International Fleet World October 2018 by Fleet World Group

October 2018 • internationalfleetworld.com

EVERYTHING FLEETS NEED TO KNOW

Business is about maximising the opportunities. Every day.

SEAT Ateca Make every day a great day. The SEAT Ateca, with its Virtual Pedal, Digital Cluster and Wireless Charger, can be a perfect addition to your fleet. Get in touch with us to learn about more SEAT FOR BUSINESS opportunities. Official mass emission for the SEAT Ateca FR 2.0 EcoTSI 140 kW (190 HP) 7-speed DSG 4Drive: CO2 Combined (g/km) -> 161-162. Standard EU Test figures for comparative purposes and may not reflect real driving results.

The new Opel

COMBO LIFE Always at hand for your fleet needs.

Up to 7 seats1

Up to 3.05 m load length2 and 2,693 l load volume3

High driver safety4

Optional. 2 Long wheelbase (optional). 3 Long wheelbase (optional), measured according to ISO 3832 (specifies a method of measuring the reference volume of the luggage compartments of passenger cars). 4 Standard safety features: Forward Collision Alert with Pedestrian Detection, Automatic Emergency Braking, Driver Drowsiness Alert and Lane Keep Assist. Picture shows optional equipment, depending on local market offer. For further information please contact your local Opel/Vauxhall fleet representative or dealer. Combo Life fuel consumption combined 5.7–4.1 l/100 km; CO2 emissions combined 130–108 g/km (according to R (EC) No. 715/2007 and R (EC) No. 692/2008).

October 2018 • internationalfleetworld.com

EVERYTHING FLEETS NEED TO KNOW

CEL EBR

Business is about maximising the opportunities. Every day.

INSIDE

ATI NG

October 2018 • internationalfleetworld.com

06 Analysing worldwide vehicle sales figures

22 Electrified, alternative vehicle and mobility developments

18 This month’s new car focus falls on the BMW 3 Series

20 Talking residual values for the Peugeot Rifter

22 How to better manage fleet telematics

26 The task of combatting congestion

32 IFW’s take on Volvo’s market performance

36 An investigation into the Polish car market and economy

40 Road test reports

42 The (fleet) world according to Thilo von Ulmenstein

Director Jerry Ramsdale jerry@fleetworldgroup.co.uk Editor John Challen john@fleetworldgroup.co.uk Deputy Editor Alex Grant alex@fleetworldgroup.co.uk Business Editor Natalie Middleton natalie@fleetworldgroup.co.uk Content Editor Jonathan Musk jonathan@fleetworldgroup.co.uk Account Directors Claire Warman claire@fleetworldgroup.co.uk Harry Whyte harry@fleetworldgroup.co.uk Yvonne Wright yvonne@fleetworldgroup.co.uk Circulation Manager Tracy Howell tracy@fleetworldgroup.co.uk Head of Production Luke Wikner luke@fleetworldgroup.co.uk Designers Dan Bennett dan.bennett@fleetworldgroup.co.uk Tina Ries tina@fleetworldgroup.co.uk Victoria Arellano victoria@fleetworldgroup.co.uk

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

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

internationalfleetworld.com • 003

FROM THE

EDITOR I like driving – love it, in fact – but that doesn’t mean I like spending time sat in traffic in a car.

guess it was typical that, just a couple of weeks after writing about the value of face-to-face meetings, I endured one of the worst round trips to an appointment in my life. The route was one I know very well, having enjoyed it – and endured it – many times in the past. Over the years, I’ve noticed that the roads have become busier, but that fateful Thursday afternoon was something else. So much so that the sat-nav directed to an alternative route that is typically more congested than that way I usually go. Even more alarming was the fact that the knock-on effects of the incident were still being felt on my trip home. The trouble, it appeared, was a vehicle travelling north on the motorway had breached the central reservation. By the time I’d finished my meeting and was heading home (travelling south), the northbound section of the road was fine, but my side still had a lane closed for repairs. Even though the cause of the trouble was on the other side of the road, those going in the opposite direction were being directly impacted – hours after the initial trouble. In the end, it was a seven-hour journey instead of the normal three hours. Now, I like driving – love it, in fact – but that doesn’t mean I like spending time sat in traffic in a car. Neither, I would imagine, do the thousands of others who were caught up in the same jam – many of whom didn’t have the option of the alternative route north. The impacts of these accidents are wide-ranging – I managed to make my meeting, but many wouldn’t have been so lucky. The cost implications to business of the drop in productivity due to a depleted workforce, or customers who are left waiting for deliveries can be major. The only winners in these situations seem to be vehicle repair companies and insurers! My experience was one of many that would’ve happened all over the world on that day. Sometimes the cause is an accident, sometimes the sheer weight of traffic. And occasionally there is no reason – the traffic just seems to grind to a halt. The subject of congestion is ongoing – Dave Moss delves into the problems and solutions of it in this issue – but it does leave me wondering (and hoping) that an increased level of autonomy in vehicles will help. Driver error is the reason for the vast majority of incidents – take that away and life could become a lot better for everyone.

Spot the difference... Talking of making life better, at Fleet World Towers we’re always looking to keep our customers and readers happy, so we’ve given the magazines a fresh new appearance. There is still the usual mix of news, features and mission-critical information for your business and over the coming months we hope to bring you more and more content that will help improve the management of your fleets and be better informed about the industry as a whole. Enjoy the issue and let us know what you think.

John Challen editor

004 • internationalfleetworld.com

Go electric. Drive SUV.

The first electric compact SUV is here. Breaking new ground – and doing it in style. Combining bold SUV design with cutting-edge Advanced Driver Assistance Systems and an exceptional range of up to 482 km* – the all-new KONA Electric delivers electric driving with no compromises! Gone are the days when electric cars could only get you around the city. Now you can really go places – and come back, all on a single charge. Discover more at Hyundai.com/eu

You drive it. You electrify it.

* Range according to WLTP cycle. Driving range may vary slightly depending on road conditions, your driving style and the temperature. 1 The Hyundai 5-Year Unlimited Mileage Warranty applies only to Hyundai vehicles that have been originally sold by an authorized Hyundai dealer to an end-customer, as set out in the terms and conditions of the warranty booklet. Local terms and conditions apply. 2 8 years or 200.000 km warranty on vehicle battery unit. Local terms and conditions apply. Contact your official Hyundai dealer for further information.

FLEET IN FIGURES

SALES AND SELLING RATE STRONG IN AUGUST YEAR-ON-YEAR SALES OF 2.7% AND AN ALL-TIME HIGH SELLING RATE OF 99.7 MILLION UNITS A YEAR WERE ACHIEVED FOR THE MONTH, HELPED BY WLTP. BY JOHN CHALLEN

onsumers in the US bought 1,488,000 light vehicles in August, up by 0.6% year-on-year (YoY). Retail sales were virtually flat, up by 0.1% YoY to 1,266,000 units but, on the other hand, fleet sales kept their growth streak and gained 3.3% YoY, reaching almost 222,000 vehicles. This August performance translates into a selling rate of 16.7 million units a year, while the LMC Automotive forecast for the year stands at 17.2 million. While the US had a positive performance, Canada and Mexico lost sales from August 2017. In Canada, they dropped 0.6% YoY, to 183,000 units, but the selling rate reached two million units a year for the first time since March. In Mexico, YoY sales dropped for the 15th consecutive month, to 118,000 units. This translates into a selling rate of 1.4 million units a year, down 43,000 from July.

from July at 1.5 million units a year. Although the weaker Ruble seems to be contributing towards price hikes, the planned 2% increase in VAT from 1st January may lead to a pull-forward effect at the end of the year. We now expect 2018 LV sales to be just under 1.8 million units (+12.8%). China The Chinese market continued to lose momentum in the face of the heightened trade tensions with the US. Preliminary data indicate that the August selling rate was 28.1 million units a year, down 1.3% from July, and the fourth consecutive month of MoM decline. On a YoY basis, sales (i.e. wholesales) fell for the second straight month in August, dragged by weaker passenger vehicle sales. In contrast, LCV sales performed well. Imports from countries other than the US sold well, too, thanks to the import tariff reduction on 1st July. The slowdown in sales reflects anxiety over the escalating trade conflict and the sharp fall in stock prices. The recent steep depreciation of the Yuan and rising fuel prices must be eroding consumersâ&#x20AC;&#x2122; purchasing power, too.

Europe West European light vehicle registrations grew by 22.6% year-onyear (YoY) in August, while the selling rate jumped to 20.3 million units a year, from 16.6 million units a year in July. However, it should be remembered that the extraordinary growth in many markets was really a distortion caused by the transition Light vehicle sales in Russia to WLTP (the Worldwide went up 11% YoY in August harmonized Light Vehicles Test Procedure) emissions testing, as suppliers rushed to self-register vehicles before the deadline, while savvy buyers may have brought forward purchases. Russian light vehicle sales improved by 11% YoY in August, bringing the cumulative increase for the first eight months to 16.2%. The August light vehicle selling rate was little changed

006 â&#x20AC;˘ internationalfleetworld.com

Other Asia The August selling rate in Japan reached a strong 5.4 million units a year, despite a record number of powerful typhoons hit the country. A very tight job market and slowly rising wages are helping to boost consumer spending on new vehicles, while businesses are wary about the uncertain trade outlook. Nonetheless, on a YoY basis, sales declined marginally so far this year, after exceptionally strong sales last year. In South Korea, the selling rate reached a robust 1.88 million units a year in August, thanks to the temporary tax cut on passenger vehicles. Sales must have been pulled ahead, too, because the WLTP became mandatory for all diesel models on 1st September. On a YoY basis, sales increased by 5% in August and 1% YTD. South America The Brazilian market registered an unexpected surge in August, with the selling rate reaching 2.7 million units a year, up 15% from July. On a YoY basis, sales increased by 14%, the second consecutive month of double-digit growth. However, such a strong pace is unlikely to be sustained, given a weakening Real, rising inflation, and political uncertainty ahead of the October presidential election. The Argentine market took another dive in August, in the face of the plunge in the Peso and soaring inflation and interest rates. The selling rate hit a twoyear low of 678,000 units a year in August, the third straight month of steep decline. Sales are expected to decelerate further, as the government is accelerating fiscal austerity measures to arrest the foreign exchange crisis.

Advertorial

has it all: Vans, brands, EVs Looking for Corporate CarSharing? AlphaCity just got even better. Alphabet’s pioneering solution also offers vans (LCVs and eLCVs) and electric vehicles (EVs). And the BMW affiliate has now gone multi-brand, giving corporates maximum ﬂexibility in providing shared mobility options for their employees.

Launched in 2011, AlphaCity has amassed 24,000 corporate customers across 8 key European markets (*), establishing Alphabet as both an innovator and leader in Corporate CarSharing and fleet electrification. Great leap forward And 2018 marks another milestone, as AlphaCity takes a great leap forward in Business Mobility. No longer limited to BMW and Mini vehicles, it now offers keyless access to a comprehensive range of small cars, premium cars, LCVs and eLCVs from multiple makes – and seamless integration of EVs in a solution tailor-made for your company. Additional services such as charging cards can be added; and AlphaCity is already operating pure EV fleets for some of its customers.

