International Fleet World September 2018

The new Opel

COMBO LIFE Always at hand for your fleet needs.

TAKE THE OFFICE ANYWHERE

SMARTER STORAGE

CONNECTIVITY ON THE MOVE

INTRODUCING THE NEW VOLVO XC40 The employees of the modern workforce understand that successful business requires innovation and flexibility. So we created a compact SUV that is just as progressive as they are. With pioneering smart storage solutions and connected services including Apple CarPlay™ and Android Auto, the new XC40 will inspire your drivers’ productivity above and beyond their time in the office.

EMAIL GLOBALFLEET@VOLVOCARS.COM OR CALL 00 46 313258377

Official fuel consumption for the new Volvo XC40 range in l/100km: Urban 10 – 5.7, Extra Urban 6.4 – 4.6, Combined 7.7 – 5.0.

CO2 emissions 178 – 131g/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.

contents The new Opel

COMBO LIFE Always at hand for your fleet needs.

Chairman Jerry Ramsdale jerry@fleetworldgroup.co.uk

19 Power of Data Fleet Survey findings.

30 FEATURE: Lightweighting for fleets

34 FEATURE: The effect of Trump’s tariffs

40 DRIVEN: New Hyundai Nexo.

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

04 Fleet Review Editor John Challen talks about the future of insurance.

Yvonne Wright yvonne@fleetworldgroup.co.uk

06 Fleet in figures Breaking down the latest global vehicle sales by region.

Circulation Tracy Howell tracy@fleetworldgroup.co.uk

08 News The biggest stories from the international fleet community.

Head of Production Luke Wikner luke@fleetworldgroup.co.uk Designers Victoria Arellano victoria@fleetworldgroup.co.uk

14 Environmental News Updates from the electrified vehicle fleet market.

16 Interview Geotab’s Edward Kulperger talks telematics and vehicle data.

Dan Bennett dan.bennett@fleetworldgroup.co.uk Tina Ries tina@fleetworldgroup.co.uk

18 Analysis The residual values of the Dacia Duster under the microscope.

19 Management Results from the latest of the Shell and IFW Power of Data surveys.

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

22 Fleet Focus The Swedes post strong sales despite falling out of love with diesels.

26 Profile A key player within the VW Group, we take a look at Seat’s performance.

30 Feature Why manufacturers are going to great lengths to keep overall weights down.

34 International Trade Contemplating the implementation of tariffs by Trump.

36 Leasing How changes to the lease market could affect your buying decisions.

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

38 Driven Hyundai Nexo / SsangYong Rexton / Kia Sportage / Mazda6 / Ford Fiesta ST / Peugeot Rifter.

internationalfleetworld.com / 03

fleet review This month, editor John Challen contemplates the future of insurance and highlights the importance of a good old-fashioned meeting...

Insurance issues I make no apologies for picking up this column where I left off last time – talking about the battles between car drivers and road users in other forms of transport – but on this occasion it’s the subject of insurance that has got me thinking. There is a steadily growing noise being made around the need for cyclists to have insurance – and also (from some people) to pay the non-existent ‘road tax’ in the UK. Of course insurance is an essential part of running a vehicle (even though many drivers choose not to have it), but should cyclists be insuring their mode of transport, or themselves? With pedestrians, there IS no machine to insure, so presumably, they would need to claim on their own insurance? What about children riding bikes? Should they have their own policy, or be part of a family one? In many respects, I think it's back to the drawing board for those

who propose the idea, but future technologies dictate that the current system could become obsolete. With the adoption of carsharing – and then autonomous vehicles – there will probably be an opportunity or need to change the way vehicle insurance is handled. If one driver, who’s had zero claims, has access to the same car as someone who has claimed three times in the past two years, could the onus be shifted onto the user, to maybe encourage them to drive more safely? As people won’t technically drive autonomous vehicles – or maybe not even own them – what should be insured (the individual or the vehicle) and by whom (the fleet manager (who also might not own the vehicle) or the individual)?

I’m sure the situation will become clearer as the industry evolves – let’s hope so, because there are a lot of questions that need answering!

visit internationalfleetworld.com

We’ll meet again…

We live in a world where we can be – if we want to – directly connected to anyone anywhere else in the world in an instant.

Whether it’s an app on your smartphone where you can communicate via speech or text, an email or a chat on the phone, it’s now easier to have a conversation than ever before. Because of this situation – made possible by fantastic advances in technology – my wife was a little perplexed when I said someone who I speak with regularly via the aforementioned forms of communication was coming down to the south of the UK from the north for a meeting.

In some respects she had a point – it was time out of their day and mine and, in reality,

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we weren’t really discussing anything we couldn’t have done on the phone. But just the fact that we were in the same room at the same time made it feel different. There is a different focus in a face-to-face meeting, as well as more clarity about what is being said – which prevents any misunderstandings.

I’m sure I’m not the only person who has suffered because something has been lost in translation via an email, text message or even bad connection on a phone call.

So if you’re thinking about going back to basics and going direct, go for it. Don’t think about the potential drop in efficiency or productivity, because it might actually work the other way…

WE OFFER CUSTOMISED MOBILITY SOLUTIONS WE P ROV I D E A FULL RANGE OF DIVERSIFIED MOBILIT Y SOLUTIONS TO MEET YOUR EVOLVING NEEDS. ALDAUTOMOTIVE.COM

fleet in figures

Global sales up despite selling rate drop July saw year-on-year gains in Europe, but selling rates in North America declined noticeably, compared with the previous month. By John Challen.

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ith incentives down for the first time in 54 months, to $3,831, July sales in the US accounted for 1,369,000 light vehicles. This 3% decline translates into a selling rate of 16.8 million units a year – up 58,000 units from last year, but down 505,000 from June. Fleet sales soared 37.9% year‐on‐year (YoY), to 232,000 units, which explains why vans was the body type that grew the most – up by 40.2%. However, SUVs commanded the highest volume: the 657,000 SUVs sold in July represented a 7% increase YoY. Sales in Canada and Mexico were also down. In Canada, they fell 3.4% YoY, and the 175,000 units sold in July translate into a selling rate of 1.9 million units a year, down 69,000 from last month. Mexican consumers bought 114,000 light vehicles in July, down 6.3% YoY. This 14th consec‐ utive drop indicates a selling rate of 1.5 million units a year, a slight improvement from 1.4 million units a year last month.

Europe West European light vehicle sales increased by 8.8% YoY in July, with the sell‐ ing rate advancing to 16.6 million units a year in July compared with 16.5 million units a year in June. This result keeps the regional market on course to grow this year, driven primarily by France, Spain, and – perhaps more surprisingly given the already elevated levels of the market – Germany. Overall, analysts now expect West European light vehicle growth of 1.7% in 2018.

Russian light vehicle sales continued to record growth in July, rising by 10.6% YoY. Although the market is still enjoying double digit growth, underlying demand moved down a gear compared to the

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pace set in previous months. The selling rate came in at under 1.6 million units a year, the weakest result of the year so far.

The wider Eastern European market is set to be significantly impacted by Turkey, in which light vehicle sales were already down 11.8% for the first half of the year, before the latest deterioration in the value of the Lira.

China Amid the escalating US‐China trade war, the Chinese market has continued to slow.

Advanced data indicates that the July sell‐ ing rate was 28.4 million units a year, down 1.5% from June, and the third consecutive month of decline. On a YoY basis, sales (i.e., wholesales) declined by 3.1% in July, dragged down by weak passenger vehicle sales. Light commercial vehicle sales continued to perform well.

In order to bolster the already slowing economy, the Chinese government has announced fiscal stimulus measures and the central bank has shifted to monetary easing, which could possibly help support vehicle sales in the short run.

Other Asia Despite the severe floods in many parts of The French market – where Renault was the leading manufacturer – helped boost Europe's sales figures in July.

the country and temporary halts in production, sales in Japan held up well in July. The July selling rate was a solid 5.2 million units a year, little changed from June. On a YoY basis, sales increased by 3.5% in July, but declined by 1.1% year to date. It remains to be seen how much August sales were disrupted by the extreme heatwave.

In South Korea, sales surged in July, apparently boosted by the unexpected launch of the temporary tax cut on passen‐ ger vehicles. The July selling rate was 1.86 million units a year, up nearly 9% from a relatively weak June. Yet, the positive impact of the temporary tax cut over the remainder of the year may be limited, because the country just had a similar temporary tax cut in 2015‐2016 and the deteriorating global trade outlook is damp‐ ening consumer and business confidence.

South America In Brazil, the selling rate in July was just below 2.4 million units a year, virtually unchanged from the previous two months.

The recovery in sales has stalled, in the face of rising inflation, a weak job market, and political uncertainty ahead of the October presidential election. On a YoY basis, however, sales increased by 16% in July and 14% year‐to‐date, due to a low‐ base effect.

The Argentine market suffered a huge decline in sales for the second consecu‐ tive month in July, following the massive interest rate hikes in May, rising infla‐ tion and the deteriorating economic outlook. On a YoY basis, sales declined by 17% in June and over 16% in July, completely reversing the robust growth at the beginning of the year.

COMING SOON Out with the October 2018 issue of Fleet World magazine, FUELLING CHANGE which will look at every aspect of the debate currently raging around diesel, petrol and hybrids. It will look at the political, social, economic and business aspects of fuel choice, as well as giving fleets ideas on how to save money and run their vehicles more efficiently. It will also consider the full impact of the new WLTP emissions testing regulations, and what this means for fleets.

Find out more by emailing info@fleetworldgroup.co.uk

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SUPPLEMENT

manufacturer news

First ever A-Class Sedan revealed ercedes‐Benz will launch its first A‐Class Sedan in M Europe later this year, said to offer class‐leading rear headroom and CO emissions from 107g/km.

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The sedan joins a growing portfolio of small cars, set to grow from the current five models (A‐Class, B‐Class, CLA, CLA Shooting Brake and GLA) to eight. It follows a record 2017 for its most compact cars, with 620,000 sold globally and 60% of European customers coming from other brands.

Unlike the version sold in China, the European A‐Class Sedan doesn’t get a 6cm extended wheelbase, and it doesn’t have frameless doors, as used on the CLA.

Former FCA chief executive Sergio Marchionne dies

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ergio Marchionne, the former chief executive of Fiat Chrysler Automobiles (FCA), has died in hospital aged 66.

Unexpected complications had arisen while Mr Marchionne was recovering from shoulder surgery, which had worsened significantly, to the extent FCA revealed that he would be unable to return to work.

Days before his passing, on 21 July, FCA’s Board resolved to accelerate the CEO transition process that had been proceeding over the past months and named Mike Manley as CEO with immediate effect.

Mr Marchionne is credited with having saved FCA over his 14‐year tenure as chief executive.

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Mercedes‐Benz is claiming around a 10% increase in boot capacity versus the hatch, and a large opening to load bulky items inside.

Production for Europe will take place alongside the hatch, in Rastatt, Germany, and engines will also be shared. From launch, these will comprise the 163hp A 200 petrol, with CO2 emissions from 119g/km, and the 116hp A 180 d diesel, which consumes as little 4.0l/100km and emits 107g/km in its most efficient guise.

First deliveries are expected at the end of this year, and are likely to follow the same trim structure as the hatch‐ back. Pricing will be announced in due course.

Volkswagen Group to recall plug-ins over poisonous materials

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he Volkswagen Group has notified Germany’s Federal Motor Transport Authority (KBA) of a potential recall of its plug‐in vehicles, having discov‐ ered poisonous cadmium in part of the charging system.

A recall order is now being clarified by the KBA, affecting ‘some, but not all’ electric and hybrid Volkswagen, Audi and Porsche vehicles built between 2013 and June 2018. A spokesperson said production had been stopped immediately when the material had been discovered, and resumed once an alternative had been sourced.

Cadmium, which is said to be common in electrical equipment, is used to harden surfaces and is permissible under the European Union’s Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) directives of 2006 and 2011, Volkswagen said. It had been used within a relay for the high‐ voltage battery charger, discovered during internal and external laboratory test‐ ing, but was not declared by the supplier.

