Fleet Europe °78

NEXUS COMMUNICATION - FLEET EUROPE #78 - PERIODIC MAGAZINE - SEPTEMBER 2015 - DEPOSIT OFFICE LIÈGE X

SEPTEMBER 2015 - # 78

DOSSIER

LCV Management in Europe With tips from Michael Dana, International Fleet Manager of the Year

SUMMER OF ACQUISITIONS • New shareholders for LeasePlan • Arval buys GE’s fleet business

FLEET EUROPE EVENT 2015 18 & 19 NOVEMBER IN ROME

REGISTER NOW

THE NEW SEAT IBIZA ST

STAY CONNECTED TO YOUR BUSINESS

TECHNOLOGY TO ENJOY DESIGNED FOR SAFETY AND CONNECTIVITY The new SEAT Ibiza ST is the ideal car for all your Fleet needs. Sleek and versatile, it features next-generation connectivity designed to make doing business a breeze. SEAT’s Full Link technology mirrors your drivers’ smartphones via the infotainment system, allowing them to remain constantly in touch with you - all while keeping their attention firmly fixed on the road. And driving pleasure is assured with a choice of dynamic petrol engines: 3 cylinder 1.0-litre TSI, or 4 cylinder 1.4 TSI ACT.

SPACIOUS AND VERSATILE

YOUR CAR IS YOUR OFFICE

EcoTSI ENGINE

The 292-litre boot has room for all the tools and equipment you need to drive business success.

Easy Connect with Full Link (MirrorLink, Android Auto and Apple CarPlay) connects your smartphone to your car. This allows you to use it safely and surely.

The best in class 1.0 EcoTSI engine can cover 100 km on only 4.1L of fuel, emitting just 94 g of CO2 per km.

SEAT FOR BUSINESS Average fuel consumption from 3.5 to 5.3 l/100 km. Average CO2 mass emissions from 90 to 120 g/km.

SE AT.COM/BUSINESS

In the first half year of 2015 the Light Commercial Vehicle market in Europe has boomed. EU-wide new LCV sales were up 12.9% to 854,733 units, well over 93,000 more than in the first half of 2014. This is the result of a positive economic climate encouraging companies to invest in business, and… working tools. But they are also looking for cost efficient, fuel efficient and fit for purpose vehicles. In our LCV Management dossier you will discover the latest product and services. Looking at trends we see that the race towards efficiency will be further stimulated and driven by EURO-6, connectivity and telematics, and new alternative powertrains.

EDITORIAL

Fit for purpose

Sharing advice and best practices is also at the heart of the 2015 Fleet Europe Event, taking place on 18 and 19 November in Rome. The 2015 Fleet Europe Forum on 19 November will focus on the changing future of fleet management and the fleet management profession, with learning from leading experts and networking in the Fleet Europe Village being top of the agenda. In the evening, we are delighted to be hosting the 10th annual Fleet Europe Awards Ceremony, honouring the people, the initiatives, and the innovation that drive our community forward. On the previous day, 18 November, we are organising a new IMFI training session dedicated to Alternative Powertrain vehicles in fleets. And on November 18 you can also attend the second edition of the Fleet Europe Remarketing Forum which will put the spotlight firmly on the challenges facing the European remarketing industry.

Fit for your fleet management purpose, don’t let the Rome opportunity pass you by!

All of Europe’s fleet roads lead to Rome.

In these pages you will also find LCV fit-out trends, and best practices. Top international LCV Fleet Managers explain their Do’s and Don’ts in the areas of policy, product selection, supplier relationship, fit-out, safety and green. Their advice is quite simply priceless.

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

A successful year: key figures from the major markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.7 New LCV models for your fleet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.12 Manufacturers: the latest offerings . . . . . . . . . . . . . . . . . . . . . . . . . . . . .P.14 Connectivity in LCV’s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.21 Trendwatch: what the future holds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.22

DOSSIER I LCV management Manufacturers, products, trends and top tips in the LCV world

7-39

Regulation is no hurdle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.25 The road to Euro 6

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Fit-out: the experts speak

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Telematics and Track & Trace . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.31

CONTENT

I DOSSIER I

Advertorial Fiat Ducato . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.34 15 Top tips from the International Fleet Manager of the Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.36 Three global experts share their tips

. . . . . . . . . . . . . . . . . . . . . . . . .

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I MANAGEMENT I MANAGEMENT I

Safety in LCV fleets with Christof De Waele’s case study (Jan De Nul Group)

42

Fleet management is changing: be ready . . . . . . . . . . . . . . . . . . . . P.40 Case study: Jan de Nul Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.42 Safety corner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.44 TCO: getting the equation right . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.46

BUSINESS I

Summer of acquisitions, an exclusive analysis by Robert Boscari (Fleet Europe) and top interviews

48

I BUSINESS I Case study: Geotab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.47 The summer of acquisitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.48 Interview: Thomas Schmid, Hyundai

SMART MOBILITY I

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Hertz: In control of our destiny . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.53

E-bikes, apps of the future

54-57

I SMART MOBILITY I E-bikes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.54 The future of mobility is in apps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.57

SCOPE I

LCV’s and the environment

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I SCOPE I LCV’s and the environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.58

COLOPHON

Aline Verpoorten - Assistant averpoorten@nexuscommunication.be

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

Contributors: Jean-François Christiaens, Jonathan Green, Eamonn Fitzgerald, Tim Harrup, Frank Jacobs, Frédéric Vanvlodorp, Michaël Vandamme Experts: Michael Gergen (Dataforce), Robert Boscari (Fleet Europe), Michael Dana (FedEx Express) Cover: ©Modul-System - Pictures: ©Shutterstock - ©ThinkStock Layout: Hungry Minds - info@hungryminds.com

Steven Schoefs - Chief Editor - Fleet Europe sschoefs@nexuscommunication.be Laetitia Fernandez - Content & Community Editor - Fleet Europe lfernandez@nexuscommunication.

David Baudeweyns - International Key Account Manager dbaudeweyns@nexuscommunication.be Sigrid Nauwelaerts - International Key Account Manager snauwelaerts@nexuscommunication.be Daniel Savigny - International Key Account Manager dsavigny@nexuscommunication.be Céline Gilson - Assistant cgilson@nexuscommunication.be

EDITOR

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

FLEET EUROPE

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

FLEET EUROPE # 78

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The new Hyundai Tucson

Meet the game changer This is the car that demonstrates the power of change. Bold, expressive design, a completely new platform and class-leading internal dimensions combine to make the all-new Tucson an unbeatable package. There’s a wide-opening panorama roof, smooth-changing 7-speed dual-clutch transmission and other desirable features that are unique in this class.

Competitive pricing, low operating costs and high residual values make the all-new Tucson an ideal fleet vehicle. But the major attractions are the way it looks and the way it drives. The new Hyundai Tucson. Change is good.

Combined fuel consumption for the Tucson range: 4.6 - 7.6 l/100 km. Combined CO2 emissions for the Tucson range: 119 - 177 g/km. The 5-year unlimited mileage warranty is valid in all EU member states + EFTA. Warranty is subject to local terms and conditions. For taxi or rental usage model specific restrictions apply.

For more information, visit www.hyundai.com/eu

DOSSIER

I LCV Management

Quite a successful year so far At first sight Light Commercial Vehicles (LCVs) might not be as fancy and fascinating as typical passenger cars, and you will hardly find emotional commercials for this group of vehicles. Their image is very much in line with the usage type: it’s all about being practical and reliable with a good value for money. But don’t underestimate this segment.

The LCV True Fleet Market is very stable, accounting for more than one million new registrations per year, and it is in good shape at the moment.

T

he first five months of 2015 have shown a very positive trend for Light Commercial Vehicles (LCVs) in the European True Fleet Market. LCV in this analysis means the sum of all LCV registrations up to 3.5 tons, even if it might be a typical passenger car-based model and as long as it is registered as a LCV.

On the other hand the decline in Poland (- 48 percent) seems dramatic, but that is not the case since you have to take into account a very unique and temporary situation. As you may remember the chance to save taxes by registering passenger cars as light commercial vehicles was heavily used in Poland.

Within the European markets two countries will probably grab your attention: Spain and Poland. Spain is reporting a veritable recovery with a growth in LCV registrations of 46 percent over Jan-May 2014. That also means that Spain is back in the Top-5 behind France, the UK, Germany and Italy.

This pushed the LCV market to a (somewhat unrealistic) growth of 49 percent (2014 vs 2013) and started to ease in the second half of 2014. Therefore Poland fell back behind Belgium, the Netherlands and Sweden in 2015 again.

LCV Market Europe Jan-May 2015 vs. Jan-May 2014, countries sorted by volume

+ 46% 30%

25%

+

20%

4.9%

15%

EU-16

10% 5%

+

2014

8.5%

-5%

EU-15

-10% -48%

Without Poland

FLEET EUROPE # 78

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DOSSIER I LCV Management

Overall the sum of the major 16 European Markets grew by 4.9 percent up May 2015 despite the massive decline in Poland. Without Poland the increase is even more impressive at 8.5 percent.

The main drivers (regarding volume) for this positive result are the United Kingdom, Germany and Spain. So let’s take a closer look at these.

The United Kingdom: a record May 2015 In May 2015 almost 20,000 new LCVs were registered by fleet customers. This is the best May result ever. The same applies for the year-to-date period, and the y/y growth rate of +22.6 percent is only beaten by Spain.

The top four brands, Ford, Peugeot, Opel/Vauxhall and Volkswagen all showed a very strong performance with growth rates of more than 24 percent for the first five months. Citroën (5th position, +12.8 percent) and Renault (7th, +30.2 percent) achieved remarkable results as well.

The already published figures for June 2015 confirm this positive trend with a growth rate of 23.0 percent which extends the y/y increase to 22.7 percent.

Germany: Volkswagen and Mercedes in a dominating position The German LCV market shows a different picture regarding the top brands. Volkswagen (29.9 percent) and Mercedes (22.9 percent) dominate the market and represent more than half of it. Ford follows in third position with a remarkable growth of 85.5 percent over Jan-May 2014. Renault, ranking number four, was very consistent, achieving exactly one single registration less than in the first five months of last year!

Opel pushed its volume by 10.0 percent and climbed one position in the brand ranking. This increase is almost exactly the same for the LCV fleet market in total (+ 10.1 percent).

LCV Market Germany Jan-May 2015 Others

LCV Market UK Jan-May 2015 5.6%

Others

Ford

6.7% 13.2%

Mercedes

8.3%

12.6%

10.5% 11.8%

12.4%

Peugeot

Opel

Market leader Ford was able to extend its share by one percentage point to 21.2 percent. The brands at position two to five were all quite close with market shares between 12.6 percent (Peugeot) and 10.5 percent (Citroën) respectively.

This year Volkswagen is really gaining ground. Coming from a market share below ten percent in 2006-2008 and a very consistent share around 10.2 percent and 10.5 percent in the period from 2009 to 2014, the German manufacturer reached its highest share in the British LCV fleet market ever with 14.4 percent in April 2015.

Ford’s midsize LCV model Transit Custom is (again) #1 in the UK followed by the Opel Vivaro which was “only” number four in Jan-May 2014 and which has reported the highest growth by volume overall YTD 2015. The third place on the podium was occupied by the Mercedes Sprinter in front of two smaller city vans, the Peugeot Partner and Citroën Berlingo.

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FLEET EUROPE # 78

22.9%

Renault

Citroën Volkswagen

29.9%

6.4% Opel

21.2%

23.2%

Volkswagen

15.3%

Fiat

Ford

Mercedes

The two most successful models are quite close together. The Mercedes Sprinter and Volkswagen Transporter achieved a market share of 14.1 percent and 13.9 percent respectively, followed by other Volkswagen and Mercedes models (Volkswagen Caddy, Mercedes Vito and Volkswagen Crafter). A huge improvement was registered by Ford Transit in sixth position (Jan-May ’14 rank number 13) and an increase by than 150 percent.

The Top-10 is completed by the Ford Transit Custom, Fiat Ducato and Opel Vivaro.

In January and February 2015 Ford scored its highest market share since January 2004 and has thereby set itself apart from its competitors Renault, Opel and Fiat over the last twelve months.

Spain: back in business with small LCVs The Spanish LCV fleet market is impressively recovering with more than 27,000 new registrations from January to May 2015 (+ 45.5 percent). This figure is well above the level of the last six years. And June registration figures are promising as well, pushing the y/y growth to 48.4 percent!

The breakdown by brands shows yet another picture compared to the UK or Germany: Renault is market leader in Spain with a share of 21.7 percent, which is over three times as high as in the countries mentioned above. Only in its home market France was Renault able to achieve a higher share. With 25.7 percent in May Renault reached its best result since September 2011.

(Graph 1) LCV Market Russia Jan-May 2015 0%

10%

20%

30%

40% GAZ UAZ LADA

LCV Market Spain Jan-May 2015

FORD

Others

FIAT Renault 21.7%

29.4%

MERCEDES VW

12.4% 6.2% 11.2%

8.7%

Volkswagen

Citroën

PEUGEOT

10.4% Ford Fiat

ISUZU

Peugeot CITROËN

Citroën, Ford and Peugeot recorded a double digit percentage share as well. The strong performance of the French manufacturers is partly due to the fact that Spanish fleet customers usually prefer smaller LCV models. The ranking is led by the Renault Kangoo, Citroën Berlingo, Peugeot Partner and Dacia Dokker.

The Renault Master, in fifth position, is the first midsize LCV and is followed by yet another group of city vans (Ford Transit Courier, Volkswagen Caddy and Fiat Fiorino).

Side glance at Russia The decline of the Russian car market is really massive.

Not only for passenger cars, but for light commercial vehicles as well. Year-to-date May 2014 Russia was the sixth largest LCV market in Europe behind France, the UK, Germany, Italy and Poland – although Poland was heavily pushed by that time by passenger cars with an LCV registration. Currently Russia has fallen back to 10th position due to a drop in registrations of 30.1 percent.

Compared to Western Europe the ranking in Russia might look a bit unfamiliar. GAZ (with a market share of 39.5 percent), UAZ (32.5 percent) and Lada absolutely dominate the market. Another big difference is the fuel type split. While usually more than 90 percent of all new registered LCVs are equipped with a Diesel powertrain, Russian fleet customers prefer petrol engines – which is understandable taking into account the rough climatic conditions with very long and cold winters (Graph 1).

OTHERS

by GAZ Next (the successor of Gazelle), Lada Largus (in Western Europe known as Dacia Logan MCV) and Ford Transit.

Top 3 LCV fleet models in Russia

Gazelle

3909 combi

2206 passenger bus

Outlook It is not an easy task to forecast the future outlook on the LCV market since this is very much dependent on regional and local conditions. But there are several indicators of a growing demand for this type of vehicle.

Direct deliveries to consumers in urban areas are definitively on the rise. The changing business-to-customer pattern (e-commerce, home delivery, etc.) leads to an increase in demand for flexible vans. Today, carriers and logistics companies are already switching to transporters which are light, agile and do not require large parking spaces but are able to carry up to 3.5 tonnes at once. These kinds of LCVs will increasingly take over the work of heavier trucks. ■ Michael Gergen Dataforce

The most successful models in the first five months 2015 are the GAZ Gazelle, UAZ 3909 and 2206 followed

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Always the first to arrive.