Private hire Corporate CarSharing as offered by AlphaCity can be more efficient and cost-effective than mobility alternatives such as rental cars and taxis; although it is a B2B solution, companies can also choose to open the shared cars up for private hire by their employees, with Alphabet providing the platform to process incoming payments. Talking about platforms: AlphaCity’s booking portal is now available in a new look and feel. Moreover AlphaCity is now integrated into the enhanced AlphaGuide app, where users can search for and book shared cars, and check or amend their bookings. AlphaGuide now is Alphabet’s centralised, streamlined and portable tool for both shared and lease cars. Consulting approach Mobility needs are as speciﬁc as the corporation itself. Therefore it is all part of AlphaCity’s consulting approach: close communication with clients leads to profound insights in their unique mobility patterns and needs, and eventually to tailor-made solutions. AlphaCity comes with a 24/7 booking platform, but also with a round-the-clock drivers hotline, keyless access to vehicles which are fully serviced and maintained by Alphabet for a hassle free experience.

Based on the experience operating AlphaCity in Business Parks and hotels Alphabet further enhanced the services, so it is even more ﬂexible. It can now also be used as a tool for Residential CarSharing or as a service offering replacement vehicles - among other options.

That’s why AlphaCity’s new offer is both wider and deeper than before: to enable even more corporate customers to enjoy the beneﬁts of CarSharing via a solution that is uniquely ﬁt for their requirements – saving them both time and money.

(*) Germany, France, the UK, Spain, Italy, the Netherlands,

For more information visit

Belgium and Austria. More countries to follow soon.

www.alphabet.com/corporatecarsharing

THIS MONTH IN FLEET www.internationalfleetworld.com

Seat Tarraco targets corporate fleets Seat has revealed its Tarraco seven-seat SUV, which will provide the Spanish manufacturer with a flagship model, including a PHEV version, to target corporate fleets with from next year. Positioned above the Arona and Ateca SUVs, the Tarraco previews the next-generation Seat family design and will play a key role for Seat at a time of ongoing growth. Between January and August, the brand delivered 383,900 vehicles worldwide, an increase of 21.9% over the same period in 2017. Two petrol variants will be available: a four-cylinder 150hp 1.5 litre TSI unit with a six-speed manual transmission

Kia ProCeed reimagined...

and front-wheel drive, and a 190hp 2.0-litre offering, married up to a seven-speed DSG gearbox and 4Drive four-wheel drive. There are two diesel options, both 2.0-litre TDIs and also offering power outputs of 150hp and 190hp. The 150hp variant can be connected to either a front-wheel

drive, six-speed manual or sevenspeed DSG with 4Drive system. The higher-powered version is solely available in 4Drive/seven-speed DSG gearbox. Seat said ‘alternative drivetrains’ will follow, likely to utilise plug-in hybrid technology used elsewhere in the group.

Kia has unveiled its 2019 ProCeed model, which has been reimagined with a five-door ‘shooting brake’ estate bodystyle for increased practicality. Debuted at the Paris Motor Show, the new model moves away from the previous three-door hatch format due to shrinking sector sales but is intended to bring the same levels of driver engagement. It will be sold alongside the new Ceed Sportswagon and uses the same wheelbase but the coupé-inspired body is lower and longer than both the Ceed five-door hatchback and Sportswagon. Boot space stands at 594 litres compared to 625 for the Sportswagon and the ProCeed also ditches the boot lip and brings a lower ride height than the Sportswagon. Two models will be offered. A GT-Line with three engines, covering Kia’s 120hp 1.0-litre TGDi (Turbocharged Gasoline Direct injection) petrol engine, its new 140hp 1.4-litre T-GDi unit and a new 136hp 1.6-litre common-rail diesel, and a high-performance GT model with the Ceed GT’s 204hp 1.6-litre T-GDi engine and a new seven-speed dual-clutch transmission.

EU to probe BMW, Daimler and Volkswagen The European Commission has opened a formal f rmal investigation into fo whether BMW, Daimler and VW colluded on the development of car emission technology “that denied consumers the opportunity to buy less polluting cars”. The investigation, which includes VW brands Audi and Porsche, follows a report a year ago from Der Spiegel magazine alleging that the carmakers formed a secret cartel in the 1990s, including working groups

008 • internationalfleetworld.com

that discussed technologies such as selective catalytic cataly l tic reduction systems for diesels and particulate filters for petrol engines, and that other carmakers had been denied the chance to join the ‘Circle of Five’. The report claims that although the carmakers said they’d need 19litre AdBlue tanks for SCR to work properly, they agreed to only fit 8litre maximum tanks to save themselves both the expense of bigger tanks and the space that such

tanks would take, avoiding an “arms race of tank sizes” sizes”. The report also alleges collusion over limiting the amount of AdBlue – which reduces nitrogen oxide emissions – injected into the SCR catalyser to ensure that the fluid would not have to be refilled prior to the next service. According to the weekly publication, this meant that in many driving situations, the car would emit more nitrogen oxide despite being equipped with emissions reduction systems.

IN BRIEF Toyota revives ‘Corolla’ name in Europe

Volkswagen to launch digital fleet services and car sharing

The replacement for the Toyota Auris will be named ‘Corolla’, bringing Europe in line with other global markets for the first time since 2006. The new Corolla launches in Europe early next year, as a hatchback, saloon and estate, offered with a choice of petrol or hybrid drivetrains and no diesel alternatives for the first time.

Frankfurt told to ban diesels Frankfurt is to become the fifth major German city to instate a diesel ban following a court ruling. In August, the city published a brief air quality ban that did not mention diesel bans. Since then, the Administrative Court in Wiesbaden has ruled that the city of Frankfurt must put restrictions on diesel vehicles by February 2019. It comes four months after the German Federal court outlined that German cities were officially allowed to ban older diesel vehicles from their streets.

Chevin drives European growth Chevin has expanded its EMEA team with two additional staff members as it reports continued growth in Europe. The fleet management software specialist has appointed Tim Van Geertyuren as business analyst while Herbert Michielsen joins as a developer. They will be based at the company’s EMEA office in Diegum, Belgium.

A6 and Touareg score highly Euro NCAP has released the results of its latest tests, which saw both the Audi A6 and the VW Touareg achieve a maximum five-star rating but the Suzuki Jimny was awarded just three. The latest batch of tests also saw the Ford Tourneo Connect get a four-star rating.

Volkswagen is developing a suite of mobility and digital services aimed at private and business drivers and fleet operators, utilising connected technology available across the group. Volkswagen We is described as a ‘digital eco-system’ which enables end-users to send and receive vehicle data, communicate with dealers and the Group, and access a portfolio of services via a single account. Dealer contracts have been renegotiated to allow the carmaker to contact end-users directly, and the broader range of services will be underpinned by a digital framework through which this information is shared. The Group already has apps which allow drivers to pay for parking, have parcels delivered to their car, and get personalised local points of interest. But the extended service will include We Share electric car sharing, launching next year in Berlin with other cities to follow from 2020, and We Charging, which will enable drivers to pay for charging on multiple networks through the service. For fleets, Volkswagen We will include a multi-vehicle telematics solution, and the ability to reduce downtime and workshop visits by downloading vehicle software updates over the air. The single account means end-users can transfer preferences between vehicles, and the aim is for non-owners to be able to access shared cars and vans via an app or browser too. Jürgen Stackmann, Volkswagen brand board member for sales, said: “We are democratising e-mobility. From 2020, ’We Share’ is to support the market introduction of the new generation of our new, all-electric I.D. models and thus make a significant contribution to the Volkswagen brand’s e-mobility offensive.”

FCA to launch fleet telematics system Fiat Chrysler Automobiles is launching a telematics service for fleets next month, utilising the on-board data connection fitted to its latest models. The service will launch in October as part of updates to the Jeep Cherokee and Renegade, and Fiat 500X, according to head of fleet and business sales for the EMEA region, Alessandro Grosso. Mopar Connect Fleet builds on the consumerfocused system launched earlier this year, which enables remote status, location and security checking via the group’s Uconnect Live smartphone app. For fleet managers, Mopar Connect Fleet offers the ability to monitor multiple vehicles at once. It means operators and drivers can remotely check and schedule maintenance, locate and geofence vehicles, optimise routes and see how efficiently they are being driven on any given journey. FCA is offering its own fleet management service for operators, but Grosso said the raw data can also be integrated with third-party fleet management systems.

internationalfleetworld.com • 009

The new C-Class with

Instincts you can trust. The new C-Class. With the latest generation of Intelligent Drive, safety and assistance are in abundance. It ensures less stress with every ride by always being on the lookout for possible hazards. Never stop improving. www.mercedes-benz.com

THIS MONTH IN FLEET www.internationalfleetworld.com

FLEET IN QUOTES “Today, there are hardly any LCVs on the market that can meet the increasing demand for lastmile delivery in a sustainable way. Our new partnership with SAIC will enable us to serve the growing need for zero-emission LCVs – and at a competitive total cost of ownership compared to ICE vans.”

Cox Automotive launches mobility division The Mobility Solutions Group will be led by president Joe George, and incorporates newly-acquired Clutch Technologies, which is a subscriptionbased vehicle usage platform designed for the automotive industry. This is said to be complementary to its other divisions. Cox launched the Flexdrive subscription service in 2014, and has a network of reconditioning centres for maintaining vehicles at sites across the United States. The company also has relationships with MaaS providers including BMW ReachNow, Getaround and Lyft, and has invested in ride and car-sharing platform Ridecell, and LIDAR sensor manufacturer Ouster, which is targeting autonomous vehicles.

Tex Gunning, CEO LeasePlan

“We already offer outstanding mobility solutions to many companies throughout continental Europe, so crossing over to Southeast Europe truly makes sense for our company and for our international customers. We are all excited to see what we can accomplish for our customers with Hedef Filo.” Rüdiger Ebel, chief sales officer, Alphabet International

“We are democratising e-mobility. From 2020, ‘We Share’ is to support the market introduction of the new generation of our new, all-electric I.D. models and thus make a significant contribution to the Volkswagen brand’s e-mobility offensive.” Jürgen Stackmann, Volkswagen Brand Board Member for Sales

““The future of mobility as a service is a massive business opportunity, with some estimates at well in excess of $1 trillion (€880m) by 2030. Our goal is to grow our presence in that part of the business and help all our partners and clients successfully navigate the many new opportunities.” Sandy Schwartz, president of Cox Automotive

012 • internationalfleetworld.com

LeasePlan partners with SAIC LeasePlan and SAIC Motor are to offer EV80 electric van leasing deals as the Chinese carmaker steps up plans to relaunch the Maxus/LDV brand in Europe. Now, the SAIC Mobility Europe division and LeasePlan have signed a Memorandum of Understanding that will see LeasePlan provide operational leasing solutions for SAIC’s Maxus electric LCVs in continental Europe. This will centre on the EV80 but also cover other Maxus electric vans. LeasePlan’s operational leasing services for the range of Maxus LCVs will include configuration and customisation, finance, insurance,

fleet management, repair, maintenance, tyres and remarketing. In addition, LeasePlan will provide Maxus electric LCV customers with end-to-end charging infrastructure, as well as access to a network of 75,000 charging points through LeasePlan’s existing partnership with Allego.

