicle and the fleet management system. We are delivering smart services which, based on the collected data, offer added value for fleet operators and drivers alike. And our telematics solution is not only modular, it’s also compatible with any make of vehicle.”
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Zipcar launches first free-floating car sharing service ar-sharing giant Zipcar has launched a new freefloating car sharing service in Brussels that enables members to pick up and drop off vehicles anywhere in the city. Available via the Zipcar app, the free-floating fleet service will extend from 100 cars at launch to more than 250 within the first month. The Zipcars – all Peugeot 208s – can be picked up and dropped off in and around the Brussels-Capital Region. The service will also be readily available to Brussel’s Zipcar members travelling to and from Zaventem Airport.
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Fleetmatics acquires Inosat elematics giant Fleetmatics has continued its European expansion with the acquisition of PortugalT based Inosat – Consultoria Informática, S.A. Inosat will add approximately 50,000 vehicles under subscription to Fleetmatics’ existing installed base. “Fleetmatics will greatly benefit from Inosat's market leadership in Portugal where it has built a leading brand and strong customer base,” said Jim Travers, Fleetmatics CEO and chairman of the Board. “With Inosat, Fleetmatics is also well-positioned to expand into adjacent geographies such as Spain and new territories in South America where Inosat has an emerging presence.”
ARI to drive North America sales under new appointments RI has announced new appointments in North America. Craig Pierce joins ARI as director of sales while Stephen Perkins becomes vice president, sales and assistant general manager for ARI Canada. ARI president Chris Conroy said: “As the industry’s technology leader, we are keenly aware that our business continues to develop and advance in the face of rapid change. Technology and people are ARI’s two greatest assets and we will continue to invest in both to meet the needs of our clients. The addition of Craig and Stephen are representative of these investments.”
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For the latest news, visit internationalfleetworld.com
Alphabet updates AlphaGuide app lphabet International has updated its AlphaGuide app with a host of features. The latest AlphaGuide version enables users to plan their individual trips using a variety of means, from bikes to public transportation or a car. It also provides information for travelling on foot. The app also syncs with the user’s calendar and real-time traffic information and will even inform when to start a trip in order to make the destination on time. In addition, Uber services such as UberBlack, Van or UberX, based on market availability, have also been integrated into the AlphaGuide. Furthermore following a successful pilot trial in several countries, damage reporting functionality is now available in all countries, where Alphabet offers its services (except Denmark). The app also locates the nearest petrol station, charging station, repair workshops or other service partners.
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fleetinquotes a few soundbites from a month in fleet
This is another milestone of our ‘Mercedes-Benz Vans goes global’ growth strategy. We have successfully entered 65 markets with new Vito since 2014, and we are convinced it will be as compelling to customers in China, too.
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Volker Mornhinweg, head of MercedesBenz Vans, on the launch of Vito in China.
Central Hudson drives productivity with FleetWave S-based electricity and natural gas provider Central Hudson Gas & U Electric has reported annualised savings of approximately $500,000 (€447,150) per year since implementing fleet management software
provided by Chevin Fleet Solutions. Central Hudson says it has also experienced an 8% increase in mechanic productivity (repair hours as a percentage of total hours worked) since starting to use Chevin’s FleetWave software in 2014. Michael Dooley, operations supervisor, transportation department for Central Hudson, said: “Using FleetWave has helped us make better business decisions for all our stakeholders.”
Senior executive changes at CHP Consulting HP Consulting has appointed chief operating officer Andrew Denton (left) as its new chief executive officer. The appointment comes as current CEO Andrew Page moves to the new role of executive chairman. In addition Vivienne Maclachlan has been appointed chief financial officer, and joins from PwC, bringing over 10 years’ experience with the Capital Markets team. Andrew Page commented: “It’s the right time for us to implement a new organisation to support our growth plans. I will continue to provide commercial oversight and strategic direction, and Andrew Denton will lead the company.”
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Customers look at their cars differently than us engineers, so we are looking forward to learning how they use these cars in their daily lives and what feedback they will give us.
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Erik Coelingh, technical leader active safety at Volvo Cars, on the launch of the Drive Me autonomous vehicle project in Gothenburg.
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Zipcar views success by the collective impact our community of a million members have had on the globe. With less cars on the road, cities can build more green space, reduce parking and congestion challenges and overall create a better place to live. Nicholas Cole, president, Zipcar International, on the company reaching one million members.
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A chauffeur with a pretty high IQ. DRIVE PILOT is making its debut in the new E-Class. The car’s innovative pilot and driver assistance functions make life so much easier for the driver and prevent hazardous situations. Experience the next step on the road to autonomous, accident-free driving. The new E-Class. The most intelligent business sedan in its class. mercedes-benz.com/fleet
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EVNEWS_IFW_Oct16 20/09/2016 14:19 Page 1
environmental news
More ULEV support needed, UK Government told he UK Government urgently needs to do more to support the ultra-low emission vehicle sector if it is to meet air quality and climate change targets, according to a new report. Issued by the Environmental Audit Committee, the report expressed concern that all departments are “weakening” their reporting of achievements and targets for sustainability, adding that the UK should continue to aim for European air quality standards, despite the Brexit vote. It also pointed out that the Government's own figures show it will miss its target of 9% of new car and van sales being ultra-low emission vehicles (ULEVs) by 2020, which are essential for meeting climate change targets in a cost-effective way. The EAC said it was also concerned that the Department for Transport (DfT) has no strategy to promote ULEVs – sub-75g/km vehicles with an EV range of 15km or more – after 2020. Going forward, the report suggests the DfT focuses on
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the health benefits, rather than economic advantages, of future investments. It is also advised to set out a clear post-2020 plan to support ULEV sales, to give a clearer remit for local governments to invest in sustainable transport, and to investigate whether it should take legal action against Volkswagen following the ‘Dieselgate’ scandal. Mary Creagh MP, chair of the Committee, said: “With the vote to leave the EU, there’s a material risk to our air quality targets. At the very least, the Government should commit to keeping existing European air quality standards.” The report closely follows the UK’s Treasury launching a consultation into company car tax from 2020 onwards, and ways to promote vehicles which are most likely to be driven on electricity. Early proposals suggest a system which bases taxation on their electric range as well as their CO2 emissions, with a view to encouraging manufacturers to develop the technology and to increase used volumes.
Hyundai planning hybrid i30 yundai will add electrified drivetrains to the third-generation Hyundai i30, adopting technology from the Ioniq range, in a move similar to Toyota with the Prius. Hyundai Motor UK’s president and CEO, Tony Whitehorn said the i30 will be part of a 28-strong alternative fuel line-up launching across Hyundai and Kia by the end of the decade, including electric, hybrid and hydrogen fuel cell models. This means the new-generation i30 could feature a performance plug-in hybrid drivetrain similar to the Kia Optima PHEV, or adopt a fully-electric or low CO2 hybrid drivetrain similar to the Ioniq. In the meantime, the Ioniq range – which launches as a
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hybrid and battery electric vehicle this autumn, and will gain a plug-in hybrid next spring – shows the potential of the brand’s electrification technology. Whitehorn expects it to open new doors in the fleet sector, helped by growing interest in alternatives to diesel engines and company car tax advantages for drivers. Hybrid and electric technology will play a wider role across the group, including potentially for luxury brand Genesis, he added. Currently engineered for Asian and North American markets, and thus equipped with large petrol engines, hybrid versions could mark a defining point which makes Genesis viable in Europe – similar to Lexus – without the need to develop a diesel for the region.
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For the latest EV news, visit evfleetworld.com
Cooled charging cables could mean faster EV top-ups wiss component manufacturer HUBER+SUHNER has developed a cooled EV charging cable, claimed to offer significantly faster topups without increasing the thickness of the cable itself. Designed for the new Combined Charging Standard (CCS) connectors, the company’s technology integrates a cooling circuit into the cable, which means it can handle high power loads for long periods of time without overheating. Today’s rapid chargers typically offer a maximum power output of 50kW, whereas the cooled cables can deliver a 350kW charge without requiring a thick, heavy and inflexible cable. In turn, it can help keep charging times low despite the increased capacity of the latest electric vehicle batteries. Frank Rothe, head of the automotive market unit at HUBER+SUHNER, said: “Our cooled cables and connectors will make rapid charge times for all electric cars absolutely feasible. With environmentally conscious vehicles becoming more and more popular in the mainstream, this is the next step in making purchasing an electric vehicle the norm.”
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in brief VW Group seeks Chinese EV JV The Volkswagen Group has begun discussions with China’s state-owned Anhui Jianghuai Automobile (JAC) over the joint development of electric vehicles in China. Their newly-signed memorandum of understanding is a first step towards a long-term partnership, including establishing a joint venture (JV) company which will research, develop and manufacture models for the local market.
Uber deploys first EVs in London Car hailing service, Uber, has deployed a fleet of Nissan LEAFs as part of an ongoing commitment to tackling air pollution in London and across the UK. Run in partnership with the Energy Saving Trust (EST), the study will examine the feasibility of running large numbers of electric private hire vehicles in the UK.
South Australia confirms 2,000-strong alt-fuel fleet
Lexus hints at Audi Q3 rival exus is to unveil a compact urban crossover concept at the Paris Motor Show, hinting that a rival for premium small SUVs such as the Audi Q3 and BMW X1 is in the pipeline. The UX concept was created at the brand’s European Design Centre, ED2, in France, reflecting a focus on a region where small crossovers have become big-selling models for Lexus’s closest rivals. Although unconfirmed for production, it would be a welcome addition to the range. Few details are available at the time of writing, but a production version would likely share its platform with Toyota’s forthcoming C-HR urban crossover and fit in beneath the NX in the line-up. The newcomer could also share the C-HR’s 1.8-litre petrol hybrid drivetrain, under the UX 200h badge, which would bring CO2 emissions below 100g/km.
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EV in numbers
56g/km CO2 emissions for the 456bhp Porsche Panamera PHEV, which has a 50km electric range.
Source: Porsche
The state of South Australia has set out a target for 30% of its government fleet – around 2,000 vehicles – to be lowemission models over the next three years. This will follow negotiations with a range of suppliers once purchasing agreements with Holden finish with local production next year.
Revived Fisker Karma PHEV is coming to Europe The Fisker Karma will relaunch as the Karma Revero. Its plug-in hybrid drivetrain is now sourced from BMW, instead of GM, and will be sold through existing dealers across Europe and North America.
613km Fully charged range of the Tesla Model S P100d
Source: Tesla
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NEWS_IFW_Oct16 20/09/2016 16:07 Page 3
manufacturer news
Hyundai unveils i30 hatch yundai’s third-generation i30 hatch will go on sale in the first H half of 2017, with CO emissions from 89g/km and a focus on driver appeal across the range. 2
A core part of the brand’s aims to be Europe’s number-one selling Asian brand, the range will bring three versions – a five-door hatch and estate, as in the outgoing model, and a coupe with a silhouette closer to the now-discontinued Veloster than the current three-door hatchback. The hatchback engine line-up range will include three 1.6-litre diesels, with 95hp, 110hp and 133hp, the latter two available with a seven-speed dual-clutch transmission (DCT). Depending on trim level, all of them emit less than 100g/km. Petrol options start with the 100hp 1.4-litre MPI, joined by 1.0-litre and 1.4-litre turbocharged units producing 120hp and 140hp respectively. The DCT is only offered on the most powerful version. Hyundai will also offer Eco versions of selected engine. The 110hp 1.6 CRDi is the most efficient model in the range, at 89g/km, while the 1.0 T-GDI Eco and 1.4 T-GDI Eco petrols emit 103g/km and 109g/km in their most economical versions. All figures are subject to final homologation.
in brief New Jaguar Land Rover Ingenium engines Jaguar Land Rover is to launch new four-cylinder Ingenium petrol engines. Available from 2017, the new engines are said to deliver up to 25% more power with fuel consumption reductions of up to 15%.
Volvo and Autoliv form autonomous driving JV Volvo and automotive safety systems specialist Autoliv Inc are to join forces to develop autonomous driving software. The JV is expected to have its first driver assistance systems for sale by 2019 with automated driving technology by 2021.
