Fleet Europe °081

NEXUS COMMUNICATION - FLEET EUROPE #81 - PERIODIC MAGAZINE - JANUARY 2016 - DEPOSIT OFFICE LIÈGE X

JANUARY 2016 - # 81

CONFESSIONS OF A MOTOR MAN Christian Lindskov Alsø (ISS): International Fleet Manager of the Year Large Fleet

SPECIAL

GREEN FLEET 43 pages on how to lower your corporate fleet carbon footprint

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SE AT.COM/BUSINESS

On behalf of the Fleet Europe team, a Happy New Year! May 2016 bring you health, success and lots of fun.

Paris was without any doubt Europe’s Capital for two main reasons. The first being the terrible terrorist attacks last January and December. The second being the UN Climate Change Conference.

And so will you. But there is a real danger that a Green Fleet Strategy isn’t very high on your list. Those Paris goals are distant and abstract; after Dieselgate, you’re understandably skeptic about manufacturers’ green intentions; and fuel prices are comfortably low.

To do nothing is tempting. But also wrong, for three reasons: * In an era of rapid urbanisation and growing environmental challenges, consumers increasingly demand mobility solutions that are clean and smart. * Via taxes and incentives, governments will continue to push the ‘greenification’ of transport, logistics and mobility. * Listening to the market, OEMs are focusing on low-emission products and services that offer integrated mobility alternatives.

As demand grows and supply broadens, the Return on Investment of a Green Fleet Strategy will only increase. For ideas and solutions, look no further than this magazine. Go green today!

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

The Fleet Europe team wishes you a healthy, successful and sustainable 2016.

After lengthy negotiations, the Conference formulated a response to the challenge of climate change.

The goal: prevent global average temperatures from rising more than 2°C above pre-industrial levels. And aim to balance the amount of greenhouse gases going in and out of the atmosphere by 2050.

This sounds vague and minimal. But as a compromise between all the world’s governments, it’s a miracle it’s there at all.

However, this leaves the real work still to be done. The EU and individual member countries will have to take concrete steps.

EDITORIAL

Go Green Today!

DOSSIER I Green Fleet Management and Alternative Powertrains

Clean Car Models and Low-emission practices

6-49

I MANAGEMENT I

MANAGEMENT I Fleet Europe Awards 2015 Christian Lindskov Alsø, ISS World Services Large Fleet Manager of the Year Confessions

50

Awards 2015

54

SCOPE I Legislation

Big changes in Lease Accounting Rules

62 COLOPHON Caroline Thonnon - CEO & Business Development cthonnon@nexuscommunication.be Steven Schoefs - Chief Editor - Fleet Europe sschoefs@nexuscommunication.be Antigoni Vokou – Journalist avokou@nexuscommunication.be 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 - Project Coordinator cgilson@nexuscommunication.be Aline Verpoorten - Internal Sales Assistant averpoorten@nexuscommunication.be

Confessions of a Motor Man . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.50 Christian Lindskov Alsø and ISS World Services: “We walk the talk” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.51

I BUSINESS I

BUSINESS I Fleet Europe Transparency wins

1,5°C for climate and 95 g CO2 /km for cars . . . . . . . . . . . . . . . . . . P.6 Green energy + taxes = Green Car Mobility . . . . . . . . . . . . . . . . . . . P.8 No Planet B and No Fleet Industry B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.9 20% less CO2 for 2020 in EU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.12 The diesel question . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.13 Taxation as fleet strategy driver . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.13 Green could become the new black . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.14 The chicken or the egg . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.16 The black sheep called diesel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.18 To plug in or not to plug in . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.20 Electric cars will go a long way… eventually . . . . . . . . . . . . . . . . P.22 Clean as a whistle? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.24 Alternative powertrains key facts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.26 Diesel is still ruling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.28 Clean cars EU network by 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.30 2016: static year for green Residual Values . . . . . . . . . . . . . . . . . P.34 “The missing link in EV battery life cycle” . . . . . . . . . . . . . . . . . . . P.36 Procuring fleets of the future . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.38 L’Oréal: Green is part of the DNA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.39 Smart driving with smart powertrains . . . . . . . . . . . . . . . . . . . . . . . . P.40 Jean Zermati and Orange: a unique Green Fleet Vision . . . . . P.41 The road to green . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.44 Managing miles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.46 Safety and green to help telemetry shine . . . . . . . . . . . . . . . . . . . . P.47 IKEA’s home-kit for low-CO2 mobility . . . . . . . . . . . . . . . . . . . . . . . . . . P.48 How to account fleet CO2 emissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.49

CONTENT

I DOSSIER I

Transparency rewarded at Fleet Europe Awards . . . . . . . . P.54 The ‘easy’ integration of GE’s fleet business in Arval-Element . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.56 So long, diesel and petrol? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.57

I SMART MOBILITY I Uber’s Smartphone Mobility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.58 Renault reinvents mobility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.59 At hand and on demand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.60

I SCOPE I Lease Accountancy: Existing rules are more suitable . . . . . . . P.62 Turkey: Vibrant fleet market, volatile region . . . . . . . . . . . . . . . . . . . . . . . P.65

Virginie Emonts – Sales and Marketing Assistant vemonts@nexuscommunication.be Contributors: Frank Jacobs, Jonathan Green, Tim Harrup, Dieter Quartier, Eric Gibory.

Experts: Robert Boscari (Nexus Communication), Tony Elliott (Nexus Communication), Professor Joeri van Mierlo (VUB).

Cover: ©Shutterstock - Pictures: ©Shutterstock - ©ThinkStock Layout: Hungry Minds - info@hungryminds.com

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 # 81

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DOSSIER

I Green Fleet and Alternative Powertrains

�,5°C for climate and �5 g CO2/km for cars The Paris Agreement of COP21 managed to fix a common target for climate change: maintain Earth’s temperature increase to +1.5°C above pre-industrial levels to escape the worst risks induced by global warming. This target represents a unique chance for the fleet sector to adapt to GHG, especially CO2, mitigation measures by investing into a green, flexible, shared and cost-competitive car fleet for its employees.

A

s always happens in these gigantic United Nations Climate Change Conferences (UNFCCC) the critical conclusions occur during the last minutes. It took 24 more hours to get the climate deal at COP21. The Paris Agreement, officially proclaimed on 12 December 2015 at 19.26 pm

by Laurent Fabius, the French Foreign Minister, engages 195 states, 196 with the EU, in the fight against global warming by limiting “the increase in the global average temperature to well below 2°C above preindustrial levels and to pursue efforts to limit the temperature increase to 1.5°C above pre-industrial levels”, in order to stop climate change (Article 2 of the Paris Agreement). All members of the Treaty should compose new regulations and conduct appropriate researches to develop environmentally sustainable technologies.

Contrary to its predecessor, the Kyoto Protocol in 1997, the Agreement’s objectives must be approved by the member’s national governments of both industrialized and developing countries. The Monitoring, reporting

and verification (MRV) mechanism will value each of the 195 members’ efforts in comparison with those of its teammates. This way the public opinion stays informed of each state’s CO2 reduction results. Although, if one complaint can be mentioned regarding the COP21 deal, it is the absence of a judicial constraint regarding the appliance of the CO2 reduction aims for its members to achieve the +1,5°C limit.

CO2-opportunities for fleet managers The car industry and its future development are immediately going to be impacted by those additional green government rules and probably additional greenhouse gas (GHG) limitations. Still, in reality this is a unique opportunity for the automotive and the fleet industry to cost-efficiently adapt to the upcoming mitigation measures. Fleet mobility managers can be precursors in alternative ecological engines by already starting to invest into a clean car fleet (shared or not) for their employees and become cost-competitive sooner than they think.

Limit global warming at +1,5°C is crucial. For the fleet sector it is now or never time to adopt or develop an alternative powertrain conscience by investing in a true ‘green’ and cost-competitive car fleet.

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EU, US, China, Russia and India commit to COP21 There are three main reasons why the objectives of the Paris Treaty are important.

Firstly, because there is only one planet, and to conserve this planet a clear climate change policy has to be followed. As the IPCC Climate Change Synthesis Report for Policymakers in 2014 states “limiting climate change would require substantial and sustained reductions in greenhouse gas emissions which, together with adaptation, can limit climate change risks”. Stop global warming is one of the biggest tasks for the next years. Even if no more GHG are emitted by tomorrow, Earth’s temperature will still rise by 0,6°C the next years. Maintaining this temperature at +1,5°C maximum is probably a very difficult task, but is not an impossible one.

An alternative engines conscience is needed Fleet managers and the car industry play an essential role in this vital climate objective. They are an undeniable stakeholder of today’s and tomorrow’s transport and mobility business. The good news is that for more than ten years the fleet community in Europe has been embracing the environmental element in their corporate fleet strategy, via a focus on lower CO2-emissions instigated by taxation and cost objectives. This has led to a CO2-emission decrease for the leased car fleet in Europe from more than 150 g CO2 /km in 2008 to less than 127 g CO2 /km in 2014 (Source: European Environment Agency). But, until now the green vision of fleet managers and the industry has been (too) centralized around CO2 only via the use of new, CO2-friendlier diesel technology. So far only 4% of new cars sold in the EU are powered by alternative powertrains. The current developments of car manufacturers with regard to new powertrains, and the recent Dieselgate affair can be new stimulators to boost the conscience around and the sales of alternative powertrain vehicles. Besides this, changing the percentage is also a matter of will and foreknowledge regarding the future use of those increasingly highly performing alternative engines.

A zero-carbon transport and a fully-sustainable mobility before 2050 is at hand.

Secondly, the Agreement is binding from 2020 and engages all its members. At least 55 countries, emitting 55% of the total GHG world emissions, must respect its objectives once they ratify it from 22 April 2016. In the EU, new car fleets must not emit in Member States more than 95 grams of CO2 per kilometre by 2021, phased in from 2020. The European Union aims to reduce global GHG emissions by at least 40% by 2030 and at least 60% below 2010 levels by 2050.

China, the largest world GHG emitter, consented to reduce by 60-65% its CO2 emissions by 2030 compared to 2005 levels. US, second emitter in line, engaged to a 26-28% GHG reduction by 2025, also compared to 2005 levels. India promised, even if reluctant at previous COP summits, to decrease its carbon intensity by 35% by 2030 compared to 2005 levels. Russia, fifth world GHG emitter, assures that by 2030 its emissions will be reduced by 25-30%. Brazil announced a 43% decrease by 2030 compared to 2005 levels through renewable energy investments. Eight countries didn’t commit to the Paris Agreement, among which North Korea, Nicaragua, Nepal or Libya.

Finally, the Paris Agreement is a chance for ambitious car innovations, the development of greener more performant technologies and a low-CO2 future where corporate car fleets are environmental-friendly, safer and cost-efficient. Innovative measures to engage in a +1,5 °C future is what matters now.

Greener leasing offers by 2050 A zero-carbon transport and a fully-sustainable mobility before 2050 is at hand. Clean energy technologies are a unique chance for the fleet industry to develop projects and strategies decreasing CO2, other emissions and costs, while boosting the company’s environmental image. The fleet industry, with leasing and fleet management companies and insurance companies, are also increasing their green offer, which makes it the right time to move your green strategy a higher gear. An increased client demand for green services and products is the strongest voice for suppliers to extend their offer with cost-efficient and customer-friendly alternatives.

This combined with the entrance of new labour force that is more than ever open to flexible mobility solutions should be enough reason to make the switch, as it will be cost-effective as well. Fleet and mobility management is a long term business, in which today’s decisions have to be valuable for at least 3 to 4 years, so it will pay back and even more for the early adopters. ■ Steven Schoefs and Antigoni Vokou

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DOSSIER I Green Fleet and Alternative Powertrains

Clean Cars are Competitive To respect the Paris Climate Change Agreement, EU governments’ efforts need to be oriented towards decreasing the costs of using alternatively powered cars and increasing renewable energies.

T

o limit the temperature increase to 1.5°C above pre-industrial levels the car industry is immediately going to be impacted by more GHG government limitations. Still, this is an undeniable opportunity for the automotive sector to prove its ability to adapt to mitigation measures and to be a precursor for more sustainable energy engines.

Professor Dr. Joeri van Mierlo leads the Mobility, Logistics and automotive technology research centre at the Vrije Universiteit Brussel. He shares his expertise on alternative vehicles to reduce CO2 emissions in cities.

More clean engines incentives Efficient alternative car options are the battery-electric vehicle, “which is the cleanest and the best-fitted for solving environmental issues like climate change and human health”, but currently this technology still is very expensive. EU governments’ effort needs to be oriented towards decreasing the costs of using alternative cars.

“EVs are cheaper when using them, because filling up the tank with petrol costs three times more. For that reason there is a need for financial support from governments. In Norway the fiscal system is established in such a way that the electric vehicles are cheaper than the electric vehicles. The most-selling car in Norway is not a petrol vehicle but an electric car. That demonstrates that governments fiscal incentives play a role, especially in the upcoming years because in the meantime technology will improve and the cost of electric vehicles will be reduced. In five years EVs will be cost-competitive in all vehicle segments.”

Joeri van Mierlo, Vrije Universiteit Brussel is convinced that in five years electric vehicles will be cost-competitive in all segments.

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+1.5°C maximum temperature increase to avoid climate catastrophes.

5 years the amount of time for green cars to be competitive.

12% the CO2 emissions of EU passenger cars alone.

94% EU’s Transport oil dependency.

4 times less CO2 Two out of three Europeans use their car to go to work every day, which causes around 12% of CO2 emissions in the EU for passenger cars alone. Employees will still want to use cars in the future along with other mobility solutions, this is the first main reason that the fleet sector should already invest in clean vehicles to be in advance of all future authorities’ taxes and rules. The second main reason is that alternative engines like EVs can be four times less climate change emitters than petrol engine vehicles. “In the European transportation sector to reduce the GHG emissions means to foster the market possibilities for electric vehicles and at the same time stimulate renewable energies. We should get rid of the dependency on oil, not only for climate change reasons, but for economic reasons. We spend one billion euros per day out of the European economy to import oil for driving. That is a lot of money that could be used in our own EU economy.” EU Transport is 94% dependent on oil and 84 % of it is being imported.

Renewable energy EVs The way electricity is produced in Europe is another important factor in the development of green car fleets in the next years. “If the electricity is produced by renewables sources like wind and solar, then climate change emissions are 13 times lower when driving an EV. Currently, with the way electricity is produced in EU, electric vehicles remain two times better for climate change than conventional technologies.” ■

Antigoni Vokou

DOSSIER I Green Fleet and Alternative Powertrains

No Planet B and No Fleet Industry B The role for alternative powertrains as a cost-efficient and green sustainable solution in reducing CO2 car emissions is crucial in the upcoming years. Their development is at the same time a great challenge and an absolute necessity for the automotive and car fleet industry.

T

he transport sector emits 14% of global CO2 emissions, 23% of global GHG emissions and consumes 60% of total petrol resources. In the EU, one-fifth of total emissions result from road transport. Because the sector is still developing, its emissions are expected to increase by 20% by 2030 and by 50% by 2050. Robert Boscari, Fleet Europe Expert, shares his point of view on the role of alternative powertrains for the automotive industry.

4% of total sales in 2015 are “alternative” The automotive industry is a major player in transport and plays an important role in emission reduction and improved oil consumption. “The possible impact and the role of alternative powertrains and their development has become a vital challenge for the automotive industry”, says Robert Boscari. Although, alternative powertrain cars, like EVs, still encounter difficulties to find a place among fleets because of the insufficient vehicle autonomy, combined with low oil prices worldwide, it can’t be denied that emission friendly technologies will become a necessary game changer for the automotive and fleet industry.

But there is still a long road ahead. “In 2015 alternative powertrain vehicles represented only 4% of total new car sales in Europe. Of which 1% were EVs and 1.5% were HEVs. Currently we have 96% combustion engine powered cars, 2.5% electric and 1.5% others. So we can see that the role of

Robert Boscari, Fleet Europe Expert, is convinced the future impact and the role of alternative powertrains will be a vital challenge for the automotive industry.

alternative powertrains remains marginal.” But this small role will change in the future, as governmental pressure, combined with the increased conscience in terms of Corporate Social Responsibility and the introduction of the new more “eco-aware” generation labour force, will force not only car manufacturers and other automotive suppliers, but the economy as a whole to turn towards new eco-friendly mobility.

No plan B for alternative powertrains The car fleet industry is often ‘used’ and recognised as one of the early adopters regarding new regulation, new technology and alternative solutions. The interest from the fleet industry and fleet clients in alternative powertrains is rising although scepticism remains around autonomy, safety and cost-efficiency. These elements of uncertainty will slowly but surely become resolved, and underline the

unique position of alternative powertrain vehicles to tackle climate change and reduce fuel consumption successfully. Robert Boscari makes a link to the climate conference in Paris: “As noted during COP21 in Paris, where it was said that there is no plan B as there is no planet B, one could say that there is no plan B for alternative powertrains as there is no Fleet industry B. Companies have a social role on sustainable development which a fleet manager uses for his purchases and choices. La Poste in France, with its 16,000 electric vehicles, is a very good example of credible choice and sustainable development validated by its fleet managers, top executives, and company drivers.”

Now when making the exercise, image and green marketing aren’t enough.

The essential elements to consider when developing fleets composed of eco-friendly cars and alternative powertrain vehicles remain “Total Cost of Ownership of course, even the Total Cost of Mobility, but also the company carbon footprint, CO2-emission, particulates emission, taxation, vehicle weight, driving behaviour, actual consumption, residual value, reliability, safety, use of vehicles etc.”

If the sum of all these parameters is equal to or slightly against alternative powertrains, still don’t hesitate as alternative powertrain cars will only become more present, affordable and acceptable for your drivers, your top management and your wallet. ■ Antigoni Vokou

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Always green. No matter what colour.

Although most of our fleet cars are delivered in silver, green is becoming more popular every day. With this low-emission company car, Mercedes-Benz impressively combines the best of three worlds — sporty dynamics, exceptional comfort and sustainable efficiency. The C 350 e PLUG-IN HYBRID clearly demonstrates that green is no longer just a matter of colour, but is now also an attitude. www.mercedes-benz.com/fleet

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

A Daimler Brand

Fuel consumption combined: 2.4 — 2.1 l/100 km; combined CO₂ emissions: 54 — 48 g/km.

Electrical energy consumption NEDC acc. to ECE-R101: 13.2 — 11.0 kWh/100 km.