The Group added that this amounted to 0.008 grams per charger, located within a housing which was itself within a housing meaning none could be released or touched. It said a recall order is ‘currently being clarified’ with the KBA.

For the latest news, visit internationalfleetworld.com

CO2 rises growing for NEDC Correlated cars P

opular fleet segments including medium and large SUVs are being hit by the largest increases in CO2 under the new WLTP fuel econ‐ omy cycle – and bigger hikes are on the cards, according to Jato.

Latest data from Jato shows that the gap between the genuine NEDC figures and the new NEDC Correlated ones is widening. Figures generated by the firm in April showed an average 8g/km uplift to NEDC Correlated figures – now, the test data, which is regarded as more robust as it includes increased vehicle numbers, shows a differ‐ ence of 9.6g/km.

Jato added that this could increase further as the majority of cars currently re‐homologated are within the A (city cars) and B (super‐ mini) segments – which have seen some of the smallest increases of 6.6g/km and 8.1g/km respectively. It’s in some of the more popular fleet segments where the largest increases are being seen, such as medium SUVs (up 16.7g/km), large SUVs (up 14.0g/km) and D2 upper‐ medium+ (up 13.1g/km). The largest increase is seen in the luxury segment, where NEDC Correlated CO2 values are up 18.3g/km.

The firm has also warned that the process of concluding the re‐ homologation of all vehicles could take longer than expected. Currently only 20% (by volume) of model/versions have been published as being re‐homologated under WLTP test cycles. In response, carmakers including VW have warned about having to scale back production of some models as they face a backlog of vehicles that need to be tested in time for the September deadline.

Jato also expressed concerns over the impact on the car industry of the widening discrepancy between existing NEDC data and NEDC Correlated values, which along with a shift towards petrol vehicles could see manufacturers face significant penalties for non‐compliance with current EU CO2 fleet targets

in brief VWFS UK branches into daily rental Volkswagen Financial Services UK is introducing a short‐term rental service designed to offer a clear pric‐ ing and simple process and easy pick‐ ups from showrooms. The Rent‐a‐Car service is already offered in Germany and Spain, and launches in the UK in Volkswagen and Skoda locations with a range of vehicles from both brands.

Mazda CX-5 gets AdBlue system to cut NOx Mazda UK has updated the CX‐5’s 2.2‐ litre diesel engines in line with the facelifted Mazda6, adding NOx‐reduc‐ ing Selective Catalytic Reduction (SCR) to its best‐seller for the irst time. The SCR technology will be accompanied by modi ications to the injectors and combustion chamber to improve power delivery, alternations to the cooling system to shorten the inef i‐ cient warm‐up phase, and a new two‐ stage turbo system.

Cox Automotive launches mobility division Cox Automotive has launched a new business division in the US, recognising the global growth of Mobility as a Service (MaaS). The Mobility Solutions Group will be led by president Joe George, and incorporates newly‐ acquired Clutch Technologies, which is a subscription‐based vehicle usage plat‐ form designed for the auto industry.

Mazda rolls out Apple CarPlay Mazda is introducing Apple CarPlay connectivity as an upgrade for new and existing vehicles with the MZD Connect infotainment system. The dealer‐ it update, which involves hard‐ ware and software, marks the irst time Mazda has offered CarPlay connectivity in its vehicles.

internationalfleetworld.com / 09

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

business news

Car sharing could become a criminal’s playground of security issues that can potentially allow criminals to take control of shared vehicles has been uncovered by Kaspersky Lab. AThenumber software security company says that of the 13 car sharing applica‐ tions it examined – covering unnamed but major manufacturers from Europe, the US and Russia – all contained security vulnerabilities that, once access was gained via the app, a criminal could use for nefarious activities.

The research discovered that each of the examined apps contained several security issues. Researchers also found that malicious users are already capitalising on stolen accounts for car sharing applications.

Kaspersky’s researchers claim that upon successful exploitation, an attacker can discreetly gain control of the car and use it for malicious purposes – from riding for free or spying on users, to stealing the vehicle and its details, and the potential of personal data theft.

fleetiinquotes a few soundbites from a month in fleet

Our results demonstrate the strength of LeasePlan’s strategy and positive impact of our Power of One LeasePlan programme. Our strategy to lead the megatrend from ownership to subscription – ultimately providing any car, anytime, anywhere – ensures we will continue to deliver significant value creation.

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Tex Gunning, CEO of LeasePlan

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LeasePlan grows profits and global fleet easePlan has reported strong underlying net result growth in Q2 as well as an increase in its serviced leet. The Q2 2018 results saw the underlying net L result rise 10.2% to €161m while the net result was up 13.2% to €152m. Under‐ lying gross pro it was up 3.4% in Q2 to €414m (H1 down 1.9% to €785m, includ‐ ing the €30m impairment reported in Q1).

The irm said the growth was driven by signi icant contributions from Lease & Additional Services, up 6.4% in Q2 to €378m (H1 up 7.0% to €753m exclud‐ ing impairments), supported by the ongoing impact of ‘The Power of One Lease‐ Plan’ operational excellence programme.

Total gross pro it was impacted by the predictable normalisation of the Pro it/Loss on Disposal of Vehicles (as communicated in previous quarters) which declined by €10m in Q2 (H1 down by EUR 34 million).

LeasePlan also grew its serviced leet 6.7% in Q2 to 1.8 million vehicles, driven by growth in the corporate leet and SME segment.

The CarNext.com B2C and B2B digital marketplace saw volumes in the higher‐ margin B2C business increase by 70% in Q2 to 11,600 vehicles compared to Q2 2017 (H1 up 60%). B2C penetration increased to a run‐rate of 19% of total cars coming off lease and sold by LeasePlan. Used car leasing, which has been success‐ fully introduced in 7 additional countries, grew by 300% to 2,400 newly contracted vehicles in Q2, compared to 600 vehicles in Q2 2017.

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Sergio Marchionne, man and friend, is gone. I believe that the best way to honor his memory is to build on the legacy he left us, continuing to develop the human values of responsibility and openness of which he was the most ardent champion.

John Elkann, FCA chairman

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Following our analysis of a sample of the vehicles currently re-homologated [for WLTP], if this is extrapolated to the whole fleet, CO2 values could reach 130g/km in 2019, a 12g/km increase on the 118g/km currently seen in Europe.

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Jato spokesperson

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Advertorial

Alphabet Advanced Mobility Solutions cover all aspects of Business Mobility Alphabet understands the day-to-day challenges drivers and fleet managers face and has pioneered the development of Advanced Mobility Solutions to provide added value for companies and each client’s need.

Alphabet’s latest digital innovation is the AlphaGuide app for smartphones. It represents the next intelligent step towards unlimited mobility. The app is designed to make life easier for drivers and fleet managers.

Available for iOS, Android and Windows smartphones, it dynamically offers regular updates Its list of features includes the AlphaCity booking platform, service partner search with points of interests and access to leasing contract information. iOS and Android versions are compatible with their respective smartwatches.

Not only does the app make life easier for drivers and fleet managers; it contains the elements that meet their business needs. Besides sustainability, cost efficiency and optimal car utilisation are key drivers in today’s business decisions. With AlphaCity, Alphabet has developed a mobility ecosystem that goes far beyond “just” Corporate CarSharing. Following initial analysis and set up, employees can book an AlphaCity car online, access and drive it keylessly, fill it up using an in-car fuel card and return it to the parking bay when they are done driving. With multiple makes to choose from, companies now have keyless access to cars from the small car segment up to premium cars and LCVs. In addition, AlphaCity clients can seamlessly choose electric vehicles (EVs) from various brands in their fleets. The innovative product provides an assortment of different use cases such as Hotel and Business Parks, Residential CarSharing, Replacement Vehicles and more.

AlphaCity isn’t the only way Alphabet accommodates diversification. Alphabet appreciates that every company has its own unique fleet with its own specific needs. AlphaElectric is Alphabet’s holistic approach to the simple implementation of eMobility into company fleets. It provides each client with a fleet comprised of a custom mix of EVs, plug-in hybrids and combustion vehicles. As part of its in-depth consulting process, Alphabet’s Electrification Potential Analysis (EPA) starts out by determining a client’s unique driving profile as the foundation of a suitable end-to-end fleet solution.

AlphaElectric’s Mobility Consulting Tool (MCT) – a software Alphabet developed – demonstrates with clear facts and figures if and how electric cars can be integrated into the fleet, smartly and seamlessly. Recently enhanced, the MCT gathers real data on a company’s driving behaviour by means of GPS loggers installed in cars, then offers transparent recommendations for suitable electric vehicle alternatives. It even consults on charging infrastructures, and simulates the CO2 savings of the electrified fleet. The very transparent solution lets clients immediately see potential benefits for themselves.

These aspects benefit not just companies, but their employees as well. Alphabet’s mobility budget solution offers enhanced cost control even while handing more flexibility to employees on the ground, who can make cost-efficient decisions based on their professional needs and budget. AlphaFlex, for instance, is just the right choice for companies seeking to give employees even greater flexibility and personal responsibility. It offers a multimodal Business Mobility solution, including various forms of transportation. This innovative product ensures optimal flexibility while helping to control costs. By combining the primary forms of mobility, company employees can meet their individual needs for mobility based on their budget allowance. For employers, this holistic solution allows for optimal budget control over mobility costs, as it includes reporting and just one invoice for all travel movements, which lowers the administrative burden.

What’s more, AlphaFlex and all other Alphabet products can be seamlessly combined to meet a company’s exact needs and objectives.

For more information visit

www.alphabet.com/innovations

environmental news

Plans accelerate for Europe’s 350kW ultra-fast charging network

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onity, the manufacturer‐backed pan‐ European ultra‐fast charging network, has switched on its first charging points in Germany, with addi‐ tional sites across the region set to go live within months.

Backed by BMW Group, Daimler, Ford Motor Company and the Volkswagen Group, Ionity is planning 400 ultra‐fast charging stations for electric vehicles

along major European routes, capable of adding 100 miles of range per ten minutes plugged in. Once complete, the network will offer quick‐stop refills for the large‐capacity batteries in forth‐ coming long‐range electric vehicles, at intervals of no more than 75 miles.

Charging points will be supplied by multiple manufacturers, and all will feature the Combined Charging System

(CCS) DC connector. ABB has installed its first units in Lausanne, Switzerland, while Australian manufacturer Tritium will be responsible for the UK, France, Germany, Norway and Sweden, accounting for a quarter of the total network. The company opened a Euro‐ pean sales, testing and assembly facility in Amsterdam earlier this year to support its ongoing expansion plans in the region.

Tritium’s first units went live at the end of June, at the Tank and Rast service areas either side of the A61 autobahn south of Bonn, Germany, with each site offering six units. In the UK, Ionity is investigating unspecified strategically placed locations in Maidstone, Milton Keynes and Thur‐ rock, connecting the north of the country to the Channel Tunnel and Continental Europe beyond. These will be confirmed shortly, set to go live within months.

Dr. David Finn, CEO and founder of Tritium, said: “Increasing battery size and energy density means electric vehicles can travel further distances.

But charging these larger batteries fast requires high‐power charging infrastruc‐ ture. Our HPC solutions deliver up to 475kW of power, making them capable of charging EVs in a very short time. And our goal is to bring charging times down even further, ideally to the same time as it would take to fill your tank with petrol.”

LeasePlan joins global EV initiative L

easePlan has joined cities, businesses and NGOs in founding a new global initiative to massively accelerate the adoption of electric and other zero emission vehicles around the world.

The Zero Emission Vehicle Challenge is led by non‐profit organisation The Climate Group – also responsible for the EV100 initiative calling on multinationals to commit to EVs – and the C40 Cities climate leadership group. It is being supported by the State of California, New York City, EDF Energy and Unilever, as well as the cities of Paris, Milan, Copenhagen, Pittsburgh, Mexico City, and the regions of Australian Capital Territory and Navarra.