New role for Rüdiger Ebel at Alphabet Rüdiger Ebel has assumed the position of chief sales officer at Alphabet International. Ebel was previously head of new markets at Alphabet International, where he expanded the global coverage of Alphabet by adding 10 cooperation markets to Alphabet’s global network. He started his career at the BMW Group in 1998 as process/IT project manager in the central sales and marketing department. He held various responsibilities within the BMW Group Sales Division. Ebel also

led the post-merger integration of Alphabet and ING Car Lease. Rüdiger Ebel succeeds Uwe Hildinger, who moves to chief operating officer at Alphabet GB.

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

evfleetworld.co.uk @EVFleetWorld

EV Fleet World

evfleetworld.com

IN BRIEF

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

Mercedes-Benz EQC

UK considers green plates for plug-ins The UK’s Department for Transport has launched a consultation addressing the merits of offering green number plates for plug-in and hydrogen fuel cell vehicles. Similar schemes are already in place in Canada, China and Norway and the DfT said it would facilitate extra incentives such as reduced parking prices, which can encourage drivers to switch.

Dyson plans €225m EV test facility British technology company Dyson has earmarked £200m (€225m) for a ‘world-class vehicle testing campus’ as it pushes ahead with plans to launch an electric vehicle in 2020. The company already has more than 400 people on the project, it said last year and the funding will include 10 miles of vehicle test tracks and 45,000m2 of development space.

McDonald’s to offer on-site EV charging McDonald’s branches across the Netherlands will be kitted out with fast charging points by the end of 2021, in a project involving energy firm Nuon. The 168 fast chargers will each include two outlets, supplied by renewable energy from wind turbines, and installation will begin late this year.

London lamp posts to plug charge point gaps Transport for London has awarded contracts to seven of the UK’s largest charging point manufacturers to roll out 1,150 charging points across London’s boroughs by the end of 2020, helping households without off-street parking to move to plug-in vehicles. Three of the suppliers are to install ‘shared power supply’ units – using existing street lamp wiring to cut costs.

014 • evfleetworld.com

Premium brand electric SUVs break cover Mercedes-Benz and Audi have revealed production versions of their first electric vehicles; rival battery-powered, high-performance SUVs due to launch next year. The Mercedes-Benz EQC is the first component of the ‘EQ’ electric subrange, which is set to grow to include other SUVs and an A-Class-sized hatchback. The EQC launches with a single, 408hp, four-wheel drive version equipped with an 80kWh battery and an NEDC-derived range of 450km – there are no WLTP figures as yet. At Audi, the E-Tron SUV will be the first of 12 fully-electric cars due to launch globally by 2025. It features a 402hp, four-wheel drive electric drivetrain, offering a range of 400km under the stricter WLTP drive cycle. Audi said it will offer battery-electric drivetrains in all major segments, expecting it to account for a third of sales by the mid-2020s.

Audi E-Tron SUV

MOBILITY

BMW and Daimler to form urban mobility joint venture

The BMW Group and Daimler AG have formed a 50/50 joint venture to establish a standalone mobility services company, set to operate across Europe. With a transaction already filed in multiple countries and now with the European Commission, the two companies are aiming to bring a portfolio of urban mobility solutions under one banner. This would create a seamless multimodal transport system, including car sharing, ride hailing, ticketless parking and multi-network electric vehicle charging, available via a single app. Set to be headquartered in Berlin, the two companies said their joint expertise would enable the business to expand rapidly, subject to approval from competition authorities. BMW and Daimler will remain competitors in their respective core services, despite holding equal stakes in the new business. Dieter Zetsche, chairman of the board of management of Daimler AG and head of Mercedes-Benz Cars, said: “Our vision is to create a major global player for seamless and intelligent connected mobility services together. As a hub for creativity and innovation, Berlin is exactly the right location for our plans.” Harald Krüger, chairman of the Board of Management of BMW AG, added: “The future of mobility is being shaped in major cities like Berlin. With the ecosystem we are planning, we will create solutions for tomorrow’s urban mobility: intelligent, seamlessly connected and available at the tap of a finger. We believe this will improve quality of life in major cities.”

Toyota and Uber extend autonomous car partnership Toyota has made a $500m (£388m) investment in Uber, alongside an agreement to co-develop an autonomous ride-sharing service scheduled to launch in 2021. The two companies have worked together since signing a Memorandum of Agreement 2016, and the expanded partnership will look at new opportunities to develop ride-sharing services utilising Toyota vehicles working with Uber’s technology platform. This will start with Autono-MaaS (Autonomous Mobility as a Service) in 2021, launching with a fleet of autonomous Toyota Sienna MPVs in North America, based on the Toyota Mobility Services Platform that works with its connected vehicles.

Chademo to develop global ultra-fast charging standard Japan’s Chademo Association is to develop an ultra-fast charging standard for global use, working with utility companies in China – the world’s largest electric vehicle market. Chademo’s DC rapid charge connector is already said to be the world’s most popular fast-charging standard. There are around 18,500 units worldwide, offering charging at up to 60kW, though most vehicles are limited to 50kW or less, restoring 80%

of their range in half an hour. Following a memorandum of understanding signed with the China Electricity Council, a governmentbacked association of utilities, Chademo will develop a new standard to offer ultra-fast charging for highcapacity, long-range electric vehicle batteries. This will be interoperable with the existing standards, meaning today’s electric cars will also be able to use the points.

Sixt pools mobility services for corporates Sixt Group is combining all of its mobility services under a single point of contact, with a view to enabling its corporate customers to develop bespoke travel solutions for staff. The new Key Account Management structure launches in 10 countries across Europe and encompasses rental, chauffeur, ride hailing, mobility management and budgeting requirements.

evfleetworld.com • 015

RELIABLE MEMBERS OF YOUR FLEET

www.skoda-auto.com

Combined fuel consumption and CO2 emissions according to the legislation of the concerned country

SPOTLIGHT BMW 3 Series

THRICE AS GOOD? Neil Briscoe gets an early drive of the all-new, high-technology 3 Series in prototype form, to find out what’s in store for the next generation of the fleet stalwart.

THE ULTIMATE DRIVING MACHINE? The new 3 Series uses the same platform as the X3 and 5 Series, essentially comprising common hard-points and the electrical architecture. It will be around 55kg lighter, model-for-model, than the outgoing car, but slightly bigger outside and in. Under the tape, the styling also appears to have changed quite a bit — including much slimmer headlights and a more sculpted rear end. So far, we’ve only had the chance to drive a 330i, both on public roads and on the Nürburgring race track, but initial impressions are little short of excellent. The new electrically-boosted steering has exceptional feel and feedback, more akin to an old hydraulic power steering rack, and the chassis has a safe, but still playful, balance that allows you to exploit it even on a streaming wet day. One caveat — the ride quality on 19-inch wheels with the optional sports suspension felt too jittery over very poor surfaces.

018 • internationalfleetworld.com

ALTERNATIVE THINKING Four- and six-cylinder diesel and petrol engines will be carried over, but the 316i and 316d will downsize to three-cylinder units, both with sub-100gkm CO2 emissions. At the other end of the range, the 500hp M3 will get water-injection technology to help produce more power, and possibly a mild-hybrid motor which uses the electric motor for overtaking power. BMW will offer xDrive fourwheel drive as an option. The bigger news is alternative drivetrains. A fully-electric version is in the pipeline, but at least two years away, so for now the lowest-CO2 versions will be a pair of plug-in hybrids. One will be a revised version of the 330e, based on a 2.0-litre engine but offering a 80km electric range, alongside a three-cylinder version which will probably be badged 325e. PHEVs had been a significant share of fleet sales volume in the outgoing car.

NEW TECHNOLOGY The new 3 Series will get a full debut at the Paris Motor Show in October, with deliveries due in early 2019. So BMW isn’t talking trim and equipment specifics yet, nor performance figures, but we do know that it’s going to be choosy about how it lets buyers spec their new 3 Series. For instance, if you want to have the optional sporty suspension, then you will have to have the sportier steering rack too — no mixing and matching. Expect a similar trim structure to the outgoing 3 Series model, with extra safety kit across the range. The cabin, meanwhile, draws heavily on the 7 Series, and gets both the latest version of iDrive (which mixes a rotary controller with a touchscreen) and BMW’s new all-digital instrument panel, which features instruments that sweep around the outside edges of the binnacle.

IN SUMMARY This is a critical car for BMW, as it hopes to prove that a four-door saloon can still excite buyers in a world of SUVs. The model is one of the brand’s best-sellers globally, but it’s been beaten recently by the likes of the Mercedes-Benz C-Class, so needs to hit back hard, as well as deal with a growing band of rivals such as Lexus, Jaguar and Alfa Romeo. Deliveries are set to start early in 2019. NB

internationalfleetworld.com • 019

RV A N A LY S I S PEUGEOT RIFTER Converting van models into passenger cars is a clever development that brings varying degrees of success when it comes to resale value. BF Forecasts’ Dieter Fess looks at one such model, the Peugeot Rifter.

What the manufacturer said at launch: The all-new Peugeot Rifter leisure activity vehicle carries a dynamic, versatile design and premium driving experience not found anywhere else in the category. Available in two lengths, with either five or seven seats, it offers multifunctionality and modularity. Equipped with the i-Cockpit, it features a plush-yet-compact steering wheel for better grip and improved handling, an 8-inch capacitive touchscreen angled towards the driver, and a head-up display instrument panel, enhanced with chrome-plated surrounds and elegant red needles.

RESIDUAL VALUE GRADES 10 9 8 7 6 5 4 3 2 1

France

What BF Forecasts says now: The Peugeot Rifter contributes to the gentrification of the small van segment, which used to be the simplest mean of automotive transportation for persons or goods. Today, the small vans are perfectly suitable for school rides, surf trips or to pick up furniture at the shopping centre. The residual value performance of the Rifter is satisfying, although there is a spread between the different countries. Main reasons for this difference are the pricing structure of the Rifter as well as the performance of competitor models in each market. Brand: Peugeot

Model: Rifter

Available since: 2018

Prices from: (incl. VAT)

France

Germany

Spain

€23,150

€20,740

€22,400

Available only in Spain. Text and data: bähr & fees forecasts GmbH ( Ø- Values; Trade; 36 Months; 45TKM;08-2018)

Germany

Spain

About the Residual Value Grades: The residual value grades assess the residual value performance of the car model in question. Additional to the grades, a short statement addresses some of the car’s characteristics or other factors, which are relevant to its residual value performance. The residual value grades are calculated according to their residual value percentages and the monetary depreciation within three years after the purchase as a new car, considering a common mileage for the respective segment. The performance is put in relation to the residual value performance of competitor models. Engines

Petrol

Diesel

110hp

76hp*1 102hp 130hp

BF Forecasts is an independent supplier of accurate and transparent residual value forecasts as well as used car value data for the past and current used car market. BF Forecasts has been providing such data to leasing companies (both captive and non-captive), OEMs, NSCs, major company fleets as well as to insurance and investment companies inside and outside of Europe since 1998.