DOSSIER I Green Fleet and Alternative Powertrains

��% less CO� in EU by ���� The European Union wants to reduce its GHG emissions, of which CO2 is the most rejected, by 20% compared to the 1990 levels for 2020, by 40% for 2030 and reach 80-95% reduction by 2050.

S

ince the beginning of the international climate negotiations, the European Union aimed to be an example-setter of greenhouse gas (GHG) mitigation policies. Contrary to other industrialized countries, all its Member States signed in 1997 the first legal international document to fight climate change: the Kyoto Protocol. To keep this green leadership the EU is aiming for 20% less CO2 in transport for 2020.

95 grams of CO2/km by 2021 Passenger cars are responsible for 12% of total CO2 emissions in the EU, LCVs produce around 15% and heavyduty vehicles produce 6% of total emissions. The target for new cars in 2021 is 95g of CO2 /km or 4.1 L/100 km of petrol – 3.6 L/100 km of diesel. For new vans the limit is 175g of CO2 /km by 2017. “In the period until 2019 this means that the average emissions over a calendar year from new cars placed on the EU market should not exceed 130g CO2 /km. The Commission is currently working to define new EU fleet targets for the period after 2021. It is expected that a proposal will be made in early 2017”, indicates Anna-Kaisa Itkonen, EU Spokesperson for Climate Action and Energy at the European Commission.

10% of renewable fuels by 2020 For fuels EU legislation requires the GHG intensity to be reduced by 10% within the next five years. “The EU has a 2020 target which requires 10% of all transport fuels to come from renewable sources; in addition, fuel suppliers are required to reduce the carbon content of the road fuels they supply by 6% in 2020 compared to 2010”, she adds.

EVs and hybrids to lower OEMs GHG emissions If a manufacturer’s fleet exceeds its limit value, the cost will be 95 euros after 2019 from the first extra gram onwards. The EU will grant eco-innovation credits to manufacturers equal to 7g/km per year savings for their fleet if they equip vehicles with innovative technologies, based on independently verified data. “Until now some 12 technologies have been approved with several others currently under assessment”, recalls Anna-Kaisa Itkonen.

Regarding alternative powertrains in vehicles fleets, “as a

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New cars in the EU market should not exceed 130 g/km CO2. Less 10% for GHG and 10% fuels from renewable sources are the next five years EU targets.

EU new car fleet CO2 targets 2020: 95 g/km of CO2 for 2020 or 3.8 l/100 kilometer for the new car fleet. 147 g/km of CO2 for light-commercial vehicles or 5.6 l/100 kilometer.

2020-2022: eco-credits for less than 50 g/km CO2 for cars. Super-credits’ limit is a maximum of 7.5 g/km for the period 2020–2022 combined.

020-2030: 25% reduction for fuel consumption, which 2 corresponds to savings of 420 million tons of CO2.

way to incentivise the deployment of low emitting vehicles and facilitate meeting the 95g CO2/km target applicable in 2020, manufacturers can lower their average emissions by including low emitting vehicles in their fleets. If these vehicles emit less than 50g CO2/km, which would be the case for electric and fuel-cell vehicles and some plug-in hybrid vehicles, a multiplier is applied and therefore such vehicles are counted as more than one vehicle (thereby reducing a manufacturers’ average emissions) during the period 2020 to 2022”, precises Anna-Kaisa Itkonen. ■ Antigoni Vokou

DOSSIER I Green Fleet and Alternative Powertrains

No diesel question... yet The growing legislative pressure, the ‘dieselgate’ affair, environmental concerns from all sides – so is there a future for diesel fuel in fleets? Yes, there is, but not for always.

In the medium term I see no change to the demand for diesel. Diesel remains the most efficient solution based on TCO analysis. Clearly if diesel cars are outlawed in cities this will promote a switch to alternative fuel, most likely petrol models. We don’t see EV or PHEV vehicles as a practical solution at this point due to the limited range and the cost. The latter, whilst offering certain tax advantages, only work for the Executive and a small minority of business users. We continue to review alternative mobility solutions for city based colleagues residing in large cities such as London, Paris, etc.”

“ Ivor Johnson, Global Fleet Procurement EMEA, Pfizer

Currently our strategy with regard to diesel engines has not changed, but that’s only a matter of time. For the future I definitely see a change towards alternatives. Plug in hybrids especially will take over some share from diesel, as I expect diesel powered vehicles to be discouraged by governments through higher taxes, while EV technology will become cheaper over the next years. It’s becoming clearer now that diesel emission form a threat to our health, especially in urban regions. Therefore it’s likely that the diesel share will get smaller.” ■

“ Hans den Hollander, Car Fleet Manager EMEAR, Cisco Systems

Tim Harrup

Taxation as fleet strategy driver Green regulation and taxation impact us today in our car policy composition and the vehicle selection of European fleets. According to Fleet Europe expert Tony Elliott, green taxation will only become more directive in the future.

“

The European vehicle fleet market is now heavily influenced by a taxation that is designed to reduce the CO2 emissions emitted by the company vehicles. This taxation is levied against both driver, by way of Benefit in Kind (BIK) taxation, as well as the vehicle drivers’ employers, by way of various purchase taxes, registration taxes and on the taxation element within the fuel purchase price. By splitting the impact of taxation so that it influences both the company vehicle driver and the employer, both parties are controlled in the desire and choice of vehicles offered within the Car Policy.” > From an Essential Tool of the Trade vehicle choice the Fleet Manager will ask the question: ‘What is the

Car Policy that best suits my image, comfort and lifestyle needs, but one that does not incur a heavy Benefit in Kind (BIK) Taxation in my pay cheque?’

Tony Elliott expects taxation to play an even more predominant role in future vehicle selection.

ideal vehicle to carry out the corporation’s required daily work tasks in the most efficient operating cost manner; including that tax heavy and CO2 emitting cost, fuel?’ > From a Non-Essential, Perk vehicle driver point of view, the question would be: ‘What is the very best vehicle that I can choose from the

So, in effect, the company vehicle taxation methods, in whatever disguise, have a very significant effect upon the vehicles chosen for the Car Policy, as well as the vehicle types chosen by the drivers.

As we progress into the year 2017, we can expect to see these ‘Green Taxes’ being made more punitive, and will probably include taxation levied upon other constituent parts of the gases and particles being emitted by all vehicles on our European road infrastructure. ■ Tony Elliott

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DOSSIER I Green Fleet and Alternative Powertrains

Green could become

the new black

In view of the recently held COP21, in Paris, and the agreement that has been reached, it has become clear that we are living in a time of unprecedented commitment to climate supported by a new political ideal.

I

t has also become clear that in order to aim at the goals set fourth, car taxation matters will occupy a central place on Governments’ table: a subtle balance will have to be found, which will not only need to satisfy the ambitions of the parties but also to present a workable roadmap for the economic operators involved, i.e. car manufacturers, fleet owners and drivers. So the question is: where are we now and where are we (probably) heading to?

18 versus 9 Today, a significant number of countries in Europe already offer incentives in order to sustain and promote the use of green cars.

Besides in the more known markets this is e.g. the case in Austria, where electric vehicles are exempt from the fuel consumption tax and from the monthly vehicle tax, in Belgium, where electric vehicles pay the lowest rate of tax under the annual circulation tax, or in the Czech Republic, where electric, hybrid and other alternative fuel vehicles are exempt from the road tax (this tax applies to cars used for business purposes only).

Behavioural change In the future, countries will definitely have to increase the use of environmentally-related taxes. Whether this will be done in a repressive manner (taxation based on CO2 emission) and/or in a more rewarding manner (tax relief for green cars) is still uncertain.

Nevertheless, this is a crucial choice, and failing to reach the right balance can have a very negative impact on the expected effect.

However, not all is doom and gloom. Some Member States have already initiated a ‘change of behavior’: in France for example, French parliament has approved in 2015, albeit by a small majority, an amendment to the law, which would see petrol eligible for the same VAT treatment as diesel (i.e. deduction %). On the 1st January 2016, “green certificates” (called “certificats sur la qualité de l’air”) were introduced and this allows only the least polluting vehicles to circulate in restricted traffic zones established by cities. Also, a bonus of 10,000.00 EUR has been introduced from April 2015 on for purchasers of a new electric car emitting less than 20 grams of CO2 /km, replacing a scrapped diesel vehicle more than 13 years.

Roughly 18 countries in the EU have a favourable car taxation scheme for green powered vehicles, while 9 have none at all.

Bottom line, roughly eighteen countries in the EU have a favorable car taxation scheme for green powered vehicles, while nine have none at all! Amongst the worst performers are Bulgaria, Spain, Estonia, Luxembourg and Poland.

On the other hand, do all Member States levy CO2 based taxes on vehicles? Well, not quite all of them: indeed again Bulgaria, Estonia, Hungary, Italy, Lithuania, Poland and Slovakia are (sadly) to be put aside.

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In Germany, major cities are already no longer allowed to limit access of certain areas to cars meeting predetermined environmental requirements. The benefits in kind of electrically powered company cars undergo a special regime to calculate the benefit in kind.

In The Netherlands, the way of calculating the benefit in kind for a company car changed again on 1 January 2016.

In future, countries will have to increase the use of environmentally-related taxes.

Also, the corresponding maximum CO2 emissions will be adjusted on an annual basis.

In The United Kingdom, the UK Government is continuing to use policy to incentivize use of cars with low CO2 emissions.

Finally, in Belgium, taxation is tending towards incentives for environmentally friendly passenger cars. In 2016 a kilometer charge for at least trucks will be introduced, whereby the rate will fluctuate depending on the time-of-day, the region which is being crossed and the type of road used.

Obviously there is still room for improvement and according to a European Commission study it concerns not only the Member States performing poorly but also those not trying hard enough, namely: Belgium, Czech Republic, Germany, Spain, France, Latvia, Lithuania, Hungary, Austria, Poland, Portugal, Romania and Slovakia.

A balancing act Could it be inferred that following the COP21 European countries will accelerate the process of sustaining alternative powertrains, and will the efforts made be sufficient?

generally want to do the right thing from an environmental point of view but they are also under pressure to balance financial and operational factors. The fact is that the current dominance of diesel has been very much driven by tax regimes and legislation that were designed to place minimizing CO2 at the centre of all emissions thinking. Unless there are changes to tax and the law–and quite dramatic changes– fleets will probably keep favouring diesel because it still provides the best balanced outcome when they come to making fuel choices”.

And of course climate change cannot only be driven from Europe. It is therefore encouraging to note that New Delhi, seen as one of the most polluting cities in the world, has put a ban on the sale of high powered diesel cars (i.e. with engines above 2.000 cc) for three months and doubled the environmental taxes on company cars and trucks.

Car taxation policies that are defined today will thus certainly define what and how we will be driving tomorrow. ■

Erwin Boumans Tax Partner, BDO Belastingconsulenten

It is interesting to quote Ashley Sowerby, managing director at Chevin Fleet Solutions in this respect: “Fleets

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DOSSIER I Green Fleet and Alternative Powertrains

The chicken or the egg Although still in an embryonic stage of market readiness, mainly due a lack of hydrogen fuelling infrastructure, fuel cells might well be the most viable clean mobility solution of tomorrow.

How does it work?

The fuel cell stack, electric engine, battery and hydrogen tank are the main components of the Fuel Cell Electric Vehicle. Basically, the chemical energy contained in hydrogen (H2) is turned into electricity. Every fuel cell has two electrodes, one positive (anode), one negative (cathode). The hydrogen gas flows over the anode and splits into positively charged hydrogen ions and negatively charged electrons. An electrolyte membrane only allows positively charged ions through, so that the negatively charged electrons travel through an external circuit to the cathode creating an electrical current. Finally, at the cathode, electrons and positively charged hydrogen ions combine with oxygen (O2, from air) to create water (H2O).

As fuel cells create electricity chemically instead of by combustion (i.e. burning the fuel), they are not subject to the thermodynamic laws that limit the output of conventional engines. Therefore, fuel cells are more efficient in extracting energy from a fuel. Waste heat from some cells can also be harnessed, further boosting system efficiency. At the same time, the electric engine is used to harvest waste energy during braking (regenerative braking system) and store it in the batteries.

Why you should consider it FCEVs (Fuel Cell Electric Vehicles) have an unmistakeable high-tech green appeal. Their emission and noise free propulsion makes them highly suitable for urban traffic, while their 500 km radius of action obliterates any range anxiety commonly associated with electric vehicles. Refuelling only takes a couple of minutes.

FCEVs require little maintenance: their electric engine is quite basic in design and operates without oil, filters, spark plugs, etcetera. At the same time, their brakes last longer as the electric engine is used to slow the car down. The fuel cell should theoretically outlive the car.

As they do not emit any CO2 or harmful gases, FCEVs benefit from fiscal benefits granted by local authorities.

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How realistic is it?

Originally developed for space missions (1960s) and submarines (1980s), fuel cells only found their way to passenger vehicles at the beginning of the millennium. As the high R&D costs can only be carried by a few thousand vehicles today, FCEVs are twice as expensive as their conventionally powered peers. This extra cost cannot be leveraged by the lower maintenance and repair costs or tax benefits. Moreover, as there is no actual market for FCEVs yet, the price of hydrogen is determined artificially. Currently, a kilo of hydrogen costs about 10 EUR and allows you to drive 100 km – hardly more competitive than a comparable diesel or petrol car.

The biggest issue, however, remains the perpetual impasse facing every new technology that requires a whole new infrastructure to be deployed: there are hardly any hydrogen refuelling stations, because there are hardly any FCEVs, and vice versa. Europe has less than 100 fuelling points, a third of which are located in Germany. Other question marks regard the way in which hydrogen is produced – varying from eco-friendly electrolysis of water using wind power all the way through to very eco-unfriendly steam reforming of fossil fuels – and the environmental impact of the batteries when they are recycled. And as for model variety: it’s either sushi or Korean beef. ■ Dieter Quartier

In a nutshell Fuel cell vehicles are basically electric vehicles that have their own power plant, which uses pressurised hydrogen as fuel to create electricity. This allows them to drive long distances (500 km), contrary to electric vehicles (up to 200 km, Teslas aside), with no tailpipe emissions but clean water. Refuelling takes just a couple of minutes.

The market today and tomorrow Mercedes-Benz, BMW and PSA have hinted at the launch of a FCEV by 2017-2018 and Honda is considering bringing their brand new Clarity to Europe. Until then, early adopters can choose between the Hyundai ix35 FCEV and Toyota Mirai.

Hyundai ix35 FCEV

Toyota Mirai

Hyundai was the world’s first car maker to manufacture hydrogen-fuelled cars in series production. The ix35 is the third-generation FCEV from Hyundai, which introduced the Santa Fe FCEV back in 2000 and since then has invested considerably in R&D to become the hydrogen pioneer it is today. Meanwhile, 250 ix35 FCEVs are travelling across European roads. It is available in 13 European countries through 30 dealers and is said to offer everyday usability thanks to its 594 km range and SUV features. Hyundai expects to build anything between 2,000 and 10,000 units per year as from 2016.

Customers have the choice between outright purchase and operating lease.

Contrary to the Hyundai ix35 FCEV, the Mirai is a separate model built to the purpose, allowing for a clever packaging of components (hydrogen tanks, fuel cell, battery, electric engine). The fuel cell that sits underneath the Mirai’s sleek, aerodynamic four door body boasts a power density of 3.1 kW/l and is the lightest and most compact unit on the market. Based on its experience with their first hybrid and bearing in mind the obstacles, Toyota reckons to sell 30,000 units per year by 2020. In Europe, however, the number of Mirais will be limited to 100 per year for 2016 and 2017, most of which go to Germany and the UK. They are only available as part of a 5 year/120,000 km operating lease contract.

Fuel Cell Comparison HYUNDAI IX35 FCEV

TOYOTA MIRAI

LENGTH

4,410 mm

4,890 mm

WIDTH

1,820 mm

1,815 mm

HEIGHT

1,655 mm

1,535 mm

2,250 kg

1,850 kg

CURB WEIGHT LUGGAGE COMPARTMENT DRIVING RANGE FUEL EFFICIENCY (NEDC) TOP SPEED ACCELERATION, 0 TO 100 KM/HR FUEL CELL OUTPUT POWER BATTERY TYPE FUEL (TANK CAPACITY) SALES PRICE/MONTHLY LEASE RATE (GERMANY)

551 L

361 L

588 km

550 km

0.95 kg H2 /100km

0.76 kg H2 /100km

160 km/h (100 mph)

178 km/h (110 mph)

12.5 seconds

9.6 seconds

100 kW

114 kW

Lithium-ion

Nickel-metal hydride

Hydrogen (700 bar, 5.6 kg)

Hydrogen (700 bar, 4.7 kg)

55,000 EUR excluding VAT/1,290 EUR (48 m/100,000 km)

66,000 EUR excluding VAT/ 1,219 EUR (48 m/80,000 km)

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DOSSIER I Green Fleet and Alternative Powertrains

The black sheep called diesel CNG and hybrid seem to be the only realistic alternatives for diesel today. But does the favourite fleet fuel deserve the vilification it is subjected to? Not necessarily, especially since Euro 6.

D

iesels have many advantages: they are economical to run, offer the best range, have high residual values (for now) and emit less carbon dioxide than petrol cars. Even a hybridophile carmaker as Toyota acknowledges that diesel is a crucial part in achieving their CO2 objectives and still has a considerable development potential. The main focus in this respect is on decreasing both the internal friction in the engine and the energy losses. As a reminder: diesel engines have an efficiency rate of 40%, which is only half that of electric engines.

The biggest issues with self-combusting engines remain the amount of particulate matter and NO x they emit. However, with the introduction of the two most recent European emission standards, car constructors have installed the necessary technologies do decrease both toxic exhaust products considerably.

A Euro 6 diesel (2015) is therefore many times cleaner than a Euro 4 one (up to 2009). To put it in other terms, “Clean diesel”, a label used in recent years by various OEMs to highlight their NO x advantage over the competition, has become the norm since Euro 6.

Euro 5: 5 times less PM Particulate matter is essentially a combination of carbon, water, sulphur oxide, non-combusted hydrocarbons and metallic oxides. It is usually divided into two main groups, depending on size: PM10 (up to 10µm) and PM2.5 (up to 2.5µm). Diesel engines (and direct injection petrol engines for that matter) vaporize fuel into tiny droplets. The finer the droplets, the better the fuel mixes with the air and the more efficiently it combusts. However, some non-combusted droplets end up in the exhaust system, where they form clusters with carbon, water, oxidised sulphur (contained in diesel fuel) and oxidised metals (coming from engine wear).

