Fleet Europe °75 by Nexus Communication

NEXUS COMMUNICATION - FLEET EUROPE #75 - PERIODIC MAGAZINE - MARCH 2015 - DEPOSIT OFFICE LIÈGE X

MARCH 2015 - # 75

DOSSIER

Car Manufacturers’ Fleet Strategy 2015 Insight in product and service offer, trends and innovations.

SMART MOBILITY

New mobility schemes unravelled

Be proud of your achievements and become the 2015 International Fleet Manager of the Year SUBMIT YOUR APPLICATION NOW! MORE INFORMATION IN THIS MAGAZINE AND ON WWW.FLEETEUROPE.COM

THE NEW SEAT LEON X-PERIENCE WITH 4DRIVE DISCOVER NEW ROUTES FOR YOUR BUSINESS

TECHNOLOGY TO ENJOY SE AT.COM

By 2021, new cars in the EU should emit no more than 95g/CO2 per km. OEMs are hard at work to achieve that target. But are they really? That target is achievable only if OEMs aggressively continue to develop alternate powertrains. But, as shown by a KPMG study highlighted in this issue’s OEM Car Fleet dossier, their R&D has shifted towards increasing the energy efficiency of conventional engines. That trend was also confirmed at the Geneva Motor Show where alternative powertrain vehicles – compared to last year or the year before – were less put in the spotlight.

EDITORIAL

Two paths to the future

incremental innovation in EV and Fuel Cell technology, against the apparent reluctance of the OEMs to do so. Ongoing innovation is the only means to maintain technological progress – and to lower the price of the alternative powertrains that we’ll need in the (very near) future.

But there is another path to the future as well – focusing on new markets. Fleet owners and OEMs have high hopes this year for Southern Europe – and are remarkably unified in their interest in Turkey. Many fleet owners already have a presence there, but may not know as much about that key market as they would wish. Exactly that is what the Global Fleet Summit 2015 in Istanbul aims to remedy. Read our conference programme highlights below and go to summit.globalfleet.com to register your interest!

No way the alternative powertrain era is over before it even started.

So, is the alternative powertrain era over before it even began? No, it can’t be: tightening emissions norms dictate that future mobility will be less fossil-fuelled, and powered more by electric, hydrogen, hybrid and other alternative engines. This is where fleet owners must play a crucial role: they need to advocate continuous,

Steven Schoefs, Chief Editor, Fleet Europe sschoefs@nexuscommunication.be Twitter: @StevenSchoefs

Join the first ever Global Fleet Summit in Turkey 2 & 3 June I Park Bosphorus Hotel I ISTANBUL This regional fleet summit focuses on the challenges and opportunities of the Turkish fleet market with the support of TOKKDER, the Turkish Auto Leasing and Rental Companies Association. In addition, we will take you on a dedicated fleet country discovery tour, with fleet experts sharing their knowledge on Russia, Kazakhstan, Bulgaria, and Romania.

Programme highlights June 2 - Insight in Turkey as a car fleet market - 8AM - 5.30PM During this first day we will highlight Turkey as a vehicle fleet market and make comparisons with Europe.

> > > >

Session 1 : Understanding the Turkish fleet market Session 2 : How to integrate Turkey as a car fleet market in an international policy Session 3 : Identifying European trends influencing the Turkish car fleet market today and tomorrow Session 4 : Looking forward: From Total Cost of Ownership to Total Cost of Mobility

June 3 - Fleet Country Discovery Tour - 8AM - 2PM During this second day we will present the main fleet business characteristics of the following countries: Russia, Kazakhstan, Romania, Bulgaria. For each of the four above mentioned you will get information on: • Market characteristics in order to understand the market and its business specifics • Main players: OEMs, leasing and fleet management companies • Key elements impacting the vehicle fleet market • Challenges & opportunities More information can be found at summit.globalfleet.com or contact Aline Verpoorten, averpoorten@nexuscommunication.be

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Conservatism reigns with OEM Executives

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European fleet sales analysis and forecast . . . . . . . . . . . . . . . . . P.12 New car fleet models 2015

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Geneva Motor Show 2015: A choice in every segment . . . . . . . P.18 In 2015, fleet customer becomes king . . . . . . . . . . . . . . . . . . . . . . . . . P.23

DOSSIER I Car Manufacturers Fleet Strategy 2015

6-45

An insight in the strategy, the products & services, and the new developments of the main car manufacturers.

The fleet strategy of the main car manufacturers . . . . . . . P.28 The green fleet focus continues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.36 The difficult breakthrough of low cost brands . . . . . . . . . . . . P.40 Car manufacturers develop captive leasing . . . . . . . . . . . . . . . P.42 10 Applications for your fleet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.44

CONTENT

I DOSSIER I

I MANAGEMENT I Case study: Knauf, ‘Global Guidelines’ for local implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.46 Fuel Management: Keep your eye on the bigger picture

MANAGEMENT I Case study Knauf, ‘Global Guidelines’ for local implementation

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Become the new International Fleet Manager of the Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.50

I BUSINESS I Interview: Element-Arval Global Alliance

BUSINESS I ELEMENT-ARVAL Rolling up local best practices for global success

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The remarketing shift. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.55

I SMART MOBILITY I Europcar & Ubeeqo go for corporate car-sharing . . . . . . . P.56

SMART MOBILITY Mobility cards in a multi-mobility world

Greenwheels: Smashing walls with cars . . . . . . . . . . . . . . . . . . . . . P.59

Telematics & connectivity strategy of car manufacturers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.60 Car Policy 2.0: The use of mobility cards . . . . . . . . . . . . . . . . . . . . . P.62

SCOPE

Fleet Management Outlook 2015 in Turkey

I SCOPE I Operational Leasing on the rise in Turkey

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COLOPHON

Céline Gilson - Assistant cgilson@nexuscommunication.be

Caroline Thonnon - CEO & Business Development cthonnon@nexuscommunication.be

Aline Verpoorten - Assistant averpoorten@nexuscommunication.be

Steven Schoefs - Chief Editor - Fleet Europe sschoefs@nexuscommunication.be

Contributors: Jean-François Christiaens, Eamonn Fitzgerald, Jonathan Green, Tim Harrup, Frank Jacobs, Ally Millar

Tony Elliott - Expert

Special thanks to: Michaël Gergen (DataForce)

Robert Boscari - Expert

Cover: ©Shutterstock

Laetitia Fernandez - Content & Community Editor - Fleet Europe lfernandez@nexuscommunication.

Layout: Hungry Minds - info@hungryminds.com

Frédéric Van Vlodorp - Managing Editor fvandvlodorp@nexuscommunication.be

EDITOR

David Baudeweyns - International Sales & Business Development dbaudeweyns@nexuscommunication.be

Thierry Degives, CEO & Managing Partner at Nexus Communication SA, Parc Artisanal 11-13, 4671 Barchon (Belgium) T. : +32 4 387 87 94 - Fax : +32 4 387 90 63 - www.nexuscommunication.be

Romina De Gregorio - Internal Sales & Operations rdegregorio@nexuscommunication.be

www.fleeteurope.com - www.fleeteurope.com/shop

Sigrid Nauwelaerts - International Key Account Manager snauwelaerts@nexuscommunication.be

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FLEET EUROPE

Reproduction rights (texts, advertisements, pictures) reserved for all countries. Received documents will not be returned. By submitting them, the author implicitly authorizes their publication.

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DOSSIER

I Car Manufacturers’ Fleet Strategy 2015

Conservatism reigns with OEMs The world is changing fast, but automotive executives are bullish that today’s business models will reign well into the future. OEM strategy, regulation and mobility were just some of the topics put under the microscope in KPMG’s latest Global Automotive Executive Survey. In the short term it looks like the same old song will still be sung.

hen reading the news, listening to podcasts or flicking through social media, there’s always some discussion or another about the disruptive impacts of technology on the world around us. And talk of techs transformational impact on the automotive business is one of the hottest topics.

Despite this - and the rising number of new technology-based corporations engaged in the emerging culture of mobility - the established premium and mass market OEMs will continue to dominate over the next decade. That’s the view of the majority of the 200 automotive executives who responded to the KPMGs 2015 Global Automotive Executive Survey (GAES). Thirty-four percent of survey respondents believe the established premium market OEMs are extremely likely to dominate up to 2025, with a further 48 percent saying this scenario is somewhat likely. Only slightly fewer – 32 percent – report that mass market OEMs are extremely likely to prevail, with 52 percent confident that this group is somewhat likely to remain on top. Pressure points The executives say the automotive sector has its pressure points, but it’s well positioned to respond. On the one side, increasingly strict regulatory standards on fuel and environmental efficiency are demanding a strong focus on the optimisation of traditional powertrain technologies and investments into alternative drive trains. On the other side, tech-savvy consumers are creating a completely new mobility culture where consumers not only expect, but demand, new and innovative services. Upping efficiency, reducing emissions Downsizing the ICE is still seen as the way to go in the short to medium term. When looking at new powertrains, fuel cells have leapfrogged battery electrified systems to emerge as the number two investment priority.

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FLEET EUROPE # 75

With TCO targets on fuel efficiency - as well demands to green the corporate fleet - are you confident that the approach of OEMs can help you to deliver? By 2020 execs reckon less than one in 20 vehicles produced will be equipped with electric powertrains. By 2025 though there’s more optimism. Nearly half of North America respondents expect E-vehicles to be between 16 - 20% of car registrations. In Western Europe 43% think 11-15% of the market will be e-driven, whilst in China 68% think the same. Top powertrains investments in TRIAD nations (Cluster of countries US, Japan, EU) Investment Priority

% responding 32%

ICE downsizing 19%

Fuel cell electric vehicle

18%

Hybrid fuel systems Plug in hybrid fuel systems

15%

Battery electrified vehicles

15%

Top powertrain investments in BRIC nations Investment Priority

% responding 41%

Information ICE downsizing 23%

Fuel cell electric vehicle 12%

Hybrid fuel systems

17%

Plug in hybrid fuel systems Battery electrified vehicles

Moving on to Mobility Dieter Becker, KPMG’s Global Head of Automotive, says that whilst the traditional players are feeling the “warm breath” of new competitors in the tech and communication industry, they still have faith in their business model. Over half of auto executives think it is somewhat unlikely or not at all likely that a major disruption to existing business models will occur in the next 5 years, with just one in 10 expecting a major change. This conservative outlook extends to expectations of market dominance, with almost three out of four respondents predicting OEMs to continue owning the customer relationship until 2020.

< 50% “Over half executives think it is somewhat unlikely or not at all likely that a major disruption to existing business models will occur in the next 5 years, with just one in 10 expecting a major change. “ Executives say that TRIAD countries are setting the pace for on-demand mobility. 27% say mobility is already and important source of revenue and a further 34% saying it will be in five years time. This compares with 11% and 17% respectively in the BRICs. Despite this, executives don’t see mobility as a service as a key trend to 2025. Just 16% - down 2% on last year - flagged it as extremely important. Mobility is a buzz word in fleet management, but the thoughts of 200 automotive executives suggest the fleet industry is not going to get the backing it needs to make mobility happen. Top three key trends for auto executives Trend Market growth in emerging markets

% respondents rating key trend as extremely important 56%

Downsizing and optimisation of the ICE

49%

Increasing use of platforms and standardisation in modules

48%

Mobility as a service is not high on the agenda

Year 2015

% respondents rating mobility as a service as extremely important 18%

2014

16%

2013

16%

Product Issues So what do executives see as the key product issues for consumers when faced with purchasing new cars up to 2020? Fuel efficiency tops the list (67%), followed by enhanced vehicle lifespan (53%) and safety innovation (52%). Ergonomics and comfort comes in at 49% with environmental friendliness finishing the top five at 41%. Corporate fleets are already engaged in healthy debate about issues like fuel efficiency, vehicle lifespan (read residual value), safety and green, but ergonomics and comfort may raise one or two eyebrows. Perhaps driver comfort is something the corporate community could be thinking about a bit more. It may have an impact not just on day to day TCO, but also on residual values in the future. Importance of vehicle features to consumers up to 2020 % rating product issues as Lists the issue extremely important 67%

Fuel efficiency tops the list followed by enhanced vehicle lifespan

53%

Safety innovation

52%

Ergonomics and comfort Environmental frendliness

49% 41%

Prepared for the future KPMG says the automotive sector will need to achieve a fine balance between its traditional product level past and its lifestyle-centric and service-driven future. Is the fleet community going in the same direction? There’s certainly a big discussion going on about the best approach to the TCO model and what it could look like in the future. Globally, auto executives are most optimistic that Hyundai will increase its sales by greatest proportion. Volkswagen and Autovaz make up the top three OEM’s having greatest growth potential over the next five years.

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E: like economically. The automobile future runs on electricity. The Mercedes-Benz B-Class Electric Drive.

A Daimler Brand

Less emission is the most called term when people talk about the future of automobiles. The most called term when Mercedes-Benz is talking about the automobile future is: zero emission. The new B-Class Electric Drive. www.mercedes-benz.com/fleet

Provider: Daimler AG, MercedesstraĂ&#x;e 137, 70327 Stuttgart

• Jung von Matt • 13443/27/15010/02 • DTP: marion 1197

• 420 × 297 mm • 2/1-Seite, Klebebindunt • 4C, Bundzugabe 4 mm/Seite

• Kunde: Mercedes-Benz • Produkt: W264 Electric Drive • Objekt: Fleet Europe, linke Seite

NEW PEUGEOT GT Line SPORTY ALL ALONG THE LINE

New BlueHDi engines From 97 g of CO2/km - From 3.7 l/100 km*

*308 GT Line BlueHDI 150 HP

GT Line range - RCZ GT Line HDI & THP: from 130 to 155 g of CO2/km, from 5.0 l/km to 6.7 l/km. 508 GT Line BlueHDi & THP: from 101 to 135 g of CO2/km, from 3.9 to 5.8 l/km. 308 GT Line BlueHDi & PureTech: from 97 to 119 g of CO2/km, from 3.7 to 5.2 l/km.

NEW PEUGEOT GT Line

DOSSIER I Car Manufacturers’ Fleet Strategy 2015

Fuel efficiency is still at the top of the list and, when looking at new powertrains, KPMG’s study reveals that fuel cells have leapfrogged battery electrified systems to emerge as the number two investment priority. Super 7: OEMs expected to increase their global market share until 2020

OEM Hyundai / Kia VW Group

% of auto executives predicting increase in market share 78% 75%

Avtovaz

71%

BMW

69%

Chery

69%

Tata (inc JLR)

62%

Nissan

62%

Source: KPMG’s Competence Centre Automotive, LMC Automotive

2015 2016

“Light vehicle sales are predict to grow at a CAGR of 4.1% between 2011 - 2020”

2017 2018 2019 2020

With mobility, connection and changing consumer behaviours, the business of car sales and maintaining customer relationship is changing fast. Being ready to respond and adopt to market conditions will be the key to future success. So which of their fellow automakers do executives think are best placed to respond? Daimler, BMW and GM make up the top tier with Volkswagen, Toyota and Ford in the following pack. Perhaps it is these innovative thinkers that corporate fleet leaders should be talking too about the evolution of the B2B market.