The programme is intended to send a clear signal to the

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automotive industry of the increasing demand for zero emission vehicles and to urge carmakers to stop making combustion engine vehicles in the long term – in line with moves already underway in various cities and countries to ban such vehicles in the future – while committing to a zero emission vehicle percentage of sales by 2025. Part‐ ners will also develop and advocate policies and solutions that will spark mass adoption of EVs. Helen Clarkson, CEO, The Climate Group, said: “We are calling on more global cities, states and businesses with the biggest fleets of cars and trucks to join this effort to put tens of millions of zero‐emission vehicles on the roads and highways of every nation.”

For the latest EV news, visit evfleetworld.com

in brief

MG to relaunch in Europe with electric SUV

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hinese manufacturer SAIC is relaunching the MG brand in markets outside the UK next year, starting with an electric version of the ZS compact SUV. The electric ZS will be the first MG product sold outside the UK since MG Rover Group collapsed in 2005. It follows the petrol version’s launch in the UK last year, contributing to MG Motor UK exceeding 2017’s 4,441 full‐ year sales at the start of July.

The wider roll‐out of MG products will be handled by two companies. SAIC Mobility, based in Luxembourg, will look after left‐hand drive markets, while MG Motor UK will broaden its presence beyond its home market, encompassing right‐hand drive markets of the Republic of Ireland, Malta and Cyprus.

Daniel Gregorious, head of sales and marketing at MG Motor UK, said: “[SAIC Mobility is] setting up a distribution network and the right contacts within the European countries. The first sales are scheduled for next year, selling the ZS electric, hence the ‘mobility’ angle in the name.”

UK-first charging hub unites solar power and energy storage

BPme fuel card app could include EV charging BP’s fuel payment app, BPme, could soon support payments for EV charging, following the company’s £130m (€145m) acquisition of UK charging point manufac‐ turer Chargemaster. The system monitors petrol and diesel fuel payments, and adding charging costs would offer a more manageable solution for drivers and leets versus plugging in at home.

EVBox acquires EVTronic Dutch company EVBox has acquired French fast and ultra‐fast charging point manufacturer EVTronic for an undisclosed amount. The acquisition means EVBox has 60,000 charging points, and solutions ranging from 3.7kW slow chargers to 350kW units, for home, workplace and public installation and, it is hoped, will accelerate EV demand.

Honda trials smart charging

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in numbers

new EV charging hub that includes solar power and energy storage – said to mark a UK first – has gone live in Dundee, Scotland.

Introduced through the Office for Low Emission Vehicles’ Go Ultra Low programme, the hub is located on Princes Street in the city centre and features rapid charging units, 18 bays of solar canopies and an integrated energy storage system utilising second‐life EV batteries.

The hub includes the latest versions of eVolt’s rapid charging units, including six Raption 50kW Rapid Chargers, capable of charging two vehicles simultaneously in approximately 30 minutes, and three 22kW eVolve chargers. It follows the launch of the city’s first charging hub at Aimer Square in April while the local Queen Street car park will also get six rapid chargers and two eVolve units later this year.

Honda has begun trials of a system which automatically postpones EV charging based on real‐time grid demand and drivers’ usage patterns, offering inancial rewards for doing so. SmartCharge is being tested with Fit EV customers in California, and is based on the JuiceWerks grid‐balancing software, provided by Italian utility Enel X.

Warnings about EVs and roadside recovery The UK’s Institute of the Motor Industry (IMI) is warning recovery and emergency services that their personnel will need addi‐ tional accreditation and quali ications before dealing with electric and hybrid cars.

It stressed they pose new, but not additional, risks, and that staff don’t get to choose what they are faced with at the roadside.

720,000 Plug-in vehicles to be deployed on by members of the UK’s BVRLA by 2025. A 60% market share.

Source: BVRLA

67% Source: ALD Automotive

Plug-in hybrid share of ALD Automotive’s UK company car fleet orders this year.

internationalfleetworld.com / 15

INTERVIEW Edward Kulperger, Geotab

The Big Picture With a growing global customer base, Canada-based telematics company, Geotab, reckons there’s untapped value for vehicle data that goes far beyond the traditional fleet-focused use case, as vice president of business development, Edward Kulperger, explains.

What was the thinking behind data.geotab.com?

It started around six years ago. We were accumulating a lot of data, and we only had 150,000 units in the field, so we collab‐ orated with the University of Toronto and created a project internally, looking at the data, indexing it and storing it in a way we could retrieve in a quick manner.

We now have just under 1.2m vehicles providing approxi‐ mately 2.5bn data points per day, and we recognised that this is adding a lot of value. So two years ago we started using that as a self‐improvement tool, and every department has a data subject matter expert. Once we understood its value within our organisation, we realised it would valuable externally.

We had been working with a couple of municipalities, as well as a number of different organisations, over the past 18 months to aggregate and anonymise that data and overlay it with their datasets. Then we provide it to smart cities that have a thirst for understanding what’s happening within their communities.

Which cities have you been working with?

It’s available globally. We have an office in Las Vegas, and we have started working with the City of Columbus, Ohio in North America, and Barcelona and we have an office in Madrid. We provide [the data] free, because the socioeconomic benefit is greater than letting it sit there and accumulate. We see it as a wave of the future, with regards to how transportation and mobility will evolve based on the data.

Down the road, if it will enable fleets to lower their costs because they are subsidised by municipalities using their data, we see that some kind of balance will happen in due course. I think we’re at the tip of the iceberg, understanding the true value of data and this digital economy as we transition towards it from a global perspective.

What can that data tell you?

Nine months ago we published a story looking at Barcelona’s accident blackspots, as we have a number of units travelling through those intersections and could look at the behaviour of those vehicles. So speed going in, seatbelt usage, and what’s

16 / internationalfleetworld.com

happening with the accelerometer – so are people standing on the brakes. We were able to extrapolate some interesting infor‐ mation and provide that to the city who can overlay that with whether to put ‘Slow Down’ signs near those intersections to curtail accidents. There’s a huge socioeconomic drain on soci‐ ety due to accidents.

We’re getting to unique and novel areas, such as under‐ standing when vehicles are circling looking for parking. We can provide that information back to the city as well, suggest‐ ing where they need parking facilities based on machine learn‐ ing and looking into our datasets. So we’re providing that under data.geotab.com with the tools necessary to go in and grab that data, overlay it with other subsets and provide that insight to cities.

We also understand every time a vehicle is being serviced, and when a diagnostic tool is being plugged in. We showed an OEM the services that happen in a month, and said here are the areas where you should have a service centre because they aren’t going to your dealerships. We had no idea that would even be of value.

How does acquiring hybrid and EV specialist FleetCarma fit into this?

FleetCarma evolved out of the University of Waterloo, and a couple of smart chaps there working with the OEMs to help them with their EV drivetrains. It’s a unique proposition, because they understand the data flowing from an EV; when it is getting charged and what that does to the grid, and they provide this information to utility companies. As more fleets and consumers start adopting EVs, utility providers will need to balance the loads so there are no issues with brownouts.

We’re understanding not only how vehicles can be used and how fleets can transition to EVs, but helping utilities and fleets manage that current draw to charge their vehicles. We’re not buying telematics companies, as others have done, we’ve looked for complementary technologies and similar organisa‐ tions that bring these future competencies. It really broadened our understanding of EVs, as we think that’s going to be of great desire as the technology accelerates.

“…with Geotab you’re getting an incredible amount of data. We use a curve-based algorithm that flows the data from the vehicle in a smart way.”

Can you integrate other devices – and connected cars – into your back-office?

We have. Five years ago we built our software develop‐ ment kit that enables fleets to integrate that data with maybe a logistics or maintenance app. Then we started working with telematics companies to bridge their data into our system, and ours into theirs. We do see that convergence will happen.

On the OEM side we are working with a few now. Ford vehicles will flow into MyGeotab, so if there’s a large leasing or rental organisation that has a mixed fleet, one of the great challenges around telematics is the cost of the hardware and installation of the deveice. If we can take that out of the equa‐ tion, then it alleviates that issue.

But with Geotab you’re getting an incredible amount of data. We use a curve‐based algorithm that flows the data from the vehicle in a smart way. Most telematics companies and vehicle manufacturers send it on a time‐basis, or every 100 metres, so the data is not the same. Some fleets might not need that wealth of data, but we feel it will be important in the future. Emergency services need real‐time data, main‐ tenance services need real‐time data, and we would love it if everyone sent data the way we did.

How could this change the role of telematics companies?

We are in the early stage of a transition, where you will still need hardware as a necessary component of a telematics service. But the data will go to a cloud environment, which will be non‐monopolistic, and application providers such as a TSP, service centre or insurance company will access portions of that data in a unified way.

We need to work as an ecosystem, as the good it provides – not just fleet, but congestion, safety, the weaponization of vehicles, parking and greenhouse gases in cities, getting emergency services routed to an accident in real‐time – this will all be depending on data. Fleets, OEMs and other telem‐ atics companies need to start understanding this, or the alternative is change will happen and if you don’t evolve you’re going to become a Xerox or Kodak for example.

internationalfleetworld.com / 17

ANALYSIS Residual values

Remarketing notes A relatively new player on the automotive block, Renault-owned Dacia has made big improvements with its products as well as its residual values. By Dieter Fess.

What the manufacturer said at launch:

About the residual value grades

Building on the success of the first generation, the All‐New Duster has been improved and refined in almost every area but is as versatile as ever. All‐New Duster’s ability to stray off the beaten track is expressed by the latest version’s updated design. In keeping with the model’s DNA, All‐New Duster combines robust, muscular styling with a truly assertive personality. A totally revised interior features new technologies never before seen on the Dacia range.

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.

What BF Forecasts says:

About BF Forecasts

When thinking about success stories of certain types of cars, the likes of the Beetle, Mini and other iconic models such as the Golf, the Focus and the 911 come to mind. All of these cars weren’t only successful with registrations but with residual values as well. Slowly but steadily, Dacia has also emerged as a manufacturer that needs to be mentioned, especially in relation to the Duster. Whereas the first Duster was very good in residual values, its design and quality were perceived as mediocre. With the new generation, the Duster has improved its look and feel a lot. It is no wonder though, that the actual model seems to be unbeatable when it comes to residual values. Whether it’s the loss in percentage or the loss in Euros, the Duster is first class and this applies to its value in France, Germany and Spain as well, which is very impressive.

BF Forecasts is an independent supplier of accurate and transpar‐ ent 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.

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

Brand: Dacia Prices from: (incl. VAT)

Model: Duster Available since: 2018

Engines:

Germany Petrol

Spain Diesel

France

Germany

Spain

115hp

90hp*1

€11,990

€11,490

€10,860

125hp

90hp*2 109hp

*1

Available only in Germany and Spain. *2 Available only in France. *3 Available only in Germany Text and data: bähr & fees forecasts GmbH ( Ø- Values; Trade; 36 Months; 45TKM;08-2018)

18 / internationalfleetworld.com

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Everything you need is right at your fingertips: switch between Drive, Neutral, Reverse and Park with a simple press of the button on the center console. The central gauge cluster is all-digital for quick and intuitive checking of key functions.

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7" digital cluster

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FEATURE Fleet Management

POWER OF DATA survey In association with

INTERNATIONAL

FLEETW RLD In the third of our exclusive surveys, Shell and Fleet World analysed attitudes to telematics and emerging connected technologies from 252 industry executives to see how data is affecting the way they run their fleets. With respondents operating cars, vans and HGVs, the results suggest diverse attitudes to the benefits this can offer.

internationalfleetworld.com / 19

FEATURE Fleet Management

“The capability of the technology is expanding rapidly, against a backdrop of faster mobile data connections and increasingly connected cars, vans and trucks.”

→ From Black Box, to Big Data

T

elematics is a familiar technology with leets, with proven and tangi‐ ble bene its. And, as the cost of technology comes down and the function‐ ality increases, it’s also enjoying broaden‐ ing appeal. While it’s still most prevalent among heavy goods vehicle operators – 82% of whom said they use it – some 72% of leets with lighter commercial, and 58% of those with cars, are now incorporating telematics in their vehicles.

Respondents reported a multitude of reasons for doing so, but improving fuel ef iciency was the most common (63%), closely followed by improving driver safety (59%) and cutting costs (58%).