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Euro 6 “Clean Diesel” standard means for carmakers to lower the combustion temperature by exhaust gas recirculation (EGR) and to treat the exhaust gases by selective catalytic reduction (AdBlue).

The finest PM is breathed deep into our lungs and can get into our bloodstream. Exposure to such particles can affect both our lungs (asthma, cancer…) and our heart. Moreover, PM can be carried over long distances by wind, settle on ground or water and enter the food chain. That is why Europe introduced the Euro 5 emission standard, which allows only 5 milligrams of PM per kilometre driven, instead of 25 before (Euro 4).

The solution consists in trapping the PM in a particulate filter system, where it is oxidised at high temperature to CO2 and water.

Euro 6: NOx minus 56% Nitrogen oxides are a combination of a nitrogen atom with one or two oxygen atoms (NO, NO2). It originates from the high compression that occurs in a diesel engine. In a nutshell: the air that we breathe is primarily composed of (di)nitrogen (78%). Due to the extreme pressure and temperature in the combustion chamber of a diesel engine, this harmless dinitrogen (N2) splits into two separate atoms, which in turn oxidise, i.e. bind with one (NO) or two (NO2) oxygen atoms.

Once released into the atmosphere, such compounds contribute to the formation of particulate matter, ground-level ozone (smog) and acid rain. This prompted the EU to put a tab on NO x emissions with the introduction of the Euro 6 standard. Before Euro 6 (introduced in September 2014), diesels were allowed to emit 0.18 rams of NO x per kilometre; now it is just 0.08 g/km. To comply with the rigid Euro 6 standard, carmakers resort to lowering the combustion temperature by exhaust gas recirculation (EGR) or a lower compression ratio, and to treating the exhaust gases by selective catalytic reduction (AdBlue).

Biodiesel: part of the solution?

Biodiesel can be produced from vegetable oil (usually rape seed oil, soy beans or sunflower pips), combined with (bio) methanol or ethanol, and is therefore a fuel that is considered renewable. It doesn’t contain sulphur nor aromatics. It can be used in pure form (B100), but mostly it is blended with petroleum diesel (B5 or B20, i.e. 5% or 20%). The main advantages of biodiesel are that it produces far less carbon monoxide, non-combusted carbohydrates and particulate matter.

It is CO2 neutral, non-toxic, biodegradable, easy to produce and does not require engine modifications.

Diesels will become more and more expensive

So it’s here to stay?

With emission standards becoming ever more stringent, diesels will become more and more expensive and maybe even lose their financial benefits over CNG and hybrids – unless their efficiency will keep increasing. OEMs aim at a 45% efficiency rate by 2020, compared to about 40% today. One of the solutions under investigation is exhaust energy recuperation. Apart from that, engineers are working on lowering the internal friction in the engine. New materials will also allow for higher pressures and temperatures in the combustion chamber, enabling the development of smaller and more efficient engines. Diesel may be under scrutiny, but it is not on its way out yet.

Nonetheless, most OEMs state that the factory warranty is void when the amount of biodiesel is higher than 5% because of possible engine failure when biodiesel of poor quality is used, but this restriction is not necessarily an issue as most biodiesel pumps distribute B5. A more important drawback is that biodiesel comes at a social and ethic price: land used to produce vegetable oil for biodiesel cannot be used for food production. In some countries it might even lead to further deforestation – hardly a desirable outcome, to say the least. ■

Dieter Quartier

Before Euro 6, in 2014, diesels were allowed to emit 0.18 grams of NOx per kilometre. Now it is just 0.08 g/km.

NEW TYPE APPROVALS

ALL NEW CARS REGISTERED

DIESEL NOX

DIESEL PM

EURO 0

1 Oct 1991

1 Oct 1993

1,600 mg/km

(no limit)

EURO 1

1 Jul 1992

31 Dec 1992

780 mg/km

140 mg/km

EURO 2

1 Jan 1996

1 Jan 1997

730 mg/km

100 mg/km

EURO 3

1 Jan 2000

1 Jan 2001

500 mg/km

50 mg/km

EURO 4

1 Jan 2005

1 Jan 2006

250 mg/km

25 mg/km

EURO 5

1 Jan 2009

1 Jan 2011

180 mg/km

5 mg/km

EURO 6

1 Sep 2014

1 Sep 2015

80 mg/km

5 mg/km

EURO STANDARD

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DOSSIER I Green Fleet and Alternative Powertrains

To plug in or not to plug in We have come a long way since the quaint looking modest hybrid of yore. Initial scepsis has changed into general enthusiasm on the car constructors’ side, with a preference for PHEVs. How does it work?

There is no such thing as “a hybrid”. In fact, there are at least 3 different types to be distinguished: mild, full and plug-in. The degree of electrification – in layman’s terms: battery and electric engine size – determines how economical a hybrid drives. A mild hybrid is moved exclusively by a conventional engine, which gets assistance from a modest electric engine coupled to a small battery. A more advanced and the most widespread type of hybrid is the ‘full hybrid’, made popular by Toyota.

These hybrids are more efficient because they can automatically choose to operate in parallel mode (petrol and electric) or all-electric mode.

Some hybrids can also operate in series mode, in which case the ICE does not drive the wheels directly, but operates as an on-board generator to charge the batteries. The most advanced form of hybridisation has evolved from the conventional ‘full hybrid’: they are equipped with batteries of a greater capacity and can be charged on an electric network. The main advantage of these plug-in hybrids (also called PHEVs) over non-plug-in hybrids is that they boast even lower CO2 emissions thanks to their enhanced electric-only driving capabilities.

Why you should consider it The extra investment cost of non-plug-in hybrids or HEVs is easy to win back if they are used in and around cities, where they make the most out of their fuel saving concept, as they can recover energy whilst braking or coasting. They drive like an automatic and are easy to use as they require no external charging. Plug-in hybrids or PHEVs, however, offer higher tax advantages thanks to the even lower CO2 emissions. Up to a certain level, a PHEV lends itself to motorway driving, as it has a CVT or a multi-speed automatic transmission to lower the ICE engine speed. There are both diesel and petrol (P)HEVs available.

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How realistic is it?

HEVs are highly suitable for slow and medium speed motoring: under these conditions, their combustion engine is only turned on when necessary, leaving the job of moving the car to the electric engine and battery as much as possible. When no power is needed, the electric engine acts as a dynamo and transforms the rotational movement of the wheels into electricity to feed the batteries. The other side of the coin is that the batteries are drained instantly when driving at constant speeds of 60 km/h or more.

More than anything, the real fuel consumption and emissions of a PHEV depend on the discipline of the driver to plug his car in as much as possible. Driving around with empty batteries makes little sense: they only weigh the car down and increase fuel consumption if they cannot contribute to the propulsion of the vehicle. Charging takes in between 30 minutes and 12 hours, making ahead planning a must. Moreover, their higher investment price cannot be earned back by tax benefits and lower fuel consumption alone. Their relatively strong residual value can in some cases soften the blow. ■ Dieter Quartier

In a nutshell Hybrid vehicles combine a conventional internal combustion engine (ICE) with a battery pack and electric engine. They can drive purely on electricity for a short distance (depending on their battery size), but generally use their electric powertrain to support the ICE, thereby increasing its fuel efficiency. The main differentiator on today’s market is the ability or not to charge the batteries externally, i.e. plug the vehicle in.

The market today and tomorrow It took Toyota 6 years to build and sell 120,000 unit of the first Prius, which was launched in 1997. Today, the world’s leading car manufacturer sells 1.3 million hybrids per year, reflecting the exponential growth. Even the most critical of (German) brands had to face the facts and realize they missed the train. But they have closed the gap and are expanding their hybrid offer fast. Contrary to Toyota and Lexus, European brands prefer plug-ins.

With good reason: they are more suitable for the European vehicle usage and offer higher performance. These are the rechargeable primadonnas of 2016.

BMW 330e

Hyundai IONIQ

Take a regular 330i, make its four cylinder petrol engine as fuel efficient as possible, ad a 88 hp electric engine and a 7.6 kWh battery et voilà: you get Freude am Fahren in a most electrifying way. 0 to 100 km/h in 6.1 seconds, an e-range of 40 km and a theoretical fuel consumption of just 1.9 L/100 km equalling 44 g of CO2 per km.

It almost sounds too good to be true. Which it probably is in real life. It’s either performance or extreme economy: you can’t have your cake and eat it too.

Hyundai has confirmed that its Toyota Prius-defying IONIQ will be the first car in the world to offer a choice of three efficient and ultra-low emission powertrains: full electric, plug-in hybrid and conventional hybrid. It combines class-leading aerodynamics with environmentally-friendly interior materials. The IONIQ makes its European debut in March during the 2016 Geneva Motor Show.

KIA Optima PHEV

Volvo S90 T8 Twin Engine

Although only available in a conventional 1.7 CRDi diesel configuration today, KIA’s recently launched D-segment challenger will get a plug-in version in the course of 2016. Its drivetrain will consist of a 9.8 kWh lithiumpolymer battery, a 67 hp electric engine and a 2.0 four cylinder petrol engine delivering 154 hp to the front wheels through a 6-speed automatic transmission. KIA aims at an electric only range of 45 kilometres.

The recently revealed S90 sends out a strong design message and borrows its technology from its successful SUV brother, the XC90, including the acclaimed plugin hybrid powertrain. This consists of a highly efficient 2 litre turbocharged petrol engine, an eight speed automatic transmission and a rechargeable battery pack.

A less powerful non plug-in hybrid with a 1.5 three cylinder should follow.

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DOSSIER I Green Fleet and Alternative Powertrains

EVs will go a long way… eventually Electric vehicles drive soundless and emission-free, offer TCO savings opportunities and are far more efficient well-to-wheel than conventional cars. Just one hurdle remains: to become suitable for long distances.

How does it work?

The idea behind an electric engine is actually quite simple: you put electricity (coming from the battery pack) into it at one end and an axle rotates at the other, giving you the power to drive the wheels. Essentially there are two parts: there is a permanent magnet around the edge of the engine casing that remains static. Inside the stator, there is a coil of copper wire, mounted on an axle that spins around at high speed.

Electric engines deliver instant torque and do not need a conventional gearbox or clutch. They drive like a car with an automatic transmission.

Contrary to internal combustion engines, that can only turn 25 to 40 % of the energy contained in their fuel into movement (most of the energy is wasted as heat), electric engines boast an energy efficiency of 80%. Moreover, electric drive vehicles do not consume energy while at rest or coasting, and some of the energy lost when braking is captured and reused through regenerative braking. Up to 20% of this otherwise wasted kinetic energy can be harvested and turned back into electricity. The amount of regenerative braking, i.e. how fast the car slows down, can be set by the driver.

Why you should consider it Electric cars put a smile on many a face as they are synonym to quiet and zero emission driving. They are reliable and require very little maintenance, as their engine basically has five moving parts, compared to a gasoline or diesel car that has hundreds of components. Electricity is most cases cheaper than petrol and diesel, especially when the car can charge at night. Electric cars are significantly more expensive than conventional vehicles due to the cost of their lithium-ion battery pack. However, battery prices are coming down about 8% per annum with mass production, and are expected to drop further. Depending on the car and how it is used, EVs can have a lower TCO than conventional cars.

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How realistic is it?

EV technology has evolved considerably in the past decade, increasing their operating range from just 80 km to 150 km. In most cases, this should cover the daily commute to the office, but rules out long distance travel (apart from the Tesla Model S, that gives you a 300 km range realistically speaking). Also, cold weather presents two main challenges for electric vehicles: cold air limits battery performance, and running the heater drains the battery. Charging takes up to 12 hours, unless you can find a fast charging point (30 minutes). The good news is that the cost of a home (or office) charging installation is no longer an obstacle and that public charging stations are appearing everywhere. From 30,000 today, we should see 800,000 of them throughout Europe by 2020.

Be that as it may, electric cars are not completely harmless to our planet. Most EVs use Lithium-ion batteries, which weigh down the car, so for the rest of the car, engineers have to resort to lightweight materials that require huge quantities of energy to produce. In addition, these expensive batteries only last 5 to 8 years on average, making the car an economic ‘total loss’ when they need replacing and undermining its residual value, and recycling them comes at an environmental price. Last but not least: the car itself may not emit any greenhouse gases, the production of the electricity to charge the batteries does. ■ Dieter Quartier

In a nutshell Electric vehicles have 1 or more electric engines powered by batteries that are usually stowed away in the vehicle’s underbody. These batteries can be charged by connecting the vehicle to the mains or to a (fast) charging point. The current generation of batteries in the small and mid-sized vehicle segment offers an average realistic range of 150 km.

The market today and tomorrow The number of EVs available in Europe is increasing month by month, while their performance and range slowly move up the growth curve as batteries grow smaller and more powerful. Is the time ripe for fleets to abandon petrol and diesel? Maybe so, all the more if you consider that it will probably be possible to swop your car’s current batteries for new, more efficient ones in the future. Here’s a selection of the new arrivals in 2016.

BMW i3

Ford Focus

BMW’s first attempt at a compact electric vehicle is supposed to get a ‘battery facelift’ by the end of 2016, boosting its range to 200 km. Should that still not be enough, customers can have their i3 equipped with a range-extender – a petrol powered generator that allows you to get to the next charging station when the batteries are dead. Brilliant for some, a contradiction in terms for EV purists.

America’s 2nd largest vehicle constructor believes in electrification: by 2020 it will have invested 4.5 billion dollars in e-mobility. The first EV from Ford available in Europe takes the shape of a C-segment car with which we are all familiar: the Focus. The 2016 model offers an integrated quick charger, allowing you to charge the batteries to 80% in 30 minutes. Nonetheless, the maximum range is limited to 162 km.

Nissan Leaf

Tesla Model X

Nissan leverages more EV experience than most of its competitors: in the past 6 years it has sold more than 170,000 units worldwide of the Leaf. This iconic C-segment car gains a new 30 kWh battery in 2016, allowing it to drive for 50 km more (250 km instead of 199). Equally interesting is that the Leaf now features navigation maps that show available (i.e. not occupied) charging points in realtime.

The highly anticipated BMW X5 competitor from the California-based premium EV maker. Behind its falcon wing doors, this gizmo-packed SUV offers room for 7 and their luggage. The driving range of this powerful 4x4 is 470 km – in theory, of course – while 0 to 100 km/h takes less than 5 seconds. It is supposed to have advanced autonomous driving capabilities and got a 5 star safety rating in the North American NHTSA crash tests.

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DOSSIER I Green Fleet and Alternative Powertrains

Clean as a whistle Compressed natural gas (CNG) is currently the cleanest and least expensive fossil fuel on the market. Italians love it, and so do German taxi companies. Is the rest of Europe soon to follow?

How does it work?

CNG vehicles are equipped with two fuel tanks: commonly a small one for petrol (20 litres) and a large one for gas (about 20 kg), although some cars keep their original full-size petrol tank. The CNG tank is usually integrated in the trunk, sacrificing part of the available luggage room. The amount of pressure may vary from engine to engine, but it is usually compressed to around 250 bar. The compressed gas in the tank passes through a series of highly pressurized lines until it reaches the regulator, where the pressure on the gas is lessened until it matches the amount needed by the fuel injection system of the car's engine.

CNG tends to corrode and wear the parts of an engine less rapidly than petrol. There is generally less wasted fuel. With a compressed natural gas engine, the mixing of the fuel and the air is more effective, but at typical CNG compression pressures the fuel itself is less energy dense than gas or diesel, thus the end result is a lower energy dense air-fuel mixture. For the same cylinder displacement engine, a CNG powered engine is typically less powerful than a similarly sized gas or diesel engine.

Why you should consider it The world’s natural gas reserve is far greater than that of oil. The fuel is taken from a pump in exactly the same way as one which uses ordinary petrol or diesel fuel. The driver can alternate between the petrol and the CNG tank, drawing fuel from either.

When the car runs out of CNG, it can switch to petrol, extending the range with a few hundred kilometres.

CNG emissions are cleaner, with up to 15% lower emissions of carbon and 95% lower particulate emissions per equivalent distance travelled than diesel. Moreover, CNG can be mixed with biogas from fermenting biomass (or e-gas), further enhancing its sustainability credentials.

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How realistic is it?

CNG is harder to find than petrol and diesel: there are only 3,000 stations in Europe, one third of which in Italy, another third in Germany and the final third spread throughout the remaining countries. However, it is possible to have a gas pump station installed on the company’s premises, as long as there is a connection to the domestic gas network. Nonetheless, this type of filling stations work more slowly than commercial ones: filling up a car at the office or at home takes several hours, as compared to just a couple of minutes.

On the other hand, Europe is investing  160 million in the development of CNG stations, so that they will be located at a maximum distance of 150 km all over Europe by 31 December 2020. The idea is to promote CNG as a sustainable alternative for petrol and diesel.

For the time being, the CNG vehicle offer is limited, but with dieselgate in mind, CNG might be a very realistic alternative in the short run, prompting the development of more gas-powered models. All that needs to be done by OEMs, so to speak, is take an existing petrol version, fit it with some extra pressure tanks and adapt the fuel system. ■ Dieter Quartier

In a nutshell CNG vehicles are basically petrol cars that have been factory-adapted to run on natural gas, which is stored under high pressure in an extra tank. Natural gas essentially consists of methane and is also used for heating and cooking. Unlike LPG vehicles, CNG cars are not banned in underground car parks or Eurotunnel. As they can run both on natural gas and petrol, their driving range equals or surpasses that of diesels.

The market today and tomorrow Decades ago, natural gas incredibly enough used to be flared off or pushed back into the earth because there was no market for it. Today, it is used in households, industry, energy production and in a fast increasing number of vehicles – from buses and lorries to small city cars. There are 1.5 million CNG vehicles on the road in Europe, with sales expected to grow by a whopping 700% by 2020. Opel, VW, Mercedes and Fiat are CNG believers of the first hour and will continue to expand their product portfolio, while BMW and Volvo offer Bi Fuel variants on selected markets.

Audi A4 Avant g-tron

Mercedes E Class NGD

Due for late 2016, the Audi A4 Avant g-tron uses a 170 hp 2.0 TFSI with an innovative combustion technology to lower the NEDC fuel consumption to less than 4 kg/100 km, which corresponds to 100 g CO2 per km, allowing the premium D-segment estate to travel up to 500 km on CNG plus another 400 km on petrol. The 4 cylindrical gas tanks are shaped to make optimum use of the room in the car’s cargo floor.