Light vehicle sales preview 2015 - 2020 Date

Volkswagen’s predicted rise in sales will see it become the world’s top automaker in 2016 through to 2020, with Toyota dropping down to second and RenaultNissan Group maintaining the third place it took from GM last year.

Number of Light vehicles 90 million 95 million

So, you’ve read what the automotive executives think about the future, I bet you are wondering whether this matches what their corporate fleet representatives have to say too? Turn the page and you’ll find out whether they are telling the same story. ■

Steven Schoefs & Jonathan Green

100 million 104 million 107 million 111 million

Want to delve into the detail? Read the full report on www.kpmg.com

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DOSSIER I Car Manufacturers’ Fleet Strategy 2015

Consolidation on a very high level The fleet business has established further and has become ever more important for the manufacturers by representing almost 25 percent of all new passenger car registrations all over the EU-5 markets. But will fleet markets be able to grow again in 2015 or will the private sector regain volume and market share instead?

et’s start with a quick review on 2014 first. If the manufacturers and importers are evaluating last year’s results at least the group of managers who is responsible for the fleet business should be satisfied. The true fleet markets in the Big Five European markets - France, Germany, Italy, Spain and the UK - were performing very well in 2014. The growth rate for the full year was impressive with + 12.2 percent. The volumes in both the Private Market and the Special Channels (manufacturers, dealerships and Rent-A-Cars) achieved annual growth rates of only + 3.8 percent and + 3.0 percent respectively.

Obviously the fleet business has established further and has become even more important for the manufacturers by representing almost 25 percent of all new passenger car registrations all over the EU-5 markets (24.7 percent compared to 23.2 percent in the previous year). The main question is whether the Fleet Markets will be able to grow again in 2015 or if the Private sector will regain volume and market share instead. The EU-5 markets represent about 70 percent of the European market. Based on our forecast for EU-5 we expect the volume for the true fleet segment to be very stable in 2015. But taking into account a growing total market the result will be a slightly lower share for the true fleet business than in its record year 2014. However we are still on a very high level with about 24 percent of the total market. The private market will recover and should be able to get back on the level of 2013 with a share of approximately 49 percent in total. In Italy and Spain the registrations on true fleets will increase compared to last year. This holds true as well for the biggest fleet market in Europe, the United Kingdom, despite the really positive results in 2014, the best year since 2007 in terms of sales to company fleets.

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Germany was very successful for the fleet business too in 2014. This very high level of registrations most probably will be out of reach for this year. Similar to France we expect a decline of fleet sales of 2-3 percent in the next 12 months which is still moderate. Main trends in fleet Analysing the share of the most important vehicle segments in the EU-5 fleet markets shows that the most popular segment - the compact cars - will remain No. 1 despite an expected decrease of 0.5 percentage points. Vehicle segments in the EU-5 fleet markets in 2014

Compact car Offroad/SUV Middle-Class Small Mini-Van Mini Others -2.0% -1.5% -1.0% -0.5% 0.0%

0.5%

1.0%

1.5%

2.0%

The middle class will recover and outperform its result of 2014 increasing the share by more than 1.5 percentage points. However this performance won’t be strong enough to beat the SUVs, which will remain the second strongest vehicle segment and will keep growing. The Mini-Vans will play a less important role losing about 1.7 percentage points next year. Developing the main vehicle segments Concentrating on three big segments – Compact Cars, SUV and Middle Class – the analysis reveals that their development is triggered by various factors.

Segment share evolution in EU-5 markets Compact Car

The decline for the Compact models is mainly caused by Spain and the United Kingdom while the share in France, Germany and Italy is expected to remain very stable.

29.0% 27.0% ES

25.0%

UK DE FR

23.0% 21.0% 19.0%

17.0%

The success story for the SUV however is based on a cross-national trend. In all five markets their share will grow, particularly in France, Spain and Italy. In the last four months of 2014 SUVs were already the leading segment in the Italian Fleet Market, and the future is looking bright for the Offroaders with growing numbers for popular models like Nissan Qashqai or Mercedes GLA, and new entries like the Fiat 500X, Renault Kadjar and Land Rover Discovery Sport.

15.0% 2013

2014

2015

Segment share evolution in EU-5 markets SUV 24.0% ES UK IT

22.0% 20.0% 18.0%

16.0%

14.0% 12.0% 10.0% 2013

2014

2015

Segment share evolution in EU-5 markets Middle Class 24.0%

22.0% 20.0% 18.0% 16.0%

ES UK

14.0%

12.0%

The Middle Class very much depends on the German market where this segment is number one, while it only ranks 4th or 5th in the other four countries. The full availability of one of the most successful models for fleet customers overall; the new Passat, especially as a Station Wagon, will push the segment as well as the Mercedes C-Class and the Ford Mondeo. The 2015 fleet market winners The market leader Volkswagen will probably increase its market share, first of all with the Passat. BMW, Mercedes and Nissan will have a strong year too, with growing volumes for models like the 2-Series Active Tourer, C-Class/GLA and Pulsar/X-Trail. In addition there are some more brands and models with a promising outlook for 2015: Jaguar (back in the middle class with the all new XE), Jeep (Renegade), Porsche (Macan) and of course smart with the new ForTwo/ForFour accompanied by models like CitroĂŤn C4 Cactus, Opel Corsa and Renault Twingo. Outside of EU-5 The biggest markets beside the TOP 5 are Belgium and the Netherlands. In those two countries the fleet market plays a significant role with shares of around 37 percent (Belgium) and 39 percent (Netherlands), and this relevance will proceed similarly in 2015. This also applies to Eastern Europe (Baltics, Czech Republic, Poland, Slovakia). An increasing importance for the fleet market is likely to be expected in Scandinavia, where the share of this sales channel climbed from 28 percent in 2012 to almost 36 percent in 2014. â&#x2013; Michael Gergen

10.0% 2013

2014

2015

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DOSSIER I Car Manufacturers’ Fleet Strategy 2015

Your 2015 car fleet calendar 2015 looks promising, with a wide variety of novelties and facelifts – proof that car manufacturers remain dynamic and creative. Here’s an overview of the models to be launched this year. Two trends are worth mentioning: compact cars remain a safe bet for fleets, while the SUV segment is clearly gaining ground.

Alfa

Audi

BMW

Citroën

Dacia

Fiat

Ford

Honda Hyundai Infiniti Jaguar

Kia

Land Rover

Hyundai i20

January

Audi Q3

Fiat 500X

Kia Land Rover Sorento Discovery Sport

Ford Mondeo Honda Civic

February

Fiat Doblò

Audi A1

Kia Venga Citroën C4

March

April

Honda CR-V Kia Picanto

BMW Série 2

Hyundai i20

BMW Série 6

Hyundai i30

Alfa Giulietta

DS 5

May

Audi Q7

June

BMW Série 2 Grand Tourer

BMW Série 3

July

Hyundai i40

Infiniti Q30

Dacia Towny

Ford Mustang

Citroën Berlingo

Honda HR-V Hyundai ix20 Ford S-Max

Ford C-Max

August

Honda Jazz

September

Audi A4/A4 Avant

November

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Alfa Romeo Giulia

Jaguar XF

Hyundai Tucson

Citroën C3

BMW Série 7

FLEET EUROPE # 75

Hyundai Santa Fe

DS 4

BMW X1

October

December

Land Rover Evoque (Igenium)

Jaguar XE

Ford Edge

Kia Optima

Types of cars

Sedan

*Face lift

Station Wagon

Mazda Mercedes Mini

Compact car

Opel

Coupe

Peugeot Renault

Limousine

Seat

MPV

Leisure activity vehicle

Škoda Ssangyong Subaru Suzuki

Tesla

SUV

Toyota Volkswagen Volvo

Škoda Fabia Combi

Opel Corsa

Mercedes CLA Mazda 2 Shooting Brake

Subaru Outback

Toyota Avensis

Subaru Forester

Toyota Auris

Volvo XC90

Renault Espace

Suzuki Vitara

Tesla Model X

Volvo V60 Cross Country

Toyota Mirai

Peugeot 208 Mazda CX-3

Škoda Superb

Opel Karl Peugeot Partner

Mercedes GLE coupé

Renault Kadjar Seat Toleo

Ssangyong Tivoli

Toyota SUV compact

Seat Alhambra

Renault Laguna

Mercedes GLE

Škoda Super Combi

Volkswagen Tiguan

Mini Clubman

Peugeot 3008

Mercedes Classe E Opel Astra

Volkswagen Multivan

Renault Mégane

Škoda Grand

Volkswagen Taigun

Volvo S90/V90

Mercedes MLC

The information is based on different automotive sources. As such the article has been prepared for general guidance about the launch dates of new car models.

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DOSSIER I Car Manufacturers’ Fleet Strategy 2015

Geneva Motor Show: A choice in every segment The Geneva Motor Show was bristling with attractive models again. Besides the large number of sports models, including the Audi R8, the future stars of company fleets were out in force. The future looks bright for corporate fleet managers and the choice might be difficult. 1 - Opel KARL Opel has added the Karl to its catalogue, alongside its “well-connected” city car the Adam. The KARL is a deliberately more restrained city car, as reflected in its base price - dropping beneath the psychological barrier of 10,000 Euros. Good to know: Despite its smaller size, the KARL has five doors as standard. 2 - BMW 1 Series The BMW 1 Series is being upgraded. In addition to a revised look and a string of fine-tuned features, the “little” BMW offers new powertrains, including three-cylinder petrol and diesel engines. Good to know: With its new engine, the BMW 116d’s CO2 emissions are reduced to 89 g/km.

1 Opel KARL

7 DS 5 2 BMW 1 Series

3 - Peugeot 208 Just three years after its launch, the Peugeot 208 has already been upgraded. In addition to aesthetic changes, new features have been added, such as the urban autobraking system and reversing. Good to know: There are even low consumption models classified at 79 g of CO2 /km - a record. 4 - Mercedes-Maybach Pullman Even the long version of the new S-Class is too small? Don’t worry. Mercedes is unveiling its new flagship model - the Maybach Pullman. Extended to 6.50 m, the S-Class has been turned into a real VIP lounge on wheels. Good to know: The Mercedes Maybach Pullman has four face-to-face executive seats in the back. 5 - Renault Kadjar Encouraged by the success of its compact SUV, the Captur, Renault is giving it a big brother - the Kadjar. Like its Nissan-badged cousin, the Qashqai, whose technical platform it shares, the Kadjar will be available in both front and four wheel drive versions. Good to know: At 4.35 m in length, the Kadjar offers 472 L of boot space.

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9 Toyota Avensis 3 Peugeot 208

Mercedes-Maybach Pullman

Kia Sportspace

6 - Infiniti QX30 With its expansion phase in full swing in Europe, Infiniti is unveiling a new model sure to deliver sales - the QX30. This small Infiniti will be manufactured by the Renault-Nissan Alliance at its Sunderland factory in Great Britain. Good to know: This model will in turn be followed by a raised SUV-style version. 5 7 - DS 5 The DS 5 has been reborn. It now benefits from a new front aspect as well as modern LED lights. In terms of engines, it will offer a choice of five engines that conform to the Euro 6 regulation, covering a torque range of 240 to 400 Nm. Good to know: The hybrid diesel version remains the champion of CO2 emissions at 90 g/km.

Renault Kadjar

6 Infiniti QX30

8 Hyundai Tucson

8 - Hyundai Tucson The compact SUV has abandoned the ix35 label in favour of its previous name - the Tucson. Based on a new platform, and still developed in Europe for Europe, it is expected to help Hyundai build on its success in the compact SUV sector. Good to know: From its launch, the Tucson will be available with five engine types. 9 - Toyota Avensis Toyota is unveiling the new generation of its family tourer, the Avensis. It is a model proportioned for Europe. Without providing more details, Toyota has announced CO2 levels that will attract business customers. Good to know: This Avensis will be equipped with “innovative” comfort and safety features, according to Toyota. 10 - Škoda Superb The Superb, has successfully attracted over 700k customers since its launch in 2001. Based on the recent Volkswagen Passat, the third generation has been lengthened to offer better ride comfort and a record amount of boot space (625 L). Good to know: A Greenline version will reduce the model’s emissions to just 96 g of CO2 /km.

10 Škoda Superb

12 Volkswagen Caddy

11 - Kia Sportspace Kia is unveiling its future grand tourer, which is expected to be out at the end of the year. The new Optima will be available in an estate version for the first time, if the outline of the Sportspace design is to be believed. Good to know: The Sportspace design incorporates a ball at the back of its boot to make it easier to get heavy objects in. 12 - Volkswagen Caddy Volkswagen is presenting the fourth generation of the Caddy with extensive technical modifications, both in terms of the engines (more restrained) and the features (modern safety systems). Good to know: In addition to front assist, which can brake autonomously in the event of danger, the Caddy has an optional drowsiness detector.

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DOSSIER I Car Manufacturers’ Fleet Strategy 2015

Nissan Sway

Ford Edge

Volvo V60 CrossCountry

15 Honda Jazz 13 - Nissan Sway Unveiled at this year’s Geneva Motor Show, Sway does more than provide an insight into the style of future Nissan models. The concept car also prefigures the addition of a future five-door compact to the Japanese brand’s portfolio. With a length of 4.01 m, the Sway is of equal size as its cousin, the Renault Clio. Good to know: The upcoming production model, probably replacing the current Micra, is expected within two years. 14 - Ford Edge The growing popularity of SUVs in Europe has prompted Ford to market the Edge, its showpiece for that segment in America, on the Old Continent as well. The newest generation of that model to be launched in the U.S. will arrive in Europe by the end of this year. Good to know: The Ford Edge will be available with a dynamic noise reduction system, rendering the cockpit as quiet as technically possible. 15 - Honda Jazz The Jazz has been selling in Japan and the United States since 2013. It will now finally arrive in Europe as well. For its European release, the Jazz will only be offered in the 1.3-litre aspirated petrol version, with 102 hp mated to a five-speed manual transmission or a continuously variable transmission. Set on a longer wheelbase, this new generation of the Jazz is even spacier than before. Good to know: The Jazz will again come with foldable seats in the rear.