To set things up.

Party hard. Work harder. The Sprinter - 20 years of innovation leadership.

A Daimler Brand

With groundbreaking innovations such as the standard Crosswind Assist, COLLISION PREVENTION ASSIST and Blind Spot Assist, the Mercedes-Benz Sprinter has been setting milestones around the world for 20 years. The custom model Edition Sprinter is entirely in keeping with this tradition. Find out more at www.mercedes-benz.com or from your Mercedes-Benz partner.

Fuel consumption urban/extra-urban/combined: 13.5 -7.4/7.8-5.7/9.9-6.3 l /100 km; combined CO2 emissions: 258-165 g/km; *Figures do not relate to the specific emissions or fuel consumption of any individual vehicle, do not form part of any offer and are intended solely to aid comparison between

Efficiency class: D - A.* different types of vehicle.

DOSSIER I LCV Management

New for your fleet More ‘city slicker’ and less ‘country bumpkin’ than ever, light commercial vehicles now boast improved comfort and safety features worthy of passenger cars.

B

y claiming their share of the electronic equipment developed for passenger cars, modern light commercial vehicles (LCVs) now offer a string of impressive comfort and safety features. What’s more, this does not prevent them from significantly reducing their average consumption, thanks to the engine developments required by the arrival of the Euro 6 standards.

1 - Mitsubishi L200 In addition to upgrading its style and equipment, the fifth generation Mitsubishi L200 is driving down its environmental impact: its minimum CO2 /km emissions have been cut from 199 g for the outgoing generation to 169 g/km for the model making its way to the dealerships.

2 - Volkswagen Transporter T6 The highly anticipated Volkswagen Transporter T6 stands out due to its very extensive safety features, available as standard or as options: Driver Alert, Front Assist, City Emergency Braking System, Adaptive Cruise Control… In addition, its new 2.0 TDI Euro 6 comes in a wide range of power versions: 84/102/150 and 204 bhp.

3 - Hyundai H350 For its arrival on the highly competitive vans segment in Europe, Hyundai is vying for attention by giving its

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1 - Mitsubishi L200

2 - Volkswagen Transporter T6 brand-new H350 a 3-year factory warranty – with no mileage limitation. A unique offer on the segment that should appeal to customers looking for a minimal TCO. 4 - Renault Oroch Based on the Dacia Duster, the first Renault pick-up, dubbed Oroch, is earmarked for the countries of Latin America. It is set to be joined in 2016 by a second, larger Renault pick-up (sharing its platform with a Nissan model). Ultimately, these two models could also be sold in Europe.

3 - Hyundai H350

4 - Renault Oroch

5 - Volkswagen Caddy

9 - Citroën Berlingo 5 - Volkswagen Caddy Following the launch of the new Caddy (4th generation), Volkswagen is already selling the longer, Maxi version. Extended by 47 cm (including 32 cm to the wheelbase), this version offers a maximum load volume of 4.7 m³, compared with 3.2 m³ for the short wheelbase Caddy, and a maximum payload capacity of 1,005 kg.

6 - Peugeot Partner

6 - Peugeot Partner Taken back to the drawing board and now flaunting a new, more modern front-end design, the popular Peugeot Partner benefits from mechanical improvements prompted by the adaptation of its engines. It has seized the opportunity to lower its CO2 /km emissions to an all-time low of 106 g in its 110 bhp 1.6 BlueHDI version.

7 - Fiat Doblò Cargo Given a facelift at the start of the year, the Fiat Doblò Cargo has been endowed with better engine performances (an average 20% reduction in CO2 emissions) and a new front-end design. The Doblò Cargo offers the most complete range in its class with four body versions (Cargo, Combi, Work Up and Flatbed), two heights and two wheelbases.

7 - Fiat Doblò Cargo

8 - Opel Corsavan

10 - Ford Tourneo Courier

8 - Opel Corsavan The next-generation Corsa is already available as a utility vehicle. This professional version inherits the same long list of safety features (Side Blind Spot Alert, Traffic Sign Recognition, Lane Departure Warning, Forward Collision Warning, etc.) and also comes with a payload capacity of about twenty extra kilos compared to the previous Corsavan, taking it to 571 kg.

9 - Citroën Berlingo The restyled Berlingo offers a new front end and fine-tuned engines.

But it is still available in two different lengths and offers a maximum useful volume of 3.7 m³, accommodating two europallets. Professionals will also appreciate the possibility of keeping the modular bench seat that can accommodate three people.

10 - Ford Tourneo Courier Ford is modernising its Transit Connect and is offering it with new engines and automatic transmission.

The utility vehicle also features new driver assistance technologies never seen before in this segment and the SYNC 2 connectivity system. As an ‘eco’ model, Ford is offering the Transit Connect Econetic 1.5-litre TDCi with an average consumption that falls to 3.8 L/100 km, giving CO2 emissions as low as 99 g/km. ■ Jean-François Christiaens

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DOSSIER I LCV Management

LCV Manufacturers: All vans on deck Commercial vehicle sales are an excellent yardstick for the economic mood, so the fact that LCV sales across the EU have increased for 22 months in a row is good news indeed – not just for the economy, but also for the LCV segment itself.

Fleet Europe’s annual OEM survey, this time zooming in on LCV manufacturers, shows a clear focus on the part of most OEMs. Fleet-focused product and service development are the driving force behind their business strategies. In particular, their answers to our questions reveal an interest in developing a broader range of tailor-made solutions and integrating connected services.

The goal: enhancing real-time fleet management, and improving communication with the drivers. And there’s more. To find out what the major LCV manufacturers have in store for you, all you need to do is read on… ■ Frank Jacobs & Steven Schoefs

Fiat Professional

In the first half year of 2015 over 854,000 new LCVs were registered.

end of 2016. Next year will see the introduction of the new Fiorino, a replacement for the Scudo and a new model in the 1-ton pick-up segment, a popular segment in Africa and the Middle East, but with potential in Europe as well.

Organisation

Fiat Ducato

Current offer

• Punto Va, car-derived van, 2012 • Panda Van, car-derived van, 2012 • 500L Business, car-derived van, 2012 • Fiorino, small van, 2013 • Doblò, panel van, 2015 • Scudo, small van, 2011 • Ducato, LCV, 2014 • Strada, pick-up, 2013

New models 2015 / 2016 Following the facelifts for the Ducato and Doblò, Fiat will complete the renewal of its LCV range by the

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Each of Fiat’s national sales companies has a local structure designed to handle fleet demands at a national level, as close as possible to the customers. Additionally, Fiat has at the national sales level Key Account Managers who are specialised in LCVs and dedicated to customers who have large LCV fleets (such as the postal sector, cold transports, etc.) But Fiat also has International Key Account Managers who are specialised in LCVs and dedicated to multinational corporate customers.

15 %

Ambition

As analysts predict a 15% growth of the LCV market over the next 5 years, Fiat is eager to seize this opportunity – hence also the

innovation of its entire LCV range, to be completed next year. As the key driver for its future success in the LCV market, Fiat is banking on maximum efficiency. This is to be realised by a varied range of driving aids (such as Traction Plus), connection systems (e.g. the Gateway fleet management system), ergonomic design features, engine specifications and tailor-made customer-oriented solutions.

Innovation Convinced that the key to positive brand perception is specialised care, Fiat is expanding MOPAR, its reference brand for services, customer care, genuine parts and accessories for all Fiat (and Chrysler) models.

“Fiat Professional vehicles not only are designed for TCO, but also answer any corporate fleet need thanks to the widest and complete vehicle range in the market.”

- Fiat Professional’s USP

DOSSIER I LCV Management

Ford

36 %

ensure the purchasing requirements of its customers are met.

Ambition

Ford is ambitious when it comes to growing its global LCV market share. In Europe alone, that share increased by 36% in 2015 versus the previous year, lifting Ford from the 7th to the 2nd place in the commercial vehicle brand rankings across Europe.

Innovation Ford Transit Courier

Current offer • Transit Connect, LCV, 2013

its LCV lineup, but for competitive reasons it does not release information on future product releases.

• Transit Custom, MCV, 2012

Organisation

• Transit Courier, LCV, 2014

For its international customers, Ford handles commercial vehicle requirements in much the same way as passenger cars, with both regional and global sales teams supporting local fleet teams to

• Ranger, MCV, 2012

• Transit, MCV, 2014

New models 2015 / 2016 Ford has a policy of continuous improvement which also applies to

Hyundai

Ford expects to increase its SYNCbased services, which enable fleet operators to verify that their drivers are operating their vehicles in the safest manner possible.

“A full range of class leading CV’s backed up by an extensive Ford dealer service network keeping our customer vehicles on the road.” - Ford’s USP the aim is to offer tailored support to fit customers’ needs.

Ambition

Hyundai H350

Current offer • H350, large van, 2015 • H-1, medium van, 2011

New models 2015 / 2016 Hyundai has just launched the allnew H350 this year. As the first new competitor in the large van segment in Europe for several decades, the H350 has been tailored to the needs of the most demanding LCV operators, aiming for high standards in efficiency, loading capacity, safety,

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reliability and performance. Also this year, Hyundai improved the H-1 with a series of revisions that include new navigation and audio systems, redesigned 16” alloy wheels and an upgraded instrument panel.

Organisation

Hyundai is structured to handle international fleet demands either at single-market level or with the central support of its European HQ Fleet team, in coordination with the relevant markets. In either case,

In recent years, Hyundai has steadily grown its fleet business in Europe, particularly in true fleet sales. As its enhanced LCV family now provides greater choice for European Hyundai customers, there certainly is potential for growth. The brand’s approach to international LCV fleets stresses partnership, proactivity and added value – also via the value added by its Fleet teams and Fleet Business Centers.

Innovation Hyundai expects to offer increased penetration of telematics and digital services to fleets, improving efficiency and productivity and thus reducing journey times, operating costs, etc.

“Three years unlimited mileage warranty for all LCVs sold in Europe.” - Hyundai’s USP

market teams to follow national

Iveco

tenders, and a dedicated team for specific bus tenders.

Ambition As the international fleet business is becoming more and more global and cross-region-oriented, Iveco’s International Key Account department aims to be fully organised as such to meet those complex and global requirements.

Innovation Total Cost of Ownership (TCO) and

Iveco Daily

its components, including uptime,

Current offer (available in several motorisations, weights and versions, including windowed van, panel van, minibus, chassis cab, etc.)

8-speed automatic gearbox; the Daily 4x4, ideal for rugged terrain; and the Daily Electric, aimed at urban mobility. In 2016, Iveco will present the brand-new Euro 6 engine line-up for its LCVs.

New models 2015 / 2016

Organisation

• Iveco Daily, LCV, 2014

This year, Iveco is launching the Daily Hi-Matic, with an exclusive

Iveco has a dedicated central team to handle international tenders, local

Mercedes-Benz Vito

• Citan, small van, 2012 • Vito, mid-size van, 2014 •V -Class/Marco Polo, mid-size van, 2014 • Sprinter, large van, 2013

New models 2015 / 2016 This year, the new Vito Product Range will be fully available.

Organisation Mercedes-Benz is completely dedicated, across all business units,

etcetera, will become even more important in the future.

“Iveco Daily is the vehicle that grants the optimized solution in terms of Total Cost of Ownership.”

- Iveco’s USP itself, to be achieved in the coming years. Specifically, the brand aims to double its sales volume in fleets by 2020. The LCV business is a substantial part of this ambition, and the brand realises this requires special care. Together with its LCV customers, Mercedes-Benz develops tailor-made solutions that best suit customer needs, provide them with a competitive edge and help both them and the manufacturer gain success in the market place.

Mercedes-Benz Vans

Current offer

maintenance and repair contracts,

to establishing a close cooperation with its customers and generating benefits for them by the expert advice of their specialised International Key Account Managers. The extensive worldwide sales and service network offers high levels of support and also aims for best possible solutions for financing the vehicles.

Innovation

Ambition

lever for our customers to gain

Mercedes-Benz Vans create customised solutions to ensure a onestop shop proposition, also for fleet management issues.

2020

Mercedes-Benz aims to increase its global business and as such has set ambitious targets for

“The best solution from expert to expert is the most powerful efficiency and profitability.”

- Mercedes-Benz Vans’ USP

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DOSSIER I LCV Management

Nissan

20 %

Key Account Managers aiming to go further in the conquest of major European fleets, Nissan expects 20% of its LCV fleet sales to be generate d by international clients.

Innovation

Nissan NV200

Current offer

Organisation

• Navara, Pick-up, 2005 • NV200, Car-Derived Van, 2009 • NV400, Heavy Van, 2010 • eNV200, Car-Derived Van, 2014 • NT400 Cabstar, Truck, 2014 • NT500, Truck, 2014

Nissan Europe LCV is organised around a Central Dedicated Team, which coordinates Regional Business Units (RBUs) which distribute vehicles and services via a third-party Network.

New models 2015 / 2016

Over the past 18 months, Nissan Europe has doubled its international fleet contracts, and 30% of the brand’s international clients have LCV fleets. With dedicated International

Ambition

The all-new NP300 Navara, which will be launched on the European pick-up market in early 2016, will come with a 160,000-km warranty.

Nissan expects large improvement in the TCO of LCVs due to CO2 reductions, as advanced technologies are adapted from passenger cars. It also foresees whole fleet-management through integrated telematics, and an increasing breadth and depth of conversion possibilities. Nissan itself is currently implementing telematics, car-sharing and new extended service contracts with very flexible finance solutions throughout Europe.

“A full LCV range (including an eV van) from pick up to Trucks, together with TCO reduction thanks to a five-year, 160,000 Km warranty on the whole Nissan LCV range and a unique market-leading EV van with E NV 200.” - Nissan’s USP

Ambition

Opel

Opel’s LCV offer is supported by the brand’s recently launched fleet service, Opel FlexCare, which has been launched in 18 countries across Europe with the ambition to help keep fleets mobile and provide reassurance for fleet managers.

Innovation

Opel Combo Cargo

Current offer

Opel offers products across the entire LCV segment, with a wellbalanced price/value proposition and excellent TCO for all its customers.

New models 2015 / 2016 /

Organisation

Both across its markets as well as in its headquarters in Russelsheim,

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Opel is working closely with its committed pan-European dealer network, which aims to offer the brand’s fleet customers an extra level of service. Opel can offer one of the biggest networks across Europe, so that it is always close to its customers.

In addition to that, Opel customers also have access to the worldwide General Motors network.

FlexCare offers Opel’s fleet customers three levels of support for the fleets, including LCVs. The Base package includes Opel Extended Warranty (for an additional 1-3 years over the standard two-year manufacturer warranty) and Opel Roadside Assistance. FlexCare Plus adds Opel Service based (on mileages of 30k and 40k) in addition to the Base package.

FlexCare Max provides maximum protection by adding Opel Wear & Tear Repair with protection of free replacement parts typically prone to wear, such as brakes or headlight bulbs.

40,000 “Not just our excellent product lineup, but our people and our approach to our customers.” - Opel’s USP

PSA Group

in 2016, but no information on that subject is being released yet.