The recently unveiled new Mercedes E Class will be offered with diesel, petrol, hybrid and CNG powertrains.

Not much is known at this moment, but the previous E Class NGD (Natural Gas Drive) model was powered by a 156 hp turbocharged 2.0 four cylinder combined with a 7 speed automatic transmission. Its CO2 emissions are expected to be around 100 g/km, but chances are the diesel versions will do even better – and cost less.

Fiat Tipo CNG

Volvo V60 Bi-Fuel

The Bravo left the scene a year and a half ago, but finally reincarnates in a car that is built in Turkey and listens to the iconic 80s name ‘Tipo’. Unlike its predecessor, it will first be offered as a four door sedan, later followed by a hatchback and break derivative. Although not confirmed, there is reason to believe that it will offered with a CNG powertrain, as Fiat has both a normally aspirated and a turbocharged 1.4 configuration available, in the Qubo and Punto (70 pk), and the Doblo (120 pk) respectively.

The Volvo V60 is not new, but its Bi-Fuel petrol/CNG version is. It is based on the innovative direct injection T5 engine, a turbocharged 2 litre four cylinder that delivers 245 hp and 350 Nm of torque to the front wheels through an automatic 8 speed gearbox. Thanks to the CNG system, the T5’s CO2 emissions drop from 149 to just 116 g/ m, equalling 4.3 kg of CNG per 100 kilometres driven. Its total range is 1,120 km. It will be available in Sweden, Belgium and Luxemburg.

FLEET EUROPE # 81

P.25

DOSSIER I Green Fleet and Alternative Powertrains

FUEL CELL

HEV/PHEV

EV

CNG

Hydrogen

Petrol or diesel + electricity

Electricity

Compressed Natural Gas

Electric

ICE + electric

Electric

ICE



- (electricity-fossil fuel)







/





MAINTENANCE & REPAIR









CHARGING/FUELLING INFRASTRUCTURE

----

-/++++ (electricity-fossil fuel)

-

--

TAILPIPE EMISSIONS

++++

+/++

++++

+

RANGE

++

+++

+

++++

TCO SAVINGS POTENTIAL

--

++

+

+++

CHARGING/FUELLING TIME

++

---/++++

---

++

GREEN IMAGE

++++

++

++++

++

MODEL AVAILABILITY

----

+

-

+

OVERALL FLEET READINESS

---

++

-

++

SHORT-TERM DEVELOPMENT POTENTIAL

-

+++

++

+++

PRO

• Zero tailpipe emissions (except for H2O) • Green image • Serene driving experience • Fiscal benefits (0 g CO2) • No range anxiety

• Fuel saving potential in and around cities • Green image • Everyday usability • Fiscal benefits (low CO2 emissions) • Lower maintenance costs

• Zero tailpipe emissions • Green image • Serene driving experience • Fiscal benefits (0 g CO2) • Very low maintenance costs

• Total range CNG + petrol • Up to 50% quieter than diesel • Up to 10% less CO2 than diesel • Fuel cost saving potential • Almost no PM emission

CON

• Total lack of infrastructure • Higher costs not offset by financial benefits • Production of hydrogen creates emissions • Very limited model variety • Impact on environment of battery recycling

• Less suitable for highway use • Limited e-charging infrastructure (PHEV) • Higher purchase price not offset (PHEV) • Charging discipline required (PHEV) • Impact on environment of battery recycling

• Not suitable for highway or cold climate use • Limited e-charging infrastructure • Higher purchase price not offset • Charging discipline required • Impact on environment of battery recycling

• Limited CNG infrastructure • Still producess tailpipe emissions • Refueling discipline required • Boot space sacrified • Limited CNG range

TYPE OF FUEL TYPE OF ENGINE FUEL COST PURCHASE COST

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FLEET EUROPE # 81

DOSSIER I Green Fleet and Alternative Powertrains

Diesel is still ruling The share of alternative powertrains grew slightly in Europe, both for private and fleet customers, albeit it still remains on rather low levels with 5.3% (Private Market) and only 4.4% (True Fleets) respectively.

F

leet customers still opt for a diesel engine.

Looking at the Top-10 models within the True Fleet Market in Europe* in the first 10 months of this year, the share of diesel engines is 80.6 per cent. For some popular models like Volkswagen Passat or Audi A4 the ratio is exceeding 90 per cent but also Peugeot 308 fleet customers clearly prefer Diesel with a share of maybe unexpected 89 per cent.

Nevertheless, diesel share in fleets slightly declined from 69.9 per cent (January-October 2014) to 68.2 per cent year-to-date 2015. Both fuel types, petrol and alternative, gained 0.9 percentage points in the same period.

In the Private Market the percentage of diesel engines dropped even more and now ranges below 40 per cent for the first time since 2009; a year which was heavily biased by a scrappage scheme in Germany and consequently an enormous volume of Mini and Small Cars with petrol engines.

POWERTRAIN SPLIT January-October 2015

4.4% Alternative

27.5% Petrol

68.1% Diesel

ALTERNATIVE POWERTRAINS SHARE New Car Registrations

PC NEW REGS

ALTERNATIVE SHARE JAN-OCT’15 JAN-OCT’14

Norway

20.9%

15.2%

Netherlands

18.0%

15.0%

Sweden

10.8%

7.6%

Switzerland

5.6%

4.0%

Italy

5.3%

5.5%

France

5.0%

3.5%

Spain

3.5%

3.1%

Belgium

3.5%

3.3%

United Kingdom

3.4%

2.4%

Finland

2.9%

2.6%

EUROPE-16

4.4%

3.5%

True Fleets Only; EUROPE-16 = Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Italy, The Netherlands, Norway, Poland, Slovakia, Spain, Sweden, Switzerland, United Kingdom.

Alternative doesn’t mean electric only Looking across Europe the picture is very fractured.

This is already visible by looking at the No. 1 in alternative fuel types in Europe, Volkswagen Golf. The compact car accounts for some 12,700 True Fleet registrations in EUROPE-16 of which 53 per cent are represented by the Electric/Petrol hybrid version Golf GTE. The full electric e-Golf reached almost 1,700 registrations, most of them in Norway and Germany. Behind the Golf the ranking shows three models with a Hybrid engine: Mitsubishi Outlander PHEV, Toyota Yaris and Toyota Auris Touring Sports.

The Outlander is number two in the Netherlands and Sweden and leads the group of alternative models in the UK. Toyota Yaris is performing very strongly in many markets ranking within the Top 3 in eight different countries.

True fleet Europe-16

Although the alternative overall share might be somewhat disappointing, there is at least a clear trend visible in True Fleets. In 15 out of the 16 markets, included in this analysis, the share increased compared to the previous year.

The only exception is Italy due to a significant decreasing of CNG and LPG registrations.

The most impressive increases were achieved in Norway, the Netherlands and Sweden but Switzerland and France also report remarkable results.

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FLEET EUROPE # 81

Position number five is occupied by Tesla Model S followed by another set of Electric/Petrol hybrids: Audi A3 e-tron, Toyota Auris and Lexus NX. The Top-10 are then completed

by Mercedes C-Class that is available as Electric/Petrol (C 350e) and Electric/Diesel (C 300h) and BMW i3 (both full electric and the range extender version).

Outlook is promising but not yet euphoric On the first view, the figures for alternative powertrains are sound but not sensational. OEMs are still stressing the need for governmental support and programs in order

ALTERNATIVE POWERTRAIN PREFERENCE

THE NETHERLANDS

NORWAY

SWEDEN

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

JANUARY-OCTOBER 2015 FUEL TYPE ALTERNATIVE VW GOLF MITSUBISHI OUTLANDER AUDI A3, S3 TOYOTA AURIS TOURING SPORTS VOLVO V60

JANUARY-OCTOBER 2015 FUEL TYPE ALTERNATIVE VW GOLF TESLA MODEL S TOYOTA YARIS TOYOTA AURIS TOURING SPORTS NISSAN LEAF

JANUARY-OCTOBER 2015 FUEL TYPE ALTERNATIVE VW GOLF MITSUBISHI OUTLANDER TOYOTA YARIS TESLA MODEL S LEXUS NX

True Fleets

to reach more relevant volumes. It is somewhat unpredictable if that will happen but in fact there are changes ahead which surely will increase the pressure especially on Diesel engines and will help electric and hybrid cars.

Taxation and legislation might be “unsexy” topics but there is no doubt that they have a massive impact on markets. Car manufacturers will need to invest considerably in their diesel engines in order to fulfil future emission standards. Reaching a target of 95 g CO2 /km will get very difficult without electrification, especially for popular vehicle segments like SUV or Middle Class. In the end diesel powertrains will become more costly compared to petrol, hybrid or electric engines. And presumably tax

surcharges for “Selbstzünder” won’t make life easier for this kind of drive-trains. In at least some of the European major cities they even might be banned in a couple of years.

As these kind of cars are getting more and more into the focus, the OEMs will certainly offer a larger range of hybrid and full electric models which will push registrations even further. ■ Michael Gergen Account Manager International

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 Green Fleet and Alternative Powertrains

Clean cars EU network by ���5 Alternative powertrains are necessary to reach a zero-emissions transport and mobility future. To be able to use them at their best potential one crucial thing is needed in Europe: sufficient and harmonized infrastructure.

A

major reason holding back the expansion of alternative fuels among fleets so far is insufficient re-charging stations. The quicker a harmonized clean vehicles infrastructure expands, the sooner the costs will come down and by extent companies’ interest into opting for alternative engines will grow. The European authorities accelerated the pace with an Alternative Fuel Directive and a new interoperability center.

During the third quarter of 2015 alternative fuel vehicle registrations increased by 13.4% in the EU, reaching 127,661 units. The European Commission established a major Alterative Fuel Directive as part of the Clean Power for Transport package which was adopted on 29 September 2014. It requires member states to settle policies for a minimum level of infrastructure for electricity, hydrogen and natural gas (LNG and CNG).

“Achieving 2030 GHG reduction targets requires extra effort in all sectors, including transport fuels. For this reason the EU adopted the “alternative fuels infrastructure directive” which requires Member States to plan for the deployment of gas and electric refuelling points”, explains Anna-Kaisa Itkonen, EU Spokesperson for Climate Action and Energy at the European Commission.

A TEN-T network of refuelling stations by 2030 The Directive 2014/94/EU requires a minimum of one charging point for ten electric vehicles by 2025, all using a common plug, at least in urban and suburban areas. In comparison, US and China have settled targets for 6 million electric vehicles on the road by 2020. For LNG there have to be stations every 400km, and for CNG every 250 km. There have to be sufficient common standard refuelling points for hydrogen.

Those re-charging/refuelling points must also be deployed on the TEN-T network which by 2030 will connect 94 EU ports and 38 airports with rail and road links into major cities, and upgrade 15,000 km of railway to high speed lines. TEN-T policy’s target is to decarbonize transport. “The Ten-T pays particular attention to grid infrastructure for e-mobility, LNG

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FLEET EUROPE # 81

terminals and other “clean fuel infrastructure”, which are vital to substantially increase the use of “clean fleets”, specifies Mirna Talko, Press Officer Research, Science and Innovation at the European Commission.

Currently, the European authorities haven’t planned new objectives after 2020 regarding the GHG intensity for the EU Member Country

EU Infrastructure Targets by 2020

Member States Plans for Evs

AUSTRIA

12.000

250.000

BELGIUM

21.000

BULGARIA

7.000

CYPRUS

2.000

CZECH REPUBLIC

13.000

GERMANY

150.000

1.000.000

DENMARK

5.000

200.000

ESTONIA

1.000

GREECE

13.000

FINLAND

7.000

FRANCE

97.000

2.000.000

HUNGARY

7.000

IRELAND

2.000

350.000

125.000

130.000

ITALY LITHUANIA

4.000

LUXEMBOURG

1.000

LATVIA

2.000

MALTA

1.000

NETHERLANDS

32.000

POLAND

46.000

PORTUGAL

12.000

ROMANIA

10.000

SPAIN

82.000

SLOVAKIA

4.000

40.000

200.000 200.000 2.500.000

SLOVENIA

3.000

14.000

SWEDEN

14.000

600.000

UNITED KINGDOM

122.000

1.550.000

EU’s clean fuel directive aims 800,000 publicly accessible EV charging stations to be implemented by 2020 in all 28 Member States.

Commission Européenne

Tests at the E-Mobility Electromagnetic Testing Facility will improve communication between charging stations, smart grids and clean cars to reduce the costs of clean technologies and boost business opportunities in Europe.

fuels, but the Research & Development of clean fuels keeps being constantly financially enhanced. “However the Commission does not think it appropriate to establish new targets for renewable energy or the greenhouse gas intensity of fuels used in the transport sector after 2020 although the Energy Union Communication said the EU needs to invest in advanced, sustainable alternative fuels, including biofuels”, develops Anna-Kaisa Itkonen.

Harmonize refuelling stations The EU’s Joint Research Center (JRC) inaugurated, on October 29 last year, an interoperability center in Italy aiming for full harmonized communication between re-charging stations, smart grids and clean cars. “The Interoperability labs will work on the deployment of e-mobility/smart grid solutions by making sure that all components of the system “speak the same language” – that is, by demonstrating how applications, devices and technologies can work together, and can be integrated into the system efficiently and according to recognised standards”, analyzes Mirna Talko.

Four laboratories composing it will work together in the interface between electric-vehicles and smart grids, looking into aspects such as data communications, power quality, electro-magnetic interference or demand management. So far have been tested “more than 70 recharging devices (AC and DC-CCS) against 17 different electric vehicles (including plug-in hybrids) over a temperature range from -30 degree C to plus

40 degree C”, says Mrs. Talko. “The results have significantly furthered the development of devices that can monitor the communication between an electric vehicle and its recharging column. It has also allowed to gather specific, well-defined use-cases that will be useful for future automated testing through a so-called global testing device.”

Car industry supports EU interoperability The automotive industry is supporting the development of the future EU infrastructure. “Throughout 2015, the JRC-IET has already been working on an experimental project for recharger-EV interoperability together with its collaboration partner U.S. DOE Argonne National Laboratory. The work has also been supported by the international Combined Charging System (CCS) Industry-coalition [Ford, GM, BMW, Fiat Chrysler Automobiles (FCA), Daimler, VW, Audi , Porsche] and more than 40 recharger producers from the EU, U.S.A., China and Switzerland”, adds Mirna Talko.

The JRC’s aim for 2016 to implement more structured and systematic approaches when testing fast charging technologies. These tests will reduce clean technologies’ costs and push forward business opportunities, “the work of the JRC-IET can facilitate creating economies of scale and new business opportunities from grid services. In addition, it can also help to reduce costs and improve the performance of available technologies”, says Mrs. Talko. ■ Antigoni Vokou

FLEET EUROPE # 81

P.31

1.6 l goes a long

The new Passat GTE Variant. With high-efficiency engine.

Merging performance and efficiency.

Efficiency matters. That is why the new Passat GTE Plug-In Hybrid combines a petrol engine with an electric motor. The result: a consumption of only 1.6 l/100 km on average and a total range of up to 1,000 km on one tank.

Fuel consumption in l/100 km: combined 1.7–1.6, energy consumption in kWh/100 km: combined 12.9–12.4, CO₂ emissions in g/km: combined 39–37. The

way.

precise fuel consumption, energy consumption and COâ‚‚ emission ratings above vary depending on the tyres/wheels used. Illustr. depicts optional equipment.

DOSSIER I Green Fleet and Alternative Powertrains

���6: static year for green Residual Values Which European countries have established second-hand markets for ‘green cars’? “The definition of ‘green cars’ is very wide. We are talking ethanol, natural gas, hybrids, battery electric (BEV) and fuel-cell vehicles (FCV)”, says Michael Kleber of EurotaxGlass’s. “Their adoption on used car markets differs vastly across countries. Let’s focus our attention on plug-in hybrids (PHEV) for a start”.

“

PHEVs perform pretty close to what consumers are used to, due to the combination of electric and ‘traditional’ powertrains. Several brands and models have a very long and successful track record and adoption is therefore high – subject to the economic personal advantage, it is higher in some countries than in others”, says Michael Kleber, Product Manager Consulting at EurotaxGlass’s.

The Netherlands stand out in Europe: “Due to fiscal measures by the Dutch government specifically aimed at promoting alternative powertrains, PHEVs are very well established both on new and used car markets.”

A rare sports car So volume is a factor, and that’s exactly what’s lacking for pure electrics. “Absolutely. Compare it to selling a rare sports car. There is demand on the used car market for them, but very little transparency on prices.

We are getting a lot of requests from customers on used car market reports – both for sports cars and electric vehicles and it represents a challenge with very few transactions to build this up.”

“There is one notable exception: in Norway, batterypowered vehicles are very well established (c. 14% market share) due to strong financial benefits associated to driving one.”

“Across Europe, PHEVs face a similar challenge as battery electric vehicles. But they have accumulated considerable market share when the conditions are right commercially, e.g., in the Netherlands (c. 3% market share).”

The end of Diesel?

Could ‘Dieselgate’ initiate a significant change with industry, regulators and consumers all moving towards renewables? Because that would bring green cars to market in the numbers necessary to kick start a healthy, structured second-hand market.

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FLEET EUROPE # 81

“We see essentially three possible scenarios is this situation: first, a straw fire with limited, temporary effect, second, a Diesel sell-out with that massive move away from Diesel you described. We actually think we are going to see a third scenario in between these two. In a negative outlook scenario, the public interest remains high and increasingly stricter regulation leads to OEMs to decide against some investments in future diesel engine i.e., a gradual phase-out”, Kleber explains.

Diesel has been under pressure across Europe for some time now. In several markets of historical Diesel dominance other powertrain types have made gains.

“It will increasingly become commercially inviable to offer Diesel engines in smaller cars because the investment case will be negative. But this will not change the market overnight.”

The emissions scandal and the ripple effect Wolfgang E. Reinhold, Senior VP for Car Remarketing & Operations at LeasePlan Corporation, considers the emissions scandal to be the single biggest event to impact the remarketing industry, although he doesn’t see a big impact of the scandal on the present level of residual values yet. “That’s just because we have been very lucky so far”, he says. “Let’s see what happens in 2016, when the recall of all the affected vehicles starts – from January for vehicles which require a software update, in the autumn, for those in need of a hardware fix.” According to Wolfgang Reinhold a strong drop in the residual value of Volkswagen models would also be negative for others: because of Volkswagen Group’s dominance in Europe, there will be a ripple effect throughout the market.