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17 SEAT 20V20 16 - Volvo V60 CrossCountry Positioned between Volvo’s estate car, the V60, and its SUV, the XC60, the brand now also offers the V60 in a Cross Country variation. This is an estate car with a slightly elevated base (by 6.5 cm), and a substantially reinforced body. Good to know: Depending on the motorisation, the V60 CC will have either a two-wheel or a four-wheel drive transmission. 17 - SEAT 20V20 Announcing SEAT’s entry into the SUV segment from 2016 onwards, the 20V20 concept car is shaped like a four-door coupé, coupled with the versatility of an estate car and the ride height of an SUV. With a length of 4.66 m, this vehicle also boasts a large, 600-litre trunk, dominating the road with its 20-inch wheels. Good to know: SEAT has let it be known that the 20V20 will be available in a plug-in hybrid version. ■

Jean-François Christiaens

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CO2 efficiency class: A+; from 99g/km Longer fixed service intervals for diesel engines: 34,000 km or 2 years 3 year manufacturer’s warranty with unlimited mileage 3 years unlimited mileage free servicing *

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DOSSIER I Car Manufacturers’ Fleet Strategy 2015

In 2015, fleet customer is king and a half In Europe more than elsewhere, vehicle fleet sales are crucial to the business strategies of car manufacturers. But the rest of the world is catching up. The importance of fleet sales is measured in more than volume alone: fleets are pioneers for technologies that will eventually reach the rest of the market. And this year, that technology could well be telematics, transforming itself from doubtful option to indispensable tool.

orporate vehicle sales are like the canary in the coal mine: to OEMs, their rise and fall is an early indicator of a wider recovery, or recession. At present, indications are that fleet sales are rising faster than automotive sales to the private market. This confirms the overall impression that the economic picture in Europe is brightening up. But the faster-than-average rise of fleet sales has another effect: it will increase the already considerable attention that manufacturers lavish on their corporate clients, who grow ever more important. Similar-sounding claims Indeed, OEMs are sparing no effort to highlight the fleet-specific assets of their product ranges and the supporting services they offer. Naturally, many of these claims will overlap. Each brand boasts about a range of car and/or LCV models that is uniquely suited for the fleet market, with its high expectations on TCO, emissions, safety, and especially service and support (multi-year warranties, service agreements, etc.) It’s the fleet client’s task to examine similar-sounding claims for vital differences. Škoda, for instance, is one of many brands keen to stress that its services dedicated to corporate clients can be deployed across its dealership network, but also in specialised fleet centres. Renault, on the other hand, relies on its Single Point of Contact principle (as well as its widely-spread network) as a unique selling point for its fleet-oriented sales.

is that their share in overall sales is already huge. On average, fleet sales represent between 30 and 40% of a manufacturer’s overall sales in Europe.

Biggest growth opportunity There are a number of reasons why fleet sales matter to OEMs. For one, because working through large corporate and public-sector fleets provides them with brand visibility. Or because it allows them to make the most of their high standards in sustainability, safety and vehicle qualities relevant to fleet customers. But the main one

Even a brand like Maserati, which has a very upmarket and fairly narrow model range, and which started with dedicated fleet sales only in 2013, plans to sell 20% of its Quattroporte Diesel and 30% of its Ghibli Diesel to the fleet sector in Europe. The outlier on the other side of the average range is Volvo, which shifts 51% of its sales volume in Europe directly to the fleet sector.

The hunt for corporate customers is on as OEMs realize the importance of fleet sales. In that environment, the fleet customer is king and a half.

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DOSSIER I Car Manufacturers’ Fleet Strategy 2015

According to the corporate car fleet managers of the car manufacturers Telematics will see its big breakthrough in the automotive industry, and the corporate fleet community will become its predominant playfield. Kia is a fairly typical example. Although already selling about 40% of its vehicles in Europe to fleets, the brand squarely states that the fleet market represents its single biggest growth opportunity in the European car market. Present and future clients of Kia and other OEMs would do well to remember this, and use their increased relevance to increase their leverage when presented with the opportunity to negotiate fleet terms with manufacturers.

for TCO, sustainability, safety, fuel efficiency and – last but not least – driving pleasure.

For the OEMs are stepping up their efforts – and investments in fleet products and dedicated sales teams – to increase fleet sales. Simply put: the hunt for corporate customers is on. In that buyer’s market, the fleet customer is king and a half.

Despite economic troubles of its own, China’s growing premium market continues to offer great potential for increased fleet sales, most OEMs think. And not just in the mid to long term: optimistic predictions hold that the Chinese car fleet market could increase by 7% this year to 1.15 million units. Of the BRIC countries, the positive situation has been reversed most dramatically in Russia – not just for the fleet market, but for automotive in general. However, there is still hope that the geopolitical situation might resolve itself in the medium term, and that the Russian economy will pick up when oil prices start rising again.

Accelerating globalisation The percentages mentioned above are figures for Europe – the share of fleet sales in other regions is generally significantly lower. But all OEMs report that fleet sales in the rest of the world are rapidly catching up – a process that is expected to accelerate in 2015. This trend is in line with the global and older trend in automotive sales generally. But there are a few specifics to the acceleration of global fleet sales, mainly to do with the corporate sector’s own trend towards globalisation. As multinationals seek to harmonise their global fleet operations, they are increasingly looking for partnerships with OEMs that can answer their concerns with global standards

A few years ago, most OEMs would have had roughly the same target markets in mind for fleet sales expansion: the BRIC countries. But emerging economies have not proved immune to economic slowdowns and geopolitical accidents.

Invigorated US economy Brazil is also seen as a strong candidate for future fleet business growth, if also on a somewhat longer term: as in other emerging markets, many OEMs still need to further develop their dealer networks and fleet channels. But even the invigorated US economy, hardly an emerging market, is seen as a source of potential fleet business growth.

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DOSSIER I Car Manufacturers’ Fleet Strategy 2015

But for the foreseeable future, the strongest markets for fleet sales (if not in growth, then in overall performance) will continue to be in the economically recovering markets of Western Europe. The United Kingdom, Germany, Austria and the Benelux countries are listed as interesting growth opportunities for fleet sales in 2015. Size-wise, Germany and the UK are obviously the most interesting of the bunch. The geographic field is complicated by the fact that many European OEMs of course have an advantage in their domestic markets – Fiat in Italy, Renault in Italy, BMW in Germany, etc. - increasing the hurdles for other OEMs to jump over.

Some of those variables will relate to CO2 legislation (e.g. the ever stricter EU emissions norms, but also growing awareness and tougher, carbon-based taxes elsewhere in the world), local stimuli for alternative motorisations (explaining Tesla’s fleet success in Norway, for example) or, as mentioned before, strong local competition from domestic OEMs. The most remarkable, and most generalised expectation for 2015, however, concerns telematics. Opel, for instance, states that while alternative fuels will continue to play a role, it is telematics that will become increasingly important and widespread in the fleets of the future.

It’s the fleet client’s task to examine similar-sounding claims for vital differences.

Not coincidentally, markets with well-established domestic manufacturers tend to be larger, and richer in potential – factors which help explain the success of those domestic OEMs. Which also explains why non-domestic OEMs are keen to challenge the dominant local brands, from an underdog position: offering an alternative to the established product range, and a high level of service.

Future variables Geographic market divergence is but one of the many variables determining the future of OEM strategies visà-vis fleet sales. Which of those variables will predominate in the future, is very hard to predict, leading some OEMs to bank on starkly different mixes of products, services and infrastructure in anticipation of the market needs of tomorrow.

Not so long ago, the very thought of tracking vehicles and measuring driver behaviour via on-board technology was summarily dismissed as being too complex, too fraught with concerns over privacy and data protection. But a combination of two factors now seems poised to provide telematics with its big breakthrough in the automotive industry: the steady advancement of the technologies involved; and the fact that OEMs seem poised this year to introduce those trackable technologies onto the market via the incubator of many previous innovations: the fleet sector – not only more receptive of change and more on the lookout for cost reduction, but also characterised by a more ‘captive’ type of driver than the private sector. ■

Frank Jacobs

International fleet agreements on the rise International fleet agreements are an excellent way for OEMs and their large multinational clients to create a framework for operating a regional or even global fleet with a unified set of standards, while retaining the flexibility required by the peculiarities of each market. No wonder then that most OEMs offer IFAs, and that expanding their number is a key focus for many. Even so, their number already is on a steep upward incline. Mercedes-Benz Cars has 280 at IFAs at present, up from 50 just five years ago. Fiat, to name another example, currently boasts around 60 IFAs, both offering them to new customers and refining and improving them for existing customers.

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! H O T S U J IT’S

S A T R A M S S A

E. N O H MY P

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Available as an option at extra cost. Fuel consumption combined 6.0–3.1 l/100 km; CO2 emissions combined 140–82 g/km (according to R (EC) No. 715/2007).

DOSSIER I Car Manufacturers’ Fleet Strategy 2015

Confidence all round The storm has passed, the sun is shining again. All main car manufacturers are confident the fleet market will continue to grow in 2015, both in Europe and (even more) in the rest of the world. Differentation is achieved not only by product offer, but also via dedicated services, fleet organisation and the OEM view on innovation.

BMW Group 2014

Total sales

70 %

Retail sales

30 % Fleet sales

Current Top Fleet Model - BMW 5 Series

Fiat Chrysler Automobiles 2014

Total sales

±67 %

Retail sales

±33 % Fleet sales

Current Top Fleet Model - Fiat 500 family

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Fleet contact : Dirk Eichstaedt Head of International Key Account Management dirk.eichstaedt@bmw.de

2015 FOCUS ELEMENTS • CO2 reduction: building on the success of its EfficientDynamics in meeting future CO2 targets, BMW will introduce new engine and drivetrain technologies. • New model: the BMW 2 Series Gran Tourer, to be introduced this year, accesses a new market segment, targeting new customers. • Mobility services: the range of services offered by ConnectedDrive will continue to increase.

Fleet contact : Nicola Pumilia Corporate Sales Director EMEA nicola.pumilia@fcagroup.com

2015 FOCUS ELEMENTS • Organisational structure: next to IKAMs to deal with corporate customers on an international level, Fiat Chrysler Automobiles has Key Account Managers in 20 European countries. • Widespread coverage: the Fiat Chrysler Automobiles service network has around 7,500 points of sales and 12,600 specialised workshops and after-sales points in the EMEA region. • LCV leadership: Fiat Chrysler Automobiles is the only OEM with a brand dedicated exclusively to light commercial vehicles.

FLEET ASSETS BMW prides itself on being the #1 choice for premium individual mobility for corporate customers worldwide. MODEL LAUNCHES 1 Series, BMW 2 Series Gran Tourer. FLEET MARKET PREDICTION In Europe, fleet sales will be stable or even increase slightly, as the company car remains an important instrument for compensation and benefit. Outside Europe, fleet sales will increase in line with the growing number of corporates focusing on a global approach.

Focus Markets Inside Europe

• One-stop shop: The group’s global dimension enables them to support their customers across the world. FLEET ASSETS Fiat Chrysler Automobiles aims to be a one stop shop for global corporate clients via its global products, direct customer relationships, and extensive service network. MODEL LAUNCHES Fiat 500X, Fiat Professional Doblò, Jeep Renegade FLEET MARKET PREDICTION Overall car fleet sales will increase slightly this year, while FCA’s fleet sales will be buoyed by important launches, like the Fiat 500X and Fiat Professional Doblò.

Focus Markets Inside Europe

Fleet contact : Barrie Crawshaw

Ford

Fleet & Rental Manager bcrawsha@ford.com

Current Top Fleet Model - Ford Focus

2015 FOCUS ELEMENTS • New products: throughout the year,

Fleet contact : Tae Yong Lee

Hyundai 2014

European Corporate Sales Manager tylee@hyundai-europe.com

Total sales

70.3%

Retail sales

29.3% Fleet sales

Current Top Fleet Model - Hyundai ix35

75%

2015 FOCUS ELEMENTS • SMEs: the rollout this year of an enhanced Pan-European Fleet Business Centre will add greater focus on the SME segment. • Corporate Sales: internal structure changes will enable Hyundai to focus better on corporate sales, both at HQ and local level. • LCV infrastructure: the launch of an LCV model – a new segment for Hyundai - will be supported by the appropriate service infrastructure.

Fleet contact : Franco Marianeschi

Maserati 2014

Ford will launch new products that will boast an improved TCO, better fuel efficiency and lower CO 2 emissions. • Better safety: an important focus for the new models is improved passenger safety, via advanced driver assistance technology. • More sales personnel: Ford is expanding its fleet sales teams across Europe, to keep customers up to date with the brand’s improved fleet products and services.

European Corporate Sales Manager franco.marianeschi@maserati.com

Total sales Retail sales

25% Fleet sales

Current Top Fleet Model - Maserati Ghibli

2015 FOCUS ELEMENTS • Growth: Maserati want to continue growing across all European markets. • Communication: business must be made aware of the brand’s competitive pricing for the fleet sector, as well as its excellent emissions record. • Warranty: the unlimited three-year warranty.

FLEET ASSETS Ford aims to satisfy global fleet requirements by combining its global fleet sales team with its various local representations, and its extensive dealer network. MODEL LAUNCHES Mondeo, Focus, C-Max, Vignale Mondeo, S-Max, Galaxy, Edge, and Mustang. FLEET MARKET PREDICTION Referring to successful model launches in both the recent past and future, Ford foresees ‘significant growth’ for its own fleet sales in Europe.

Focus Markets Inside Europe

FLEET ASSETS Hyundai offers European framework agreements, 5-year unlimited mileage warranty, intelligent design and technologies, excellent service and support across 2,000 dealerships and 425 business centres, and a comprehensive model line-up. MODEL LAUNCHES Tucson (all new), i30 (facelift), i40 (facelift). FLEET MARKET PREDICTION Building on its 2014 results, Hyundai foresees strong growth for its own brand, especially in Europe, and particularly in the corporate and true fleet segments.

Focus Markets Inside Europe

Outside Europe

FLEET ASSETS Maserati claims its range of vehicles is ‘the opposite of ordinary’, its sales staff is extremely flexible towards customer needs, and its service level is the best possible. MODEL LAUNCHES Maserati Levante FLEET MARKET PREDICTION Fleet sales will remain stable this year, both for Maserati and for the market in general.

Focus Markets Inside Europe

Outside Europe

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DOSSIER I Car Manufacturers’ Fleet Strategy 2015

Jaguar Land Rover 2014

Fleet contact : Emil Gaynor Global Sales Manager egaynor@jaguarlandrover.com

2015

Current Top Fleet Model - Land Rover Evoque

Total sales

JAGUAR

56% Retail sales

44% Fleet sales

Total sales

LAND ROVER

FOCUS ELEMENTS • Marketing and communications: additional global resources will be allocated to ensure the Jaguar Land Rover brands remain relevant to the business community. • Fleet leasing rates: lower TCO of new models will be translated into reduced fleet leasing rates. • Fleet Business Centres: key elements of Jaguar Land Rover’s growing coverage across all markets. FLEET ASSETS Jaguar Land Rover wants to use its portfolio of characterful and desirable

59% Retail sales

41% Fleet sales

vehicles to appeal to fleet decision makers who want to enhance the attractiveness of their companies via their corporate mobility. The manufacturer’s focus on TCO and CO2 should enhance that appeal. MODEL LAUNCHES Jaguar XE, Land Rover Discovery Sport. FLEET MARKET PREDICTION Stability for the European car fleet market in general, but strong growth for Jaguar Land Rover itself, thanks to the launch of its two new models.

Outside Europe

Inside Europe Focus Markets

Source: Dataforce

Kia Motors 2014

Total sales

95 % Fleet sales

Retail sales

5 %

Current Top Fleet Model - Kia Sportage

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Fleet contact : Mark Howlett Fleet Sales Manager mhowlett@kia-europe.com

2015 FOCUS ELEMENTS • Infrastructure development: Kia is building its Fleet Sales and Service infrastructure to support a growing number of potential fleet customers. • Fleet Customer Sales & Service Programmes: a significant number of Kia dealers now have Fleet Business Centre status, and they are the focus of ongoing efforts to enhance Kia’s fleet capabilities. • K ia Lease: a captive operating lease product aimed at SMEs, now on offer in most of Western Europe.

