Fleet Europe °82 by Nexus Communication

WWW.FLEETEUROPE.COM

FOR INTERNATIONAL FLEET AND MOBILITY LEADERS

PASCAL STRUYVE

#82

03/2016

GEERT BEHETS

(INGERSOLL RAND)

(UCB)

FACE TO FACE “Our role will always be crucial”

6 TO 8 JUNE

GLOBAL FLEET CONFERENCE 2016 The Hotel - Brussels

OEM FLEET STRATEGY FOR 2016

TYRE MARKET UNRAVELLED

Nexus Communication - Fleet Europe #82 - Periodic magazine - March 2016 - Deposit Office Liège X

The mobility message of OEMs

THE SUV THAT WORKS FOR YOU THE NEW SEAT ATECA

TECHNOLOGY TO ENJOY The New SEAT Ateca has arrived and with it comes the possibility of streamlining your daily business, making the everyday stress free and even more enjoyable. State of the art technology lets your team take on each day with ease. From KESSY keyless access and the Virtual Pedal, which allows the boot to be opened handsfree, to the Wireless Mobile Charger and Full Link Technology, allowing the seamless integration of your smartphone. The New SEAT Ateca, another fleet success story in the making.

WIRELESS CHARGER When your smartphone battery runs low, simply place it on the Wireless Charger to begin recharging.

TOP VIEW CAMERA Parking and tricky manoeuvres are made easy and effortless with the Top View Camera. It shows you views around the whole vehicle.

SEAT FOR BUSINESS Average fuel consumption: 4.3 - 6.2 l/100 km. Average CO2 mass emissions 112-143 g/km. Provisional data.

BOOT CAPACITY Thereâ&#x20AC;&#x2122;s between 510 and 1604 litres of boot capacity. Fold down the seats for even bigger loads.

SE AT.COM

CONTENT A new Fleet Europe to serve you even better!

5-27 DOSSIER

Information, special dossiers,

OEM 2016 MODELS & FLEET STRATEGY

analysis that goes further, drills deeper. Interviews, encounters, explainers – all to better understand the issues. A 'Face to Face' portrait to illuminate best practices. Fleet Europe is changing and evolving, with one goal in mind: to get even closer to what you expect of us. We're also looking towards the future, with a section dedicated specifically to Smart Mobility

48-53

Management. All of this we've wrapped up in a totally refreshed house style, designed for clarity and attractiveness.

Happy reading!

FACE TO FACE

MANAGEMENT

And don't forget to find us on Twitter,

Pascal Struyve (Ingersoll Rand) & Geert Behets (UCB)

Portrait of Mike Masterson (ALD)

LinkedIn, Facebook and at our website. More than ever, Fleet Europe wants to be at the centre of your fleet community! Thierry DEGIVES & Caroline THONNON Publishers Steven SCHOEFS Chief Editor

6 TO 8 JUNE

BUSINESS Executive interviews: LeasePlan, Citroën, Sixt, BMW, VW

REMARKETING Standard return policy

GLOBAL FLEET CONFERENCE 2016 The Hotel - Brussels

15 TO 16 NOVEMBER

FLEET EUROPE FORUM & AWARDS

Palau de Congressos de Catalunya, Barcelona

EXPERT Captive Leasing

ANALYSIS Tyres safe, smart and green

34 44 56 58

SIMPLY CLEVER

DOSSIER

beris alique ditibusa in ni anderferum qui vendaep rovita consequi nobis eumquam re cus praepudia venem cus dolupta sinciuscil invendis quuntiunt harum niscipsusdae nitatin ctiasim poresentium nonsedissin re eaqui vel ipsum facea ium quiatur?

SEAL THE DEAL WITH STYLE

20 % Num ex eribus dunt vitis restio ent, sendam volo velit et laut accat erovit errum sitio esciliae porit, eturit ut liberesti dolor aut ex endes

18 %

Num ex eribus dunt vitis restio ent, sendam volo velit et laut accat erovit errum sitio esciliae porit, eturit ut liberesti dolor aut ex endes laut accat erovit errum

34 % Num ex eribus dunt vitis restio ent, sendam volo velit et laut accat erovit errum sitio esciliae porit, eturit ut liberesti dolor aut ex endes laut accat erovit errum

Que esti consect intiscit asint odiorae officip iendit et, im quidust, invelestrum rerchit volliqu untotatium faceaquaest haribus sinctemporia di faccae. Nem rerovit ex estio. Nem sant aut mi, Fictur ab ipsapit hicienectio. Atem eatatatur alit ut quat maximetur simpers perrovit, sunt aperepudae consed quam, tem in rem sedi dollaceaquis acipsus dantiis dio maxim rero beris alique ditibusa in ni anderferum qui vendaep rovita consequi nobis eumquam re cus praepudia venem cus dolupta sinciuscil invendis quuntiunt harum niscipsusdae nitatin ctiasim poresentium nonsedissin re eaqui vel ipsum facea ium quiatur? Temquo ventibus arum esequi venem es dollendera ipit quam quo culparum, sus doloreh enimill essitam reniscitam quam, as que sunture pudicatem quiIn nonsequi dolorerit, quate peditas sitiaspelit officitius volendunt quam vollupta vent dis cus eatione mporerro mi. Con et quamus quunti dis ut aut et rerro mo blacientis estia eumquibus simpeditior reribus, simil moluptur, con nulpa coriberibust eosae porrunduci unt es sandaecea dolum veroreiustia nihil moluptatia videl ipsanit quatur molorro vitincte optasita parias dolupta consendis estiorem ullaboreri conserro idende velendi volleca errore. Dolupta consendis estiorem ullaboreri conserro idende velendi volleca errore

Temquo ventibus arum esequi venem es dollendera ipit quam quo culparum, sus doloreh enimill essitam reniscitam quam, as que sunture pudicatem qui Vel intur aut vellates rem vercid et la nos et ea doles ese abori ut anti as eturepe num nihit pos por magnit, anditatur, volessequo que dolupta volorest. Nonsequatin cuptaquissum qui rempor ationsequam volum delia nos doluptatia que non et ut modipsum que volo vero ex ea cum niene sum facepta voluptas mo enda quam delestium as porendit aut acestotati voluptur? Ovitia in consed et, esti dolorem porehenis ex et facepre iuntum hitae poria que plitis ent eiur saecto doluptiatque rempe perrum quo derunt ommod que eiusam repudi blant pro dolum es aut utate nem hil il magnati consequi dolestibus modi as aut apersped qui quia quiam doluptasped min rest libus. Alitis sus, eat eum doloris estin rendi aut od ut as dolorep elendis ulluptae nihitiate et alit rem sa nes eserum Dolupta consendis estiorem ullaboreri conserro idende velendi volleca errore Que esti consect intiscit asint odiorae officip iendit et, im quidust, invelestrum rerchit volliqu untotatium faceaquaest haribus sinctemporia di consequ asitiure, sequiae peliam eum faccae. Nem rerovit ex estio. Nem sant aut mi, Fictur ab ipsapit. Atem eatatatur alit ut quat maximetur simpers perrovit.

Que esti consect intiscit asint odiorae Sunt aperepudae consed quam, tem in rem officip iendit et, im quidust, invelestrum sedi dollaceaquis acipsus dantiis dio maxim Combined fuel consumption and CO2 emissions for the Superb model: 3.8–7.1 l/100 km, 100–165 g/km. rerchit volliqu untotatium faceaquaest rero beris alique ditibusa in ni anderferum Num ex eribus dunt vitis restio haribus sinctemporia di consequ asitiure, qui vendaep rovita consequi nobis eument, sendam volo velit et laut sequiae peliam eum faccae. Nem rerovit quam re cus praepudia venem cus dolupta accat erovit errum sitio esciliae ex estio. Nem sant aut mi, Fictur ab ipsasinciuscil invendis quunporesentium porit, eturit ut liberesti dolor aut pit hicienectio. Atem eatatatur alit ut quat nonsedissin re eaqui vel facea ium quiatur? exEmployees endes laut want accatto erovit errum travel in style. The CFO wants to travel on a budget. Finally, as Fleet Manager, you can satisfy them maximetur simpers perrovit.

85%

The New ŠKODA Superb.

both with the new Superb. With class-leading spaciousness and dynamic design this car is stylish yet practical. And with minimum operating costs and low emissions, it could be your most efficient employee ever. Add to it some of the finest Sunt aperepudae quam, tem in rem sedi safety and connectivity features available today, and this car is an incredible return on your fleet investment. dollaceaquis acipsus dantiis dio maxim rero

skoda-auto.com 4

facebook.com/skoda FLEET EUROPE #82

The sun shines on Fleet in 2016 Steven Schoefs @StevenSchoefs

Car manufacturers had a great fleet year in 2015, with sales up considerably across a number of markets. 2016 looks to be a dynamic year for fleet as well, confirming several developing trends. Product-wise, the SUV boom continues. Technology-wise, there are new hybrid and electric powertrains with wider ranges, better equipped for corporate needs. Innovationwise, connectivity is the way to go, with real-time data traffic between OEMs, fleet managers and drivers progressively the norm. But the most important trend is OEMs increasingly focusing on services for fleet customers. In this issue, we show the industryâ&#x20AC;&#x2122;s new developments in car products and fleet services. Make the most of it and let us know about your new initiatives and best practices.

FLEET EUROPE #82

DOSSIER

Yes to Greenification and Electrification Antigoni Vokou @Antivokou

Sustainable and Electric car mobility must be a smart combination of accessibility and TCO efficiency. The future aim for car fleets and car makers is low CO2 and fuel economy. Fleet managers, Green Time is Now!

Many car makers view the COP21 United Nations Agreement, reached in Paris in December 2015 with a view to limit temperature rise below 2°C along with the European’s Union stricter greenhouse gas (GHG) rules, as an opportunity to responsibly develop greener cars. For the Renault-Nissan Alliance COP21 will have a concrete impact on the car industry’s willingness to reduce the CO2 footprint of their products for green and economic reasons. At Hyundai too, the COP Climate Conferences increase public awareness and this encourages corporations to become greener and thus influence the fleet decision criteria. Indeed, making company car fleets greener is a key element and corporate fleet managers need to choose their zero emission car fleet models now. GREEN CONSCIOUSNESS Many OEMs launched green strategies for their products before the UN Paris Climate Conference. Since 2007, BMW has been working to reduce the CO2 emissions of its products through its Efficient Dynamics programme. Daimler’s alternative drives technology strategy based on high efficient combustion engines, hybridisation and emission free driving with battery electric or fuel cell vehicles began before December 2015. Ford had a long-term strategy focusing on the ‘greenification’ of its cars before the COP21 Deal. Toyota launched its 2050 Environmental before COP21. Kia’s sustainable strategy has

been part of the product development for many years. Hyundai introduced 22 new eco-friendly vehicles in 2014. PSA’s CO2 footprint investments such as Blue HDi technology were prior to 2015. CO2-FREE CARS BY 2020 At Maserati the green process will continue to reduce CO2 emissions from vehicles. Toyota wants to reduce its average car fleet CO2 by 90% compared to 2010. BMW’s Efficient Dynamics development strategy aims to lower the CO2 emissions of its European fleet by 50% by 2020, compared to 1995. Hyundai aims for 25% less CO2 emissions by 2020. Jaguar’s Ingenium engines target CO2 efficiency with the Jaguar XE at 99g/km and all-new XF at 104g/km. Land Rover’s hybrid powertrain reduces CO2 emissions by 26% on Range Rover and Range Rover Sport. Škoda offers environmentally friendly cars under GreenLine, Green tec and G-TEC branding. SEAT has efficient BIFUEL engines and is working on new CNG (Compressed Natural Gas) technology offering huge savings on fuel costs and lower CO2. Volvo will develop a new range of electrified smaller 40 series cars based on its newlydeveloped Compact Modular Architecture (CMA) and build a fully electric car for sale by 2019. Kia’s PHEV Optima is available in 2016, in addition to the all-new Kia Niro, and will build more Hybrid Electric vehicles. For PSA Group less CO2 means less consumption and lower TCO.

FLEET EUROPE #82

COP21 is a chance for OEMs to develop greener car fleets and will enlarge their EV, fuel-cell, hybrid or PHEV models by 2020.

ECONOMY IS GREEN The OEM’s desire to reduce CO2 is not only a matter of international climate deals, EU and national government regulations. It is also a matter of economy! First, if their products don’t respect the environmental regulations they will have to pay taxes. Not to mention that in a climate change conscious world, not respecting the 'green rules' can be harmful for the corporate image and by extension for business. Second, the more alternative powertrains become financially accessible for customers, the more their sales are going to rise and the OEMs are going to be able to produce them massively at lower cost. FCA is addressing CO2 emissions challenges on several fronts and one of them is affordability. Hyundai’s IONIQ model is also based on this idea of making sustainable mobility more accessible for everyone. EV-OLUTION! It’s undeniable that electric cars and other alternative powertrains will become mass market sooner than you think. By 2020, the vast majority of car brands will offer an EV, fuel-cell, hybrid or PHEV version of their most successful car fleet models. Daimler

FLEET EUROPE #82

focuses on the plug-in hybrid technology and will bring in ten models in 2017. At the same time it is working on a battery electric vehicle with a 400 – 500 km range. Ford’s 'power of choice' commitment is to offer high fuel efficiency and low emissions with new plug-in hybrid, hybrid-electric and full EVs in Europe by 2020. BMW continues to 'downsize' its engines to ensure its sustainability goals. It is offering the X5 PHEV, while the 3 Series and 2 Series Active Tourer PHEVs will be launched in March 2016. Maserati was working on a PHEV to be launched in 2018 before Paris. The Nissan Leaf 100% EV has expanded its range and Tesla will keep improving its 100% electric powertrain vehicles. 'Lighter is better' for PSA in terms of ecological footprint and by 2019 – 2020, it will develop new EV’s and petrol PHEV’s. For PSA, CO2 emissions of new cars will remain the main element fixing taxation policies. BMW estimates that in the future diesel and petrol engines will face increasingly demanding regulations and that’s when the electrification of cars will become a game changer. So the time to invest into a green and E-Mobile fleet is now!

2020

95% of OEMs new cars in EU must respect 95 CO2 g/km

4,1 l/100 km max petrol EU

3,6 l/100 km max diesel EU

consumption by 2021

40%

less CO2 fleet by 2020 in EU

DOSSIER

A True SUV Fleet by 2018 Michael Gergen, Account Manager International @GergenMichael

95g/km

The European car fleet market has had an excellent 2015, with strong growth in most European countries, especially in Southern Europe and the UK. Michael Gergen of market research specialist Dataforce highlights three main trends that are driving fleet business in Europe. Those three main trends will also influence your corporate fleet strategy.

EMISSION TARGET IN THE EU FOR 2021

SUV Market Share

3x 7years

in , from 7.7 per cent in 2008 to 21.5 per cent in 2015.

SUV will be the number 1 car segment in the European Fleet Market by

2018

True Fleet Market expectations 2016-2015 Italy The Netherlands 8

6,9% - 8,7%

1 - GREEN TAXATION AND LEGISLATION

2 - THE SUV SUCCESS

In recent years, there have been plenty of changes to car taxation and legislation. While some countries seemed to think of (company) cars only as cash cows for their austerity targets, others strove to set incentives for environment-friendly vehicles. As a consequence, players in the fleet business face constant changes to their TCO calculation.

At first glance, fleet customers seem to be very traditional with respect to their preferred brands and models. But in fact there has been a significant change over the last few years, and it is very likely that this trend will continue. Until 2011, two vehicle segments dominated the True Fleet Market in Europe: Compact Cars and Middle Class models, representing more than 40 per cent of all fleet registrations in Europe. The SUV segment was struggling to even reach a double-digit share. But since then, the market structure has clearly changed. Compact Cars are still in the lead, but the share of Middle Class vehicles dropped from 22.3 per cent (2008) to 15.5 per cent (2015). Over the same period, SUVs have become very popular, almost tripling their share, from 7.7 per cent to 21.5 per cent, virtually closing the gap with Compact Cars (23.4 per cent for the Top-seven European fleet markets).

Another big challenge for the next few years will be the 2021 EU fleet emission target of 95 grams. Starting from the Middle Class vehicles, most cars will need some electrification to achieve it. In order to get car buyers to opt for Hybrid, PHEV or BEV vehicles in an era of low oil prices, price premiums for electric vehicles will narrow the gap either through government or manufacturer subsidies. Still, diesel will remain the dominant fuel type for company cars in the near future as fuel savings over petrol come at smaller extra costs.

In all seven Top Fleet markets (Belgium, France, Germany, Italy, Netherlands, Spain FLEET EUROPE #82

DOSSIER

and UK), SUVs increased their sales volume in 2015 compared to the previous year. And their share rose as well, especially in Italy and the United Kingdom, where SUVs even became the number one segment in True Fleets! It stands to reason that the number of SUV models on offer has significantly increased over the last few years, but this isn’t the only reason for success. The segment’s impressive performance is based on several pillars. On the one hand, there were a lot of successful new entries in the SUV segment over the last three years, especially small crossovers like Fiat 500X, Jeep Renegade, Mercedes GLA, Opel Mokka, Peugeot 2008 and Renault Captur. On the other hand, there are a lot of established models with formidable growth rates, e.g. Audi Q3, Ford Kuga, Hyundai Tucson/IX35, Kia Sportage, Nissan Qashqai & Juke, Volkswagen Tiguan and Volvo XC60 & XC90.