Ef iciency bene its are well established; analysing data from 10,000 vehicles, AirMax Remote recently claimed a 9.1% improvement in fuel economy as a result

20 / internationalflfeetworld.com

of itting telematics. By monitoring behaviour, operators can promote more mechanically sympathetic driving, slash‐ ing maintenance costs, improving safety, and avoiding vehicle downtime, all help‐ ing to cover the outlay. Factors which are particularly important to large leets – those with fewer than 25 vehicles were far less likely to use telematics at all.

Telematics is a changing industry, and the capability of the technology is expanding rapidly, against a backdrop of faster mobile data connections and increasingly connected cars, vans and trucks. Utilising data from the on‐board diagnostic (OBD) port, leets are now able to monitor the health and perfor‐ mance of vehicles in real time, pre‐empt‐ ing faults and ixing them before they lead to costly downtime. Reading this

data is far more common in operators of the hardest‐working vehicles; heavy goods vehicles were twice as likely to use OBD monitoring (75%) than the overall average, and perhaps unsurpris‐ ingly demand is skewed towards those covering the longest distances.

Granularity is improving as well, as vehicles create more data and overlay it with other sources and compare with peers. It can identify which vehicles, engines and fuels it speci ic regions and industries, and even suggest which aren’t needed at all. This data can also provide detailed pictures of potential accident and traf ic blackspots, helping to show where improvements are needed in the road network, helping to bene it society as well as those who are directly deploy‐ ing the technology.

Connected cars, connected drivers

T

he bigger picture for telematics, is that it can be part of what’s known as the ‘Internet of Things’ – where devices of all kinds share data to improve ef iciency. Most notable, for businesses at least, is the smartphone. According to the GSM Association, which represents mobile network operators, 85% of Europe’s population has a mobile phone, and 70% of those are smartphones. Connection speeds and reliability of mobile data, and processing power of the devices, is also on the up; 5G connections are already being rolled out, and broadband‐fast 4G connec‐ tivity will become the world’s most

common network technology during 2019, according to the association.

In turn, it means most drivers will have a device on board capable of connecting to a high‐speed data network, plus a GPS antenna and accelerometer – the basics of a telematics ‘black box’, without any need to hard‐wire into the vehicle itself. So, it’s hardly surprising that almost half of leets surveyed (49%) said they are now using smartphone apps to monitor their drivers and vehicles. However, even these results are weighted towards the biggest (200+ vehicle) operators, who are twice as likely (59%) to use apps as those with 25 or

fewer vehicles on leet. The usage also differs, with small leets tending to primar‐ ily use apps for journey planning and rout‐ ing, while the largest operators found it useful for monitoring driver safety and underpinning accident management. This could be because routing functions among larger operators are handled by a stan‐ dalone telematics system.

These apps don’t necessarily have to report back to the operator, they can just make life easier for business travellers.

Shell’s Fill Up and Go service enables long‐distance drivers to skip queues at service stations by paying for fuel through the app, for example. Spark EV Technology, meanwhile, has a plug‐and‐ play system which combines live and historic data to predict the range of an electric vehicle and suggest places to charge en route. And both Daimler and Jaguar have also recently launched apps which can analyse drivers’ daily usage and suggest whether they are able to switch into an electric vehicle. Tech‐savvy operators can also take advantage of wearables – a market which increased 10.3% globally, to 115.4m units in 2017, according to the International Data Corpo‐ ration – to help drivers keep track of their health, breaks and sleep patterns. Some 58% of respondents said they already use this technology with their drivers.

Winning hearts and minds

R

espondents were unanimous about the bene its of telematics and connected technology in vehicles, but many still expect or have experienced resistance from drivers and senior management when rolling it out. This resonates with prior Shell research, in which over half of leet managers surveyed said they had faced negativity within the business while looking to deploy this sort of technology. So, how do you get buy‐in from co‐workers?

For drivers, the ‘carrot’ approach is better than the ‘stick’, and ‘gamification’ – turning better driving into a game for end‐users – is becoming more common. The latest version of Lightfoot’s driver behaviour monitoring solution, which launched last year, put an emphasis on creating league tables for drivers. This not only allows them to compare their performance to their peers, but it drives behaviour improve‐ ments by offering prizes for the most efficient, mechanically sympathetic drivers. The company claims a 15‐20% reduc‐ tion in fuel costs, while also cutting accident rates and vehi‐ cle maintenance bills.

For operators, it demonstrates a commitment to employee health. Optimising routes to avoid traf ic hot‐spots and danger‐ ous junctions helps reduce stress for drivers and can avoid unnecessarily long working hours too. Interestingly, many of those surveyed re lect a positive attitude from drivers. Some 39% said they saw it as a way to attract staff, while 34% added that it would help to retain them. That’s signi icantly higher

among HGV operators, 70.2% of whom said it was a useful technology when hiring drivers. However, it is seen as less bene icial for those with lighter vehicles, who were more focused on the driver safety improvements it can offer.

Ultimately, though, drivers will expect the sort of ‘on‐ demand’ services they get at home during their working lives.

With the rise of ‘Mobility as a Service’ and expectations of seamless, multi‐modal mobility, with one‐source billing, the world is becoming more data‐focused. For leets, the picture is clear; data is invaluable – ignore it at your peril.

internationalfleetworld.com / 21

FLEET FOCUS Sweden

Summer success for Sweden’s car market Brian Madsen, Autorola Sweden’s country manager explains the massive hike in sales in June and how export is helping balance a restricted demand for used diesels.

Picture credit: Shutterstock.com

J

une signalled a major change in the Swedish new car market recording the best‐ever sales month in the coun‐ try’s history. In total, 66,244 new cars were sold in June – a 73% increase – on the basis that the government has intro‐ duced new incentives for low emission cars in July, which would, in turn, penalise more polluting vehicles.

Inspired by the French system, the price of new cars is set to rise as well as the cost of ownership if you have a diesel car or larger petrol engine model. Despite that, 2018 is projected to be another strong new car year with 380,000 sales forecasts, as the buoyant Swedish economy enables consumers and corporates to continue to replace cars on a regular basis.

STRONG BRANDS IN SWEDEN Not Surprisingly, Volvo is the biggest marque, accounting for 21.6% market share followed by Volkswagen at 15.2%. They

22 / internationalfleetworld.com

are well ahead of manufacturers such as Toyota (5.9% market share), BMW (5.5%) and Kia (5.4%). The Volvo S90/V90, the Volvo XC60 and the Volkswagen Golf are the current best‐selling cars.

Diesel cars have been falling in popularity for some months accounting for 40% of new car volumes in June 2018 as opposed to 50% in June 2017. Only the major leets tend to lease diesels now with the country’s focus on plug‐in hybrid and petrol models. Monthly diesel contract hire rentals are creeping up on the back of lower residual values as domestic demand for used cars continues to fall.

This situation has caused a major challenge for dealer groups as they continue to receive a high percentage of used diesel cars back from private leases. One in four new cars is now underwritten on a private lease and you can secure a brand‐new car for as little as €200 a month, which puts

pressure on used cars that are priced at a similar level when bought on finance.

Autorola is helping dealer groups and leasing companies to analyse and plan the right remarketing strategy by using smart data. By translating the vendor’s market data on stock‐ ing days, prices and vehicle volumes, we can plan which coun‐ try to sell the cars in to optimise prices. Our job is all about working with the dealers to solve market conditions where supply exceeds demand. We are not trying to solve the prob‐ lem once the used car has come back at the end of its contract, but identifying which cars are coming back and when and then starting to pre‐sell the cars.

That means turning to a wider European market and export.

Currently 95% of used car sales on our online portal are being exported to other European countries. Export is solving a countrywide problem and dealers are receiving a good market

price for their cars. We are proactively selling cars which is keeping stocking days very low and prices high in what is a very dif icult market.

VITAL DEALER INSIGHTS Autorola’s INDICATA real‐time used vehicle management portal is providing strong dealer insights into key metrics such as local market prices and demand. Autorola can help dealers identify which cars are struggling in their current region and the current volumes available. Based on these insights the dealer can immediately decide whether to export a car or put it on their forecourt at the end of a lease contract.

This point is relevant to all cars, not just diesels. These insights are proving powerful for OEMs on a national basis as it can help them keep the national supply of used cars under close control, including management cars or rental buy backs,

internationalfleetworld.com / 23

→

FLEET FOCUS Sweden

“Drivers can be very fickle and

will travel 150km to view a used car if it means saving a few thousand Krona.”

well as national dealer stock. We like to call it retail driven, → aswholesale where high supply and low consumer demand immediately pushes the used cars into the wholesale market.

The Swedish market experienced a 43% growth in EV and plug‐in hybrid sales in June and cars such as the Golf GTE are becoming very popular. Like so many countries, the charging infrastructure is still in its infancy with charging points spring‐ ing up in retail shopping malls and fast food outlets with the offer of free electricity being offered by retailers.

Autorola has started to see Golf GTEs come back into the Swedish used market and has already exported cars to Denmark, Norway and Holland. Swedish consumers are very well informed and they do a great deal of homework online to evaluate used car prices. They know what they want and

24 / internationalfleetworld.com

what they will pay for a car before even setting foot inside a dealership, even though generally from region to region prices are consistent.

Drivers can be very fickle and will travel 150km to view a used car if it means saving a few thousand Krona. INDICATA is being used by dealer groups to help adopt consistent pric‐ ing for stock to ensure dealers in different towns don’t compete with each other.

INDICATA enables dealer groups to adopt specific pricing on high demand models safe in the knowledge that they are not undercutting each other. A group used car manager can analyse the situation on a daily basis and will quickly liaise with a dealer if they are falling out of line with group strategy and reducing prices.

Source: FocusEconomics

Sweden economics A

ccording to preliminary igures released by Statistics Sweden on 30 July, the country’s economy expanded a notable 1% over the previous quarter in seasonally‐ adjusted terms, up from Q1’s revised 0.8% igure (previously reported: +0.7% quarter‐on‐quarter) and double market expec‐ tations. Growth reached 3.3% in working‐day adjusted year‐on‐ year terms, matching the prior quarter’s igure. However, the Q2 igures are likely to be revised down in the coming months, as sequential data for the quarter–from the services PMI, the manu‐ facturing PMI and the Economic Tendency Survey–had not pointed to such a strong outturn.

The domestic economy performed well in Q2. Despite weaker consumer sentiment, private consumption growth was a robust 0.9% quarter‐on‐quarter, likely supported by a healthy labor market and wage gains.

The external sector strengthened in the second quarter.

Exports of goods and services were up 0.5%, likely supported by solid activity in regional trading partners, while imports dipped 0.1%. As a result, the external sector contributed 0.3 percentage points to growth, following a 0.4 percentage‐point subtraction in the irst quarter.

Going forward, growth is likely to continue outpacing the EU average, as high capacity utilisation and strong sentiment spurs business investment, export growth stays solid and iscal policy becomes more supportive. On the downside, the weaker housing market will likely dampen residential investment.

Downside risks stem from elevated household debt levels– particularly once monetary conditions tighten–and greater global protectionism.

The economy likely lost some steam in the second quarter, although fundamentals are still healthy. Both the services and manufacturing PMIs averaged lower in Q2 relative to Q1, despite remaining well in positive territory, while annual growth in industrial production also shifted into a lower gear in April and May following a stellar irst quarter. The economic tendency indi‐ cator paints a similar picture; readings are below the highs seen at the end of 2017, but still point to robust economic activity.

Furthermore, the labour market is irm, with the smoothed unemployment rate at a multi‐year low and strong employment gains in April and May. However, consumer con idence dropped to a near two‐year low in June, likely in luenced by recent soft‐ ness in the housing market. Property prices resumed their month‐on‐month decline in the same month following a brief rebound, and were down over 4% in annual terms.

Looking ahead, growth should be brisk, supported by strong exports, ixed investment, and a more expansionary iscal stance.