Europcar acquires Brunel Europcar Group has acquired Brunel, a London-based ride-hailing business, for an undisclosed amount. The move forms part of Europcar’s plans to develop a wider mobility offering for its customers.
New Peugeot 5008 to compete in large SUV segment eugeot has revealed its P new 5008, which has been transformed from its
MPV origins to compete in the large SUV segment. Arriving in spring 2017, the new model is built on the same EMP2 platform as the 3008 and brings a 2.84m wheelbase that’s 11cm than the extra model and 19cm longer than the 3008 SUV. Height remains the same at 1.64m. Boot capacity stands at a class-leading 1,060 litres in five-seat configuration while the layout brings three separate, folding seats in the second row that can be adjusted forwards and back as well as two removable, separate, folding seats in the third row. The 5008 can also be fitted with a foldable front passenger seat (to carry especially long loads up to 3.20m) and a hands-free automated tailgate. Engine choice covers four petrols and six diesels depending on the market. All models will be front-wheel drive only and CO2 emissions start from 117g/km for petrol and 105g/km for diesel.
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European fleet market records first drop in 2016 July brought the first overall decrease in volume this year for the EU-5 True Fleets Market, according to data published by Dataforce. The 1.4% loss over July 2015 reduced the YTD growth rate to +8.1%.
Ford buys Chariot Ford has acquired Chariot, a San Francisco-based crowd-sourced shuttle service, as part of plans to expand its mobility solutions. The business operates as a bridge between tax and bus services throughout the San Francisco Bay Area.
LIGHT YEARS AHEAD OF THE COMPETITION
The New ŠKODA Superb. 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.
www.skoda-auto.com
Combined fuel consumption and CO2 emissions for the Superb model: 3.8–7.1 l/100 km, 100–165 g/km.
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SPOTLIGHT Hyundai i30
An eye for an i The third generation Hyundai i30 has the qualities of a genuine fleet contender, with some very interesting variants on the way, reckons Alex Grant.
Mature design The first car to get Hyundai’s new, softer, styling, the i30 is slightly longer, wider and lower than its predecessor, despite an identical wheelbase. That’s underpinned by a stiffer, lighter chassis, which means it can run more comfortable suspension without compromising handling, and the steering is tuned to be more responsive too. The aim is to offer a more driverfocused experience. This is also the first part of a wide range of i30 variants. There will, of course, be a wagon shortly after launch but silhouettes shown at the preview event also suggest there will be a fastbackshaped coupe – closer in silhouette to the Veloster than the outgoing i30 three-door hatch. The i30 will also be the first Hyundai with a highperformance version, developed by the brand’s N motorsport division, which will act as a halo model.
Declinging diesels The hatch will launch with six engines, comprising 95hp, 110hp and 133hp versions of the 1.6-litre diesel, a 100hp 1.4-litre non-turbo, and 1.0 and 1.4-litre turbocharged petrols with 120hp and 140hp respectively. A seven-speed dual-clutch transmission will be offered on the 110hp and 133hp diesel engines and 140hp petrol. It’s likely that the 1.6-litre diesel with the Eco package will be the big seller with fleets; a more aerodynamic version with revised gearing and CO2 emissions from 89g/km, offered as an option on all trim levels. However, Hyundai sees diesel starting to lose its appeal over the coming years, in favour of electrification and small petrol engines. So the Eco package will also be available on the turbocharged petrol engines – CO2 for those will start at 103g/km – and the i30 will soon get hybrid and possibly electric drivetrains from the Ioniq too.
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First-class travel The i30’s cabin is perhaps the biggest generational step forward, finished with soft-touch materials and laid out around a large silver or black dashpad with a tablet-like touchscreen at the top. Hyundai is claiming segment-leading roominess, while boot capacity has grown slightly and now includes an under-floor compartment. Trim levels have not been finalised yet, but autonomous emergency braking will be standard equipment, and drivers will be offered a huge choice of assistance systems on higher models. All versions will get the touchscreen, though cars without navigation will get a five-inch version. From mid-spec trims, this will be upgraded to an eightinch screen with TomTom navigation featuring live traffic and weather updates via an on-board data connection, as well as the now prerequisite Android Auto and Apple CarPlay connectivity.
FLEET FACT Hyundai has sold over 800,000 i30s since 2000.
What we think... The Tucson has become Hyundai’s biggest-seller in some European markets, but the i30 is a core fleet offering. Though it’s a safe design, there’s a sense that this is a mature and familiar product that doesn’t need to shout too loudly, and that should slow the ageing process, which in turn will help residual values. The relative newcomer feels like part of the established set. AG
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FEATURE_Software_IFW_Oct16_Layout 1 20/09/2016 11:51 Page 1
FEATURE Fleet Management Software
Tracking fleet efficiency Tracking receipts or tracking mileage, fleets can realise new efficiencies by adopting modern technology, as Steve Banner reports. o matter whether they are in Rio de Janeiro or Rome, one thing is certain; employees driving on company business incur expenses, and sooner or later they will need to recoup any money they have spent. Only a minority of claims involve blatant, unabashed dishonesty. However the results of a study of the conduct of US and UK corporate travellers released by
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Battery-powered airmail DHL Air Express has a fleet of 35 battery electric BYD T3 vans at work in the Chinese city of Shenzhen.
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travel and expenses management software specialist KDS earlier this year show – perhaps not surprisingly – that many of them are more inclined to round claims up than round them down. Around 22% of the 1,000-plus people surveyed regularly round up their business mileage claims by between a mile and 10 miles per journey, says KDS. It points out that while this may not seem like a big
deal in the general scheme of things, it can nonetheless add up to a considerable sum of money in a major organisation with a large mobile workforce. When claims are made, 41% of the respondents said they still used timeintensive spreadsheets and 18% admitted that it took them up to two hours to complete their claim. While 73% of those quizzed try to keep
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“Around 22% of the 1,000-plus people surveyed regularly round up their business mileage claims between a mile and 10 miles per journey.” their receipts in one place – a wallet or an envelope, say – bits of paper can easily go missing. Either that or they can become torn, creased and possibly illegible as a consequence and the claimant may not easily be able to recall under what circumstances the expenditure occurred.
Tracking paper receipts 13% of respondents from the USA and 18% from the UK confessed that they struggle to keep track of receipts and end up with them everywhere, probably losing some. KDS’s Neo Expense package offers a sensible way of addressing the problem; use your smartphone to photograph the receipt whenever expense is incurred. The record thus created feeds in to an approach that KDS has developed that involves abandoning spreadsheets in favour of a system of icons overlaid on a calendar so that expenses can be related to journeys made and business meetings held.
If a company credit card has been wielded then Neo Expense’s AutoExpense function can be used to reconcile the receipt with the credit card statement. The result, says KDS, is that claims become a truer reflection of what has actually been spent thereby saving the company cash. From the employee’s viewpoint the whole process of making a claim is likely to be less painful – albeit a little less lucrative – than it has been in the past. Neo Expense could be especially useful to businesses that are increasingly encouraging employees to hop on a tram or catch the train – or even hire a bike – to get to their destination, rather than use a car. That could be where KDS Neo Travel comes in. A door-to-door corporate trip planning and self-booking solution for employees, it can be tailored to comply with the travel policy of individual companies and ensures that best-price preferred suppliers of travel services are selected. It also
Problem solving Software such as KDS Neo Expense enable easier, more accurate claims
helps firms meet their duty-of-care obligations – where lone workers are concerned for example – because managers will know exactly where employees travelling on company businesses are planning to be and when. Big businesses that have signed up to what KDS has to offer over the past year include Carlsberg and Societe Generale. The latter has 11,000 users across five countries relying on KDS for trip planning and self-booking.
Paper-free vehicle checks What Neo Expense is partly about is banishing pieces of paper from company administration. Addressing a different aspect of fleet operations, that is what Fleetio is attempting to do too. The Birmingham, Alabama, USA-based fleet software management specialist has come up with Fleetio Go. It is a mobile app that drivers can use to help them carry out a stage-by-stage inspection of their vehicles rather than use a clipboard, a pen and a sheet of paper. Especially well suited to light commercial fleets, it allows fleet administrators to choose from preformatted templates or build bespoke forms that include items that they view as particularly important. Drivers scan a barcode on the mobile device to start the inspection process. Any defects spotted can be reported, with photographs provided if necessary, and the need to deal with them can be highlighted in the vehicle’s maintenance schedule. “In effect what Fleetio is doing is offering clean, easy-to-use maintenance forms that don’t get lost in the shuffle,” says Central Florida Electric
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FEATURE Fleet Management Software
Tracking fleet efficiency... chief information officer, → Cooperative George Buckner.
Fleetio has a wide variety of fleet customers in North America including Canada’s Skedaddle Humane Wildlife Control. Operating 27 vehicles it specialises in the humane removal of urban wildlife – think squirrels, raccoons, skunks, and bats among others – in Ontario, Quebec and Nova Scotia. It uses Fleetio’s software to keep tabs on mileage, repair costs and fuel usage. “We’re making much more informed vehicle replacement decisions as a consequence,” says president and chief executive officer, Bill Dowd. Fleetio Go app Enables vehicles to be inspected using a smartphone.
Fleet utilisation If fleet cars spend a bit too much time in the workshop then they are not being fully utilised. The same can be said if they are driven to a head office, stay there every day throughout the working day and are then driven home again. “When you look at utilisation, the weakness of the traditional one-vehicle, one-user model is that quite often the vehicle sits in the car park doing very little,” observes Chevin Fleet Solutions managing director, Ashley Sowerby. One role that fleet software can play, he suggests, is to pinpoint such situations and see whether a more flexible alternative might be possible.
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If it is, then it will need to be managed by suitable software. “If you decide to operate a pool fleet for example then there is a range of tools within products such as our FleetWave and FleetWave Mobile that will help you with day-today booking, allocation and general management,” he observes. FleetWave for example features a pool car key control system pioneered in the USA but now in operation in Europe and Australia. If an employee requests a pool car and the request is approved, then a code is generated that allows the key to be retrieved from a locked cabinet. It makes keys easier to track. Earlier this year Chevin opened a new office in Lyon, France and published a global guide entitled ‘How to Become a Fleet Data Mastermind’. It reviews the benefits fleet software can bring and gives guidance to fleet managers when it comes to navigating technology and software advances to find the solution that best meets their needs. So much of the data fleet management software feeds on is of course generated by onboard telematics systems that monitor the whereabouts of vehicles and the behaviour of their drivers. The data they glean informs the reports fleets require. Oakville, Ontario, Canada-based Geotab has come up with eight new fleet management reports. They address everything from fuel costs and how they are being affected by, for example, excessive engine idling to maintenance and the importance of reminding drivers when vehicles need servicing.
Routeing and scheduling Also considered is the trip history of individual drivers. Looking at the routes they have actually followed – always subject of course to any restrictions imposed by local privacy legislation – allows you to see whether any routing and scheduling software you have acquired is working in practice. Acquired by Verizon Telematics for
$2.4bn earlier this year, Dublin, Republic of Ireland-based Fleetmatics offers a routeing and scheduling package under the Fleetmatics Routist banner. Users include Columbia, South Carolina, USA, steel distributor Dillon Supply. Operations manager, Ken Fentress, recalls that in the past deliveries were made in the order they were loaded, with drivers sometimes criss-crossing the territory several times. Some drivers were finished by 11.00am while others were out until 6.30pm, racking up overtime and still returning with deliveries they could not complete. Routist however takes all the orders and optimises the routes. “Now all our deliveries are being made on time so our customers are happy and our drivers are back at a decent hour so we’re spending less money on overtime,” says Fentress. It forms part of a portfolio of software-as-a-service solutions including Fleetmatics REVEAL+, which has recently been adopted by An Post, the Republic of Ireland’s postal service. It deals with everything from vehicle location and fuel usage to speed and mileage. An Post is using it to help manage over 900 of its units. Paragon Software Systems says that global demand for the routeing and scheduling software it provides is rising. Long active in Europe and North America, it has clients in Brazil and Colombia and opened a wholly owned subsidiary in Shanghai, China, earlier this year. It is active elsewhere in the Far East too. Recent adopters include Linde Malaysia, which is using what Paragon has to offer to optimise its distribution operation. It makes over 5,000 deliveries of packaged gases and chemicals a month. “It means we’re able to plan ahead with greater accuracy and provide nextday delivery for a large proportion of orders,” says Linde Malaysia’s bulk and cylinder scheduling manager, Hendrick Wong. “And our drivers are sent on the safest-possible delivery routes.”