1 - F UEL TYPE SHARES IN EUROPEAN* TRUE FLEET MARKET Diesel remains the preferred fuel type for car fleets, but its share is slightly decreasing and we can expect an even stronger decrease this year. DIESEL PETROL ALTERNATIVE

60 50

3 - TRUE FLEET MARKET ITSELF The True Fleet Market performed very well in 2015. Not only did it mark new all-time highs in several countries, the channel’s share in Total Market registrations hit new records as well. An increasing number of employees ask for company cars and opt for salary sacrifice models. Extremely low interest rates allow leasing companies to make attractive offers. This in turn enables firms to increase their fleet without significant changes to their balance sheets. And of course there is some catch-up demand in light of the economic rebound in Southern European economies. However, divergence is set to increase. The Netherlands experienced a strong pullforward effect due to significant taxation changes in 2015. As a consequence of this, registrations will decline in 2016. Germany and the UK have already reached levels beyond all expectations. Growth rates will soften, despite a solid economic underpinning. However, Fleet Markets in Southern Europe will continue to shine, with firm expansion rates on the back of pent-up demand and the economic rebound.

FLEET EUROPE #82

70 58

40 30

2009

2011

2014

2015

20 10 0

And there is even more to come. Our forecast predicts that SUVs will overtake the Compact Car segment to achieve number one status on the European Fleet Market by 2018.

1 2004

Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Italy, Latvia, the Netherlands, Norway, Slovakia, Spain, Sweden, United Kingdom.

2 - VEHICLE SEGMENTS' SHARE IN TRUE FLEET MARKET EU-7* 35 30 25 20 15 10 5 0

2008

2009

2010

COMPACT CAR SUV/OFF-ROAD

2011

2012

MIDDLE CLASS SMALL

2013

2014

2015

MINI HIGHER MIDDLE CLASS

Belgium, France, Germany, Italy, the Netherlands, Spain, United Kingdom

3 - T RUE FLEET MARKET GROWTH RATE

2016 VS 2015

+ 6.9% + 6.6% + 1.7% + 0.3%

ITALY SPAIN FRANCE UNITED KINGDOM

GERMANY 0% BELGIUM - 1.7% THE NETHERLANDS - 8.7%

+ 1.5% EU-7 9

E-fficiency Class. The new E-Class by Mercedes-Benz. Masterpiece of Intelligence. Equipped with new diesel and PLUG-IN HYBRID engines, as well as the most innovative technology in its class, to fulfil one aim: Making your fleet more efficient, more comfortable, more economical. mercedes-benz.com/fleet

DOSSIER

2016 Car Fleet Calendar The European car industry continuously looks for new, attractive models that suit your corporate fleet needs. Here’s an overview of the car models to be launched this year. SUV

GIULIA & GIULIETTA

ALFA ROMEO

Q1 & Q5 Q7 E-TRON

A4 ALLROAD

A5 SPORTBACK

AUDI BENTAYGA

MULSANNE

BENTLEY 740 E

3 GT

5 SERIES

BMW JUMPY

C4 PICASSO

CITROËN SUV

DS SCUDO

TIPO COMBI

TIPO

FIAT EDGE

KUGA

FORD HONDA

CLARITY

SANTA FE & I20 ACTIVE

CIVIC

GRAND SANTA FE

GENESIS

HYUNDAI QX30

Q30

Q60 COUPE

INFINITI F-PACE

JAGUAR JEEP

GRAND CHEROKEE

PATRIOT

OPTIMA & SPORTAGE

SOUL & CARENS NIRO

KIA

OPTIMA HYBRID

OPTIMA BREAK

RANGE ROVER EVOQUE CABRIO

LAND ROVER RX

GHIBLI & QUATTROPORTE

LEXUS LEVANTE

MASERATI CX-5

MAZDA MONTH

FLEET EUROPE #82

DOSSIER

ICONS NEW MODEL

COMPACT CAR

CABRIO

LEASURE ACTIVITY VEHICLE

GLS

E-CLASS

COUPE

MPV

S-CLASS CABRIO

ALL-ROAD

COMPACT SUV

C-CLASS CABRIO

SEDAN

SUV

GLC COUPÉ

ALTERNATIVE POWERTRAIN

FACE-LIFT

STATION WAGON

LIMOUSINE

E-CLASS BREAK

MERCEDES-BENZ CABRIO

MINI SPACE STAR

ASX

MITSUBISHI MICRA

JUKE

NISSAN

ASTRA SPORTSTOURER

MOKKA & AMPERA-E

ZAFIRA TOURER 2008

INSIGNIA

OPEL

3008

EXPERT

PEUGEOT PANAMERA MÉGANE & TALISMAN

PORSCHE

MÉGANE GRANDTOUR & SCÉNIC

TALISMAN GRANDTOUR

CLIO

GRAND SCÉNIC

RENAULT

ATECA

SEAT ROOMSTER

SUV

FORTWO ED & FORFOUR ED

ŠKODA

FORTWO CABRIO

SMART TIVOLI LONG

SSANGYONG XV

SUBARU BALENO

SUZUKI MODEL X

RAV4 & PRIUS

TESLA C-HR

TOYOTA TIGUAN

BEETLE TIGUAN LONG GOLF

VOLKSWAGEN S90

V90

V90 CROSS COUNTRY

V40

VOLVO

MONTH

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

FLEET EUROPE #82

DOSSIER

Geneva 2016: World premiere frenzy Dieter Quartier @DieterQuartier

The cradle of prestige watchmaking is also a place to which automotive professionals and aficionados alike make their yearly pilgrimage, in search of the latest in four-wheel technology and design. We selected 12 fleet highlights.

ALFA ROMEO GIULIA The Alfisti’s patience has been put to the test, but the BMW 3-Series/Audi A4/ Jaguar XE rival finally got the green light from Marchionne. Dieselists can choose between three power versions of the same 2.2 JTD, while the petrol range consists of a 2.0 four cylinder and a 2.9 V6, reserved for the range-topping QV.

AUDI Q2 The four-ringed brand’s crossover range gains a new model, called the Q2. It slots below the Q3 and takes up the glove against the Mini Countryman. The Q3’s baby brother rests on a new platform, called MQB 0, onto which an equally new 1.5 petrol or diesel engine is mounted.

MASERATI LEVANTE The premium high-performance Italian carmaker’s line-up gains an SUV model. This will allow the brand access to the flourishing crossover market and consequently to a wider audience. It will share its engines with the Ghibli, including a 3.0 V6 diesel mated to an 8-speed automatic gearbox.

HYUNDAI IONIQ Although it features similar contours, Hyundai’s answer to the Toyota Prius has a less provocative, yet far from bland styling. It is the first vehicle ever to over the choice between en EV, HEV or PHEV powertrain. First up is the HEV, featuring a 104 bhp 1.6 petrol plus a 43 bhp electric engine.

1 4

FLEET EUROPE #82

BMW Corporate Sales

www.bmwcorporate-sales.com

UPGRADE YOUR FLEET. DOWNGRADE YOUR CO2 EMISSIONS. BMW iPERFORMANCE. LEADING PLUG-IN HYBRID TECHNOLOGY.

Sheer Driving Pleasure

DOSSIER

OPEL MOKKA X The successful B-segment crossover from Opel gets a midlife nosejob to close the stylistic gap with the new Astra, from which it also inherits a new direct injection 1.4 Turbo petrol engine. Also new is its 7 or 8 inch capacitive touchscreen, which allows you to operate your smartphone via Apple CarPlay or Android Auto.

VOLKSWAGEN T-CROSS BREEZE This concept heralds a new Polosized crossover within the ranks of the German manufacturer, with which it wants to take on the likes of the Nissan Juke. When it reaches production phase in 2018, it will be about 4 meters long and cost around 23,000 EUR, according to various VW sources.

PEUGEOT TRAVELLER Le Lion again teams up with partners Citroën (SpaceTourer) and Toyota (ProAce) for its midsize-LCV/people carrier. The Traveller features hands-free access to the interior by foot-activated automatic sliding doors. It offers a choice of three bodylengths, features between 3 and 9 seats and is powered by either a 1.6 or a 2.0 HDi.

VOLVO V90 Two years after it was shown in Geneva as a shooting brake concept, the estate version of the S90 returns to Switzerland in its production livery. It can follow side markings up to a speed of 130 km/h without having to drive behind another vehicle and steer itself back to the centre of the lane if necessary.

RENAULT SCENIC Just like the Espace before it, the fourth generation of Renault’s popular C-segment MPV takes a sporty cross-over turn – without neglecting the practical aspects the model has always prided itself on. It shares its technology with the Megane 4 hatchback, including powertrains. These will consist of the 1.5 dCi, 1.6 dCi, 1.2 TCe and 1.6 TCe.

SEAT ATECA The first ever Spanish compact crossover rests on VW’s MQB platform, but is 13 cm shorter than the VW Tiguan. Its powertrains are well-known TSIs and TDIs with power outputs ranging from 115 to 190 PS. To the surprise of some, the entry level model has a 1.0 three cylinder turbocharged petrol underneath the bonnet.

ŠKODA VISION S The Vision S previews ŠKODA’s very first 7 seater SUV, which like its Spanish cousin is based on the VW Tiguan. However, it stands 1.68 meter tall, is 1.91 meter wide and measures 4.70 meter in length. By way of comparison: the VW Touareg’s dimensions are 1.73 meter, 1.94 meter and 4.80 meter, respectively.

TOYOTA C-HR The Turkish-built C-segment sporty crossover from Toyota, the concept of which could be seen in Frankfurt last year, is ready for production. It rests on a lightweight platform and offers customers the choice between petrol, diesel and a new-generation hybrid powertrain built in Wales.

FLEET EUROPE #82

DOSSIER

Fleets go SUV Jonathan Manning

Analysts forecast that by 2018, the SUV sector will be the largest segment of the company car market. They appeal to the heart and the mind, they come in different shapes and now they turn ‘green’. At first glance the growth of crossover and SUV fleet sales seems perplexing. With vehicle and company car taxes based on carbon dioxide emissions, ultra low emission zones planned for cities across Europe, and corporate bottom lines under pressure, the selection of heavier, higher emission vehicles with poorer fuel consumption appears to make little business sense.

HIGHLIGHTS • SUVs are the best-selling company cars in the UK and Italy. • Consumer demand for secondhand SUVs is protecting their residual values and lowering their wholelife costs. • Hybrid and electric drivetrains are giving SUVs a greener performance.

FLEET EUROPE #82

GOING GREEN But there are more factors at play. Firstly, this category of car is proving particularly competitive in its total cost of ownership. Secondly, the fuel efficiency of these vehicles has transformed in recent years from gas guzzler to green contender, with the advent of hybrid and even electric power trains, as well as two-wheel drive variants. And thirdly, employees are mirroring the private car market by showing a distinct preference for SUVs. Analysis by Dataforce reveals that the SUV segment has almost tripled its share of fleet sales across Europe since 2008, rising from 7.7% to 21.5% in 2015. If the trend continues, this segment of the market will overtake the compact car as the number one sector in true fleet sales by 2018 (it already has in Italy and the UK). SUVs satisfy both the emotional and rational demands of drivers, said Jürgen Stackmann, member of the board of

management, Volkswagen Passenger Cars – sales, marketing and after sales. The cars represent an ‘active lifestyle’, and their designs work successfully for both business and personal lives. The elevated seating positions and rugged appearance of SUVs appeal to safetyconscious drivers and families, while the easily accessed boot space makes them practical for work tools and samples, as well as sports equipment and shopping. Moreover, the days of 4x4s being unwieldy in urban traffic have gone, with many offering nimble, car-like handling. Mercedes-Benz introduced five new or updated SUV model series last year, and for the first time its SUV sales exceeded 500,000 units. Hans-Georg Lutz, Sr Manager International Corporate Sales Mercedes-Benz Cars, said, “We see trend towards SUVs emerging worldwide. This ever-increasing popularity of SUVs is emerging also in fleet business.” GOING FLEET Rising consumer demand for SUVs boosts their fleet attraction, with many models achieving significantly higher residual values than their compact sized equivalents, and thereby delivering competitive wholelife costs. Plus the development of hybrid drivetrains means SUVs no longer need to bear the gas-guzzler stigma.

www.kia.com

A lasting impression. That lasts impressively.

The all-new Kia Sportage. Made to Wow! The new Kia Sportage isn’t about meeting your expectations – it’s about exceeding them. More distinctive design, plus more state-of-the-art technologies such as the Wireless Charger and more progressive features like Autonomous Emergency Braking turn every ride into an unforgettable journey. Plus a 7-year warranty to make sure it stays that way. In a nutshell, it comes with more reasons to wow you!

The Kia 7-year/150,000 km new car warranty is valid in all EU member states (plus Norway, Switzerland, Iceland and Gibraltar), subject to local terms and conditions. Fuel consumption (l/100 km)/CO² (g/km): urban from 5.4/142 to 10.0/237, extra-urban from 4.2/110 to 6.5/152, combined from 4.6/119 to 7.6/177.

DOSSIER

The ‘greenest’ SUV? The Tesla Model X is an electric powered, all-wheel drive car with a range of 470km.

“As these vehicles become even more efficient, they become increasingly attractive to fleet customers,” said a spokesman for BMW, which is introducing PHEV (plug-in electric) variants to its X-series cars. Tesla will go further when it introduces its all electric Model X this year. The allwheel-drive SUV seats seven adults, accelerates from 0-100kph in 3.4 seconds, and boasts a range of 470km. Even in the fleet heartland, demand for SUV company cars is rising sharply, said Wolfgang Booms, Ford’s executive director, fleet sales and remarketing. Ford will launch five new SUV and crossover vehicles in the next three years to capitalise on this expansion. “Already more than 15% of our fleet sales are SUVs – we are expecting to see that share to increase further in 2016”, said Booms.

“We are seeing both – loyal customers migrating from other segments, but also successful conquest from other brands”, said Booms. Nissan’s crossover range, led by the Qashqai and backed up by the Juke and X-Trail, have proved to be ‘conquest weapons’, according to Olivier Marion, corporate sales director, Nissan Europe. Six in every 10 Nissan fleet sales in 2016 will be crossover models, with the new X-Trail targeting upper medium sector cars as well as seven-seater MPVs. “Crossover is going to grow again in 2016 thanks to the launch of numerous competitors and even better acceptance in companies’ cars policies”, said Marion. “With a very competitive TCO proposal, crossovers have surpassed traditional C and C-MPV demand. The same has started to happen in the B segment and is forecasted for the D [sector].”

So are these sales conquests from competitors or merely the conversion of customers who previously bought compact cars? FLEET EUROPE #82

DOSSIER

Connectivity and Autonomy above all Frank Jacobs & Jonathan Manning @FrankJacobs

Autonomous, climate-friendly and mostly connected! That is how your fleet cars will be by 2020. All fleet managers wanting to be forerunners will discover here the future developments of the car manufacturers for 2016 and beyond in Europe. managers to serve international fleets based at its headquarters in Munich, plus local corporate sales teams in each market.

BMW GROUP

INNOVATIONS FOR FLEET COSTUMERS

FLEET / RETAIL SALES BMW 66% retail

MINI 21% fleet

Best-selling model: BMW 3 Series Touring.

INTERNATIONAL FLEET CONTACT Dirk Eichstädt - Manager International Sales and Partner Management dirk.eichstaedt@bmwgroup.com

100% 100%

79% retail

34% fleet

INTERNATIONAL FLEET STRUCTURE BMW has a dedicated team of key account

MERCEDES-BENZ, SMART INTERNATIONAL FLEET CONTACT Volker Schneider - MercedesBenz International Corporate Sales Manager, Coordination International Key Account Management & International Leasing volker.schneider@daimler.com

INTERNATIONAL FLEET STRUCTURE An

international

key

account

Best-selling model: Mercedes C-Class.

manager is in direct contact with customers to plan, manage and monitor both the development and implementation of their framework agreement, in close collaboration with the respective national representative from Mercedes-Benz.

The BMW i Vision Future Interaction reveals the cockpit of the future, which will benefit corporate clients. The integration of the internet of things will allow for enhanced networking, facilitating new services for increased efficiency and comfort.

MAIN INFLUENCER IN FLEET MANAGEMENT The European CO2-emissions.

regulations

regarding

INNOVATIONS FOR FLEET COSTUMERS Mercedes-Benz Intelligent Drive paves the way for autonomous, accident-free driving, making motoring both safer and more comfortable by easing the strain. After a crash, the ‘Daimler Fleet App’ lets users record damages by camera and report them via e-mail.

MAIN INFLUENCER IN FLEET MANAGEMENT Autonomous driving will be a game changer. The car will be an office, so the driver can video conference or look at power point presentations while driving.

FLEET EUROPE #82

DOSSIER

INTERNATIONAL FLEET STRUCTURE

FIAT CHRYSLER AUTOMOBILES

At a European level there is international key account management (for long term rental and corporate customers), and at a local level every market has national key account management and a dedicated team for big and small companies, LTR and RAC. The teams work together to serve international customers.

FLEET / RETAIL SALES ACROSS THE GROUP 68% retail

JEEP 39% fleet

INNOVATIONS FOR FLEET COSTUMERS Best-selling model: Fiat 500.

100% 100%

INTERNATIONAL FLEET CONTACT 32% fleet

61% retail

Jose Carreira - Head of corporate & LTR manager, EMEA Region jose.carreira@fcagroup.com

its national sales companies. To support pan-european customers, the national fleet sales teams are supported by a team of key account managers at a European level.

FORD FLEET / RETAIL SALES

25% fleet

INNOVATIONS FOR FLEET COSTUMERS

INTERNATIONAL FLEET CONTACT

Ford Telematics delivers real-time fleet data to enable fleet managers to make informed decisions that impact the bottom line. FordPass members can talk to personal mobility assistants (FordGuides), night or day to solve mobility challenges.