In addition, higher wages should aid private consumption, despite more pessimistic consumer sentiment. However, weaker housing investment will likely dampen activity, while elevated household debt poses a downside risk. FocusEconomics panelists see GDP rising 2.6% in 2018, unchanged from last month’s forecast, and 2.1% in 2019.

internationalfleetworld.com / 25

PROFILE Seat

Emotive Auto Seat’s sales increases are testament to a brand on the move, with a new and popular SUV range, worldwide sales ambitions and the brand serving as Volkswagen Group’s spearhead in emerging markets.

26 / internationalfleetworld.com

Manufacturer Seat Total sales 2017 468,431 Headquarters Martorell (nr. Barcelona), Spain Global market share 0.57% (approx. cars only) No. of models 8

view from the top

Luca de Meo president of Seat

Top of the spear

S

eat has become the Spanish arm of the Volkswagen Group, with its head‐ quarters based in the heart of Catalonia at Martorell, some 30km from Barcelona. The company claims to be the only carmaker that designs, devel‐ ops, manufactures and markets cars in Spain and employs some 15,000 profes‐ sionals at its manufacturing facilities. The company exports 80% of its vehicles, and is present in over 80 countries on all ive continents, with its main market in Europe.

Seat sales in Europe bounced back up in 2013 and the following years after luc‐ tuating in a downward trend from 2007 to 2012. In 2017, Seat obtained an after tax pro it of €281m, sold more than 460,000 cars and achieved a record turnover of more than €9.5bn.

The Spanish carmaker delivered a total of 468,431 vehicles in 2017, which is 14.6% more than in 2016, and an increase of nearly 60,000 units compared to the previous year, when the brand sold 408,703 cars. Seat’s leets channel recorded substantial growth during 2017 delivering 94,913 units through the company sales and leasing (true leet) channel, representing a 21% increase compared to 2016. In addition, 2017 was the ifth year in a row of growth for Seat, with sales going up by 45.9% since 2012.

Seat is in the midst of its largest product offensive that began in 2016 with the arrival of the Ateca and continued in 2017 with the restyling of the Leon, the ifth generation of the Ibiza and the introduction of the new Arona small SUV, which generated the highest sales since 2001 for the brand and increased its market cover‐ age up to nearly 75%. This igure is expected to increase further with the arrival of Seat’s large SUV offering, the Seat Tarraco, which is scheduled for the end of 2018 and offers up to seven seats. Unlike Seat’s mainstay models, however, the Tarraco will be built at Volkswagen AG’s Wolfsburg plant. Additionally, Seat’s independent sports brand will launch its irst model at the end of 2018, the Cupra Ateca.

By the end of 2017, both the Leon and Alhambra had achieved their highest ever sales igures: Leon sales rose 2.9% to reach 170,000 deliveries, while the Alham‐ bra went up by 1.7% to 31,200 units. Sales of the Ibiza totaled 152,300 units, a rise of 0.6% over 2016’s sales following a refresh.

Seat’s sales success has been bolstered by growth in its main markets, which includes Germany where sales reached 102,100 units for the irst time since 1991 (+13.4%). In second place, Seat’s home country Spain made a sales increase of 23.1% to reach 95,100 units sold. Third in line, Seat also achieved its best ever result in the United Kingdom with an 18.3% growth (56,200 cars sold). Two other main markets for the brand are Mexico (24,700 cars; +0.7%), where the brand continues to grow despite a dif icult market environment, and France (24,200; +15.6%).

Also in the brand’s top 10 markets were Italy (18,100; +9.5%) and Poland (11,100; +24.8%) where consistent growth is being observed.

Seat’s eighth largest market, Austria, obtained its best sales result with sales climbing 19.2% to reach 17,500 units, and Switzerland, which rounds off the

→

Seat Global sales, by market Territory Germany Spain United Kingdom Mexico France Other markets Total

2016 90,003 77,243 47,445 24,500 20,958 148,554 408,703

2017 102,100 95,063 56,151 24,681 24,225 166,211 468,431

%change +13.44 +23.07 +18.34 +0.74 +15.59 +11.88 +14.61

Unprecedented growth: 2017 was one of the greatest years in Seat’s history. We have brought the consolidation phase to a close and it is now time to embark on a period of growth in order to advance to the next level. In addition, the company’s good health allows us to be con ident that Seat has the potential to diversify and double its business. This is our goal.

Strategy: We must follow the path laid out in our Strategy 2025. To begin with, we need to strengthen the brand. Now that we are in the best period in the company’s history, it is time to tackle new objectives that help improve our positioning and put Seat on the map, making the brand more prominent. We must atspire to be a global company, creat‐ ing a strategy based on large global geographical areas that will enable us to increase sales and the return on our investments. We have to be ambitious, look beyond European borders and strengthen our position in markets further a ield.

Sustainability: We need to ensure the company’s competitiveness in the long term, working on the opti‐ misation of costs in all areas, harnessing the technological change towards new propulsion systems such as electric vehicles and CNG and offering services related to new mobility systems.

Transformation: Over the next few years, Seat will need to change its business model, becoming a supplier not only of products but of connected products and services.

We want to be a lexible and trans‐ parent brand, to improve processes, technological tools and speed in the decision‐making process. This will allow us to adapt to new trends and to deliver products and services according to our customers’ needs.

In short, we must embrace change and turn it into the beacon that guides us along the path towards a promising future.

internationalfleetworld.com / 27

PROFILE Seat

Where

Manufacturing plant locations

are they made?

4

4

Europe Barcelona, El Prat de Llobregat and Martorell, Spain – Ibiza, Arona and Leon.

Mladá Boleslav, Czech Republic – Ateca and Toledo.

Kvasiny, Czech Republic – Ateca.

Palmela, Portugal – Alhambra.

5

Bratislava, Slovakia – Mii.

1

2 3

FIN fleet in numbers

27% Seat’s UK fleet growth, July 2016-17.

78,700 Seat Ateca sold in its first full commercial year (2017).

2.9% Seat Leon sales increase in 2017.

28 / internationalfleetworld.com

→

1

5 23

top 10 with a 29.0% increase, reached 10,300 sales. Seat also obtained its best ever sales result in Israel (8,800 units; +10.1%), the Czech Republic (8,300; +1.4%) and Morocco (1,900; +7.0%).

In July 2018, Seat announced its next move in the Chinese market where it will spearhead Volkswagen’s growth there, with Seat becoming a shareholder of the company created by Volkswagen Group China and JAC (JAC Volkswagen Automo‐ tive Co., Ltd.). The signing of the Memorandum of Understanding (MOU) will result in the introduction of the Seat brand in the Chinese market targeting 2020‐2021.

The MOU also indicates that a new R&D centre in China will be established to develop electric vehicles, connectivity and autonomous driving technologies with operational use planned for 2021. In addition, the joint venture will launch a “competitive BEV platform”. Alongside the importance of China, Seat is also being used as the tip of the spear in North African markets.

Seat has adopted the latest connectivity technology in its vehicle range and is engaged in a global digitisation process to promote the mobility of the future. This includes exciting projects such as the electric touring racecar ‘Cupra e‐Racer’ that is being used to showcase Seat as an electri ied brand of the future and in partic‐ ular its sports‐arm, ‘Cupra’. Additionally, the brand is working on advances in “Easy Mobility”; its strategy for developing future mobility. Through partnerships with companies including Telefónica and integrating systems like Amazon’s Alexa and Shazam, the brand hopes to establish synergies with companies that promote its position as a reference in vehicle digitisation.

The brand is irmly pursuing the production of models powered by Compressed Natural Gas (CNG), which it believes is a cleaner and cheaper alternative to tradi‐ tional fuels, with environmental bene its and even possibly an alternative to elec‐ tri ied models. Before the end of 2018, the brand will launch what it claims is the most sustainable version of the Arona that will become the irst SUV on the market fuelled by CNG. The Arona TGI will be a part of Seat’s growing CNG range, which currently includes the Mii, Ibiza and Leon.

Green and technical growth is not only focused on vehicles, but also bene its Seat’s manufacturing facilities, for example the Martorell facility recently installing one of the world’s largest photovoltaic plants in the automotive industry, cover‐ ing an area equivalent to 40 football ields with 53,000 panels that together should reduce CO2 emissions by nearly 4,000 tonnes annually.

The multinational has a Technical Centre, which operates as a knowledge hub that brings together 1,000 engineers who are focused on developing innovation for Spain’s largest industrial investor in R&D.

Seat fleet model range

Mii

Ibiza

Arona

Variants: 3/5dr hatch Markets: Europe.

Fuel: 3.7-3.8l/100km CO2: 97-102g/km

Variants: 5dr hatch Markets: Europe, Africa, North America, South America Fuel: 3.8-5.0l/100km CO2: 100-113g/km

Variants: SUV Markets: Europe, North America Fuel: 4.3-5.0l/100km CO2: 113-114g/km

Toledo

Leon

Variants: 5dr hatchback Markets: Europe, Africa, North America Fuel: 4.7/100km CO2: 103-108g/km

Variants: 5dr hatch, wagon Markets: : Europe, Africa, North America, South America Fuel: 4.1-7.2l/100km CO2: 102-164g/km

Ateca

Tarraco

Alhambra

Variants: Medium SUV Markets: Europe, Africa, North America Fuel: 4.2-7.0l/100km CO2: 120-159g/km

Variants: Large SUV Markets: TBC Fuel: TBC CO2: TBC

Variants: MPV Markets: Europe Fuel: 5.2-6.7l/100km CO2: 130-157g/km

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FEATURE Lightweighting

LIGHTEN UP New lightweight materials and body structures – and production techniques – are leading to more cost-effective vehicle fleets. By Dave Moss.

T

he Global Fuel Economy Initiative (GFEI) holds world‐ wide data showing that between 2010 and 2015, aver‐ age new vehicle size increased by 3%, and weight by 5%. This data, it claims, is greatly undermining government efforts to reduce both fuel consumption and CO2 emissions.

Elisaebth Windisch, an analyst for the International Trans‐ port Forum, (ITF) an inter‐governmental transport policy think tank, feels cars are getting bigger and heavier for several reasons. “People increasingly prefer bigger car segments, which has brought increased uptake of SUVs and so on,” she says. “But weights have increased because of more safety and comfort features, air conditioning, entertainment systems ‐

30 / internationalfleetworld.com

and more passenger space. Advanced drivetrains such as hybrids with relatively heavy batteries and range‐extender engines also add to the upward trend.”

John Johnston, chief engineer of body structures for Tata Technologies in the EU, points to safety system improvements as another key reason. “NCAP was one of the biggest drivers,” he says. “High speed crash tests became more severe, and the types of test increased.”

FUTURE EMISSION STANDARDS Based on an informal industry estimate that every 10% vehi‐ cle weight reduction could improve fuel economy by 6‐8%, the

GFEI believes government policies should begin discouraging weight increases – without delay. Johnston feels it may not be quite that easy. “Government legislation is now resulting in a need to cut emissions, and many of the ‘quick wins,’ such as improved aerodynamics and reduced rolling resistance have already been implemented. Weight reduction is a highly complex and dif icult challenge.”

The GFEI feels that future national standards should include positive weight reduction incentives, by being based on vehicle size rather than weight and linked directly to manufacturers’ average economy targets. In Europe, where there’s been much debate over tougher emissions and econ‐

omy standards due for 2021 and 2025, views also differ on whether the current weight‐based standards should be replaced by a vehicle size or ‘footprint’ system – as favoured by both the GFEI and ITF. The USA, with Canada, has operated a vehicle size‐based approach to fuel economy regulations for many years. Since 2012, this has prompted manufacturers to develop so‐called lightweighting techniques – in which aluminium has featured heavily – in working towards the upcoming 2025 CAFE 54.5mpg standard. However, proposed tougher post‐ 2025 regulations are already being re‐evaluated – and could be watered down.

internationalfleetworld.com / 31

→

FEATURE Lightweighting

“Over the past 40 years the

adoption of aluminium has not been the direct result of regulation.”

→

WHY LIGHTER IS BETTER...