As for the current market situation, “we do notice the clear effects on Diesel residual values in the moment but they are limited to Volkswagen brands”, says Michael Kleber. “We monitored this closely. The size of the car park affected, almost 10 million cars, leads to a massive monetary value at risk if only 1% in residual value decline solidifies.”

Predictions 2016 With neither of the aforementioned shifts likely – at least not soon – the predictions for 2016 are of a static second-hand market: “We do not expect any kind of major shift in the residual values of green cars over the next year”, says Michael Kleber. “Residual value potential is currently limited by high prices and – in case of BEVs and FCVs – limited infrastructure. Used-car buyers are price-sensitive, so we will see changes only in line with the price development.”

The Netherlands are again an exception: “Changes in taxation from new year will raise the price of PHEVs. This will put new car sales under pressure. With used car supply going down, prices will go up.” And the PHEV market in the Netherlands is the largest in Europe.

How to help green cars Considering the second-hand market is an essential element in the overall life-cycle and total cost of a vehicle is there any way OEMs and governments can act to support its viability?

“Well, it comes down to price and risk. Considering the price-consciousness of used car buyers, lower prices

Michael Kleber, EurotaxGlass’s: No major shift in the residual values of green cars over the next year is expected.

for BEVs or PHEVs fuel new car sales and develop the used car market”. This is what happened in Norway or the Netherlands to BEVs and PHEVs, respectively. As of the risk, “we already see a very good strategy applied by the industry. OEMs offer long warranties, for instance on the batteries of BEVs. This eliminates any concern on the new technology which a used car buyer would otherwise price in. These warranties need to be transferrable, qualified and simple.” ■ Frank Jacobs

Volume is an important factor when talking about residual values, and that’s what’s lacking for pure electric cars.

FLEET EUROPE # 81

P.35

DOSSIER I Green Fleet and Alternative Powertrains

“Energy storage, the missing link in EV battery life cycle” What if the battery in an electric car was an asset instead of a liability? Daimler is answering that question by bringing online the world’s biggest energy storage unit, built from – you guessed it: second-hand EV batteries.

A

bout 1,000 of those batteries are connected up in a warehouse in the German town of Lünen.

Taking up no more than 3,000 m2, they represent an energy storage capacity of 13 mWh.

Range reduction “The system is already in test mode, and it will be fully operational in early 2016”, says Harald Kröger, Head of Development Electrics/Electronics & E-drive at Mercedes-Benz. “This system represents the missing link in the life cycle of electric vehicle batteries.”

EV batteries currently are quite expensive, and they eventually wear down, reducing the range of the vehicles. Both factors help explain the relatively slow uptake of electric mobility, which is otherwise a very cheap and clean propulsion technology.

Give the batteries a second life as energy storage devices, resolves both issues in one go. “An EV battery at 70% will reduce your range by 30%. But that is no handicap for a stationary energy storage unit. If you need more storage, you just add more batteries. You could even run them down to zero, after which you can mine them for nickel, cobalt and other materials to be re-used. The second life of those batteries as energy storage devices increases their residual value, with obvious benefits for the price-competitiveness of electric mobility.”

Wind and solar The use of large battery units for energy storage is an industry expected to take off in the next few years, mirroring the projected increase in energy generation by renewable sources. “Wind and solar energy produce energy at variable rates. This technology will bridge the gap between variable energy production and the peaks and troughs in energy consumption.”

Via its subsidiary ACCUMOTIVE, Daimler is already marketing its energy-storage technology, both for industrial and domestic use. “Commercial applications of this technology will allow consumers to become independent of the

P.36

FLEET EUROPE # 81

For Harald Kröger, Head of Development Electrics/ Electronics & E-drive at Mercedes-Benz, the second life of batteries as energy storage devices increases their residual value and benefits for the pricecompetitiveness of electric mobility.

public grid; it will also allow companies who use a lot of electricity at peak price times – say, a restaurant at lunchtime – to use stored energy, dramatically reducing cost.”

Stable chemistry Daimler’s energy-storage unit in Lünen is based on lithium-ion batteries from smart electric drive vehicles of the second generation. But the storage principle applies to lithium-ion batteries from any other manufacturer.

“Others might use a more aggressive chemistry, which does not favour long battery life. We use a more stable chemistry, making our batteries especially suited for re-use as energy storage devices.”

It’s also good to know that the technology is extremely safe: “Car batteries have been designed and tested for a very rough treatment on the road. So they’re much safer than any other kind of batteries.” ■ Frank Jacobs

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Fuel consumption combined 4.2 l/100 km; CO2 emissions combined 110–107 g/km (according to R (EC) No. 715/2007).

DOSSIER I Green Fleet and Alternative Powertrains

Procuring fleets of the future Sustainable procurement is promoted as a smart way to cut carbon emissions and embed sustainability supply chains. Follow these six steps to make your fleet smarter, sustainable and low carbon.

S

ustainable procurement first appeared out in the mid nighties with pioneering professionals in the public sector pushing for its adoption.

Since then it has spread its wings and has been embraced by procurers in the private sector. But why has it become popular? Like all good procurement practices it’s about meeting business needs through better purchasing, but it takes the concept of whole life costing to another level with its sustainability considerations.

Evidence based buying Sustainable procurement’s evidence based approach to buying certainly sounds like a sensible idea. It has strong synergies with the TCO equation already adopted by corporate fleet buyers, but there’s an added green tinge.

With sustainability a board level topic, can corporate fleets ignore the call of sustainable procurement?

If you think not then here’s a six step summary to get you started on the path to sustainable fleet procurement: •S tep 1 - Is all about senior management buy in.

Sustainable procurement is strategic and needs support from the top. It consists to investigate whether there is board level backing and whether a sustainable procurement strategy already exists. If so, then it’s onto step two.

• Step 2 - Strong stakeholder engagement is demanded in sustainable procurement. To get a holistic view of business needs, costs and opportunities, contributions from stakeholders are essential. An active working party will make sure this happens.

• Step 3 - Prioritise areas of spend. Where can you get the biggest bang for your buck? Focusing in on areas of spend where you can make a real difference is what matters.

For fleets this could include alternative powertrains, fuel efficiency or tech solutions like telemetry.

Step

Step

01

Set up a working party

Management buy in Step

02

FLEET EUROPE # 81

• Step 4 - Sustainable procurement policy. Suppliers need to know what they have to do to grab your attention. Publishing a sustainable procurement policy lets the market know about your intentions. The policy should tell suppliers what you want, why you want it and how they can help you get it. Once they know they’ll fulfill the brief.

• Step 5 - Set targets. Financial, social and environmental performances sit side by side in sustainable procurement scorecards. Benchmarking performance and measuring progress is part of sustainable procurement.

Fleet targets could include percentage of miles travelled by low-emission vehicles and savings generated both cash and carbon.

• Step 6 - Keep it alive. Sustainable procurement is not a single action. It never ends. Practitioners keep their eyes and ears open, and are ready to explore new ideas and solutions. Talking about sustainable procurement is what has made it popular. So starting the conversation in corporate fleet will fuel the discussion and make sustainable procurement a reality. ■ Jonathan Green

Step

03 Prioritise areas of spend

Sustainable procurement policy Step

There are six easy steps to make your fleet smarter, sustainable and low-CO2.

P.38

Sustainable procurement practices remains centered on how to meet business needs through better purchasing.

04

05 Keep it alive

Set targets

Step

06

DOSSIER I Green Fleet and Alternative Powertrains

“We have one goal: reduced global CO2 impact from our fleet” “Align the right vehicles for the right needs and driver profiles”: that’s how you ensure drivers buy in to a Green Fleet Policy, says Romain Trébuil, Purchasing Manager at L’Oréal. “It makes no sense to suggest electric or hybrid vehicles to the salesforce; but they are the best solution for managers who make less km each year”.

R

omain Trébuil won third prize in Green Fleet category at last year’s Fleet Europe Awards, as well as second prize in International Fleet Manager of the Year for Large Fleet. So how he implemented his Green Fleet Policy carries some weight.

‘Sharing Beauty’ SBWA is a L’Oréal strategic CSR programme aiming 4 priorities: 1) Innovating sustainability; 2) Producing Sustainability; 3) Living Sustainability and 4) Developing Sustainability.

Convincing top management of the need to go green was relatively easy, Mr Trébuil remembers: “This internal programme covers all aspects of sustainability. So carbon emission reduction is really in our DNA”.

L’Oréal’s has over 10,000 vehicles in more than 50 countries. Three categories of employees get a company car: salespeople, their managers, and top management. L’Oréal also offers car-sharing, grey cars and mobility credits.

The Green Fleet Policy started when L’Oréal outsourced its fleet management and progressed significantly in the last year. The plan had three goals.

CO2 -20% “Firstly, to cap CO2 emissions at 115g/km for our salesforce.

We offered bigger budgets to salesforce managers and top management if they opted for a greener car. Top management could also benefit from mobility credits. One in 10 top managers took that offer”.

“Secondly, once car policy was implemented for each of the categories of drivers, we reduced in average CO2 consumption by 20% at global level. We did this by limiting selectable cars to 100 g/km for salespeople and 110 g/km for top managers, and by including hybrids and electrics in the catalogue”.

“Finally, we offered car-sharing solutions in some countries replacing individual cars; and we provided our employees driver’s ed eco driving courses”.

Six pillars Implementation depends on six pillars: Quality, Simplicity, Globalisation, Innovation, Monitoring and CO2.

“To achieve our global objective to reduce CO2 emissions by 20%, we benchmark best practices across our different markets, and we have built the Green Toolbox which summarizes all the levels and Green best practices. This tool kit has been present to all Country Purchasing Directors and send to help them in their day to day improvement plan.”

With the Green Fleet Policy of L’Oréal successfully implemented, what is there left for Romain Trébuil to do? “My role now is to create enthusiasm and empowering of our community, and to reach our Green Fleet objectives via internal benchmarks, continue to introduce ongoing innovations and follow the results through a European Green Dashboard”.

Included in that Toolbox are: a cash allowance, systematic integration of hybrid and electric cars in the catalogues, car-sharing, and CO2 caps per driver category. “Every country purchasing director knows the policy, and the Toolbox.

It’s up to them to define the best local policy. The ultimate KPI is the average CO2 rate per country that we benchmark internally and externally”, says Romain Trébuil. “We have one goal, but many ways to reach it!” ■ Steven Schoefs

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DOSSIER I Green Fleet and Alternative Powertrains

Smart driving with smart powertrains Energy used by alternative powertrains isn’t necessarily cost free or emissions neutral. Here are some tips to get the most out of new engine tech, boost the TCO and cut back on emissions.

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ouldn’t it be wonderful if all cars were powered by renewable energy and produced no tailpipe emissions? Pollution, guilt free motoring, sure sounds great. We are not there yet, but we’re heading in the right direction.

Hybrid and electric powertrains offer exciting opportunities. Here’s some tips on how to get the most out of alternative powertrains.

Business as usual Buying alternative powertrains doesn’t mean driver education and training should be scrapped. Many drivers will need support to achieve the driving styles that make these new engines perform to their peak. Irrespective of the powertrain there’s some pretty standard advice to make motoring more efficient. It’s simple stuff, but it’s all too easily forgotten.

Keeping the boot free of unnecessary weight and maintaining tyre pressure is good practice whether a car has a petrol, diesel, hybrid or all electric powertrain.

Also don’t forget advice on important stuff like journey planning, maintaining a steady speed and avoiding

Driving support is necessary to achieve the driving styles that make alternative engines perform to their peak.

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sudden accelerating and braking. Simple actions can secure big wins. Getting the message out to drivers is as important as ever.

Give hybrids a helping hand Hybrid engines will boost fuel efficiency and cut back on emissions from the get go, but getting the most out of the engine means encouraging drivers to behave in certain ways. Start by sharing the basics. Explaining that hybrids have different engine setting is a good place to begin, as is showing drivers the hybrid information display and explaining what it means. This will help drivers’ understand how much energy is being used and why. Keeping the car in electric mode is an obvious way to save fuel, but achieving it isn’t. Pressing consistently and lightly on the accelerator pedal is one way, whilst braking gently to harvest energy from regenerative braking system boosts the battery for all electric driving in the future. Telling drivers that putting the car in neutral during stop - start traffic isn’t a good idea is a wise move too. In hybrids it drains the battery.

EV all the way You can take most of the advice above and apply it to electric vehicles too. But there’s one big difference when it comes to EVs; looking after the battery. EV battery maintenance isn’t rocket science and drivers have nothing to fear. Periodically fully charging and balancing the battery, not relying on fast DC charging at all times, planning ahead for periods of extended storage, and being mindful of extreme temperatures all have a part to play in maintaining battery life.

Read and learn Get drivers to turn to a car’s manual and look online for advice and guidance. Manufacturers know the tech and they’re eager to explain to drivers how to treat it. Let them show your drivers the way whilst you record and share their performance. ■ Jonathan Green

DOSSIER I Green Fleet and Alternative Powertrains

Case study: Orange’s Alternative Fleet Strategy Here, we take a look at why the Orange policy stood out from the rest and why its mobility strategy was prestigiously recognised at the 2015 Fleet Europe Awards.

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ffering new mobility solutions to employees is a critical part of Orange’s strategy for improving overall mobility. For example, for their personal journeys too, Orange offers different kinds of mobility to employees, i.e. private (charged) use of fleet cars during the evening and during weekends for staff, and help for people to buy electric bikes. It is the company’s policy to move from a logic of ownership to a logic of use. And with all this, there is an objective of optimizing the group’s fleet: reducing the size of the fleet while giving access to a much larger number of people.

Cost benefit Another important strategy towards improved mobility concerns trip management. This brings with it an added benefit not just in terms of green, but cost too. Since 2011 Orange has reduced its air travel expenses by 32% and its trip transactions by 25%. This cost optimisation was obtained via an easier and multi-modal reservation tool which has improved the usage level of restrictive tickets. In addition, managers welcome these measures because it helps them to stay within their budgets. Video-conferencing is another in-house product for Orange that also proves to be a practical solution for itself, facilitating mobility and reducing the company’s global warming footprint, but also playing a safety role.

Innovation to prove a point One of the main pillars behind the success of Jean Zermati and Orange in the Innovation category is that it addresses a major obstacle to the uptake of electric vehicles: acceptance by drivers and belief in the fact that these can meet their needs. To do this, Orange installed telematics boxes which were able to demonstrate to drivers and managers that a traditional internal combustion engine-powered vehicle can, at replacement time, be changed for an electric vehicle. Replacing a car by an EV also helps to develop car-sharing for those journeys which remain outside of the range of an electric vehicle. A dual success therefore, and with an added beneficial consequence:

Orange’s target is to reach 125 g/km by 2020 developing car-sharing will push manufacturers to install the necessary boxes and other devices in their cars to facilitate fleet mobility and management.

Green for everbody The CO2 emissions ratio in France is 132 g/km. This takes into account the large fleet of LCV’s and elevated working platforms, where CO2 emissions are inevitably much higher, and can reach 225 g/km. The CO2 emission average for Europe as a whole is 131 g/km. Orange’s target is to reach a 125 g/km ratio in 2020. In France all cars available have CO2 emissions lower than 120 g/km, and of course all respect a maximum TCO limit too.

Keeping CO2 emissions down involves other innovative factors too. For example, avoid the ‘always more’ demand: provide a single catalogue regardless of the person’s level, whereby everyone chooses a vehicle depending on needs, not status. On top of all this, the car-sharing fleet is made up of a mixture of vehicles. There are 4-5 seat vehicles along with 2 seat vehicles. Alongside green is of course the notion of safety. Thanks to the telematics boxes, Orange gives individual drivers information and advices regarding their driving to allow each one to be a safer-driver. Events are organised, on a local or national basis, to highlight these subjects. ■ Tim Harrup

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DOSSIER I Green Fleet and Alternative Powertrains

Jean Zermati: a unique Green Fleet Vision At the Fleet Europe Awards in November, one talented fleet manager had to climb the steps onto the stage three times to receive prizes: Jean Zermati of telecommunications company Orange. According to the jury he had the best policies in the Green, Mobility and Innovation Awards.

So just how did Jean Zermati manage to win three prizes at the Awards? Who better to ask than the man himself?

“Firstly, it was a great surprise, but when I decide go in for a competition, I do it thoroughly and of course I always hope to win. But three… What gives me the greatest pleasure is that all three are connected to green in the widest sense. This illustrates everything we have been doing at Orange for several years, trying to have a long term vision and to bring to fruition today the solutions of tomorrow. We have been concentrating on car-sharing, telematics and electric vehicles among others. We are very enthusiastic about introducing these ideas into our fleet management strategy.”

So there seems to be a genuine link between, green, mobility and innovation?

“Yes absolutely, and especially at Orange, where we created a ‘mobility management’ structure back in 2011. We were the first major company in France to create this, which manages both physical mobility (business trips etc.) and virtual mobility (video-conferencing…). We replace some car travel by other forms of travel which are more beneficial in many ways, we replace travel altogether by these virtual meetings, and we encourage car-sharing for those trips which have to take place. So we have a real vision of mobility in its widest sense, and the Orange group also has commitments in terms of overall CO2 emissions – down by 20% in 2020 compared to 2006. This is in all domains, buildings, transport etc., this requires an overall view and innovation.”

Is your team proud of you?

“I would say that I am very proud of the team which helped me win these prizes – I was on stage to take them, but it was

on behalf of the whole team. All the local fleet managers, a direct team of thirteen persons, but around a hundred in all.

Without them, Orange wouldn’t be where it is, and I wouldn’t have had the privilege of receiving these three prizes.”

So, what are you going to do in the future to improve even further in these domains?

“I have already told my team that these awards oblige us to go even further – firstly by completing everything we have started, such a enlarging the car-sharing scheme. Our goal is to arrive at 3,000 vehicles in car-sharing by 2020. We will also continue to equip all vehicles with telematics, both through our own actions, and thanks to the manufacturers who are beginning to put the equipment in from the start. We will continue to train all drivers. Our electric car agreements with the Renault-Nissan Alliance and BMW i ends in the first part of 2016, so of course we want to renew this and possibly extend it. Then we want to look at other possible energy sources such as fuel cells, natural gas. For these, we are looking even further ahead because the refuelling networks are not in place everywhere. So our long term desire remains just as strong, and will be realised in line with technical and financial possibilities.”

What about petrol as a fuel?