Barrie Crawshaw - Fleet & Rental Sales Manager bcrawsha@ford.com

MAIN INFLUENCER IN FLEET MANAGEMENT

75% retail Best-selling model: Ford Focus.

INTERNATIONAL FLEET STRUCTURE Ford has dedicated fleet sales teams in all

The need to find the right products with best-in-class CO2 and TCO, as well as developing smart mobility solutions.

INNOVATIONS FOR FLEET COSTUMERS

HYUNDAI

Fleet services vary by market to meet local needs â&#x20AC;&#x201C; the international team ensures Hyundai offers the matching value added services to international clients. Hyundai also works with leasing/fleet management companies to maintain its competitive TCOs.

INTERNATIONAL FLEET CONTACT Patrick Reimers European Corporate Sales Manager preimers@hyundai-eurpoe.com

MAIN INFLUENCER IN FLEET MANAGEMENT

INTERNATIONAL FLEET STRUCTURE

Best-selling model: Hyundai Tucson.

Hyundai Motor Europe has a centralised approach to tender responses covering 31 European markets.

Liaising with global markets such as USA, Russia, UAE and Australia as needed.

FLEET EUROPE #82

The Group has just launched a dedicated network for fleet clients. With its partners Mopar (aftersales) and FCA Bank, it is constantly offering new products, solutions and services in order to satisfy the mobility needs of fleet customers.

Government pressure will force OEMs and large corporations to be greener, and personal taxation will be a main criterion for car selection by user-choosers.

DOSSIER INTERNATIONAL FLEET STRUCTURE

INFINITI

Infiniti Europe has an organisation made up of fleet experts across Europe, which allows the manufacturer to deal with requests from both international and local customers.

FLEET / RETAIL SALES 50% fleet

50% retail Best-selling fleet model: Infiniti Q50.

INTERNATIONAL FLEET CONTACT Stephane Chemama - EMEA corporate sales & used car director stephane.chemama@infiniti.eu

MAIN INFLUENCER IN FLEET MANAGEMENT Total cost of ownership (TCO) is a key driver of the fleet business in Western Europe.

INNOVATIONS FOR FLEET COSTUMERS

JAGUAR LAND ROVER

Jaguar Land Rover has unveiled new low and zero emission powertrain technologies, which include a high performance, modular electric drive module (eDM) capable of producing twice the power and torque of any electric motorgenerator in production today.

INTERNATIONAL FLEET CONTACT Emil Gaynor - Global Sales Manager egaynor@jaguarlandrover.com

INTERNATIONAL FLEET STRUCTURE

Best-selling fleet model: Range Rover Evoque.

MAIN INFLUENCER IN FLEET MANAGEMENT

Fleet is a core element of Jaguar Land Rover’s global growth plan. Outside of Europe, JLR’s Global Fleet and Business team is focusing on new and emerging

markets, and JLR now has Fleet & Business senior management representation in five key regions; UK, Europe, North America, China and Rest of World.

Telematics and Driver Assistance Systems will increase in importance and sophistication, with fleets using the data to run safe and effective policies.

tionships and enquiries of international scope.

KIA

INNOVATIONS FOR FLEET COSTUMERS

FLEET / RETAIL SALES 41% fleet

59% retail Best-selling fleet model: Kia Sportage.

INTERNATIONAL FLEET STRUCTURE INTERNATIONAL FLEET CONTACT Mark Howlett - Fleet sales manager mhowlett@kia-europe.com

All main Kia subsidiaries are resourced to manage direct customer relationships at the national sales company level. Kia Motors Europe also has a centralised team at European level, responsible for tenders, direct sales rela-

MAIN INFLUENCER IN FLEET MANAGEMENT New powertrain technologies and the relationship with CO2-based tax policies, plus the introduction of new CO2 emissions testing procedures / regulations.

INTERNATIONAL FLEET STRUCTURE

MASERATI

Maserati has a fleet structure in its headquarters as well as in the top European markets to satisfy customer needs.

FLEET / RETAIL SALES 25% fleet

First, semi-autonomous driving technologies, e.g. emergency braking system, lane-keep assistance, blind spot detection, and speed limit information. Second, Kia connected services, e.g. TomTom live, plus bringing social media and connected services to drivers.

INNOVATIONS FOR FLEET COSTUMERS Maserati says it is, “always working on innovations and communicate these as soon as they are ready to market and not before.”

75% retail

Best-selling fleet model: Maserati Ghibli.

INTERNATIONAL FLEET CONTACT Franco Marianeschi - European corporate sales manager franco.marianeschi@maserati.com

MAIN INFLUENCER IN FLEET MANAGEMENT The luxury SUV segment accounts for 50% of the luxury car market and continues to grow. Maserati will join this growing sector with its all-new Levante. FLEET EUROPE #82

DOSSIER INTERNATIONAL FLEET STRUCTURE

NISSAN EUROPE

A central team (5 International Key Account Managers) interfaces with major worldwide companies, while regional teams are able to answer market-specific needs. The four leading regions are Japan/ASEAN, the Americas, China and Europe. This approach marries single point of contact for global customers with extensive market coverage.

FLEET / RETAIL SALES 41% fleet

59% retail

INNOVATIONS FOR FLEET COSTUMERS Best-selling fleet model: Nissan Qashqai.

INTERNATIONAL FLEET CONTACT (215,000 True Fleet Sales in Europe, 41% of total volume in Fleet)

Nicolas Pelpel - Head of International Fleet Sales npelpelpel@nissan-europe.com

INNOVATIONS FOR FLEET COSTUMERS

OPEL / VAUXHALL

Fleet management is becoming dependent on connected services, which will bring a wealth of information and insights. Opel/ Vauxhall’s OnStar can summon rescue and emergency services; locate a stolen vehicle; and supply a diagnostic check at any time.

INTERNATIONAL FLEET CONTACT Marc Schomburg - Manager, European fleet operations marc.schomburg@opel.com

INTERNATIONAL FLEET STRUCTURE

Best-selling fleet model: Opel Astra.

Opel/Vauxhall has a pan-European corporate account team. Whenever a new prospect is interested in a pan-European or global agreement,

its international team will support the customer and provide detailed consultation on how the agreement can be implemented so the fleet can derive the maximum benefit.

The connected car will play a major role in international fleet business as the base for multiple fleet management tools, plus driver oriented services.

INNOVATIONS FOR FLEET COSTUMERS

FLEET / RETAIL SALES 70% retail Best-selling fleet model: Peugeot 308.

INTERNATIONAL FLEET CONTACT Cédric Douls - Head of International Key Accounts cedric.douls@mpsa.com

INTERNATIONAL FLEET STRUCTURE (International Total Sales 2015: 2,973,000, of which Fleet: 849,000) FLEET EUROPE #82

WHICH SINGLE ELEMENT WILL IMPACT THE MOST THE FUTURE OF INTERNATIONAL FLEET BUSINESS IN EUROPE AND WHY?

From 2015, the same approach is used in the subsidiary markets, for the benefit of international and national customers and leasing companies. The single point of contact saves time and increases efficiency.

PSA GROUP

30% fleet

Both launched in the past three years: a 100% electric range, with a C segment car (Nissan LEAF) and a small van (Nissan E-NV200); and Nissan Safety, an advanced safety package accessible from B to D segment, including forward emergency braking, blind spot warning, etc.

Since 2012, PSA has had a B2B International Department, representing the Group's three brands (Peugeot, Citroën and DS).

Connect Fleet Management is a telematics platform that optimises driver behaviour, fuel consumption and other factors that help cut TCO. And with SOS & Assistance, PSA is one of the few manufacturers to offer automatic emergency and breakdown calls.

MAIN INFLUENCER IN FLEET MANAGEMENT The development of fleet management services using Autonomous Telematic Box devices, sending car info directly to the Fleet Manager.

DOSSIER

Customers, in coordination with Renault's national Fleet divisions. This setup aims to provide flexibility, wide product and services coverage (for both cars and LCVs) and a wide geographic coverage.

RENAULT

FLEET / RETAIL SALES 33% fleet

INNOVATIONS FOR FLEET COSTUMERS 66% retail

Best-selling fleet model: Clio IV.

INTERNATIONAL FLEET CONTACT Emmanuel Longeard - International Key Accounts Sales Director emmanuel.longeard@renault.com

INTERNATIONAL FLEET STRUCTURE (International Total Sales 2015: 2,973,000, of which Fleet: 849,000)

Renault has 8 International Key Account Managers. They respond to tenders and maintain the relationship with the Fleet

FLEET / RETAIL SALES

Connected car and connected services technology.

INNOVATIONS FOR FLEET COSTUMERS 80% retail

Best-selling fleet model: SEAT Leon.

INTERNATIONAL FLEET CONTACT Iulia Sterpu - SEAT International Key Account Manager for Fleet iulia-simina.sterpu@seat.es

INTERNATIONAL FLEET STRUCTURE (based on True Fleet sales in main European markets)

SEAT's international team coordinates and directs its local markets, and has recently added an International Key Account

MAIN INFLUENCER IN FLEET MANAGEMENT A more centralised steering, and car policy focus on TCO management.

As part of the Volkswagen Group, Skoda operates in synergy with the Group's other brands at an international level. On brand level, Skoda is strengthening key account management to support fleet in local markets, as well as actively seeking out fleet customers.

INTERNATIONAL FLEET CONTACT Lenka Petrboková - Responsible for SKODA Key Account Management lenka.petrbokova@skoda-auto.cz

SEAT offers innovative safety systems such as Lane Assist and the Tiredness Recognition System, but also innovative connectivity such as SEAT Full Link (smartphone connectivity) and SEAT Drive App (personalising the car's 'desktop').

INTERNATIONAL FLEET STRUCTURE

ŠKODA

MAIN INFLUENCER IN FLEET MANAGEMENT

Manager for large international fleet customers and leasing companies. Additionally, SEAT manages International Agreements with big clients via VW Group and is able to offer products via VW Financial Services.

SEAT

20% fleet

One innovation is Fleet Asset Management. Based on an on-board Telematic Unit, it allows Leasing Companies and Fleet Managers to get daily, automated data from the car. Another is R-ACCESS, key-free door opening via smartphone, suited for car-sharing.

MAIN INFLUENCER IN FLEET MANAGEMENT Best-selling fleet model: ŠKODA Octavia Combi.

Definitely electric mobility, as it relates to the trend of decreasing emissions.

FLEET EUROPE #82

DOSSIER

INNOVATIONS FOR FLEET COSTUMERS

TESLA

Hardware-wise, every Model S now includes forward radar and digitally controlled electric assist braking system. The latest software update includes Summon, a feature that allows drivers to have their Tesla park itself in and out of the garage.

INTERNATIONAL FLEET CONTACT Davide Ghione - EU Fleet Sales Manager dghione@teslamotors.com

INTERNATIONAL FLEET STRUCTURE Tesla works via a direct distribution

Best-selling fleet model: Tesla Model S.

MAIN INFLUENCER IN FLEET MANAGEMENT

model, offering all Teslas through its own sales network. Global requests are handled simply through internal communication.

The growth of Tesla's Supercharger network supports a rise in Fleet sales.

INTERNATIONAL FLEET STRUCTURE

TOYOTA

Toyota's Fleet organisation is divided into management at HQ and operations, implemented by country managers. This twotier system is aimed at providing a high degree of professionalism, whatever the size or needs of the customers.

FLEET / RETAIL SALES 30% fleet

70% retail

Best-selling fleet model: Toyota Auris Touring Sport.

INTERNATIONAL FLEET CONTACT

(2015 pan-European figures)

Stephane Denis - Fleet & International Key Account senior Manager stephane.denis@toyota-europe.com

Diesel price and 'Dieselgate' will increase the necessity to rebalance fleet portfolios. Hence the importance of a large offer in terms of models and power trains.

Business Centre in Gothenburg, and by local Key Account Managers and Fleet Sales Managers. That setup aims to provide high levels of customer service.

VOLVO

INNOVATIONS FOR FLEET COSTUMERS

FLEET / RETAIL SALES 41% fleet

MAIN INFLUENCER IN FLEET MANAGEMENT

59% retail Best-selling fleet model: Volvo XC60.

INTERNATIONAL FLEET CONTACT The Global Fleet Business Centre in Gothenburg globalfleet@volvocars.com

INTERNATIONAL FLEET STRUCTURE (global sales 2015 at 503,127, of which Fleet 206,282 units)

Volvo has a Global Fleet Team with 4 Account Managers based in key markets, providing global coverage. They are supported by a

There's Semi-autonomous Pilot Assist, available on the S90, is an advanced version of Pilot Assist, allowing its functions to work at highway speed (130 km/h, before 50 km/h). And then there's Volvo On Call, an easier way to monitor mileage, fuel consumption and service requirements.

MAIN INFLUENCER IN FLEET MANAGEMENT The conflict and contradiction between reducing CO2 and NOx emissions.

This overview is based on the answers from the car manufacturers on the 2016 Fleet Europe Car Manufacturers’ Fleet Strategy Questionnaire. FLEET EUROPE #82

ADVERTORIAL

CONCEDED EDITORIAL SPACE

Apogee of sophistication Every Alfa Romeo represents a perfect balance of heritage, speed and beauty making it the highest expression of Italian style in the automotive world. The new Giulia is no exception. Every Alfa Romeo is also a delight to drive, placing the driver at the centre of everything. The new Alfa Romeo Giulia is, quite simply, the latest and most modern interpretation of one of the world’s great sporting histories.

DISTINCTIVE ITALIAN DESIGN In keeping with the sports car heritage of Alfa Romeo, the proportions of the new Giulia are built around the technical architecture of the entire car: the key elements are weight balance and, of course, rear wheel drive. In order to achieve an optimal weight distribution, the engine and the mechanical components are located between the two axles. This is why the Giulia has very short overhangs and a long bonnet. It also boasts muscular rear wings which visually mark the point where power is unleashed onto the road. All this translates into a very generous wheelbase – the longest in its category – contained in one of the most compact bodies. And you will not fail to notice the rounded angles and the enveloping pillars, giving momentum to the car, totally reminiscent of the Giulietta Sprint, one of the most beautiful cars ever made. IDEAL WEIGHT DISTRIBUTION AND THE BEST POWER-TO-WEIGHT RATIO Driving pleasure in the new Giulia also comes from the new sophisticated Alfa Romeo patented scheme, AlfaLink™, along with the most direct steering in the segment. Thanks to the widespread use of ultralight materials like carbon fiber for the driveshaft and aluminum for doors, fenders, brakes and engine, new Alfa Romeo Giulia guarantees an optimal powerto-weight ratio, providing outstanding performance and efficiency.

The sport and tech-minded drivers are far from being forgotten by the Alfa Romeo designers.

DRIVER ASSISTANCE SYSTEMS ENHANCING SAFETY Next to driving pleasure, the Alfa Romeo Giulia also excels in safety comfort. In fact, new Alfa Romeo Giulia is equipped with outstanding safety and driver assistance features, standard or optional depending on trim level: • Integrated Brake System (IBS) to considerably reduce braking distance and ABS vibration • Alfa™ Active Suspension for exceptional comfort • Forward Collision Warning (FCW) • Autonomous Emergency Brake (AEB) with pedestrian detection function • Blind Spot Monitoring (BSM) with rear cross path BUSINESS OFFER To suit today’s needs of car fleet drivers, Alfa Romeo offers dedicated business versions and business oriented optional packages including technological safety and comfort features like: • Connect Nav 6.5" • Front & Rear parking sensors • Blind Spot Detection with Rear Cross Path FLEET EUROPE #82

Sport-oriented drivers remain connected through the high-tech systems integrated in the dashboard.

• Electrochromic inside & outside rearview mirrors • Auto high beam system • Rear view camera with dynamic grid lines Depending on local market preferences, these business offers can be further personalized with functional fleet features. STATE-OF-THE-ART, INNOVATIVE ENGINES Alfa Romeo’s engineers have designed a range of engines to suit every taste which rank at the top of their category for performance and efficiency. • 2.0-litre petrol, 4-cylinder in-line, aluminium, 8-speed auto 200hp • 2.2 litre Diesel, 150 or 180 hp, aluminium, 8-speed auto or 6-speed manual • 2.9-litre V6 BiTurbo, 510 hp, 307 kmh, 0-100 kmh in 3.9 seconds. FULLY CONNECTED The designers of the new Alfa Romeo Giulia have not forgotten that the most sportsminded of drivers still lives in our high-tech, high-speed digital world. FLEET EUROPE #82

Business offers will include Connect Nav 6.5" and parking sensors.

The new generation Connect 3D Nav 8.8" infotainment system – developed in collaboration with Magneti Marelli – offers a sophisticated series of features and functions, including a next-generation HMI human-machine interface. The system is controlled by the Rotary Pad and the 8.8” high-resolution display integrated in the dashboard. Thanks to ‘optical bonding’ technology, the user benefits from an excellent level of visualisation and readability on the display. Connect 3D Nav 8.8" is equipped with an advanced voice recognition system for complete connectivity with all mobile devices (mobile phones, smartphones, tablets with Apple iOS and Android operating systems). In addition thanks to the Bluetooth technology, the infotainment system plays audio contents from smarthphone and permits hands-free phone calls.

SMART MOBILITY

Shared + Connected E-Mobility Antigoni Vokou @Antivokou

Future mobility will be based on three main pillars: Connectivity, Electrification and Less-ownership. OEM product innovations keep on impressing.