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KIA OPTIMA SPORTSWAGON > TOuRER DE fORCE Joining the Kia line-up at the end of the year, Kia’s stylish new Optima Sportswagon is as desirable for drivers as it is cost-efficient for fleets. Athletic design Building on the design lead of the Optima sedan, the Sportswagon adds the flexibility of a tourer while losing nothing of its stablemate’s athleticism. Heavily inspired by the stylish SPORTSPACE concept car, its lean profile disguises the extra volume with a low roof, swept-back cabin and rising windowline, creating a practical day-to-day car with desirability at its core. Its long wheelbase and broad stance are highlighted by wide LED-lined rear lamps which cut into the tailgate and the same, optionally dynamicbending, headlights as on the sedan. Drivers can also add their own sense of style, with a choice of nine paint colours and two-tone alloy wheels measuring up to 18 inches in diameter.
Room for life New Optima Sportswagon enables Kia to compete for two thirds of this segment’s volume in Europe, and it’s optimised to provide all the flexibility your drivers’ work and home lives demand. Despite being no longer or wider than the sedan, the generous cargo area offers a capacity of 552 litres behind the rear bench, easily accessed via a low load lip and optionally powered tailgate. Interior practicality belies its sporty styling. The rear bench conceals a safety net to secure large loads, and folds flat in three sections to enable longer items such as skis to be stowed through the cabin. Sliding luggage rails on both sides of the boot mean the load area can be quickly divided into sections to hold valuables in place, and useful stowage areas include a wireless smartphone charger in the centre console.
For more information, visit kia.com/eu/future/kia-optima-sportswagon advertisement feature
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REMARKETING Germany
Younger managers opting online Thomas Andresen, Autorola Germany’s country manager, takes a look at the new and used car sectors in Europe’s largest market . he German economy is in excellent shape. GDP is expected to grow by 1.7% this year and 1.4% in 2017. Consumer confidence is high and unemployment remains at a multi-year low, with the only slight fall in the country’s business confidence coming from the recent decision by the United Kingdom to announce its plans to exit the EU. There are German owned carmakers such as MINI, Bentley and Rolls Royce producing cars in the UK but it is the huge volume of German cars being exported to the UK from the likes of VW, Audi, BMW and Mercedes that could be more of a concern. 26% of the UK’s 2.63m cars sold in 2015 were exported by these four German brands alone. A more immediate sign of the condition of the country’s economy is that German businesses are buying more commercial vehicles with sales increasing by 11% compared with the same period in 2015. This positive outlook is reflected in the new car sales statistics with growth of 7.1% recorded from January to June to 1.73m units. Volkswagen has a 20% market share with Audi, Mercedes, BMW and Opel taking up the next four positions in the top five. Like most European countries, the demand is highest for smaller fuel-efficient cars that are cost effective to own and run. Parking is another consideration for owners, particularly for those that live in urban areas where parking can be more restricted, which is why the Volkswagen Golf remains the country’s best selling model. “The country is very loyal to its German car makers as 7% of all workers in Germany are employed by automotive companies. Infrastructure changes are being made to reduce urban pollution in towns and cities to embrace the car rather than reduce people’s reliance on the car which is a different
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approach to some European countries,” explained Andresen. “Consumers and company car drivers still aspire to driving a German car, but that doesn’t mean that the market isn’t changing with a recent 9.8% increase in petrol sales. Petrol now accounts for 51.5% of new car sales compared with 46.9% diesel. Petrol is the market’s way of reducing emissions, not electric or hybrid cars as they are still struggling at just 1.5% of new cars sold,” he added. While the new car market is going from strength to strength Autorola is witnessing some changes in the used market with a growing appetite to use online remarketing from new young managers coming into the sector. These youngsters are more aligned to the use of technology to refine the used car sales process. The result is that many OEMs and banks now use online portals to sell some or all their used stock either to their franchised dealer buyers or to the wider wholesale market. “Generally the German car market is very conservative but the practicality and speed of online is definitely forcing companies to reinvent their remarketing strategies. We have seen this with the OEMs, banks and outright purchase fleets. Buyers too are slowly changing their buying habits with more used car managers buying from both online and physical auction depending on their current workload and time available,” said Andresen. Like many European used markets there is cross border activity where German dealers buy and import German branded used cars, especially from the South European countries of Italy and Spain, through the Autorola online channel. Generally these used cars are well equipped and priced attractively and help bolster the supply of used cars to help meet local German market demand.
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KIA OPTIMA SPORTSWAGON Responsible performance Optima Sportswagon offers performance to suit every journey. Its rigid, weight-optimised bodyshell and the same advanced, fully-independent suspension setup as the sedan provides precise handling and fast responses to driver inputs. Yet it’s also tuned to isolate occupants from rough road surfaces and, with a high level of soundproofing, contributes to smooth, relaxed long-distance cruising. Drivers can also opt for an electronically-controlled damping system, to tailor the handling to the road ahead. As in the sedan, the driver-focused chassis is matched to a line-up of efficient and responsive petrol and diesel engines. These include a 141hp version of the proven 1.7-litre CRDi, offering impressively low fuel consumption and CO2 with either its six-speed manual or quick-shifting seven speed dual-clutch transmission. Long service intervals and Kia's industry-leading seven-year warranty are included across the range, offering low ownership costs perfectly suited to your business's travel needs.
Kia’s intuitive latest-generation infotainment system with up to an eight-inch touchscreen, while voicecontrolled smartphone integration via Android Auto or Apple CarPlay keep hands on the wheel and eyes on the road. Live traffic, weather, speed camera and point of interest information, provided by TomTom, is provided free of charge for seven years. Intelligent technology also extends to driver assistance systems, including the Around View Monitor to offer an overhead view of tight manoeuvres, Smart Parking Assistance System which finds and actively steers into perpendicular or parallel spaces, and adaptive cruise control. Advanced safety systems also include active lane-keeping, emergency braking, blind spot detection and rear cross-traffic alert to put an extra pair of eyes on the road.
Tech savvy Soft to the touch and accented with metallic highlights, Optima Sportswagon’s high-quality cabin puts a wealth of technology within easy reach of the driver. It features
“Long service intervals and Kia’s industry-leading seven-year warranty are included across the range, offering low ownership costs perfectly suited to your business’s travel needs.” For more information, visit kia.com/eu/future/kia-optima-sportswagon advertisement feature
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INTERVIEW Wolfgang Stahl, Opel
New man, new models,
new business New Opel fleet boss Wolfgang Stahl explains how he sees the future to John Kendall. olfgang Stahl’s CV is a catalogue of extensive experience in the motor industry, stretching from Daimler to Mitsubishi and includes managing his own consultancy before taking up his current role as director european fleet, remarketing and used vehicle operations at Opel. Stahl succeeded Ian Hucker who became executive director sales for Opel Europe in 2015. He arrives at a time of great change in Opel’s product line-up. The Astra and Astra Sports Tourer have been the most recent additions to the product line-up and the Mokka X is due to arrive in showrooms soon. “Opel has really been back since 2012 when we introduced the restructuring and now we are getting the rewards,” he comments, “The volumes are coming, especially with the new models. Fleet is really supporting that growth as well, not only with the vehicles but also with the initiatives that have been started over the last few years. The really positive thing is that we are getting back into customers’ mind-sets and shopping lists.” Stahl gives the example of the Geneva Show earlier this year, one of the first big events he attended after joining Opel. “Even bigger fleet customers called. They just knocked at the door without an appointment and said they would like to talk. I think the Astra helps us tremendously, especially being announced as the Car of the Year,” he says. “I also think it gives us feedback about how Opel is being seen again.” Opel is now seeing how the Astra Sports Tourer has been selling since its launch. “It’s a typical fleet segment car outside the UK. The customer order intakes are really promising. You know that fleet customers don’t order tremendously in advance because they like to see the car and drive it. But right now we’re seeing a massive ramp up on the fleet side for the Sports Tourer.” Stahl knows that the challenge that Opel has is to get
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Broadening appeal Astra Sports Tourer is gaining popularity with business drivers.
people to drive their cars again and experience them for themselves, “Just drive it, put yourself in a Vauxhall or Opel car, drive it and make your own assessment,” comments Stahl, “The image was weak but is returning. As you know, you can make a great brand campaign but in the end, the car counts and that’s what people are noticing – the quality, the touch and feel, the way the car drives and all our new cars are basically supporting that story as well, step by step, by step. As I said to my team, Opel is not on its way back, we are back.”
Premium options “When I look at my core responsibility, which is fleet, there are more cars to come and more with fleet relevance, but we are already seeing what the Astra is bringing. What’s really interesting to see is how the Astra is picking up on premium options. We didn’t expect to see the take-up rates for example on the LED matrix headlights, or with OnStar. We never expected that so many customers would take it and it’s not only retail, the fleet market is taking it too.” In fact, because so many fleet customers ordered LED matrix headlights, it meant that delivery times were extended and the Opel fleet team was concerned that customers would not be prepared to wait. Fleet marketing managers discussed the issue with their customers but found that they were quite prepared to delay. “We asked if they wanted to change their order to get the car earlier, but they said, ‘No, we will wait’,” says Stahl. Like other manufacturers, Opel has launched a series of downsized, turbocharged petrol engines to help reduce fuel consumption and CO2 emissions. Opel has brought it’s 3-cylinder, 1.0-litre engine to the market later than most rivals, but while it is being well-accepted, fleets still have a preference for diesel engines with their low CO2 emissions. “It has a share in fleet, but fleet is still dominated by diesel,” comments Stahl, “We see a change already in the mini and sub-compact sectors, so I wouldn’t be surprised if we see some shifts here and also in the other segments because of all the diesel discussions and maybe legislation in the bigger cities. We have to take a look at this because some cities are thinking about it, even in Germany in bigger cities like Stuttgart.”
OnStar’s fleet appeal OnStar was launched in Europe last year, although the system has been operational for GM customers in North
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“You can make a great brand campaign but in the end, the car counts and that’s what people are noticing.”
America for over 10 years. OnStar comes to Europe when smartphone connectivity in cars is something that more drivers want. “It was focused at the beginning on the driver and we immediately saw a huge interest from the user-choosers,” says Stahl, “They saw all these services, from the safety and convenience side – the download of locations, up to Wi-Fi and also the safety aspects such as eCall, if you have an accident, or roadside assistance. We have already worked on a solution for small enterprises. What was also interesting for me was the number of big fleets, rental and also bigger corporations, who see other revenue streams in that business. They see our solution without any hardware or telematics needed. They can run business models and our OnStar team is currently working on some interesting projects and I can see that there are more things to come. So the connectivity of the car brings not only cost reductions, but opens up possible revenue streams.” Mokka has been a success story for Opel in both fleet and retail sales and with SUVs now making up the fastest growing sector for car sales in Europe, it is not surprising that Opel will be launching others. “Before 2020, there will be a new flagship SUV from Opel,” says Stahl, “It will be produced in Germany at the Russelsheim plant. We need to have an entry because that sector is growing.”
Light CV Opel’s light CV ranges are being revised with Euro 6 engines for the Vivaro and Movano ranges, “All three current lines are working well,” says Stahl, “Last year, the team here around Steffen Raschig (the CV director for Opel and Vauxhall), has spent a lot of time establishing a conversions project. We saw a slight disadvantage in our conversions strategy and that’s what has been changed now. We have signed a lot of pan-European converter agreements, from single invoice solutions directly from a site next to the plant to two invoice solutions (where national sales companies use approved converters for less popular conversions). “We are also looking at our business centres, looking at the specific needs of the dealerships that have a business centre responsibility. What do van customers want? What services, opening hours, personal sales people? And looking at coming out of the dealership to visit the van customer. So these are the little steps that are helping us to support that growth that we have planned and I think we still have a lot of room for manoeuvre.”