“This is also in our sights, and we are very pleased to see that in our home territory of France for example, the government is moving towards making petrol more of a possibility for fleets by a change in taxation. So in concrete terms, we now have 15 or so petrol-powered cars in our overall catalogue, out of a total of 65.” ■ Tim Harrup

What gives me the greatest pleasure is that all three are connected to green in the widest sense.

At Orange, we try to have a long term vision and bring to fruition today the solutions of tomorrow.

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ORANGE Sector of activities Telecommunications

Headquarters Paris

Fleet Manager Jean Zermati

Number of vehicles (EMEA) ± 20,000cars, ± 10,000 LCVs

Title

Group Fleet Manager

Who exactly is Jean Zermati?

“Well apart from a long career in Real Estate & Facility management at the Petroleum Engineering Company Technip, then Pompidou Center Museum and French Pay –TV Canal +, and for the past 5 years in fleet management at Orange.

I have an absolute passion for collecting elephants! Small ones, I should make clear, not real ones… I have around 380 of these, from absolutely tiny ones to some which are 20 or 30 centimetres high.”

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DOSSIER I Green Fleet and Alternative Powertrains

The road to green Are there ways to lower your fleet’s carbon footprint other than choosing low rolling resistance tyres? Yes, there are – or there will be, as these two examples illustrate.

CrossClimate, Michelin 1. CrossClimate tyres According to Michelin, their recently introduced CrossClimate tyres can be used all year long. The advantages are obvious: no more time, money and energy wasted on getting your fleet to the tyre centre twice a year. The French tyre manufacturer stresses that their CrossClimate is not an all-season tyre, which can never be more than a compromise as it wants to offer winter capabilities combined with dry handling and braking performance. The CrossClimate is a summer tyre that has been engineered to be able to face the occasional winter chill and precipitation. It carries the “three-peak mountain snowflake” certification, so it can legally be used during winter in countries that enforce such tyre regulations.

A tyre’s behaviour is determined by three elements: its composition, its tread pattern and its structure.

The CrossClimate’s tread consists of two layers with different compounds. The outer layer is the suppler one, as it needs to provide grip. The inner layer needs to provide support and a limited amount of hysteresis to contain the spread of energy, which translates into less rolling resistance and better braking performance on dry roads. The V-shaped tread pattern with a high rib density allows the tyre to ‘grab’ the snow, while the limited amount of sipes does not jeopardise the tyre’s rigidity.

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WinterContact TS 850P ‘Taraxagum’, Continental.

2. Sustainable rubber Roughly a quarter of a car’s tyre consists of rubber – both synthetic and natural. Human-made latex is less expensive, but rubber from the Hevea brasiliensis offers characteristics that cannot be copied synthetically, such as flexibility at low temperatures and the ability to return to its original shape after deformation. However, natural rubber is in strong demand and transporting it from (mainly) Southeast Asia to the factories and the rest of the world has a serious ecological impact. Hence the idea to extract latex from dandelions, grown near the factory.

Sounds Innovative, no? Still, already in 1928, Russian scientists were exploring vegetable alternatives to latex from rubber trees. They found that the roots of the Taraxacum kok-saghyz contained latex of a kind interesting enough to develop. Yet, it was only in 2011 that German scholars from the University of Münster succeeded in increasing the plant’s yield to an acceptable level and disable the enzyme responsible for coagulation. The first industrial application was the merit of Continental, which introduced dandelion latex in their WinterContact TS 850P ‘Taraxagum’ tyre. It is still in prototype phase, but you should be able to find them at the tyre centre within 5 to 10 years. ■ Dieter Quartier

ADVERTORIAL I Toyota Motor Europe

Think hybrid: See Toyota, See Lexus Go anywhere in the world and the chances are if the car you are looking at is a hybrid, then it’s a Lexus or a Toyota. Toyota Motor Corporation pioneered the technology back in 1997 with the first generation Prius, the world’s first mass production hybrid car.

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ar from being satisfied with this success, Toyota continued to develop their hybrid technology in an effort to extend its accessibility to customers. Today, no less than 14 European Toyota and Lexus models boast a hybrid powertrain; providing consumers with the choice of everything from an entry level B-segment Toyota Yaris up to luxury Lexus models like RX 450h and LS 600h; safe in the knowledge that their decision to go hybrid means lower emissions, seamless power delivery and significant whole life cost advantages. Toyota and Lexus represent, quite simply, the one-stop shop for hybrid motoring.

8 million hybrid sales With global hybrid sales now topping 8 million and with over a million of those in Europe, it’s hardly surprising that Toyota and Lexus hybrids continue to be the benchmark by which all hybrids are measured. General Manager Fleet & Leasing for Toyota Motor Europe, Dave Cussell: “Toyota hybrid has moved from niche to mainstream and our European Fleet users now see them as an essential part of their fleet mix.” For Yaris one third of new car sales is hybrid, and for Auris the hybrid share of new car sales even grows to 50%. And Lexus, one of the fastest growing premium brands in Europe, is 100% hybrid in Western Europe. The newly launched NX, with a hybrid share of nearly 60%, has contributed massively to the best year ever for Lexus in Europe.

Toyota engineers are also quick to point out that the development of their latest hybrid models has seen dramatic reductions in size and weight with a lower centre of gravity thanks to a streamlined chassis construction.

The results are: enhanced boot and

cabin space, immediate and smooth response and an 21% improvement in fuel efficiency (according to the New European Cycle) – all the ingredients for sheer driving pleasure. There is no doubt that Toyota has transformed the automotive world with its hybrid

technology, and it looks set to do the same again with the introduction of its first production hydrogen fuel cell car, the Mirai. Dave Cussell summed it up “Mirai is very exciting, not just for Toyota but for our customers and for the industry as a whole.” ■

The Hybrid line-up

The new Toyota Prius

The Lexus RX 450h

Toyota • Prius • Prius+ • Prius Plug-in • Yaris Hybrid • Auris Hybrid/Auris Hybrid Touring Sports • Camry Hybrid • RAV4 Hybrid Lexus • CT 200h • IS 300h • RC 300h • GS 300h/GS 450h • NX 300h • RX 450h • LS600 h

The Toyota Hybrid success story

The new Toyota RAV4 Hybrid

• Toyota is the #1 selling hybrid brand in every European country • 3.5 million Prius sold worldwide • One million hybrids sold in Europe • 14 models available in Europe • Hybrid model in every Toyota sales segment by 2020 • 2016 sees Toyota introduce New RAV4, the world’s first hybrid C-SUV

Toyota Hybrid green credentials

Toyota goes hydrogen with new Mirai

• Toyota hybrids produce low CO2 and NOx emissions • 58 tonnes of CO2 saved since the first Prius • 22 million kilolitres of fuel saved

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DOSSIER I Green Fleet and Alternative Powertrains

Managing miles, cutting costs Cutting down on client visits isn’t a clever idea when aiming to boost the bottom line, but travelling less and achieving more is possible. The answer lies in making smarter choices.

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mproving business efficiency is something that every organisation strives for. It’s how performance is improved and profit margins are maximised.

Journey optimisation is a smart way in which fleet managers can optimise fleet performance. Not only that, it cuts down on harmful carbon emissions as well. Here’s a rundown on how to make it an operational reality.

Better meetings management Better meetings management means understanding why meetings are happening, when and where, and putting together a schedule that services clients in a smarter way. Less miles travelled, more time in the bank to do other stuff and fewer carbon emissions, all make meeting management worth investigating. Sourcing, analysing and managing the massive data sets needed isn’t straightforward, but it’s getting easier. Telemetry and big data offer the answer. Telemetry is being talked about as one of the big trends in 2016, but will fleet managers be able to assure drivers about their privacy?

We’ll find out soon enough.

Is it time to travel?

Congestion costs Europe’s business community 100 billion euros every year. So, choose when and where to

travel very carefully. Sitting in traffic also causes pollution and adds to driver stress. So, what’s the answer?

Simple: travel when there is less traffic. The fleet will feel the advantage on many different levels.

Mobility budgets Innovative buyers are putting in place mobility budgets to boost business efficiency and meet the expectations of the millennial generation. Giving employees the chance to choose different modes of travel is just the ticket when it comes to journey optimisation. Mobility, with its plug and play approach, means the company car, public transport, car sharing and flexible office space are all part of a holistic policy. The freedom for the employee to choose is made easy.

Face to face Is meeting face to face the only way? Tech also offer opportunities and has opened up a whole new host of ways to keep in contact. Face to face is important, but it’s also good to talk. Video, social media and instant messaging offer 21st century ways of keeping in contact. Maybe tech solutions could play a part in meeting management and journey optimisation for your fleet going forward?

Fit for purpose powertrains Imagine if every car was electric and pollution free. It isn’t practical at the present time, but fleets can still make a difference. City travel in pool cars is perfect for electric powertrains, whilst petrol offers lower emissions than diesel when it comes minimising the impact on local air quality. Diesel, on the other hand, performs better than petrol when it comes to carbon and is best suited for intra-city travel. Choose powertrains to fit the travel circumstances, and save cash and carbon.

Video, social media and instant messaging new ways of stay in touch. Technology will play a part in meeting management and journey optimisation for fleets.

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Keep your eyes peeled There are many ways to optimise journeys. What works for one business unit or one employee may not work for another. It’s a journey of discovery. It means being flexible and focusing in on achieving business outcomes. ■ Jonathan Green

DOSSIER I Case study : Orange’s Alternative Fleet Strategy

Safety and green will help telemetry shine Privacy concerns have proved to be a stubborn barrier when talk turns to the introduction of telemetry in corporate car fleets, but improved fleet safety and green gains could be about to give telemetry a much needed boost.

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he search for financial saving in fleet management, improved safety and lower emissions is not going to go away. The time to put a new spin on telemetry has arrived, and fleet safety and green fleets are the perfect levers to liberate telemetry from the shackles of privacy concerns.

Changing fleet management To meet new expectations change is already taking place. Driver behaviour is one area that’s becoming more and more important, according to Alessandro Pigazzi, Director of Arval Consulting and the Corporate Vehicle Observatory (CVO). “If a fleet is serious about tackling fleet costs by managing fuel consumption, improving fleet safety and boosting productivity it needs to understand its fleet better and be engaged in initiatives to change driver behaviour,” says Pigazzi.

Telemetry is increasingly seen as the smart answer.

It offers access to data that fleet managers could only dream about in the past. Arval says that with a proper telematics solution the overall TCO of a car can be reduced in the region of 5 - 10%. These are savings not to be sniffed at. The savings will vary depending on the fleet, its maturity, the actions taken by the company, but it explains why the Arval launched its first telemetry solution, Arval Active Link, last year and why it plans to have the solution installed in all vehicles by 2020.

LeasePlan also intends to roll out a telemetry program on international level too, and ALD has its ProFleet 2 telematics system to play with.

One action, three big wins Driving style is a major factor in optimising fuel use, improving driver safety and achieving emission reduction, is the big opportunity for fleets in 2016. Understanding what goes on behind the wheel, courtesy of telemetry, is

Telemetry is a smart answer. It offers access to data, and combined with a focus on fleet safety and green goals can be a very good compromise for fleet drivers.

Privacy causes concerns Drivers’ privacy concerns shouldn’t be taken lightly.

Data alone won’t drive change and people need to be kept onside, according to Arval’s Pigazzi. “People drive change. Each organization needs to engage, adapt, motivate and animate employees when targeting for savings and productivity improvement.” Arval has designed its solution so drivers can restrict vehicle tracking by classify each trip as either business or private. The ability to turn telemetry on and off, combined with a focus on fleet safety and green goals, could be the compromise that fleet drivers are looking for. At the end of 2016 we’ll know whether it is.

Green gains Driving style is a major factor in the fuel consumption of a vehicle. By practising eco-driving techniques it’s possible to cut fuel consumption by 20%, according to UKs Society of Motor Manufacturers. Corporate fleets operate some of the most fuel-efficient vehicles on the roads today thanks to TCO aware purchasing, but it also well known that vehicles aren’t always driven in an efficient way. The insight telemetry offers fleets to target and support drivers from a fuel and emissions efficiency angle is immense. And it’s another hot topic in the public’s purview. ■

now more important than ever (see article page 40).

Jonathan Green

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DOSSIER I Green Fleet and Alternative Powertrains

IKEA’s home-kit for low-CO2 mobility Being an inspiration to peers while fighting global warming is what many big businesses have accomplished as part of The Climate Group. One of them is IKEA which signed the Group’s RE100 campaign to attain alternative transport and mobility.

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he Climate Group managed to gather over a decade international leaders from various fields: telecoms, financial sector, retail, and also governments and civil society with one principal aim: a future low-carbon economy based on clean energy. The Climate Group wants now to maximize climate opportunities offered by the Paris Agreement reached at COP21 in order to accelerate the implementation of more clean-CO 2 initiatives.

The Group proved so far that the clean (r)evolution brings immediate and future results like jobs, better health, security and a cleaner natural environment.

In 2015, IKEA committed to invest 1 billion euros in this (r)evolution in the next five years for wind and solar energy.

100% alternative fuels by 2020 IKEA has 298 stores in 26 countries and one “People & Planet Sustainable Strategy”: 100% renewable fuels by 2020. In 2015, the retail group settled many transport alternatives. “Using fossil fuel alternatives like biogas and electric vehicles can reduce each journey’s carbon emissions by up to 90%, and in FY15 we rolled out these new technologies to more countries. In China, 14.5% of customer deliveries from our Chengdu store were made using electric vehicles.

IKEA offers EV charging stations in 120 stores in 22 markets. In 2015 enough green electricity was delivered to enable vehicles to travel more than 1.5 million zero emissions kilometres.

In Sweden, we have successfully concluded extensive trials with synthetic diesel made from waste products like scrap wood and animal fat residue. Since January 2015, all IKEA deliveries in the city centre of Paris, France, have been made using biogas vehicles. In Italy, more than 50,000 customers in eight cities had their products delivered in CNG-powered vehicles”, explains Camilla Ohlsson, Strategic Communicator Group Sustainability at IKEA. EVs for customers and workers Actually, more than 120 stores in 22 markets offer free EV charging stations to customers. “In the UK, the number of customers using these charging points has grown threefold in the past year. In FY15, the chargers delivered enough green electricity to enable vehicles to travel more than 1.5 million zero tailpipe emissions kilometres”, adds Camilla Ohlsson.

In Älmhult, Sweden, an IKEA sustainable project looks at how to change worker’s transport attitudes and replace regular fuel cars with light electric vehicles for one year. This in order to study if EVs cover co-workers’ transport needs and can become an option to regular cars. “At IKEA in Älmhult there are many different IKEA sites and co-workers often drive between the sites to go to meetings, using either their own cars or company cars. By having light electric vehicles available, the idea is to encourage co-workers who live close to work to leave their cars at home and instead use the light electric vehicle, called Twizy, for their transport needs at work. An additional feature of this project is that the Twizy serves more than just your needs at work. When the working day comes to an end, caretakers of the seven available Twizys will drive it home, feed it electricity at night and drive it back to work, fully charged, in the morning”, precises Camilla Ohlsson. ■

Antigoni Vokou

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DOSSIER I Green Fleet and Alternative Powertrains

How to account fleet CO2 emissions Are you confused about how to count fleet emissions? We’ve found out the answers to the most frequently asked questions.

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missions reporting is now a serious business. Fleet leaders have a responsibility over a significant source of greenhouse gas (GHG) emissions; company owned and leased cars, and rental vehicles. With this responsibility comes a requirement: reduce those carbon emissions.

Emissions accounting How should emissions be calculated?

It's a topic that's frequently made overly onerous. There are three simple ways: 1. The best methodology uses actual fuel consumption;

to answers on scopes and accurate reporting 1.

There is a simple way to calculate emissions with three main elements: actual fuel consumption, distance travelled and financial expenditure.

2. Generic conversion factors are applied against distance travelled; 3. Financial expenditure.

The Greenhouse Gas Protocol, the de facto standard, gives easy access

Carbon Statement Stakeholders want to know how emissions have been accounted for. A carbon statement provides the answers. It clearly explains where emissions have been accounted from, how the data has been sourced and what conversion factors have been used. Clarity is what counts. This is a fast and furious run down of an area of growing importance, but follow these guidelines and you'll be well on the way to accurately accounting for emissions. ■ Jonathan Green Access it at http://www.ghgprotocol.org/ calculation-tools/faq for more information 1

ADVERTORIAL I The Miles Consultancy

The benefits of consolidated fuel and mileage data Difficulty obtaining real world, consolidated, audited fleet trip information is a huge obstacle for businesses that want to achieve cost and energy savings.

The Miles Consultancy shows them what their current position is, and enables them to map a route forward.

The perfect solution Data on business and private mileage for individual journeys, real-world mpgs and costs-perkilometre: in short, a consolidated fuel purchasing and mileage expense management solution.

In concrete terms • You receive trip data from every driver in every locality - accessing multiple sources (e.g. different fuel cards and telematics arrangements in different locations) and from multiple expense processes.

• Company cars, vans, HGVs, car allowance drivers, 'grey fleet' (business use of private cars), pooled cars and shared vehicles in all fleet sizes, from 1 to 10,000s…

• Fraud is prevented. Fuel cards are often stolen or 'cloned'. These problems are revealed by inconsistencies between fuel purchases and recorded mileage.

• Detection can be further improved by a micro audit, taking into account individual trips as they are entered and comparing them with the days of the week that fuel was purchased.

The benefits are enormous Fleets and leasing companies can use consolidated fuel and mileage data to identify opportunities to make cost savings by optimising taxes and making productivity improvements across the mobility spectrum. ■

A few key facts • Real world data from your vehicles • Fuel costs under control • Substantial cost savings • Fraudulent fuel claims eliminated • Unnecessary (or non-existent) journeys identified • Vehicle costs compared by brand, model, powertrain…

• CO2 emissions analysed • The data collected and turned to real information directs your strategic fleet policies

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MANAGEMENT I Christian Lindskov Alsø, Fleet Manager of the Year 2015

Confessions of a Motor Man Christian Lindskov Alsø had also something else to celebrate on 19 November, when he won the Fleet Manager of the Year Award: “It was our tenth anniversary! Fortunately, my wife Marie had agreed to meet me in Rome the weekend following the event”.

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amily and work are the two most important things in Christian’s life, so it’s fortunate he could combine them both via the Fleet Europe Awards. In a way, he says, it felt a bit strange to be celebrated by the fleet industry. A native of the Danish island of Funen, Christian has an education in machine and tool manufacturing, and a background in procurement. Undeniably, he has a special bond with cars – in fact, anything on wheels that can go very, very fast.