Chris Bayliss, deputy secretary general at the International Aluminium Institute, feels that any re‐evaluation would be a mistake. “If the push towards tougher standards is relaxed, future vehicle ef iciency will suffer. Investment to produce vehi‐ cles using more lightweight materials is expensive and needs new tooling. A full design cycle takes maybe ive years, so if regulations don’t oblige manufacturers to keep improving vehi‐ cle ef iciency, they probably won’t,” he reasons.

Matt Meenan, the Aluminum Association’s senior director of public affairs, believes the push towards lightweighting began long before emissions and economy concerns – for reasons still relevant today. “Over the past 40 years the adoption of aluminium has not been the direct result of regulation,” he says.

“Automakers have to make vehicles that deliver on consumer demands for performance, ef iciency and safety and it helps deliver on those demands.” Meenan feels the latest aluminium‐ bodied version of Ford’s top selling F‐150 pickup, introduced in the US in 2015, perfectly demonstrates today’s consumer bene‐ its. “It’s safer, with ive stars rather than the four of its steel‐ bodied predecessor, with lower emissions, increased payload and towing capacity – and best‐in‐class fuel economy of any gas‐powered pickup.”

Add in a weight saving around 700lbs (311kg) and global auto industry information analysts Ducker Worldwide’s latest growth forecast seems believable: by 2025, the company says, aluminium will comprise over 75% of US built pickup‐truck body parts, 24% of large sedans, 22% of SUVs and 18% of mini‐ van body parts...

For leet managers looking hopefully towards lower operating costs from these trends towards lighter vehicles, studies have found that up to 75% of fuel used relates directly to vehicle

32 / internationalfleetworld.com

weight. Less weight also reduces mechanical wear and tear, while secondary effects include shorter stopping distances, possible down‐sizing of suspension and tyres – lowering costs and improving comfort, while brakes also get an easier life, potentially extending service intervals. An unlikely source could also provide a future lightweighting bonus, according to Tata Technologies’ Johnston: “There could be an argument that with fully autonomous vehicles, much of today’s passive crash structure and systems won’t be required,” he muses. “As the vehicle will never crash, there’ll be huge weight reductions…”

CARS WILL BE DIFFERENT IN FUTURE...

Aluminium’s place as probably the best established lightweight automotive material faces challenges from old and new mate‐ rials alike, with new versions of steel, long the motor industry’s preferred choice, currently in demand. A recent US Center for Automotive Research report suggests use of lighter, advanced high strength steels will peak at 15% of total vehicle weight by 2020 – falling to around 5% by 2040 – as other lightweight materials gain ground.

One of those materials could be plastics, which make up around 50% of auto materials by volume in the US, but only around 10% by weight. Gina Oliver, senior director, automotive, for the Amer‐ ican Chemistry Council plastics division, feels plastic has a big future. “America’s plastic makers believe they have virtually unlimited possibilities for innovative solutions in sustainable automotive design,” she says. “Plastics are replacing other mate‐ rials, reducing assembly time and saving weight. Polycarbonate helps fuel ef iciency, while maintaining important safety features.

Used in sunroofs, it can lower a vehicle’s centre of gravity, making for easier cornering and accident avoidance – and in cars like SUVs and crossover hatchbacks. It could eventually replace glass.”

F-150 loses weight – operators and the environment benefit Many in the US lightweighting industry see Ford’s decision to move to an all‐new design for the F‐150 pickup truck as the major turning point, when one of the world’s biggest car makers effec‐ tively signposted the future direction of the North American motor industry. The F series has been America’s best‐selling truck for 37 years ‐ and its best‐selling vehicle for 32 of them, making the move to a lightweight design an especially bold move by Ford in its most important market.

The new vehicle, launched in 2015, continues in updated form today, and remains remarkably popular, with over

Experimental vehicles are already demonstrating the possi‐ bilities offered by new, ultra‐ef icient plastic‐based materials. “A recent NHTSA study replaced structural parts of a Chevrolet Silverado pickup truck with plastic and polymer composites, to evaluate safety bene its for structural plastics in future vehi‐ cles,” reveals Oliver. “The study reduced the vehicle’s overall weight by nearly 1000 pounds ‐ and found the lightweighted version provided equivalent full frontal impact performance to the baseline vehicle.”

THE FUTURE Upmarket European leet models such as the Volvo XC90, BMW i3, Mercedes‐Benz S and E Class, Jaguar F‐Pace, and Land Rover Range Rover Sport are among today’s leaders in lightweighting techniques. Smaller premium vehicles are close behind – such as the BMW X1, Volvo V60 and Audi Q1 – but will lightweight‐ ing bene its ever reach mainstream leets? “The need to reduce CO2 will continue to increase, so car lightweighting will continue,” believes Johnsoton. ”The introduction of ultra‐high strength steels has contributed strongly to the process... For low cost, high‐volume vehicles, steel will continue to be the future – unless the material costs of aluminium or composites fall drastically.”

Meenan has an equally irm but different view: “Multi‐mate‐ rial vehicle construction will drive the future of automotive manufacturing – no longer will a single material dominate,” he says. “Despite advancements in lightweighting the industry has experienced in the past few years, much more can still be done.

Aluminium in the last 25 years has seen a growth trend expected to continue for the next 25. However, additional lightweighting efforts depend on needs in the marketplace, the needs of automakers and the customer.”

896,000 examples sold in the US last year ‐ 9.3% more than in 2016. Its advanced design points to the way future light vehi‐ cles are likely to develop, with a new ladder frame chassis using much more high‐strength steel than previously, and around 490kg of aluminium incorporated in the body. The resulting weight saving of around 311kg over the older all‐ steel version allows Ford to claim signi icant operator bene‐ its, amongst them more towing and carrying capacity, alongside improved braking, better acceleration and fuel econ‐ omy, and lower emissions.

Electric vehicles and lightweighting Lightweight materials are especially important for hybrid electric, plug‐in hybrid, and full electric vehicles – accord‐ ing to the US Department of Energy. (DoE) Using these materials in such vehicles can offset the weight of power systems such as batteries and electric motors, improving the ef iciency and increasing their all‐electric range. Alter‐ natively, says the DoE, use of lightweight materials could mean a smaller, lower cost battery could be used, while keeping the all‐electric range of plug‐in vehicles constant.

In Europe, Tata Technologies says its research allows them to con idently predict that for current electric vehi‐ cles, 100kg of weight savings will result in only a 7km (4.4 miles) increase in range. In the short term – until battery technologies improve and the market focus is not purely on range, but on the energy used – they feel that the wisest investment for manufacturers will be to spend more money on a higher battery capacity.

internationalfleetworld.com / 33

FEATURE Tariffs

TRUMP’S TARIFFS With his ‘America First’ mantra, President Trump is trying to protect his own county’s economy by proposing tariffs on a wide range of products – including imported passenger cars. Our man in North America, Mark Boada, assesses the possible impact of these tariffs on the fleet industry.

T

he news is awash with calamitous headlines about the Trump tariffs, not least of which proclaim poten‐ tially signi icant job losses for US autoworkers and price increases on both domestically made vehicles and imports.

But I look at the headlines in view of a long‐standing observation that people in general overreact to news, both the good and the bad – particularly to the bad.

Now, I’m not here to say that Trump’s proposed tariff of up to 25% on imported cars wouldn’t result in a crushing increase in the cost for the typical buyers of a Mercedes Benz, Toyota or even a sub‐ compact Hyundai. For its part, the Alliance of Auto Manufacturers, whose 12 members include the largest US and foreign OEMs, estimates that the measure would cost American buyers $45 billion a year, which global news service Reuters calculates as an average of $5,800 for each imported car sold in the US.

34 / internationalfleetworld.com

The impact of tariffs However, it’s important to assess calmly and carefully what the impact of that tariff – which may be months away from implementation, if it happens at all – would be on US leets, above and beyond the tariffs on imported steel and aluminium that went into effect on 1 July 2018. Truth be told, it’s not yet clear, but even in the worst‐case scenario, it’s not quite as bad as it may appear. Let me count the reasons: 1) Many foreign‐badged autos are made in the United States. As articulated so far, the tariff would apply only to vehi‐ cles assembled outside the US. But many of the most popular leet vehicles made by foreign OEMs are assembled here. The list includes Toyota, Honda, Nissan, Subaru, Audi, BMW, Volkswagen, Hyundai and Kia. So even if the tariff, which is under study by the US Commerce Department, goes into effect,

leets that acquire these vehicles might well avoid it. On the other hand, many US‐badged leet vehicles are imported, most notably from GM and Ford plants in Canada and Mexico.

2) The resale value of in‐service vehi‐ cles may rise. Used car prices are already rising as a result of the imported metals tariffs already in place, as well as the prospect that the import car tariff might go into effect. This could at least soften the blow to leets.

3) The impact will be on a limited number of vehicles. Initially, the tariff would only apply to about a fourth to a third of the leet’s inventory, at most – that portion of the leet that is being replaced over the following 12 months. By the time that happens, the tariff may be smaller or non‐ existent, given the uproar from all corners, domestic and foreign, against it, and the possibility that the US proposal is merely an opening position for trade talks.

THE IMPACT ON FLEETS

4) Fleet ‘right‐sizing’ may offset higher acquisition costs. Many leets have been making efforts to reduce the number of vehicles in their inventory, beyond those rendered super luous by layoffs. Today, the ever‐increasing availability of ride‐ hailing services and the emergence of car‐sharing plans by OEMs may make additional ef iciencies possible.

More trouble beyond tariffs?

Even if the imported car tariff concept is nothing more than a Trump bargaining chip, it’s not to say that fleets won’t be hit by other measures. For one thing, the tariffs on imported metals means even the prices of bona‐fide US‐assembled autos will go higher, if only marginally, say, by one to two hundred dollars. For another, there’s the possibility of a stand‐alone tariff on imported auto parts, of which virtually no American‐ made vehicle is free.

In any case, fleets already have been – or should have been – girding them‐ selves for higher costs. Cars contain ever‐more and expensive electronics, safety gear and exotic materials; fuel costs have been rising as the price of oil bottomed out more than a year ago and interest rates, which have been moving up for some time, are projected to go still higher over the next 12 months, as the Federal Reserve Bank raises short‐term rates to guard against the inflationary pressures of full employment and wider federal budget deficits.

These make inding further leet cost‐ savings increasingly important. The hope is that leets will ind them in greater fuel ef iciency and lower accident costs from better safety performance.

One way or another, the Chinese seem to be getting their wish: as they say, “May you live in interesting times.”

“Truth be told, it’s not yet clear, but even in the worstcase scenario, it’s not quite as bad as it may appear.”

internationalfleetworld.com / 35

FEATURE Leasing & Mobility

FOR THE LOVE OF

LEASING Whether it is the ownership vs usership debate or the overall concept of mobility as a service (MaaS), the leasing industry needs to be ready for change in the automotive sector. By John Challen.

T

he leasing sector has enjoyed continued growth for many years now, with those who use it being happy to take advantage of flexible and manageable routes to vehicle acquisition. Many of the signs are pointing towards this trend continuing but, in the ever‐evolving automotive industry, nothing can be taken for granted. When terms such as ‘future of mobility’ and ‘Mobility as a Service (MaaS)’ start appearing with increased regularity, it can lead to companies taking stock, but also thinking about their future vehicle fleets and how to make them more cost‐effective.

This particular angle was one of those discussed at The Leasing Forum 2018, held in March in Warsaw, Poland. The event brought together a range of stakeholders to discuss the impact of evolving mobility trends on the fleet and leasing industry, including Frost & Sullivan, which was one of the partners for the event.

A presentation by Mubarak Moosa, director of Central and East Europe (CEE) at Frost and Sullivan, on the ‘Future of Mobility’ focused on the ways in which new mobility business models and digitisation are set to unleash innovation and disruption across the B2B ecosystem.

THESE ARE THE TOP SIX KEY TAKEAWAYS FROM MOOSA’S PRESENTATION: 1. Integrated mobility has evolved as a response to customers demanding intuitive services in both B2C and B2B environ‐ ments. Acknowledging this, many actors are making significant investments towards delivering the ‘killer’ proposition and promoting a seamless user experience. In the process, a new ecosystem of integrated mobility is emerging.