020 • internationalfleetworld.com

ELECTRIC, UNLIMITED. Combining crossover style and versatility with cutting-edge electric vehicle technology, e-Niro opens new opportunities for plug-in fleets. Ground-breaking technology… With a line-up already including plug-in hybrid and electric vehicles, fleets across Europe are already familiar with Kia’s alternative drivetrain technology. But the e-Niro breaks new ground – its choice of two high-capacity lithium-ion polymer batteries offer a fully-electric range of up to 485km on a single charge. It means fleets can take advantage of the low fuel, servicing and tax costs of moving to a plug-in vehicle, without compromising on the versatility they are used to. For drivers, making the switch has never been easier. With up to 204hp available the e-Niro makes easy progress at highway speeds, while its seven-inch touchscreen offers the reassurance of locating nearby charging points and showing the remaining range. Plugged into a high-power 100kW charging point, 80% of its range can be recovered in less than an hour via the socket behind its grille. e-Niro not only makes long-distance electric motoring accessible, it makes it simple too.

…in a familiar form. Launching at the end of the year, the e-Niro joins the already popular Niro line-up, alongside efficient hybrid and plug-in hybrid versions – a family which has sold a combined 65,000 units across Europe since 2016. It also broadens Kia’s globally successful crossover range, alongside the Stonic, Sportage and Sorento. While Kia’s family styling is unmistakable, the e-Niro features unique, futuristic modifications marking out the cutting-edge technology. Its unique aerodynamic bodykit and 17-inch two-tone wheels help maximise the range, while the closed grille protects an easilyaccessed charging point. Interior space is as generous as the hybrid versions, with the battery mounted beneath the boot to preserve cargo capacity (451 litres), and additional storage areas around the unique rotary shift knob. Factor in the latest driver assistance systems, and the e-Niro not only helps keep your fleet costs down, but it keeps your drivers safe too.

e-Niro breaks new ground, offering fleets a fully-electric range of up to 485km on a single charge.

For more information, visit kia.com/eu/business advertisement feature

T E L E M AT I C S

THE BIG PICTURE THE ROLE OF TELEMATICS IN HELPING BETTER MANAGE GLOBAL FLEETS IS GROWING ON THE BACK OF CONNECTED CAR TECHNOLOGY, BUT CENTRALISATION IS THE KEY TO SUCCESS. CURTIS HUTCHINSON REPORTS.

elematics is one of the fastestgrowing areas of the automotive sector as OEMs bundle increasing levels of functionality into newgeneration connected cars rolling off production lines. This progress is welcome news for fleet and mobility managers around the world. Telematics in cars has been around for decades, where it has been used to inform diagnostic tests during servicing, maintenance and repair jobs. But now, with added internet connectivity, the way data can be processed has been transformed with real-time analytics on how and where cars are being operated and this is proving to be invaluable to businesses running global fleets. According to the latest research from Counterpoint, the Hong Kongbased global industry analysis firm, the international connected cars market is expected to grow 270% by 2022 as more than 125 million connected passenger cars, with embedded connectivity, are expected to be shipped between 2018-2022. In its Internet of Things Tracker research, Counterpoint identified General Motors, BMW, Audi and Mercedes-Benz as the leaders of the global connected car market and forecasted significant growth across Europe and China over the next five years.

Automotive assistance One of the biggest drivers for telematics adoption in Europe is the rollout of eCall, an abbreviation of emergency call, which is intended to bring rapid response assistance to motorists involved in a collision anywhere in the European Union, a mandatory requirement for all new cars sold within the EU since April 2018. “In terms of overall penetration, Germany, UK and US are leading the market at present with the highest

022 • internationalfleetworld.com

percentage of total shipments with embedded connectivity sold in 2017,” says Hanish Bhatia, Counterpoint’s senior analyst for IoT and mobility. “Europe’s eCall mandate is expected to change the market dynamics with higher penetration across European countries. The adoption of eCall in Europe is expected to create ripples across other geographies thereby catalysing the overall car connectivity ecosystem.” A further global catalyst will be the in-car rollout of 5G technology in cars from 2020. Currently 2G and 3G are the dominant connectivity platforms, with 4G likely to gain traction and account for nearly 90% of connected car connections globally by 2022, according to Counterpoint. After that, 5G technology will kick-in with Japan and South Korea expected to take the lead with higher penetrations compared to other global markets. This rollout of telematics will offer fleets greater management control. Data on driving behaviour can identify the need for driver training as well as help reduce carbon footprint, an important corporate consideration under ISO 14001, the international standard determining effective environmental management compliance. Also, the benefits of accessing accurate real-time data on how fleet vehicles are performing across borders will deliver even greater asset management insight informing current and future procurement. More than just a car Whether company car and van drivers like it or not, their vehicles are no longer self-contained metal boxes but highly sophisticated platforms generating, transmitting and receiving business critical data. However, processing this extra layer of data can be a burden

for anyone in charge of fleet operations, a job function already awash with data. So what is the best way for fleet and mobility managers to address this? One of the international leaders in delivering fleet telematic solutions across the world is TomTom, operating in 60 countries across Europe, North America, South America and Australasia. “Telematics is no longer just about track and trace applications. It gives organisations the ability to integrate data for planning their wider transportation needs,” says George de Boer (above), TomTom’s leader of connected car initiatives. “Fleet and mobility managers are benefiting from receiving and interpreting real-time data on fuel usage and mileages. They are also in a position to act on the early identification of fault codes, enabling vehicles to be serviced before a problem occurs. This is all about using data to achieve the best possible asset management.” De Boer also advocates centralised fleet management strategies to enable companies operating across borders to get the best results from fleet telematics services, although acknowledging the challenge presented by some corporate structures. “If an international business is set up as a decentralised organisation, where the different countries operate relatively independently, we see them using local suppliers for their fleet telematics,” he says. “They tend to choose their own solution which fits best for their local operations. Whereas organisations with centralised decision-making on purchasing tend to standardise on their fleet and telematics operations.” >>

T E L E M AT I C S

Cloud-based telematics systems have helped fleets to improve efficiency levels and save costs

>> Heads in the cloud

A deciding factor here is often the way the IT infrastructure is managed across the organisation and whether it has adopted cloud-based solutions. If this is centralised, then the introduction of telematics across the business starts to make more economic and practical sense as data can be consolidated to help better inform company-wide strategic decision making. “The cloud has prompted a natural

trend to centralise some IT functions, especially with packages such as Office 365; the same is happening with telematics,” reveals de Boer. “Running telematics underneath the desk of someone in a local office is almost unthinkable nowadays. Because applications have moved to the Cloud it means organisations are more likely to consider standardisation as they only need a single application to benefit from greater integration and combined data.

POTENTIAL FOR START-UPS Another fleet vendor operating across borders is UK-based In-car Cleverness, the telematics arm of Accident Exchange, which distributes its solutions to parts of southern Africa, Iberia and areas of the Nordic states. With GDPR now in place, Paul O’Dowd, head of sales, highlights the importance of having secure processes in place to protect data gathered from telematics.

024 • internationalfleetworld.com

“Cloud-based systems can help facilitate a centralised approach to telematics. It enables managers to start comparing data from different fleets across the group and with standardised reporting, it allows higher senior management to get a better overview of fleet operations in different countries.” The man from TomTom says this factor is particularly important now with the new ISO 14001 certification.

“In light of the new GDPR framework, best practices in data management should remain a key consideration for fleet managers working across borders,” he says. “All telematics data should be encrypted when it arrives with the customer. Although telematics providers will receive the data, they are not at liberty to comment on driving performances unless given specific permission by the customer. In turn, it remains the sole responsibility of the employer to rectify and improve their fleet’s driving behaviour. “Fleet managers should remain alert to the risks of data breaches and third parties getting hold of their telematics data,” adds O’Dowd. "To safeguard against this, it’s a good idea for fleet managers to set out contractual agreements with their telematics suppliers stipulating their data will not be shared with third parties. In addition, it is now standard practices that any data received by telematics suppliers will remain encrypted and unreadable to external parties.” Finally, O’Dowd highlights the importance of factoring in the specific requirements of geographical localities, citing the extreme conditions presented by parts of Africa and the Nordic

Fleet and mobility managers are benefiting from receiving and interpreting real-time data on fuel usage and mileages.

internationalfleetworld.com â&#x20AC;˘ 023

The impact of GDPR Another important driver for change, which de Boer believes will increase the rollout of centralised fleet telematics, has been the adoption of the General Data Protection Regulation (GDPR) across the EU from May 2018. These rules will protect the rights of drivers and help remove any lingering thoughts that telematics might be used to spy on them, especially when it comes to personal usage. “On a European level, telematics adoption has become easier with GDPR as it has harmonised a lot of local rules. The individual has become more important and I think the key word here for everyone that wants to use connected car data is trust. We are living in a world where we see a lot of things that are trying to infringe our privacy and people are looking at that very sceptically and that’s where GDPR comes in.”

“Global companies, with big whitecollar fleets and large CO2 footprints, can steer towards improved driving behaviour to help reduce their overall emissions and achieve ISO certification which in turn improves their commercial potential to win contracts,” he says. “By operating a standardised solution they identify the best practices from different countries as they can easily compare the data. That’s a huge benefit.”

Cloud-based systems can help facilitate a centralised approach to telematics.

countries. “The needs of fleets vary considerable depending on their functions and the areas in which they operate in. For areas of Africa where there are vast expanses of landmass, accurate mapping is often a priority for fleets. Managers need to be able to accurately pinpoint where their vehicle is at all times, ensuring the safety of their drivers. In these parts of the world, a detailed mapping system to compliment telematics data is essential. “Especially pertinent for delivery firms operating fleets in more urban areas and in locations with more extreme weather, telematics is key in highlighting mechanical faults and ensuring the general health of the fleet. Particularly hot or cold countries can see vulnerable vehicle parts degrade over time, and it’s here when telematics can help pre-empt issues before they can impact day-today business. Telematics can also prove critical to helping fleets keep their vehicles driving on the most efficient routes with appropriate loads.” With telematics having a growing role to play in fleet management, in terms of improving efficiencies and achieving regulatory compliance, global companies can only reap the full benefits through the increased centralisation of their operations.

MANAGING FUEL DATA One of the most useful data fields available to fleet managers is fuel usage; analysis here across global fleets can help shape current driver behaviour and future procurement policies. Paul Holland, chief commercial officer of FLEETCOR, the corporate fuel card provider which operates in 53 countries across North America, Europe, Asia and Africa, believes the best way to interpret and manage data is to look at the bigger picture. “While data gives us invaluable insight into how fleets are performing and driver behaviour, it’s important to remember that data is only as good as its source,” he says. “Fuel consumption directly from the vehicle, for example, is unlikely to be accurate all of the time. The same goes for analysis over shorter periods of time, such as one fill of the tank. If you calculate fuel consumption figures using the month’s mileage versus fuel purchased, for example, it will be unclear how much fuel was in the vehicle at the start. Similarly, human error can lead to discrepancies; the cashier at the fuel site may input incorrect mileage when refuelling, or a driver may note the incorrect mileage in their reports. “Overall, it’s better to use insights as an indicator of use, rather than as an absolute final reporting metric. Fleet operators could keep a rolling view on consumption figures, or work from reports that include many months of data, which would help to focus on the bigger picture when it comes to managing costs and fuel consumption. “Understanding data is key to identifying areas of the fleet where there are issues that need to be addressed, but it’s important for operators to remember that they need to have the management time and resources available to manage the problem effectively. Operators should create a strategy to take back control over time, rather than trying to target every issue on day one; it’s simply too complex a task to do. “Data gathering is key for businesses and has the power to transform fleet operations; the richer the data available, the more a vehicle operator can get control over their expenses. By harnessing the data available to them, fleet operators can drive a better fuel management policy and give themselves the potential to unlock reductions in fuel consumption.”

internationalfleetworld.com • 025

CONGESTION

AT A

Congestion cost the US, France, Germany and UK economies an estimated $200 billion in 2013.