FLEET ASSETS A broad product line-up, coverage in all major markets in Europe (32 national Key Account Managers), and a European Fleet Sales function. MODEL LAUNCHES Optima (all new). FLEET MARKET PREDICTION Overall fleet sales in Europe will increase, in line with 2014. Kia’s good performance both in the recovering markets of Southern Europe as well as the more established ones in Northern Europe, is promising. Outside Europe, Kia’s growth, both quantitative and qualitative, continues apace.

Focus Markets Inside Europe

Outside Europe

DOSSIER I Car Manufacturers’ Fleet Strategy 2015

Daimler AG / Mercedes-Benz 2014

Current Top Fleet Model - Mercedes C-Class

2015 FOCUS ELEMENTS • Customer-specific:

offering

tailored

Nissan

Current Top Fleet Model - Nissan Qashqai

2015 FOCUS ELEMENTS • Products: half the Nissan line-up was

Opel/Vauxhall

Fleet contact : Volker Schneider International Corporate Sales Manager volker.schneider@daimler.com

solutions unique to any given customer’s requirements. • Customer dedication: Mercedes-Benz’s products and services are aimed at the fleet customer’s regional and broader needs. • Customer Relationships: the manufacturer wants to build on existing customer relationships, and develop new ones. FLEET ASSETS Mercedes-Benz Cars claims to offer the widest vehicle range on the market which meet fleet-specific requirements for TCO, CO2, comfort and safety, etc., and proposes

Fleet contact : Nicolas Pelpel International Fleet Manager npelpel@nissan-europe.com

renewed in the past 12 months, reaffirming the brand’s Crossover and EV ambitions. • S ervices: from 400 specialised dealers to operating lease solutions, Nissan keeps expanding its fleet solutions. • Fleet technology: Safety Shield and Telematics are among the solutions Nissan offers to reduce driver TCO – an important issue for fleet managers. FLEET ASSETS With consistent products and services and a global footprint, Nissan offers

Fleet contact : Ciprian Suta Pan-European Corporate Sales and Leasing Director ciprian.suta@opel.com

2015 FOCUS ELEMENTS • Models: this year, Opel will continue DRIVE 2022, its major offensive to launch 27 new models and 17 new

Current Top Fleet Model - Opel Insignia

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engines by 2017. • Brand: the objective is to strengthen Opel’s image as an emotional, approachable and German brand, by focusing on technical innovations (such as OnStar,

its International Corporate Sales Team as a one-stop shop for multinationals with market-specific fleet programmes. MODEL LAUNCHES CLA Shooting Brake. FLEET MARKET PREDICTION Europe will continue to recover, and global perspectives are good as well, with growth in the total car market expected at 4% (and even 7-9% in the premium segment). Fleet sales will grow at that pace in Europe, and outperform the market in the rest of the world.

Focus Markets Inside Europe

Outside Europe

international fleet clients a dedicated Nissan International service based in their country of origin, coordinating global activities. MODEL LAUNCHES The other half of Nissan’s lineup will be renewed, with a focus on powertrains and the shift to EURO6. FLEET MARKET PREDICTION Economic recovery in mature fleet markets, together with continued growth elsewhere will lead to a growth in the global fleet market of 1 to 2%.

Focus Markets Inside Europe

Outside Europe

your personal online assistant, incl. WiFi hotspot, available later this year), engineering skills and value for money. MODEL LAUNCHES Corsa, KARL/Viva, Adam S, Astra FLEET MARKET PREDICTION Together with sister brand Vauxhall, Opel plans to capture 8% of the European passenger car market by 2022, thus becoming #2 on the market.

Focus Markets Inside Europe

TECHNOLOGY: THE DRIVING FORCE BEHIND YOUR BUSINESS CITROËN C4 NEW RANGE • NEW BLUEHDi DIESEL AND PURETECH PETROL ENGINES THAT CONFORM TO THE EURO6 STANDARD • LOW CONSUMPTION*: STARTING FROM 86G CO2/KM AND 3.3L/100KM • NEW EAT6 AUTOMATIC GEARBOX

DOSSIER I Car Manufacturers’ Fleet Strategy 2015

PSA Peugeot Citroën 2014

Total sales

70 %

Retail sales

30 % Fleet sales

Current Top Fleet Model - Peugeot 308

Renault Group Total sales

2014

65,9 %

Retail sales

34,1 % Fleet sales

Current Top Fleet Model - Renault Clio

Tesla Motors

Fleet contact : Cédric Douls Head of International Key Accounts cedric.douls@mpsa.com

2015 FOCUS ELEMENTS • Single Point of Contact: fleet customers appreciate the group’s B2B International Department, representing all brands of the group. • Service: the aim is for a higher level of service in the dealer network, thanks in part to almost 2,000 Business Centres. • Regionalisation: The group’s new organisation in 6 regions will ‘localise’ its global standards. FLEET ASSETS The PSA Peugeot Citroën Group prides

Fleet contact : Jean-Pierre Mesic VP, Renault Corporate Sales Division jean-pierre.mesic@renault.com

2015 FOCUS ELEMENTS • LCV market: Renault is keen to maintain its European market leadership. • New models: the manufacturer will launch a new car every quarter in 2015. • Fleet engineering: the brand is reengineering its fleet tools, methods and processes for its 45 markets (in 5 regions). FLEET ASSETS Single Point of Contact principle, highly

Fleet contact : Davide Ghione European Fleet Sales Manager dghione@teslamotors.com

2015

Current Top Fleet Model - Tesla Model S

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FOCUS ELEMENTS • Competitiveness: Tesla aims to offer its best possible vehicle at competitive rates – the only way to speed up the transition to sustainable mobility, it says. • TCO: this year, the EV manufacturer wants to focus on total cost of ownership as a selling point for electric mobility.

itself on its Single Point of Contact global concept, supplemented by strong national teams dedicated to international fleet customers. MODEL LAUNCHES Six novelties (2 for each of the 3 brands), including the Citroën C4 new range and the new Berlingo, the new Peugeot 208 and the new Partner, as well as the new DS 5. FLEET MARKET PREDICTION The group foresees the fleet sales of its three brands (Peugeot, Citroën and DS) will outperform those of the market in general, both inside and outside of Europe.

Focus Markets Inside Europe

Outside Europe

competitive vehicle range, broad range of services (from finance to warranty extension), tailor-made offers (LCVs etc.), network proximity. MODEL LAUNCHES Espace, Kadjar, D-segment sedan. FLEET MARKET PREDICTION The European car market will grow by 1-2%, while the global market will add 2%. Growth for the fleet market will be moderate in Europe, strong elsewhere (except in Russia and Argentina).

Focus Markets Inside Europe

Outside Europe

• Team growth: Tesla wants to grow its regional sales team in Europe. FLEET ASSETS Using Tesla’s Model S as a company car is an innovative way to reduce the financial cost and the environmental impact of a corporate fleet. MODEL LAUNCHES Model S (Dual Motor All Wheel Drive Option). FLEET MARKET PREDICTION Major growth in 2014 across Europe, both in sales and in the Supercharger network of charging stations, predicts further growth, Tesla claims.

Volkswagen Group

Fleet contact : Axel Czora Head of International Key Account management axel.czora@volkswagen.de

2015

Current Top Fleet Model - Volkswagen Golf

Volvo Car Corporation 2014

FOCUS ELEMENTS • Customer: the client is king for Volkswagen Group, which will look for best practices across all its markets in order to improve its delivery. • Processes: Volkswagen Group will review its internal processes and IT systems to adapt to changing market circumstances. • Feedback: Volkswagen Group will evaluate and implement its customer feedback even more systematically.

Fleet contact : Axel Zurhausen Global Sales Manager axel.zurhausen@volvocars.com

2015 Total sales

45%

Retail sales

55% Fleet sales

FOCUS ELEMENTS • The ‘Volvo Way’: the Swedish manufacturer prides itself on its different approach to communicating between its central fleet team and the local markets. • SMEs: the brand is looking to increase its small fleet business, while also keeping focus on international and local key accounts. • Customer focus: Volvo wants to maximise

Inside Europe

FLEET ASSETS A worldwide network and a balanced product portfolio, with a youthful, innovative and eco-friendly range of models. MODEL LAUNCHES VW Passat GTE, VW Touran, VW Caddy, VW Transporter, Audi A4, Škoda Superb. FLEET MARKET PREDICTION Its many product launches give the Group cause to be confident about sales in general (and fleet sales in particular, but with an eye on geopolitical events, it is ready for any action that would help their international clients overcome crises.

Focus Markets Inside Europe

Outside Europe

existing services and offers for its customers. FLEET ASSETS Volvo boasts a refreshed product line, with CO2 emissions dramatically down and an enticing TCO. Its Global Fleet Organisation at HQ has been reinforced, and its safety and innovation record is excellent. MODEL LAUNCHES S60 Cross Country, V60 Cross Country. FLEET MARKET PREDICTION Volvo expects further growth for its fleet business, on the back of successes of 2014, both inside and outside of Europe (particularly in China).

Outside Europe

Focus Markets Current Top Fleet Model - Volvo V40

This overview is based on the answers from the car manufacturers on the 2015 Fleet Europe Car Fleet Strategy Questionnaire. ■ Frank Jacobs

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DOSSIER I Car Manufacturers’ Fleet Strategy 2015

Fifty shades of green Working towards the ‘greening’ of fleets, OEMs all have the same Holy Grail in mind: zero-emission vehicles. But that’s as far as the unanimity goes. The variety of strategies is actually good news for corporate customers: more opportunity to choose the right solution(s) for their fleets.

ore green car models, more green mobility options: with every season, the choice of eco-friendly tools at the disposal of fleet managers increases, and with it the danger that they will be overwhelmed by those fifty shades of green. The OEMs are intensifying their eco-offensive. To name just one example: Mercedes-Benz Cars is introducing no less than 10 plug-in hybrids between now and 2017. It therefore bears repeating that – from a manufacturer’s perspective – there are two simple sets of forces at work to create that bewildering variety.

as imposed by the European Union; and the gradual, country per country shift towards a carbon-based tax system, which penalises petrol and diesel cars (while often also fiscally rewarding post-carbon mobility models). And secondly, the pull factors, luring the industry towards a future without fossil fuels. These include technological progress, which makes it easier (and cheaper) to implement pureelectric, hybrid-electric, and other alternatives; and a corresponding increase in demands from the market to deliver more sustainability in general, in particular: better TCO and less CO2.

It is up to fleet managers to look beyond green image, matching their fleet’s requirements to the strengths of each manufacturer, and of their products. Push and pull Firstly, the push factors. These are the factors forcing OEMs away from the traditional, fossil-fuel-based mobility model. They include rising fuel prices (currently on hold, but expected to resume); industry-defining CO2 emissions norms, for example

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Both sets of forces are particularly relevant for fleet clients. Due to the economies of scale within large corporations, they are more actively engaged in seeking out cost savings than individual, private-sector motorists. And since the automotive industry has reached the inflection

Since the automotive industry has reached the inflection point at which greener actually does mean cheaper, the fleet sector is the laboratory for mobility’s green future.

point at which greener actually does mean cheaper, the fleet sector more than ever is becoming the laboratory for mobility’s green future. No single paradigm Yet, tantalisingly, there is no single vision of what the future of sustainable mobility will look like – perhaps because there is no single paradigm that will replace the current fossil-fuel-based model. So OEMs are banking on divergent technologies. Some by exclusively pursuing one favourite future for sustainable mobility at the expense of all others. But most hedge their bets and invest in multiple technologies. Tesla, of course, is the best example of a one-solution brand.

Ten lessons for green fleet customers 1. Governments continuously push OEMs to offer greener products. 2. Markets pull OEMs to do the same; this gives fleet managers leverage. 3. The increasing choice and wide range of strategies can be bewildering. 4. For now, electric has the upper hand – especially hybrid. 5. It’s as yet unclear whether pure EV or hybrid EV will come out on top. 6. Manufacturers are focused on CO2 reduction. 7. They’re also rolling out cleaner, more economical powertrains. 8. The switch to non-fossil engines is inevitable. 9. The future won’t belong to one motorisation, but to a mix of several technologies. The Californian manufacturer’s whole raison d’être is pure electric mobility; its only car, the Model S, is 100% electric – as will be any future models. Whether or not the future will be all-electric will depend in a large part on the future success of Tesla, both on its own, and as a driver for the rest of the industry. What has been achieved so far would have been mind-boggling just a few years ago: global sales of over 50,000 Model S cars, which by now have totalled a mileage of more than 1.5 billion kilometres. Pure vs. hybrid electric This has put pure electric squarely at the centre of the debate on sustainable mobility – especially for fleets. Improvements in EV technology

not only lessen the so-called ‘range anxiety’, and keep producing better TCO on top of the zero emissions that are not only good for the environment, but also for the corporate tax burden. But none of the major brands invests in pure EV alone. A typical example is Ford, which has already marketed the Focus Electric, its showpiece BEV (Battery-powered EV), but later this year will also launch the Mondeo Hybrid and the C-Max Plug-in Hybrid, two examples of petrol-based hybrid technology. Another is Hyundai, which develops eco-friendly cars through a variety of technologies, such as biofuel, hybrid electric and hydrogen fuel cells.

10. To best serve their fleet’s needs, fleet managers must deconstruct OEMs’ green images.

In fact, it’s not pure EV but hybrid EV that seems the industry’s favoured option at the moment – from hybridified Range Rovers to PSA’s Peugeot 508 and Citroën DS5. The thinking behind this trend seems to be that hybrids (still) require less of a leap of faith than pure EVs, although Volkswagen and some other manufacturers profess their faith in hybrids themselves as the more viable, long-term solution, rather than pure electrics.

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DOSSIER I European Fleet Market 2015

Particular profiles Despite the general trend toward (hybrid) electric mobility, each brand is slowly developing a particular ‘green profile’ of its own. Going beyond mere CO2 reduction, OEMs are investing in the technologies they hope will set them apart from their competitors. Hyundai’s hydrogen fuel cells have been a pet project since 1998, and have led to the launch, in 2013, of the Hyundai ix35, the world’s first mass-produced hydrogenfuelled vehicle. Although it doesn’t yet discard other alternative fuels, Fiat believes compressed natural gas (CNG) is the most future-worthy fuel, offering a range of 12 bi-fuel (petrol/ methane) cars to satisfy the need of its customers, professional and otherwise. In 2014, Fiat had a share of over 55% of the 100,000-plus CNG vehicles registered in Europe. The popular LEAF, with over 130,000 units sold globally, makes Nissan the Zero Emissions Leader in the world – an epithet upon which it capitalised last year by launching the eNV200, the fleet-friendly 100% electric van and people carrier.

Looking at the current ‘green’ offer of the car manufacturs, it’s not pure EV but hybrid EV that seems the industry’s favoured option. Nissan is determined to hang on to its title as the industry leader in electric mobility. BMW’s Green Fleet strategy is based on its Efficient Dynamics principle, which aims for a reduction in fuel consumption and CO2 emission while not just maintaining, but increasing performance and driving pleasure. It is up to fleet managers to deconstruct the green images the OEMs project of themselves, and match the requirements of their own fleets to the actual strengths of each OEM, and of the products in their range.