Feelin’ Minnesota “When I was young, I wanted to become a motorcycle mechanic, but my dad said no. So I studied as part of an apprenticeship to become an industrial technician, working with lathes, metal cutting machines and learned to assemble machines”, says Christian, who would soon experience the first of his many trots across the globe: “When I was 17, I was selected to study for a semester at a technical college in the U.S. That was in Minnesota, where I arrived on the 2nd of January, at -40°C, the coldest winter they had had for 10 years”. Even for a Dane, that’s a bit chilly!

Christian got used to the cold, as well as the travel, for upon returning to Europe and completing his apprenticeship. He worked an on-site technician in northern Norway to learn and fund the engine repair of his second motorcycle. At 22, he was the youngest ever employee in his Danish machine development company to become head of workshop. “At that age, it’s not easy to exert authority over colleagues who are much older than you”, he recalls.

Two years later, he was promoted to technical manager, leading the workshop and an engineering team.

Procurement angles “Even though I approached work from a technical background, I became more and more interested in the business aspect. As the company grew, I got more involved in the procurement angles of the job.” That growing interest propelled him to Nokia. At 27, he was travelling in particular South East Asia and Eastern Europe as a mechanics sourcing manager. At 29, he was Senior Sourcing Manager for Nokia Tooling Technologies in UK. In his early thirties, while on a ex-pat stint in New Zealand, Christian was headhunted by Vestas Wind Systems:

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When Christian Lindskov Alsø, here on his Ducati 996 SPS, was 17 he studied for a semester in Minnesota (USA), where it was -40°C. Even for a Dane, that’s a bit chilly.

“They had built a diverse global manufacturing foot-print, and now needed to implement a strategic procurement programme to match. Marie and I moved to Shanghai.”

Shanghai is where the couple’s daughter was born.

Josefine, who is now seven, was joined after by August, now five and a half. August was born in the U.S. when Christian was working as Sourcing Director on setting up the Americas supply chain for Vestas Blades division.

Ducati 996 SPS About five years ago, Christian came back to Denmark.

Another headhunt brought him into his current role with ISS, the Copenhagen-based facility management and services giant.

Although his father may have got his way with respect to Christian’s studies, he never lost his love for the motorcycle. “In all I’ve owned 25 motorcycles. My favourite still is the Ducati 996 SPS. I also used this bike to race on trackdays. I do still go for track races in my 125ccm gocart. In the garage is now a Ducati S2R Monster used for commuting and evening rides.” Christian has also room for his dream car,“ but I’m still saving up for that one: the Porsche 911 4S. That one’s been on my list for many, many years”.

Who knows? Perhaps when he wins another prize – or celebrates the next anniversary... ■ Frank Jacobs

MANAGEMENT I Christian Lindskov Alsø, Fleet Manager of the Year 2015

“We walk the talk” As the Fleet Europe Awards jury pointed out, competition for this year’s International Fleet Manager of the Year title was tough. So why does Christian Lindskov Alsø think he won the prize in the category Large Fleet? On the stage in Rome, he credited his whole team at ISS World Services for the result. But there is another basic reason: “Often we meet colleagues who are Global Heads of Fleet in name only. But we walk the talk. We have a strong mandate within the ISS organisation to carry out our job”.

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here are no big secrets to ISS’s fleet management strategy, Christian Lindskov Alsø says – just a lot of hard work, and a cool, no-nonsense attitude. “Seventy percent of business strategies fail. That’s why we focus so hard on deployment”. Hence the steering committee overseeing fleet management, chaired by the ISS group COO, with participation by regional CEOs and CFOs. “With these people as stakeholders in the decision-making process, it’s not a matter if, but when we deploy our strategy.”

5.6% margin “And when we do, we get the country CPOs and CFOs to sign off on the fleet strategy in their country. We’re not just pushing PowerPoints down the hierarchy. We make sure to sit down with country and regional managers to decide on the right size of their local fleets.

Furthermore, we take great pride in working side-byside together with our Fleet Managers in the countries to achieve the best result – together!”

Sounds pretty straightforward, but, the Fleet Manager of the Year says, it’s still far from standard in the fleet management business. Which is all the more surprising, in that fleet spend often represents the second or third biggest spend category for most ISS countries, and considering that ISS operate a 5.6% margin business – attention to every euro spent is important.

“Over the past decade or so, I’ve worked in and with over 10 different commodity areas, from plastics moulding over aerospace to electronics manufacturing. And I have to say that fleet as a category or product still is a bit

Christian Lindskov Alsø with his International Fleet Manager of the Year Award: “It still surprises me that so many of my peers will say things like: That’s not a decision I can take. If you don’t have sufficient responsibility, you take it. Even if you have to fight for it”.

immature”, is Christian’s unvarnished opinion. “In a lot of cases, suppliers are simply pushing standard products to their key accounts; take telematics for example.

I still have to meet a company that has successfully integrated telematics technology in its fleet and had been able to measure the cost benefit that results from it in true P/L impact (bottom-line impact).”

“A lot of fleet managers are flooded in data, but all too often, that doesn’t lead to enlightenment, nor to concrete, actionable information.”

Here we hit upon a central plank of ISS’s fleet strategy: “We measure everything. If you can’t measure it, you can’t manage it. We run a fleet that is green and safe, but underpinning both is an attention to the financial bottom line – centrally led, but locally implemented.” Such diligence also extends to LeasePlan, ALD and other suppliers of fleet products and services: “We ensure that we are on the top of their agenda”.

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MANAGEMENT I Christian Lindskov Alsø, Fleet Manager of the Year 2015

Simple works Well, doesn’t everyone? In other words, how do you do that? “I’m a procurement professional, but I’m also a very simple person”, Christian laughs. “Simple works.

I’m fortunate that I worked for Nokia at an early age. Back then, Nokia had one of the best supply chains in the world.

Its focus was on being as close to the supplier as possible and act in a true and transparent partnership spirit.

That experience has formed my mindset.”

And one that put him on the path to success.

Immediately following his award, Christian was promoted from Head of Group Fleet Management to Head of Group Category Management and Group Vice President. “This means I am now no longer just responsible for fleet but for Category Management across our strategic categories, such as subcontracting, cleaning, workwear and travel.”

“Also, we have created a global community consisting of and existing for our fleet managers. Since the last two years they meet every 10 to 12 months, to join each other for training sessions, and to share best practices and experiences. This helps us to increase the level of expectations fleet managers have for their roles.”

NO ‘gut feeling’ That also involves aligning them to the no-nonsense approach to fleet management: “I don’t believe in emotions, nor in ‘gut feeling’. If you don’t have facts and figures to convince me, we won’t come to a decision.

Fleet management has a direct and significant impact on the external spend of our company.

Everyone needs to realise that, and take a moment to consider the numbers as they present themselves.

We have to make sure we have an entire landscape of facts in front of us. A lot of fleet managers only have a few pieces of the puzzle.

That’s how bad decisions get made.”

A lot of fleet managers are flooded in data, but all too often, that doesn’t lead to enlightenment.

So how does Christian actually measure the success of ISS’s fleet strategy? “Simple. You make commitments to various aspects of the business, and you measure the results. Have we met our commitments to suppliers and our own business managers? Have we achieved our CO2 emissions goals and other environmental targets? Are our fleet managers and drivers satisfied? The answer to all those questions is yes.”

How to get on the CEO agenda If there is one piece of advice that the International Fleet Manager of the Year would want to give to his business peers, what would it be? “The main job of the fleet manager is to get the fleet issue on the CEO agenda. You can rest assured that within ISS, our Group CEO knows about what goes on with the corporate fleet.”

If that sounds easier said than done, it needn’t be, says Christian Lindskov Alsø: “Just ask. Go, and ask for help and attention for your issues. Most people, when you ask them for help, will stop and actually help you.

But it’s also important to lean out. Make sure you can communicate what the importance of the fleet is for the business, and how you can improve your financial contribution to the company.”

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In an industry that professes allegiance to continuously improving transparency, efficiency and accountability, is that still even possible? Of course, Christian intones.

A big part of the problem is the scope of your fleet management: “It still surprises me that so many of my peers will say things like: That’s not a decision I can take. Good fleet management requires a sufficient level of responsibility. If you don’t have it, you take it. Even if you have to fight for it.”

“You should also get the senior stakeholders in your company on board. Remember, 70% of all business strategies fail, because they don’t get implemented.

Don’t let that happen to you. To avoid that, get those senior managers to take part in the decision-making process, like we do in our steering committee. That buy-in will ensure that the path to implementation is free.”

Luxury problem With a simple fleet strategy, one requiring a lot of diligence and hard work, ISS is left with a luxury problem: How to evaluate and improve a strategy that is already so stripped down to essentials? “I do believe we have a good strategy, and I don’t believe we should reinvent the wheel”, says Christian. “So what I do foresee, is a recalibration of the strategy.

“We measure everything”, says Christian Lindskov Alsø. ”Because if you can’t measure it, you can’t manage it.”

We have rolled it out across the EMEA markets, and will do so next in the Asia/Pacific and Latin-American regions. Thereafter, we will concentrate on our rightsizing initiative.”

Whether or not that is the case could be established by close analysis of operational requirements. The objective: a more efficient utilisation of the assets.

If necessary, by changing the assets.

Which doesn’t necessarily mean rightsizing on a macro fleet level. There is plenty to rightsize on a micro level as well, Christian explains: “Our surveys show that up to 95% of our company car/van drivers choose the same make and model for their next operational vehicle. Because that’s the easiest choice. However, those models change from one year to the next.

Development in the automotive industry implies that perhaps another vehicle model would be more suited to the needs of that particular driver.”

As for the fleet industry as a whole, Christian expects a radically different landscape, transformed by rapid technological progress on the manufacturing side.

“Governments’ roles will also be very important; their legislative work can speed up or hold back the evolution towards greener and more flexible modes of transport.”

Christian is quite sure of one thing: “Fleet management and the business of lease companies will have to become more transparent.” ■ Frank Jacobs and Steven Schoefs

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BUSINESS I International Fleet Industry Awards 2015

Transparency in fleet management rewarded It was with their Transparent Fleet Management Model that ARI Fleet won the International Fleet Industry Award at the 2015 Fleet Europe Awards in November. The company’s focus on complex fleets and transparency clearly impressed the jury, composed of corporate fleet clients.

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ver the last decades ARI Fleet has predominantly focused on complex fleets that cover assets including trucks, transporters, passengers’ cars and special vehicles.

With this exposure to customers who need their vehicles to run their business operations, correctly, ARI Fleet has learned that transparency is critical to truly understand in detail how well their fleet is – or isn’t – operating. This transparency is also absolutely necessary for lowering the total cost of ownership.

From the past…

The current European fleet management and leasing market on the supplier side is, in the view of the company, dominated by the rather un-transparent ‘all-inclusive’ closed-end leasing model.

Customers in the past felt that there was no better way to manage perceived risk than to outsource this risk on services and residuals to suppliers against an undisclosed premium. This behaviour was partly supported by the fact that due to the lack of data analytics capabilities, clients were not able to get a fully holistic view on their fleet costs and potential dependencies between different layers and behaviours in the organization on overspend. …to the future ARI Fleet, as a one-stop shop supplier in fleet management from acquisition through lifetime management to remarketing, wishes to change the way this category is looked at in Europe. This will happen, the company says, via two parallel streams that build one on another.

Sponsor and winners at the Fleet Europe Awards 2015: Ciprian Suta (Opel/Vauxhall Europe), Majk Strika (ARI Fleet), Edward Kulperger (Geotab), Thomas Emmert (SIXT Mobility Consulting).

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usage of the vehicle, location of the vehicle, technical issues… ARI Fleet concludes that fleet managers can read and recognise trends that will have an impact on their key fleet decisions. But also that they can simulate their personal KPI’s and orient them towards cost savings. ■ Steven Schoefs and Tim Harrup

ARI Fleet’s reporting tool puts the aspect of transparency at the centre, as the company is convinced that it is a necessary for lowering the TCO of a vehicle fleet.

Firstly, using the technical innovation that exists around big data concepts and data analytics. Instead of rationalizing their fleets based on average assumptions, fleet decision makers will in the future be able to track down root causes and simulate predictive scenarios. For example, running a fleet of several hundreds of transporters, trucks and passenger cars in different locations for different entities in a country makes it difficult to really understand and compare the maintenance cost that occur in real life. As a result, the following questions are not answered sufficiently today: How many break pads from which brand were used from which driver in which location? How can maintenance and repair visit be predicted to avoid downtime of the vehicle?

Comparisons Secondly, ARI Fleet believes it is necessary to compare the cars themselves: How many days or hours does one brand or OEM suffer from downtime compared to another, and what are the actual reasons for that? It is important to know whether the cause is driver behaviour,

Geotab: Valuable data for drivers Geotab got second place at the 2015 International Fleet Industry Awards. Geotab’s intuitive solution is comprised of the Geotab GO7 and Geotab software platform that provides vehicle generated data that is translated in an automated ‘driver log-book’ application.

This one provides tax benefit and real return on investment while user efforts are truly minimized. The client is automatically prompted after a vehicle trip with the question: ‘Was this vehicle a business trip?’ The client clicks ‘Yes’ or ‘No’. In Germany, there is tax implication for personal against business driving and the driver is responsible for submitting this information to the tax authorities. This program automates the process easily, saving hours and providing over 100 Euros per month in tax savings to the driver.

Moving forward, Geotab’s will is to stay focused on the engineering side and invest heavily in its automotive business. Normalizing engine data so that it may provide value to the fleet management community is its key research focus.

Geotab is on a mission to get at one million subscribers and bring business intelligence solutions to their operations. Data-centric solutions continue to evolve around safety initiatives as well as emission and fuel data.

SIXT Mobility Consulting: Efficiency in ‘glocal’ reporting You probably know SIXT as one of the largest rent-a-car companies or as an international leasing partner. In 2012 SIXT took the next logical step: to offer independent fleet management and mobility consulting services with SIXT Mobility Consulting. The development of their Global Reporting tool got them the bronze medal at the 2015 International Fleet Industry Award.

The Global Reporting Solution targets large international corporations that run a fleet across the globe, in various countries with very diverse market contexts. The global reporting helps them to collect information locally, consolidate them consistently, and allowing to identify saving opportunities, ensure compliance, implement strategies, etc.

SIXT Mobility Consulting is convinced connectivity and technology will support the development of predictive fleet management. The main advantages will be a lower TCO, less downtime and maybe even fewer accidents.

Moreover, telematics and controlling ‘big data’ will stimulate a different approach to fleet utilisation, including new mobility with corporate car sharing.

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BUSINESS I Industry news

Luc Soriau heads Arval in Spain.

Luc Soriau, new General Manager of Arval Spain Since November 2015 Luc Soriau is new General Manager of Arval Spain.

Arval is one of the leading car leasing companies in Spain with over 71,000 vehicles under contract. In Spain Arval is cometing for the top car leasing spot with LeasePlan who had around 73300 vehicles under contract at the end of 2014. Mr Soriau has a long experience in car leasing, as he worked between 2007 and 2015 at TEB Arval in Turkey as Manging Director - Member of the Board. In Turkey Mr Soriau was also Board Member of TOKKDER, the Turkish Car Rental and Leasing Association.

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Baudouin de Mégille has a long career in automotive and was also in charge of fleet management activities at Veolia.

Ubeeqo appoints Director for EU Fleet Management Baudouin de Mégille becomes Director of Europe’s Fleet Management market at Ubeeqo. His task will consist of developing the fleet management activity regarding all European markets where Ubeeqo is present: France, Germany, Benelux and UK. Especially, he targets to make Ubeeqo’s Bettercar fleet and driver management offer the main reference in Europe. In 2015, Europcar became capital holder of Ubeeqo.

Wolfgang Stahl: “We are confident that we will be able to strengthen our fleet position in the future.”

Wolfgang Stahl is new European Fleet Director at Opel Opel has appointed Wolfgang Stahl to the role of Director European Fleet, Remarketing and Used Vehicle Operations. He succeeds to Ian Hucker who last year has taken the position of Executive Director Sales for Opel Europe. Wolfgang Stahl, 46, brings with him automotive experience in operational and strategic functions. Previous experience includes roles at Chrysler Financial, DaimlerChrysler, and Mitsubishi Motors Europe. He has also run his own K2P Consulting business.

ALD to expand activities in Hungary and Bulgaria

Integration GE in Alliance ArvalElement to be completed in 2016

Car Leasing and Fleet Management company ALD Automotive has entered into a definitive agreement with MKB Bank and Letét, to acquire 100% of the shares of the Hungarian fleet management company MKB-Euroleasing Autópark and its Bulgarian subsidiary MKB-Autopark. MKB-Euroleasing Autópark owns a total fleet of nearly 9,400 vehicles, 7,700 in Hungary and 1,700 in Bulgaria.

The fleet year 2015 will be remembered as a very dynamic one. For sure one of the fleet milestones in 2015 was the acquisition of GE’s fleet business by the Alliance Arval-Element. In an exclusive video-interview Philippe Bismut, CEO of Arval, and Jim Halliday, Executive Vice President of Element Financial Corporation, shine their light on the integration process and the advantages for fleet customers.

ALD Automotive has been present in Hungary for 10 years and manages today 6.000 cars for its 500 clients.

In Bulgaria, where the activities started a year and a half ago, ALD Automotive now manages 2,200 vehicles.

See the video on www.fleeteurope.com, or by scanning the QR-code.

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BUSINESS I Toyota Motor Europe

So long, diesel and petrol?

Is Toyota abandoning the internal combustion engine altogether? Following its recent ‘Environmental Challenge 2050’ presentation, Fleet Europe spoke to European vice president of Research and Development, Gerald Killmann.

Toyota wants to cut its vehicle CO2 emissions by 90% by 2050, compared to 2010. Does that mean that conventional cars are doomed? And does it strengthen its conviction that hybridisation was the right path to choose?

Gerald Killmann: Toyota has chosen hybrid propulsion as a core technology towards the future. The reasons behind our decision back in the early 1990s to move towards this type of sustainable mobility are today more valid than ever. In this sense Toyota is convinced that it has made the right choice. However, hybrids are today a combination of an electric group with an internal combustion engine (ICE), and will remain as such in the coming years. Although we will see an increasing degree of electrification in the coming decades, the ICE will not disappear. It will gain in efficiency and continue to offer lower emissions, thanks to the optimisation offered by hybridisation.