The OEMs’ role in improving city mobility remains crucial. Providing users with personally-oriented predictive information is today possible with BMW’s Open Mobility Cloud which allows complex processes to be started automatically without the help of an app. For instance, the new BMW 7 Series includes Gesture Control, Laser Lights, Rear-seat Touch Command, Remote Control Parking, Display Key, Wireless mobile phone charging. Mercedes Remote Online Services gives you controlof your Mercedes via a smartphone app. With your mobile phone you can control the auxiliary heater, open and lock the doors remotely. While the Parked Vehicle Locator, Vehicle Tracker and Geofencing services tell you where you’ve parked or if your vehicle leaves a defined area. SEAT Full link allows access to smartphones apps through the car’s infotainment system. It also includes MirrorLink + Car Play + Android Auto. SEAT DriveApp enables the vehicle to read the new phone messages out loud by converting text into speech. Its drivers can personalize the desktop with feeds to speech function, possibility to configure e-mails, twitter, Facebook or RSS-feeds. The Tesla Model S app allows the user to monitor the state of charge, manage the temperature, control the charging of the

car remotely and also follow its location in Google Maps. FCA Enjoy car sharing service registration and use can also be managed with a smartphone app. MOBIL(E)ITY The Mercedes-Benz app Moovel finds connections and tickets within a regional circle of different transportation systems, merging public transportation, carpooling, car and bike sharing. At the same time its Park2gether app locates parking spots in urban centers. BMW ParkNow also finds parking spots, while through its website you can reserve and pay. On-street and off-street parking garages belonging to the BMW network can be filtered with the app according to price and distance. For all the climate conscious drivers in the UK, BMW ChargeNow app offers easy access to public charging points, like Chargemaster, through its vehicle’s integrated ConnectedDrive navigation system, via smartphone or website. With ChargeNow card can you can unlock a BMWi partner charging point and initiate the charging process, while receiving a single monthly bill for all charging transactions. FCA’s Eco:drive is another mobile app giving personalized tips to drivers based on driving style to help them reduce their fuel consumption by up to 16% and their CO2 emissions by up to 6,200 tons/ year. It exists in Europe for almost all Fiat

FLEET EUROPE #82

and Fiat Professional models and has been extended to the 2016 version of the 500L. SHARE WITHOUT BORDERS GM’s acquisition of Sidecar technologies and its 470 million investment in Lyft, the second largest ridesharing company worldwide after Uber, proves that nowadays OEMs are targeting car sharing and not only car sales. Ford Carsharing exists in 70 German cities at around 140 locations in collaboration with Flinkster, a large car-sharing company. Ford Carsharing customers can use any of Flinkster’s 270,000 vehicles. Car2go from Daimler is available now in 16 European cities and has more than one million customers globally. DriveNow, from BMWi, MINI and SIXT, numbers almost 600,000 members and over 4,000 vehicles in London, Copenhagen, Stockholm, Vienna, Berlin, Cologne, Dusseldorf, Hamburg and Munich. With its subsidiary Alphabet, BMW proposes another corporate car sharing too: Alphacity. PEUGEOTRENT has a fleet of 5,600 vehicles in Europe and already 20,000 clients in France. PSA covers B2C car sharing with Citroën Multiplicity and corporate car sharing with Share your Fleet with nearly 100 vehicles. Also, with VULOG, it proposes Round Trip, One Way and Free Floating Car Sharing solutions. SHARE WITHOUT CO2 The words used have taken on great importance for OEMs when promoting their green car sharing products. The word ‘mobility’ serves Nissan’s B2B car sharing ‘NissanMobility’, which was absorbed in July 2015 by RCI corporate ‘Mobility’ offer Glide. Centered on ecology with 100% EV and technology, Glide is an all-inclusive car-sharing solution providing, along with the vehicle fleet, the infrastructure, the online platform, the car maintenance and the hotline to optimize fleet management and everyday employees’ use. The word ‘enjoy’ is used by FCA to encourage its car sharing service with ENI ‘Enjoy’. It offers a fleet of 18,000, less than 120 g CO2/km, Fiat 500 vehicles to urban drivers in Milan,

FLEET EUROPE #82

Rome, Florence and Turin in Italy. Users don’t have to return the vehicle to a fixed point, but can leave it anywhere within the area covered by the service. In addition, the Fiat Likes U project promoting the use of eco-friendly cars in collaboration with universities, also underlines the importance of the word ‘mobility’ with a free car-sharing service for more than 4,000 students in 7 European countries called Mobility. In the UK, Ford Go drive is a pay-by-the minute car-sharing with guaranteed parking in London and half of its fleet is ecological with the Focus Electric. In an effort to pursue the electrification of mobility in cities in 2015, 50 BMW i3 were added to the London DriveNow fleet, 150 to the German one and 400 to the biggest fleet of electric vehicles in Copenhagen. PSA also targets green car sharing in the main Europe cities. Citroën Multiplicity Berlin is composed of 250 C-ZERO cars and in collaboration with Bolloré Car-sharing Services, PSA has been offering Citroën EVs since the end of 2015. LOCALLY TAILORED Volvo has developed car sharing following local market demand. In Sweden Volvo has one of the largest car sharing offerings, Sunfleet with over 1,000 cars available throughout the country including Plug-In Hybrids and parking spots. The Volvo Schwedenflotte in Germany covers more than 100 dealers. With business specialists CCUniRent, Volvoalso offers short and long-term rental and car sharing for private and commercial customers. Manufacturers which haven’t yet developed an offer, are nevertheless showing more interest. Kia is looking carefully for further car sharing B2B, B2C or peerto-peer networks in European markets like Germany. It has a partnership with CiteeCar in Frankfurt, Germany and is keen to establish a bigger presence in the car-sharing marketplace.

SMART MOBILITY

Telematics are Mobility’s Guides Antigoni Vokou @Antivokou

The role of tools is becoming crucial in simplifying the work of fleet managers and solving the many challenges of mobility, especially those experienceddaily by companies and their employees: these tools are Telematics.

The sophistication of vehicles due to technological advances by OEMs shows the car industry has changed! Car makers invest increasingly into new technologies to make their products safer, more connected and easier to adapt to urban mobility challenges. Telematics are developed incredibly fast and car manufacturers also want to use them as mobility assistants to solve everyday traffic problems, finding a space easily in cities and make sure employees get to their next appointment on time by the shortest route.

Information, wireless charging or integrated hotspot functionality providing internet access in all seats. DS Connect Nav in the DS 5 brings real-time traffic information to drivers in order to avoid wasting time in traffic jams. Nissan has a 3-level Telematics service composed of data for companies which have already developed an analysis model, a Fleet Monitoring tool to get a health-check status of the cars, and a Fleet Management tool with real time geo-localization and optional features for specific business needs.

Just like you follow guides in a museum or during a city visit, because they explain to you what art pieces, architecture and monuments are worth seeing and get you there rapidly, drivers and fleet managers now follow OEMs apps and telematics as mobility guides.

SMARTPHONE CARS Get the car ready by smartphone before the driver gets in, this is possible! Mercedes Remote Online Services allow the driver to control the vehicle via an app. Programming the auxiliary heater, opening and locking the doors remotely, tracking where you’ve parked your car is possible with your smartphone. Tesla Summon allows drivers to remotely park their Model S or Model X (in or out of their garage) with a simple tap on their key fob or Tesla app on their smartphone. Volvo On Call helps company drivers localize their car, check its status, lock or unlock the doors via their smartphones. Jaguar’s InControl Apps system also connects the driver with the car, to view information and give the car instructions from their smartphone such as remote locking, checking fuel levels, heating or cooling the car before getting in.

FordGuides are 24 h personal mobility assistants for FordPass members which help them to resolve their mobility challenges, like finding a faster route and booking a parking spot in advance. Ford Pass is based on the idea of a platform that re-imagines the relationship between automaker and consumer. EDGY ENGINES ON WHEELS With Mercedes’ Telematics service COMAND Online you can have fast 3D hard-disc navigation, Live Traffic

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More than comfort, car smartphone apps increase the driver’s safety and give easy access to emergency assistance. Mercedes me connect allows fleet customers to use their smartphone, tablet or personal computer, to access their car data. It includes maintenance management, telediagnostics, breakdown management, accident recovery and the Mercedes-Benz emergency call system. This way, in the case of a breakdown or accident it collects all relevant vehicle data and sends it to your service partner to book the next service appointment or summon rapid help from emergency services. Supported Jaguar apps propose parking space finders or infotainment tools, and each of them has been optimised to make them controllable via the car's touchscreen and voice to reduce driver distraction. TELEMATICS REDUCE TCO Smartphone dashboards don’t just make an instant connection of the car with the driver and with the fleet manager, they help the company fleet managers reduce their TCO. Renault Fleet Asset Management is an on-board Telematic Unit giving Leasing Companies and Fleet Managers daily and automated data from the car to reduce the fuel cost, manage and anticipate the car maintenance, manage the car fleet or help company drivers deploy an ecoresponsible driving style. PSA’s Connect Fleet Management, based on an on-board telematics box and a fleet management platform, allows for maintenance optimization, reduction of fuel consumption and of CO2 emissions, better driver behavior. Technical car data such as mileage, upcoming maintenance operations, technical alerts and geolocation are transmitted in real time to fleet managers for all PSA group’s brands – Peugeot Connect Fleet Management, Citroën Connect Fleet Management and DS Connect Fleet Management. DRIVING JOURNALS OEMs nowadays provide complete driving journals with all the data company fleet

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managers need regarding car mileage, fuel reporting and much more. Volvo On Call is such a driving monitor aimed at simplifying the work of fleet managers and company drivers. Volvo On Call app for smartphone, smart watch and iPad can be downloaded as an Excel file and includes roadside assistance, emergency support and if the airbags are deployed reaches the emergency services via a trained operator. Ford Telematics, powered by Telogis, is a suite of cloud-based applications delivering real-time fleet data helping fleet managers to make informed decisions since it’s designed to provide exclusive metrics and insights for any size of fleet. It includes Mobile connectivity, Ford-exclusive data and services for more vehicle intelligence, such as diesel emissions and customizable driver behavior scorecards. Jaguar’s InControl gives fleet managers information on vehicle condition, business journeys or fuel consumption. SEAT is developing a connectivity solution, expected from the 3rd quarter of 2016, where the car dealer will know if there are specific issues with the vehicle based on a variety of signals and pro-actively manage the process with the customer. FUTURE EXPECTATIONS The constant improvements of autonomous driving will further change E-Mobility in urban areas and the smartphone carcontrol tailored to each company car and driver will flourish. We are years away from seeing constantly connected mobile offices on wheels around us on the roads. The inter-changeability between cars and other modes of transport is growing steadily and a new generation of employees considering cars as a tool and not as property any more will arrive by 2020. Exactly on time to benefit, from car manufacturers and also from their companies, from low CO2, fully connected, safer and telematics-clever mobile car fleets.

BUSINESS

Creativity, not complacency Steven Schoefs @StevenSchoefs

In 2015, LeasePlan's profits rose by 19% to €442 million, with vehicles under management increasing by 9% to 1.55 million. Impressive, especially as LeasePlan already is the world's biggest lessor. Nick Salkeld, LeasePlan's CCO and member of the Managing Board, explains the company's success – and how it intends to keep it up. “We're seeing strong growth, across a wide range of segments, and also in terms of our total assets. We've also been supported by stronger than expected used car termination results, a lot of that driven by the remarketing channels that we've developed”, Nick Salkeld explains. Add to that the continuing improvement of LeasePlan's insurance business, up over 10% in 2015, and you get a rosy picture. GLOBAL GROWTH Growth has been truly global, “from mature markets in Europe to developing

markets like Mexico and Turkey to markets in Eastern Europe”, says Salkeld. “The big declines post-2008 are now mirrored by big improvements in the operating lease market.” Geographic diversification has been a clever strategy in more ways than one. “We have great opportunities to grow the market as a whole by showing companies and individuals the benefits of our services. Even in mature markets like Italy and France, operating lease penetration is relatively low – 10% and 15% respectively.” SMEs were the fastest-growing market segment, increasing by 12% in 2015, but other segments have also proved bountiful. “Our corporate segment grew by 7.5%, double our achievement in 2014. Our international segment increased by 8% - important, as it represents over 30% of our portfolio.” SWOPCAR AND FLEXIPLAN With SWOPCar last year and FlexiPlan this year, LeasePlan has introduced two flexible, innovative products – both responses to changes in the mobility landscape. The SWOPCar corporate car sharing solution gives clients a way to better share their vehicles among their employees. FlexiPlan focuses on the 1 to 24-month market. “We aim to offer solutions that allow car usage from hours to years, for small and large companies. Solutions which acknowledges the increased demand for smart mobility and multi-transport use”, Salkeld points out. “It's in our DNA to innovate.”

Nick Salkeld, CCO and member of the Managing Board of LeasePlan Corporation, expects a 6% growth in 2016, focusing on geographic expansion and the roll-out of new mobility related services.

Private lease is another innovation. “It's an important shift, and LeasePlan wants to lead the industry. Our private lease FLEET EUROPE #82

programmes are increasingly successful. They will be an important part of our growth”, Salkeld predicts. LeasePlan sees a big role for telematics in reducing CO2 emissions and insurance cost, “taking into account all relevant privacy requirements, which vary according to country – and customer.” With 50 fully trained fleet consultants around the globe, LeasePlan is the only lease company with a dedicated mobility consultancy anywhere on the planet. “They will help our customers figure out their total mobility, help them identify the combination of products and services that best suits their needs, and give advice on cost savings opportunities. Those skills will be in increasing demand”, Nick Salkeld observes. 2016 AND BEYOND And LeasePlan has strong growth ambitions for this year too. “The prospects are good. But we don't just want to grow. We want to keep leading the market in delivering

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high-quality, innovative services to our clients. Creativity, not complacency!” Some emerging economies are struggling. For example Brazil and Russia – two countries with a LeasePlan presence. “But we're doing well in both”, says Salkeld. “A lot of our international customers were very keen for us to open up in Russia. We're happy with the progress we've made there.” Same story in Brazil: “Growth is a challenge, but we’re growing well, our local management is excellent, and we're positive about the future.”

FULL STORY You can read the full interview with Nick Salkeld on www.fleeteurope.com, Interview section.

LeasePlan is not yet present in China, but that's only a matter of time. The company is exploring opportunities there, through a greenfield or a partnership approach. “We are opening up in Malaysia this July, though. We'll use it as a base for other South East Asia. We have high hopes of strong growth in the region.” Expansion into Latin America is also on the cards “given the right partner – but we're not saying no to a greenfield site there.”

With The Miles Consultancy, you get data on business and private distances driven for individual journeys, real-world consumption and costs-per-kilometre. In short, completely transparent fuel and trip data that will enable fleets to maximise control over costs and to create practical strategies that raise efficiency and productivity. THE FULL PICTURE TMC targets each stage of the fuel cycle with a wealth of opportunities to reduce costs and overheads. For example, you need to be able to see how, when and where your drivers buy fuel. While TMC’s cost management solutions of course work with customers' existing fuel procurement tools, TMC also goes one step further. It offers its own fully-integrated, multi-territory fuel card. As well as offering state-of-the-art protection against fraud and misuse at point of sale (Chip & PIN authorisation), the card records the time, date, location, price and VAT data of each transaction and links it accurately to the individual vehicle and driver. Then there is use, the most critical phase of the fuel cycle. Company funds are wasted if drivers make unnecessary trips or they put in exaggerated expenses claims.

The only way to eliminate this is by capturing comprehensive and accurate distance data. TMC provides trip data from every driver in every locality. This includes fully expensed cars and fuel, to cents-per-km rates paid to employees who drive their own cars. And finally, when you look at fuel reports, you want to be able to see comprehensive, accurate and up-todate fuel distance data, consolidated into useful management information.

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 35

BUSINESS

Citroën needs to be different Steven Schoefs @StevenSchoefs

Now that DS is a standalone brand, Citroën is able to concentrate fully on itself. In June 2014, Linda Jackson took over as CEO at Citroën's Paris headquarters. She reveals how she is rebuilding Citroën into an outstanding brand – and above all a profitable one.

Carlos Tavares, head of PSA Group, launched 'Back in the Race'. How is Citroën contributing to that plan? We’re on track. We will contribute in sales and profitability. To increase profitability, we will reduce our car model platforms from 14 to 7 and offer global models in the A to D segments over the upcoming 5 years. Citroën is developing a coherent, efficient product line, thus improving the value of the brand, including residual values. This means having the right products, communicating about them in the right way, setting the right price while minimising discounts, all in order to achieve the best TCO possible.

How are you going to communicate the Citroën brand to fleet managers? We need to be different – that's when Citroën is at its best. Looking back at our 96 years of history, we've always stood out with inspirational and audacious model designs, combined with a unique feel-good factor. We have to capture that essence again – but without becoming a niche manufacturer. I prefer when people either positively love or actively dislike a new product. That's better than a non-descript feeling somewhere in between. Over the next two years, we have three new vehicles coming out, two of which we'll be premiering this year already. One will be the new Space Tourer, which we revealed in Geneva.

How important is 'fleet' to Citroën?

"We will no longer be like everybody else. That hasn't worked”, says Linda Jackson, CEO of Citroën.

B2B sales represent a third of our business, in both cars and LCVs. So fleet is very important, and increasingly so, as the quality of our new models and services increases as well. We know dedicated services are crucial to fleet customers, whether in after-sales or

as driver contact via connected technology. That's why we need to provide fleet customers with a seamless experience in both fields, while focusing on useful services. We have 900 business centres around the world with dedicated fleet services. All of our cars can be fitted with Citroën Connect Fleet Management to assist driver behaviour and vehicle fleet management. So our fleet package is complete, and up and running. Now it’s high time we deliver results.