There is no single vision of what the future of sustainable mobility will look like, so car manufacturers are banking on divergent technologies: Nissan goes electric; Hyundai focuses on hydrogen; Fiat believes in the CNG future. Up to you to make your choice depending on your needs, your strategy and cost structure.

Downgrading or downsizing? After the economic crisis broke in 2008, when budgets became tight, international fleet managers were faced with the necessity of either downsizing the motorisations of their fleet cars, or downgrading the class of their fleet selection – or both. Even though the worst of the crisis seems over, tight budgets are the ‘new normal’, and green concerns help keep those twin phenomena alive today. As privileged observers, OEMs see persistent downsizing (more so than downgrading) taking place within their corporate client base in Europe, albeit at a slower pace than before. This is because of increased attention to TCO and CO2 legislation. In turn, they strive to offer powertrains that provide the same power for less fuel and less emissions. All of which constitutes a selfsustaining cycle, pushing and pulling the automotive industry in general, and the fleet sector in particular, inevitably towards a switch to alternative powertrains, be they electricity-based or otherwise. ■

Frank Jacobs

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DOSSIER I Car Manufacturers’ Fleet Strategy 2015

Low cost, high interest Nothing seems to slow the headlong rush of progress in the automotive industry. Except, perhaps, the success being met by the low cost sector. Mindful of the need to reconnect with the basics of the car, low cost models put the full-on quest for perfection on hold, in order to cut purchase and running costs to the minimum. A strategy that impacts their fleet future.

ince the beginning of the automotive adventure, each new generation has perfected a detail, brought in a new feature or improved the finish compared to previous models - all the while intent on keeping in tune with the overall expectations of society, such as how to remain permanently connected to the net via touch screen tablets. We have come to a point in this evolution where people find themselves driving cars with features that would have been the envy of any executive car barely ten years ago. Alongside this tidal wave of progress, which forces even city cars to offer heated steering wheels, autonomous braking systems and tablets connected to Facebook or Twitter, the low cost sector is something of an outsider. The only real representative in Europe currently is Dacia. The growing success of the low cost label in Europe may nevertheless be gradually emulated by other manufacturers.

some very important markets (such as India, Indonesia, South Africa and Russia), with models being produced locally at very affordable prices. The Alliance’s three low cost brands (Dacia, Lada and Datsun) are benefiting effectively from the synergy and are sharing their platforms in order to lower costs and, as a consequence, purchase prices. Volkswagen targeting China An increase in the number of low cost brands in the catalogues of other groups seems all the more probable since the pressing demand in emerging markets for basic cars is forcing manufacturers to develop models at rock-bottom prices. The initially reticent Volkswagen group is expected to enter the low cost market in 2016. Indeed, to achieve its aim of being the world’s leading manufacturer, the German group has recently confirmed its intention to start producing a family of low cost vehicles. This venture will get off the ground in China.

In June 2014, on the tenth anniversary of its rebirth, the Romanian brand had already recorded 3 million vehicles sold. But this success has been accelerating in recent months with the expansion of the range. In 2014 alone, Dacia sold more than 510,000 vehicles. This is a record result for the minnow, putting it in the exclusive club of manufacturers to sell more than 500,000 vehicles a year in Europe. Will this prompt other brands to get into the low cost market? Dacia’s success has been emulated in the RenaultNissan Alliance at least - the Japanese partner has taken the low cost plunge with the Datsun label. Having been shelved in the 1980s, the Datsun brand is becoming the spearhead of the Renault-Nissan Alliance in

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The Qoros Q3, a model designed in Germany, but not for the German market.

So far, Dacia is the only low cost car brand that has successfully established a true European market share. At the recent show in Beijing, Volkswagen announced that the concept and design of the first model in its new low cost brand was now set. Manufactured in China, the city car is expected to have a price tag of less than the equivalent of  6,000. Initially, this thirteenth brand in the Volkswagen group will only be sold in China. However, depending on the success it meets and the demand, Volkswagen might extend its marketing to

Like a German in China Pessimists used to have a vision of Europe being swamped by low cost Chinese models. In fact, the opposite is happening - it is western manufacturers who are launching an assault on the immense Chinese market with basic models. On the other hand, Chinese brands are interested in the (very complex and demanding) European markets, but not to generate volume - it is to be able to approach their domestic market crowned with the label “sold in Europe”, which goes down so well in China. The new Chinese brand Qoros, which is trying to corner the premium market at home, has therefore recruited numerous specialists from European brands and is designing its cars in... Munich. Because for the Chinese, premium - for the time being at least – can be nothing but German.

India, Latin America, some African countries, and even Eastern Europe. Interest in a low cost fleet sector So there is no point in waiting for a flood of low cost brands and models in western markets. True, based on the Dacia venture, which was also originally intended for emerging markets, other brands could gradually move towards European countries, with success. However, demand for accessible models in China, India or Russia risks taking up the entire production capacity initially. In the short term, there is no risk of low cost undermining the European fleet sector. This is a shame. Judging by the Dacia experience, concentrating on the basics in a car and only using proven components and technologies is the way to go to top the reliability surveys. What’s more, the low purchase cost also goes hand in hand with low running costs... Not to mention the fact that, by benefiting from modern Renault group engines, Dacia is posting very competitive CO2 levels. It is just a matter of sacrificing a little comfort (soundproofing especially) and driving a car that does not meet the standards of the Euro NCAP safety tests. ■

Jean-François Christiaens

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DOSSIER I Car Manufacturers’ Fleet Strategy 2015

Captive leasing a must-have accessory Car manufacturers generally supplement their fleet strategy by offering a range of ‘captive lease’ solutions – either via captive finance companies within their own group, or via so-called white-label brands, organised by a regular car lease company.

he principle of captive lease is simple enough: by providing the financing that companies need in order to acquire their fleet OEMs expand the one-stop-shopping principle. Furthermore the OEMs want to stay as close as possible to the end client and where possible have direct access to new clients. Captive leasing can be a great tool in achieving this. Despite the straightforward principle, the reality on the ground is bewilderingly diverse, due to the great variety of services, and the different channels through which they are offered (via those captive companies, as ‘white label’ brands, or both). Financial backup The two large French brands offer a classic example of an emphasis on captive leasing concentrated within the ample confines of the own group. Renault’s captive leasing company is Renault Credit International, which operates in tandem with the OEM itself in most of the markets where it is present. The captive leasing activities are 100% integrated within the group in major markets as France, the UK, Germany, Spain, Italy and Romania. This total level of integration allows RCI to offer package services for both local and international fleet customers – especially concerning small fleet financings and solutions. RCI naturally also provides the financial backup for Nissan, the other major brand within its automotive group. As Nissan Finance, the Japanese manufacturer does however offer a spectrum of schemes, products and services, from simple financing to full operating lease, that is unique to its own brand. For its captive business, PSA Peugeot Citroën relies on PSA Finance International, as the name indicates also a fully-integrated finance institution, offering a wide range of products and services in 23 countries worldwide.

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Volvo is a counter-example, offering a white-label solution in over 28 countries, in close collaboration with a market-leading operator. Kia presents a mix of both formulas. Its captive lease business runs through Kia Lease, outsourced to a third-party lessor, but nevertheless able to pro-actively seize market opportunities. Maximum flexibility Most other manufacturers opt for maximum flexibility, and choose to have both formulas available. Obviously, they take care to avoid overlap, which would imply competing against themselves. Fiat, for example, provides captive leasing solutions via FCA Bank, a joint venture between its own Fiat Chrysler Automobiles group and Crédit Agricole Consumer Finance. This channel is present throughout Europe – for example in Italy, where it offers the long-term rental product Leasys to the fleet sector. But FCA Bank is not present in all markets; in the others, Fiat runs a white label programme with ALD International. The white label option is a handy extension wherever the financial subsidiaries of OEMs lack coverage. But, as Hyundai’s stated policy proves, it is not necessarily the preferred option. The Korean manufacturer provides captive lease solutions in Europe via ALD and Arval – to the satisfaction of Hyundai - but the company nevertheless intends to develop its own captive leasing solution in the not too distant future. As mentioned, the size of the captive finance company is a determining factor in the range of captive lease services that an OEM can offer. Point in case: Škoda, now an integral part of the Volkswagen Group. For its captive lease solutions, it relies fully on Volkswagen Financial Services – an integral part of the Volkswagen Group – and its local branches in markets across the world.

The size, financial health and reputation for reliability provided by the parent brand allow Škoda (as well as the other brands of Volkswagen Group) to offer fleets across all markets a broad range of captive lease solutions, by its own Škoda brand managers and locally via its own Škoda importers and fleet/aftersales managers, but with the backing of Volkswagen’ captive finance company. Deep pockets Mercedes-Benz is a good example of the breadth of ‘captive’ service that deep pockets can offer. The German luxury brand runs its captive lease business through Daimler Financial Services. Operating in 23 European countries, DFS is an integral part of the wider Daimler AG group, as is Mercedes-Benz itself. As its captive leasing provider, DFS supports MercedesBenz’s fleet management with a wide range of products, including service leasing, insurance products, rental solutions and fleet consulting. In close coordination with the OEM’s own sales organisations, the captive lease solutions can be tailor-made to fit the needs of individual fleet clients. In fact, formulas can be stretched to include multibrand offers – effectively going beyond a strict interpretation of the ‘captive’ element inherent in the captive lease concept.

Captive leasing extends across the entire automotive spectrum, involving even upscale brands like Maserati, which offers captive leasing solutions throughout Europe via Maserati Financial Services, to the likes of Jaguar Land Rover. In contrast to Maserati, JLR prefers the white label route, working across its various markets around the globe with a variety of lease companies – selected for their international financial capabilities and the reliability of their fleet solutions. JLR’s white-label solutions, as an integral part of the group’s financial product portfolio, are squarely aimed at the SME segment across its markets. JLR does also offer captive solutions via its own dealer network, recently Fleet & Business Leasing with the support of ALD was launched in eight countries in Europe for example, but it relies strongly on the long-term relationships it has built up with the multibrand lessors providing its white brand solutions – relationships which have been central to the continuous growth in JLR’s rise in fleet sales. ■

Frank Jacobs

Captive leasing extends across almost the entire automotive industry as it is an attractive solution to expand services and reach the end customer.

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DOSSIER I Car Manufacturers’ Fleet Strategy 2015

What’s app for fleet managers & drivers Smartphones and tablets are an ever-present part of the daily routine, merging our personal and professional lives. At the heart of these devices are apps — programs designed to make tasks easier. The “appification of the enterprise” is well underway and the fleet sector is no exception. We examine 10 apps from car manufacturers to see what they offer fleet managers and drivers.

myOpel Accidents can happen and the “Accident Report” function included in the myOpel app allows the driver to capture critical information, including photos , that can then be e-mailed back to base. The emphasis is on practical service and the “Emergency Procedures” guide offers information on jump starting, vehicle towing and changing wheels. Dealer location and service booking requests are built into the app. Volvo on Call “Find Your Car”, “Check Your Car” and “Lock Your Car” are three of the four key services offered by this elegant app from the Swedish OEM. The fourth, “Driving Journal”, is of particular interest to fleet managers and drivers in that it allows you to “Log start/end positions, distance, duration, and fuel consumption.” You can then download the data and import it to an Excel file. Ford Service The pragmatic user interface of the Ford Service app enables drivers throughout Europe to access essential information on traffic regulations, parking assistance and filling stations. In case of an accident or breakdown, the Emergency Service functionality helps you, to contact Ford Service Assistance, a rescue service or the police. You can also get first aid tips and easily create an accident report. Kia Service What you see is what you get with this no-frills app from the South Korean OEM. Sales and customer care are at the heart of Kia Service. It displays all dealers around your current location using the integrated Google Maps and drivers can make service appointments as well as test drive reservations. Direct contact to emergency services is built in and the app provides an overview and explanation of the vehicle’s warning lights and indicators. Tesla Model S Elon Musk, CEO of Tesla Motors, is on record as saying that within 30 years the majority of new cars made in the US will be electric. The company’s Model S is leading the way. The car has been showered with awards for its innovative design and the related app matches it in form and function. It “talks” to the Model S constantly and displays status updates in real time. Want to start or stop battery charging, or heat or cool the car before driving? Just tap on the app.

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BMW i Remote The idea of sustainable mobility is at the heart of the BMWi car, and the accompanying app has been designed to enhance the concept. Not only does it measure the “efficiency” of each journey, it offers tips on how to drive the car more professionally and extend its range. BMW i Remote displays an array of information on the status of the vehicle: location and battery level along with mileage and servicing requirements. As we enter the era of the networked vehicle, BMW i Remote is a sign of the times. Vauxhall RoadTrip For the British fleet manager, Vauxhall RoadTrip is a useful app for calculating the distance and cost of journeys. It will generate reports and then e-mail them as CSV files that you can easily import into Excel. Want to filter reports via vehicle, mileage rates and date ranges? Vauxhall RoadTrip can do it. The app also offers a secure “back up my data” functionality to prevent sleepless night worrying about lost mileage data. Users can also create a library of location and journey favourites. Link MyPeugeot To complete the connection between manufacturer and marque, the French carmaker offers Link MyPeugeot, an app that provides drivers with comprehensive information about their vehicle. Real-time maintenance alerts, route saving, dealership location, servicing scheduling and handbook information are among the features. You can also export your mileage to the MyPeugeot website. Link MyPeugeot will also help you find the nearest parking lot and can locate the vehicle if you ever forgot where you left it. ŠKODA CNG Like many OEMs, ŠKODA offers a conventional service app with the usual features — dealerships, assistance, information — but for fleet managers considering alternative powertrains, such as CNG (compressed natural gas), the ŠKODA CNG app is worth noting. With the number of CNG-powered vehicles on Europe’s roads predicted to rise to 10 million by 2020, this is a growing market. The location of CNG stations determines route planning for CNG vehicles and the app will export the required data to your navigation device. BlueMotion CHECK Which of Volkswagen’s sustainable drive technologies is right for your fleet needs? BlueMotion CHECK has been designed to offer the answer. The app automatically calculates fuel consumption and CO2 data for every journey, and compares the results with the figures for electric, plugin hybrid and CNG-powered vehicles as well as the Turbocharged Direct Injection BlueMotion diesel engine. For fleet managers who must balance the financial and environmental upside and downsides of technologies and vehicles, this is a valuable app. ■

Eamonn Fitzgerald

Smart phoning and safe driving Your app-filled smartphone is a communications device, an entertainment centre and a diagnostic tool for monitoring vehicle performance. Along with all this goodness, comes the temptation for distraction. Whether you are calling, texting or using apps, it is vital to know the law and keep safety in mind. Some tips: • Pull up and use the device in a distraction-free environment.

• Mount the phone on the dashboard or windscreen. • Use a Bluetooth headset for making or taking calls. • Enable the voice-activated assistant (Apple Siri, Google Now, Microsoft Cortana) to obey your commands. • Set up the phone so that a passenger can access it and use the needed apps. • Pull up and use the device in a distraction-free environment.