026 â&#x20AC;˘ internationalfleetworld.com

STANDSTILL A GROWING NUMBER OF CAR SALES MIGHT BE GOOD FOR THE AUTOMOTIVE MANUFACTURERS, BUT IT’S POSSIBLY NOT QUITE SO GOOD FOR OTHER BUSINESSES AND INDUSTRIES. DAVE MOSS EXPLAINS. raffic congestion is almost certainly costing your company more than you think – in fuel, social and environmental costs, drivers’ time and more. INRIX is one of the world’s biggest transport data and analytics specialists and its 2017 ‘Global Traffic Scorecard’ charted traffic congestion in 1,360 cities, across 38 countries worldwide. The US emerged as the most congested developed country in the world, with drivers averaging 41 hours a year in peak hour traffic, at a cost of $1445 a driver – and nearly $305 billion overall. The independent, UK-based Centre for Economics and Business Research (CEBR) recently undertook a major study for Inrix, analysing congestion costs in detail for the US, France, Germany and UK. The Centre’s head of transport economics, Ian Birch, points to some startling headlines. “Including the direct costs – drivers’ wasted time, plus fuel idling in gridlock – and indirect effects resulting from businesses passing on costs to consumers through higher prices, congestion cost these countries’ economies an estimated $200 billion in 2013. That’s $1,736 for each US household and over $2,000 a household in the UK, France and Germany. Without significant action, these costs are forecast to increase almost 50% to $291 billion by 2030.” Stationary vehicles rack up wasted fuel costs to make fleet managers cry: the study calculated that, in 2013, across the US, France Germany and the UK alone, idling engines wasted almost six billion litres of fuel. But growing urban traffic congestion also brings pollution and emissions concerns for fleet managers and environmentally sensitive companies alike. The research estimated that idling engines released around 15.4 million tons of CO2 equivalent into the atmosphere across the

four countries, a figure estimated to reach 17.9 million tons by 2030. Looking for congestion solutions Nick Cohn, traffic expert at TomTom, a company providing solutions involving convergence of fleet management technology, satellite navigation systems and traffic data processing, believes cities themselves are best placed to develop the right responses to congestion problems: “Cities with major growth in car use, population and income are experiencing the most severe congestion,” he says. “Examples are Mexico City, Jakarta, various cities in China and Moscow. All, however, are very actively working to handle the challenge in new ways, with big investment in alternatives to single-occupancy car travel, including new rail and bus public transport. Car-sharing has also taken off and some cities – such as Moscow – have looked at policy changes combined with infrastructure investment.” Whether building more roads really can solve congestion problems is a much discussed question. In recent years, cities from all over the world have successfully reduced jams through road improvements at particular bottlenecks, but opinions on such roadbuilding investments differ. Professor Graham Cookson, chief economist and head of research at INRIX, believes new roads are an option – in some cases: “The causes of congestion are specific to the city, and often the actual road. But the imbalance between road supply and demand makes managing roadspace critical. That includes smoothing demand and avoiding peak hour trips through flexible and remote working, ride sharing – and encouraging efficient road use through wider adoption of road user pricing. Cities and highways agencies must also optimise the

road network by embracing Intelligent Transport Solutions.” Cohn believes road building isn’t the answer. “One lesson that has come up in cities all over the world is that adding lanes of asphalt is not going to eliminate congestion,” he says. “Studies going back as far as the 1960s have shown that new highway capacity tends to simply induce more travel. Collectively we’re learning we cannot simply build our way out of road congestion – we have to be smarter, and focus on multiple options for mobility.” There’s an app for that Technology-based solutions have been used for years by fleet operators to help manage vehicles, drivers and work-flow – helped lately by live route maps to avoid congestion. But the smartphone – and ever-advancing technology – has opened up new possibilities. “One of the benefits of digitally connected vehicles is the ability to coordinate the overall fleet, or large parts of it, in a way that maximises efficiency,” says Birch. “It should be possible to provide for mobility needs with fewer vehicles by using them more effectively. A new ‘mobility economy’ based on greater sharing may not be practical for vehicles with specialised functions, but there would be general fleet management benefits arising from the overall congestion reduction.” This suggests traffic levels could fall as today’s ‘Mobility as a service’ (MaaS) applications become increasingly popular. Fred H Merrill, Professor of Economics at the Stanford Graduate School of Business in California, coauthored a major research paper including this topic, but is not convinced. “We are witnessing a lot of innovation and experimentation in the transportation space, from ride-hailing companies like Lyft and Uber, to various scooter and >>

internationalfleetworld.com • 027

CONGESTION

AT A STANDSTILL... THE COST OF DRIVING IN THE UK >> bike-sharing companies that have

recently sprung up around the world. “I’m sceptical that by themselves they will be sufficient to relieve congestion to any meaningful extent. We expect the real relief to come from two complementary technologies – widespread road pricing, and convenient carpooling. Once road usage is costly during busy times, and it’s easy for people to ride in shared vehicles with multiple passengers per car, that will truly help relieve overall congestion.” Discovering whether MaaS can effectively match fleet vehicle flexibility on business journeys in urban areas will take time, but Geraldine Priya, Frost and Sullivan’s team lead, new mobility, automotive and transportation, believes new mobility solutions could already match urban business transport demands. “A majority of service providers are currently looking to offer solutions for business travel, since its an area of growing concern for both city authorities and corporates,” she says. “A carpooling app could be used to reach the office, a car – or ride-sharing vehicle – to attend business meetings and a combination of shuttle/public transport to get home. “It’s definitely possible for an employee to not use a car, but success depends on the availability, cost and convenience of the complete integrated solution.” The cost of cutting congestion Whether growing MaaS takeup can reduce future traffic congestion remains to be seen, but researchers worldwide seem convinced that permanently reducing congestion will involve advanced technology – and widespread payment for urban road use. Prof Merrill sees telematics, traffic – and cash – becoming very closely related: “The key innovation I expect to dramatically change transportation is road pricing. Currently, it’s implemented mostly with toll gates, but with a shift to GPS-based location tracking, much more fine-grained road pricing

028 • internationalfleetworld.com

BRITISH DRIVERS SPENT

£5,795

IN 2017

INRIX Cost of Driving Study calculated vehicle ownership costs for 30 major cities in the U.K., U.S., and Germany. Leveraging INRIX global data, the study found that traffic and parking-related costs made up nearly half of the total cost of car ownership in the U.K.

ON DRIVING-RELATED COSTS

THE HIDDEN COSTS OF DRIVING The hidden, indirect costs of driving – like sitting in congestion and searching for parking – represented about a third of the total cost of vehicle ownership in the U.K.

15%

DIRECT PARKING COST

52%

33%

OWNERSHIP COST

HIDDEN PARKING & CONGESTION COSTS

£941

IN 2017

HIDDEN PARKING COSTS

£983

IN 2017

HIDDEN TRAFFIC COSTS

LONDON DRIVERS SPEND THE MOST AT

£9,430

IN 2017

ON DRIVING-RELATED COSTS

will be possible, ensuring traffic flows freely in most locations at most times, reducing delays, pollution, fuel consumption and so on.” CEBR’s Birch feels that technology will allow today’s road usage charges – completely or partly hidden in many regions as fuel taxes – to be replaced by direct charging for road access and use: “This offers the prospect of rationing road space based on willingness to pay rather than queuing – creating a competitive market.” He also feels technology will eventually deliver more than just congestion reduction: “The advent of automated, connected vehicles offers the possibility of very sophisticated road capacity management – like different pricing for alternative speed, route or timing options...”

PARKING ACCOUNTED FOR

41%

OF THE TOTAL COST OF DRIVING

FOR LONDONERS IN 2017

The key innovation I expect to change transportation is road pricing.

THE COST OF DRIVING IN THE USA AMERICANS SPENT

$10,288

COMPEX EUROPEAN PROJECT COULD DELIVER NEW WAYS TO REDUCE CONGESTION

INRIX Cost of Driving Study calculated vehicle ownership costs for 30 major cities in the U.S., U.K., and Germany. Leveraging INRIX global data, the study found that traffic and parking-related costs made up nearly half of the total cost of car ownership in the U.S.

IN 2017 1

ON DRIVING-RELATED COSTS

THE HIDDEN COSTS OF DRIVING

15%

DIRECT PARKING COST

30%

55%

$1,394

OWNERSHIP COST

HIDDEN PARKING & CONGESTION COSTS

agnum is a €2 million EUfunded project working towards future urban traffic management systems which can intelligently anticipate congestion. Combining new modelling techniques with smart city technologies, the aim is to make journeys faster while reducing the environmental impact of urban transport. The project is working on identifying which journeys will contribute most to congestion, then seeking to avoid them in real time by offering city travellers a more efficient transport mode for that journey. Instead of monitoring traffic flow on key routes, researchers are looking at individual trips within Lyon, France, to develop accurate traffic models for the city, with a goal of completely rethinking daily mobility management across an entire ‘smart’ urban area. However, focusing on such a vast picture while tracking >>

The hidden, indirect costs of driving – like sitting in congestion and searching for parking – represented about a third of the total cost of vehicle ownership in the U.S.

IN 2017

HIDDEN PARKING COSTS

$1,642

IN 2017

HIDDEN TRAFFIC COSTS

NEW YORK DRIVERS SPENT THE MOST AT

$18,926

PARKING ACCOUNTED FOR

46%

IN 2017

OF THE TOTAL COST OF DRIVING

FOR NEW YORKERS IN 2017

ON DRIVING-RELATED COSTS

COLOMBIA

VENEZUELA

RUSSIA

USA

BRAZIL

SOUTH AFRICA

TURKE Y

PU E R TO RI C O

GERMANY

POLAND

SLOVAKIA

LUXEMBOURG

CANADA

SWITZERLAND

N O RWAY

SWEDEN

AUSTRIA

UAE

ECUADOR

IRELAND

MEXICO

FRANCE

COUNTRY

INDONESIA

RANK

THAILAND

AVERAGE PEAK HOURS SPENT IN CONGESTION

All data and insights provided by

internationalfleetworld.com • 029

CONGESTION

AT A STANDSTILL... >> individual travel patterns is a big chal-

lenge. Researchers are investigating new data-analysis methods, from which unique 3D flow and congestion maps have been developed, with modelling progressing on the basis that innovations such as autonomous vehicles and smart ride-sharing will be key future aspects of city-wide mobility. Overall the project aims to help individuals, companies and cities understand the potential and drawbacks of new transport methods – while recognising their part in more efficient, sustainable urban mobility.