What is Citroën's outlook for 2016, in Europe and across the globe? Our aim is to achieve 5% market share in Europe by 2018-'19, and surpass the 1.5-million global sales cap. Since 2008, our sales outside Europe have doubled from 20% to 40%, and we're heading towards 50%. So the world's other regions are important too. China is now more important to us than France itself, and there's more growth to come. Especially in the Middle East and Africa, and of course in Turkey.

How is Citroën doing in the smart mobility department? We're witnessing a new generation that wants access to cars without owning them. So we are intent on providing carbased mobility, focusing on electrified powertrains and connectivity. On Group level, we have the Share Your Fleet mobility programme, and we're testing another car-sharing initiative. We're currently also testing driverless car technology, using a C4 Picasso on the route between Paris and Bordeaux. So we don't fear mobility – we embrace it.

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BUSINESS

Sixt Leasing expanding European footprint Steven Schoefs @StevenSchoefs

Four years ago, Sixt Leasing managed 50,000 contracts. That figure has doubled. By going public, the company has made a clear choice to grow further. Dr Rudolf Rizolli and Vinzenz Pflanz, CEO and CSO respectively, explain Sixt Leasing’s strategy for the future.

RUDOLF RIZOLLI Everybody knows Sixt as a rental company, but we've also done leasing for 45 years. Until recently mainly in Germany, but we've grown considerably over the last three years. So last May we decided to go public and 60% of our stock is free float. We have an equity rating of 16% against balance sheet. That's double the average, and an giving us the chance and an extra impulse to grow further.

So what is your strategy now? RUDOLF RIZOLLI Our strategy is to grow across various client target groups on local and regional scale. Within this strategy we clearly focus on organic growth, but take as well opportunities to acquire other companies.

Vinzenz, you recently joined from Fleet Logistics. Why? VINZENZ PFLANZ The company's position, between the banks and captives, is very interesting. Being part of one of Europe’s leading rental networks offers product opportunities for corporates, which do not exist in the market place today. In addition, have a look at the most mature market, the U.S, where privately-owned companies dominate the market. That will be the trend over here as well. So Sixt Leasing has the perfect positioning and capacity to grow significantly.

Isn't the problem that Sixt is not well known outside Germany? RUDOLF RIZOLLI We need to work on our name recognition outside our home markets Germany, Austria, France and Switzerland, where we are present via our daughter companies. Rudolf Rizolli and Vinzenz Pflanz of Sixt Leasing: “Lease companies often do not deliver full transparency. That's a great chance for us.”

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VINZENZ PFLANZ We aim to build an even stronger leasing network by cooperating with strong 'local heroes' in the six European key markets. All other markets we will continue

to cover as today by our long term franchise partners having already Sixt mindset in their venes since years. But in fleet management, we want to build our own infrastructure. Which is why we just entered the Dutch market and invested in further capabilities in France. Other markets will follow soon.

Where else? VINZENZ PFLANZ By the end of the year, we want to be present in the top 8 countries in Europe. Those cover in most cases 80% of the fleet management potential of big international groups. We have customers already in the portfolio waiting for us to enter those countries to do their fleet management. That would grow our current fleet management portfolio of 33,000 units with those big German clients to 100,000 units. Next to clients using leasing we will focus in addition on purchased fleets. RUDOLF RIZOLLI Leasing is different: we're not going to build leasing companies from scratch; here we work with cooperating and franchising partners. But we also offer leasing to consumers via an online retail platform, which is a third pillar, next to fleet lease and management.

How global are you today as a leasing company today? RUDOLF RIZOLLI f you look at our franchise network, we are present in 54 countries. Rent a car is in 125 countries. So we have feet on the ground in most countries.

IT is important to Sixt. Why? RUDOLF RIZOLLI IT is our second-biggest department. We develop everything in-house. That's a competitive advantage, but requires a continuous effort. Oddly enough, some companies don't invest in IT. Eventually, they will disappear.

BUSINESS

BMW Group thrives on competition Steven Schoefs @StevenSchoefs

Corporate fleet sales represent 31% of BMW Group's overall sales in Europe. Not bad, but the Bavarians want to do even better. Marco Lessacher, the Group's VP International Corporate, Direct and Special Sales, explains how. “By enhancing our customer relationships. We're positioning specially trained staff in our dealer and marketing organisations, to create a 'single point of contact' for fleet managers. This will help us understand specific requirements, as well as offer specific solutions. We'll also support our dealers with fleet business programmes designed for user-choosers.”

Which new products can we expect from BMW – and how will they add value for corporate fleet customers? At the end of last year, we introduced the BMW 7 Series, the new BMW X1 and the X5 PHEV. In the coming years, we'll roll out PHEV versions of all BMW models. All will have a considerable emission-free range, and high fuel efficiency over longer distances. This March, we'll launch the BMW 2 Series Active Tourer PHEV and the BMW 3 Series PHEV and later this year, the 7 Series PHEV. As for MINI, the new Clubman has a lot to offer our corporate customers: great styling, spacious interior and plenty of practical features. “Without diesel engines, it would be impossible for car manufacturers to meet future requirements”, says Marco Lessacher, VP International Corporate, Direct and Special Sales at BMW Group.

The premium brands are fighting a huge battle in development and sales. Who will win? We all thrive on competition. Its current levels are not new. Ultimately, it has helped us develop a wide variety of products and

services in the premium segment. We've often led the industry in opening up new market segments – think of the current trend for SAVs.

The three German premium brands have joined together to buy HERE. How will acquiring Nokia's mapping service via that partnership add value for your customers? HERE remains an independent company. As the leading provider of highly precise digital maps and location-based maps and services, it has customers in all kinds of industries. By acquiring HERE, the three brands have made sure that its products will remain fully and freely available in future.

BMW is a big innovator when it comes to alternative powertrains. But are they being adopted by corporate fleets? How many PHEV vehicles are used in a fleet is directly proportional to the TCO. For purely electric vehicles, fleet operators have to consider charging infrastructure, charging speed, and drive range. As alternative drive systems achieve a performance similar to conventional vehicles, the uptake by corporates will increase.

Even before and beside 'Dieselgate', diesel is under pressure in Europe. What's BMW's take on the issue? Without diesel engines, which emit up to 20% less CO2, it would be impossible to meet future requirements. So we really need diesel. BMW Group has invested a lot in refining and optimising diesel technology, via our EfficientDynamics programme.

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BUSINESS

The EU is currently working on the WLTP test cycle, taking in more real-life driving situations. We're all for a swift introduction of these rules. However, we foresee a moment when it's no longer economically viable to adapt diesel engines to increasingly strict regulations. Then, electric drive will really come into play.

BMW Group is also a major mobility innovator. Which are the products and services you will deploy so companies can make the most of a future in which connectivity, urbanisation and sharing are increasingly important? Through our 'Now' family and our Alphabet fleet management subsidiary, we at BMW Group already offer innovative solutions that include car sharing, parking and charging. We'll keep developing those, keeping in mind the particular needs of every company that uses them.

Non-traditional players like Google, Apple and Uber are entering the automotive industry – with others sure to follow. Danger or opportunity?

FULL STORY

Several trends are converging – digitalisation, demographic change, urbanisation – to transform the mobility of the future. This is an opening for smart new players. It's up to them to get a foot in the door with innovative and/or digital services.

You can read the full interview with Mr. Lessacher on www.fleeteurope.com, Interview section.

It may sound like a paradox, but we at BMW have been innovating for 100 years! We have a consistent record of making the right choices at the right time. Of course we take new players seriously. As I said, we thrive on competition!

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

BUSINESS

“ With the new Tiguan we will be representing the new Volkswagen” Steven Schoefs @StevenSchoefs

The Volkswagen brand had a good sales result for 2015, even under the known conditions. “In 2016, we will continue to focus on winning back customers’ trust, because customer satisfaction is and will remain one of our most valuable assets. At the same time, we are optimizing our global selling power and stepping on the gas with new models , says Jürgen Stackmann, board member for Volkswagen Passenger Cars, and responsible for Sales, Marketing and After Sales.

How difficult will it be to regain client confidence after the diesel issue?

What will you do to secure residual values of Volkswagen cars on the second-hand car market?

Recovering the trust of our customers with credible and decisive actions is our core ambition. Therefore the main focus of the communication strategy with our stakeholders is to create the best possible transparency. We are in close contact with our fleet customers to define individual solutions. In terms of the recall, we want to offer our customers the best possible service, free of charge. To complete the recall successfully, we will focus totally on a clean process, in order to demonstrate our professionality and competence and to satisfy each customer and consider all partners’ needs.

We are putting all efforts into informing our partners and customers about the recall actions, also confirming to them that after implementing the technical measures there is no detriment to fuel consumption, driving or performance of the vehicle. The feedback of our partners, such as market influencers, also corresponds to the latest internal information: no impacts on vehicle residual values have been found in the European markets. All current changes of residual values reflect normal product life cycle developments and market movements.

Next to this we will inspire our customers with our new products by their quality, security, comfort and efficiency. As we have been doing for years.

As we do have technical measures confirmed for Europe that will make all affected vehicles legally compliant, we are convinced that there will be no RV risks. This is actually verified by independent bodies, such as DAT in Germany, CAP in the UK and L’Argus in France. We therefore do not believe today that there will be any long-term effects on residual values.

In what way can Volkswagen further increase its success with regard to corporate fleet sales? Fleet sales are one of the essential pillars of the Volkswagen strategy in Europe. We are already successfully offering a variety of products and we are going to continue to strengthen our tailor-made solutions, such as service packages and mobility solutions in general. “Recovering the trust of our customers with credible and decisive actions is our core ambition”, says Jürgen Stackmann, board member for Volkswagen Passenger Cars, and responsible for Sales, Marketing and After Sales.

A very impressive and successful example is the new Passat, which had an outstanding fleet sales performance in 2015. Especially FLEET EUROPE #82

BUSINESS

the Passat GTE is excellent at meeting the demands of our fleet customers in the fields of green fleet and efficiency. Next to delivering our fleet customers the perfectly equipped car, with regards to engine and business packages, we are continuously strengthening the professionalization of our dealer network for fleet. This also leads to an excellent support in After Sales. Offering the best service for the driver of the car, the user chooser increases the customer’s satisfaction and brand loyalty. Besides these factors, we still see an ongoing opportunity for growth in the small fleet area.

In what way is the new Tiguan a strategic important model for Volkswagen? Following the launch of the Tiguan in 2007, the car has become a big success story and it has received a variety of prizes. And now the next generation is ready for the market launch. We are very proud of having created an SUV that transfers a new design

quality to this segment in a progressive and competitive way. With its premium image, the new Tiguan appeals to millions of car drivers as an ideal companion, combining emotional and rational product attributes, for their everyday business and personal lives. The car represents not only an active lifestyle, but also an outstanding performance, safety, comfort and the latest in connectivity – which are important buying considerations for fleet customers too. And the wide range of available options makes the car even more attractive for the fleet car driver.

FULL STORY You can read the full interview with Jürgen Stackmann, with his vision on the importance of connectivity and autonomous driving on our websites www.fleeteurope.com and www.globalfleet.com

With the new Tiguan we will freshen up our current portfolio and will be representing the new Volkswagen. For Volkswagen, this car marks the beginning of an SUV product offensive. In upcoming years, the brand will be launching other innovative SUVs that are precisely tailored to specific markets in a wide variety of segments worldwide.

A COMMON VOICE TOWARDS THE MARKET, PARTNERS AND SUPPLIERS

The European Car Remarketing Association (CARA) has 5 clear deliverables: • Have a clear and common return process throughout Europe ‘fair wear & tear guide lines’ • Guidelines of European Import and Export regulation of used cars • Transport solutions throughout Europe • Support ‘correct mileage reading’

To get more information about the association or to become a member, please visit our website

www.cara-europe.org

• Actively lobbing for the right need in our industry FLEET EUROPE #82

www.tiguan.com

For bits, bytes and business trips.

Access all Areas. The new Tiguan. Always stay connected. Wherever your business might take you, the new Tiguan keeps you connected. Gain access to up-to-date-infotainment via its extensive optional connectivity capabilities. Have all the advantages of the digital world with you â&#x20AC;&#x201C; whether for business or pleasure.

Illustration depicts optional equipment.

INNOVATION

Electric Future Potentials Innovations at the Geneva Motor Show 2016 were not limited to the car brands. Many new ideas and concepts were presented during this big European car event. All have one point in common: the 'greenification' of car fleets.

Antigoni Vokou @Antivokou

When thinking about the rapid evolutions of electric vehicles and the development of a greener mobility over the last couple of years, one element strikes as undeniable: less pollutant and ingenuously mobile vehicles are the main priorities for the automotive industry. 1,000 km of autonomy is possible with the QUANTiNO.

EP Tender offers 600 km of additional autonomy to EVs.

EP Tender is a 250 kg modular range extender for EVs developed in France. It powers the EV with electricity while driving through a 35 liters fuel tank and a 20 kW electric generator for an added 600 km range on highway with electricity and for unlimited range with refuelling. Its normalized fuel consumption is 1.8 lit/100 km. Via Tender’Lib it can be rented daily for 17 euros – with 1 hour of operation without fuel – annually for 40 euros or purchased for 600 euros. With a tablet or a smartphone can be checked the range, fuel level, battery level at destination and state of operation. FLEET EUROPE #82

No time is wasted to find a parking, two Microlino’ can fit in one place.

The Microlino is a urban mobility EV concept created by Wim Ouboter, who reinvented the Micro Scooter, and Swiss University ZHAW in 2015. Visually it is based on the BMW 1956 Isetta and its moto is 'Reduce to the max'. The Microlino wants to be the first functional 'light' EV car – it weighs less than 400 kg and two can be parked together in a single parking place – aimed for car sharing and car pooling. Its energy consumption is less than 1lit/100 km. The 'little' Swiss climate-friendly car wants to boost urban sustainable mobility solutions.

Electro-mobility is developing at fast pace and for fast speeds too. The QUANTiNO is the first 2+2 seats EV worldwide which can reach a 1,000 km autonomy or 14 hours. The EV is powered by nanoFlowcell, a sustainable technology based on electrolytes which works following the principle of energy transfer. The QUANTiNO combines low CO2 emissions and high performances with 80 kW (108 hp) electric motor which can accelerate from zero to 100 km/h in less than 5 seconds. Its energy consumption is 12-14 kWh/100 km and has two tanks of 159 lit. This EV concept was developed in 2013 in Liechtenstein by Nunzio La Vecchia, a former associate of Christian von Koenigsegg, nanoFlowcell AG and has its simulation laboratory in Zurich.

REMARKETING

Fair wear and tear standard 'by end of 2016' Frank Jacobs @FrankJacobs

The first thing the Polish Vehicle Rental and Leasing Association did? “Create a common standard return policy”, says Leszek Pomorski, Alphabet Polska CEO, then president of the newly-founded PVRLA and currently Member of the PVRLA Programme Committee. It shows just how important clarity on fair wear and tear is. Which is why CARA is now working on an EU-wide standard. But is it achievable?

HIGHLIGHTS • CARA works on a Europewide inspection standard by end 2016 • The lack of a standard leads to animosity between lease companies and clients • Fair wear and tear supports lease market maturity

Frank Van Gool has his doubts. “Each market is specific”, says the General Director of Renta, Belgium's vehicle leasing and rental association. “If an EU standard developed along the lines of the greatest common denominator for the big leasing companies, it will be far too restrictive for certain markets.” ANIMOSITY It is one more example of the European paradox: measures that have proven necessary and beneficial on the national level, seems inachievable – or even counterproductive – on a supranational level. Mr. Pomorski's first-hand account certainly proves how necessary and beneficial the PVRLA's end-of-lease inspection standards were for the Polish market: “Six years ago, the lease industry was still very new in Poland. Each lease company had its own fair wear and tear standard. The lack of a national standard led to a lot of

animosity between the lease companies and their clients. There were conflicts over what constituted standard and nonstandard use, over which lengths of scratches counted as refundable damage, etcetera.” GREY ZONES “One of the first jobs of the PVRLA was to develop a fair wear and tear guide, with pictures and descriptions, eliminating the grey zones”, Mr. Pomorski recalls. “Three years ago, we extended the same principle to cover LCVs. In my opinion, fair wear and tear standards are essential for maturing the lease market. Also because they improve residual value planning.” In other words: they eliminate one of the most dangerous pitfalls of the lease industry – honey-trap contracts. “I know plenty of cases where customers chose another provider because it seemed cheaper on paper, at the start. Three years later, they confessed to me – Yes, we've been ripped

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REMARKETING

off, we've been charged through the nose for damages. That's very frustrating, both for them and for any serious lease company”, says Wolfgang E. Reinhold, president of the European Car Remarketing Association (CARA). LOCAL PRICING CARA wants to lift inspection standards from the national to the European level. “It's the lease companies that set the standards, and those are more or less the same already anyway”, he says. A CARA committee is examining how and when such a standard can be proposed. It would be non-binding, but the same goes for most national standards too. EU-wide inspection standardisation could be an important driver for cross-border trade in car remarketing. But Mr. Reinhold knows it won't be easy. “Of course, there are issues such as different standards for cars and LCVs. But the main problem is the tension between the international perspective and local pricing. The cost of labour and spare parts differs substantially between markets. If you have two Mondeos with similar damages in two different markets, fixing them could cost €300 in market A, and €1,000 in market B.” ZOOMING IN But market differentiation is determined not just by prices – some markets may exhibit peculiar business practices as well. Take Portugal, for instance. The country was hit especially hard by the economic crisis a few years back. At one point, the automotive market had shrunk by 50%. Fleet companies started asking more competitive prices – and zooming in on the end-of-lease process. “Fleet managers were confronted with serious bills at the end of a leasing cycle. Unlike before”, says Hugo Jorge, editor of Fleet Magazine, a Portuguese trade periodical. “Now that some time has passed, the sector has adapted to the new situation: aware of the end-of-lease cost, and trying to minimise it”. Which has led, in the past year and a half, to a very peculiar Portuguese solution: “Companies are sending their leased vehicles to be pre-inspected before returning them, repairing as much damage

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Clarity on fair wear and tear, and the introduction of a Europe-wide inspection standard has to eliminate honey-trap car lease contracts.

as they can themselves. Often, it's the same company that afterwards effects the actual end-of-lease inspection on behalf of the lease companies.” Wolfgang Reinhold argues that such aberrations can be avoided with a Europe-wide inspection standard: “We need to make it clear up-front which will be the exact wear and tear criteria that will apply, in a European context. At the latest by the end of this year, CARA will propose such a standard to its members. If we stick to it, the whole market will have to follow.”