Organisation

• Peugeot Bipper, small van, 2014

PSA is aware that a significant number of large international companies are in the process of centralising their procurement via professional sourcing teams that look for a correspondingly global outlook and mandate in their supplier organisations. Which is why PSA created PSA Corporate Solutions International, a central hub of 20 experts who will act as the single point of contact for PSA’s international customers and partners. That international team is supported by 400 National Key Account Managers and 1,500 points of sale dedicated to B2B customers, across 160 markets.

• Citroën Nemo, small van, 2014

Ambition

• Peugeot Expert, small van, 2012

In Europe, PSA is market leader in LCV sales, with a share of 20.3%. It obviously aims to maintain its leadership in the coming years, by continuously enhancing the expertise of its sales teams, informing customers and partners on its product range and

Peugeot Partner

Current offer

• Peugeot Boxer, LCV, 2014 • Citroën Jumper, LCV, 2014 • Peugeot Partner, panel van, 2015 • Citroën Berlingo, panel van, 2015

• Citroën Jumpy, small van, 2012

New models 2015 / 2016 The new models for 2015 have already been launched (see Current Offer). There will be a new LCV launch

Current offer

Renault’s Corporate Sales Division is committed to provide its fleet customers with a global one-stop shop for contract negotiation. The team is organised to fit the needs of its corporate clients, with 14 International Key Account Managers supported by over 70 Key Account Managers at the national level and scores of Renault fleet teams at the local level. The organisation is designed to effectively reduce global customer TCO, easily extend contracts to new countries and vehicles, systematically update clients on new products and perform benchmarks.

• Kangoo, small van, 2013

Ambition

• Trafic, LCV, 2014

Renault has been a leader in the European LCV market since 1998, and also occupies leading positions in the Eurasian, Asia-Pacific and AfricaMiddle-East-India regions (while coming third in the Americas). The brand aims to grow its LCV business across all regions, to become the #2 global European LCV brand by 2017.

Three targets should help Renault reach that point: repositioning LCV

Renault Master

• Master, LCV, 2014 • Dokker, MPV, 2012

New models 2015 / 2016 Launched at the 2015 Buenos Aires International Motor Show, the Duster Aurochs, an SUV pickup, spearheads Renault’s offensive on the huge South American pickup market.

Innovation

Via Peugeot and Citroën Connect Fleet, PSA integrates telematics boxes into its LCVs to provide a specific and clear telematics offer that allows its corporate customers to make important savings (on mileage, fuel, CO2, etc.) and offers them an enhanced range of services (including ecodriving, geo-location, etc.)

1,500

Organisation

Renault

of course by improving the quality, durability and versatility of the products themselves. PSA is also rolling out a series of Connected Services dedicated to LCVs, allowing its B2B customers to better monitor their fleet spend and the behaviour of their drivers.

#2

“Combining the strengths of our three brands – Peugeot, Citroën and DS – provides one of the widest ranges of products and services on the market, delivering for our corporate customers best-in-class TCO, enhanced Driver Satisfaction and an optimised CO2 footprint.” - PSA’s

business as a pillar of profitability, growing global LCV market share from 3.1% in 2014 to 3.8% by 2017, and increasing the weight of LCV sales outside Europe from 29% to 41%.

Innovation Renault will continue to open new Pro+ dealerships throughout the world, increasing their number from 540 now to 700 by 2017. These provide professional customers with a one-stop shop for all all the products and services in sales and after-sales.

LCVs will be included in the vehicle types sold through the Pro+ network, which will also provide financing solutions adapted to corporate needs.

“Since 1999, we have developed best practices to provide high quality advisory services to our corporate clients. Over 160 multinational companies around the world already enjoy the simplicity of a single global contact, and local implementation expertise.” - Renault’s USP

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DOSSIER I LCV Management

New models 2015 / 2016

Volkswagen Commercial Vehicles

The Caddy 4 and Transporter 6 have been launched in 2015.

Organisation VW has a centralised department for Fleet Sales in Europe, with a number of Key Account Managers specialised in three European subregions outside the German home market (e.g.

Western Europe) or in specialised fields such as LCVs.

Ambition

Volkswagen Transporter

Current offer

• Navara, Pick-up, 2005 • Caddy 4, A segment, 2015 •T ransporter 6, B segment (transporter), 2015 •C rafter CP, C/D segment (transporter), 2011 • Amarok, B segment (pickup), 2010

VW Commercial Vehicles has the ambition to constantly improve its products and provide a rapid response to customer needs, as witnessed by the fact that its new products have the lowest fuel consumption – thanks to VW’s new EURO 6 Engine concept – leading to the lowest TCO ever of any VW product. VW Commercial Vehicles also provides customised

special solutions by integrating bodybuilding work into its offer.

Innovation Car-Net is a mobile online service offered by Volkswagen specifically for commercial vehicles. Car-Net supplies van drivers with real-time information over the Internet, such as traffic situation, weather and low-priced fuel stations.

In addition, Car-Net mirrors selected smartphone apps onto the radio or navigation system. Additionally a fleet management solution for fleet customers is currently being tested in Germany.

“From ambulances to refrigerated vehicles, from hoists to towing equipment: our associates with longstanding professional experience offer you numerous tailor-made solutions for special bodies and conversions.”

- Volkwagen’s USP

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 international fleet solutions can be found at www.volkswagenleasing.de/internationalfleet

DOSSIER I LCV Management

The next big thing is Connectivity Predicting the future is tricky, but with so many experts pointing in the same direction, it’s hard to argue against connected driving as the next big thing in LCV management. But will the default inclusion of telematics in fleet management really increase safety and productivity, and by how much? Only time will tell.

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Michael Pflüger, Senior Manager International Fleet and Used Sales Operations at Mercedes Vans

“Connectivity most certainly will be the next big thing, as it will make it easier to optimise the complete process chain. By informing fleet managers of their location, state and load at any time, connected vehicles can avoid unfavourable routes, and their drivers can avoid unnecessary stress.”

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John Venstra, International Key Accounts Director EMEA Region at Iveco

Steffen Raschig, Director Commercial Vehicles at Opel

“The next big thing will be vehicle connectivity, in two ways. On the one hand, being connected to the vehicle through state-of-the-art infotainment systems, such as our award-winning IntelliLink technology. On the other hand, mobility services, as we are already providing with Opel OnStar.”

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Stéphane Chesnel, Head International Fleet Sales and Development at PSA

“Due to the emerging traffic regulations in big cities, the LCV market will require adapted vans, services such as car-sharing and telematics solutions, and new powertrain technologies.”

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“There will be a stronger focus on alternative fuels, with CNG, hybrid & electric powertrain solutions.”

Ponz Pandikuthira, Light Commercial Vehicles Business Unit Director at Nissan

“We will see the further electrification of LCVs, tailored for their application, together with increased driver-assistance features (autonomous drive) for reduced driver workload and improved safety.”

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Phil Hollins, Director of Commercial Vehicle Marketing at Ford of Europe

“We expect to see a rise in services related to driver connectivity and functions related to autonomy.

Features such as SYNC enable fleet operators to know their drivers are operating the vehicle in the safest manner possible. Features such as Active City Stop as available on Transit Connect for example, could help reduce accidents and keep valuable fleet vehicles on the road for longer.”

Adrian Porter, Fleet & Remarketing Director at Hyundai Motor Europe

“Although connectivity is already available in LCVs via telematics solutions from OEMs or external providers, the rapid evolution of connectivity, technology and available services will create the need for flexible solutions to be implemented both in the products and services offered to customers.”

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Bernd Heise, Head of Fleet Sales Europe at Volkswagen Commercial Vehicles

“The next big thing will be the successful launch of the Caddy 4 and the Transporter 6 in all European markets. The new models are fully adaptable to individual conversions.” ■ 8

Steven Schoefs

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DOSSIER I LCV Management

Trend-watch:

Forces shaping the future Have you heard about the next big thing that’s about to hit to the Light Commercial Vehicle business? You haven’t?

Don’t worry. We’ve talked to the industry experts and they’ve told us what you need to know.

I

nnovation and technological change are coming faster and more frequently than ever before.

Keeping on top of what's happening, where it's happening and what the impacts could be is almost an impossible task. To sharpen your focus we've reached out to the supplier experts and asked them to share their thoughts about the trends that are driving change.

What's the headline finding? The TCO still reigns, but delve a little deeper and it's clear to see that the scope of the TCO is not static.

The TCO is being optimised through consolidation, globalisation, connectivity and a one-stop-shop mentality.

Big picture thinking Joint ventures (JV) and industrial partnerships are a common trend for almost all LCV manufacturers says Fiat. The need to share the cost of innovation, reduce production costs and offer lower prices to customers is driving this trend. Pressure on prices has to be a good thing for fleet customers, right?

Fiat added that variations in LCVs are reducing. The unique selling point is moving away from the product and towards brand perception and the services that are offered by the OEM. This trend seems to mirror the broadening of the TCO boundary that we are seeing in the corporate fleet community. Fleet managers are seeking a big picture solution that can reduce operational costs, enhance company efficiency and boost the bottom line. The days when fleet managers assessed the TCO of an LCV in isolation from a company's core operations are well and truly over.

Fiat was the only OEM to tell us that product differences between manufacturers are declining. Given JVs and consolidation it is inevitable that differences will start to disappear, what's perhaps surprising is Fiat feeling

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Fit-out specialists are using new materials in order to create low weight installations that support payload efficiency and minimise fuel consumption.

comfortable to share this. Other OEMs may feel the same, but just don't come out and say it.

Renault told us that service is a key value add for its corporate customers. Its Pro+ dealerships provide corporate customers with a one-stop-shop set of products and services; both for sales and after-sales services.

With 600 dealerships in 39 countries, Renault, like other OEMs in the segment, is also taking its offer to an increasingly global audience. What's driving this behaviour?

Globalisation, the desire to explore new market opportunities and centralisation in corporate accounts.

Mercedes-Benz Vans has also found that its customers are increasingly asking for an OEM which offers a onestop-shop solution, regardless of whether it is national or international. That includes a strong sales network, a well-trained fleet sales force, a highly capable on-site service and, last but not least, support from national and international Key Account Managers. MercedesBenz Vans is pressing ahead with its ‘Mercedes-Benz Vans goes global’ strategy to exploit new market opportunities and meet the demands of its increasingly global corporate client base.

It's not just OEMs that are experiencing the trend to go global. Gruau, the conversion specialist, told us it’s important to have central points of contact for fleet hubs. Gruau says that through its fleet hubs approach it is able to target international fleet customers and meet their specific needs on multi-products and multi-brands in the shortest possible time.

Sophisticated and smart buyers PSA Group believes that corporate buyers are becoming more discerning and the market is increasingly sophisticated. This, it believes, is leading to increased investment and development in terms of products and technology.

Rising demand for quality, reliability and modularity, with high expectations of low fuel consumption and falling CO2 emissions, are what corporate fleets want according to PSA. This approach goes to show the holistic nature of TCO methodology and how it's shaping fleet decisions.

Fit out specialist Modul-System feels it too. It says low weight installations to maximise the payload and minimise fuel consumption are big issues for corporate buyers. Modul-System added that fleets are demanding non intrusive installations to maximise residual values.

There is also increased demand for racking systems to outlive a single lease period. This seems to suggest that buyers are paying more attention to the TCO of fit out than ever before.

Snoeks Automotive, the Amsterdam based light commercial vehicle conversion specialist, recognises this trend too. It says weight saving is driving demand for plastic lining and f.i. wheel arch covers. For its double cabin conversions Snoeks adds that it is also experiencing a growing need to provide convenience for the crew with pockets, headlights, 12v sockets and loudspeakers on its order books.

German fit out company Sortimo furthermore flags LCV downsizing. Urbanisation and the rise of the metropolitan market mean that operators are looking for smaller and cleaner vehicles in city centres, according to Sortimo. As a result, it's helping fleets downsize through smarter use of space with its racking systems.

We mustn't forget niche segments too. The broadening of the TCO agenda for LCV fleets is being felt just as strongly in specialist areas. Take refrigeration leader Lamberet. It told us that fuel costs linked to refrigeration is coming under increased scrutiny. In response, it's working on aerodynamics, better insulations, and lighter weight materials to meet both the financial and environmental aims of its clients.

Connectivity Connectivity is the word that's on everyone's lips.

Mercedes-Benz Vans says when fleet managers are informed of location, state and load of their vehicles in real time, then smart planning and better use of vehicle assets will be the natural next step. It could be transformational if the industry adopts the right mindset and takes action.

Snoeks Automotive states that there's still the perception that 'white van man' is behind the wheel, but in reality there are many highly educated engineers using LCVs. As a result of this the LCV has changed into an office or a crew shuttle with more specific requirements to meet the needs of the business.

Hyundai believes that change is on the way and we'll see increased penetration of telematics and digital services in the coming years. PSA Group tells us change is already here, and it's integrating telematics boxes in its LCVs with Peugeot and Citroën Connect Fleet.

Smart technology to optimise LCV deployment and boost driver performance behind the wheel is just one half of the LCV connectivity agenda. The other half is connecting up what's in the back of the LCV. Sortimo underlines that the automation of ordering processes and inventory control, alongside intelligent logistics, will play a huge role in increasing business efficiency. It's gearing up for the changes already. In the near future all of its BOXXes and shelving products will be equipped with NFC chips.

So what trends are you keeping track of? Keep your finger on the pulse. Not knowing what's going on - or choosing to ignore the writing on the wall - could prove to be very costly. ■ Jonathan Green

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New MOvaNO

we just woN Gold.

ANd GreeN. Gebrauchtwagenreport 2015 Gewinner seiner Klasse www.gebrauchtwagenreport.com

The Opel Movano is now officially a double winner: award-winning in the transporter class as vehicle with the best deKrA Mängelindex (deKrA fault index) in any mileage range in its vehicle class* and of the ‘Green Van 2015’ for outstanding eco-friendliness by the Verkehrsrundschau.

opel.com *Findings are based on vehicle inspection data from Germany.

Fuel consumption combined 9.5–6.7 l/100 km; Co2 emissions combined 249–176 g/km (according to r (eC) No. 715/2007).

DOSSIER I LCV Management

Regulation is no hurdle to LCV business and development We brought together Mercedes-Benz Vans’ Michael Pflüger, Senior Manager, International Key Account Management, and Thomas Johansson, Vice President of Modul-System, to talk about the future of the LCV business.

How will the market evolve in terms of number of suppliers and geographical scope of the industry?

Thomas Johansson: The world is shrinking and companies are centralising their operations. As they do this they’ll choose to partner with other centralised companies. It’s natural. And this trend will continue. We’ve sold products in approximately 50 countries so far and we’re expanding outside of Europe. We also know we can do much more for European fleets. We’ve got a strong offer.

Michael Pflüger: We are continuing with the ‘MercedesBenz Vans goes global’ growth strategy. The Sprinter was the first van to go global. The strategy aims to consistently expand the business of Mercedes-Benz Vans worldwide and looks to exploit additional sales potential in growth markets outside of Europe. The Vito will become the second global vehicle in our family of vans.

Do you think that clients know what they need?

M. Pflüger: LCV fleet business is a people business. We listen to our customers to understand their needs. Together we develop tailor made solutions that suit their respective needs and give them a competitive edge. It helps us to foster our mutual success in the marketplace.