Back to the future Traffic congestion is estimated to cost EU member states €100 billion annually, with forecasts suggesting this could rise to €150 billion by 2050. Yet there are signs car use is slowing and congestion reducing in some cities such as London, Paris and Berlin. CREATE is a just-completed European partnership programme set up to produce guidelines for reducing traffic congestion in the longer term, aimed at cities currently seeing rapid increases in car ownership and use. It’s been analysing how traffic growth has been slowed in these cities, looking at the politics involved and the policies and regulations applied. This work has been cross referenced to historic data stretching back 20 years, to discover how successful congestion reduction policies have been – where – and why. The target was to offer the experiences and most successful anti-congestion strategies for evaluation by several east European cities, among them Bucharest, Adana, Skopje and Tallinn, where car

030 • internationalfleetworld.com

ownership and traffic congestion are continuing to rise. It is hoped that benchmarks can be evolved from the project work to encourage wider use of alternative transport modes, providing more efficient movement of people and goods in Europe’s urban areas in future. Be careful what you wish for... According to partnership research just released by the World Economic Forum and Boston Consulting Group, the coming autonomous vehicle (AV) revolution will lead to major changes in congestion and traffic flow. Surveys and modelling work of Boston (US) city traffic to research the impact of AV’s found that, together, autonomous and traditional mobility-on-demand service vehicles will eventually account for 40% of trips within city limits, which could result in a decrease in vehicle numbers of around 15%. However the study also found Mobility on Demand is likely to be a mixed blessing – with the remaining vehicles covering 16% more miles, leading to more city centre congestion and a 5.5% increase in travel times – all as a result of lower public transport system usage. If the Boston experience is mirrored in cities around the world, for businesses unable to make use of Mobility on Demand solutions in urban areas, future company vehicle use could become expensive. The study found Boston will need less than half as many parking spaces, and suggests local governments are best placed to influence congestion, with the greatest effects likely from pricing schemes which actively discourage single-occupancy vehicles.

www.greatbritishfleetevent.co.uk

3 SIMPLE QUESTIONS... 1. ARE YOU A FLEET SERVICE PROVIDER? 2. DO YOU WANT TO REACH OUT TO SENIOR FLEET DECISION-MAKERS MORE EFFECTIVELY THAN EVER BEFORE? 3. ARE YOU LOOKING TO BUILD A STRONGER EDITORIAL RELATIONSHIP WITH FLEET WORLD GROUP? IF YOU HAVE ANSWERED YES TO THESE 3 QUESTIONS, THEN THE GREAT BRITISH FLEET EVENT IS FOR YOU. CONTACT US NOW TO BE PART OF THE BEST FLEET SERVICE PROVIDER OPPORTUNITY OF 2019 ! t 01727 739160 // e info@fleetworldgroup.co.uk

FLEET PROFILE V O LV O

SWEDISH BY DESIGN

RAPID CHANGE OVER THE PAST DECADE HAS SEEN VOLVO GO FROM STRENGTH TO STRENGTH, AS IT INTRODUCES AN APPEALING BLEND OF SWEDISH DESIGN, CUTTING-EDGE TECHNOLOGY AND SUSTAINABLE SAFETY TO THE GLOBAL STAGE.

Our vision is that by 2020 no-one should be killed or seriously injured in a new Volvo car.

032 â&#x20AC;¢ internationalfleetworld.com

Manufacturer Volvo Total sales 2017 571,577 Headquarters Gothenburg, Sweden Global market share 0.7% (approx.) No. of models 8

VIEWPOINT

VOLVO Global sales, by market Territory Europe China USA Other markets Total

2016 290,925 90,930 82,726 69,751 534,332

2017 298,948 114,410 81,504 76,715 571,577

% change +2.76 +25.82 -1.48 +9.98 +6.97

ELECTRIFYING PROGRESS... he winds of change have been blowing a gale at Volvo over the past decade. Following the company’s purchase by Geely in 2010, Volvo has undergone rapid transformation, adopting new platforms, engines, cars, electrification, technology and a sustainable future. Much of this change has come since 2012, when current President and CEO, Håkan Samuelsson, took to the helm and who’s contract has recently been extended until 2022. Under his management, Volvo’s rapid progress was kick-started by the introduction of the new XC90 in May 2014. Four short years later, Volvo has a world-class and award-winning model line-up including family cars and super saloons, as well as an appealing range of SUVs – with each offering world-class design, safety, competitive engines and, of course, Swedish design touches. Indicative of the company’s growth is its appetite to recruit, with a total global workforce of 38,000 in 2017, growing significantly since Geely’s takeover, and it’s a far cry from the mass layoffs that occurred during the 2008 financial crisis, under Volvo’s previous ownership by Ford. In 2017, Volvo sold 571,577 cars, the company's fourth consecutive year of record sales. Parent company Geely’s home country of China is Volvo’s most important market, with some 20% of the total sales volume in 2017, followed by the United States (14%), Sweden (13%), the United Kingdom (8%) and Germany (7%). In 2017, Volvo sales in the USA dipped slightly, but a new factory in Charleston will likely turn that around for forthcoming sales results.

For the 2017 financial year, Volvo recorded an operating profit of €1,357 million (14,061 million SEK). Despite Chinese ownership and a growing number of internationally located manufacturing facilities, Volvo remains distinctly Swedish with its head office, product development, marketing and administration functions mostly located in Gothenburg, Sweden. Additionally, since 2011, Volvo has offices in Shanghai and Chengdu, China. The Volvo Cars China headquarters in Shanghai includes a technology centre and functions such as sales and marketing, manufacturing, purchasing, product development and all other supporting functions. Volvo has made its intentions clear on the global stage with safety remaining at the heart of the brand, followed closely by sustainability and an electric future. Samuelsson said: “Our vision is that by 2020 no one should be killed or seriously injured in a new Volvo car.” Following this, Volvo was one of the first major manufacturers to announce its electric intentions stating that every Volvo launched from 2019 will have an electric motor – thus ending its production of non-electric assisted internal combustion engine powered vehicles. The company plans to offer a mix of ‘mild hybrid’ 48-volt systems, plug-in hybrid and battery electric vehicles – notably skipping full hybrids. Today, Volvo offers a plug-in hybrid option on most of its vehicles, including its potent ‘T8 Twin Engine’ badged cars, which utilise GKN Driveline technology. These will soon be joined by smaller and more economical PHEV setups >>

Håkan Samuelsson, President & CEO A sustainable future We are finding solutions to the disruptions being posed around electrification, connectivity, mobility services and autonomous driving (AD). This year we have laid out clear strategies in each of these areas. Overseas and home market importance The Chinese passenger car market remains the fastest growing market worldwide, and Volvo Cars performed very well in China in 2017, breaking the 100,000 unit threshold for the first time. With our car plants in Chengdu, Luqiao and Daqing, as well as a stable dealer network, we are driving greater awareness of our product quality, technology, brand values and Scandinavian heritage. We continued to increase sales in Europe where the market remained strong. We are particularly pleased with 6% increase in Sweden selling almost 75,000 cars against market growth of 2%. New models As of December, the XC60 is now being built in both Gothenburg, Sweden, and in Chengdu, China. Recently it was named the car with the best overall performance by the prestigious Euro NCAP 2017 Best in Class safety awards. By launching the XC40 we have a complete SUV offering for the first time. Mobility needs Care by Volvo is our response to flexible mobility. The aim is to give customers more freedom – without having to own a car. I believe subscription services are one way forward as new mobility continues its rapid development. For subscription services and AD, connectivity and digitalisation are essential. Being a small player in this sector, we have chosen to make a virtue of our agility in forming a number of strong and mutually beneficial partnerships during the year. Autonomous ideals We have joined up with Autoliv, transferring most of our AD-related software development to our joint venture Zenuity. Importantly, we believe that we can benefit from commercialising our AD technology as this business will sell its products to other OEM’s in the future.

internationalfleetworld.com • 033

FLEET PROFILE V O LV O

>> on its smaller cars, including the XC40

SUV. Looking ahead, the range will additionally be complemented by five fully electric cars between 2019 and 2021 and petrol plug-in hybrid and ‘mild hybrid’ 48-volt options on all models. This spells the end not only for solely internal combustion powered Volvo, but also for diesel power, with the brand stating the fuel will be phased out in 2018, with no new car models offering diesel – starting with the S60 saloon. In a further commitment to electrification, Volvo also launched Polestar, a new stand-alone electrified car brand fully consolidated within the Volvo Car Group that has already started construction on its first plant in Chengdu, China. Despite its Chinese owner Geely appearing as an all-powerful parent, Volvo enjoys a high level of autonomy and has conducted deals to supply its SPA (large vehicle) and CMA (small vehicle) platforms to other companies within the Geely group, including Lynk & Co that will soon offer an XC40-based small SUV, as well as LEVC taxis that use the XC90 base and control units for its plug-in hybrid London taxi solution. Naturally, no carmaker today would be complete without an autonomous drive (AD) program and Volvo is again ahead of the curve in this regard. Uber is using modified XC90s for its selfdriving tests, which Volvo collaborates on from a hardware perspective. In a

boon for the company, Uber agreed to buy up to 24,000 cars from Volvo for its AD taxi service. Volvo has also joined up with Autoliv, transferring most of its AD-related software development to the joint venture Zenuity. The research into driverless vehicles is not solely destined for Volvo’s own hardware, however, as the company aims to create products that other OEMs will be able to purchase and apply to their own offerings. Matching safety with electric and autonomous drive technology, Volvo unveiled the 360c as proof of concept. As a part of the company’s fundamental change, and under the umbrella of its new company mission ‘Freedom to Move’, Volvo aims to offer a wide range of safe, personal and sustainable mobility services rather than merely selling cars to end consumers. By 2025 it expects to generate half of all annual sales from fully electric cars, while one-third of all cars are expected to be autonomous. Volvo is aiming to reinvent the car sales model dramatically, with over five million direct consumer relationships by the middle of next decade and offer half of all cars to customers via subscription – some of which will be supplied by Volvo’s proprietary car subscription service ‘Care by Volvo’, as well as new standalone mobility brand ‘M’, which will provide on-demand access to cars and services via an app.

2019

The year when Volvo will phase out diesel.

2.1l/100km Official combined fuel consumption for the XC60 T8 Twin Engine plug-in hybrid.

20%

of Volvo’s are sold in China.

WHERE ARE THEY MANUFACTURED...