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How risky is your fleet... and your drivers?
FEATURE Risk Management
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A resolution adopted by the UN General Assembly earlier this year seems set to raise the standards under which eet vehicles are driven, operated and managed around the world, reports Dave Moss. he resolution asks Member States to develop policies to decrease workrelated road traffic crashes, allowing the introduction and enforcement of international safety and health standards through adequate road risk management. Today, while fleet operational standards are generally improving, safety and health law covers driving incidents to different levels in different countries, and published evidence suggests improvements could reduce casualties. The World Health Organisation forecasts that road crashes will be the fifth leading cause of death worldwide by
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2030, while the European Transport Safety Council (ETSC) says business use of roads in its region is already the leading cause of work-related deaths and injuries, estimating that 60% of all work accidents resulting in death are road crashes.
Assessing road risk Recent UK Department for Transport data indicates those driving for work are up to 40% more likely to be involved in collisions than other drivers. In 2012, the Queensland Centre for Accident Research and Road Safety (CARRS) found work-related road crashes
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“Governments, the insurance industry, vehicle manufacturers, fleets and road safety professionals all have a part to play to improve standards across the globe.” accounted for 33% of all occupational fatalities in Australia – amounting to 15% of the country’s national road death total. It also found many employers, while addressing risks in other business areas, did not properly address those related to driving. With experience in fleet and driver health and safety law dating back many years, one of the few organisations operating across the globe providing best practice training in fleet operations and driver risk assessment and management is RoSPA. Their fleet safety audit manager, Chris Knight, agrees with the CARRS research findings: “Its fair to say,” he says, “that for many organisations in many different countries, risks arising from driving for work have not been addressed to the same quality level as other health and safety matters”. Vikki Woodfine, partner and head of
road haulage & logistics at international law firm DWF, also agrees – pointing to possibly serious – and costly – outcomes. “All employers have a duty of care to their employees, including drivers,” she says. “But driving has long been sidelined among some fleet operators as far as health and safety systems are concerned. There are many potential corporate criminal liability issues when it comes to serious work-related traffic incidents, and authorities are increasingly interested in investigating them.” Asked how the current situation might be improved for business drivers in general, RosPA’s Colin Knight believes the process must start at the top of every company. “Having driver and fleet safety firmly on the agenda during senior management meetings, and strong leadership, is crucial within organisations. A blend of educating managers and drivers, the right technological solutions and commitment to the law must all play a part in the road risk management system.”
Is technology the key? Today, technology is establishing itself as a central key to professional fleet operations. So-called telematics are increasingly used as a vital tool to improve driver safety, manage risks, keep control of running costs, improve all round operational efficiency – and more. Research earlier this year by RAC Business confirmed a link between growing telematics use in the UK and reductions in ‘at work’ driver incidents. Almost 38% of the 500 fleets surveyed reported using telematics, with 43% saying it supported their ‘Duty of Care’ policies. Driver and financial benefits were clear: 52% said technology had reduced collision numbers, while 58% noted less speeding incidents and fines. The range of available systems is wide, and they can deliver vast amounts of data. Radius Payment Solutions operates telematics services in 11 European countries, and its head of sales, David Mountfield, says: “Though often used as a ‘live’ cost-saving tool linked to fuel consumption, telematics has a place encouraging drivers to operate as safely as possible. It can monitor speeding and influence harsh driving styles, and, for lone workers especially, it can offer peace of mind. It can also produce data to develop fleet policy and training programmes – and help drivers involved in incidents or
collisions prove their innocence.” More versatile technology is driving new solutions to old fleet management problems. TomTom Bridge offers an open driver terminal, linking to the Belgium based company’s traffic and navigation data – easily allowing and supporting fully connected specialist applications for individual fleets. Sebastien Ruffino is the company’s business-to-business vice president: “One of the biggest workrelated traffic issues today is congestion,” he says. “It has implications for driver health, but at a business level there’s also a productivity and environmental impact. Having access to real-time information on road conditions will reduce that, improve driver journeys and contribute significantly to greater safety.”
ISO certification For organisations wishing to demonstrate a professional approach to workrelated road safety management, the International Standards Organisation defines purchase, use, safety and fleet policies in ISO39001. Organisations in Japan, Turkey, Oman, and India are amongst limited numbers so far achieving certification – perhaps because very high fleet operational standards can also be achieved independently. Last year Romanian oil and gas company OMV Petrom took a top ETSC award for their safety programme, which introduced an integrated vehicle monitoring system covering 10,000 drivers. The fleet has had no road-related deaths or serious injuries for three years, and the company is now working to ensure its contractors meet similar high road safety standards. As emerging economies evolve, business vehicle numbers and driver risks are rising. The latest UN resolution puts new pressure on governments to improve atwork driver safety, but changing attitudes, approaches and standards will take time. RoSPA’s Colin Knight sees continuing fleet risk reduction as a project crossing many boundaries: “A change in safety management legislation and an international standard achievable by all, linked to education programmes and specific safety and efficiency targets, would certainly improve fleet safety management quality,” he says. “But Governments, the insurance industry, vehicle manufacturers, fleets and road safety professionals all have a part to play to improve standards across the globe.”
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FLEET FOCUS Germany
Fleet drives the market The strong economy ensures that Germany has the largest car market in the EU, which is strongly reflected in the fleet sector, reports John Kendall. ermany is the single largest market for car sales in the European Union. For the first six months of 2016, (H1), data from the European Automotive Manufacturer’s Association (ACEA), shows that 1,733,839 new cars were registered in Germany, which represents 22% of new car registrations in the EU in that period. Data from the German Association of International Motor Vehicle Manufacturers (VDIK) for January to August 2016 shows that total new car registrations in Germany rose to 2,257,781, an increase of 5.73% compared with the same period in 2015. “The fleet market is the most dynamic segment,” says Karsten Rösel, general manager of ALD Germany, referring to the market for new cars in Germany. Fleet growth has been greater than 10% so far this year. Compared with the growth for overall registrations, fleet business has grown at nearly twice the rate. Ursula Wingfield, CEO
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of Alphabet Germany says that company vehicles account for a very high proportion of all vehicle registrations. Alphabet saw the number of existing contracts increase by 7.3% to over 143,000 in 2015. FLEET SECTOR EXPANDING Alphabet quotes Dataforce in terms of overall growth of the fleet sector in Germany. According to Dataforce, new fleet car market registrations reached a new peak level, growing by 9.9% to 786,723 registrations in 2015. “While the number of new private vehicle registrations has been decreasing for quite some time now, the company car market in Germany has been recording clear growth for several years,” says Wingfield, who expects this increase to fuel further growth as these cars will need to be replaced in the coming years. Referring again to 2015 data, Wingfield reckons that private registrations
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Top 10 Car Registrations Germany: January – August 2016 Manufacturer
Volume
Change % 2016 Share %
Volkswagen
451,997
-1.37
20.02
Mercedes-Benz
207,128
8.25
9.17
Audi
205,125
10.84
9.09
BMW
172,628
6.55
7.65
Opel
163,900
8.07
7.26
Ford
161,901
10.59
7.17
Skoda
123,317
1.91
5.46
Renault
78,490
10.84
3.48
Hyundai
71,337
4.59
3.16
SEAT
62,699
-1.72
2.78
Source: VDIK
accounted for 1,098,000 cars, representing a 0.1% decrease compared with 2014. Rösel at ALD reckons that fleet registrations account for 33% of the total car market. it is also worth noting that while German brands dominate the overall car market with a 63.61% market share (VDiK January – August 2016), the strength of the premium sector is particular striking. Mercedes-Benz is the second best selling brand in the country, closely followed by Audi, with BMW not far behind. These three brands alone account for 26% of the new car market. Despite VW’s self-inflicted problems, the VW Golf is still the best selling car in Western Europe. LARGE MANUFACTURING SECTOR Germany is also the largest manufacturer of motor vehicles in the EU, with Audi, BMW, Ford, Mercedes-Benz,
Mini, Opel, Porsche, Smart and VW all producing cars and light CVs in the country. Mercedes-Benz, MAn and iveco also produce trucks and buses in Germany. Altogether, ACEA listed 46 plants in 2014: 13 engine plants, 25 car assembly plants, five LCV assembly plants and three bus assembly plants. Only Russia and the UK come close to this total with 34 plants each, according to ACEA. Just as Germany dominates the European car market, Volkswagen dominates the German car market, with a market share of 20.02%, outselling Mercedes-Benz, its nearest rival, by 218% in the January to August period. Volkswagen has seen sales fall this year, almost certainly as a result of the diesel emissions scandal that came to light in September 2015. VW registrations in Germany have fallen by -1.37% from 458,282 in the January to August period in 2015, while VW’s market share has fallen from 21.46% to 20.02%. That said, if we consider total VW Group registrations, i.e. Audi, Porsche, VW, SEAT and Skoda, total registrations this year have grown by just over 15,000 to 863,969. Given the dominance of VW in the German market, the reduction of 6,285 registrations so far this year, is a comparatively minor event for VW. Ursula Wingfield reports that, “Aside from individual customer enquiries, the current discussion has not had any effects on our business at present. neither in order levels for new cars nor in the marketing of used VW vehicles are we detecting a reticence on the part of our customers.” That seems to be ALD’s experience too. in terms of demand for diesel, Rösel says it is difficult to see any change, “it looks like petrol engines are coming up a little bit stronger, picking up market share, but not significantly.” “What we see is that Volkswagen is lacking in demand and reacting with a severe pricing initiative. There are a lot of subsidised offers, such as maintenance and repair at 70-75% discount for fleets.”
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FLEET FOCUS_Germany_IFW_Oct16_Layout 1 20/09/2016 14:24 Page 3
FLEET FOCUS Germany
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FUEL AND DRIVER TAXES “Taxation plays a major role in today’s fleet market,” he says, “There are two levers here driving the market; one is the diesel market, which is very much driven by the lower tax for diesel fuel. Today diesel is around €0.20 cheaper than petrol, so that automatically brings down the price per km, but this is not over-compensated for by the higher cost of a diesel model. “The second lever is what we call the 1% tax,” continues Rösel. Company car drivers are taxed at 1% of the list price (including VAT) as a monthly tax on their salary. “If you have a car that costs you €40,000 including tax, your salary goes up by €400, and from that you pay about €150–€180 in tax. We say that half of 1% is what you pay extra in taxes. That’s not completely correct but it’s a good guide.” Ursula Wingfield (left) at Alphabet identifies some other characteristics of the fleet market in Germany, “The German fleet market is characterised by a strong influence of finance and leasing companies owned by manufacturers. In Germany, more than elsewhere in Europe, the manufacturer and its leasing arm are often regarded as one marketing entity, both by the customers and by the people working in and with the industry.” As in other parts of Europe, the car market is changing, and as much for company car drivers as others. “Demand for SUVs is growing,” says Rösel. Company car policy will determine whether or not drivers can choose SUVs, though. “You could say that the classic C and D-segment station wagon that used to drive the German fleet business for some decades is losing market share. There is still demand for the classic station wagon, but it is much less than it used to be a couple of years ago.” Wingfield sees other trends among its customers, “For many drivers, the company car remains a status symbol. It is expected to provide comfort and to have a representative role. That is why, first and foremost, there is a strong demand for limousines – among our customers this is typically the BMW 3 series and the BMW 5 series. Yet more and more companies are going for efficiency and sustainability in their fleets, introducing a car policy that matches this. That is why, alongside models that have more modern engines that consume less while providing equal performance and being as much fun to drive, they are also increasingly bringing electric vehicles (BEV and PHEV) into their fleet. For instance the BMW i3 is very much in demand.”