REMARKETING

Diesel’s difficulties complicate RV picture Frank Jacobs @FrankJacobs

“The next few years will see changes to Europe’s automotive landscape that will challenge the long-term planning and strategic abilities of fleet managers – notably with respect to RVs”, says John Maslen, editor at AIC (Automotive Intelligence and Consulting) Digital, published by EurotaxGlass’s. Three major trends are driving those changes. Firstly, governments across Europe are pushing schemes that favour various types of fuel and transport. Secondly, falling petrol prices are altering the fuel part of the automotive equation. And thirdly, shifting consumer patterns are pointing towards new vehicle types and travel modes.

Attitudes towards diesel are shifting at various speeds across Europe. This complicates the choices facing international fleet managers, as it has diverse effects on both the running cost and residual values (RVs) of their different national fleets.

progressively undo that”, said French PM Manuel Valls back in 2014. Fiscal measures are increasingly discouraging the diesel option. Paris is one of several cities considering a total ban on diesel vehicles by 2020. NO CONSISTENCY Even though the trend away from diesel is perceptible across Europe, the problem for international fleet managers is that there is no consistency in the measures across national borders. Germany’s CO2-based tax system makes a shift away from diesel less likely than France’s head-on approach, for example. These national differences have an effect on the predicted RVs of diesel vehicles across Europe (see chart).

CROSSROADS Diesel is at the crossroads of all three trends. “Real-world emissions tests, set to be phased in over the coming years, will focus on NOx and other pollutants that are particularly relevant to diesel vehicles”, says Maslen. Widespread concern that real-world NOx emissions exceed official test results – a suspicion fueled by ‘Dieselgate’ – could be validated, and be very detrimental to the popularity of diesel vehicles. At various national levels, diesel is already under direct attack, most prominently in France, which plans to phase out diesel completely for private passenger transport. “We have long favoured the diesel engine. This was a mistake, and we will

Bye bye residual values for diesel: Paris is one of several cities considering a total ban on diesel vehicles by 2020. FLEET EUROPE #82

REMARKETING

DIESEL RESIDUAL VALUES OVER NEXT 5 YEARS Source: AIC; EurotaxGlass’s

DIESEL RV IN 5 YRS (A + B SEGMENT) DIESEL RV IN 5 YRS (C + D SEGMENT) COMMENT

GERMANY

FRANCE

SPAIN

ITALY

NETHERLANDS

BELGIUM

AUSTRIA

Unchanged

Down up to 5%

Down more than 5%

Down up to 5%

Down more than 5%

Unchanged

Down up to 5%

Unchanged

Down up to 5%

Unchanged

Favourable taxation, lower fuel cost, strong diesel image

Deteriorating diesel image, growth of alternative powertrains

Deteriorating diesel image, unfavourable taxation

Changing diesel image, slower pace of change to new technologies

High price of small diesels, pollution concerns

Current demand levels stable

Balanced demand and supply, diesel fuel cost advantage

Fuel price is the second factor adding complexity. “Falling oil prices and, in France, an increase on diesel taxes, are eroding diesel’s price advantage”, says Maslen. “As declining fuel costs take up less of a car’s TCO, diesel cars’ higher list price will be an increasingly negative factor”. But again, the picture is made more complex because fuel prices vary widely between countries. Consumer choice, the third factor,

No price advantage in used car market, shrinking fuel price gap, unfavourable taxation

is also trending against diesel, largely the result of government incentives and negative publicity. “Together, these factors paint a very complex picture for fleet managers, as they try to chart a clear course for their fleet policy over the next three- to four-year replacement cycle”, Maslen says. BUSINESS CASE Adds Michael Kleber, Product Manager Consulting at Automotive Intelligence and Consulting (a division of EurotaxGlass’s): “Diesel will be framed more and more by legislation, which will have a negative effect on the business case for diesel, which has worked for so long and over the long term will undermine the RVs for diesel cars in some sectors.” But that is true only in the broadest sense. “The challenge for fleet managers is that there is no consistent pan-European trend. Individual national factors and priorities are leading to increased diversity across borders, which places increased pressure on managers with a pan-European remit to develop flexible and suitable reisual value strategies”, Michael Kleber concludes.

FLEET EUROPE #82

FACE TO FACE

We’re not dead yet Two international corporate fleet managers, one nice location, and a menu of pressing fleet management topics to choose from. That is the setup of our new Face to Face series. Because sharing experiences and insights between fleet peers adds value for all of us. Welcome to Episode 1.

Geert Behets and Pascal Struyve have more in common than their coiffure. They’re both Belgian, they both have a global responsibility in fleet management, and they both combine their fleet management responsibilities with travel and meeting services. In fact, they meet each other more in their travel functions than they do in fleet. In the iconic The Hotel, near to the glamorous Avenue Louise and close to the historic Grand Place in Brussels, they sat down and took the time for an engaging discussion about their Fleet Management Strategy, their view on Alternative Mobility and the importance of Fleet Safety and Telematics with regard to optimised Driver Behaviour. Their views on the first two topics are reproduced on these pages. For their opinions on Safety and Telematics, go to our Fleet Europe website, where you will find them presented as a unique video feature. Check it out – but first, meet with Pascal and Geert!

FLEET EUROPE #82

Pascal Struyve INGERSOLL RAND

FUNCTION Global Travel, Fleet and Meeting Services Director at Ingersoll Rand DIVISION HR COMPANY ACTIVITY Manufacturing NUMBER OF CARS 4,000 (2,000 in Europe) SIBILITY Global IN FLEET MANAGEMENT SINCE 2005 REPORTING TO Vice President & General Manager Global HR Operations FLEET TEAM 16 people globally

Geert Behets UCB

FUNCTION Head of Global Travel, Meetings, & Fleet Management at UCB DIVISION Procurement COMPANY ACTIVITY Pharma NUMBER OF CARS 3,000 (2,000 in Europe) FLEET RESPONSIBILITY Global IN FLEET MANAGEMENT SINCE 2007 REPORTING TO Vice President Global Purchasing FLEET TEAM 0 – Operational fleet management outsourced

FLEET EUROPE #82

FACE TO FACE

STRATEGY

How do you efficiently implement a global fleet strategy? PASCAL STRUYVE First of all, we do not have a global policy. I don't believe you can truly globalise fleet. We have global guidelines and regional policies with local addenda. It's a struggle to implement the same fleet strategy across all markets, because contrary to travel management, there aren't enough truly global fleet suppliers. The main thing is to have a programme that covers your company's footprint and delivers a service to your internal stakeholders. I'm sure that if you would push for a global policy, you'll end up with more exceptions in your regional and local addenda than is suitable for the added value promised by your global policy. GEERT BEHETS We have global targets that we adapt by region, but it's not a global standard operation. We decide globally to choose leasing, to outsource and to focus on Green and Safety, but we have regional and local flexibility to adapt guidelines to market realities. The list of vehicles, safety elements and sustainability targets: those are part of our global policy. But the exact translation requires local flexibility, as no two markets are the same.

What are the biggest difficulties in defining an international fleet programme? GEERT BEHETS The biggest challenge is internal resistance at a local level. You can only overcome this by having a strong mandate. Introducing an international policy means changing an existing way of working. We like to co-create. So I go to the countries, I work with HR, and I discuss how to make the general rules work locally. One thing I always avoid is saying that we do this to save money. That doesn't work! PASCAL STRUYVE The biggest struggle is the variation of fleet management best practices on a country-by-country. Even though you'd like a single, international programme, you end up with different variations of your initial idea. Change management and communication are therefore two critical elements if you want to implement an international fleet programme locally, and successfully. And Geert is right, focusing your

communication on cost savings won't eliminate resistance to change – on the contrary. You have to explain and demonstrate the added value of your international policy, to the organisation, the customer and the driver. The answer to the ‘What’s in it for me’ has to be positive.

How do you achieve international standardisation and bring about efficiency? PASCAL STRUYVE In Europe, 80% of your processes can be harmonised, but I wouldn’t call them standardised. Still, it shows fleet maturity; the other 20% depends on certain markets that are not yet mature. From a global perspective it is the opposite: 20%/80%. That's a big challenge. GEERT BEHETS We can standardise more than Pascal can because we have a more coherent vehicle fleet, with only benefit cars and cars for sales people. We don’t have technical people. We are focused on making sure that we give people what they really need. Our motto is to make it as simple as possible, without trying to over-standardise.

How do you integrate developing markets in your international fleet policy? GEERT BEHETS You can't force the market. With leasing companies, our fleet management company and OEMs, we're pushing to get more alignment between markets, while also working within their limitations. Take Mexico: until two years ago, full-service lease was not penetrating the market. Globalisation has changed that. Now, we can move forward. Getting things done is often a matter of time. PASCAL STRUYVE There is a natural cycle from implementation to maturity. If you've introduced a car fleet policy in country A two years ago, you can't expect it to align with country B, where you've implemented one 15 years ago. You have to learn to walk before you can run. My goal in the next years is to bring the same levels of maturity and value of our international programme to all markets, with a focus on Asia. It won’t happen overnight, but with experience comes the ability to speed up the process. FLEET EUROPE #82

FACE TO FACE

MOBILITY & NEXT STEP

Are your companies open to alternative mobility models? PASCAL STRUYVE Looking at the future, I'm sure the answer is yes, depending on which solutions will come to market and on the changing attitudes to mobility of the workforce. Our programmes will adapt to new realities. Mobility depends largely on what the employee needs. We're still working as if one solution fits all. But mobility will increasingly be about different solutions, picking from a mobility menu, and choosing whatever fits the needs of your individual driver – and of the company. I wouldn't be surprised if the mobility of the future hasn’t been invented yet. One day, a solution as yet unknown may pop up, and become the new standard for our fleet programmes. I'm convinced there will be huge changes. But not immediately. GEERT BEHETS Different mobility modes are already on our radar. We’re a forward thinking company, so UCB is ready, but the drivers aren't. I believe at some point travel and fleet management will touch, and even merge. I can imagine international employees that may not want a car to get to our office. Maybe they'll say: “I'm taking public transport or even Uber to the office and to travel across Europe”. How do you manage that? We don't have the solution yet. More and more, I'm hearing questions like: “Why do I need a company car? Why can’t I take a smaller car and get a bike to go with it?” Younger employees are more open to concepts like car-sharing and ride-sharing, but as long as mobility alternatives aren't easy to use and seamless to manage, people won't use them.

Will mobility redefine the role of the international fleet manager? GEERT BEHETS Honestly, I don’t think so. I see myself more as a connector and that role will remain essential, because mobility solutions from one country can be instructive elsewhere. In the same way as travel and fleet have evolved, you will have different mobility maturities across markets. In the Netherlands, with a well-developed public transport network, the solution will be different than in Italy or Mexico. PASCAL STRUYVE The kinds of service we provide might change. But still, someone FLEET EUROPE #82

will need to make sure this service is delivered in the best possible way, aligned with overall corporate objectives. Our role will evolve, absolutely. As they always have. If you go back ten years, our roles back then were quite different from now. Back then, our fleet perspective was not international at all. Today, international fleet management is common, and we are even moving within a global perspective. Ten years from now, I'm sure we'll have a different job. But it will still be about delivering a service to our internal customers. Managing that service is almost like having your own company inside a company. We have to be flexible and open-minded about what is happening out there, but I am convinced we will still have a crucial role to play. We're not dead yet (laughs).

What is next on your fleet management to do list? GEERT BEHETS We're using a car selector mechanism that allows our people to choose their company car. A recent internal fleet survey showed that there is more similarity in the chosen brands and vehicle types than we imagined. So we have the opportunity to harmonise those elements within the car selector even more. PASCAL STRUYVE My goal is to further leverage fleet management harmonisation, and by the end of 2016 we want to complete the relevant blind spots in Asia.

Will the new Lease Accounting Standard, in which all lease assets come on the user’s balance sheet, change your funding preference policy? PASCAL STRUYVE Hard to say. First we need to know what needs to be done in terms of accounting, and examine what the exact impact will be for our company. Based on that we will make a decision in the best interest of our company. GEERT BEHETS It becomes interesting in the light of mobility and when you approach this from the driver’s side. Today our employees are still too attached to their company car. If we can stimulate the switch to the sharing principle, the lease accounting issue will not be an issue anymore.

FACE TO FACE

TIPS & TRICKS PASCAL STRUYVE

GEERT BEHETS

Ingersoll Rand

UCB

A global program is not build in a day – it is a continuous process of standardization and harmonization of policies and processes.

Be prepared to adapt your Global Strategy to local requirements or habits. We do not handle in 'tricks' in Purchasing and if I were,

Find what matters most to the organization and build your strategy around it.

I would not share them publicly (laughs)

WATCH THE VIDEO Geert Behets and Pascal Struyve discuss Fleet Safety and Telematics. Discover the video feature now on

www.fleeteurope.com

WHO’S IS WHO

Think that what works well in one market will work everywhere.

What is the biggest mistake in car fleet management you have made?

Food & Wine

What is your passion outside of the fleet and travel business?

Toyota Starlet

What was you first car?

Asia

“Life's too short to drink bad wine”

What is your favourite holiday destination?

What is your motto in life?

Underestimating the power of information you can get from your drivers. Traveling for myself and cooking

A second hand Fiat 127 New York if you want to actively discover a city; if you want to enjoy nature, there is plenty of choice, but the canyons and Alaska are fantastic. “Don’t take yourself too seriously the cemetaries are filled with 'indispensable'” people. FLEET EUROPE #82

FACE TO FACE

INSIDE FACE TO FACE Getting together two international corporate fleet managers for an extended interview is not as easy as it sounds, but one call was enough to convince both Geert and Pascal in participating in Face to Face. Tuesday 9 February was the day picked. No better date could have been chosen as 9 February was grey, cold, rain showers…. yes, typical Belgian weather. Instead of doing the interview on a nice terrace we went inside The Hotel, up to the 25th floor where we installed for a 3 hours session of maquillage, interview and video.

An engaging discussion on today and tomorrow's fleet management challenges with two experienced fleet experts, at the 25th floor of Brussel's iconic The Hotel.

Pascal Struyve: “There is nothing wrong with a degree of flexibility in your fleet policy. On the contrary, to obstinately maintain to the policy can be contra productive.”

Geert Behets, Head of Global Travel, Meetings, & Fleet Management at UCB, won second prize at the 2015 Fleet Europe Awards in the category International Fleet Manager of the Year Medium Fleet.

Both Geert Behets and Pascal Struyve see benefits in the arrival of the selfdriving car, in terms of safety, employee mobility and employee productivity.

FACE TO FACE EPISODE 2

#83

The series continues in the May edition of Fleet Europe with two new International Fleet Managers.

Steven Schoefs & Antigoni Vokou | PICTURES: Benjamin Brolet | CAMERA: Simon Arnold | PRODUCTION SUPPORT: Céline Gilson (organization) | PRODUCTION LEADER: Urbain Ortmans

FLEET EUROPE #82

ADVERTORIAL

CONCEDED EDITORIAL SPACE

Fiat Tipo: simply value! If there is one manufacturer in the world which has always been known for its stylish and functional roomy cars – it is Fiat. The new Fiat Tipo represents a return to these roots in the compact segment in concept and in name, in true Fiat style, and resolutely in the 21st century. Bearing witness to this is the fact that the Fiat Tipo has collected the prestigious Autobest ‘Best Buy Car 2016’ award, chosen by a jury of 26 journalists from the most authoritative European car magazines.

This accolade underlines the model's standout traits of design, quality, comfort and versatility and rewards an exceptional offering that is squarely focused on value for money, a crucial concept in Fiat's functional family strategy, as summed up by the slogan ‘You don't need much to get a lot’. The Fiat Tipo family is a simple yet comprehensive offering serving the heart of the market with the Tipo 5-door and Tipo Station Wagon versions. The Tipo family was developed around the brief ‘Skills, no frills’ and combines the Fiat brand's historic concepts of functionality, simplicity and personality in an extraordinary value-for-money offering. TOTALLY PRACTICAL Being stylish, economical and fun to drive isn’t everything. Fiat’s designers and engineers have made sure the new Tipo performs in every aspect of modern life. Functionality has been a hallmark of Fiat for more than 80 years and has contributed to a back catalogue of highly successful models. In this case, the carefully designed internal spaces offer unbeatable liveability and boot capacity for this category, as well as great versatility of use, particularly for the Station Wagon version.

With UconnectTM LIVE app you remain connected all time.

• 440 litres load capacity for the 5-door • 550 litres load capacity for the Station Wagon with additional flexibility thanks to Magic Cargo space • Numerous compartments with a variety of shapes and capacities • Class leading internal roominess FLEET EUROPE #82

The Fiat Tipo is Best Buy Car of 2016 for its quality, design and comfort.