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Company car leasing is one among many mobility solutions available in the market. Quite a few innovative and flexible mobility solutions are posing fierce competition to the fleet leasing industry.

While undoubtedly challenging, such developments should be treated as an opportunity for transformative growth by industry participants. Mobility Mixx from Lease‐ Plan, Moovel by Daimler and Moovit from BMW are among the novel solutions that are reframing the future of mobility.

2. Digitisation is changing the way vehicles are financed by making the process faster, safer and more user‐friendly.

Companies like DocuSign and AutoFi are in the vanguard of such trends. Financing arms of OEMs are actively leverag‐ ing digital platforms, working on cutting‐edge Fintech, Blockchain and P2P solutions.

3. Electric vehicle leasing has been gaining traction in Europe in recent years and has progressed to a stage where it is not only about offering customers the lease of an elec‐ tric car but, equally, offering them an integrated solution comprising battery and charging infrastructure as part of the package.

In Europe, EV leasing is expected to grow at a rate of 15.4% in 2018 hitting a sales volume of 142,000 units. While OEMs will have the chance to shine as they focus on selling EV lease contracts directly to customers rather than selling outright, for lease companies this will represent an oppor‐ tunity cost. Tesla Leasing, BMW (i3) and Mercedes Benz (B Class) are riding on the momentum toward EV leasing.

MaaS FACTS

“Quite a few innovative and flexible mobility solutions are posing fierce competition to the fleet leasing industry.”

4. Shared mobility is another big game changer for the car leas‐ ing industry. AlphaCity from Alphabet, for instance, offers a unique, customised approach to mobility solutions. A recent corporate mobility survey By Frost & Sullivan showed that, although the concept of the company car will continue to domi‐ nate in the short term, the highest levels of future interest amongst businesses will be for shared modes of mobility like corporate car sharing and carpooling.

5. Private leasing has been amongst the most recent and successful developments in the car leasing market. It originated with OEMs putting their surplus stock on the market without disturbing the retail sector. Started as a inancial lease, it is now offered as a full‐service operating lease product. The demand for private lease cars is increasing, especially in Europe, in lu‐ enced by factors such as mobility budgets and customers opting for cash in lieu of company cars.

6. Data monetisation represents a proverbial goldmine for leas‐ ing companies and car manufacturers. With access to over 200 data points from a car, there is both the ability and the oppor‐ tunity to create new revenue streams by monetising such data.

Business models based on data monetisation—like bartering, brokering and business intelligence—are already widely used in the automotive domain.

Revenue generation can be further accelerated through the customisation of business and pricing models according to use case and data type. For example, Renault Nissan alliance partnered with technology irm The Floow to deliver vehicle generated data to insurance companies, enabling user‐ based insurance premiums.

There was more talk of MaaS at the recent BVRLA Fleet Technology Congress, speci ically what impact it might have on the UK market. “14% of UK consumer spending is on transport. It’s bigger than food, clothing and more – it’s the single largest sector,” said Paul Campion, CEO Transport Systems Catapult. And of course all that food and shirts have used transport to get to shops before we buy them in the irst place.

Despite this fact, a word of caution is due when discussing MaaS as it can be a confusing all‐encompassing term. Ashish Khanna, partner at L.E.K. Consulting, said: “On the one side we have the public sector view; that the consumer has a seamless journey and a mass transport link. And at the other end of the spectrum we have the automotive OEMs: subscription services, car share services, car rental companies.”

Although relatively new to the market, car sharing and other new transport business models are themselves at risk of disruption. Khanna continues, “As soon as robo cars appear, car sharing goes away.” Despite many manufacturers including Jaguar Land Rover recently launching Liquid car rental service and Volkswagen announcing WE (its electric car sharing service due to start in Germany in 2019), there’s a real risk these business models won’t survive in the long term because it is dif icult for companies to see a return on investment when technology is moving quicker than a typical ive‐ten year business plan. A key takeaway is that disruptive technol‐ ogy can itself be disrupted. “Uber today, is worried about being disrupted by Waymo,” Khanna added, “and Waymo will crush Uber’s business model.”

The knock‐on effect of these far‐reaching disruptive models comes when government tries to plan infrastruc‐ ture. If governments are tempted to adopt potentially lash‐ in‐the‐pan technologies, they risk pointless and short‐lived expenditure.

Conversely, MaaS puts urban planning right at the centre of policy making and is an exciting area that leets can participate in, says the BVRLA. The question of how to get people to transition from vehicle ownership to MaaS, however, isn’t quite as clear. For one thing, consumers aren’t yet pushing for MaaS, but rather service companies are.

Challenges include changing the mind‐set of the millions of car drivers and people being used to changing them regularly, or every three years for leets. Scrappage schemes are often promoted as a means to rid our roads of the higher‐polluting vehicles, but the BVRLA says this isn’t necessarily a wise approach. Instead, Gerry Keaney illustrates the idea of mobility credits – a means whereby people aren’t swapping a car with yet another car – particularly when that car is not yet likely to be electric – and instead credits could be used on any feature of the transport system, from rental cars to trains, taxis and buses.

Autonomous vehicles are often touted as one answer to the future too, and this would likely mean cars are built to last longer, not fewer years as is the current model and mind‐set of consumers. KPMG’s Justin Benson says cars may be required to last two life‐cycles, or around 15‐years time. And beyond 30‐40 years’ time, it’s even possible to envisage that it may even be illegal for humans to drive at all.

internationalfleetworld.com / 37

SsangYong Rexton SsangYong’s durable flagship puts the focus on roadgoing luxury, explains Alex Grant.

SECTOR Large SUV PRICE €30,000-€45,000 FUEL 7.6-10.4l/100km CO2 199-242g/km

G

iven its specialism in rugged off‐roaders, SsangYong large SUVs, and a quick, intuitive touchscreen infotainment feels well placed to take advantage of a European system too. market recording inexorably rising demand for SUVs. Hyundai and Kia have shown there’s a market for near‐ And, with a portfolio of new, higher‐quality products, electri‐ €50,000 Korean luxury SUVs, and top‐spec Rextons can fied drivetrains and plans to grow its sales share in the region, certainly meet those same expectations, getting 20‐inch it’s a brand set to become more familiar with fleets. wheels and soft, diamond‐stitched Nappa leather upholstery, The Rexton is its flagship; slightly larger than key rivals, but typically priced under €45,000. All European markets get the Kia Sorento and Hyundai Santa Fe, but with a price SsangYong’s 181hp, 2.2‐litre, four‐cylinder diesel engine, advantage over either, as an aid to visibility. Most markets will though some also get the alternative of a 225hp 2.0‐litre be offered a five‐year warranty, though that’s extended to seven gasoline option. Both can be equipped with two or years and 150,000 miles (240,000km) in the UK, reflecting four‐wheel drive, and six‐speed manual or seven‐speed confidence in the durability of the products. automatic transmissions sourced from There is an established, if small, market Mercedes‐Benz. for this car across the region. So the foun‐ We tested it with the diesel engine, which dations are pretty similar to the old Rexton; is likely to be the more popular option with an ultra‐stiff body‐on‐frame construction, business users in Europe, and four‐wheel where most rivals have a monocoque chas‐ drive. The Rexton remains a durable sis, and the 3.5‐tonne maximum towing workhorse, despite gaining a softer side, weight that’s made its predecessors a but it’s ultimately not as car‐like as its main favourite with horse and caravan owners. rivals; sluggish and noisy under load, with a Switchable four‐wheel drive and a sophis‐ tendency to shudder over rough surfaces ticated multi‐link rear axle, to aid traction because of the stiff chassis. Fuel consump‐ off‐road, are standard fit. tion of over 8.5l/100km is typical on a The difference here, is a much‐needed mixed route, running in the selectable two‐ focus on making what had been quite an wheel drive mode, but that’s close to agricultural machine a lot more civilised on brochure figures and the 70‐litre fuel tank The Rexton manages the road. So anything you can see and means drivers needn’t be too familiar with to be a true ute, with a touch is worlds apart from the previous their nearest forecourt. softer side for on-road generation – still a little plasticky, compared Of course, SsangYong’s volume aspira‐ to rivals, but surprisingly plush with tions in fleet rest more with the Qashqai‐ use. It’s become well its wood inlays and soft nappa leather rivalling new Korando due next year, and the placed to capitalise on upholstery. It’s no driver’s car, but the same‐size EV due shortly afterwards. But for a growing part of the Rexton offers quiet, comfortable high‐ those who need the space and capability of fleet market. speed cruising ability, with a commanding this flagship 4x4, the on‐road compromises driving position even compared to other are far fewer than its predecessor.

what we think

38 / internationalfleetworld.com

Ford Fiesta ST Is Ford’s latest Fiesta ST king of the current hot hatch crop? Jonathan Musk finds out…

SECTOR Supermini PRICE €22,100-€25,100 FUEL 6.0l/100km CO2 136g/km

F

or the first time in a Ford Performance vehicle, a 1.5‐ litre three‐cylinder petrol turbo “EcoBoost” unit is used to pump out an impressive 200hp and 290Nm torque.

This translates onto the tarmac as 0‐100km/h in 6.5 seconds onto a top speed of 232km/h. Despite the available perfor‐ mance, fuel economy is a rated at 6.0l/100km on the com‐ bined cycle and CO2 is just 136g/km.

Straight line speed is only fun if the car is able to handle its power and fortunately Ford has equipped the Fiesta ST with patented force vectoring springs and an optional Quaife limit‐ slip differential (LSD). ‘Normal’, ‘Sport’ and ‘Track’ driving modes control performance level and are far from being a gimmick, transforming the ST from fire spitting hot‐hatch into neighbour‐friendly mode at the touch of a button.

Inside, there’s not much to differentiate the ST from a reg‐ ular Fiesta, aside from close‐fitting Recaro seats that may prove uncomfortable for larger individuals. Three‐ and five‐ door variants are available and each trim variant comes equipped with Sync3 infotainment and a 6.5‐inch touchscreen display (or optional 8.0‐inch screen). Additional styling packs add different 17‐inch alloys, while the top‐of‐the‐range model sports 18‐inch rims and a few useful extras such as a rear view camera and rain sensing wipers.

Racecar‐like hard suspension maintains the ST’s sporty appeal, though it does have the propensity to want to throw you into the nearest hedge. The engine is surprisingly flexible and offers plenty of low‐down torque and without any noticeable turbo lag. Cornering is kept under control thanks to Torque Vectoring Control and Torque Steer Compensation systems.

The Fiesta ST is astonishingly good, slightly marred by an overly skittish ride more suited to race than road, but is otherwise hard to fault. It’s also economical and with prices starting from €22,100, the Fiesta ST is something of a bargain.

Peugeot Rifter Part van, part MPV, part SUV, the Rifter is a multi-talented family-hauler, explains Alex Grant.

SECTOR Compact MPV PRICE €TBC FUEL 4.1-5.7l/100km CO2 109-131g/km

N

umerous manufacturers have claimed to break new ground with their latest models, boasting segment‐ busting solutions to real‐world problems. But Peu‐ geot has been clever with the Rifter, somehow packing an unnaturally long list of talents into a compact family car.

Partly because it bridges a gap. Young families tend to want the image and height of an SUV, despite actually need‐ ing the modularity of an MPV. The Rifter is perhaps biased towards the latter, but its raised suspension, body cladding and Tonka‐esque rugged styling from the Partner van add a little emotional appeal to go with it.

Besides, the Partner isn’t a bad place to start – it means this is platform‐shared with the 3008 SUV, and ironically it’s more car‐like to drive than it is SUV‐like to look at. Diesel versions are quiet, it rides well, has the tech and options list you’d want in a car and doesn’t roll like you might expect it to either. The biggest let‐downs are long gear throws (par‐ ticularly the five‐speed gearboxes), van‐like hard plastics inside, and inadequate front‐seat lumbar support – most noticeable on long journeys. Sadly, even the sporty GT‐Line versions don’t get upgraded seats.