EV AND PLUG-IN HYBRID SUBSIDY The growing demand for EVs is partly driven by a recent change in German Government policy. In May 2016 the German government announced that it would introduce a subsidy scheme for purchasers of pure electric and plug-in hybrid models. This was organised as a rebate of €4,000 for each EV buyer and €3,000 for each plug-in hybrid customer. In both cases, the vehicle manufacturer concerned must contribute at least 50% of the rebate, with the Federal Government providing the balance. The scheme was introduced in July and by early August, VDIK says that some 2,128 applications for the rebate had been made, mostly from private customers. Rösel has seen very little effect on the market for electric and hybrid cars in fleet as a result. “The manufacturer with the highest potential in that segment is certainly Toyota, which has a full hybrid fleet,” comments Rösel, “But Toyota has not really entered the fleet market, so the market penetration from Toyota inside and outside the hybrid sector is very low. Maybe they are coming in now, stronger than they used to before. Other than that there are a few cars from German manufacturers, but for electric cars, we just don’t have the infrastructure. Charging stations are a big issue. Mild hybrids are OK, but if you don’t have a charging point at home and at work, it is very difficult for plug-in hybrids and EVs and range is limited.” Alphabet’s experience is different. “More and more companies are integrating electric vehicles into their fleets,” says Wingfield, “The framework conditions that apply to eMobility in Germany have become significantly more attractive. By now, almost all renowned automotive manufacturers have electric vehicles in their product range. Simultaneously the infrastructure in cities and regions is being expanded on an ongoing basis. “Throughout Germany, and notably with regional projects in Berlin and Hamburg, Alphabet has put more than 1,000 evehicles on the road within the framework of the financialsupport projects. Since 2013, with AlphaElectric, Alphabet Germany has been offering a comprehensive complete solution for integrating eMobility into corporate fleets in an uncomplicated way. This includes the right drive concept, a suitable e-vehicle and a suitable solution for charging – it also provides a package consisting of additional, separately bookable services. That way, each customer gets exactly the offer that is needed.”
Going electric The BMW i3 is very much in demand in Germany as fleets look for more efficient and sustainable vehicles.
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IAM_Germany_IFW_Oct16 20/09/2016 14:25 Page 1
IAM REPORT Germany
Driving in Germany Driving advice for business travellers from IAM RoadSmart. f you drive on business in Germany, you will be fortunate to travel in one of the most sympathetic countries in the world when it comes to motoring. Well-planned and smooth roads, excellent and logical signage and wellmannered and polite drivers are what you can expect here. But as with every country, there are local variations – and the law is strictly enforced, so don’t try to flirt with it. Generally an international driving licence is not needed for renting a car in Germany, and a valid European licence will be sufficient. If your driving licence was issued by a European Union country, you can use it with no limitations. If your licence was issued by a country that is outside the European Union you can use it for six months from your entry date. If you plan to stay in Germany for over six months, you can obtain a six-month extension to use your existing licence. You must carry your legal documents at all times, including a photo ID. When driving in Germany you must have proof of third-party liability coverage for all damage or injury to another person, car or object. Collision or comprehensive insurance isn't required by law. Seatbelts are mandatory for passengers sitting both at the front and rear – again this rule is strongly enforced. There is a €30 on the spot fine for each person in a car not using a seat belt. Drinking and driving laws are strict; the legal amount of alcohol allowed in the blood is 50mg. In Germany, a driver can be forced to submit to a blood test. Drivers exceeding this limit will be fined and face a licence suspension of up to three months for the first offence.
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Do take notice of the speed limit variations. In built-up areas it’s 50km/h, for two-lane highways it’s 100km/h, for expressways or motorways it’s up to 130km/h and for autobahns there is no speed limit. Many towns and villages enforce a much lower speed limit in residential areas, usually 30km/h, for the protection of children and pedestrians. These limits are often enforced by automatic cameras. The lanes have painted numbers to show the speed limit of that particular area. If you are caught by one of these your fine will come in the post often two to three months later. The offences system in Germany is a tough computerised point-based system. The more offences you commit the more points you accumulate. When it reaches a certain number, your license will be temporarily or permanently taken, and you might be asked to join a safer driving class. Unless otherwise posted, the driver coming from the right at an intersection has the right of way, even if you are on what looks to be a major road, you may not be on the ‘priority’ road. A diamond-shaped sign (yellow in the middle surrounded by a white border) tells you if you are on a priority road. If you're involved in an accident you must not leave the scene for at least 30 minutes if alone. If you are involved in an accident with others, you must exchange personal and insurance information. Leaving the scene of an accident can lead to severe financial penalties, and depending on whether personal injury to others or extensive property damage is involved, you could be placed in custody or lose your licence.
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IVIEW_Shell_IFW_Oct16_Layout 1 20/09/2016 12:08 Page 1
Eco-marathon Europe 2016
Shell Eco-marathon develops tomorrow’s engineers From the crazy to the practical, Shell Eco-marathon technical director, Norman Koch, welcomes the student ideas the event brings out.
he Shell Eco-marathon is one of the longest running energy efficiency challenges in the world, dating back to a wager between Shell Oil company employees in the USA in 1939 to see who could travel the furthest on the same quantity of fuel. The event has been developed considerably since then and since 1985 has evolved into its current form. Today there are three events staged each year in three regions of the world; Asia, the Americas and Europe. This year the Asia event was first, set in the Philippines capital, Manila, followed by the Americas event staged in Detroit in April, then finally the European event held this year in London at the Olympic Stadium, at the end of June. Vehicles participate in two classes: Prototype and UrbanConcept. Those in the Prototype class are designed for maximum efficiency – passenger comfort is of secondary importance, while practicality is the aim of the UrbanConcept class. Reflecting current powertrain developments, vehicles can be powered by internal combustion engines or electric
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power. Fuels can include petrol, diesel, or liquid fuels produced from natural gas or ethanol. Hydrogen fuel cells or batteries are the power sources for electrically powered entries. Norman Koch is the technical director of the Shell Ecomarathon and has been passionately involved with the event for 15 years. “The Shell Eco-marathon is a student engineering competition for fuel efficiency,” explains Norman, “We invite university and high school students from around the world to design nothing more and nothing less than the world’s most fuel efficient vehicle. The whole purpose of it is to get them to design, build and then eventually test-drive their vehicles. “The objective is two-fold; firstly to create more interest in science, technology, engineering and maths – the STEM subjects. The second is to put the focus on the energy challenge we are all facing – basically having to produce a lot more energy in the coming years to meet the needs of the growing world population, while drastically reducing CO2 emissions. That can only be achieved by running our vehicles more efficiently and finding new energies that can do that and help that purpose.”
IVIEW_Shell_IFW_Oct16_Layout 1 20/09/2016 12:08 Page 2
“The engineers of the future will need to know more and work on more diverse technologies.”
In the 15 years since Koch became involved in the event, fuels and powertrains have developed considerably to deliver cleaner petrol and diesel engines that also consume less fuel, while we have seen the beginning of vehicle electrification as hybrids have developed. “The first thing that I have personally learned is that there is no idea that’s too far fetched and no idea too crazy that a clever and creative student would not try to implement,” he observes, “We have seen so many weird and wonderful ideas that have come to fruition which in many cases looked crazy and may not have yielded any material success, but equally have led to great innovation and led to great results. “It is by no stretch of the imagination a soapbox race. We see teams here that do well over 3,000km on a single litre of fuel. Going from London to Rome and back on a single litre of fuel is no longer playing around with toys. There is serious engineering, as well as research, development and collaboration with industry partners and academia going on, otherwise you would not achieve these phenomenal results.” Koch meets students from all around the world and he reckons that regardless of where they are from, they have a lot in common, “When I give lectures in Riyadh in Saudi Arabia, or in London, the students have the same creative ideas, they have the same appetite for success and for delivering their ingenious ideas and I think that was a very heartening thing to have learned.” Energy and mobility are possibly the key factors that students are dealing with in the Eco-marathon. Experience from the event leads Norman to conclude that where energy sources and drivetrains are concerned, we should expect greater variety in the future, not less. Our dependency on petrol and diesel engines will have to change with pressure for cleaner air and the need for alternatives. “What we will see is that the engineers of the future will need to answer to a lot more questions than they probably have in the last 10 decades. They need to know more and they need to work on more diverse technologies.”
First Eco-marathon autonomous vehicle At the London event at the end of June, the first autonomous vehicle took part in the Shell Eco-marathon. “We took an urban concept car that meets the standards of the competition and worked together with our colleagues at Oxford University who have created a semi-autonomous vehicle that was able to drive around the track entirely by itself,” says Koch, “The reason we did that was not to show that we can do it too, or Oxford can do it too, the main reason was that it is a state-of-the-art technology and it’s still very much in its infancy. “We want to encourage and inspire our students here in Shell Ecomarathon Europe, America and Asia and say to them that by 2018 we will have an autonomous category on top of the current Prototype and UrbanConcept categories in order to give you a challenge and say that after 30 successful years of Shell Eco-marathon it is time for us to raise the bar significantly to the state-of-the-art challenges of today. The reason that we are doing this is for very much the same reasons that we look into the diversity of energy. Car technologies will dramatically change over the coming decades and one of the changing influences is autonomy. “There is connectivity and finally autonomy because the challenges are not even fully understood yet. For example, we all see autonomous vehicles as a bit funky, futuristic,” he says. “The true consequences of this technology are much, much harder, especially for the automotive industry. People do not feel the need to own a car any longer because every car that they may like can come to them in minutes. When you order your commuter car, or when you go on holiday with your family, you will have a car that comes to you. If you look at car pools today, they are never in the place where you want them, or where you need them. “How to design their cars and how ownership models develop will mean a big change for automotive manufacturers. This is exactly what the engineers working here on the Eco-marathon will have to work on in their careers, to answer these problems that we don’t even understand yet. We want to sensitise them and make them aware that there is a world of challenges out there that need addressing.”
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IVIEW_Telogis_IFW_Oct16_Layout 1 20/09/2016 14:52 Page 1
INTERVIEW Sergio Barata TELOGIS
the mobile
FUTURE Sergio Barata of Telogis tells John Kendall how he thinks telematics will continue to develop.
ord and Telogis announced earlier this year that the two companies would be extending their exclusive partnership to include bringing telematics products to the Ford light CV range. The UK was the first market to be offered Ford Telematics for LCVs, with other European markets following over the summer. Using Ford Telematics, fleets would have information on vehicle location, driver behaviour and fuel consumption. The agreement would build on the experience of Ford Telematics in the US and Canada. Offered as a dealer fit option, data would be transmitted securely from the vehicle to a dedicated Telogis website, using a cellular connection. Information available to fleets includes data on oil change warnings, water contamination of diesel fuel, tyre pressures, seat belt use and airbag status. Telogis is already looking at rolling the system out beyond Europe, as the option comes on stream, “My colleagues in Australia are also starting to look at a programme for the Asia Pacific market as well, says Sergio Barata, Telogis general manager for Europe, the Middle East and Asia, “So it has been a successful programme and certainly a partnership we can take forward with Ford in the coming years.
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Working with OEM installed systems and developing software for mobile devices are both important developments for Telogis.
IVIEW_Telogis_IFW_Oct16_Layout 1 20/09/2016 14:52 Page 2
Business optimisation
GM partnership “In the US we also have a partnership with GM,” continues Barata. Telogis is the telematics partner for GM’s OnStar programme. “In the US, GM has been delivering concierge services built around the vehicle for quite a while and we have been able to tap into the infrastructure and then offer commercially-minded fleets the opportunity to use that infrastructure as well.” Telematics systems are changing rapidly as the smartphone becomes central to mobile communications. Barata sees several trends emerging, “People are trying to avoid the operational cost and complexity of installing aftermarket devices and certainly from our time with Ford, we have really seen the upside of having an OEM-engineered and endorsed solution on the vehicle. Just the access to the additional data drives additional benefits, additional ROI (return on investment) to the end customer and if you can have that fitted at the dealership or the factory, it brings additional opportunities in terms of less downtime, and so on. “I do think that mobility is going to play a much, much bigger role going forward – smartphone technology, application driven interaction with employees and folks who are delivering services etc. Telematics is just going to become completely integrated into that landscape, which is something that we have done for years.