• Outstanding comfort • Excellent ergonomics and visibility: liveability, driving posture, space reconfiguration, accessibility and visibility. • Simple line up: three trim levels and rightsized engines line-up COMPREHENSIVE POWERTRAIN RANGE The range of engines on offer in the new Fiat Tipo follows the same logic as the passenger and load areas: totally practical and designed for all purposes. • All engines Euro-6 compliant • 1.3 MultiJet 95 HP turbo-diesel • 1.6 MultiJet 120 HP turbo-diesel • Fire 1.4 16v 95 HP petrol • 1.6 E-torQ 110 HP petrol • 1.4 T-Jet 120 HP petrol • 1.4 T-Jet 120 HP LPG petrol • Manual 5-speed, 6-speed, or automatic transmission or automatic dual clutch transmission, depending on engine • Fuel consumption from 3,7 litres/100km (combined cycle) • CO2 emissions from 98 g/km (combined cycle) BUSINESS PACKS/VERSIONS Fiat Tipo will have a Business version (depending on market) which includes navigation system, UConnect Live Services, rear parking sensor, driver seat lumbar adjustment, Automatic Cruise Control, Advanced Electronic braking system, Speed Limiter device. ALWAYS CONNECTED The new Fiat Tipo features the innovative UconnectTM 7" HD LIVE system with a FLEET EUROPE #82

It offers 6 Euro-6 compliant engines from diesel and fuel to LPG.

7" high-resolution colour touchscreen display and a capacitive screen that the user can pinch and swipe, just like a tablet. The latest-generation system includes a handsfree Bluetooth interface, audio streaming, text reader and voice recognition, AUX and USB ports with iPod integration, controls on the steering wheel and, on demand, rear parking camera and the new TomTom 3D built-in navigation system. The free UconnectTM LIVE app (from the Apple App Store or Google Play) on users’ smartphones unlocks all the benefits of UconnectTM LIVE: • Music streaming with Deezer • TuneIn • News from Reuters • Connected navigation with TomTom LIVE • Facebook • Check-in • Twitter.

EXPERT

Captive leasing serving clients and OEM’s Captive leasing companies are obviously there to help sell the models of a particular manufacturer. But their role is far more wide-ranging than that, and the different factors in play are evolving all the time: models, services, markets, not to mention the client’s needs.

ROBERT BOSCARI International Fleet Expert

HIGHLIGHTS • Captives have to reinvest in the fleet market to cover all of its segments • The more weight the OEM has with a client, the greater the role the captive can play • Large accounts are going to involve captives in their calls for tender

Why are captive leasing companies important to fleets? Captive leasing companies help provide supply added value services inherent to the cost of use of the vehicle. The captive also adds financial value to the results of the mother brand. The captive supports the dealership network, which serves small and medium fleets, independents, taxi companies, driving schools… and they play an essential role in the retail market.

• designing, producing and marketing vehicles, including the used market sales; this is a complex strategy because it involves product, service and market evolution • creating specific connected fleet services and special ‘business lines’ which: -- correspond to fleet client demand in a given country -- enhance the residual value of the vehicles.

Where large accounts are concerned, captives play a crucial role in ensuring the regional or national agreements in place with the manufacturer, in markets where the OEM has a strong position. This is less obvious at international level, where: • the international lease companies have a strong presence • calls for tender are normally multi-brand.

The captive has to respond to this situation by being involved in everything to do with the financial offering, services and fleet management: • fi nance, credit, leasing, long term renting and even savings • services, maintenance, tyres, replacement vehicles… • d river training, management of connected services.

In these international account cases, only an OEM group approach is possible, provided the captive can respond to their needs.

Captives make available to their OEM’s their knowledge of clients, risks and networks, via their platforms.

How do OEM’s use captives to promote models?

Are the models they promote new, unsold, or something else?

The manufacturer has its own issues to deal with:

The captive is not just a promotions factory. The mission of the captive is to support

FLEET EUROPE #82

In the end it will always be the fleet customer who has the power to decide to partner, yes or no, with captive leasing companies.

all vehicles during their life-cycle, while retaining their value.

››Promotional offers When a model is selling slowly and the manufacturer launches a plan to revive it, the captive can be involved through financing or more attractive services. The manufacturer plays a part through the consolidated accounts with its captive. This is a promotional practice used in retail and the small fleet market. For large accounts with agreements, the contract length, pricing conditions and number of models do not allow for promotions. Everything is negotiated at the outset in view of expected volumes.

What is the impact of OEM’s pushing models to existing clients through captives? It is always the client who decides, but it is clear that the more weight the OEM has with a client, the greater the role the captive can play.

››In small fleet and retail These clients are becoming consumers of mobility, and they want to pay for vehicle usage. A look at the evolution of leasing and long term lease products with services demonstrates that this growth is due to the current trend towards connectivity, mobility, green and more autonomous vehicles. An OEM which pursues these technologies has to integrate them along with its captive and its distribution network, and then more directly communicate and

FLEET EUROPE #82

market them to potential clients. Current evolution in manufacturer websites bears witness to this.

››For large accounts The Fleet and Mobility Manager requires a more complex approach, a dedicated client platform. Investing in IT is not enough, investment in specialists is needed, and time is required to deploy the systems and make them profitable. The international leasing companies are also there to serve this market’s needs. But there are opportunities for the captives: • in national, regional and public calls for tender in markets where the OEM is strong • in sole badge calls for tender, or dual badge if they can show a wide range of vehicles • i n LCV calls for tender, where they have expertise • In evolution in the domains of telematics, connectivity, alternative powertrains and vehicle autonomy, which provide captives with potential for innovative services.

What are the changes for fleet clients? There are no changes, there is just evolution. The change resides in the technological evolution in mobile communications and in vehicles. This is the source of new automobile mobility services for all players in the fleet market. And this is where the interest lies for clients – in the end it will always be the client who decides.

ANALYSIS

Convenience and safety first Dieter Quartier @DieterQuartier

Looking at this year’s innovations in the tyre industry, driver convenience and protection seem to be the common denominator. BRIDGESTONE DRIVEGUARD: UNIVERSAL RUN-FLAT Keen to enlarge its fleet market share, Europe’s number 4 tyre manufacturer introduces a ‘universal’ aftermarket run-flat tyre. Contrary to existing OEM solutions, it can be fitted to almost any TPMS-equipped passenger car on the market. Another USP is that DriveGuard resists punctures not only in the tread, but also in the shoulder of the tyre. Thanks to the reinforced sidewalls with innovative cooling fins, the customer can continue to drive for up to 80 kilometres at a speed of maximum 80 km/h, even with a fully deflated tyre, so that he or she may reach a service centre to have it replaced. Key benefits: added safety, less time lost, no need to carry a spare tyre.

NOKIAN ELINE2: GREEN AND RED The Finnish-made eLine2 summer tyre is the result of nearly four years of development and field testing, focusing both on short stopping distances on wet roads and a low rolling resistance. The revolutionary aspect of this new AA-rated summer tyre for midsized vehicles, however, resides in a new tread wear indicator. When the tread depth drops below 4 mm, a red stripe will appear around the tyre, alerting the driver that it is time to have his tyres changed. The eLine 2 will be available next summer in sizes of 15 and 16 inch, with speed ratings H (210 km/h) or W (270 km/h).

NORAUTO PREVENSYS3: THE CHALLENGER WITH PUNCTURE COVER Available through the Auto5 and Norauto network, the successor of the value-formoney Prevensys2 summer tyre promises performance levels equal to or even better than those offered by premium brands, particularly when it comes to wet braking. At the same time it should offer 20% more mileage than its predecessor, which got surprisingly good results in a comparative test published by L’Argus on April 28, 2011. Moreover, the Prevensys3 comes with a free lifelong puncture cover – without mileage or age limit. When it needs replacing, a depreciation based on the remaining tread depth applies.

FLEET EUROPE #82

ANALYSIS

One tyre fits all? Dieter Quartier @DieterQuartier

There is no arguing that extreme climate differences require two sets of tyres: soft and siped ones in winter, harder and less indented ones in summer. But are all season tyres, which are a mix of both, a good alternative in ‘mild’ countries? In the USA all-season tyres are commonplace: many cars leave the factory on ‘hybrid’ rubber that does what it is supposed to in a variety of conditions – without offering the best possible performance in any area. In Europe, some OEMs are starting to offer customers the possibility to have their vehicle fitted with all-season tyres, mainly in the B and C segment. An option that more and more European customers add to the order form for their car. Why? Because they want to have added safety in winter, without the fuss of going to the tyre centre twice a year. The stakeholders on the fleet supply side – tyre centres, leasing companies - have their reservations. The common denominator in their objection is that a double set of tyres offers the best performance and safety, because they are developed to cope with specific weather and road conditions. To most of them, all-seasons are a compromise, suitable at most for low-mileage use in moderate climates. Still, opinions seem on the verge of shifting as products are developing. YES BUT, NO BUT All-season tyres are middle of the road in every aspect – arguably, they lean towards winter tyres. Their medium-soft rubber compound makes them suitable for temperatures between more or less -5 and

FLEET EUROPE #82

Every all-season tyre carries the letters M+S (for mud and snow), in some cases accompanied by the “Three Peak Snowflake”.

+25 degrees Centigrade. In other words, for regions like Western Europe (Belgium, France, central Germany, Ireland, the Netherlands, UK) and the northern and/or coastal parts of southern European countries – mountainous areas aside, of course. Like winter tyres, they have sipes in their tread - albeit in fewer quantities - for better grip on snow. The other side of the coin is that these sipes increase rolling resistance and thus noise and fuel consumption. All-season tyres are at their best at a temperature of 7 degrees Centigrade – indeed, the threshold for changing from summer to winter and vice versa. The more the outside temperature deviates from this threshold value, the more their performance deteriorates and the faster they wear.

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ANALYSIS

EU COUNTRIES WHERE WINTER TYRES ARE OBLIGATORY Source: Goodyear

COUNTRIES WITH NO REQUIREMENTS FOR WINTER TYRES COUNTRIES WITH REQUIREMENTS FOR WINTER TYRES AND/OR OTHER WINTER EQUIPMENT IN CERTAIN CIRCUMSTANCES OR ON CERTAIN ROADS (E.G. "PARTIAL OBLIGATIONS FOR WINTER TYRES") COUNTRIES WITH LOCAL REQUIREMENTS FOR WINTER TYRES/ USE OF CHAINS COUNTRIES WITH MANDATORY WINTER TYRES LEGISLATION THROUGHOUT A WHOLE FIXED PERIOD AND ON ALL ROADS, IRRESPECTIVE OF WHETHER THERE IS SNOW AND/OR ICE (E.G. "OVERALL WINTER TYRES LAWS")

LEGAL QUALIFICATION There are almost as many winter tyre regulations as there are European countries. In most cases, all-season tyres are accepted as an equivalent to regular winter winters, as far as they carry either the letters M+S (for mud and snow) and/or the ‘Three Peak Mountain with snowflake’ symbol (3PMSF). However, in some European states (Austria, Italy, Slovenia), only ‘M+S’ certified tyres are allowed. Others also impose a minimum tread depth.

THE MARKET All-season tyres are on the rise. A study by Research and Market shows that they currently represent a market share of 4% in Europe, with double digit growth expected until 2018. No wonder that tyre manufacturers rush to get their all-year product on the market. Even initial non-believers (Michelin and Pirelli, to name a few) now herald the advantages, even though they stress the importance of fitting adapted tyres for extreme weather conditions.

Every all-season tyre has the letters M and S on its shoulder, making it a legally allowed alternative in countries with winter tyre regulations. Although M+S has a legal definition, it is not related to minimum performance requirements. While M+S tires have better snow traction than regular tires, they do not necessarily pass the legal snow grip threshold defined in EU Regulation 661/2009 on the Safety of Motor Vehicles – contrary to 3PMSF-tyres. To add to the confusion, the latter are not recognised in some countries if they do not carry the letters M and S as well…

The main brands that are offering allseason tyres, are Bridgestone (A001), Falken (Euro All Season), Goodyear (Vector 4Seasons), Hankook (Kinergy, Optimo), Kleber (Quadraxer), Michelin (CrossClimate), Nokian (Weatherproof), Pirelli (Cinturato), Uniroyal (AS Expert) and Vredestein (Quatrac). Since customer demand is rising, other tyre manufacturers will probably follow and the offer (sizes) is likely to expand.

FLEET EUROPE #82

PROS • Cost saving and ecological: no need to buy an extra set of wheels • Convenient: no more biannual tyre changes nor tyre storage • Reasonable performance in moderately wintery conditions • Legally allowed alternative for winter tyres

CONS • A compromise at best: summer tyres perform better in summer, winter tyres in winter • Limited size availability: usually B or C segment cars • Higher rolling resistance, i.e. fuel consumption, than summer tyres • Higher wear & tear in summer than summer tyres

ANALYSIS

Tyre reuse is something to chew on Dieter Quartier @DieterQuartier

What happens with still usable winter tyres when your car reaches the end of its use cycle? Are there ways to save money – and the environment? The answer is… Yes.

When asked about ways to drive down fleet costs, many fleet managers reply multi-bidding on the procurement side, driver training, limiting the number of suppliers, extending the lease cycle, etcetera. Few are those who point at tyres. Yet, they represent between 4 and 8 % of the total cost of ownership, depending on vehicle type, vehicle usage, tyre size, etcetera. In reality, their impact on the operational costs of a vehicle is even bigger, as tyre choice has a direct influence on the fuel bill. Hence the importance of comparing tyres on the basis of their European tyre label. Choosing a tyre with an A value for fuel consumption instead of a tyre with a G value may save you up to 9% in petrol or diesel costs. On the other hand, A-tyres (with low rolling resistance) are usually more expensive than B- or C-tyres, without offering the guarantee that they will last longer. Unfortunately, the EU label does not say anything on longevity. Which brings us to the topic of this article: in some cases – suppliers are not keen on disclosing exact numbers – winter tyres outlast the usage cycle of the vehicle they are fitted on. In other words: they are still perfectly usable. A FEW SUGGESTIONS Car dealers, tyre fitters, service centres: everywhere you go, you can see used tyres piling up. Most of them are hibernating, waiting for their season to come. However, some are destined to gather dust, as their owner did not collect them at the end of the

In some cases, winter tyres outlast the usage cycle of the vehicle they are fitted on.

vehicle’s use cycle. In today’s context more than ever, that sounds wasteful – even if we are talking limited numbers. But what are the possibilities in terms of winter tyre reuse, as far as they are not sold with the vehicle and insofar as they are in good condition? 1. Better tyre management: by centralising crucial tyre data – storage location, specifications, mounted on rim or not, etcetera – and keeping track of their condition as the vehicle is used, it should be feasible to reuse a set of winter tyres of a defleeted vehicle on a vehicle that is still in fleet. Every time an intervention is performed on the car, its tread depth can be updated in the database. 2. Negotiate a buy-back arrangement: have your supplier buy winter tyres back at a predetermined percentage of the sales price, depending on the tread depth that is left. This way you can lower the TCO and make sure the tyres get a second life, making optimum use of resources. Of course, there are some side notes to be made. First of all: even though the legal requirement may be lower, with a tread depth of less than 4 millimetres a winter tyre’s performance deteriorates considerably. Second, rubber degrades as it ages. OEMs recommend to replace tyres six years after their production date, which is indicated by the DOT number on the sidewall. Finally, reselling used tyres to the supplier may raise compliance issues. You could also consider all-season tyres as a cost-saving and ecological alternative for two sets of wheels – one for winter, one for summer. But that is another discussion.

FLEET EUROPE #82

OVER

MILLION TYRES SOLD PER YEAR

3,300

POINTS-OF-SALE

COUNTRIES

1,700

COVERED

INDEPENDENT TYRE DEALERS

POINT S, YOUR GLOBAL TYRE AND AUTO SERVICES PROVIDER CONTACT US ! contact@points-development.com / www.points-development.com

6-8 June I The Hotel I BRUSSELS Join managers from the world’s largest multi-national commercial fleets who have global and/or regional fleet responsibilities for dedicated training, networking and education.

conference.globalfleet.com

ANALYSIS

Bigger, smarter and defying convention Dieter Quartier @DieterQuartier

Tyres represent anything between 4 and 8 percent of a car’s TCO. How has this evolved in recent years? And which factors play a role in this change? We asked tyre fitters, leasing companies and tyre manufacturers.