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MANAGEMENT I Knauf Insulation

‘Global Guidelines’ for local implementation Knauf Insulation is part of a German family company – Knauf – which has around 25,000 employees around the world. The Knauf Insulation Company employs some 6,000 worldwide, in more than 35 countries, and Murielle Vijghen has been responsible for the fleet since 2012, within the Central HR department. The company had started work on a new programme for the fleet called ‘Global Guidelines’. This was developed at the headquarters in Belgium in 2012. Murielle Vijghen made a point of establishing deployment at the country level, resulting in a true collaboration between the central team and the local teams. Since 2013-2014, a new structure of HR has been created at the regional level (a group of several countries) which facilitates even more this deployment of Global Guidelines at local level.

KNAUF INSULATION Sector of activity: Insulation materials Headquarters: Belgium/Germany Number of employees: 6,000 Number of vehicles: 900 Number of countries: 35 Head of fleet activities: Murielle Vijghen Acquisition method: Purchasing > leasing

The Global Guidelines involve certain elements which the countries have to conform to in terms of maximums. There are clear distinctions between the different levels. There are, for instance, six car levels, and each level has maximums in term of models, budget, engine size and power among others. For example, the maximum engine size at manager level was fixed at 2 litres.

Low CO2 emissions pay In view of the domain of business in which Knauf Insulation operates, reducing energy consumption is clearly a priority. Five levels of permissible CO2 emissions were created, and these affect the budget the employee is entitled to use. Between 116 and 145 grams of CO2 per km, the employee can use 100% of his or her budget level. Between 146 and 165 grams, the budget is decreased by 5%... and so on.

The countries have to adhere to these guidelines which are designed not to be too restrictive, but there is a degree of local leeway so that local customs can be accommodated – but the ‘maximums’ cannot be exceeded. The Global Guidelines also ensure a minimum of differentiation in term of budget between the different categories.

By contrast, lower levels of CO2 lead to a budget increase. Between 106 and 115 grams, the budget allocation is increased by 5%, and if the employee chooses a car with emissions of lower than 105 grams, there is a budget increase of 10%.

For example, the maximum budget for one level is not higher than 85% of the maximum for the level above. Greater differences are allowed, but not smaller, reflecting the local market practice (lower budget or even no eligibility in some countries for example).

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Murielle Vijghen: “For me, good guidelines are guidelines which do not need to have exceptions made”.

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Of course, the employee cannot use this extra budget to select a car which falls outside of the CO2 ‘tranche’. CO2, therefore, directly impacts on the budget allowance at every level. The absolute CO2 emissions level is 185 grams. But of course some regions/countries decide to fix this maximum lower.

People certainly take more notice of CO2 emissions when they see that it impacts on their car budget.”

For example the UK has an absolute maximum of 145 grams applicable even for top executives. People certainly take more notice of CO2 emissions when they see that it impacts on their car budget and/or benefit in kind – and cars are a very sensitive subject. No exceptions The countries accepted these Global Guidelines fairly readily, although there were obviously some issues. In Germany, the maximum power of 163 hp (120 kW) was a little restrictive in a country which is used to driving more powerful cars. But they adhered nevertheless and in the words of Murielle Vijghen: “For me, good guidelines are guidelines which do not need to have exceptions made”. That’s also why it is important to listen to the feedback at the local level and to accept to correct some elements of the global guidelines if necessary. “We thus accepted to cancel the maximum of the HP and engine size as long as the principle of TCO (Total Cost of Ownership) is taken into account to fix their budgets and maximums. But they have to stick within each category to a car below the original maximums of the Global Guidelines: the employee can choose a more powerful car but he/she has then to decrease other elements in order to remain within the budget.” Local fiscal regimes can also require a local divergence, however. In France, Knauf discovered that there was a very hefty fiscal difference between 140 grams of CO2 and 141 grams. So it made no sense to set the Knauf ‘penalty limit’ at 146 grams, but at 141. Belgium, where the international headquarters of the division are located, was selected for the pilot project to implement the guidelines, which were then rolled out to other countries. The advantage of Belgium was also that company cars in this country are more frequently provided to employees. Optimisation Previously, most of the countries acquired their cars through direct purchase, but now there is a clear shift to

leasing. For example, Knauf Insulation now works with one preferred leasing partner in Belgium. This partner has been selected among others to be able to implement the car policy correctly. Where models are concerned, the range of brands has been reduced, and the countries can select from Audi, BMW and Volkswagen (the company is of German origin…) along with maximum two brands selected locally. By limiting the number of brands they intend to obtain economies of scale. Leasing is in the process of being implemented in all countries, with the aim to optimise TCO. Getting the basics right It is very good to have Global Guidelines, Murielle Vijghen confirms, and of course countries otherwise compare themselves with their neighbours, but it is also very important to stay in line with the local market. In many countries, the level of benefit in kind taxation paid by employees on their cars is also dependent on CO2 emissions. Good employers anticipate this, and anticipate the changes – which happen frequently. So employees are very happy to find that the car policy is based on CO2 emissions. “By putting in the right amount of time, you not only decrease costs for the company, but also improve the service you are able to offer to your employees. Creating and implementing a car policy has to be in agreement with several departments: HR, Purchasing, Finance,” Murielle Vijghen states. Once this has been correctly set up, it becomes of less importance who actually manages the fleet on a day-to-day basis in any given country. And in the case of Knauf, the choice of this person depends on the size of the fleet. It may be a local HR representative or a regional person with a helicopter view. Clearly, Knauf Insulation has designed a car policy which is of benefit to all concerned – there is good reason behind the optimisation, a well-constructed carrot and stick approach, and all parties appear to be happy. ■

Tim Harrup

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MANAGEMENT I Fuel management

Enjoy cheap fuel, but keep your eye on the big picture Falling fuel prices – how can that be a bad thing? But fleet managers know that even good news comes with its own difficult questions. Like: How does cheaper fuel impact TCO? Are prices likely to remain low? And should fleet strategies change because of them? The short answers: Not as much as you think, Not forever, and Not at all!

ince the middle of 2014, oil prices have dropped by almost half, and are currently hovering at around $50 per barrel, a price level unseen since 2009.

14% cheaper That downward slide is the result of a complex set of causes, the most prominent of which is OPEC’s decision to maintain high production levels, in order to maintain market share. Others include the low growth predictions for Europe and China, which consequently will consume less oil; and the shale oil boom in the US, which has made it virtually energy-independent. With some delay, as always, fuel prices have gone down as well. Average diesel prices in Europe declined by 7% in 2014, while petrol got 5% cheaper. Over the last three months, diesel declined 13% and petrol 14% in Western Europe (In the US, 16% and 30% respectively). “For an international car fleet of 6,000 cars, 80% of which are diesels, those fuel cost savings amount to 1 million”, says Saskia Harreman, Managing Consultant at LeasePlan International. If, as the US Energy Information Administration predicts, fuel prices will go down by another 10% this year, “that same fleet will generate an additional 1.5 million in fuel cost savings – or about 3% of its entire fleet spend”, continues Harreman.

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Short run UK customers of Alphabet, to name a concrete example, saved 14.4 million on fuel from September to January, on a total fleet of 131,000 vehicles. Those savings are confirmed by a number of multinational fleet managers polled for this article. For them, fuel cost typically represents 25 to 30% of TCO, at least in mature markets like Western Europe. It can be as low as 10% of TCO in Eastern Europe and other markets where fuel is inherently cheaper. Some fleet managers point out that fuel cost savings, while offering welcome room for investment in equipment and training, should not be over-emphasised: they have little effect on, and are relatively small compared to, the non-fuel elements of TCO. On the other hand, some companies do admit a very direct consequence of lower fuel prices on their fleets: the acquisition of less economical, higher-emitting vehicles, as lower fuel prices make them cheaper, at least in the short run. Long term So, is the paradigm of fleet management about to move away from the emphasis on cleaner engines, and greener alternatives? Not likely. Oil prices might remain low for now, but nobody can foresee how prices will evolve in the short term: there are too many factors at play, including armed conflicts, technological developments and inherent demand.

Evolution Barrel West Texas Intermediate

2008

2010

2012

Price per barrel 160.00 150.00 140.00 130.00 120.00 110.00 100.00 90.00 80.00 70.00 60.00 49.28 40.00 30.00 20.00 2014

We see that the Barrel West Texas Intermediate is in freefall since mid 2014 almost the same level as with the outburst of the financial crisis, but now is climbing up again.

The picture is clearer in the long term. Since 2005, the worldwide number of vehicles has increased 35%, but the supply of fuel has risen only by 12%. As lower oil prices discourage further exploration for new sources, this discrepancy is likely to grow. And that makes future price rises all but inevitable. This prospect should steel fleet managers’ resolve against opting cheaper, less economical vehicles. And indeed, they’re not abandoning the pursuit of cleaner, greener cars – nor indeed are the manufacturers, for the same two reasons. One: cleaner engines consume less fuel, so cheap fuel makes them even cheaper. And two: the commitment to lowering CO2 emissions is reinforced by high fuel prices, but ultimately independent of it. So what are fleet managers to do in this brave, new and temporary world of low fuel prices? The best option is to keep an eye on the big picture – price rises over the long term – and remain focused on reducing CO2 emissions and fuel usage. Just like their drivers. Today’s lower fuel prices have not undone the mentality shift in drivers, who now actively seek out smaller, more economical cars, and see the benefits of electric, hybrid and other post-fossil engines. ■

“LOWER FUEL PRICES HAVE DOUBLE POSITIVE IMPACT” Lutz Hansen, Lead Buyer Fleet Management at Bayer “Lower fuel prices present a financial bonus now, but their effect will become even greater in future. We are continuing our push towards lower-emitting vehicles, which implies engines that consume less fuel. Less fuel consumption on top of lower fuel prices, that’s a double, positive impact”. “FUEL-EFFICIENT CARS ARE DESIRABLE SECONDHANDS” Joe Carreira, Fleet Manager EMEA at MSD “We’ll continue to select our cars for best fuel consumption. Fuel-efficient cars are the best way to deal with fluctuating fuel cost, and they are also the most desirable in the second-hand market. Manufacturers realise this, and are producing models with increasingly efficient engines – good for fleets, and highly desirable in the second-hand market”. “CHEAPER FUEL WILL NOT HAVE LASTING IMPACT ON ALTERNATIVE POWERTRAINS” Christoph Kneip, Strategic Supply Manager at Hilti “I do not think that the trend of fuel prices falling will have a lasting impact on the development of alternative powertrains. For the simple reason that it will not continue indefinitely: at some point, the oil price will start rising again. Fully aware of this, OEMS are continuing their work on bringing more and better alternative powertrains to market”. “TWO IMPORTANT TRENDS” Saskia Harreman, Maniging Consultant LeasePlan International “Firstly, the actual fuel price runs behind the oil price movements. Oil companies usually change the fuel prices with some delay for the end consumers and governments need to secure their tax income which will influence the price as well. So it’s important not to focus too strongly on the decline of the last 3 months but rather to look at the prices from a broader perspective. The other trend is the technological development at OEM side. Year after year they manage to bring down the fuel consumption resulting in lower CO2 emissions. In general 1 out of 4 drivers opt for a smaller car and for many companies we see a decline in their annual mileage as well. All this contributes to an overall lower fleet spend. Companies tracking their fuel should recognise this and will confirm the importance of a good fuel management program.”

Frank Jacobs & Steven Schoefs

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MANAGEMENT I Fleet Europe Awards 2015

You can be the next Michael Dana On 19 November 2014 at the Fleet Europe Awards in Hamburg, Michael Dana of FedEx was crowned International Fleet Manager of the Year. Michael had taken the challenge, and applied for the coveted Award. Curious to see how a jury would evaluate his fleet management efforts against those of his peers, he was over the moon to be rewarded for the comprehensiveness and engagedness of his fleet management programme. Now it’s time to start the process to find this year’s International Fleet Manager of the Year. Why couldn’t that be you?

r have you never wondered how your work stacks up to that of your peers in the fleet industry? Considered your achievements being worthy of acclamation by an audience of international fleet stakeholders? If you will it, it is no dream. Apply to the 2015 of the Fleet Europe Awards, and you’re only two steps away from receiving the acknowledgement you and your team deserve. This year’s Fleet Europe Awards will be held on 19 November 2015 in Rome. The ceremony in the Eternal City presents the ideal opportunity for international fleet professionals to receive the international recognition they deserve, for the new and creative solutions they devise, the innovations they develop for their industry, and the benefits they generate for their companies. Fleet Manager Award categories All Award categories open to international fleet managers (fleet customers) will be assessed by a mixed jury composed of international fleet managers, lessors, car manufacturers, fleet specialists, as well as the Fleet Europe team. This jury will evaluate the realisation and implementation of the complete fleet management project, taking into account all key elements relating to today’s fleet management, such as the evolution of your car policy, the

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integration of sustainability, safety and driver behaviour criteria, the view on cost control and cost saving results, and your personal engagement in the international fleet management process. And the categories are:

THE INTERNATIONAL FLEET MANAGER OF THE YEAR AWARD This acknowledged and coveted Award recognises the person or the team having most successfully developed an international fleet management strategy leading to an optimised TCO. This Award category looks at the complete and overall vehicle fleet management approach in two sub-categories according to the size of your fleet. - International Fleet Manager of the Year – Large Fleet: more than 1,500 vehicles in at least 3 countries. - International Fleet Manager of the Year – Medium Fleet: up to 1,500 vehicles in at least 3 countries.

Previous winners: Raphaëlle Jeanneret, Novartis (2007) - ClausPeter Krüger, Shell (2008) - Werner Berger, Nestlé (2009) – Bruce MacLaren, Microsoft (2010) – Ivor Johnson, Pfizer (2011) - Joe Carreira & Robert Patrick, MSD (2012) – Luc

Dendievel, Johnson & Johnson (2013) – Michael Dana, FedEx (2014)

THE INTERNATIONAL FLEET GREEN & MOBILITY AWARD This award is presented to a company that has successfully implemented a green project or initiative in efficient alternative mobility for its fleet. As Green issues and Mobility issues are so closely interlinked, the organisation has decided to merge these two categories into one and the same Award category. The green and/or alternative mobility project combines eco-friendliness with employee productivity and Total Cost of Ownership optimisation.

Previous winners International Fleet Green Award: Akzo Nobel (2007) Hewlett-Packard (2008) - Bayer (2009) – Nokia Siemens Network (2010) – 3M Europe (2011) – Bayer (2012) – Luxottica (2013) – Carglass (2014) Previous winners International Mobility Award: Barilla (2009) – Accenture (2010) – 3M Europe (2011) – BNP Paribas Fortis (2012) – Luxottica (2013) – Allianz (2014)

THE INTERNATIONAL FLEET SAFETY AWARD This award is presented to a company that has successfully implemented a driver safety project, within the

Be proud of your fleet management and step into the footprints of the International Fleet Manager of the Year 2014 Michael Dana (FedEx): this year you could be the winner and step on the Fleet Europe Awards stage in Rome on 19 November 2015.

Previous winners: Vodafone (2010) – IBM (2011) - BNP Paribas Fortis (2012) – Capgemini (2013) – ThyssenKrupp (2014)

framework of the CSR strategy and with a focus on driver behaviour. It rewards a project or programme that improves the safety of the drivers and limits incidents and accidents related to the vehicle fleet, whilst taking into account cost optimisation.