“We initially started out as a telematics company and realised that even if our customers optimised their vehicles and optimised the running of those vehicles, there were far more important opportunities to optimise their business. Bringing in elements like scheduling and planning and territory planning, then leveraging the telematics data information, vehicle-centric information and now more recently bringing in mobile apps and allowing the ‘edge’ of the business to play a role in collecting information and driving decisions is really a good strong opportunity for the enterprises and the fleet target to improve.” Take-up for telematics is greatest for heavy truck fleets and still runs at around 15-20% for light CV fleets, while even fewer car fleets tend to be telematics users. “In the heavy vehicle sector it’s driven by compliance and the additional fuel savings,” says Barata, “Obviously the fuel consumption is going to have a significantly bigger impact on the bottom line than an LCV. We think the passenger vehicle space is an area where we will see quite significant growth.” Barata sees Telogis developing in several ways over the next few years, “I see us continuing to focus on the development of the platform. This is a proven strategy for us in terms of delivering value to the enterprises we work with. We are working with Ford’s dealership network and in those situations we are delivering the platform into much smaller fleets. Even at that level they are really being able to take advantage of a much wider, deeper view of how their fleets are operating and how their business is operating. So I see Telogis continuing to develop those areas of our business and certainly focus on applications and on more mobile scenarios in the field as being a big part of our future.”
Telogis’ experience includes telematics developments with OEMs and across all sectors from car to commercial vehicles
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PROFILE_Ford_IFW_Oct16_Layout 1 20/09/2016 11:54 Page 1
PROFILE Ford
Edge of glory Ford’s SUV range was strengthened by the introduction of new Edge earlier this year, helping to drive sales in all regions. This positive trend is set to continue with the introduction of new key models, a focus on electrification and expansion into emerging markets on the agenda…
“Since going on sale in Europe earlier this summer, nearly 5,500 European customers have ordered new Edge.” 36 / internationalfleetworld.com
PROFILE_Ford_IFW_Oct16_Layout 1 20/09/2016 11:55 Page 2
Manufacturer Ford Total sales 2015 6,635,000 Headquarters Michigan, USA Global market share 9.2% No. of models 21
view from the top
SUVs drive sales success ord’s global sales reached 6,635,000 in 2015, up +5% over 2014. The home market of the USA contributed the highest proportion of sales, representing the company’s best annual sales result in nine years, and making Ford America’s best-selling brand for six consecutive years. The expanding SUV range contributed strongly to sales success in all markets, with new Edge selling 10,263 units in December alone, and new Explorer contributing 18,892 units. H1 2016 results show a continued positive sales trend, with first-half total US sales up +5% with 1,353,048 vehicles sold. Escape sales were up +20%, driven by availability of the new 2017 model. In Europe, sales increased +11% in 2015, and Ford became the region’s best-selling commercial vehicle brand following the refresh of the Transit range. Fleet continued to play a strong role in the brand’s sales success, accounting for 74% of sales last year. Fiesta maintained its position as the best-selling small car in Europe following its 2015 refresh, despite strong competition in an increasingly crowded segment. Fiesta accounted for 311,700 units last year, with almost two in five drivers requesting a fuel-efficient 1.0-litre ecoBoost engine. In total, Ford will launch eight new or updated vehicles in Europe in 2016 – one more than in 2015, when more than 50% of the model range was freshened. As of July 2016, more than 13,000 customers to date have ordered the all-new Ford Mustang, which went on sale in Europe last summer for the first time in its 51-year history. In the mini-SUV segment, EcoSport sales rose +63% to 4,900 vehicles in July, while in the compact SUV market, the Kuga had its best July sales with 10,018 vehicles sold – a 16% increase on the same period last year. Since going on sale in Europe earlier this summer, nearly 5,500 European customers have ordered new Edge. Ford set a record for sales in China in 2015, reaching 1,115,124, up +3% compared to 2014. Demand for new Mondeo helped drive annual performance for Changan Ford Automobile (CAF), with sales totalling 113,990, up +8% compared to 2014. Annual sales of vehicles equipped with EcoBoost engines exceeded the 300,000 mark for the first time in China, meaning one in four Ford customers selected a vehicle equipped with an EcoBoost engine in 2015. Ford surpasses one million sales in Asia-Pacific this year after a record-setting August, one month ahead of last year’s pace. A key driver of growth in the region has been its growing SUV lineup, with the range accounting for 30% of Ford’s vehicle sales this year. New Mustang has been enthusiastically welcomed by buyers in China, Australia, India and South Korea, and Ranger pickup also continues to thrive, with strong sales across the region, particularly in Australia, New Zealand, Taiwan, Thailand and Vietnam. Thanks to the strong performance of Ranger and Transit, sales of Ford vehicles in Vietnam increased +57% in August 2016, while EcoSport, Ranger and Everest provided a boost of sales in the Philippines by more than 90%.
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FORD Global sales, by territory Territory N. America S. America Europe Asia-Pacific
2014 2,488,726 463,000 1,387,000 1,439,000
2015 2,613,162 381,000 1,530,000 1,464,000
% change +5% -19% +11% +2%
Total
6,323,000
6,635,000
+5%
Owen Gregory, new director of fleet operations at Ford of Britain, on opportunities for electric vehicles and success in the CV market. How is Ford working to meet demand for electric-hybrid models? As a company, our intent is to be a leader in electrification. We are investing billions of dollars over the next few years, and we are working on 13 electrified vehicles. At the moment, there is a very specific case for when an electric vehicle can work, depending on vehicle use and availability of infrastructure, so it is still a niche case for business customers. However, it’s obviously a very fast moving growth area of the market, so when we get the upgraded Focus electric from next year, we’ll be even better placed to offer opportunities to customers. Are mobility solutions a strong R&D area for the company? Absolutely – we recently announced a new team as part of our Smart Mobility organisation called City Solutions. Its role will be to work with cities around the world and seek partnership with them to find mobility solutions. We recently invested in a dynamic start-up shuttle service in San Francisco, alongside a bike-sharing scheme similar to the London system. I would expect that each partner city will need a unique solution to meet its unique challenges, and we need to position ourselves to be available to them during that transitional time. How has the CV side of the business performed? We are very pleased with how our CV range is performing. Transit Custom continues to go from strength-tostrength, and specification is very high. Early next year, we will be bringing four-wheel drive and automatic to market, with automatic in particular gaining a lot of customer interest. On the compact side, Courier has been performing strongly in a relatively small segment.
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PROFILE Ford
Car assembly plant locations
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Where are they made?
South America • Camaçari Plant, Bahia, Brazil • Sao Benardo Assembly, Sao Bernardo do Campo, Brazil • Cuautitlán Assembly, Izcalli, Mexico • Hermosillo Stamping & Assembly, Sonora, Mexico • Pacheco Stamping & Assembly, Buenos Aires, Argentina • Valencia Assembly, Valencia, Venezuela Europe • Azambuja Assembly, Azambuja, Portugal • Cologne Body & Assembly, Cologne, Germany • Saarlouis Body & Assembly, Saarlouis, Germany • Valencia Body & Assembly, Valencia, Spain • Ford Motor Company ZAO, St Petersburg, Russia Asia-Pacific • Auto Alliance Thailand, Pluak Dueng, Thailand • Ford Lio Ho Assembly, Chung Li, Taiwan • Hai Duong Assembly, Hai Duong, Vietnam • Sanand Vehicle Assembly, Gujarat, India • Ford India, Chennai, India North America • Chicago Assembly Plant, Chicago, Illinois, USA • Flat Rock Assembly Plant, Michigan, USA • Michigan Assembly Plant, Wayne, Michigan, USA • Ohio Assembly Plant, Sheffield, Ohio, USA • Wayne Stamping & Assembly, Michigan, USA • Louisville Assembly Point, Kentucky, USA • Oakville Assembly, Ontario, Canada Africa • Ford Motor Company of Southern Africa Ltd, Silverton, S. Africa
FIN fleet in numbers
435
Horsepower of new Ford Mustang GT.
100% Percentage of 2017 models available with SYNC 3 in-car connectivity.
$1.6bn Investment in Michigan and Ohio manufacturing facilities, announced in April 2016. 38 / internationalfleetworld.com
Plans for global growth... ord of Europe realigned its product strategy in early 2016 to focus on high-profit segments such as crossovers and SUVs and premium Vignale lines. The brand will launch five new vehicles to compete in the SUV and crossover space in the next three years, starting with the launch of new Edge earlier in the year. Ford expects to surpass 200,000 SUV sales in Europe for the first time in 2016. The Vignale range will expand to five models by 2017, including versions of S-MAX, Edge, facelifted Kuga and five-door Mondeo, and offers upmarket features such as exterior styling accents and in-car connectivity. On some models, top-of-the-line Titanium specifications currently make up 70% of all sales in Europe – a share that Ford plans to exceed with the new range. Saying that the next decade would be “defined by automation of the automobile”, the brand recently announced that it will invest in or collaborate with four startups on autonomous vehicle development, with mass production starting from 2021. The first automated vehicle will have no steering wheel or pedals and is being specifically designed for commercial mobility services, such as ridesharing and ride-hailing. This year, Ford will triple its autonomous vehicle test fleet to about 30 self-driving Fusion Hybrid sedans on the roads in California, Arizona and Michigan – said to be the largest test fleet of any automaker – with plans to triple it again next year. Ford also announced plans to invest $4.5bn in electric hybrid vehicles, with 13 models planned for 2020, representing 40% of the international line-up. To begin with, the focus will be on commercial vehicles, trucks, utility and performance vehicles, alongside the development of an integrated fleet management, route planning and telematics solutions. In recent years, Africa has emerged as an increasingly important sales territory for Ford, with continued investment and growth planned for the region. Ford announced a $170m investment in expanded operations at the Pretoria plant in South Africa in April, with production of new Everest SUV and Ranger due to launch at the end of the year. The Silverton facility joins AutoAlliance Thailand in Rayong; Ford’s Chennai plant in India (where it is sold as the Endeavor) and the JMC Xiaolan Plant in Nanchang, China, as new production hubs for Everest. Initial production of Everest will commence at Silverton in the third quarter of 2016, with the first units expected to come to market by the end of the year.
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PROFILE_Ford_IFW_Oct16_Layout 1 20/09/2016 12:01 Page 4
FORD fleet model range Ka+/Figo
Fiesta
Escort
Variants: 5dr hatch, 4dr sedan Markets: Europe, Asia, Africa, South America. Fuel: (3.9)-5.0l/100km CO2: (102)-114g/km
Variants: 3/5dr hatch, 4dr sedan Markets: Global. Fuel: 3.2-5.9l/100km CO2: 8.2-138g/km
Variants: 4dr sedan Markets: China Fuel: 6.5-6.8l/100km CO2: 179-188g/km
Focus
Mondeo/ Fusion
Mustang
Variants: 5dr hatch, 4dr sedan, wagon Markets: Global. Fuel: 3.4-7.7l/100km CO2: 88-175g/km (0g/km Electric)
Variants: 5dr hatch, 4dr sedan, wagon Markets: Global. Fuel: 3.6-8.5l/100km CO2: 89-199g/km
Variants: Coupe, convertible Markets: Europe, Asia, North America, Oceania. Fuel: 8.0-13.6l/100km CO2: 179-306g/km
Taurus
Falcon
B-MAX
Variants: 4dr sedan Markets: Asia, North America. Fuel: 7.1-(15.7)l/100km CO2: 163-(369)g/km
Variants: 4dr sedan Markets: Oceania. Fuel: 8.0-14.0l/100km CO2: 189-333g/km
Variants: MPV Markets: Europe, Africa. Fuel: 3.8-6.4l/100km CO2: 98-149g/km
C-MAX
S-MAX
GALAXY
Variants: MPV Markets: Europe, North America. Fuel: (2.7)-6.8l/100km CO2: (62)-154g/km
Variants: MPV Markets: Europe. Fuel: 5.0-7.5l/100km CO2: 129-180g/km
Variants: MPV Markets: Europe. Fuel: 5.0-8.0l/100km CO2: 129-184g/km
EcoSport
Kuga/Escape
Edge
Variants: Crossover Markets: Europe, Asia, South America, Oceania. Fuel: 4.4-6.3l/100km CO2: 115-149g/km
Variants: Crossover Markets: Global. Fuel: 4.4-8.8l/100km CO2: 115-204g/km
Variants: SUV Markets: Europe, North America, South America. Fuel: 5.8-(10.2)l/100km CO2: 149-(234)g/km
Flex
Territory
Variants: SUV Markets: North America. Fuel: 11.8-12.4l/100km CO2: 271-285g/km
Variants: SUV Markets: Oceania. Fuel: 8.2-10.5l/100km CO2: 217-248g/km
Endeavour / Everest
Explorer
Expedition
GT
Variants: SUV Markets: Asia, North America, South America. Fuel: (11.8-15.7l/100km) CO2: (271-360g/km)
Variants: SUV Markets: North America, South America. Fuel: 13.0-14.7l/100km CO2: 298-338g/km
Variants: Supercar Markets: Europe, North America. Fuel: 9.7l/100km CO2: 225g/km
NB. Figures in brackets are calculated from non-NEDC combined cycle tests.