Sweden Torslanda (Volvo Cars Torslanda – Torslandaverken) - Volvo V60, Volvo XC60, Volvo V90, Volvo XC90 Belgium Ghent (Volvo Car Gent) Volvo V40, Volvo XC40, Volvo S60, Volvo V60 Malaysia Shah Alam (Volvo Car Manufacturing Malaysia) Volvo V40, Volvo S60, Volvo S90, Volvo V60, Volvo XC40, Volvo XC60, Volvo XC90

034 • internationalfleetworld.com

India Bangalore (Volvo Auto India) - Volvo S90, Volvo XC60, Volvo XC90 United States Ridgeville, South Carolina (Volvo Car North America) Volvo S60 China Chengdu (Zhongjia Automobile Manufacturing) Volvo S60L, Volvo XC60 Daqing (Daqing Volvo Car Manufacturing) - Volvo S90, Volvo S90L Luqiao (Zhejiang Geely Manufacturing) - Volvo XC40

FLEET MODEL RANGE

V40 Variants: 5dr hatch Markets sold: Europe, Asia, Africa, South America, Oceania Fuel: 4.5-6.2l/100km CO2: 118-145g/km

S60 Variants: Sedan Markets sold: Global Fuel: TBC CO2: TBC

V60

S90

Variants: Wagon Markets sold: Global Fuel: 2.1-7.6l/100km CO2: 47-176g/km

Variants: Sedan Markets sold: Global Fuel: 2.0-7.7l/100km CO2: 46-179g/km

V90

XC40

Variants: Wagon Markets sold: Global Fuel: 2.2-7.9/100km CO2: 49-183g/km

Variants: SUV Markets sold: Global Fuel: 4.8-7.2l/100km CO2: 127-168g/km

XC60

XC90

Variants: SUV Markets sold: Global Fuel: 2.2-7.8l/100km CO2: 50-181g/km

Variants: SUV Markets sold: Global Fuel: 2.1-9.7l/100km CO2: 59-245g/km

internationalfleetworld.com â&#x20AC;˘ 035

FLEET FOCUS

POLAND

POLAND’S CAR INDUSTRY KEEPS MOVING IN THE RIGHT DIRECTION MICHAL WOJCIECHOWSKI, MANAGING DIRECTOR OF AUTOROLA POLAND, DISCUSSES HOW THE COUNTRY WILL TAKE ON UNWANTED DIESELS FROM OTHER COUNTRIES AND HOW YOUNGER DRIVERS ARE HAPPY TO CARSHARE RATHER THAN OWN THEIR OWN WHEELS.

ipped by some as being the next economic powerhouse, Poland's economy grew by 4.6% in 2017 and despite predictions of a slight slowdown in 2018, experts still forecast 4% growth overall. GDP growth has been supported by strong domestic demand, with consumption across the country growing strongly thanks to a booming labour market and the recent child benefit programme, which has buttressed households’ disposable income. Investment is also picking up thanks to a rebound in public investment as the disbursements of EU funds has accelerated. Overall, business and consumer confidence are high.

Second-hand success A cornerstone to this performance, the automotive sector remains one of the most important economic sectors in Poland, contributing some 8% of GDP with annual passenger car production in the country reaching 514,700 in 2017.

036 • internationalfleetworld.com

The number of second-hand vehicles imported in 2017 – 869,364 – exceeded sales of new by nearly two-fold with nearly 10% of these under four years old, whilst the average age (53%) remained high at 11.8 years old. To the end of August 2018, 675,353 used vehicles had been imported into Poland, with the month of August alone seeing 88,166 units enter the country, an increase of 5.3% on the same month in 2017. Forecasts are that over one million vehicles will enter the country in 2018 with the vast majority, some 60%, coming from Germany. Diesel powertrains make up 43.4% of those vehicles imported – a trend which has continued to grow since May 2017. This all makes Poland’s professional used car market very different from other western EU countries. At OEM dealership level, the ratio of used car to new cars sales is circa 0.2-0.3, while in western EU countries that figure is around two to three used cars sold for every new vehicle purchased. Domesti-

cally, with 17% growth in new vehicle registrations in 2017 (490,651 2017 Vs 418,058 in 2016), allied to the already existing 26.5 million vehicle parc, it’s clear Poland’s automotive market is on an upward trajectory. Petrol continued to be the preferred choice of fuel type in new registrations whilst demand for alternative fuel continues to rise – in 2016 seeing the highest demand (8.2%) across the EU. GDP remains low Yet despite the country being the eighth biggest economy in the EU and all the positive indicators, GDP per capita remains below the EU average. This, combined with a host of other factors, means Poland’s car parc is aged. The majority of vehicles in use domestically are aged between 10-20 years old, whilst the country also has the largest fleet (33.7%) of 20-year old plus vehicles in the EU. Although such an aged vehicle parc creates very real challenges to the

wider automotive sector and related domestic policies, it does not detract from the fact that the automotive industry is in good shape, as well as highlighting vast market potential. Autorola Poland has reported a positive, yet ever-evolving, trading environment within its domestic market. For us, the market is very positive. The economy is buoyant, vehicle sales on the whole continue to grow, the fleet distribution side of our business continues to expand, we have made a new appointment to the team and we have been delighted with the introduction of INDICATA which has enabled us to further enhance our portfolio of partners. Potential of used vehicle market Vehicle manufacturers also see the potential of the used vehicle market and are the latest users to adopt Autorola Group’s INDICATA to get a tighter handle on their remarketing activity, both within Poland and across

the EU. First to adopt the technology were Kia and Volvo. Importer organisations and the larger dealer groups that are testing INDICATA now (the businesses’ target for 2018 and 2019) deem that market intelligence, network performance and sector analysis will ensure greater used vehicle penetration within the domestic market. Along with partnerships with Kia and Volvo, the growth of Autorola Poland has also come in the form of new partnerships agreed with longstanding client – a major German OEM leasing company and bank for whom the business has been selling vehicles for since 2012. Now Autorola’s Fleet Monitor and MarketPlace systems are being used to help monitor, manage and process their vehicle fleets too. Other recent wins include a new partnership with another German brand, with Autorola providing logistics and transportation support. We very much offer a bespoke service for all our partners. This is really the first

time we have seen our compound become such big business and is certainly an opportunity for us moving ahead to cater for thousands of vehicles in a similar fashion. Crucially for us, this is our first step in building a long-term partnership with this major German brand. Other manufacturers are also waiting in the wings to agree new contracts with the business via INDICATA. Developing relationships Measuring real-life fuel consumption and CO2 emissions from passenger cars and vans, WLTP will affect the global automotive sector and put all OEMs on the same band width. WLTP is still a bit of an unknown, especially within the local market. Without doubt there will be challenges around imports, an already sensitive area of business since its last scare back in 2016 when there were rumours of excise tax introductions – something which ultimately failed to materialise, but it was enough >>

internationalfleetworld.com • 037

FLEET FOCUS

POLAND

>> to destabilise the market temporarily.

The new challenge lies in the country’s major import players’ acceptance of diesel vehicles for the future, a decision which could have a profound impact on the market as a whole. No one yet knows how the WLTP will truly impact on the local market (aside from the fact that new car registrations increased in August – the 41st month of consecutive growth – with 56,000 units sold, up 22.5% against July 2018), but it could see an increase in the number of vehicles needing remarketing in circulation as vehicles enter the market. Many of these used cars are imported via Autorola’s online remarketing portal, allowing dealers to turn stock around within days, ready for sale. Emissions regulations New emissions regulations look likely to impact on other markets across the EU and Germany, for one, is a market Poland is watching intently. Already a major export market for German brands which are likely to be affected by a number of strict urban emission guidelines soon to be enforced within the country, Poland is well positioned to absorb the potential extra capacity over the coming years.

038 • internationalfleetworld.com

Closer to home the car sharing economy is ‘booming’ with the number of mobile apps and services ever increasing. According to forecasts, the Polish market will be growing 200% annually. With changing attitudes towards driving and vehicle ownership, along with continued social urbanisation, the car sharing ‘mega trend’ is predicted to see 14 million users registered in Europe by 2021 with 1.4 million being classed as ‘heavy users’ taking multiple trips per month. Local companies lead the market, Panek and Express (both well-known rent-a-car companies) and 4Mobility (purely carsharing), with active operations within inner cities across the country. Costs each day are in the region of €21 or €0.07 a minute. This is a global trend and one that has become well established within the domestic market. Ownership schemes such as personal lease do not yet exist within the country and along with a generational change in attitude towards vehicles it has helped drive the trend towards shared ownership. This also has the implication of driving up the average vehicle age within the country to 13 years. It’s a developing area that we are keeping a keen eye on.

The car sharing economy is ‘booming’ with the number of mobile apps and services ever increasing.

POLAND ECONOMICS he Polish economy broadly kept pace in the second quarter, recording another period of solid growth. Household spending once again drove the expansion, riding on the back of a tight labour market. However, although surging exports partly offset the slowdown, fixed investment growth moderated in Q2. More recent data for the third quarter points to continued healthy, but decelerating, momentum. Industrial output accelerated, and the unemployment rate remained at a multi-year low in July. Meanwhile, the manufacturing PMI fell sharply in August. On the political front, the government is working on the budget for 2019 and approved a preliminary draft on 21 August. The draft envisions a fiscal balance of 1.8% of GDP despite an expected slowdown in economic growth. The budget centres on several social spending initiatives, including the government’s 500-plus child benefit scheme, while better tax collection should help buttress revenues. In addition, recent media reports have suggested that the government may introduce an exit tax on assets moved abroad to bolster finances, although this could ultimately reduce foreign investment in the country.

Strong household spending and robust government spending ahead of next year’s elections should fuel healthy growth going forward. FocusEconomics analysts expect growth of 4.5% in 2018, up 0.1 percentage points from last month’s forecast, and 3.5% in 2019. Comprehensive data released by the Statistical Office on 31 August confirmed that Poland’s economy continued to grow at a brisk pace in the second quarter. GDP expanded a solid 5.1% over the same period last year, which was broadly unchanged from the first quarter’s 5.2% increase and one of the strongest readings in the past decade. The domestic economy remained in the driver’s seat in Q2, fuelling the strong momentum. Private consumption growth inched up to 4.9% annually from Q1’s 4.8%, supported by a tightening labour market and high consumer sentiment. Government spending also gathered steam, rising 4.4% (Q1: +3.6% year-on-year). Investment growth, however, moderated in the quarter, driving the overall slowdown. Moreover, fixed investment expanded 4.5%, which was down notably from Q1’s 8.1% increase and despite the boost from EU funds. Tax changes that came into effect in July may have weighed on

businesses decisions in the quarter. Meanwhile, net exports contributed to growth in the second quarter, contrasting the first quarter’s subtraction. Export growth picked up to 6.9% annually in Q2 (Q1: +1.1% YoY), helped by a solid German industrial sector. Import growth also accelerated in the quarter (Q2: +6.5% YoY; Q1: +3.5%). On a quarter-on-quarter basis, the economy grew 1.0% in seasonallyadjusted terms, below the first quarter’s 1.6%. Looking ahead, domestic demand is expected to continue driving the economy in the second half of the year, as tailwinds from accommodative monetary policy, a tight labour market and EU-funds remain in place. However, growth is seen cooling somewhat from H1’s highs. Commenting on Poland’s outlook, Rafal Benecki, a chief economist at ING, says: “In our opinion, GDP growth peaked in the first half of 2018. In 2H18, we expect an average GDP growth rate of 4.4% YoY due to a slower pace of consumer spending and a lower contribution of inventories. The contribution of net exports in the euroland should be slightly positive or close to zero.”