Previous winners: Shell (2008) – BP (2009) – Coca-Cola Hellenic (2010) – Nalco Europe (2011) – Almirall (2012) – Nestlé (2013) – PMI (2014)

THE INTERNATIONAL FLEET INNOVATION AWARD This award rewards an innovative project in a specific field of fleet management (car policy, implementation, green, mobility or safety approach, driver satisfaction…). A project can be rewarded if the jury decides that an initiative of the fleet managers applying for the Fleet Europe Awards 2015 stands out in the field of innovation and contributes to fleet management optimisation on a wider scale.

INTERNATIONAL FLEET INDUSTRY AWARD This Award aims at rewarding the innovative efforts in service development of the fleet suppliers. For this Award category a separate jury, composed by international fleet managers only and people from Fleet Europe, will evaluate the degree of innovation and the cost-efficiency of the new tools and/or services proposed by the fleet suppliers applying for this category.

Previous winner: Arval Analytics (2010) – Mobileye Safety Device C2270 (2011) - TCOplus Greencube & Fleetcube (2012) – Mobileye 5-Series (2013) – Athlon Flexdrive (2014)

It’s time to win an Award: Apply now! You can’t win if you don’t enter! So, if you are a fleet manager with international responsibilities and if you and your company have optimised the fleet management policy and processes, or if you are a fleet supplier that has developed a new tool which helps optimise car fleets, you are the ideal candidate for this year’s Fleet Europe Awards.

The process is as easy as it is clear. In a first phase you are composing your candidacy dossier based around the Fleet Europe Awards 2015 Questionnaire that covers the essential ingredients of today’s fleet management. Deadline is 30 June 2015.

project in front of the complete jury. This round will be organized in the beginning of October 2015. Apply now! For more information send an e-mail with your contact details to Steven Schoefs (sschoefs@nexuscommunication.be)

In the second round you are invited to explain your fleet management

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MANAGEMENT I Fleet Europe Awards 2015

INTERNATIONAL FLEET HALL OF FAME The International Fleet Hall of Fame Award recognizes vehicle fleet industry leaders and pioneers who have contributed to the international fleet management profession throughout their career. Eligible nominees must have at least 5 years of international fleet management experience. Do you know a international fleet professional who meets these criteria? Nominate your preferred fleet leaders now by sending an e-mail to Steven Schoefs (sschoefs@nexuscommunication.be). Once the list of nominees has been put together the complete Fleet Europe community will have the opportunity to vote and elect the new inductee to the International Fleet Hall of Fame.

Previous winners: Tony Elliott (2010) – Gianluca Soma (2011) – Bruce MacLaren (2012) – Pascal Serres (2013) – Philippe Bismut (2014) ■

Steven Schoefs

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No reason not to participate 1. Personal Recognition The Fleet Europe Awards provide you and your team with the recognition and the reward your work deserves, heightening your profile and that of your company in your peer group and among international suppliers.

4. Benchmarking Through third-party recognition, you will be able to benchmark your fleet management against others, and share your best practices with peers. It will be a learning experience, beneficial to all parties involved.

2. Team recognition Winning an award is a way of showing your fleet team that all the hard work they have put into improving fleet management has been worthwhile, and has been recognised at an international level.

5. Meet other industry achievers All nominees will be invited to attend the Awards ceremony in Rome on 19 November 2015. This is a great opportunity to network with colleagues and potential business partners, and to share ideas and knowledge among them.

3. Professional development Feedback from the jury provides guidance and support from experts, which can be applied directly to your processes and practices.

6. Internal communication Winning an award is of course excellent news for internal communication throughout the company – news worth many thousands of euros in advertising.

BUSINESS I Element-Arval Global Alliance

Rolling up local best practices Element’s acquisition of PHH in North America in the summer of 2014 is another example of how globalisation is shaping the future of vehicle fleet management. Jim Halliday, CEO of Element Fleet Management, and Bart Beckers, CCO of Arval underline how only global frameworks with local implementation make for smart fleet management. How many vehicles do you manage today and what are your main target groups when talking about clients? Jim Halliday: In Canada we’ve have around 100,000 vehicles and in the USA we have around 600,000 in fleet. Add in the Element-Arval Global Alliance and you’re looking at a vehicle park of around 2 million. We are a powerful group interested in big business, like the energy, utilities and pharma, but also engaged with smaller enterprises. For example, in Canada we service fleets of 10+ vehicles and in the USA it’s 100+. Bart Beckers, Arval: In summary we have over 700,000 vehicles on our books. We’ve recorded good growth in the past year and our client portfolio is well balanced. A fifth is international business, a fifth is small and middle sized enterprises and the rest are local, mid market clients. What are your main objectives for next year and how will you succeed in realizing them? B. Beckers: We’ll be looking to maintain our growth rhythm and capitalise on the re-opening of European markets. SMEs remain a focus area and we’ll continue to build our market base in the BRICTs (Brazil, Russia, India, China, Turkey). The second part of our agenda is the One Arval programme. We are rationalising

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products and services, and looking at how we can leverage our scale so customers’ feel the benefit.

Jim Halliday, CEO Element: “Gaining senior management buy-in and the trust of the local fleet decision-maker is critical to developing a global fleet strategy. Getting leaders engaged in the fleet programme, both local and global, makes things happen.”

Bart Beckers, CCO Arval: “Build and foster trust. A trusted fleet partner delivers what is expected. A trusted partner should be a strategic fit and solutions focused. And in today’s environment we need to look beyond fleet management and start addressing questions about corporate mobility. “

J. Halliday: The US economy is on the bounce. In 2015 we expect to achieve around $2.6 billion in origination. We’re looking closely at service revenue and how we can add value. Innovations in maintenance, fuel and telemetry are lines of service that we’ll be exploring further. And of course we’re really excited about to be part of the Element-Arval Global Alliance. How do you work together: is there a global committee or are clients served based on their HQ? B. Beckers: We don’t offer a rigid approach and say that you must do this or you must do that if you want to work with us. There are partners now in nearly 40 countries and we’re mastering the use of global frameworks alongside local implementation. With a 100 + international agreements there’s a bank of best practice that we are able to call and build upon, and demonstrate what works really well. J. Halliday: The Element-Arval Global Alliance Board physically gets together twice a year, and we’re in contact on a monthly basis to ensure that our approach matches the market and we’re ahead of the curve with innovation.

BUSINESS I Remarketing shift

As Bart says, we customize our approach based on the customer’s needs. It’s worth remembering that clients also behave in different ways depending what side of the ocean they are on. So, it is important to reflect this in how we manage global frameworks. What does the future of fleet management look like? B. Beckers: Fleet management is never static. It’s moving all of the time. I can’t say where the fleet business is going to end up. Our role is to guide clients, offer advice and give them the support they need to achieve their goals. What I do know is that the environment in itself is a big challenge. We are not at the end of cost cutting. J. Halliday: It is our role to be always thinking about the next thing. At a macro level fleet funding, safety, sustainability and technology are the trends to watch. But it’s easy to wrap things up at the macro level and say that’s the way it is. Trends do not apply universally and their impact varies significantly based on a range of local factors. At the micro level things matter just as much. Take the fall in the price of fuel. It’s fantastic for some, but for fleet managers in the energy business it’s bad news. The big global gain often comes from rolling up local efforts. ■ Steven Schoefs

The complete interview Read the complete interview on www.globalfleet.com with extra insight in: • T he integration of the acquisition of PHH by Element Fleet Services • T he impact of new and emerging markets on the Alliance

Surfing on the new tech wave The future of car remarketing is definitely offline: suppliers foresee that offline auctions will vanish and they’re already considering new marketing strategies to appeal to Generation Y – the people who buy used cars.

“

As technology continues its creative destruction of old business models, it will soon be hard to picture vehicle auctions that are not concluded over the Internet,” says Peter Grøftehauge, CEO of Autorola, the Denmark-based specialist in online remarketing. The Internet has shaken up the traditional customer portfolio of remarketing auctioneers: lease companies are increasingly reselling their end-of-lease vehicles via their own online channels, for example. Suppliers foresee offline auctions will vanish: the fluidity of the transition from online to offline auctions is such that it’s hard to determine how much exactly takes place online already these days. “We face a generational shift,” explains Jean-Laurent Paris, DEKRA Automotive Solutions’ Managing Director. “This year Generation Y – born between 1980 and 1985 – will make up 40% of Europe’s workforce. This generation grew up with the Internet, and they are the people who buy used cars.” With their multi-channel approach to information, young used car

buyers know more and expect better than ever before. To appeal to this customer base and surf on the new tech wave, suppliers have to come up with new solutions and marketing strategies. “Indicata is an online tool that gives our customers a live view of the market,” says Grøftehauge. “They can check the current prices of the cars in their fleet in real time.” Yet it is believed that, at the same time, Millennials are less interested in price and more in value. As Jean-Laurent Paris highlights: “They want to be part of a community, be fans rather than customers. To appeal to Generation Y we need to enable interaction and provide rewards.” A clear shift in customer base is taking place, and with it the Internet has become the new usedcar showroom. If by 2020 offline sales are to disappear, suppliers ought to adapt their platforms and strategies, and to make good use of social media and interactive tools to retain their “fans”. ■

Frank Jacobs & Laetitia Fernandez

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SMART MOBILITY I

Europcar & Ubeeqo

Europcar Smart goes Mobility corporate unravelled car-sharing As efficient fleet management can’t do without looking at a broader mobility scope we offer you further insights into the latest trends in mobility management. In this section you will find up-to-date information, case studies on alternative mobility solutions related to the use of the traditional company car, as well as information on new mobility products and services, and mobility management suppliers. More specifically, we delve into Europcar’s ambitions in car-sharing, with their recent acquisition of the French-based B2B carsharing company Ubeeqo. What’s more, we explore OEMs’ new mobility schemes, as they enhance telematics use and take the car-sharing concept to a whole new level by implementing vehicle fleet sharing. Last but not least, we tell you all you need to know about mobility cards, and how they should be integrated in your Car Policy 2.0.

Europcar has recently acquired a majority share in French-based business-to-business car-sharing company Ubeeqo. This latest consolidation within the smart mobility domain demonstrates once again the importance of this growing market for corporate fleets and their companies large and small. Europcar is one of the world’s largest car rental companies, and is no stranger to the car-sharing concept. With car2go, it has a presence in many cities, especially in Germany and the United States. This concept is destined for private users, however, and Europcar wished to make a move into the burgeoning B2B segment. Ubeeqo is a relatively new French company which has successfully targeted exactly this segment, and which has expansion objectives. This ‘David and Goliath’ partnership therefore seems to be a perfect fit for both companies. “We quickly came to realise that our business model was very capital-intensive, needing substantial amounts of cash to finance the cars,” Benoît Chatelier, co-founder of Ubeeqo says. “We also realised that the mobility market has many large players within it.” He explains that associating Ubeeqo with the European leader in terms of short term mobility services was an excellent choice. “This was not in our heads even a few months ago, but the occasion presented itself and things moved quickly.” New business models By coming together with Ubeeqo, Europcar has made an interesting move in the area of urban mobility. From the point of view of Europcar, Didier Fenix, General Manager, Europcar France and Belgium and Executive Member of Europcar Group, points out that his company had observed that the business model was evolving

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Didier Fenix, Europcar: “The Ubeqoo technology and multi-modal platform will enable us to develop new products to provide seamless mobility.”

in many places, with new mobility models emerging. So by associating Europcar with Ubeeqo, Europcar was able to take on technology enabling it to continue to develop its offer and skills and its technological portfolio in the corporate mobility market with a new innovative service. One of the reasons why Ubeeqo has been able to develop so successfully is the technology it uses, and Didier Fenix is clear about this: “Ubeeqo has its ‘BetterCar Connected’ product, which enables companies to use the on-board technology to anticipate fleet management needs. Another area in which Ubeeqo will be very complementary to Europcar is in their multi-modal platform which will enable us to develop new products to provide seamless mobility.” The existing advantages within Europcar had not escaped the notice of Ubeeqo either, and Benoît Chatelier recognised that these would be of benefit to his company. In particular, the new Europcar base-line ‘Moving Your Way’ fits exactly with its own philosophy. So in terms of being leaders in mobility services, the two companies are on the same wavelength. He explains: “We have found an entrepreneurial company with Europcar, well structured, well organised, a spirit which matches very well with ourselves. I am convinced Europcar was the brick we were missing, and Ubeeqo was the brick Europcar was missing.”

Benoît Chatelier, Ubeqoo: “I am convinced Europcar was the brick we were missing.”

Client benefits Both companies are clearly aware that the objective of such a coming together, and the success of it, depends entirely on the benefits it provides to clients. Didier Fenix: “Ubeeqo provides a service to companies which enables them to optimise their fleet management by reducing the number of cars in the fleet and by spreading the cars across all of the personnel.” From his side, Benoît Chatelier is equally focused on client service, and believes that Ubeeqo’s existing corporate clients are clearly going to be able to benefit from what Europcar brings in terms of fleet and operational management, logistics, finance. “We will therefore be able to work with Europcar to enlarge our offering to our clients. We will be able to provide more flexibility with short term renting to be reserved in advance, and our own car-sharing product. Companies are looking for flexibility in the domain of mobility, not just company cars.” This merger has clearly been established on the basis of a win-win-win situation. Both of the participants have identified that they need the other, and clients are set to retain the advantages they already had with whichever of the two companies they were originally associated with, and now have access to the services of the other. ■ Tim Harrup & Steven Schoefs

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SMART MOBILITY I Evolution of corporate mobility

Smashing walls with cars Greenwheels, Audi and PSA Group are taking car-sharing’s B2C roots and moulding sharp new B2B products. Mobility schemes that don’t see companies, only drivers.

Employees at any and every company at the south Amsterdam site can now gain access to a common car-sharing pool of Audi A1s that, again, are invoiced per use, not by contract.

Greenwheels’ NS link-up follows their involvement in a sharing scheme at Amsterdam’s World Trade Centre, alongside Audi and WTC management.