Variants: SUV Markets: Oceania. Fuel: (8.5l/100km) CO2: (224g/km)
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ROAD_IFW_Optima_Oct16 20/09/2016 14:31 Page 1
Kia Optima Sportswagon Kia’s first large estate car is a much-needed move into the mainstream, reckons Alex Grant. SECTOR Upper Medium PRICE €25,990–€41,790 FUEL 4.4–8.2l/100km CO2 113–120g/km
ith its obsession for diesels and love of wagons, Europe is a bit of an island in the global automotive landscape. Enough that the Kia Optima – a game-changer for the brand in some markets – has only ever found a small corner of a segment that’s lost some of its gloss in recent years. Kia has always been aware of this. The Sportage is its high-volume family car in Europe; the new model is selling even faster than its popular predecessor, and this won’t tip the apple cart. But the first-ever Optima wagon is a savvy step into the mainstream for this part of the range. Volumes won’t be huge, but it’s a significantly bigger opportunity. Developed for and only sold in Europe, despite being built in South Korea, the Sportswagon will be by far the bigger seller in the region. Particularly in fleet, where versatile load carriers account for most European D-segment sales. Corporate aspirations are clear. Business essentials such as TomTom navigation, cruise control and a reversing camera are standard equipment in many markets, and big-selling The only variation is the gearbox. Kia’s seven-speed, dualversions are to be equipped with seats part-trimmed in articlutch transmission is optional on some trims and standard ficial leather. There’s also a high-performance GT version on on high-spec models, depending on market. On paper it’s the way, though with CO2 emissions at 191g/km slightly less efficient, but the extra gear should it’s likely that the user-chooser targeted GT-Line help real-world economy while cruising. It’s FLEET FACT trim, which gets many of the visual upgrades, will quick and smooth to shift and with no kickbe more appealing. A plug-in hybrid, as offered down shudder, though it doesn’t unearth huge in the sedan, also looks possible. The latest Optima amounts of extra performance from the diesel The majority of fleet sales are likely to take the engine when it does so. was previewed 1.7-litre diesel shared with the Sportage, which Kia is being reserved about sales splits for as an estate is upgraded from 119hp to a less lethargic the transmissions, but it sees strong take-up for concept car. 141hp in the Optima. That’s closer in output to the automatic and the DCT has the added rivals’ 2.0-litre engines and, thankfully, there’s bonus of including selectable driving modes. A limited evidence of its relatively small capacity on the road. luxury, perhaps, but the fixed-rate steering on manual Refinement is impressive and, though it’s no performance car, versions is a little light and slightly too sensitive around it doesn’t struggle to haul itself up to motorway speeds. dead-centre at high speeds, and there’s no option to have the selectable modes on the manual models. But it’s flexibility where this needs to be competitive, and the Optima achieves a lot despite sharing its footprint with the sedan. Boot capacity is larger than the Sportage and at the higher end of the class, with a low load lip and wide tailgate for crossover-shaming access. All of the essentials are present; handles inside the tailgate to fold the three-piece rear bench, under-floor storage for the tonneau cover and only a slight ramp to the load area when it’s all flat. However, the sliding luggage rail isn’t available all trim levels, and only the GT-Line S gets a powered tailgate. Which really leaves you finding details rather than dealbreakers here. The Optima isn’t the sharpest-driving wagon in its class, but not everyone wants that, and some of the cabin materials aren’t up to rivals – particularly the flimsy, under-damped gearshift paddles on DCT versions. Otherwise, this once-niche player has just made itself an option that’s impossible to overlook completely. A worthy competitor for a spot in the European market.
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what we think
highlights TomTom touchscreen navigation on all versions Competitive load area
The Optima is still short on engine options, but the Sportswagon is a sensible addition which looks, drives and functions competitively for this sector. It’s the bodystyle this car has always needed to make a mark on the European D-segment.
245hp GT version arriving in 2017
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ROAD_IFW_Grand Picasso_Oct16_Layout 1 20/09/2016 14:29 Page 1
Citroën Grand C4 Picasso The refreshed C4 Grand Picasso now offers style, versatility and more options, reports John Kendall. SECTOR MPV PRICE From €20,990 approx FUEL 3.8–5.1l/100km CO2 99–116g/km
indicates when the driver should take a break. Speed limit he latest Citroën C4 Grand Picasso won plenty of sign recognition and recommendation displays the speed praise when it first appeared in 2013, bringing more limit in the instrument cluster and allows the driver to select style and new technologies to a design that had proved the speed automatically for the speed limiter. Adaptive cruise popular since the original C4 Grand Picasso launch in 2006. control and collision risk alert are available and active safety That in essence is a process that Citroën has repeated for brake will be available from November, which will apply the the revised model, which is fundamentally the same but with brakes if the driver fails to respond to an alert of a possible some important updates. The Grand Picasso’s front end is collision. Active intervention is also available with the lane now shared with the smaller, five-seat C4 Picasso giving the departure warning system and active blind spot monitoring smaller model a sharper appearance. Inside there are now system. The system will apply corrective steering with the four interior design themes, which can be customised and lane departure warning system and similarly with the active there are new technologies including a hands-free tailgate and blind spot management system if the a new connectivity package with Citroën driver attempts to steer into the path of Connect Nav. Then there’s a new petrol an approaching vehicle. engine, the turbocharged three-cylinder, MPVs may be losing popularity to SUVs 1,200cc PureTech 130 S&S, which with but as practical transport, particularly for EAT6 six-speed automatic transmission families, the space efficiency of the C4 gives CO2 emissions of 115g/km. This Grand Picasso is arguably more useful, joins the existing range of PureTech 1.2with its larger boot volume and sevenlitre petrol engines and HDi 1.6-litre and seat flexibility. Comfort is the Grand C4 2.0-litre diesels. The CO2 champions are Picasso’s strength and the revised techthe diesels with the lowest CO2 emissions nology brings more features for smartof 94g/km from the BlueHDi 120hp phones such as Apple Car Play and manual model. Mirror Link for Android. The new 3D Connect Nav connected Fleet users will probably want the low navigation is combined with a new 7-inch 2-emission diesels. Power options for CO touchscreen in addition to the 12-inch HD The C4 Grand Picasso the 1.6-litre BlueHDi range from 100hp screen. The system allows two-finger is one of the best midwith manual transmission to 120hp with touch operation to zoom in and out similar sized seven-seat MPVs manual or conventional automatic and to a tablet screen. Main European cities for the 2.0-litre BlueHDi there’s a choice and monuments are displayed in 3D. Voice on the market and the of either manual or conventional autorecognition is available too, which can detail revisions and new matic. The smooth-shifting automatic interact with the satellite navigation, technology options add adds further to the car’s comfort and phone and media. further to its appeal. with the 120hp 1.6-litre engine gives CO2 There are new driver assist systems on emissions of 102g/km. offer including coffee break alert, which
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what we think
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ROAD_IFW_E-Class_Oct16 20/09/2016 14:27 Page 1
Mercedes-Benz E-Class Estate Impressive refinement from the new diesels and great to drive, reckons John Kendall. SECTOR Premium Estate PRICE From €48,665 approx FUEL 4.2–8.4l/100km CO2 109–192g/km
s day follows night, Mercedes-Benz was certain to follow up the impressive new E-Class saloon with an estate car variant, a model that has proved very popular since the E-Class first appeared in the 1990s. The model is obviously based on the E-Class saloon sharing many of the drivetrain options, but there are also features designed specifically for the estate version. These include the ‘cargo’ position for the rear seat backrest. This enables the rear seat backrests to be set 10 degrees further to the vertical increasing the boot space from 640 litres to 670 litres. Seats down, the available space can be extended to 1,820 litres. Seats up, MercedesBenz claims that rear seat head and elbow room are the best in class. The rear seat is split 40:20:40, giving more options for sharing the space between passengers and loads, but making the centre seating position a bit narrower than the outer two. Later this year, Mercedes-Benz will re-introduce a rearfacing folding bench seat for two children set in the boot floor. It was a feature of earlier E-Class estates, offering cylinder 2.0-litre diesel engines. The entry-level diesel is the seven-seat flexibility for families. 150hp E 200 d with the more powerful 194hp E 220 d. Both The E-Class estate gets a high performance variant in emit 109g/km CO2 and offer 4.2l/100km combined. the shape of the AMG E 43 4MATIC version Topping off the diesel range is what must be from Q4 2016. This is not likely to be a major regarded as a stopgap model, the 258hp 350 d FLEET FACT choice for fleets but the V6 bi-turbo petrol powered by Mercedes’ 3.0-litre V6 engine. The engine produces 401hp with 192g/km of CO2. new four-cylinder diesels are the first of a new The petrol engine line-up starts with the Third row seating family of engines and the V6 will be replaced in 184hp E 200 and includes the 211hp time by new in-line six-cylinder diesels. for children E 250, both based on the same 2.0-litre fourStandard equipment includes self-levelling available from cylinder petrol engine and both emitting rear air suspension, with all-round air-suspenlate 2016. 138g/km of CO2 on the EU combined cycle. sion on the options list. All E-Class estates will There’s also a 333hp 3.5-litre petrol V6 for be equipped with Mercedes own 9G-Tronic the E400 4MATIC model (180g/km CO2). nine-speed automatic transmission as standard. Overall, the Inevitably the lowest CO2 emissions come from the diesel E-Class estates weigh around 100kg more than the saloons. range and the core of these models will be the new fourMercedes has used a neat visual trick to make the estate look modern and sporty by including a sloping side window line at the rear, while keeping the roof-line long to maximise interior space. It works for both design and practicality. Inside, the estate will be familiar for anyone already familiar with the saloon, with the same dashboard, instruments and controls. I was pleased to see that the foot-operated parking brake has gone, replaced by an electrically operated system. The jewel in the crown is the new four-cylinder diesel, which is one of the smoothest and most refined I have driven. I drove the V6 E 350 d, followed by the E 220 d and once the car is on the road, it is very difficult to tell the two apart from the driving seat, making the 194hp E 220 d a particularly attractive fleet option, with high power, low emissions and excellent refinement. The E-Class offers spacious five-seat accommodation, not as much as the Skoda Superb, for instance, but the finish, refinement and driving excellence offered by the latest E-Class estate make it one of the most desirable premium estate cars available.
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what we think highlights Smooth four-cylinder diesels. Impressive standard equipment including automatic transmission and self-levelling rear air suspension.
The E-Class estate offers an impressive blend of comfort, refinement, accommodation, practicality and driving pleasure. It’s a premium estate car to desire.
Spacious accommodation with optional folding child seat in boot area.