Wil Toyota diversify its offer and for instance develop 48V systems, as Volkswagen intends to, to replace diesels in the short run?

GK: In view of our goal to drastically lower CO2 emissions by 2050, ‘mild’ 48V systems are less interesting for a constructor such as Toyota, which already has highly evolved and much more powerful higher voltage systems in place. I would not exclude 48V, but it would never be more than an intermediate step in the evolution. Talking about diversification: diesel will remain part of our portfolio, as this type of engine contributes to achieve our CO2 objectives and still has a considerable development potential, regardless of the recent events that surely do not improve its reputation.

Will the increasing number of plug in hybrids available on the market push diesel sales back?

GK: That will mainly depend on the consumer’s reaction to the recent events and on whether diesel will continue to make sense economically speaking. Hybrids or HEVs will definitely continue to gain market share, across all segments. Plug in hybrids or PHEVs offer higher tax advantages thanks to the even lower CO2 emissions on paper, partly offsetting the extra investment cost, but the real fuel consumption and emissions depend very much on the discipline of the consumer to plug his PHEV in as much as possible. That is probably why, from our experience, the customer interest in PHEVs is lower than in HEVs.

Gerald Killmann, Toyota Motor Europe, on CO 2 reduction challenges, in which diesel powered cars will keep a place.

Toyota has recently launched the Mirai. Could you say that the fuel cell car is now where the hybrid was 20 years ago in terms of market readiness and potential?

GK: The name Mirai means future in Japanese and thereby carries our expectations for the car. Looking back on our first Prius: it took 6 years to build and sell 120,000 units in total. Today, we sell 1.3 million hybrids per year, reflecting the exponential growth. For fuel cell hydrogen vehicles we expect a similar trend. By 2020 we reckon to be at a level of 30,000 units per year. We strongly believe in hydrogen cars because it is a true zero emission solution: its fuel can be produced through renewable electricity and can act as a buffer for excess electricity provided by the grid. Refuelling only takes 3 to 5 minutes, and it does not have the range limitations of an electric vehicle.

So fuel cells are the ideal zero emission long distance vehicles. But one obstacle remains: the lack of refuelling infrastructure. How will Toyota tackle this?

GK: In order to expand the coverage it is important that we work together with partners on both the infrastructure and the vehicle side, to gain experience, chart the requirements and establish the sites where the vehicles will be sold so that the infrastructure can be put in place near these sites. It is paramount that the offer of fuel cell cars grows. That is why Toyota has opened the patents on its technology, so that other constructors may use it without licence fee. ■ Dieter Quartier

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SMART MOBILITY I Connected Car-Sharing

Smartphone mobility with Uber Fighting climate change with a smartphone and improving smart mobility is possible ! All that is needed is opting for car-sharing to go to work by simply clicking on a mobile application. Fewer cars is a step towards reducing traffic, pollution and improving mobility in cities: this is exactly what Uber proposes.

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here are two very interconnected realities out there: first, pollution in big, often overpopulated, cities facing congestion keeps growing; second, employees need to gain time when driving between home and work every day. Car-sharing brings a cost-efficient solution to both reducing car pollution and improving smart mobility in companies. Uber, the ride-hailing company valued at 47 billion euros, remains a pioneer on how to car-share easily through a smartphone application. “Technology can help empower citizens to make smarter choices about their lives. By making it easier and more convenient for people going in the same direction, at the same time, to share the journey we can help cut congestion and pollution. It is a model that has worked in several cities. For example, carpooling now makes up nearly half of all our trips in San Francisco and over 30 percent of our trips in Los Angeles. In its first eight months in LA, passengers undertook over five million carpool trips—cutting the number of kilometers driven across town by 12.7 million and carbon dioxide pollution by 1,400 metric tons”, precises Susanne EliasStulemeijer, Communications EMEA at Uber.

More car-sharing, Less car ownership In a near future where cars, even for personal use, are going to be more and more leased rather than purchased.

Uber’s idea to offer “smartphone” alternatives to car ownership will probably find more followers among company employees. “Carpooling is all about getting more people into fewer cars. And over time, we can also create credible alternatives to car ownership. After all, if you can press a button and get an affordable ride across town within minutes, why bother to own a car at all? There’s an alternative to a world that looks like a parking lot and moves like a traffic jam”, explains Susanne Elias-Stulemeijer.

Perpetual trips are multiplying Uber’s last services launched are uberHOP in Seattle, the ride-sharing service uberPOOL in London – already existing in Paris since last year – and uberCOMMUTE in Chengdu and in Chicago. “These are all ridesharing

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Uber’s car-sharing is at a smartphone’s reach.

Smartphone mobility is undeniably a solution to city congestion and will improve tomorrow’s fleet mobility management.

solutions that aim to get more people into fewer cars, but those solutions are tailored to the local fabric of a city”, she adds. UberHop is a little urban bus, based on Uber CEO Travis Kalanick’s wish to develop the “perpetual trips” concept, which for 5 dollars drives riders going in the same direction through Friday from 7-10 am and 5-8 pm. UberCOMMUTE allows drivers to share the cost of the trip for longer distances.

Since the number of its drivers keeps rising in more and more cities. Uber wans to reduce the price of potential rides per day by increasing their number and their frequency, even over small distances. In the UK, an association is ahead between UberPool and UberRush, its delivery service, to reduce driving costs. Uber’s next objective is to use its real-time data to fuse moving supply and moving demand, matching this way the transport of people and the transport of goods. A collaboration with Facebook is also happening in the US, users will be able to call a vehicle from the Messenger smartphone application. Carpooling at the press of a button is undeniably part of tomorrow’s smart fleet mobility management. ■

Antigoni Vokou

SMART MOBILITY I Connected Car-Sharing

Renault reinvents mobility The French leading worldwide manufacturer of electric vehicles is accelerating its efforts in the domains of car-sharing and telematics, and is developing new mobility services.

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n front of global warming, and in order to limit the emissions of greenhouse gases (GHG), electric mobility represents a promising solution. As a pioneer on the electric vehicles market, Renault offers a complete range and has already sold 250,000 of its zero emissions models across the world. From the beginning of this year, Renault Zoé is being equipped with a new motor which increases its range up to 240 km. Just like Sepur, which has introduced 120 Renault Zoé’s into its fleet, an increasing number of companies are including Renault’s electric vehicles on their lists too. 60% of Twizy are sold to companies and the EV model is attracting the attention of new sectors of activity thanks to its Cargo version with a 180 litres trunk and a load capacity of 75 kg.

Fluence and Kangoo ZE complete the range of Renault’s electric vehicles.

Renault’s re-charge network In order to help companies adapt to electric mobility, Renault assists them in the installation of re-charging infrastructure. Either the company in question launches

a call for tenders from different suppliers, or the French manufacturer analyses the needs and gives its recommendations. To respond to all demands, Renault has created liaisons between all the players concerned, and intervenes itself in order to simplify to a maximum the equipment procedures.

More re-charging points Aware of the importance of the re-charging infrastructure in the development of electric mobility. Renault is doing all in its power to densify the public network. The manufacturer has thus committed to equipping the service stations on the most heavily used axes of the Vinci Autoroutes network. Another example is the agreement signed with the E. Leclerc to equip 500 of the hypermarket’s car parks. In addition, within the framework of the EU Corri-Door project, of which Renault is one of the partners, a first wave of 200 rapid re-charge points is in the process of being installed on the major axes, the motorways and the urban perimeter segments of the French network.

© Laurent Villaron

Renault announced that the number of re-charging points will be tripled within two years in France and quadrupled within four years.

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SMART MOBILITY I Connected Car-Sharing

At the end of 2012, Renault signed a protocol with the Caisse des Dépôts, ERDF and PSA Peugeot Citroën for the creation of a common structure dedicated to inter-operability between recharging points. Known as GIREVE, this project aims to identify all of the installations and develop data exchange standards which will enable payments to be divided among the various operators, similarly to bank cards. In parallel, a range of services will enable drivers to locate charging points via GPS or smartphone, and use them regardless of the ownership (local authority, car park owner, mobility operator, etc.).

Connected services Along with the electrification of transport, Renault is speeding up its efforts in new mobility services, in particular in car-sharing. RCI Bank, the manufacturer’s financial structure, has taken over the B to B car-sharing activities of Nissan to create a subsidiary dedicated to these services: RCI Mobility. Renault is in particular turning to telematics to develop its new offers. Pro + Board, via a communicating box-unit, is a solution

enabling companies to manage better their vehicles.

Additionally, by analysing the driver behaviour, managers can promote more efficient eco-driving and limit their environmental footprint.

Renault’s R-Access enables a vehicle to be reserved via a dedicated internet site, to unlock the door with a smartphone and find the keys in the glove compartment. The vehicle can be locked too with a smartphone. With R-Access, companies can easily set up a car-sharing service and benefit from total reporting.

“The data from the vehicle and the client are of crucial importance in order to be able to provide more suitable service contracts”, explains Jean-François Martin, director of Renault Services International. “With telematics, the company possesses the data enabling it to make the right decisions at the right time, and the driver saves time while benefiting from increased comfort.”

A winning equation for all parties. ■

Eric Gibory

Mobility at hand and on demand Another step towards smarter and faster car-shared mobility with just a smartphone has been taken by Arval and LeasePlan.

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month ago the two car leasing giants launched specific eco-friendly and flexible mobility car-sharing offers for companies. This shows that the shift from fleet management to mobility management is operating. Arval’s Car Sharing service is mostly oriented towards a no-key and mobile use, while LeasePlan’s SwopCar aims to relieve fleet managers of the operational and administrative constraints of managing cars without dedicated drivers.

Arval proposes Car Sharing with an application which allows employees to start the engine, open and close the car’s doors with their smartphones. Once you download it, for Android and iOS, reservation with smartphone or computer is rapid. As for those who don’t want to use smartphones, Arval gives a card which also makes possible all the open/close doors functionalities without a car key. In the case of an accident, the driver can report it immediately through this application.

SwopCar is on-demand and hassle free. It allows employees to reserve themselves when they need a

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Car Sharing services from Arval and LeasePlan propose a no-key and mobile vehicle use, easy for employees online reservations and administrative support.

vehicle for a trip. Firms opting for SwopCar car sharing service can additionally improve their green performance because the usage reporting system provides reports and car insights on CO2 emissions. SwopCar responds to mobility managers’ needs such as reducing mobility costs and checking car availability immediately.

In addition, LeasePlan takes care of the refuelling and maintenance. ■ Antigoni Vokou

SCOPE I Lease Accounting Standards

Existing rules are more suitable How should leases be accounted for? That issue has been debated by standards setters since at least 1949 in the U.S. and 1964 in Europe. A new update in which the position of off balance sheet leasing is no longer hidden in the shadow, has been just released (see fleeteurope.com).

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nd this update could have potentially important consequences for the vehicle lease industry, says Julian Rose, Lease Accounting Expert for Leaseurope.

Why do lease accounting rules need to be updated?

“The basic problem is that leases fit on a continuum between providing finance for an outright purchase and a service. Most types of leases, and fleets are a good example, have both financing and service elements to them. As a result, there’s no perfect single way to account for leases, and there never can be. The best standards setters can hope for is - to quote a really bad pun from the Economist recently - the ‘lease bad solution’.”

To whom will these rules ultimately apply?

“In Europe, all ‘public interest entities’ (PIEs), which are mainly companies listed on stock exchanges but also banks, will have to use the new rules from 2019 if they are approved by the E.U. They will also have the option of ‘early adoption’ of the rules. Only around 4 in every 1,000 companies in Europe are PIEs”.

“Other European companies will continue to use the existing lease accounting rules, at least until their national accounting regulators work out what to do. Each national regulator decides what accounting rules companies in their country should follow. Some base their local rules on a special version of international standards called IFRS for SMEs, but this won’t change for at least another three years. Others operate their own local standards.”

Of particular relevance to fleets, the possible appearance of some rules around the lessor’s ‘Right to Substitute’ assets.

“For many years, the regulators have told us to split our leases between operating leases and finance leases. Operating leases - including most fleets - are treated similar to services, so the cars remain on the lessor’s balance sheet. Assets on finance leases transfer to the lessee’s balance sheet. It isn’t perfect of course and it could be improved. But the rules are well-understood and they have worked in Europe without major problems for the past 21 years.”

“Following some high-profile business failures in the United States in the 1980s and early 1990s, where firms such as Enron had lots of operating leases, the accounting standards setters were under pressure to change the system. After ten years of trans-Atlantic discussions, meetings and consultations, the Financial Accounting Standards Board (FASB), the U.S. regulator, and the International Accounting Standards Board (IASB), the ‘rest of the world’ regulator, have invented the new ‘Right of Use’ model of lease accounting.”

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“It’s likely that national standard setters will wait to see how the new rules work out for the PIEs before deciding what to do. So it’s not yet clear how most companies in Europe will be affected - and it will be many years before most companies will change their accounting.”

What will these changes mean for the fleet industry?

“Listed companies and other PIEs will show the value of their lease commitments on their balance sheet. In many cases the values involved for fleets are likely to represent only a small proportion of total assets for the business, so the effects will be limited. Perhaps the biggest impact will be on users of the accounts, including investors, who might have difficulties understanding and comparing sets of accounts.”

“Of importance is how the IASB will draw the line between leases and services. Of particular relevance to fleets,

In Europe, all ‘public interest entities’ (PIEs), will have to use the new Lease Accounting Rules from 2019 if they are approved by the E.U. Only around 4 in every 1,000 companies in Europe are PIEs. we expect to see some rules around the lessor’s ‘Right to Substitute’ assets. As the fleet industry moves towards mobility solutions it’s possible that more and more fleet solutions won’t be accounted for as leases at all, because the specific cars being used will become less relevant and the lessor will substitute them when that is an efficient option.”

Will IASB and FASB have the same standard?

“The American version of the rules will still distinguish between operating leases and finance leases, whilst the International version (used in Europe) will lump them all together. Also under the U.S. rules the lease expense will be spread evenly over the period of the lease, whereas in Europe the PIEs will see more expense reported in the earlier years of a lease and less towards the end.”

Will this have consequences for global fleets?

“It’s going to make consolidation of accounts a bit more complicated but accounting teams in the largest companies will cope with that. Again it’s the users of accounts including the investors who might need some more help and perhaps will miss the relative simplicity of the current rules.”

How will these changes affect the legislative/fiscal framework?

In some countries, for example the U.K., the tax rules for leasing are linked to the accounting rules. Where they are linked, it seems likely the tax authorities will decide to ‘freeze’ the accounting rules, at least in the

short to medium-term. Companies using the new leasing standard would then use the existing IFRS 17 accounting rules to prepare accounts they will send to the tax authorities.”

Leaseurope defends the interests of the leasing industry across Europe. How does your organisation evaluate these changes?

“Leaseurope has been lobbying on this issue since the project started in 2006 and we expect the final Standard will at least be better than it could have been.

Whatever we think about whether the new accounting model makes any sense, and that’s certainly debatable, fortunately it’s only the accounting for leases that is changing. The real economic benefits of leasing of fleets should not be affected.”

“Ironically, given the reason for the new Standard, it is likely to be investors and other users of accounts who could face the biggest problems as they try to make sense of the numbers in the accounts of PIEs as they start to use the new rules.”

“Even if it does approve the new standard for use in Europe, Leaseurope will be asking the European Commission to make clear that this is only likely to be relevant to PIEs. The existing lease accounting rules are likely to remain far more suitable for most European companies.” ■

Frank Jacobs

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SCOPE I Turkey

A vibrant fleet market in a volatile region It’s impossible to think of Turkey and ignore its precarious geopolitical situation, wedged between Syria’s civil war and a Europe wary of that conflict’s spillover. But Turkey is also a vibrant economy – its growth in 2015 propelling the country’s rapidly expanding fleet industry towards maturity.

Turkish fleet industry insiders detect a growing trend towards operational leasing. Which, given the current numbers, is likely to lead to a boom for the lease sector in 2016 and beyond.

Consider the data: of Turkey’s 10 million passenger cars, approximately 2.4 million are corporate vehicles.

Of those, only 10% are procured via operational leasing.

As awareness and acceptance of the vehicle leasing option grows in Turkey, the latter figure could increase dramatically in the near future, certainly when Turkey would allow operational leasing for light commercial vehicles.

As in other emerging markets, it’s the big, international companies that have the highest affinity with leasing. But local players are detecting a shift in attitudes in local Turkish companies, even among the SMEs – and are expecting these to provide much of the sector’s future growth.

That shift is effected by both push and pull factors. Pushing Turkish corporates towards leasing are increasing car prices, the depreciation of the Turkish lira and overall market volatility; pulling them are the inherent

The need for integrated mobility and new mobility solutions in Istanbul is very real, but the offer is poor and the client awareness is low. advantages of the operational leasing formula – allowing companies to focus their finances and efforts on their core business. Push and pull combine to form the ideal ferment for operational leasing market growth in Turkey.

Maturity will follow growth, as is already evidenced in today’s fleet market in Turkey.

Local fleet managers are getting to grips with the TCO concept, an evolution spurred by the extremely high cost of fuel in Turkey, among other factors. Another element of increasing maturity is the sheer size of the growing market, which will spur the professionalisation of the sector.

Global Fleet, your window on the Turkish fleet market Turkey’s car fleet market will continue to make giant leaps forward to the levels of maturity that industry professionals know and expect in Europe and North America. But at which speed? Will the Turkish government find ways to energise the market even more? Which global players will deepen their commitment to the Turkish market? For an answer to all those questions, keep an eye on Global Fleet (www.globalfleet.com), your window on the fleet market in Turkey, and indeed around the world.

Too early for alternative mobility Car fleet management in Turkey is also becoming more mobility-oriented – even if the legal and fiscal framework hasn’t quite caught on to the opportunties offered by mobility, or indeed to the real need for alternatives in Turkey’s traffic-clogged streets.

This has led to a curious state of affairs.

By sheer numbers, mobility solutions in Turkey are very few and very far between. Some car pooling takes place, but not much more. Car rental is used to solve urgent needs. There are signs that car sharing may flower. Yet on the other hand, the need is very real, for sure in Turkey’s capital Istanbul, and fleet managers are examining the options with great interest.

The potential for mobility services is therefore great. But there are several obstacles to overcome. One is the government’s inertia at providing the proper incentives, another is the Turkish mentality, which still sees cars as prestige possessions; which obviously runs counter to the provision of mobility services on a need-to basis. ■ Frank Jacobs

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