T. Johansson: Our role is to support our clients to make money. We are here to help. After using our product for the first time we find that clients come back to us and want more. They have experienced what the product can do for them. Previous experience of a product or a system certainly helps buyers to understand the opportunities and cost. End users of a product offer important insights too. They are the ones that are using the product on a daily basis. It’s well worth talking to them about what works, what doesn’t and what could be made better.

Is it possible to have an international fitting agreement, knowing that regulations and local preferences vary?

T. Johansson: Yes, it’s possible. Europe has common standards, but they are interpreted differently. For a one size fits solution, a corporation can set a minimum racking specification that meets all the different interpretations and international arrangements. This policy can then be

Thomas Johansson, Vice President at Modul-System.

Michael Pflüger, Senior Manager, International Key Account Management at Mercedes-Benz Vans. applied across the fleet at an international level, in Europe or globally, and achieve consistency between countries.

In what way will stronger mobility regulations in city centres impact the development of LCV products and services?

M. Pflüger: Mercedes-Benz Vans is catering for the different needs of our different customers within their specific market environments. Mobility regulations in city centers, as we know from London, are no hurdles to our product development.

T. Johansson: Businesses will always find an alternative to meet the needs of their customers. Whether that’s more efficient vans or switching from combustion engines to electric vehicles. We may also see business move out of the city and into the suburbs. ■ Steven Schoefs

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ALL-NEW JAGUAR XF

THIS IS NOT BUSINESS AS USUAL.

There is nothing usual about the All-New Jaguar XF. Its Lightweight Aluminium Architecture, extraordinarily efficient Ingenium engines, and the all-new InControl Touch Pro system with 12.3" TFT instrument cluster, brings state-of-the-art connectivity and unrivalled dynamic driving. Of course, the performance of Jaguar is very much business as usual.

JAGUAR CARE 3-year unlimited mileage warranty, servicing* LOWER EMISSIONS From 104 g/km CO2 HIGHER FUEL ECONOMY Up to 4.0 l/100km

jaguar.com/fleet-and-business

*JAGUAR CARE is valid for all new XF models in Austria, Belgium, France, Germany, Italy, Luxembourg, Netherlands, Portugal and Spain. Service pack contains all service-related labour and parts costs and does not include wear and tear.

Local market exceptions may apply to the servicing offer.

Official fuel consumption figures for the Jaguar XF in l/100km: Urban 11.9 – 4.8, Extra urban 6.7 – 3.6, Combined 8.6 – 4.0.

CO2 emissions g/km: 204 – 104; vehicle displayed shows optional equipment.

DOSSIER I LCV Management

The road to Euro 6 Light commercial vehicles (LCVs) were granted an additional one-year ‘bonus’ compared to passenger vehicles to comply with the Euro 6 emission standards. The deadline has now expired.

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nxious to limit pollution caused by road vehicles, the European Union has been setting maximum emission levels for various gases and particles since the introduction of the first Euro 1 standard in 1992. While heavy vehicles must meet specific abatement standards, LCVs, for their part, are subject to the same abatement model as passenger cars. The only difference is that they were given an additional year to comply.

In other words, unlike passenger cars, which have already had to meet the latest limits of the Euro 6 standard since 1st September 2014 to obtain a new approval, LCVs still have a few weeks to go. In addition, all LCVs that had already received European approval before that date will have an additional year (until 1st September 2016) to market them. It is only from that date that the ban on new sales of LCVs that fail to meet this famous Euro 6 standard enters into force in Europe.

Different limits Unlike passenger cars, which must meet the same criteria to be awarded the Euro 6 label, LCVs under 3.5 t are subject to different maximum limits according to their reference weight.

Between the first and the sixth generation of the Volkswagen Transporter, polluting emissions have been drastically cut.

The regulation thus comprises three categories of emission limits according to the vehicle’s reference weight: below 1,305 kg, between 1,305 kg and 1,760 kg and above 1,760 kg.

The main difference with the Euro 5 standard is that Euro 6 introduces a reduction in nitrogen oxide emission levels. This is a pollutant gas that irritates the respiratory tract and is primarily emitted by diesel vehicles. Given that the vast majority of LCVs on the European continent use this fuel, they are very much concerned. Nitrogen oxide emissions are being capped at 80 mg/km, cutting it by more than 50% compared to the Euro 5 standard.

Good to know • On 1st September 2016, sales of new LCVs that do not meet the Euro 6 standard will no longer be authorised in Europe.

• The Euro 6 standard imposes a maximum nitrogen oxide (NOx) limit of 80 mg/km. The Euro 3 standard introduced in 2001, the first that also targeted NOx, still authorised a limit of 500 mg/km.

• One litre of AdBlue purchased in conventional packaging costs about  1.5. However, its price may be considerably higher if it is topped in the dealership.

• The transition to the Euro 6 standard generally results in a higher engine torque (about 10%) and a lower ‘real-world’ consumption (about 20%).

AdBlue While the medium-duty and compact LCVs manage to meet these new requirements without inserting an additional filter, the largest models as a rule turn to the use of so-called ‘SCR’ (Selective Catalytic Reduction) filters. This filter makes it possible to convert the (harmful) nitrogen oxides into (harmless) nitrogen and water by spraying a liquid based on synthetic urea (known as AdBlue) into the exhaust system. This technology comes at a cost and also calls for the liquid to be topped up approximately every 20,000 km.

However, at the same time, the engines that meet the Euro 6 standards benefit from the latest technical developments, resulting, in most cases, in both a more generous torque (and consequently a higher gross weight) and a reduction of the ‘real-world’ average consumption. This has the effect of bringing down running costs and, depending on the legislation in force in some European countries, may also make the vehicle eligible for tax relief. Other countries even allow access to city centres that impose bans on the most polluting vehicles. ■ Jean-François Christiaens

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DOSSIER I LCV Management

Fit out:

Ready and raring to go When going to market for LCVs you’re not just buying a fleet of vans, but pitching for a specialised delivery system. Converters and fitters are the magicians that take vans and transform them, but they can only work wonders if fleet customers are clear about what they want.

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hen a passenger car leaves the factory gates that's pretty much it. Polished and shiny the next step is delivery to the customer. When an LCV leaves an OEMs’ production line it's a very different tale. The journey has just started. The next stop is with a converter and, or, a fit out company. Only when they have finished their work is the vehicle ready to hit the road and serve customers.

Buyers need to think holistically and act strategically when scoping out the tender specification for their service vehicles. Sourcing a van, working with leasing companies and contracting with converters and fit out specialists means there are multiple suppliers to manage throughout the process. And remember that the services offered by each provider are inextricably linked so it's important to look at the big picture. Joined up thinking and well-managed timelines are the order of the day.

Tell me more about the TCO So, what does the TCO methodology look like? Sorry, there's no one size fits all solution. Neither is there a simple specification sheet with criteria that can be ticked off one by one. There are as many TCO methodologies as there are conversion and fit out possibilities. So start from the beginning.

The first step is understanding what the business needs; not necessarily what it wants. Stakeholders are a rich source of information because they use service vehicles day in, day out. Listen to what they have to say.

The next step is marrying business needs with what's on the market. To help out we've talked to five convertors and fit out leaders to find out what advice they have when turning LCVs into fully functioning service vehicles. So, it's over to Gruau, Lamberet, Modul-System, Snoeks Automotive and Sortimo.

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Don’t think you know it all. Connect with the end users to hear what they have to say as they use the vehicles.

Modul-System With close to 50 years’ experience, Modul-System offers corporate clients racking and container solutions and conversion services.

Most common challenge for fleet managers Optimising the functionality of the solution is a constant challenge, as is keeping the weight of installations to a minimum. There’s payload limits to be observed, and cost and environmental factors to be considered too. Another increasingly common trend is for non-intrusive installations, which means less damage to the vehicle and higher resale values.

Advice for fleet managers Connect with the end users and operators to hear what they have to say. Be warned. It can be difficult to synchronize vehicle delivery to the scheduled installation scheme.

Often vans are delayed for the installation which requires re-scheduling. Or if the vans arrive too early or are picked up too late it creates parking problems.

Expansion plans Active in 50 countries and expanding outside of Europe, Modul-System has over 300 partners worldwide.

Gruau Group Multi-specialist, multi-brand and multi-site, Gruau is able to convert 48,000 vehicles per year. It offers 20 product lines including minibuses, luton vans, tippers, crew cabs, emergency service vehicles and mobile offices. With 12 locations in France, two in Poland, and one each in Spain, Algeria and USA, Gruau employs 1,080 people and has turnover of 204 million Euros.

Most common challenge for fleet managers Fleet managers expect to have standard products and standard assembly processes. The first vehicle must look exactly like the hundredth or thousandth.

Advice for fleet managers There is the temptation to go for the short term wins in

terms of costs or investments. This may affect the end customer’s quality of service or operations due to failing product quality in the long run. Gruau advises a solid investment from the start that guarantees TCO and re-sale values.

Expansion plans Gruau says it has followed an opportunist export policy with collaborations with manufacturers in African and the Middle East. And after actively monitoring of the US market since 2000, Gruau this year announced a partnership with major US up-fitter, KNAPHEIDE manufacturing Company.

KNAPHEIDE has 1,600 employees across 17 subsidiaries / assembly centres and a network of 240 distributors.

Lamberet Founded in 1935, Lamberet is a specialist bodywork manufacturer for refrigerated vehicles. Boxes and trailers, vans, platform-cabs and chassis cabs and bodies for rigids are amongst the vehicles that are in scope. Lamberet sells around 4,800 vehicles per annum across 37 countries in Europe and the Middle-East, has consolidated sales in excess of 140 million Euros and employs 850 people.

Most common challenge for fleet managers Fleet Managers have to understand that it is not possible to have one and the same price setting throughout Europe, as delivery costs for the vehicles and fit out costs vary by country.

Advice for fleet managers Buyers that focus on the price of the product alone can’t take account of the difference between a robust, high quality and industrial product, and a lower-cost alternative that’s not build to last. Also it is recommended to align the product quality on the ATP United Nation regulation which avoids taking any risk on the cold chain.

Expansion plans Lamberet covers Europe and Northern Africa, and has implemented a new distributor scheme for Canada and North America. The firm tells us it has the opportunity to establish itself in China in the coming years.

Snoeks Automotive Designs, develops, tests and produces products to provide a higher usability of LCVs. Based in Amsterdam since 1956, but operating all over Europe and beyond, its main product groups are crew van or double cabin conversions, bulkheads and partitions, and all kinds of load area finishing parts. Snoeks also develops fleet or OEM projects ‘on demand’.

Most common challenge for fleet managers There’s an ongoing battle to strike the right balance between quality and price. So, understanding what value looks like and how it’s created is critical to success.

Advice for fleet managers Ordering conversions when a vehicle arrives creates unnecessary and costly time delays, and should be avoided. Snoeks says it has created an automated system with many OEMs and van importers to co-ordinate the process.

Expansion plans Snoeks wants to be a world leader by 2020. In 2009 Snoeks supplied its first customers outside EU with deals in Russia and Australia. North American is being targeted next.

Sortimo For more than 40 years Sortimo has been manufacturing tailor made in-vehicle equipment. Sortimo International in Germany has nine subsidiary companies and 25 partner stations, is internationally represented in more than 35 countries in Europe and the USA and has more than 1,000 employees.

Most common challenge for fleet managers More and more fleets are looking for standardized crossnational racking solutions. This standardization is not always feasible due to local specifications regulations or other circumstances, and so having an experienced partner that can create standardized solutions is a plus.

Advice for fleet managers Making a van fit for purpose and optimizing performance means more than simply looking at the purchase price. More important is gaining a clear understanding of what the van is used for and how. This is pivotal to pulling together a business case focused on the true TCO. Expansion plans Sortimo says it wants to get closer to customers and is working towards breaking into new markets and expanding its sales network. ■ Jonathan Green

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NEW PEUGEOT BOXER HARD CRAFTED TO CRAFT HARDER

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One of the heaviest authorized load on the market with a loading capacity from 8 to 17 m 3 and a useful width of 1.42 m between the 2 wheels to optimize all of your loading maneuvers.

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DOSSIER I LCV Management

Telematics:

Track and Trace: what’s new in the market?

‘Strategic Outlook of Global Commercial Vehicle Telematics Market in 2015’ is the title of a study published by the Frost & Sullivan consulting firm in April. Here’s a key statistic from the study.

The installed base of commercial vehicle (CV) telematics was 14.7 million in 2014 and this number is projected to reach 37.9 million by 2020. Furthermore, North America and Europe will continue to lead telematics adoption in the near future, but the Chinese, Indian, and Latin American markets are growing rapidly, while the Turkish market will benefit from its proximity to Europe.

And here’s another report titbit: Although medium and heavy CVs are the leading revenue-generating segments at the moment, LCVs made up almost 60 percent of the telematics installed base last year.

That number will continue to increase thanks to Moore’s law.

Falling hardware prices means increasing telematics investment In 1965, a young American electrical engineering researcher predicted that the number of transistors on an integrated circuit would double every year. (In simple English: computer chips would double in power.) The researcher, Gordon Moore, went on to found Intel and his observation has underpinned the progress in computing for the last 40 years, from personal computers to laptops, smartphones and pretty much everything else with a computer chip in it.

Telematics has taken this term to heart and ‘track & trace’ is at the centre of all solutions.

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DOSSIER I LCV Management

“Hardware prices are expected to dip, encouraging fleet operators to invest in advanced telematics services”, said Frost & Sullivan Automotive & Transportation Research Analyst Gokulnath Raghavan introducing the company’s CV telematics report. “In fact, by the end of 2015, the pricing of both hardware and solution offerings will be restructured due to the influx of new business cases, lending further pace to market development”, he added.

That’s a point of view shared by Martin Port, founder of BigChange, a British company that enables businesses to manage and schedule their mobile workforces. He contends that the installation cost is now more expensive than the manufacturing cost of telematics hardware.

“The real game changer to the volume growth has been high fuel costs, accidents and the sharp reduction in hardware costs including a reduction in the cost of data”, he said in an interview. “I would estimate prices have dropped by £30 (40) a month per vehicle from £45 (60) a month in the late ‘90’s to £15 (20) a month per vehicle today.”

Another side effect of falling prices is rising expectations.

Telematics customers want more than just track and trace.

Beyond the basics and into business processes In the distribution and logistics world, “tracking and tracing” is the term for determining the current and past locations of a unique item or property. Telematics has taken this term to heart and ‘track & trace’ is at the centre of all solutions. Tracking and tracing delivers the real-time location of every vehicle in a fleet, which allows managers to adapt quickly to new developments and make informed decisions.

Informed decisions are the best decisions and they are even more critical during turbulent times. “Growth is slowing, capital is fleeing and the currency was already overvalued”, declared the Financial Times’ “Lex” opinion column at the beginning of August. Luckily, fleet managers can call upon telematics for help.

Global economic uncertainty is forcing light commercial vehicle (LCV) fleet managers to cut costs and extend their fleets’ lifecycles. While many players in the LCV market are looking for basic track and trace solutions, some are considering integrating so-called Fleet Management Solutions to help manage their business objectives and lessen risks.

“To widen their reach, telematics vendors will embrace big data technologies in order to provide business intelligence and prognostics solutions”, said Gokulnath Raghavan.

“Along with this, they should customize offerings to suit the needs of the specific industry, fleet, and region.”