For modularity, no SUV comes close. Headroom is pre‐ dictably generous, there’s space for three child seats in the back (rare in a five‐seater), sliding doors for tight spaces, and electric windows in the back – not portholes. Boot capacity is a third bigger than the 3008’s, with opening tail‐ gate glass and multiple levels for the parcel shelf, and all except the driver’s seat fold flat. Peugeot even offers a third row of seats – removable, if you also opt for the 35mm longer body.

Granted, this isn’t likely to single‐handedly turn around the terminal decline of MPVs in Europe. But it’s a rugged‐ looking and genuinely useful segment‐crosser, which deserves a second look.

internationalfleetworld.com / 39

Hyundai Nexo The Nexo SUV brings hydrogen fuel cells a step closer to mass market appeal, explains Alex Grant.

SECTOR Large SUV PRICE TBA FUEL 0.95kg/100km (Hydrogen) Range 666km (WLTP) CO2 0g/km

A

lthough the Kona Electric shows Hyundai is far from Tucson‐sized boot extended over flat‐folding rear seats. complacent when it comes to electric vehicles, it sees Retractable door handles aside (think Jaguar I‐Pace), it could battery power as a stepping stone; a component of be a version of the Santa Fe. replacing fossil fuels rather than the only solution. Its This is also true inside. Despite the ‘vegan leather’ and eco longer‐term goal is hydrogen fuel cells, bypassing some of fibre upholstery, it has few complications to adjust to. And the materials‐sourcing issues of building batteries, and while the over‐buttoned dashboard looks a bit like a offering a more familiar experience for end‐users.

Nineties hi‐fi system, most of the controls are logically It’s easy to see why; fuel cells make their own electricity, grouped and easier to find than some touchscreen‐operated offering hundreds of kilometres of range with short refu‐ setups. Menus can be navigated using a rotary dial, and it’s elling stops and only water coming out of the tailpipe. The Android Auto and Apple CarPlay compatible too.

Nexo is another step towards making it mainstream, with It’s ordinariness that covers what is quite an extraordi‐ cost‐parity with diesel expected as soon nary process underneath. The Nexo feels as 2025. like a large electric SUV, with barely any These are not new ambitions. Hyundai wind or road noise and the usual gear‐ launched its first series‐produced ix35 less, silent acceleration you’d expect from Fuel Cell in 2014, and claims to have a a motor. But what’s happening is very 70% share of Europe’s FCEV market – different. Fuel cell vehicles essentially most of those will be on fleets, too. perform a reversal of electrolysis; Volumes were small, but it’s an important combining oxygen from the air with car. Pioneering FCEV drivers have gener‐ compressed hydrogen from the car, to ated real‐world experience that’s under‐ produce electricity and water. The upshot pinning development, and created is, it’s filtering 99.9% of fine dust out of demand for fuelling stations too. the air as it drives, at twice the rate diesel But the Nexo was developed from a cars produce it, Hyundai says. blank sheet. It’s on a bespoke platform The challenge, of course, is this is still a and uses a smaller, lighter fuel cell stack market at the ‘early adopter’ phase. Fuel The Hyundai Nexo is with more space‐efficient packaging of cell vehicles rely on dedicated refuelling an important, if not the tanks. Significantly, it’s also available infrastructure that’s still sparse in mainstream, newcomer. in right‐hand drive.

Europe, and there are questions around This also means taking a step up in making hydrogen greener to produce – In part because it makes size, now similar overall to an Audi Q5. though this is happening. But the Nexo an extraordinary process Not just to cash in on unending demand opens fuel cells up to an even broader set feel so totally ordinary for SUVs, but because there’s a packaging of end‐users than the ix35, and it’s an on the road. advantage for doing so. It seats five, important next step towards hydrogen unlike the Toyota Mirai, offering a becoming a part of the fuel mix.

what we think

40 / internationalfleetworld.com

Kia Sportage There are some notable new diesel options behind Kia’s refreshed best-seller, explains Alex Grant.

SECTOR Medium SUV PRICE €22,500-€45,000 FUEL 4.8-7.9l/100km CO2 126-180g/km

T

he fourth‐generation Sportage must have seemed like limited fleet appeal in Europe. However, the diesel line‐up the proverbial ‘difficult second album’ for Kia. A bold is all‐new, now featuring AdBlue injection to reduce NOx new look for a nameplate which almost single‐handedly output. So the 1.7‐litre and 2.0‐litre units, favoured by fleets transformed the brand’s image, from one of cheap city cars and before, have been replaced with a new 1.6‐litre unit, produc‐ caravan‐movers, to a manufacturer of stylish, desirable SUVs. ing 115hp on the entry‐level trim, or 136hp for the rest of Thankfully, it’s shaped up to be a ‘Nevermind’ moment, the range. The more powerful of the two can be optioned vastly outperforming its predecessor. One in four Kias sold with a twin‐clutch automatic and four‐wheel drive. across Europe last year was a Sportage – some 131,000 units This change means most business‐bought Sportages will get – and in the UK it’s now 40% of the brand’s volume. Demand a desirable power uplift versus the lacklustre 1.7‐litre engine isn’t slowing, with the smaller Stonic and Niro SUVs attract‐ offered before. WLTP‐derived ‘NEDC Correlated’ economy ing conquests from other brands, and the broader new Ceed figures hide any real‐world improvements, but the most effi‐ family out to follow suit. cient Sportage (a 1.6 CRDi 136hp manual) So mid‐life updates amount to a double‐ comes in at 4.8l/100km and 126g/km, and disc special edition, in that the packaging around €28,000 for a fleet trim. Unfortu‐ is pretty much unchanged; new wheels, nately, it wasn’t available to test. minor alterations to the grille and a Instead, we tried Kia’s new 48‐volt ‘mild chrome strip across the bumper that look hybrid’ system, which is debuting here. a bit like a dental brace. Trim levels vary This uses a motor‐generator to assist the by market, but usually include four grades engine while it’s under load, and charges and a GT‐Line version, with big wheels, a compact 0.44kWh battery under the sports styling and Porsche‐like four‐pod boot floor when it isn’t. The aim is to LED headlights. reduce the load on the combustion engine Standard equipment is generous across and enable it to switch off earlier while the range. All include reversing cameras decelerating, powering on‐board systems and rear parking sensors, cruise control, with the battery. It’s unintrusive and offers and Android Auto and Apple CarPlay a claimed 4% economy boost, but the 1.6‐ Useful updates for a connectivity for mapping and messaging. litre diesel won’t get this system until popular car, albeit not Built‐in TomTom navigation comes in at 2020. For now, it’s only offered on the enough to be classgrade two, which is typically popular with 185hp 2.0‐litre diesel, with a twin‐clutch fleets, while top‐spec versions are well transmission and four‐wheel drive, which leading. Not that this appointed enough to rival premium SUVs. won’t make it a common choice. has ever been a Petrol engines are carried over, albeit Changes might be limited, but they problem for the now with particulate filters. Without the reflect a mature product. What’s here is outgoing Sportage.

Ceed’s 1.0‐litre three‐cylinder, their base‐ enough to refresh the appeal of what’s line 159g/km CO2 emissions still offer already been a chart‐topping car for Kia.

what we think

internationalfleetworld.com / 41

Mazda6 In a tough sector, the 6 offers something a little different to the norm, says Alex Grant.

SECTOR Upper Medium PRICE €27,000-€47,000 FUEL 4.4-6.8l/100km CO2 117-156g/km

L

aunched as part of an all‐new range in 2013, the Mazda6 perhaps arrived too late in Europe to get the recognition it deserves. Mazda’s former best‐selling nameplate faces the same challenges as its rivals; fending off SUVs (including its CX‐5 stablemate) and premium brands. Surviving means doing things differently.

Those challenges don’t get any easier. Diesel engines, the default choice in this sector for many years, aren’t quite the easy win they were five years ago ‐ even among the fleets that make up most of Mazda’s European volume for the 6.

So, behind a new nose that’s similar to the latest CX‐5, it’s adjusting to an ever‐tougher, ever‐changing market.

However, it still isn’t following the crowd. Mazda believes in ‘rightsized’ engines, so the 2.2‐litre diesel lives on in 150hp and 185hp guises, both now featuring AdBlue injection, and available with an automatic transmission, though this sig‐ nificantly hikes up CO2 emissions. The petrols are unusually not turbocharged, comprising 145hp and 165hp 2.0‐litre units, and the 192bhp 2.5‐litre for the first time in Europe.

Mazda certainly sees a future for diesel, but tax advan‐ tages and public perception aren’t what they were.

The petrols are certainly appealing alternatives, offering progressive power delivery and close to official fuel

consumption figures on a mixed route – particularly impres‐ sive for the 2.5‐litre engine, which runs on two of its four cylinders when it’s not working hard. However, that’s only available on top trim levels.

Otherwise, cabin quality has improved markedly, refine‐ ment is impressive and, while fine‐tuning to the chassis is harder to detect, this remains the benchmark driver’s car in its class. Adaptive cruise control is now standard range‐ wide, and Android Auto and Apple CarPlay are attractive options for business users. All are great reasons not to fol‐ low the migration away from this segment.

Seat Arona 1.6 TDI Seat’s Arona could just be what the market wants and needs, finds Jonathan Musk.

SECTOR Small SUV PRICE €19,160-€24,320 FUEL 4.3-4.4l/100km CO2 114-118g/km

H

aving the right cars available at the right price and time, of course, is key to Seat’s success and the Arona sits pretty as the affordable, capable and cost‐effec‐ tive small SUV ticking price, versatility and fashion boxes in one fell swoop. It’s everything the market is asking for and, thanks to its popular small capacity petrol turbo engine or a relatively old but proven diesel, it’s what the market needs too.

Our test car was equipped with the 95hp 1.6‐litre diesel four pot that, under NEDC correlated figures, emits between 114‐118g/km CO2 depending on trim – comparable to the

42 / internationalfleetworld.com

petrol 1.0‐litre turbo. Literally kilometres ahead of the petrol, however, is its official average combined fuel economy of 4.3l/100km. Consequently, Seat has rightly recognised fleets will be attracted to this winning combination, and all the Arona trims are all available with diesel power.

Inside, you’ll find more space than the Ibiza, while spec, trim and fit/finish remain the same high standard. Essen‐ tially, it’s a raised Ibiza but more than just a styling exercise, the car gains improved cabin access with larger doors and a larger boot aperture too. And it’s well‐equipped as standard, coming with a more intuitive and attractive touchscreen interface than its Volkswagen siblings, while incorporating sat nav, Android Auto and Apple CarPlay.

The Arona is lively and surprisingly energetic on the road.

Expectedly it has firmer suspension than its Ibiza base to compensate for the taller ride height, but not at the expense of long range comfort. There’s a hint of under‐power while revs are low, but it’s a surprisingly versatile, relaxing and easy to drive machine thanks to well‐chosen gear ratios in the five‐speed manual transmission.

The Arona is therefore a compelling option, even when considered amongst strong competition from the Renault Captur, Citroën C3 Aircross and Kia Stonic.

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www.kia.com

First impressions matter.

The new generation Kia Ceed.

Nice move.

If you’re looking for a company car that perfectly combines comfort with dynamic design and styling, then the new Kia Ceed will instantly delight. With its bold design features and sophisticated driver-assistance systems – including Lane Follow Assist, Smart Park Assist and a high-definition JBL Premium Sound System – you can be sure of a dynamic, comfortable ride that will satisfy all of your driving needs.

Max. 150,000 km vehicle warranty. Valid in all EU member states (plus Norway, Switzerland, Iceland and Gibraltar). Deviations according to the valid guarantee conditions, e.g. for paint and equipment, subject to local terms and conditions. Fuel consumption (l/100 km)/CO2 (g/km): urban from 4.2/110 to 8.0/182, extra-urban from 3.6/93 to 5.4/124, combined from 3.8/99 to 6.4/145. The specified consumption and emission values were determined according to the legally prescribed measurement procedures (EU) 2017/1153. The above values have been tested in the new WLTP, Worldwide Harmonized Light vehicle Test Procedure, test cycle and converted back to NEDC, New European Driving Cycle, in addition measured according to the RDE, Real Driving Emissions method. www.kia.com/eu