Audi Unite And Audi itself is no stranger to car-sharing trials. Its December ‘14 pilot project, designed for corporates and civilians, is beginning to bear fruit on its Stockholm testing ground. Audi Unite invites up to five people to share any Audi vehicle for a year, under a private commercial agreement. Via Bluetooth entry fob and smartphone app, any one of the five can drive the vehicle at any time (providing schedules

n February, Dutch electric vehicle car-sharer Greenwheels announced a ‘Fleet On-Site’, project in partnership with Dutch national Rail operator, NS. The scheme provides Greenwheels vehicles on-demand to NS Business Card Holders; whether they’re at work, home, or on-the-move. Requested through NS online, members can expect cars in 15 minutes and payment is handled via retrospective invoice – so costs can go on the company mobility tab.

don’t clash), and each driver is billed according to usage. PSA Share Your Fleet PSA’s Share Your Fleet initiative is another B2B product founded on car-sharing’s B2C heritage. It’s a solution that’s blind to company ties, and invites drivers from numerous companies to share a common pool of Citroën and/or Peugeot cars that are booked online. Car-sharing actually started as a niche B2B idea, but passed over to B2C to mature. These seedlings suggest lessons have been learned, and 2015 may be the start of a spiritual homecoming. ■ Ally Millar www.volkswagenleasing.de/internationalfleet

International Fleet

As a European market leader with many years of experience in implementing fleet solutions, we are a reliable partner and assist our clients with a diverse range of high quality products and services. Further information about fleet solutions in Europe can be found at www.volkswagenleasing.de/internationalfleet

SMART MOBILITY I Telematics & Connectivity

How to remedy bad driver behaviour Tomorrow’s mobility is being born today. OEMs are experimenting with platforms for car-sharing. More telematics means improved connectivity. Smarter technology is enhancing safety and comfort. All of which has a positive impact on the twin concerns of all fleet managers – lowering cost and increasing residual value.

ven without a crystal ball, one thing is for sure: there will be a lot of Big Data in all of our futures, including in our future cars. The trend towards more telematics in cars is part of the march towards an ‘internet of Things’, in which everyday objects will be measurable and dirigible via embedded electronics. Dashboard app The wealth of data produced by an ‘online’ car is especially relevant to fleet managers, who finally have the tools to measure (and remedy) the last great unknown of fleet management – driver behaviour. Take for instance Fiat’s EcoDrive Fleet, a TCO-driven application aimed at modifying driver behaviour to lower emissions and costs. Via personalised recommendations on driving style, and by providing feedback and reports, the app – started out as a smartphone app, but now integrated in the dashboard – claims to be able to reduce emissions by as much as 16%. But connectivity is fleet-relevant in more ways than just cutting cost and reducing emissions. Being online on the road transforms the car into a mobile office. Audi Connect is a good example. The system uses a SIM card in the Bluetooth car phone to connect to create a wifi hotspot, allowing up to 8 people to access the internet. Driver and passengers can check on weather, news and traffic, locate the nearest petrol station, check and send emails, even update their Facebook. Similar systems exist for other brands, such as Mercedes Connect Me, which integrates breakdown management, telediagnostics, maintenance management, and much more. Holistic cars Technology is also increasingly relevant for the actual process of driving itself, whether it is Kia’s Adaptive Smart Cruise Control (ASCC), reacting to dangerous moves of the car in front, and Blind-Spot Detection

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(BSD); both of which are mirrored by Mercedes-Benz’s Collision Prevent Assist and Blind Spot Assist. In fact, the technological innovation in the automotive industry recalls the saying that the future is already here, it’s just unevenly distributed. While many OEMs are developing similar techniques to eliminate blind spots, keep their vehicles in lane and allow them to park autonomously, one can foresee a not too distant future in which all these technological advances will be integrated as a standard bundle in the holistic car of the future. Nissan’s Safety Shield – a package consisting of similar and more electronic warning systems as mentioned above – is a good indication of where things are going. Nissan also makes a good point about the wealth of telematics data (about 800 different streams) it can transmit: other players in the fleet industry might offer similar services, but only OEMs know how to best interpret the information.

Innovation on three fronts Car manufacturers are innovating their fleet offers on three different, but overlapping fronts. • F irstly, they are making great strides in their technological offering. On-board telematics increasingly allows fleet managers to monitor and adjust driver behaviour. And driver assistance technology is helping to keep the vehicle in lane, out of collisions, and parking it without scratches. • S econdly, and also partly thanks to the improvements in telematics and online service delivery, OEMs are turning up the quality of service and maintenance, while keeping price in check. • F inally, OEMs are following the lead of successful initiatives like Daimler’s Car2go and getting in to the car sharing business.

Thanks to the connected car, vehicle fleet managers will finally have data available to efficiently remedy the last great unknown of fleet management - driver behaviour.

Levels of service But automotive innovation doesn’t limit itself to the cutting edge of technology. It can also focus on the less spectacular, but equally rewarding work of improving existing solutions. And so, in fact, should fleet managers, for this is where some real benefits are to be gained. These improvements often involve the level and extent of service available (or required). For example, PSA Peugeot Citroën’s innovation drive focuses on delivering high driver experience, in large part by reducing vehicle downtime. Some instruments towards implementing this include an online repair and maintenance booking system, a one-hour servicing offer for vehicle maintenance, and a loyalty programme to ensure service consistency across all PSA service networks. Ford’s introduction of extended two-year service intervals (on the S-Max 2.0l Diesel and the new Mondeo) will reduce maintenance costs on those models by an average of 20%, to name another example. Car-sharing Ford exemplifies another conspicuous trend in automotive innovation: sheer volume. The Detroit brand is engaging in no less than 25 so-called ‘mobility experiments’ this year, to test new ideas and to address the increasing challenges of transportation. One experiment that will be watched with close attention by its competitors will be its Carsharing initiative, already up and running in Germany. For car-sharing is

one of the most popular avenues for OEMs to explore alternatives to traditional car ownership and usage. Nissan Car Sharing is a solution specific for fleets, as is PSA’s Share Your Fleet – a scheme in which co-located businesses use the same vehicle pool. Between high-tech innovation to improve safety, economy and emissions; good old-fashioned incremental progress in service and maintenance; and experiments to share cars and indeed fleets, a lot of things are happening in the field of automotive innovation. But until we reach the point where each OEM offers homogenised, broadly similar packages in each of these fields, it comes down to the fleet manager to prioritise his needs, and match them to the wealth of offers that is out there. ■ Frank Jacobs

Main lessons for fleet managers • D on’t focus solely on flashy technology. Selfparking cars are cool. But a less spectacular maintenance protocol might save your company more money. • M any OEMs are stepping up the pace of their innovation experiments. Make the effort to keep informed of the latest projects and offers. • C ompare offers. OEMs are often working on similar solutions, but some brands might have packages that better suit your needs.

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SMART MOBILITY I Car Policy 2.0

Knowing your taxi from your tiramisu Today’s mobility cards unlock a world of alternative travel and employee mobility. You may think such schemes will one day replace the company car, but contrarily, the data provided will probably help to preserve it... where necessary.

n an age of belt-tightening and environmental sensitivity, company credit cards have changed suit. Proprietary mobility cards are today enabling employees, who wish to leave the car behind, to roll alternative transport into their day. But rather than a natural enemy of the company car, mobility cards could instead be an ally when it comes to redefining their place in a multi-mobility world. And as ever in 2015, data is key. Mobility cards are go “We see two key drivers for new mobility solutions: employees will become more influential regarding their own mobility, and there will be an increased need for more flexibility,” says Servi G. de Vette, Director of Strategy and Geographic Expansion at LeasePlan. A majority of companies still opt for Amex and Visa et al for reasons of familiarity, Airmiles or cashback incentive, but mobility card providers offer companies

much richer long-term benefits. A typical mobility card product is simple in concept: a smartcard-based system that covers any and all travel options so employees have seamless flexibility to travel by train, bus, metro, taxi, rental bikes, rental cars, private and corporate car-sharing. Sometimes cards cover parking and other peripherals too. The concept differs from classic company plastic in that there’s no need to wade through itemised receipts to separate the tiramisu from the taxi ride – and the data is designed to tell a useful story. Reporting insights from mobility cards shine a light on a fleet’s travel behaviour, choices and costs showing the methods employees are choosing that work in their dayto-day movements. The environmental benefits aside, mobility card-inspired insights help to determine a fleet’s travel policy future. It gives fleet drivers and employees the chance to vote with their smartcards – and showcase the best mobility options for the road ahead.

Mobility Mixx is expecting to be used by some 80,000 company employees in 2020, with a total of 2,000 shared cars.

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XXImo and Mobility Mixx Particular mobility cards like XXImo and Mobility Mixx – both from the Netherlands – are all-in-one mobility concepts that unlock multiple modes of travel for any corporate client. And from fuel to taxis, train, tram, bus and plane, provide a single card solution – and a single reporting goldmine. With XXImo, fleet and mobility managers can allocate levels of mobility privilege and timing parameters for card use by individual employees or management bracket. Activity logs in a central system can be spliced by employee, management level, travel type, cost-base, time of use, or any other category. The data then gives employers a helicopter view of trends and mobility patterns vital for defining future car and mobility policy. Leasers and mobility cards Now why would vehicle leasing titans want to push customers out of cars and onto bikes and busses via mobility cards? The game is changing, that’s why – and most vehicle leasers have mobility cards in support of the main car product. Mobility Mixx works alongside kingpin LeasePlan to give customers options beyond the lease car. LeasePlan clients can ‘buy’ virtual tickets for train, taxi, rental or pool car travel from Mobility Mixx and offset costs against the prepaid lease budget. Recently Mobility Mixx announced that is expecting to be used by some 80,000 company employees in 2020, with a total of 2,000 shared cars.

Mobility cards could be the way to seamlessly redefine the place of the company car in a multi-mobility world. ‘A single card, a single invoice, all the freedom’ says ALD Automotive of their card, as bus, tram, metro, train, taxi and public bicycles are unlocked with a single payment mechanism, which again comes from budget usually reserved for car lease costs. Car Policy 2.0 Vehicle easers are experimenting with the implementation of mobility cards because travel choice and flexibility are the order of the day for the modern workforce. Company cars may be necessary in some cases, and

More and more corporate fleet managers think about how to integrate a true mobility menu for their employees. The mobility card could be the tool to drive this concept.

overzealous in others – but crucial to reducing footprint, and cost, is finding out where and when they’re put to most efficient, optimal use. Mobility cards might appear to be cars’ enemy, but they could be exactly that means of research. In a February 2015 interview, Head of International Fleet at AMOS – and 2014 International Fleet Mobility Award winner – Franz Fehlner, coined the phrase “Car Policy 2.0” to describe an era where multi-modal travel is king – not any more the company car. Global Fleet & Mobility Procurement Lead at Accenture, Alan Duez, recently told Fleet Europe: “We put a sort of mobility menu in front of staff and allow them to spend their own budget in a way that fits with their life… You can loan a car for full-time use, or you can opt to use a combination of car and train.” The point is that cars may remain centre stage, but there’s plenty and interesting data in those cards that can inform the process. Rather than issuing a reckless, blanket elimination of company cars, mobility cards can indicate longer-term mobility solutions for the fleet. If car-sharing looks viable, go for it. If the company car really is the way to go – revert back. Mobility cards could prove the research oracle that shines a light on a corporate fleet’s next chapter. Ally Millar

FLEET EUROPE # 75

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SCOPE I Fleets in Turkey

Operational leasing is on the rising curve The Turkish car fleet business hasn’t much to worry about, according to sources in the business world: 2015 is bound to be another year of growth. Last year the car fleet business grew by double digit, more than doubling the Gross Domestic Product growth.

n general 2015 is another year of challenges, taking account, among other things, of the decrease of the Turkish Lira on the forex markets. Turkey is clearly vulnerable to the currency wars on those markets, but the country can put some of its trump cards on the table. One of these cards is the situation on the car fleet market, which isn’t mature yet. This means enough space for market development and growth. There are approximately 18.5 million registered vehicles on the Turkish market, but no more than 240,000 of these vehicles are used by operational leasing. That’s a quite low rate compared to developed countries in Europe.

SME customers will switch from purchasing to operational leasing.

From outright purchase to operational leasing Generally speaking, the fleet market can stay relatively steady compared to the retail market. The leasing industry is likely to keep growing, mainly because part of

Indeed a majority of Turkish companies still prefer to purchase vehicles rather than lease them, but operational leasing has unequivocally the advantage over purchasing cost. The services that the leasing industry provides are also a surplus.

The leasing industry in Turkey is likely to keep growing, mainly because part of SME customers will switch from purchasing to operational leasing. Therefore the popularity of leasing is increasing incrementally – a trend that can accelerate in the years to come. Although it used to be a popular fleet funding method, financial leasing is currently the least popular one because it doesn’t include operational services.

Istanbul: the fleet crossroad From 1-3 June 2015, GlobalFleet.com invites international and Turkish fleet decision-makers to join the first regional event. We have chosen Istanbul to host this first summit. Turkey has been a crucial crossroads throughout the history and is more than ever of strategic importance. This first ever Summit will focus on the challenges and opportunities of the Turkish fleet market (day 1) with the support of TOKKDER, the Turkish Auto Leasing and Rental Companies Association. In addition, we will take you on a dedicated fleet country discovery tour, with fleet experts sharing their knowledge on Russia, Kazakhstan, Bulgaria, and Romania (day 2). Learn more at summit.globalfleet.com.

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SCOPE I Fleets in Turkey

Consider international standards under local conditions.

Operational services When asked what kind of new services and products operational leasing suppliers are planning to launch, their answers mostly pointed in the same direction. The focus lies clearly on customer service and satisfaction. Nearly every company aims to further invest in digital tools and reporting systems, with a lot of attention being paid to the internal organization and fuel management.

US Dollar: in general American car makers only have a small market share in Turkey. The automotive industry, including imports and local production, is therefore dominated by European brands. Since there are no barriers yet for entering the Turkish car fleet business market, there are relatively

great differences between the most important players. What’s more the structure of the market differs from developed countries like the United States, Japan and member states of European Union. A good piece of advice to corporate fleet managers is to consider international standards under local conditions. Besides that, they should take a closer look at the costs of vehicle leasing. Available stocks and reliable delivery planning are absolutely necessary. Because everything is urgent in Turkey! ■

Jos Sterk & Laetitia Fernandez

Another point worth mentioning is the implementation of a proximity policy, especially with what regards clients that are located in cities outside Istanbul and the other great industrial centers as there is still an enormous potential. Lira vs. US Dollar vs. Euro A big question mark lies with the instable foreign exchange rates between Lira and US Dollar/Euro, and with the way the evolution on the forex markets will impact the car fleet business in 2015.

TOKKDER: Professionalising the industry

The big European car manufacturers in Turkey have to be paid in Euros. And most contracts in the operational leasing industry are also edited in Euros. Having said this, both the Lira and the Euro are weak. Faith in the Euro depends on a lasting solution for Greece, whereas faith in the Lira depends on the politics of the Central Bank (and of course the results of the general elections).

Turkay Oktay believes education is key to rising awareness and creating the climate for growth in operational leasing. The Turkish fleet industry is still quite young he says, but it has achieved high growth since 2003 and with the arrival of the international players around 2006 - 2007. So what are the big challenges? “It is really our goal to further professionalize our members and our clients in order to steer our industry.” Growth of 14.3% in 2014 came on the back growth around and above 20% each year between 2011 - 2013. For this year Turkay Oktay expects a same growth as last year.

Most experts forecast car prices will be influenced mostly by inflationary expectations. Regarding the

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At the forefront of promoting best practice in the Turkish vehicle rental and leasing business is TOKKDER. Turkay Oktay, the association’s newly elected president, shares his plans for the future. With 110 members and covering 70% of the marketplace, TOKKDER has established itself as the voice of the car rental and leasing industry in Turkey.

Turkish businesses prefer outright purchase and it’s a cultural mindset that’s proving difficult to change says Turkay Oktay. International players are receptive, but at the other end of the scale many Turkish SMEs don’t even know about the advantages of leasing. The same counts for corporate clients based outside of the big cities. And once they do know car leasing, very often the financing packages are in EUROs - a legacy of historically high inflation in Turkey - which adds bigger risks for SME’s to manage. With research and upping the knowledge base of the market he reckons success will come in time.

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