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LCVs made up almost 60 percent of the telematics installed base last year.

Telematics tools have evolved from mere tracking of vehicles to improving business and asset management.

As the tools mature, blended solutions will incorporate complex, wide-ranging solutions that cater to all fleet sizes and business goals.

With Frost & Sullivan saying that LCVs made up almost 60 percent of the telematics installed base last year, one can expect a lot of activity in the sector from now on. But if LCVs represent a telematics upside, Big Data and Big Brother could be seen as the downside.

“Are we there yet?”

With companies seeking to integrate GPS data with operational activity, how can LCVs fleets, many of them unused to issues involving information overload and legal questions about implementing telematics, cope with the challenges? The best peer advice is to study the data and understand how improvements can be made so that managers and drivers can boost service, safety and growth.

The intelligent use of Big Data for comparing plans with activity can create powerful financial benefits. “But leaders have to demand managers to present the data on weekly, monthly and quarterly bases, linked to sales activity and costs to make the most of the information”, says Martin Port of BigChange. “Only by continually improving and identifying the opportunities can all the benefits sold by telematics companies be achieved.”

The fear of Big Brother disappears when you have a clear focus on the facts and the figures. It is then that the payback becomes apparent.

“Are we there yet?” is a question that’s been asked millions of times on countless road trips. When it comes to LCVs and telematics solutions, be they regular or lite, the answer is “Soon”. ■

Eamonn Fitzgerald

18 November I Sheraton Rome I ROME

The TCO equation when selecting Alternative Powertrains Since 13 years the International Fleet Managers Institute (IFMI) presents you with crucial pathways to enhance your performance as international fleet manager, through its training sessions, as a meeting place, and by stimulating innovation.

Are you a corporate fleet manager and does your job have an international scope? Then the IFMI’s educational programme is what you need!

2015 PROGRAMME > Webinar - Diesel or Petrol - Pick the right fuel for your fleet - 10 September 2015 For years diesel has been the preferred fuel of vehicle fleets across Europe, but recently questions have been raised about the possible cost-efficient integration of petrol vehicles. Discover the useful data and actionable information on updating the fuel component of your fleet management strategy. In this free-to-attend IFMI webinar fleet experts will share their knowledge and at the end of the webinar you can ask your questions during an interactive Q&A. > Full day session - The TCO equation when selecting Alternative Powertrains - 18 November 2015 The International Fleet Managers Institute (IFMI) has decided to devote the 1-day training session to share expertise and discuss do’s & don’ts of fleet management, whilst looking at the TCO concept, with a focus on the cost structure when alternative powertrain vehicles come into play.

Expert presentations, case studies from fleet managers and interactive discussion moments will teach you how alternative powertrain vehicles influence your fleet management, and what you can expect with regard to the future development and cost model of alternative powertrain vehicles. If you manage a corporate fleet with an international dimension and wish to learn about the TCO concept and its evolution regarding the choice of alternative powertrains, don’t miss this unique training!

For further information and to register with Early Bird fee, please visit forum.fleeteurope.com/ifmi Early bird fee: 495 € excl. VAT (until 30 September)

Organiser

With the support of

ADVERTORIAL I Fiat Ducato

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Today as never before, the Ducato addresses a global market and must prove itself up to the job in a wide variety of contexts, each more demanding than the last, improving its robustness and reliability.

A

ll this is achieved with careful and focused design, confirmed by more than 10.5 million km of tests covered over the years - both on the track in the most diverse and demanding road and usage conditions, and in the most extreme weather conditions.

Pure Italian style Your company image is enhanced and your drivers feel good…The new exterior style of the new Fiat Ducato is the result of state-of-the-art ‘car design’ which, together with the concept of a real light commercial vehicle, conveys a strong sense of dynamism, safety, quality and robustness. The new Fiat Professional vehicle further develops the concept of ‘design connected to functionality’ which has always characterised the model. The new features include the possibility of customising the appearance of the vehicle with a number of solutions: two different colours of the front grille, the skid-plate that enhances the lower part of the bumper, new headlights with integrated DRL (available upon request with LED technology) and new 16” light alloy wheels.

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Fiat Professional If you need a special conversion, or if you are a converter, the new Fiat Ducato is designed for you. For the launch of the New Ducato, the Fiat Professional brand is presenting a brand-new programme of collaboration with the world of converters: ‘Fiat Professional for Converter’.

The initiative aims to reinforce the position of the brand in the market of converted vehicles, a sector experiencing continuous growth: already in Europe, one vehicle in three undergoes conversion… From mobile workshops to vehicles with various bodies, from insulated vehicles to those with refrigerated chamber, from motorhomes for recreations to vehicles for public services.

Starting with the New Ducato – the recreational outfitting base used most extensively throughout Europe – companies specialising in conversions can become members of the programme and access all the information, guidelines and technical specifications that are essential for outfitting Fiat Professional vehicles in the most correct and straightforward way to achieve the highest possible quality.

Under the bonnet Whether you are a fleet manager, a company driver or an independent professional, you are looking for performance which combines fuel efficiency, ease of use and driving pleasure. The new Fiat Ducato has a range of Euro 5+ engines to provide exactly this combination.

The uprated 2.0 MultiJet 115 HP with 280 Nm of maximum torque (5-speed gearbox), represents the the

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A contemporary look – New Ducato is a shop window for its company and a pleasure for its drivers.

The dashboard of the new Ducato looks like a car, feels like a car, and is as connected as a car.

‘perfect downsizing’, economic and with excellent performance, especially in urban environments. Then comes the 2.3 MultiJet 130 HP, with 320 Nm of maximum torque (6-speed gearbox), providing the ideal solution for mixed use - agile in traffic, dazzling over long distances. And the fuel efficiency and CO2 emissions are simply amazing: 5.8 L/100 km (44 mpg) and 153 g/CO2 in the combined cycle.

top-of-the-range comfort level and by the new cup holder built into the central console.

For those needing more power, there is the 2.3 MultiJet 150 HP, with its 350 Nm of maximum torque (6-speed gearbox), and even the powerful 3.0 MultiJet: 180 HP, 400 Nm of maximum torque (6-speed gearbox).

TCO Durability, robustness and the consequent increase in the residual value, combined with efficiency, low running costs and a reduction in the price of spare parts,enable the new Ducato to boast maintenance and repair costs amongst the lowest in its class, a major contribution toward improving the ‘Total Cost of Ownership’.

On the inside On the inside the new Ducato offers three interiors – Classic, Techno and Lounge – with growing levels of refinement and elegance, characterised by new seats with stain-resistant fabric upholstery that maintain the

Connectivity The New Ducato is also the first vehicle to bring the segment the exclusive Multifunction Support available in the middle of all dashboards in the range and compatible with all devices such as smartphones, tablets and conventional pads of paper. All radios come complete with Bluetooth technology and MP3 player, and the Uconnect system with 5” colour touchscreen, reversing camera, built-in navigation and digital radio (DAB) playback is available.

Safety first For a fleet manager, keeping drivers safe is the top priority. The New Ducato demonstrates its cutting-edge credentials in terms of its offer of extremely high-tech content, thanks to state-of-the-art safety and driving assistance devices, as well as the new infotainment system. For example, all versions offer the electronic stability control (ESC) as standard. This has been improved through the roll containment system, to increase comfort and protect the load from unexpected motion, in conjunction with the load detection system (LAC), Hill Holder, anti-slip system (ASR) and electronic emergency braking assistance system (EBA). ■

FGA Capital Finance Solutions To support the launch of the New Ducato, FGA Capital – a finance company specialising in the automotive sector – has followed the concept proposed by the Brand, applying the concept of ‘a new generation at work’ to the world of Financial Services too. Whether a large, small or medium businesses or freelance professionals such as entrepreneurs and craftsmen, everyone can choose from the various outfits offered on the Ducato, thanks to the flexibility of the financial solutions provided by FGA Capital.

FGA Capital is now offering ‘EASY LEASE’, the new generation of leasing, which allows customers to benefit from considerable advantages: limited monthly instalments through deferring a part of the debt to the end of the contract; extremely flexible choice for clients at the end of the contract – they can keep or return their Ducato or replace it with a new one.

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DOSSIER I LCV Management

Still learning the ups and downs Vehicle manufacturers try to keep up as the requests for LCVs in Europe grows steadily. It’s not only about numbers, production equaling demand, but as well diversifying their LCVs to meet all our needs. While choice is nice to have it also can be confusing or distract you from your core requirements which could result in procuring the wrong vehicles. Michael Dana, International Fleet Manager of the Year 2015, shares some ‘tips and tricks’ that might help you make the right LCV choice for your business.

�

Check the country and local government policies.

The EU sets the minimum European requirements however these are often altered, strengthened, as they filter down to country and local levels.

2

Try to limit your alternatively fueled fleet to 3 choices if possible.

EV, LP and when appropriate the latest Euro norm thermic motor. This helps to keep your fleet standardized, which allows better data gathering and improves your fleet expertise on these models.

3

Try to stick to purchasing your alternatively fuel vehicles from an OEM. Many local registration offices do not recognize partial or entire non-OEM vehicles and homologating them can take several months. For example an after market company removing the power train of an OEM LCV and replacing it with their own alternative power components.

4

If you chose a non-OEM supplier do your homework first.

You could check their financial stability, that they fully understand the market requirements to include homologation processes and you might even ask for a client list. Benchmarking with other customers is always a great way to get a feel for the supplier.

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5

Make sure the supplier is using the latest technology and components available.

Older technology could be a sign of financial problems, a lack of interest or inflexibility. Technology is constantly changing and can be more expensive therefore if they aren’t using the latest on the market, ensure their reasoning is at least sustainable.

6

Make sure the OEM has a solid network of garages that corresponds to YOUR network.

This should be dense enough to support your route structure and include trained technicians and adequate parts supply.

7

Understand what fuel type applies to the location or country.

You might be limited to either liquid petroleum, diesel or gasoline so don’t get caught ordering the wrong fuel type LCV.

8

Consider the geographical territory where the vehicle will operate.

This could affect the horsepower and climatic packs you choose, whether it were cold or hot operating temperatures.

Michael Dana, International Fleet Manager of the Year 2014: “12 years and I’m still learning the ups and downs! There are hundreds of tips and tricks out there. Hopefully I’ve been able to add some new ideas to your portfolio in turn helping you to choose your next LCV.”

��

TCO As mentioned above make sure you calculate all the running cost to include insurance, fuel, repairs…etc. If the LCV is a new model to your fleet gather the manufacturer’s data and benchmark with other operators. Comparing mfr data against actual on road data will provide you a more realistic picture for TCO estimates.

�3 9

Always consider size.

You might be limited to a smaller volume LCV; however if operating constraints aren’t a factor I recommend buying bigger! It makes good financial sense growing into rather than out of an LCV.

��

Ask your clients what they need.

Make sure to involve them in the decision making process. This adds credibility to the choice and helps build a strong relationship. This can pertain to tire type, specific access permits, special security needs or package counters, installed in the cargo area.

��

Price is important but should not be the most important factor when choosing an LCV. Calculate your TCO over your company’s pre-defined depreciation period taking into account as much detail as possible. Some operational expenses might not roll up into your budget but they’re still paid with corporate Euros.

Up-fits Make sure your chosen up-fitter(s) are well aware of homologation and licensing requirements when adding after-market items to your LCV. This can include rear steps, folding check-ride passenger seats, shelving or bulkhead separations. Local authorities will not hesitate to ticket or impound your vehicle if the registration does not properly include the aftermarket items.

�4

Testing other manufacturer models.

Never hesitate to mix it up a bit. No one manufacturer is perfect nor produces the entire range you might need to support your operation. This is also a good way to keep your primary suppliers honest and providing the best service possible. Also you never know what you might discover.

�5

Having said that, standardization of your fleet is important.

Perform testing, see what’s out there but in the end keep your fleet of LCV’s simple. This might require changing suppliers or using slightly larger vehicles in some cases but adds more flexibility, for example if you’re required to transfer assets from one location to another. It also allows for easier maintenance practices and, if in-house maintenance is performed, reduces your parts inventories. ■ Michael Dana

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DOSSIER I LCV Management

8 Expert Tips & Tricks Fleet managers have been paying a great deal of attention to ensuring that their company cars are fit for the job and are as ecologically-friendly as possible. This initially led to a wave of ‘downsizing’ and then to what became known as ‘rightsizing’. These elements are often all the more relevant in LCV fleets.

S

o the tips of the managers of some of the largest LCV fleets in the world, are worth looking at… Chris Tinajero is Head of Global Category Team for communications giant Ericsson. He is based in Texas. Karin Meersman is Fleet Manager EMEA for technological and industrial company Johnson Controls, while Manoella Wilbaut is Global Head Commercial Developments, Automotive Sector for worldwide courier company DHL. In one of life’s coincidences, these two powerful ladies have offices no more than a couple of hundred metres apart on the same business park alongside Brussels Airport. ■

Vehicle selection

1

2

3

The selection of vehicles depends on a combination of multiple criteria: the distance traveled on a daily basis, the length of the trips, the availability of alternative fuel, the usage etc. Success much depends on finding the right fit. One size does not fit all. (Manoella Wilbaut, DHL) Once you put a service vehicle on the road – LCV, 4x4, heavy truck…

– you are probably going to have to live with that solution for three or four years. So getting the specification right from the beginning is critical. (Chris Tinajero, Ericsson) Sometimes a bigger vehicle or a more expensive specification can get more work done, such as fewer trips. So don’t be afraid to spend slightly more if it results in better performance. Make performance metrics equally important as cost metrics. (Chris Tinajero, Ericsson)

Fleet policy

4

5 Chris Tinajero, Ericsson

6

It is a good idea to create a company policy around LCV’s if there are a lot of them in the fleet, because many companies tend to have a really good car policy for management and benefit cars, but vans tend to be only very briefly mentioned. The do’s and don’s are a bit different from benefit cars. (Karin Meersman, Johnson Controls) The Green topic is just as relevant to LCV’s as to other vehicles, and it covers many areas: alternative fleet, optimized transportation models, sharing concepts etc. But beyond any specific technologies, sustainability is an art, it is about envisioning sustainable business practices over the long term. And therefore, quality is key. (Manoella Wilbaut, DHL) Have a ‘glocal’ approach which means that you can have a geographical (global or regional) policy, but you must understand that there are local needs. Make sure you understand what can be localized and what should be localized. (Chris Tinajero, Ericsson)

And not forgetting…

Karin Meersman, Johnson Controls

7

8 Manoella Wilbaut, DHL

The branding on company vans can be very visible of course, which makes driver behaviour even more important in terms of the company’s image. If a benefit car driver behaves badly it may not be liked by others, but they won’t necessarily know which company he or she is from. With a van, they do… (Karin Meersman, Johnson Controls) Any business alternatives need to be evaluated under strict quality criteria and through a consistent process. First Choice is our Corporate Quality Program but other very good ones exist as well.

(Manoella Wilbaut, DHL) Tim Harrup

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MANAGEMENT I Fleet Europe Forum 2015

Change in Fleet Management is inevitable, so get ready The automotive and fleet business will change more in the next 10 years than it has in the past 30.

You’ve heard that one before, and you’re right to be skeptical: it’s part truth, part wishful thinking.