fleetworld.co.uk • 039

DRIVEN

Mercedes-Benz CLS The CLS is cutting-edge design that plays to some traditional brand strengths, says Alex Grant. With its compact products in order and variants to suit all lifestyles, Mercedes-Benz is continuing to make ‘premium’ accessible and versatile. It’s sold 1.5 million cars worldwide in a record first eight months of 2018, and even challenging market conditions haven’t stopped it ranking among Europe’s best-selling brands. The CLS is part of that ongoing evolution. It’s not a volume car like the A-Class, but the coupé and executive saloon cross-breed plays to traditional brand strengths, defining a segment back in 2003. It shares a platform with the E-Class, takes styling cues from the latest A-Class, and counts cars such as the Audi A7 and even the Tesla Model S among its diverse rivals. However, this isn’t just a curvier E-Class. The only four-cylinder option is a 2.0-litre, 245hp four-cylinder fitted with a nine-speed automatic transmission, which emits 142g/km CO2. All other CLS variants feature 3.0-litre six-cylinder engines with four-wheel drive; two ‘mild hybrid’ petrols at 389hp and 457hp, and a pair of diesels producing 286hp and 340hp, both emitting 148g/km. So, no hybrids. But big diesels still

make sense in a car like this, built as it is for covering the length and breadth of the Continent in effortless comfort. The 340hp ‘400 d’ makes easy progress at highway speeds, with almost no wind, road or engine noise, featuring an 80-litre fuel tank to help eat up the miles. Motorway fuel economy of around 4.7l/100km is impressive, and independent testing by Emissions Analytics has shown it’s one of the cleanest diesels on the market, easily coming under the limits set by the Real Driving Emissions Step 2 (RDE2) standard during on-road use. Inside, it feels like a high-spec EClass; its dashboard trimmed in artificial leather, accented with aluminium and ash inserts and available with the all-digital instrument cluster that flows into the central infotainment screen. Three-quarter visibility is predictably tricky and the boot opening is narrow, but it’s now a five-seater and two of the three rear-seat passengers have plenty of head and leg room, on a bench which can be folded flat to extend the boot capacity. In polluted areas and tunnels it’ll even switch the climate control to recirculate the air rather than drawing it in from outside. However, not all of the technology on board stacks up so well. Android Auto and Apple CarPlay are optional and the infotainment feels a genera-

SECTOR Executive PRICE €60,000-€85,000 FUEL 5.2-8.9l/100km CO2 142-203g/km

040 • internationalfleetworld.com

tion behind the new A-Class, lacking the augmented reality navigation, which overlays directions over a live image from the front-facing camera. As in the E-Class, the steering wheel trackpad buttons are too sensitive while manoeuvring, and don’t allow track skipping without going into the Media menu on the home screen. They’re details, but persistently irritating ones. In fleet, at least, it’s a car that perhaps needs a plug-in or lowerpowered four-cylinder diesel, and possibly the old car’s Shooting Brake variant to really drive volume. But for those who can, the CLS shows growing mainstream appeal hasn’t blunted the three-pointed star’s talent for premium.

THE LOWDOWN STRENGTHS HIGH-SPEED LUXURY WITH 4.7L/100KM FUEL ECONOMY WEAKNESSES LIMITED ENGINE LINE-UP, TECHNOLOGICALLY BEHIND THE A-CLASS

THE VERDICT As big a generational step forwards as the E-Class, the CLS’s only weak points are its limited engine range and tech compared to new A-Class.

RATING

DRIVEN

Skoda Fabia In a growing Skoda line-up, does the familiar Fabia still impress? Alex Grant finds out. With its fleet-staple Octavia now joined by the Karoq and Kodiaq SUVs, and the Superb quickly becoming its sector’s benchmark product, Skoda’s business sales are booming. Record ‘true fleet’ registrations show it’s resonating with endusers, with even established names such as the Fabia continuing to grow. For now, anyway. Skoda has a compact SUV en route which could nibble away at the Fabia’s traditional customers, particularly as it gets the technological advantages of the new Group platform. The Fabia doesn’t get that new platform yet, though there’s a standard-fit AEB system and trip computer available behind this year’s subtle styling update. Most other new technology is optional.

The range is simple, comprising three mainline trims, with the sporty Monte Carlo above them. Mid-spec versions tend to be the best-sellers, which is where must-haves such as air conditioning, reversing sensors and a touchscreen with Android Auto and Apple CarPlay become standard equipment. These also get the full engine line-up; 1.0-litre petrols, producing 75hp, 95hp and 110hp. Again, most opt for midspec, and it’s lively enough that the most powerful engine is unnecessary, though the 110hp engine add a high-

SECTOR Supermini PRICE €13,500-€23,000 FUEL 4.6-4.9l/100km CO2 105-111g/km

way-friendly sixth gear, or the option of a seven-speed DSG. Skoda’s USP is storage. The Fabia is packed full of cubby holes, hooks, nets and dividers, and a parcel shelf that fixes at two levels. Unusually, given customer migration to small SUVs, the Fabia is also offered as a wagon – a good one, too, with almost a metre square load space behind the rear bench and a higher fleet sales mix than the hatch. New launches might be helping Skoda to grow, but the familiar names still impress.

RATING

Hyundai Kona Diesel Can diesel be the pick of the bunch for Hyundai’s fun Kona? By Jonathan Musk. With more than 1.6m SUVs sold since 2001, Hyundai knows the importance of offering customers an appealing range of cars. And, with the new Kona joining the refreshed Santa Fe and Tucson, it has a coherent line-up for a booming part of the market. All that was missing was a few more powertrain options, particularly for the Kona which had only been available with 1.0-litre and 1.6-litre petrols. That gap is now filled, with a 1.6-litre turbodiesel available with two power options; 115hp with a six-speed manual, and 136hp with a seven-speed DCT auto and the option to add four-wheel drive.

Both feature a diesel particulate filter, lean NOx trap and AdBlue injection, and CO2 emissions start from 111g/km. Diesel power makes the Kona immediately more comfortable to drive than the 1.0-litre petrol turbo. Its low-rev torque is more forgiving, and that flexibility shines when it’s confronted with corners or hills. Even the lower-powered version – not the punchiest engine with 115bhp – offers plenty of usable performance, available up to highway speeds. Hyundai is uncertain at launch

SECTOR Compact SUV PRICE €21,000-€30,000 FUEL 4.3-4.9l/100km CO2 111-127g/km

whether customers will spec up to the 136hp engine, which carries only a small price uplift and 3g/km CO2 penalty. Our pick would be the six speed manual, which is both fun and relaxing to drive, while returning respectable on-road fuel economy. However, real-world benefits are limited compared to the 1.0-litre petrol, and it’s worth noting Hyundai is predicting a few months’ wait before production starts, due to high demand for these engines in other models, proving there’s still a role for diesel.

RATING

internationalfleetworld.com • 041

OPINION

Thilo von Ulmenstein managing partner, fleetcompetence Group

Don’t leave money on the street ith an intelligent strategy for the management of crosscountry fleets, considerable cost reductions are achievable. But this requires changeability at two levels: internal policies and the supplier portfolio. In today's level of globalisation, there are hardly any companies that are active in just one market. Most have vehicle fleets in many European countries, or even on other continents. However, we often see still significant fleets managed purely on a national level. This means that company vehicles are allocated based on local policies. And suppliers also come from the respective home market. But fleet clearly is a category to be managed centrally. An international consolidation based on an overall strategy can lead to a reduction in fleet costs of up to 20%. This is the reason why I am increasingly seeing a trend towards the internationalisation of fleet management. To open up the potential for consolidating the fleet, a company has to act in two directions: car policy and supplier base. The question of a Europe-wide or even global car policy is often denied, referring to the different company car cultures, as well as the diverging legal and fiscal circumstances. From these indisputable facts, it is then concluded that a uniform policy is not feasible. My experience shows that this is not the case. But a prerequisite for success is that the company’s management sends out a clear signal towards consolidation – and creates a culture

042 • internationalfleetworld.com

of openness towards change. On this basis, an appropriate framework policy can be developed, which – where necessary – considers countryspecific requirements. A new international fleet strategy should be built upon different scenarios, illustrating the impact on employees and costs. Usually they range from ‘soft’ to ‘medium’ to ‘hard’. A ‘soft scenario’ does not touch the employee’s car brand or model choices, while a hard scenario does give (nearly) no choice any more. Most companies go for the middle road, but we see an increasing number of ‘hard’ policy concepts being implemented. I often see HR and procurement departments fight for sovereignty over the policy. I strongly believe that only a joint approach will bring sustainable success. Both parties have fundamental insights in areas that build the basis of a successful international fleet strategy. While HR plays a strong part in developing the ‘employee focus’,

procurement takes over the significant part of implementing the policy. It must be translated into a new supplier strategy to achieve the projected cost reductions. Usually procurement has a less emotional view on cars, which makes them impartial when it comes to supplier selection. Finally, the new consolidated strategy and policy has to be signed off by the management board. This is always a great opportunity for the team, responsible for the fleet category, to make their excellence and know-how visible and to bring the fleet management on the next level. Interestingly, I’m noticing more and more that not only is it the large companies, with fleets of tens of thousands of vehicles worldwide who recognise the advantages of an international consolidation, but also medium-sized companies are increasingly recognising that an interesting potential is being raised here. Do not leave this money on the street.

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

EVERYTHING FLEETS NEED TO KNOW W KNOW NEED KNOTO G FLEET D STO EVERYTHIN FLEETS NEE EVERYTHING

t t ou ouabout is isbab is a siene ss ss sinBusiness BuBu maximising ing isg isin mxax imim ma s. s. itie itie the opportunities. rtnun tu po r o op epp eo thth y. y.day. yada er yd erEvery EvEv

A ATSEAT eca SESEA Atca Tte Ateca y daday y ry ever keke MaMa eve y. Make every daday t at .al Pedday a gr al, Digital gre a ea Virtu its ect a, with Digital aAtecgreat day. a perf Pedal, Virtual The SEATSEAT , can be rger Ateca, with Chaits

Theand Wireless n t perfec toalear be canus ter The with SEAT Ateca, itser, Pedal, Digital hVirtual Charg ss with ClusCluste Wirele in touc r and t. Get s.alearn us nitie with to your flee inStouch Cluster andfleet. Wireless can beto perfect opportu Get Charger, addition n to your additio FOR BUSINES ESS opportunities. e SEATto mor addition your fleet. Get in touch with BUSIN 2.0us to learn about about more SEAT FOR SEAT Ateca FR for the sion about more SEAT FOR BUSINESS opportunities. 2.0 FR emis s ive: Ateca 4Dr mas SEAT the foreed DSG Official emissi 7-sp mass l kW HP)on Officia (190 EU 4Drive DSG dard d 140 SI Stan Official mass emission for the SEAT Ateca: FR 2.0 7-spee HP) EcoTEcoTS 162. 161I 140 kW m) -> (g/k(190 EU rd may bined140 and 2. Standa Com 161-16 EcoTSI kW (190 HP) 7-speed DSG 4Drive: oses CO2CO (g/km) purp tive-> 2 Combined compara(g/km) and may EU es Standard res2 for figuCO Combined ->purpos 161-162. rative TestTest for compa figures ing results. driv real ct refle Test figures for comparative results. purposes and may not not real driving reflect not reflect real driving results.

NEWS

INSIGHT

ADVICE

from the global fleet community

from experts into the fleet industry

best practice for running your fleet

www.internationalfleetworld.com

progressive

MOVE BUSINESS FORWARD WITH THE NEW VOLVO V60 In today’s business world, progress demands a different approach. With its human-centric innovations, intuitive technology and uncluttered Scandinavian design, the new V60 is the progressive choice for your organisation and your drivers. And with both T6 and T8 plug-in hybrid powertrains available, it is uniquely positioned to keep moving your business forward. EMAIL GLOBALFLEET@VOLVOCARS.COM OR CALL 00 46 313258377

Official fuel consumption for the new Volvo V60 range in l/100km: Urban 10.1 – 5.3 Extra Urban 6.1 – 4.0, Combined 7.6 – 4.4. CO2 emissions 117 – 176g/km. Fuel consumption figures are obtained from laboratory testing intended for comparisons between vehicles and may not reflect real driving results. Models may vary depending on market.