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ROAD_IFW_RX450h_Oct16 20/09/2016 14:50 Page 1
Lexus RX 450h F Sport The latest Lexus RX450h is an impressive all-rounder, reckons John Kendall. SECTOR Premium SUV PRICE From €76,350 approx FUEL 5.2l/100km CO2 120–127g/km
ack to the beginning and this is the fourth generation of Lexus’ large luxury SUV. It comes in two forms, the RX200t, powered by a 2.0-litre turbocharged four-cylinder 235hp petrol engine and the subject of our test, the RX450h. This model is powered by a combination of a 3.5-litre V6 259hp petrol engine and a 165hp electric motor, for which Lexus claims a combined 308hp. This features all Toyota and Lexus hybrid knowhow, which means that electric motors are always at work, helping to propel the car. The petrol engine will stop and start at any speed, depending on the conditions at the time, but this is designed to maintain a balance between performance and efficiency, which in our experience on test seems to work well. An additional electric motor in the rear transaxle provides a more responsive EFour all-wheel-drive system and recharges the hybrid battery pack in recuperation mode. There’s also a sound generator to make the car sound more sporty. Like all Toyota/Lexus hybrid drives, it features a continuously variable transmission (CVT) transmitting power cient reduced to 0.33. The front seats have been set from the hybrid system to all four wheels. That hybrid 19mm lower to improve front seat headroom. system ensures that emissions from such a powerful Lexus has introduced its Safety System+. The heart of petrol engine are very well contained and as this is a pre-crash safety system with brake low as 120g/km, which is impressive and also assist that will apply the brakes if it thinks a FLEET FACT good news for drivers operating the car in collision in inevitable and the driver has not CO2-related tax schemes. That must be an responded. The same radar and camera attraction even for a car costing the €62,721 sensors for this are also used for the adaptive CO2 emissions as of our F-Sport test car – make that €65,010 cruise control. The system also features lane low as 120g/km with the panoramic roof and paint. The range departure alert and lane-keeping assist, as should help make well as automatic high beam and an adaptive starts from €45,580 for the SE. a good fleet case. The car has a longer wheelbase than its high-beam for the standard LED headlamps. predecessor, providing more cabin space – The F-Sport includes adaptive, self-levelthe car is 120mm longer than the outgoing model. It is ling air suspension giving an excellent mix of comfort and also 10mm wider and ground clearance is 10mm more. taut handling. I could go on about the long list of equipAerodynamics have been improved with a drag coeffiment, the dashboard displays and much more, but that would fill a whole page. Just the same, the dashboard features a 12.3-inch colour display – 8-inch on lower grade models. Our F-Sport model also features an 8-inch display for the digital instruments. On the road, the RX 450h is what you might hope for, a blend of fine refinement and leather-upholstered comfort. CVT transmissions are not everyone’s first choice because of the continuous engine note that results, but when it’s the Lexus V6, the sound is worth listening to. It’s deceptively quick too. It will always start off under electric power unless the battery is low, so a quiet getaway is guaranteed and it has surprising reserves of power. When you want to make swift progress you’ll be doing it before you realise. All this and 5.2l/100km.
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what we think
highlights
Very impressive. The Lexus is effortless, comfortable, spacious, handles very well and can be extremely quick, or impressively economical for such a large, powerful car. A competitively-priced winner.
Smooth CVT transmission provides brisk performance with reďŹ nement 18-inch wheels bring CO2 emissions of 120g/km with 5.2l/100km (EU combined) Dedicated hybrid vehicle platform brings continual electric power with the petrol engine started and stopped as needed
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ACEA_IFW_Oct16 20/09/2016 14:15 Page 1
fleet in figures
Declines in July, but August rebounds Global car sales are still rising with the South American economy and pressure on Russia weakening sales in those regions, as John Kendall reports.
Renault Talisman The new Talisman and Kadjar SUV contributed to a rise in registrations of 19.2% for Renault.
uropean truck manufacturers supply most of the vehicles used for road transport in Western Europe and all these companies operate globally. The European Automobile Manufacturers Association (ACEA) reports that the long run of continuous growth in new car registrations across the European Union came to an end in July when the market declined for the first time in 34 months, with July registrations falling slightly by 1.4% compared with
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July 2015. Since this was the first full month of registration data since the UK referendum result on future membership of the European Union, it is possible that the result played a part in the market decline. Perhaps more surprising was the way that the market returned in August, traditionally a quiet month for registrations, as it is holiday time across the EU. The average rate of growth across the EU for the month was 10% with large
growth in several smaller markets such as Romania (68.6%) and Croatia (38.7%). The market in the Netherlands declined by -12.1% in August compared with August 2015 to 27,110, probably not helped by the UK’s EU exit vote. Greece (-6.6%) and Slovenia (-1.3%) were the only other EU markets to experience declines in August. Registration growth is more even for the January – August (YTD) period according to ACEA. Registrations grew
ACEA_IFW_Oct16 20/09/2016 14:16 Page 2
by 8.1% overall to 9,787,760 with only the Netherlands recording a reduction, down by -5.2% to 252,143. YTD growth is particularly strong in smaller markets with Hungary recording the highest percentage growth - the new car market is up 24.9% to 61,214. Any short-term concerns of a wider effect from the UK’s EU vote appear not to have arisen for the time being. YTD the UK car market is up 2.8% to 1,680,799, recording 3.3% growth for August. Dataforce reports that the July fall in registrations across the EU was also reflected in the True Fleet market across the ‘Big Five’ EU markets of France, Germany, Italy, Spain and the UK. According to Dataforce, that 1.4% decline in the total car market in July was exactly the same for the Big Five True Fleet average performance, not helped by two fewer working days in July compared with July 2015.
France Individually, the True Fleet market in France declined by -1.3% in July, by 7.3% in Germany, increased by 11.4% in Italy, by 5.1% in Spain and declined by -1.5% in the UK. Overall, True Fleet growth across the five markets was 8.1% for the January to July period, with Italy posting the largest percentage growth at 15.6%. Dataforce reports that the -1.3% drop
for July in France was far less than the decline for the retail market which fell by -15.5%. Even so, several manufacturers performed well. The Kadjar SUV and the new Talisman contributed to a rise in registrations of 19.2% for Renault. Mercedes-Benz enjoyed 17.3% growth with the GLC and GLE classes the most successful models.
Germany Despite the decline in Germany in July, Audi posted its highest True Fleet market share (16.6%) since December 2010, with the new A4 making a large contribution to the rise. In fact the A4 was the best-selling True Fleet car in Germany in July, ahead of the VW Passat and Golf. Nissan posted a 52.6% increase, with Dataforce reporting growth across a range of models.
Fleet best seller. The 3 Series and X1 fuelled the growth for BMW, while the Clio, Captur, Kadjar and Espace performed well for Renault.
Spain Spain was the only other market to post percentage increases for both July and the January to July period in True Fleet. Among the winners were Volkswagen and SEAT, which retained their first and 10th places respectively in the True Fleet market. Opel moved from eighth place to second in sales terms to equal sales from Peugeot. The Corsa contributed to this success, more than doubling its True Fleet registrations and earning the Corsa the fifth best-seller position behind the SEAT Leon, Nissan Qashqai, Ford Focus and VW Golf. The Mercedes Benz GLC helped MercedesBenz to rise from ninth position to fifth.
Italy In percentage terms, the Italian True Fleet market was the strongest performer of the Big Five in July, posting an 11.4% rise for the month and a 15.6% rise for the January to July period. Fiat is the market leader with True Fleet registrations up by 33.4%, while BMW in fourth place saw registrations rise by 47.9% and Renault, in seventh position experienced a 54% rise in registrations. Panda fuelled the increase for Fiat as the country’s True
UK Two weak registration months in the UK following the EU referendum delivered declines in registrations for both June and July and have dented the gains made earlier in the year. But there were still significant gains for some manufacturers. In July, Kia True Fleet registrations grew by 40.8% compared with July 2015, pushing Kia’s market share up to almost 4%. This performance was helped by the new Sportage, Kia’s best
Mercedes-Benz GLC Mercedes-Benz enjoyed 17.3% growth in France with the GLC and GLE classes the most successful models.
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fleet in figures
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seller and third placed model in the SUV sector, close behind the Vauxhall Mokka. Other big gains were posted by fourth placed Mercedes-Benz with a 17.3% increase and seventh placed BMW with a 30.7% increase.
Europe diesel market LMC Automotive has been keeping a watch on the European diesel car market for some months now. This may or may not be related to the VW emissions issues from last year, but there is evidence that the market for diesels in Europe was softening before the VW story broke. The more likely reason for this is the strength of the small car market in Europe at the B-segment and smaller. Diesel power has never played a particularly big role in smaller cars, because of the on-cost of fitting a diesel engine to smaller models relative to the price of the car. It’s a price sensitive sector and price plus the rise of small efficient petrol engines mean that there are other options. LMC has charted a downward market share trend for diesel since 2012, following 17 countries across Western Europe: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxemburg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the UK. For the January to August period (YTD) the diesel market share stands at 49.9%, compared with 52.1% for the same period in 2015. That represents a yearon-year (YoY) decline of -2.3%. Of the 17 markets covered, diesel share has risen in just three countries YTD: Denmark (up from 30% to 35.7%), Italy (up from 55.4% to 56.5%) and Switzerland (up from 37.9% to 39.5%). Norway posted the largest decline with YTD diesel
market share down to 31.7% from 41.0% in 2015. But given Norway’s large uptake of electric vehicles, the country probably has more flexibility than most other European countries in switching away from diesel. Ireland has the highest market share for diesel cars of the 17 with 69.8% take-up for diesel down from 70.9% in 2015. Diesel fuel is notably cheaper than petrol in Ireland. So much for market share. Sales volume for diesel across the 17 markets is higher YTD than it was in 2015, with diesel car sales up from 4,545,200 to 4,656,200. Here LMC’s data shows that diesel car sales are falling in Belgium, France, Greece, the Netherlands, Spain, Sweden and Switzerland. Growth in the Italian diesel car market was the largest of all the countries with sales rising 19.6% to 706,700 YTD.
USA In the US the predicted softening of the market appears to have continued in August, according to data from LMC Automotive. US light vehicle sales reached 1,511,000 in August, down 4.1% compared with August 2015. LMC comments that, “The incremental gains experienced by SUVs and Vans could not offset the significant volume loss in the combined Car segments – specifically Midsize Car.” US manufacturers were incentivising sales to try and offset the decline. Year to date data for January to August shows that overall, the market is rising slightly with sales up 0.6% YTD to 11,666,441.
Eastern Europe Eastern Europe sales are still in decline, with Russian light vehicle sales likely to finish the year around -12% down on
2015, according to LMC estimates. That would be an improvement on the 35% decline in 2015.
China The Chinese car market is looking good with the sales rate climbing steeply in August to a level slightly lower than the record-high rate set in November 2015. Both LMC and Scotiabank point to a temporary tax cut as the likely cause. Scotiabank explains that the cut is in sales tax, down from 10% to 5% on new vehicles with an engine capacity below 1.6-litres. The Chinese LCV sector continues to decline, but overall YTD light vehicle sales are up 10.1% to 16,838,555.
Japan In Japan, sales rose in August after a slow July market. LMCA indicates that summer bonus payments from large corporations could have helped sales, but the strength of the Japanese Yen has reduced corporate earnings and global uncertainty is ensuring restraint amongst buyers. The Japanese market for light vehicles YTD is down -4.2% to 3,257,894.
South America In Brazil, LMCA suggests that the end of the Olympic Games brought Brazilians back to car dealers delivering higher sales than in July and consumer confidence has risen, but, says LMCA, “The economic reality is, however, little improved, with high inflation and the depressed job market continuing to undermine consumer purchasing power.” Sales also surged in Argentina, but inflation is still a serious problem. YTD sales in Brazil and Argentina are down -16.4% to 1,755,425.
Opel Corsa Opel moved from eighth place to second in sales terms. The Corsa contributed to this success, more than doubling its True Fleet registrations in Spain.
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NEWS from the global fleet community
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Driving up expectations
The new Hyundai H350
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. The completely new 2.5 l CRDi powertrain, with SCR technology meeting the Euro 6 standard, now features our selectable Active ECO drive mode that further optimises fuel efficiency. And there’s the reassurance of a 3-year unlimited mileage warranty. The new Hyundai H350. A great place to work.
Combined fuel consumption for H350 van range: 7.8 - 8.7 l/100 km. Combined CO2 emissions for H350 van range: 205 - 231 g/km. 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