How to tell which is which? Come to the Fleet Europe Forum, on 19 November in Rome!

Industry experts confirm: the outlook for corporate fleet management is remarkably positive. Vehicles are fuel-friendly, fuel is cheap, interest rates are low, residual values are stable, maintenance intervals are increasing. Nothing lasts for ever, though. The economy is cyclical. At least some of these positives will turn negative soon. And let’s not forget that other great variable: technology. Nobody can predict the impact of autonomous vehicles, connected driving, and new mobility allowances. One thing is certain, though: technology will profoundly change the relationship between driver/ employee on the one hand, and OEMs, lease providers and fleet managers on the other. This year’s Fleet Europe Forum (Rome, 19 November) will unravel ‘The inevitable transformation of Fleet Management’. Following expert presentations and panel discussions, this year’s Fleet Europe Forum will conclude with our yearly CEO Car Leasing Debate. I will be hosting that debate, and you can participate too! Send me your questions on the future of car fleet management and car leasing. I’ll put the best ones directly to the CEOs. Don’t miss this opportunity to be heard – and answered! ■ Steven Schoefs, sschoefs@nexuscommunication.be

REGISTER NOW Need more info on the Fleet Europe Forum?

Want to reserve your seat?

Visit forum.fleeteurope.com or contact Sigrid Nauwelaerts at Fleet Europe: snauwelaerts@nexuscommunication.be Tel: +32 4 387 87 77

The TCO equation when implementing Alternative Powertrains

Enhancing excellence in International Vehicle Remarketing

Celebrating excellence: the Fleet Europe Awards 2015

On 18 November, an International Fleet Managers Institute training session consisting of expert presentations, case studies and interactive discussions will examine the impact of alternative powertrains on your fleet’s cost structure.

Do you manage a corporate fleet with an international dimension? Do you wish to reduce the risks of driver behaviour for your TCO? Register now!

Integral to efficient fleet management, remarketing is subject to many variables: used-car value volatility, cross-border flows, digitisation, globalisation, taxation and regulation. The second edition of the Remarketing Forum will tackle the most pressing challenges of remarketing today and look for common solutions. Reserve your seat now!

On 18 November, the 2015 Fleet Europe Awards will celebrate excellence in international fleet management. International corporate fleet managers will compete in different categories and fleet suppliers will see their innovations rewarded. Last but not least, we’ll reveal the name of the 2015 inductee to the International Fleet Hall of Fame.

ifmi.fleeteurope.com.

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This 18 and 19 November, the 2015 Fleet Europe Event in Rome will tackle critical fleet management issues, and celebrate the 10th edition of the Fleet Europe Awards.

FLEET EUROPE # 78

http://for um.fleeteurope.com/ remarketing.html

MANAGEMENT I Case Study - Jan De Nul Group

“Our fleet, our calling card” Fleet management over at Jan De Nul Group has its own peculiarities. The company wholly manages its car fleet in-house with a special focus of attention going out to safety since forever and a day.

A

t dredging contractor Jan De Nul, the term 'fleet' is a concept that needs to be approached with some caution. Yes, the company is home to a lot of vehicles that move on land – including cranes, but it also has 'vehicles' that… are sea-faring.

And however tempting it may be to go into some detail about the many vessels (“the most modern and varied dredging fleet in the world”), just to be clear: we are focusing on the company's car fleet.

“All in all, we are talking about 690 vehicles”, explains Christof De Waele, the company's Fleet and Small Equipment Manager. “The bulk of these vehicles is made up of passenger cars, but the importance of our 176 buses, light duty lorries and trucks should not be underestimated. This mix cannot be viewed separately from the very nature of our operations.”

In-house fleet management “The management of our fleet is a wholly in-house affair”, fleet manager De Waele stresses. “First and foremost, this means we own all of our vehicles outright. Without exception, we do not do leasing. The answer to the question as to why is straightforward enough: the element of cost. I'm talking about our Belgian fleet. The situation for the vehicles used abroad is a little more complicated. In consideration of the needs of each job site, this produces a mix of direct management and lease cars.”

“But this in-house approach is also evident in another respect. We run our own workshop with our own service engineers to handle services and minor repairs.

Performing diagnoses or replacing things like engine water pumps are all things we are able to handle entirely by ourselves. Obviously this is only worth the investment if you've got a fleet of some substance, which is true in our case. So it'll come as no surprise that the fleet policy has been vested in our technical division. Albeit that the preparation of the car policy – admittedly in joint consultation – comes under the authority of Human Resources.”

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Christof De Waele: “In Belgium, we own all of our vehicles outright. The situation for the vehicles used abroad is more complicated. In consideration of the needs of each job site, this produces a mix of outright purchased and leased cars.”

Safety as a priority “Safety has always occupied a special place in our fleet policy”, Christof De Waele goes on. “In fact, this starts out as early on in the process as when we decide which vehicles to purchase, regardless of whether these are passenger cars or other rolling stock. In doing so, in recent years we've been going for cars with extra technical gizmos such as adaptive cruise control, pre-crash system, lane assist, fatigue detection, parking sensors and park assist…”

“And above all, we're keeping our carbon dioxide emissions low by keeping the age of the car fleet equally

“Utility vehicles too are our calling card” “What goes for passenger cars equally applies to utility vehicles”, Christof De Waele explains. “They are equally conducive to the company’s public image, which also explains why we very much focus on the tidiness of these vehicles. This is something a fellow timekeeper who visits the job sites keeps a very watchful eye on. Those out of line are suitably admonished.” “Who drives which utility vehicle depends on the type of task he has been charged with. Is he travelling alone, are there two people on board, or is he driving the whole team? The issue of the kind of equipment that is being transported is also particularly pertinent. We also have purpose-appointed job site jeeps. All in all, we’re talking about 176 vehicles that can be designated as ‘light freight’. To which a further 28 trucks should be added with pertaining trailer units.”

Jan De Nul Group is a leading global expert in dredging and marine construction activities, as well as in specialized services for the offshore industry of oil, gas and renewable energy.

low. Let's not kid ourselves: our cars are a calling card for the company. They contribute to the public image we send out. So this is definitely a factor in selecting makes and models. But as I was saying, the importance of safety is an equally major concern. Through, we know that we are doing alright in this respect. All in all, we have relatively few serious accidents, but when disaster strikes, we find that our vehicles are up to the job, meaning they provide proper protection for the drivers.”

“We have not quite got to the point where we've started laying on specific training courses such as safety driving or eco driving yet, which doesn't mean to say we're not looking into this. Our drivers are closely monitored: damage statistics, consumption monitoring, tyre wear, etc. are all elements that are recorded. A few years ago, all passenger cars were provided with winter tyres,

“Watchful eye and direct contact” “Proper fleet management demands short lines of communication. Nearly every morning, I go out and do the rounds of. If any anomalies are spotted, the matter is raised directly with the drivers concerned. Directly and without a big song and dance. Which is a lot quicker and more efficient than setting up all manner of procedures to deal with such cases.”

giving our cars enhanced traction under wintery road conditions and ensuring safety in the process. We're currently looking into All Season tyres.”

Restyled car policy “In the area of safety, 2013 has been a major turning point, as this was the year when we introduced a new and more comprehensive car policy on safety. It's true to say this was a fairly sudden change and I would be lying if I said it was readily adopted by everybody. But most staff understood how important it was to put this step in place. Especially as our fleet has doubled in size over the last ten years. Right now though, it's still too early to properly chart the effect of the new car policy.”

“Our fleet policy does not line up any really big changes”, fleet manager De Waele concludes. “We do have a number of avenues in mind that could be explored, but these exercises are still ongoing. Should we move towards more hybrid, electric vehicles? Our fleet currently has just three. Or could CNG prove useful for us? Which immediately raises the problem of fuelling stations. It is part of our company culture not to take rash decisions.

Whichever decision is made, it'll come further to due consideration of all the factors involved.” ■

Michaël Vandamme

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MANAGEMENT I Fleet Safety Corner

There’s value in LCV safety Van drivers are often portrayed as hot headed, rule breaking road hogs, but do they really deserve such a bad rap? Let’s finds out what the accident stats say about the drivers that everyone loves to hate.

Van drivers are a classic example of what sociologists refer to as ‘folk devils’; a group that other people see as the bad guys. But perhaps van drivers are being unfairly blamed for everything bad that happens on the highway. No, you don’t think so?

Well, prepare yourself for a shock. When it comes to road fatalities, the safety of LCVs is better than that of the entire vehicle fleet. Yes, you read that right. Data analysed by European Transport Safety Council (ETSC) unearthed this surprising finding late last year.

Even when parked up vans are more of a crash target – by more than 40 percent.

There’s statistics and there’s statistics Statistics though only tell part of the story. Putting some context around the stats gives a valuable insight into why van drivers may be involved in more collisions than other motorists.

For a start, professional drivers have a higher risk of being involved in a collision because most of their working time is spent on the road. They travel further, undertake more longdistance drives, and are more frequently to be found driving in tough conditions and in heavy traffic when the risk of collisions increases.

They are also more likely to be found driving in the evening when fatigue and tiredness are also likely to take effect.

LCV drivers are a massive 142 percent more likely to be involved in a crash when reversing.

But before you start singing the safety praises of your company van drivers, there’s some bad news for the LCV segment. The ETSC study also found that van drivers are twice as likely as passenger vehicles to present an accident risk to other road users when it comes to nonfatal accidents. Maybe the title of folk devil is fair after all.

Another study by insurance giant AXA, using more than 1.3 million police crash reports in the UK over the period 2008 - 2012, adds weight to the title of folk devil. It found considerable differences in risks posed by van drivers compared to all other motorists.

The AXA study found that van drivers are a massive 142 percent more likely to be involved in a crash when reversing. There also 39 percent more likely to be in an accident when performing a u-turn. When changing lanes it’s 36 percent more likely and when driving on a motorway it’s 19 percent more likely.

Add in greater prevalence than any other road users for tiredness, observation errors, distraction and unsafe driving, and it seems that the van driver should be crowned the king of the folk devils.

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And there’s more. Professional drivers are often under time pressure. Because of this they’re more likely to carry out distracting tasks like eating and drinking, and taking phone calls and reading texts and emails, whilst driving.

These facts are not offered up as excuses. Examining and understanding the causes of collisions means that solutions can be created to reduce operational road risks for LCVs and other road users. That’s one of the key roles of a fleet manager, right?

Improving LCV safety Accident prevention starts with awareness of safety and the creation of a safety culture.

It’s a fact that having LCVs on the fleet automatically means there’s a higher risk of collisions. So, flagging this at the start of the conversation will create some much needed focus.

Long working hours, evening work and inadequate rest periods are among the main reasons for fatigue and the resulting loss of alertness, loss of concentration and slower reaction times that lead to collisions.

© Shutterstock

Accident prevention starts with awareness of safety and the creation of a safety culture.

Next up is the driver, and his or her level of fitness and wellbeing. Fatigue is recognised the world over as being the main cause of accidents in the transport industry.

Special attention should be paid to what LCV drivers are being asked to do, their working hours and time schedules.

Make it clear that drivers must not speed. Don’t set impossible schedules and deadlines. Long working hours, evening work and inadequate rest periods are among the main reasons for fatigue and the resulting loss of alertness, loss of concentration and slower reaction times that lead to collisions.

Remember that driving thousands of kilometres per year, in difficult circumstances, requires specific skills. Make sure there’s a driver training programme and it’s up to scratch. And don’t forget to monitor that drivers are taking advantage of training that is on offer and get those that are not participating to take part.

Release the pressure Drivers are facing increasingly tight delivery schedules that have to fit in with ‘just-in-time’ operations and ever more demanding clients. This pressure creates a feeling of always being in a hurry. It’s unquestionably the cause of many a collision.

Trips should be planned in advance, not at the last minute or on the road. Planning should include scheduling of appointments; planning of routes; estimation of distance covered; observations of breaks; and management in the event of emergencies and delays.

Ask yourself what pressures your company drivers are being put under. Is there a strong enough policy in place

to protect them and the company? If not, it’s imperative to create, implement and enforce a policy that promotes efficient and safe driving.

Tool of the trade Providing a vehicle in poor condition is tantamount to letting workers operate dangerous machinery on a factory floor.

A structured vehicle maintenance programme has to be in place. Drivers have a responsibility too. They should carry out vehicle assessments as part of their daily routine and flag maintenance issues.

The guy behind the wheel has a critical role to play in checking the vehicle’s condition and reporting any defects.

It’s then for the responsible person in the company to take action and make it right.

Take action today When compared to Heavy Goods Vehicles (HGVs) managing LCVs is light touch.

With HGV’s there are strict regulations regarding the average working time and the amount of rest that must be taken both daily and weekly.

If the fleet industry wants to ward off the threat of legislation then collective action to improve safety and drive compliance in the LCV fleet is the order of the day. We all know that regulation will mean more paperwork and bureaucracy. It’s something that over-burdened fleet managers can do without.

Everyone in our industry has a responsibility to make the roads just that little bit safer. The final question then; what part are you going to play to make that happen? ■ Jonahan Green

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MANAGEMENT I LCV Procurement

Getting the TCO equation right Do you think that you can take a total cost of ownership methodology from a fleet of passenger cars and cut and paste it onto an LCV fleet? If you do, then it’s time to think again.

V

ans aren’t big passenger cars. Although both have an engine and four wheels, they’re distant cousins that have been designed to do very different things.

The right van for right job Vans come in a variety of shapes and sizes. There are long wheel base vans, box vans, car-derived vans and double cab variants to consider.

Asking yourself what you want the van to do is the starting point for establishing the all important total cost of ownership equation.

Why such variety in van types you may be wondering. The answer is simple. The diversity of tasks that vans are asked to do is huge.

You’ll want proof of this. Remember to ask for it in the tender documentation that’s being submitted.

So, first things first, what is it that you want the van to do?

This is the starting point for establishing the all important total cost of ownership equation.

What’s the LCV fleet going to carry? How’s the driver going to access what’s in the back? And where’s it going to be driven? All this stuff matters when working out which type of van best fits the needs of the fleet.

Get it right and you’ll be smiling.

Get it wrong and you’ll be lumbered with a fleet of vans that aren’t fit for purpose.

You want zero downtime with almost a 100% uptime. The reliability of the supplier and their product has to be right at the top of the procurement scorecard.

And don’t forget to make sure that the supplier is able to maintain the fleet in line with your business cycles too.

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Time spent in the garage has a big, big impact on operational efficiency. Downtime adds hugely to the fleet’s TCO, enrages customers and eats into the company’s bottom line. LCV’s that are recording too much downtime could mean your head is on the block.

Downtime adds hugely to the fleet’s TCO, enrages customers and eats into the company’s bottom line.

On the road ready to go LCVs are a business tool. They need to be on the ready and raring to go; anytime of the day and night. When a van is off the road the business really feels the impact.

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© Shutterstock

As a result, LCVs have their own unique set of characteristics that need to be considered when it comes to the total cost of ownership. Here’s a quick rundown of the key TCO facts that you can’t afford to forget when pulling together that all important tender document.

It’s time for tech Telemetry has been a tough nut to crack in car fleets, but in commercial vehicles it’s far, far simpler.

It’s now a must have to optimise operational effectiveness and onroad vehicle performance.

Vehicle tracking ensures drivers and goods are deployed efficiently and directed to where they’re needed. And the data outputs from vehicle diagnostics make sure your precious van is being treated politely by its drivers.

Remember a van can bring out the beast in drivers. So, take advantage of the tech that’s at your disposal to change driver behaviour, reduce costs and improve safety. The TCO, after all, considers full life costs and not just the purchase price. ■ Jonathan Green

BUSINESS I Geotab

Security, scalability and reliability at core of global strategy July was a headline month for Geotab, the Canadian provider of fleet telematics technology. It premiered a video channel for software developers; it launched Geotab Marketplace, a repository of applications for fleet professionals, and it partnered with the digital communications giant O2 to offer its on-board diagnostics solution to fleet managers in the UK. From his vantage point in the company's headquarters in Oakville, Ontario, Colin Sutherland, Vice President of Global Sales, explains Geotab's view of the 'think locally, act globally' approach. "We have many global fleets and this gives our customers the capability to centralize their data and act globally while applying the telematics implementation at a local country or regional level."

All these implementations produce an impressive amount of data. "Over 450,000 devices collect collects more than 600 million data points daily", says Colin Sutherland. "At peak hours more than 80,000 data points are received per second and processed in real time", he proudly points out, but adds that what distinguishes Geotab's technology from that of its competitors is the quality, not the quantity, of the data it collects.

Canadian servers, European perspectives Geotab stores the data from most of its global fleet customer vehicles on servers in Canada and this fact offer an opportunity to talk about the different trans-Atlantic perspectives on data protection, a hot topic in Europe, where North American attitudes to privacy are often viewed with suspicion.

European perspective and focuses our IT efforts on security, scalability and reliability of our solutions."

Colin Sutherland: “Protecting the privacy of the individual employee is a shared responsibility with the fleet end user

"North Americans take privacy very seriously", says Sutherland.

"We believe the perception boils down to whilst Europeans have a country-by-country view of privacy which focused on the rights on the individual employee to have their personal information safe-guarded, the USA's Patriot Act creates a perception that the USA government might have access to information travelling across the internet. As a Canadian company, Geotab shares more of a

When it comes to telematics best practices, what does Geotab recommend for establishing secure date protection for fleets? "Protecting the privacy of the individual employee is a shared responsibility with the fleet end user", says Sutherland. "While Geotab can focus on securing its servers, the customer is responsible in how employees are identified within the software." And he offers this tip: "It is more common today to have employee ID numbers used as opposed to first and last names."

All of Geotab's solutions are designed to help companies reduce operational costs, enable real time remote vehicle monitoring and track driver behaviour. Colin Sutherland, who views telematics as "an information-centric tool", believes that a lot more value can be extracted from the data and he would now like customers to direct their thinking to how telematics can be incorporated across the fleet management spectrum: safety, dispatch, accounting and customer relationship management programs. â– Eamonn Fitzgerald

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BUSINESS I Car Leasing

The summer of acquisitions Summer traditionally is a slow news season, but not this year. Traffic to the Fleet Europe website reached record levels on both June 29 and July 27 as we were among the first news outlets to report the sale of GE Capital Services and LeasePlan, respectively. Fleet Europe will continue to be first and best in news, both online and in print. But we also offer analysis of major events. Here, Robert Boscari shines his light on those two important acquisitions.

On June 29, Element Financial announced it would acquire most of GE Capital Fleet Services. The deal, worth $6.9 (6.3) billion, sees it take over GE’s fleet management business in the U.S. (450,000 units), Mexico (30,000),

and Australia and New Zealand (100,000). The deal makes Element the largest fleet management company in the U.S. (37% market share).

In a related deal, the European half of the Element-Arval Global Alliance takes over GE Capital's 160,000 vehicles in Europe. Globally, the Element-Arval alliance will manage well over 3 million vehicles.

And then barely a month later, on 23 July, VW Group and German bank Metzler sold LeasePlan to a consortium of long-term investors for 3.7 ($4) billion. So much for the raw facts. What is the meaning of these massive acquisitions?

Bart Beckers CCO, Arval “We warmly welcome the GE Capital Fleet Services teams, bringing their strong expertise of the business, solid relationships with their clients and in-depth knowledge of fleets. We also welcome GE Capital Fleet Services clients. We will let them benefit from our wide geographical coverage, and our combined expertise.”

Knut Krösche Head of International Fleet, VW Financial Services “The sale of LeasePlan won’t affect Volkswagen Financial Services. Both our short and mid-term strategies were defined before the sale of LeasePlan, and we are on our way to executing them successfully, with an increase in our portfolio, an international expansion and the development of innovative and client-friendly tools. One thing has changed, though. It is now clear who is Volkswagen Group’s lease partner: Volkswagen Financial Services.”

Vahid Daemi CEO LeasePlan “The deal will enable LeasePlan to continue its long-term strategy and growth ambitions, with our customers at the heart of our business. The Consortium of investors sees LeasePlan as an attractive, long-term investment opportunity. I refer to the press release of one of the Consortium members, which states that the consortium looks forward to supporting the management team as they focus on growing the business.”

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Analysis

by Robert Boscari, Fleet Europe Expert The sale of LeasePlan For the seller, Volkswagen Selling LeasePlan allows VW to refocus its activities and reduce cost. The manufacturer has its own financial solutions and its own leasing subsidiary.

Lesson: Paradoxically, the sale of LeasePlan means VW will increase its efforts on the lease and fleet management market.

For the buyer, a consortium of long-term investors The consortium is made up of long-term investors, a perspective which guarantees stability for LeasePlan. Of course, the consortium will require a financial return on its investment. But it is likely that LeasePlan will have more freedom than before in executing its operational strategy, thanks to its overall competence, its experienced management and its position as a global player.

Lesson: It is precisely by showing confidence in LeasePlan’s ability to chart its own course that the consortium will demonstrate its belief that LeasePlan is an attractive longterm investment.

For the industry Founded in 1962, LeasePlan has 1.42 million vehicles under management in 32 countries, LeasePlan is a world leader in car leasing and fleet management. The multinational employs 6,800 people and turned over 372 million in 2014. A company of that size is a very attractive investment opportunity.

Lesson: Industry players need to be global, international and have a certain critical mass (1 million units and up, perhaps). Size is a means to minimise risk and enable investments and innovations in fleet management and mobility. The 2008 crisis was a catalyst in this respect.

The sale of GE Financial Services For the seller, GE GE is refocusing on its industrial activities (aerospace, power generation, equipment for the construction, transport and health industries). It will only provide financing solutions to customers purchasing any of those products.

Lesson: The sale raises the question whether a stake in the fleet and lease industry is sustainable when that activity is not related to the parent group's main activities.

For the buyer, Element Element Financial previously bought GE Fleet Canada in 2013 and PHH in 2014. With this acquisition, the Canadian

company achieves its aim of becoming the largest fleet management company in North America, while also venturing into Mexico, Australia and New Zealand. This period of rapid expansion will have to be followed by a transition phase, allowing the integration of IT systems, people, processes and products. To achieve this without visible consequences for its customers, new and old, is Element Financial's next challenge. With over 1 million vehicles in management, the company now has the critical mass to develop interesting new products for its customers.

Lesson: This acquisition is part of a race for critical mass, one in which telematics, conncected cars and drivers, and younger generations of drivers all add up to a new ecosystem of products and services. These will be in the fields of driver behaviour, time management, big data, car sharing, pay as you drive, mobility management. Developing them will require sufficient funds, and enough potential customers – both drivers towards greater critical mass.

For the other buyer, Arval Acquiring GE's 160,000 vehicles across 12 European markets strengthens Arval's aim to be an industry leader in Europe. With 900,000 units worldwide, Arval now is a major player approaching the size of Europe's biggest lease companies, ALD and LeasePlan, who each have over 1 million vehicles. Arval's partnership with Element was an essential part of the deal. Like the partnership between ALD and Wheels, the Element-Arval Global Alliance allows both companies to respond to international tenders with a wider geographic coverage. But it goes further, as in this case, where the collaboration enabled the joint purchase of GE's fleet management business. It could also lead to intense collaboration, shared projects or even cross-shareholdings.

Lesson: Developing partnerships and alliances between major players is an alternative to straight-out takeovers. This strategy allows each partner to keep its identity. Possibly we're seeing the emergence in the lease and fleet management sector of the type of integrated alliance that already exists among OEMs, such as the Renault Nissan Alliance. ■ Robert Boscari

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BUSINESS I Hyundai Motor Europe

“Tucson will attract customers to choose Hyundai for the first time” The new Hyundai Tucson is a brand ambassador, designed to up the image and attract new customers to the ambitious Korean brand. “Seeing that half the European market is fleet, it makes sense to want to be a part of that”, says Thomas Schmid, Chief Operating Officer for Hyundai Motor Europe. With only 22% of its overall sales going to fleet, that leaves a lot of work to be done.

“

We’re a very young company, we only came to Europe in the early 1990s, so we have almost no history or heritage”, says Schmid. That hasn’t stopped the company growing. Last year, Hyundai sold 8 million cars globally, and became the 5th-biggest manufacturer.

Now it’s 1,000 clients. And this evolution will continue. At the same time, you need to train your staff more. To fund that, you need more sales per salesperson. This is why growth means more sales per dealership rather than more dealerships.

How important will the Tucson be for your fleet sales?

Thomas Schmid : Fleet sales account for 22% of our total sales, which is below the industry average. But we are doing quite well in true fleet. And this is where the Tucson is important: in true fleets, especially those of SMEs. We don’t release specific sales targets, but we’re ambitious enough with this model to want to have annual sales of 100,000 units over the next few years.

Does Hyundai have a specific Corporate Fleet Strategy?

T. Schmid : Seeing that half of the European market is fleet, it makes sense to want to be part of that B2B market. But it has to be both sustainable and profitable. So we are focusing on true fleet. And not on rental cars, where we have actually reduced volume. Having too many cars with rental companies can damage your residual value.

OEMs are launching more and more SUVs and SUV-like models. Won’t it be a tough market?

T. Schmid : Even the premium brands are downsizing in this segment, so yes, it is difficult – for everyone. But this is typical for a saturated market. And we welcome competition. We call our approach modern premium: premium, but affordable for everyone.

Wouldn’t you say that Hyundai still has some catching up to do – both in brand image and CO2 emissions?

T. Schmid : Yes, our brand image is behind our product reality. The brand lacks heritage. Had we been in the market for 60 years, we would be perceived differently.

But it’s changing. The Santa Fe is attracting premium-brand customers. And the Tucson is appreciated for its design, among other things.

Will you roll out more dealerships?

T. Schmid : No. We have 400 dealers in Germany and 1650 dealers in Europe, which by the end of 2018 should all be fitted with our new design. Overall, our sales, both private and fleet, are in transition. Online activity is increasing, not just in the information-gathering phase, but also for ordering – and eventually, the whole purchasing process could move online. We have some experience with digital showrooms in the UK. Online shoppers are younger and with a higher mix of female consumers - precisely the audience manufacturers want to reach.

So, will the number of physical dealerships decline?

T. Schmid : It’s already happening, across all brands.

This is because the quality of vehicles is improving, and fewer maintenance intervals are needed. In the 1990s, you needed 500 clients to provide work for one mechanic.

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Thomas Schmid, COO for Hyundai Motor Europe: “We’re ambitious enough with new Tucson to want to have annual sales of 100,000 units over the next few years.”

In 2010, we launched our new powertrain family. Then, we were an average of 12 grams ahead of all other manufacturers. Now we are halfway through our renewal cycle, and our new engines are coming, which will bring new gains. And we will also invest in electric, hybrid and plug-in hybrid.

Google, Apple and other tech companies are developing products for, services in and synergies with the automotive sector. Do you see them as just more service providers, or as competitors to OEMs like you?

T. Schmid : It depends on how you see the future. I think cars of the future will be smartphones on wheels, more or less.

Another option emphasises the assisted systems of future cars. Both aspects will be important. Connectivity is already hugely important to us. And Korean companies are in the forefront of the technology. That’s why Hyundai is working with Samsung, LG and others, and is installing (Google’s) Android Auto in its cars.

Google is working hard to produce its own vehicles. But we still don’t know where we will end up. Perhaps the customer, unwilling to share so much personal data, will decide against hyperconnectivity. ■

From ix35 back to Tucson First, there was the Tucson. Launched in 2004, the first generation of the compact SUV was sold worldwide under that name. For the second generation, launched in 2009, the name was changed to ix35. This was in line with Hyundai’s naming convention, explains Thomas Schmid: “An ‘i’ as our regional code, and an ‘x’ for derivatives, like four-wheel drive, crossovers, etcetera. If it’s a derivative from an existing model, there’s a ‘5’ at the end. So the ix35 was a derivative of the i30”.

Now, the car returns to its original name. “It’s a strategic decision. Vehicles that are the same or similar globally should have the same name. This supports the global aspect of the Hyundai brand”.

Steven Schoefs

How do we achieve global transparency about our fleet cost?

Which acquisition method is most suitable for our car fleet?

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How do we integrate broader mobility to our fleet?

How do we ensure best in class service to our drivers?

How do we benchmark against comparable fleets?

We Have The Answers.

Call Fleet Logistics today on: +32 2 600 72 22 or send an e-mail to: info@fleetlogistics.com TURNING YOUR FLEET STRATEGY INTO REALITY ACROSS THE GLOBE

FLEET EUROPE # 78

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New ViVaro Combi

eco-frieNdly. desigN-loviNg. with only 149 g co2/km the new vivaro combi boasts the lowest co2 emission in its class and is now also available with eco-friendly euro-6 emission engines. The vivaro comes with led daytime running lights – just one aspect of the new design that will get you noticed by day or by night.

opel.com fuel consumption combined 6.5–5.7 l/100 km; co2 emissions combined 170–149 g/km (according to r (ec) No. 715/2007).

BUSINESS I Hertz International

“We are in control of our own destiny” Hertz remarkets about 45,000 vehicles in Europe each year. Compared to the big lease companies, that’s not a lot.

But being a short-term rental company does provide Hertz with a different, and interesting perspective on the remarketing industry, says Rui Ferreira, VP Fleet Remarketing at Hertz International.

“

I am in charge of all remarketing operations in Europe, Australia and New Zealand.

Which means taking care of the sale, and providing feedback to the procurement teams. For example on whether to get risk vehicles or buyback vehicles. The good thing about buybacks is that you know beforehand what price the OEMs will pay you. Risk vehicles, which you buy outright, are trickier. But I prefer to call them opportunity cars”.

Under which circumstances would you prefer either buybacks or risk vehicles?

Rui Ferreira: We always look at it on a per-case basis. For example, if we need to have 400 B-segment cars for the Belgian market, we’ll compare, say, two risk deals and three buyback deals. Any of those options could prove the better one. Of course, OEMs prefer buybacks because they want to control the residual values of their cars. But their used-car programmes only control a small part of the remarketing market.

There are a lot of needs to be met, and theirs is just one of many.

The risk – or opportunity – you deal with depends on future prices. How do you predict those?

R. Ferreira: We have one great advantage over lease companies.

Their vehicles are on fixed-time contracts, so they have no choice in when to sell them. As a rental company, we have much more control of when vehicles leave our fleet. We can look

north you go, the more red is acceptable, though. France is very dieselminded, the Netherlands are the opposite. Automatics are popular in the north, but not so in the south of Europe. As a remarketer, you have to understand differences like that.

“We have an atypical profile”, says Rui Ferreira, VP Fleet Remarketing at Hertz Internatonal. “Our vehicles are younger than the vehicles remarketed by lease companies, but older than the ex-demos and self-registered vehicles remarketed by dealers.” at different ‘exit gates’ in the future, at 12, 18 or 24 months, for example.

Our short-term perspective gives us more opportunities than challenges.

We control our own destiny. If a particular model is not doing well on the market, we just don’t sell it now.

How does your perspective on remarketing influence the cars you buy?

R. Ferreira: We pick car by car.

Repetition is a recipe for failure.

And we never buy the cheapest option available. Those no-frills vehicles don’t generate a good return.

Also, we’re very picky about colour.

And we have to be aware of national differences. In Italy, you can’t sell a red midsized car. That colour is reserved for Ferraris. The further

How has the internet changed the way Hertz remarkets its cars?

R. Ferreira: The last three years, we’ve developed a clear strategy on how to remarket, streamlining processes, deploying common methodologies across our markets, using powerful fleet management tools.

We’ve also developed online remarketing channels, but only for about 20% of our business. Those are aimed at smaller players, who lack the resources of bigger buyers to purchase in large quantities.

What is your biggest challenge in the remarketing industry?

R. Ferreira: It’s the new car market itself. You see, we have an atypical profile. Our vehicles are 1 to 2 years old, younger than the vehicles remarketed by lease companies, but older than the ex-demos and self-registered vehicles remarketed by dealers. We are competing directly with the OEMs, who are now very aggressively pushing their new vehicles via discounts and financing deals – which explains why the new car market across Europe is up by 6.5% this year. This is pushing the value of used cars down. ■ Frank Jacobs

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SMART MOBILITY I Two-wheel mobility

The e-bike: triggering a change in behaviour The results of the international study conducted by the ‘6t’ research office confirm the field data collected: The electrically assisted bicycle is emerging as a new mode of city transport for commuters. Those who try it are quickly won over – something that mobility managers should keep in mind!

A

t present, little data is available about the actual use of the electrically-assisted pedal cycle (EAPC). This only serves to confirm how valuable the initiative taken by the Paris-based mobility research office ‘6t’ is for mobility managers, by helping them understand the development of this booming mode of transport. After all, European sales increased from 98,000 in 2006 to 854,000 in 2012.

To recap, the electric motor of an EAPC makes pedalling easier but does not replace it. According to European legislation (Directive 2002/24/EC), an EAPC is a bike fitted with an electric motor activated only when the user pedals, which stops once the bike reaches 25 km/h and whose power is less than 250W. “Our company”, stresses its director Nicolas Louvet, “focuses on niche modes of transport that have a real impact but where the data are scarce.” This prompted 6t to conduct a survey this spring among 400 EAPC users, 100 per country in France, Spain, The Netherlands and the United Kingdom. The sample size is limited, which means that caution should be exercised, however the trends observed by many mobility professionals are at last backed up by a study of some magnitude.

Two thirds of Electric Assisted

extension of the mechanical bike”, notes Nicolas Louvet.

“The survey reveals that two thirds of EAPC users are employees, with an average age of 40. In addition, 45% of the respondents use it every day or almost, and 43% two or three times a week.”

with an average age of 40.

The study also found that these users live mostly in cities, but not necessarily in an urban centre. They have a mixed image of public transport, but a positive image of the car and the mechanical bike.

Mostly city-slickers “This European snapshot clearly shows that users have similar profiles in the different countries, with the exception of The Netherlands, a land of cyclists where the EAPC is essentially considered as a more comfortable

“A typological study”, adds the 6t boss, “reveals that EAPC users are primarily ‘multimodals’ who tend to choose the cheapest and/or fastest solution for each of their journeys (see box), or urbanites who are fans of the car but forced to use other modes of transport due to difficult traffic and parking conditions.” The weight and recharging are singled out among the main constraints.

Pedal Cycle users are employees,

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Nicolas Louvet of ‘6t’: “The public authorities have an important role to play in promoting the EAPC as a component of sustainable mobility, positioning it as an alternative to individual use of the private car.”

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Figure 1: The average speed of other modes of transport

5

km/h

15 km/h

17

18

km/h

km/h

18

19

km/h

km/h

The average travel speed by EAPC calculated on the basis of the results of the survey compared with the average travel speed by mode of transport in a few large European cities (in km/h).

The data relating to travel speeds by mode of transport are derived from origin-destination surveys, while the EAPC speed is calculated on the basis of the survey results.

Author: 6t research office, 2014

An alternative to the car An analysis of the answers given leaves no doubt: EAPC users move faster than other users (see figure 1). “In the big cities, an average travel speed of 19 km/h is greater than the average speed of other modes of transport. This result matches the existing data in the Netherlands or Switzerland. Respondents using EAPCs for their commuting are closer to the speed limit of 25 km/h. These are the youngest users who are intent on saving time.”

Furthermore, cyclists not only travel faster, they also travel longer average distances (9 km in approximately 30 minutes) than users of other motorised modes of transport in cities (see Figure below).

Figure 2: Estimate of the average travel distance by EAPC

0.4 km 2 km 6.2 km 6.5 km 9 km

indeed report that they have used the car less since adopting the EAPC, which will not fail to be of interest to fleet managers. “This new mode of transport meets a gap in the urban mobility market, where the distances are too short to drive or too long to walk. It can overcome the dilemmas surrounding journeys from the suburbs to the centre and between suburbs.”

Favourable to leasing On the other hand, the EAPC does not really cut the number of cars per households - few are prompted to part with their vehicles - but rather drive down the use made of the car. In general, the use of EAPC leads to a reduction in the use of all transport modes – with the exception of shared modes. However, users are more likely to own a bike than to share it. Thus, only 33% of them wish to have self-service electrically-assisted bikes. Conversely, 66% state that they are interested in a long-term lease offer, including insurance against theft and damage to third parties.

What is the trigger that convinces users to take up the EAPC? “A test run!” proclaims Nicolas Louvet. He goes on to cite the three main measures likely to encourage its practice as a lower purchase price, development of cycle paths and the creation of secure parking. “The public authorities have an important role to play in promoting the EAPC as a component of sustainable mobility, positioning it as an alternative to individual use of the private car.” ■

9 km Estimate of the average travel distance by EAPC in the survey compared with the average travel distance by method of transport in Ile de France (in km).

Author: 6t research office, 2014

The EAPC thus appears as a suitable mode of transport for metropolitan regions and therefore, as a serious competitor to the car in cities: 49% of respondents

Frédéric Van Vlodorp

Moderate cost The average purchase price reported by respondents to acquire their EAPC averaged 1,053 Euros. Users spend about 22 Euros per month on charging, maintenance and insurance. These amounts are clearly much lower than those generated by a motorised two-wheeled vehicle or a car.

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SMART MOBILITY I Intelligent Mobility

The future of mobility just needs the right app How many speakers at a conference on Intelligent Mobility (IM) will mention Uber? All of them. That’s because the app-based taxi replacer is an excellent example of the disruptive innovations pushing mobility towards an ‘assetlight, tech-heavy’ future, over 300 delegates learned at Frost & Sullivan’s fact-rich annual IM event in London.

“

At the first of these conferences eight years ago, we had about 30 people, and the talk was all about electric cars. Most delegates then were linked to OEMs, now most represent companies in technology, leasing or fleet management. That illustrates the speed at which convergence is taking place in the mobility industry”, says Graeme Banister, Consulting Director Automotive and Transportation at Frost & Sullivan.

Megatrends Said one of the many speakers at the day-long event in early July: “The technology is here; we now need the right applications.”

The smartphone is a key example. It is predicted to generate a convergence of different transport modes – leasing, rental, carsharing – into one platform. In other ways as well, mobility today is all about the blurring of previously fixed lines. Business and leisure mobility will merge into bleisure, companies moving people will also ship parcels, manufacturers are getting into the carsharing business, etc.

In the midst of all this blurring, it’s essential to keep an eye on the megatrends steering the process. “Three fundamental shifts are under way: towards no ownership (e.g. Uber), no oil (e.g. GM’s electric cars) and no drivers (e.g. Google Cars). The value of those three companies rose from $60 to $100 billion last year.”

When discussing planned tests for dynamic wireless power transfer (essentially, charge your EV while you drive), one speaker drew a parallel between mobility now and another industry in the midst of transformation a few decades ago: “Nobody in the video industry knew whether VHS or Betamax would become the standard.

Neither do we have a clear view of the future.”

That view should be a lot clearer at next year’s Intelligent Mobility conference and at the upcoming Fleet Europe Forum in Rome (see page 40). ■

© Shutterstock/ eskay

Three fundamental shifts are under way: towards no ownership (e.g. Uber), no oil (e.g. GM’s electric cars) and no drivers (e.g. Google Cars).

Facts for the Future of Mobility •T he Intelligent Mobility market worldwide is valued at 200 billion now. By 2025, that will be 1.3-trillion.

•T he average data produced by a car will rise from 10Mb to 5Gb. • Over the next few decades, connected and autonomous driving could halve the size of the 130 billion car insurance industry in Europe – and shift the burden to the manufacturers.

• Car-sharing in Europe currently represents 42,000 vehicles and 2.5 million clients – just over a million in Germany alone.

• By 2020, the corporate car-sharing market will represent 85,000 vehicles in the UK alone. In 2013, there were only 2,000 vehicles.

• I n 5 core EU markets, 54% of fleet managers are (very) interested in mobility allowances as a solution to their fleet issues.

• 25% of fleet managers surveyed say the leasing companies should take the lead in innovating corporate mobility (16%: rental companies, 14%: OEMs).

• Vehicles still kill 1.2 million and injure over 10 million worldwide every year; this is perhaps the strongest argument for self-driving cars.

Frank Jacobs

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SCOPE I LCVs and Environment Awareness

Clean up or clear out Europeans’ angst about urban air quality could be about to have a big impact on the vehicles that are permitted to ply Europe’s streets. It’s time to take a long hard look at LCV strategy and make some big decisions about the future.

And the environmental concern that came out at the top of the list was air pollution. It’s estimated that over 400,000 people die prematurely and a whopping 100 million work days are lost every year because of issues linked to air quality.

Given the statistics, it’s not surprising that over half (56%) of the survey respondents worry about air quality and want action from the authorities to improve it. And with transport being a primary cause of air pollution the motor vehicle is well and truly in the spotlight.

A European problem The European Commission is not just talking tough, but getting tough. It launched legal proceedings against a Member State because of air quality breaches for the first time late last year.

The United Kingdom has the unenviable honour of being first country in the dock, but it’s not alone in needing to do more to tackle chronic air pollution.

In addition to the UK, twenty-one European States have sought time extensions for attaining European air

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FLEET EUROPE # 78

The actions being proposed by cities not only impact the LCV TCO equation, but also could limit the areas where LCVs can operate and access. quality standards. Paris is a case in point. Just last month it briefly took the title of the world’s most polluted capital; sitting above regular leaders like Delhi, India, and Beijing, China.

Pollution has become a real headache for Parisians. Last summer French Ministers imposed drastic measures that led to the banning of cars. And Paris’ Mayor, Anne Hidalgo, has announced that she wants the city free of diesel by 2020.

Across the channel in London, UK, Boris Johnson, Hidalgos counterpart, has promised to introduce a range of measure to beat air pollution. Amongst them is an ‘Ultra Low Emission Zone’, which comes on top of the London’s existing Congestion Charge and a London-wide low emission zone.

Is it the end for diesel?

With the EU looking at diesel less favourably than in recent years, could

© Shutterstock/ Taina Sohlman

The economic crisis has not dampened Europeans’ appetite for environmental protection. An eye-opening 95% of 28,000 citizens interviewed last year by a European Union Eurobarometer survey said that protecting the environment is “important to them personally”.

One solution to cities banning diesel vehicles could be the deployment of electric vans, but there aren’t masses of evidence to say e-vans are economically sound just yet.

taxation be the tool that’s used to drive a change? Will we see Milan, Italy and Stockholm, Sweden adapt their congestion charges to favour cleaner vehicles and punish diesel?

It’s possible. And you can bet it’s under discussion.

Brussels, London and Paris aren’t unique in the steps they are taking to curb air pollution. Take a look at any major European city and you’ll soon see an acknowledgement of air quality problems from politicians, as well as list of actions that are being taken, or proposed, to reduce pollution.

And this is why this air quality matters when it comes to LCV fleets. The actions being proposed by cities not only impact the LCV TCO equation, but also could limit the areas where LCVs can operate and access.

Taxation hit on the TCO For starters, there’s more and more chatter about increasing the taxation take on diesel fuels. It’s got so loud that the European automotive and petrol associations have joined forces to issue an open letter to EU leaders warning about the dangers of demonising diesel.

On top of EU and government action, individual metropolis, like London, are making noises about increasing congestion charges for diesel vehicles. Vans operating in cities could be about to take a double taxation hit.

The LCV sector will suffer more than any other segment. Diesel vehicles dominate the van market making up 97% of sales. So, any change to taxation rules will have a significant impact on the TCO equation.

If you’re diesel you’re not coming in A second concern is that diesel

© Shutterstock

Brussels, Belgium, is going a step further. To improve its urban environment, Brussels city-centre is going pedestrian-only in a eight month trial that’s starting this summer.

Pollution has become a real headache for Parisians. Last summer French Ministers imposed drastic measures that led to the banning of cars. And Paris’ Mayor, Anne Hidalgo, has announced that she wants the city free of diesel by 2020.

vehicles may be banned from cities.

Paris is talking about it, London’s ultra low-emission zone is likely to do it and Brussels will be banning all vehicles from its central area for the next eight months.

They carry communication campaigns on their sides and their livery clearly marks out to whom they belong. That’s been a good thing up until now, but perhaps this is about to change too.

How a business gets stuff into the city is all of a sudden going to become a big question. New rules preventing access could end up being a massive problem for companies. Fleet managers will be expected to play a part in coming up with an answer.

Van numbers are on the rise which means they are playing an ever more prominent role in air pollution problems. With citizens demanding action, how is your company going to show its customers that it cares about air quality?

One solution could be the deployment of electric vans, but there aren’t masses of evidence to say e-vans are economically sound just yet. So, don’t blindly run down the e-mobility alley.

Pretending it’s business as usual and doing nothing is not going to be an option. Brand leaders won’t let their much prized customer relationships be ruined by a fleet of dirty LCVs. It’s fleet managers again that will need to come up with an answer.

Also, e-mobility doesn’t get around total bans on vehicular traffic either.

Could cargo bikes with pedal power be the next big thing to enter the corporate fleet? Don’t mock this. Cargo bikes could be the only answer and their management may be about to fall under your remit.

Brand value The third reason to be interested in air quality is brand value and reputational risk. Vans are a business tool, but they’re also travelling billboards.

Time to prepare If you ignore the writing on the wall, then be prepared to be left carrying some very costly LCVs on the fleet.

The time to look at different ways of meeting business needs and managing LCVs in cities has arrived.

What changes are you going to make today to make a difference for tomorrow? ■ Jonathan Green

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New Hyundai H350

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