HIGHLIGHTS • Tyres represent between 4 and 8% of the TCO • Higher tyre costs due to bigger tyre size • Competition and price pressure on tyre market • Timing is crucial in cost management • Connectivity will drive tyre business • All-season tyre is a compromise

“First of all, we indeed see an upward evolution in the OEM’s tyre size, which results in higher tyre costs”, says David Kiesgen, Senior Manager, LeasePlan Supply Services AG. “To counter this, some manufacturers offer more moderately sized wheels on the typical fleet models. Secondly, the price of tyres depends on the cost of raw materials and thereby the oil price. That is not to say that manufacturers have lowered their tariffs now that the oil price has dropped.” Markus Leinemann, Head of International Key Account Management at Volkswagen Financial Services, sees the same price stability: “From our experience, the tyre costs have remained stable the past five years, because the market is under pressure. Premium brands have to defend themselves against upcoming sub-premium manufacturers, which are convincing customers looking for value-for-money.” TIMING IS OF THE ESSENCE Jean-Philippe Renwick, Procurement and Partnership Director at ALD International, invokes yet another element: “Keeping

tyre costs at bay is basically a matter of getting the timing right. Replace the tyre too soon, and you are wasting tread and therefore money; too late, and you are compromising the driver’s safety. A good tyre management with regular tread check-ups is therefore crucial in keeping the costs down – and maximising safety.” In other words, proactivity is key. Contacting the drivers to make an appointment in the shop to have their winter tyres switched back to summer tyres, for instance. Many people continue to drive on their winter tyres until late spring, causing excessive wear. A winter tyre has softer rubber, meaning that they warm up too quickly as soon as temperatures rise above 7°C, virtually ‘melting’ away on the tarmac and causing excessive rolling resistance. As a side remark: driving 10.000 kilometres more than provided in the lease contract, may mean that you need an extra set of tyres at the end of the car’s cycle, leading to a tyre cost that is suddenly much higher. In trying to avoid this cost, the leasing company could for instance

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ANALYSIS

ask the customer to keep on driving on its set of winter tyres just a few weeks longer to avoid having to acquire a new set of summer tyres – which in some cases will be charged to the customer. CONNECTED TYRES When asked which trend will revolutionise the tyre industry, Bridgestone’s Senior Manager for Strategic Accounts Development Philippe De Smet points at connectivity: “Connected tires hold significant business opportunities for fleets. We are strongly investing in the collection of vast amounts of consumer data to gain insight into driving behaviour and the environment in which tyres operate, and feed these consumer insights straight into the product development process. Also, by sending direct input on pressure, temperature, wear and road conditions from the tyre to the car’s on-board computer, safety systems can be adapted.” Fabien Bouquet, Chief Executive Officer at tyre and maintenance service provider Point S: “We see that telematics are gaining momentum. On board data collection and communication allows for a better follow-up and a better operational fleet management. For us, this is an important subject and we are working on tailor-made solutions, offering customers clear advantages in running their fleets.” REUSING WINTER TYRES Few subjects appear to be as touchy as the reuse of winter tyres of an off-lease vehicle. The suppliers’ approach seems far from proactive – for evident commercial reasons – yet some of them appreciate their customers’ desire to maximise cost control. “Under some agreements we buy half-used winter tyres back from our customers, but we do not resell them to customers ourselves as this does not part of our commercial strategy. These tyres end up on the used tyre market, in which we are not active”, says Olivier Renard, Marketing and Procurement Director with Auto 5. Most leasing companies sell the winter tyres together with the vehicle, especially

FLEET EUROPE #82

All-season or all-weather tyres are and will remain a compromise, but manufacturers are finding ever better ways to reconcile performance contradictions.

in countries where they are a legal obligation. “In some other countries, tyres are sold back to the fitters. Sometimes we reuse winter tyres to satisfy a customer’s need for a budget-friendly solution, for instance when a car is near the end of its leasing period”, says David Kiesgen from LeasePlan. Setting an example in this area is Norauto: “Our tyre management system allows us to tell a customer which winter tyres for which vehicle are where and in which condition they are”, according to B2B Director Paul Scandella. “This makes it possible to reuse a specific set for a different vehicle than the original one, provided that the technical specs match.”

ANALYSIS

THE COMPROMISE CALLED ALL-SEASON There is no denying that all-season or allweather tyres are in the spotlight. They are not new – American drivers have been using them for decades, but the product has clearly evolved away from the poor compromise it used to be. Make no mistake – it still is and will remain a compromise, but manufacturers are finding ever better ways to reconcile performance contradictions, allowing them to extend their offer from the small car towards the midsize segment. Pascal Fontaine, Market responsible Tyres at Norauto: “Almost all brands are promoting all-season tyres, creating demand amongst both private and fleet customers. We have seen a significant growth in all-season tyre sales, but the segment is relatively small. Many customers take an abiding attitude. All-season tyres are even a non-issue in the ‘white’ regions, where winter tyres stand their ground – and rightly so. There is no substitute for winter tyres in cold climates.” Fellow-countryman Fabien Bouquet from Point S concurs: “All-season tyres may give drivers the false impression that they are adapted to even the toughest driving conditions – which they are not, according to the first tests. Our professionalism imposes us to put customer safety first and so to advise the alternating use of summer and winter tyres.”

Few subjects appear to be as touchy as the reuse of winter tyres of an end of lease vehicle.

Paul Scandella from Norauto points at another safety advantage of a double set of tyres: “The biannual tyre change allows you to perform an intermediate vehicle check-up, possibly preventing a defect from evolving beyond repair and avoiding higher costs. There’s the safety aspect, too. A simple tyre pressure check, for instance, can make all the difference…” MORE OR LESS FIRM BELIEVERS In reply to our question whether all-season tyres are a safe, cost-saving and ecological alternative for fleets in countries with mild winters, Goodyear Dunlop stated: “Fleet customers in those countries will look for the best value option considering safety, cost efficiency and durability. Goodyear has a strong portfolio of all-season products that we believe offers fleet customers a choice in the market place.” Bridgestone takes a more reserved stance. “We see an increasing demand, with winter tyre regulation and the green winter effect being main drivers. All-season tyres will never replace the high performance winter tyre (snow, ice,…) or high performing summer tyre (high speed, cornering…), but can certainly be a good solution for the undemanding driver, subject to his driving needs and how he is confronted to winter conditions”, declared Gert Meylemans, Head of PR and Corporate Coms Europe. A similar answer was given by Alexander Bahlmann, Continental’s Head of Communi-cations & Public Relations Passenger & Light Truck Tyres: “For some customers it is an option/alternative for many others the regular change from summer to winter and back according to the weather conditions and national laws is the safest and therefore best way to go.” Michelin, which has invested a lot in its Cross Climate, does not position their all-season product as a substitute for summer plus winter tyres either, for that matter. Their tyre leans more towards the former than the latter, boasting an acceptable C label for fuel consumption and an excellent A for wet braking, but the manufacturer underlines that it “offers benefits to fleets which normally only use summer tyres and wish to provide their drivers with more security for the occasional winter driving conditions.” And that says it all… FLEET EUROPE #82

ADVERTORIAL

CONCEDED EDITORIAL SPACE

Bridgestone DriveGuard: safety and comfort for everyone 1

A run-flat tyre that is no longer restricted to certain car models or brands and that resists both tread and shoulder punctures – without sacrificing ride comfort? It’s available now, and it’s called Bridgestone DriveGuard. One of the major assets of this “game changing innovation” for the enduser is that, unlike other run-flat offerings, it does not require a tailor-made chassis and damping set up or special rims. Moreover, it is available in a wide array of sizes, covering the majority of all TPMS-equipped passenger cars available on the European market.

Thanks to the reinforced sidewalls, DriveGuard allows you to reach the next tyre centre – even when fully deflated.

Another differentiator is that DriveGuard resists punctures not only in the tread, but also in the shoulder of the tyre, unlike other mobility systems. Yet, its reinforced sidewalls do not compromise the ride quality, neither in terms of dynamic performance, nor as far as comfort and noise levels are concerned. Bridgestone has put a lot of R&D effort into this area, making it a Unique Selling Proposition. THE REASSURANCE OF NOT BEING STRANDED According to the manufacturer, 60% of all drivers has experienced a puncture in the past four years, leading to potentially dangerous situations and lost time of up to 3 hours. Bridgestone DriveGuard eliminates the risk of being stranded, as you can keep driving for up to 80 kilometres at a speed of maximum 80 km/h – even with a fully deflated tyre.

Unlike some other mobility systems, DriveGuard is resistant to punctures in the shoulder area, too. 1

In other words: DriveGuard avoids the immediate burden and unsafe circumstances of a flat tyre because it allows you to reach the next tyre service centre, contributing to a

premium customer experience and saving precious time. Also, as you don’t have to call for roadside assistance, the company saves operational and internal administration costs. SAFE AND GREEN Regardless its dimensions, DriveGuard boasts excellent European tyre label values. Its excellent A value for wet braking indicates that DriveGuard is a no-compromise tyre. Also, independent research by TÜV Süd 2 demonstrating that Bridgestone DriveGuard ranks highly in performance categories that are important to drivers, such as wet safety, placing DriveGuard at the frontline of road safety. In most cases it gets a C for rolling resistance. Moreover, DriveGuard eliminates the need for a spare tyre, not only requiring less natural resources and materials but also reducing the vehicle’s weight and thereby contributing to a lower fuel consumption. Finally, DriveGuard does not require special recycling procedures – unlike some other mobility solutions. CONVENIENCE FOR ALL Bridgestone DriveGuard is not limited to specific makes or models and does not require special rims. It can be fitted to most any passenger car that is equipped with a Tyre Pressure Monitoring System – a device that became mandatory for new vehicles sold in the EU as of November 2014. This means that in 2016, 32 million customers can benefit from the many advantages that DriveGuard offers. Bridgestone’s innovative tyre is available in sizes ranging from 185/65 R15 to 245/40 R18, both in winter and summer livery.

Currently not available for vans. Only for cars equipped with a Tyre Pressure Monitoring System (TPMS). For more details please visit www.bridgestone.co.uk/driveguard TÜV Süd report: Bridgestone DriveGuard ranks high in following criteria compared to competing tyres: straight hydroplaning, lateral hydroplaning, dry braking asphalt and lateral wet grip and at par Test data and results are available on request directed to Bridgestone Europe.

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MANAGEMENT

Awards – More winners wanted Tim Harrup @Tim_PREbe

HOW TO APPLY For more information on the Fleet Europe Awards 2016, and to become a candidate, please see the Fleet Europe Forum and Awards website forum.fleeteurope.com or directly contact Steven Schoefs: sschoefs@ nexuscommunication.be Following your approved application, you will receive questionnaire to be filled in. Later, candidates present their cases to the jury, face to face.

It is just 5 months ago, in November in Rome, that we crowned best fleet management practices in Europe. Today, we are starting the journey to find the 2016 winners of the Fleet Europe Awards. Who will become the successors to distinguished fleet managers like Christian Also Lindskov, Montse Empez Vidal or Jean Zermati… why not you? There are three categories of awards for fleet managers: International Fleet Manager of the Year, Large and Medium Fleet, Smart Mobility Management Award, International Fleet Safety Award. The awards are open to individual persons or teams.

Fleet suppliers have not been forgotten. There is a special award category ‘International Fleet Industry Award’, for new products and tools that contribute to the optimization of fleet management. This is judged by a jury of fleet managers only.

To ensure that judging is of the highest possible standard, and by people who know about fleets, the jury is made up of corporate fleet managers, fleet suppliers and Fleet Europe representative.

Then there is the International Fleet Hall of Fame 2016, which recognizes the achievements of a true fleet professional who has contributed to the profession of fleet management. This is decided by Fleet Europe readers. And for the first time there is an award dedicated to start-ups, the Smart Mobility Start-up Award which celebrates start-ups that have developed an innovative tool or service with regard to vehicle fleet and mobility management. Four conditions to become a candidate for this award: 1/ Being a company with a high potential growth, 2/ using new technology, 3/ requesting for massive financial funding and 4/ being in a new market where the financial risk is difficult to evaluate.

Like the 2015 winners, apply to have the opportunity to go on stage.

Don’t forget, none of the previous winners of these prestigious awards believed they would win until they heard those magic words: ‘The winner is…’. But all of them gained added recognition in the fleet world, in their sectors and in their companies. So it really could be your turn… FLEET EUROPE #82

DECISION-MAKERS WANTED

With Autonomous Follow Assist. The Adaptive Cruise Control in the Opel Insignia* not only maintains the speed you set but also automatically keeps the selected distance to the vehicle in front. This innovation transforms your Cruise Control into an Autonomous Follow Assist. You decide where you are going, the Insignia does the rest.

The Insignia. The decision-maker’s choice. *Fuel consumption combined 8.3–3.8 l/100 km; CO2 emissions combined 194–99 g/km (according to R (EC) No. 715/2007). Picture shows optional equipment.

MANAGEMENT

“ The biggest change is still ahead of us” Steven Schoefs & Frank Jacobs @StevenSchoefs &

Was it written in the stars that Mike Masterson, the newest entrant into the International Fleet Hall of Fame, would have a brilliant career in automotive? Perhaps his origins in Coventry, Britain's 'Motor Town', were telling. But the CEO of ALD International is much more than a motorhead: he loves rugby, Shakespeare and music, and knows how to make a mean coq au vin. A portrait of the man behind the CEO.

@FrankJacobs

That being said, Masterson still clearly remembers his very first car: “A Ford Escort, with spoilers. It looked nice. And the engine had been reconditioned. Nowadays, I commute to the office (in Paris, where he lives with his wife and daughter. His two elder sons live in the UK, ed.) I drive a Jaguar Land Rover Discovery Sport. Land Rover is an ALD partner. And they're based around Coventry, so that's a nice link: whenever I meet with them, I get to go back to my home town.” PWC BIRMINGHAM Coventry used to be the UK's answer to Detroit, with plenty of car (and motorcycle) plants dotting the city. “When I was at school, they insisted that we study sciences, to prepare us for jobs in the motor industry. But I wanted to do business and history instead of physics and chemistry. They weren't happy with that. But it turns out they didn't take into account the decline of the industry. The Peugeot plant closed, as did others.” Instead, Mike Masterson went to work as a chartered accountant, for PricewaterhouseCoopers in Birmingham, where he met his wife. He then moved to Hertz – the only time he actively switched jobs. The rest of his 28-year career in fleet, he was the right man at the right time and place. FLUENT FRENCH “I joined Hertz in 1988, when they purchased Axus, a group of leasing companies.

They asked me to integrate Axus into Hertz. So when Hertz split into a leasing and rental group, I of course went with the leasing company. So I was working for the French leasing subsidiary Axus France when Hertz Lease was acquired by Société Générale in 2003.” Already fluent in French, Masterson was asked to become Group Finance Director – for family reasons, he obtained that he could do the job from the UK. But when he was offered the CEO role in 2011, the family was happy to move to Paris: the two sons stayed to study and work in the UK, the daughter came along to study French. KEY POSITIONS “In my first year as CEO we replaced about 10 general managers out of 40 subsidiaries. My one regret? That we didn't change some people sooner. The most important thing is getting the best people in the key positions – whether in the significant subsidiaries or in key positions at head office. After that, strategy is important, and being able to present and explain strategy.” In that respect, Masterson is keenly aware that his long service, and that of his core collaborators, is both a strength and a weakness: “If you think you know everything already, you're not ready for change and innovation. But the status quo must be challenged continually, the business model must evolve. We're lucky to have managers with both long experience and the FLEET EUROPE #82

MANAGEMENT

RUGBY, SHAKESPEARE & COQ AU VIN I like football, cricket, rugby. For the sake of sport, but also because I like to win. If I don't win? Let’s say it’s only a motivation to do better next time (laughs). I prefer rugby, because it is less money-oriented, more about camaraderie, team spirit, appreciation of a good performance, also of the opposite team. That's a good lesson for business as well. The International Fleet Hall of Fame Award is quite heavy – I had to carry it around in Rome all night! Mike Masterson, CEO of ALD International, is newest entrant into International Fleet Hall of Fame.

innovative instinct. We believe in empowering our people – so when we do ask something of our subsidiaries, they know it's important. ALD is noted for that positive atmosphere, also within Société Générale. And that positive atmosphere is my biggest achievement as a CEO, if I may say so.” FUTURE IS DIGITAL Empowerment is crucial to respond to the challenges of the future. When Masterson started out, 28 years ago, “we managed 30,000 vehicles across 5 countries. Now it's 1.2 million in 41 countries. That consolidation is industry-wide. But the biggest changes are still ahead of us, not behind us. Everything that can be digitised, will be digitised. That presents huge challenges.” How so exactly? “Digitisation will completely change the driver experience. It has huge implications for the dealer network, and everyone in the supply chain. There FLEET EUROPE #82

will be a convergence around full-service leasing to corporates and private lease to invidivuals – driven by changing consumer preferences as much as by fiscal changes. Automated cars? That's a bit further down the road.” Talking about down the road: how long does Masterson see himself in the CEO chair? “I don't know. I wouldn't like this job if I lacked the energy and drive. I feel energised, so it's not an issue”. Whenever that day comes, what advice would he have for his successor: “Treat everyone as if it's the first time you meet them, even if they have been unpleasant, argumentative or opposing in the past. Have an open mind. That surprises people, and has positive results. But there is also a flipside: don't assume that people who made the right decisions in the past will also be right in the future.”

Coventry is quite close to Stratford-upon-Avon, where Shakespeare was born. I regularly go to the theatre there. I like classical music and opera, but also rock. I'm too old for Glastonbury and other festivals, but I'm lucky that Paris attracts plenty of the international bands. The best way to see them is in small venues, standing, with a beer in your hand. My favourite dish to cook is coq au vin. My secret is making a rich sauce, which is not the traditional French way.

MANAGEMENT

Tech, Green and Economy at Global Fleet Conference 2016 Steven Schoefs @StevenSchoefs

Registration for the Global Fleet Conference, organised by Nexus Communication and Bobit Business Media, is now live! The event will take place from 6 to 8 June in the iconic The Hotel in Brussels, Belgium. Economics, the environment, technology and attention for regional fleet management practices are the main themes of this year's Conference. It's the fourth edition of what has proved to be a very successful formula, bringing together fleet managers and fleet stakeholders from around the world, to learn about the newest technologies and practices in their field, and to network with each other. Specific sessions at this year's event will deal with the global economic outlook, fiscal and regulatory changes, a fleet perspective on the Paris Climate Change Agreement, how to defeat resistance to telematics, and what to expect from autonomous vehicles. There will also be sessions on how to deal with global fleet suppliers, and on the particulars of certain regional markets, like Asia Pacific and Latin America. Register before 15 April, and you'll enjoy an early bird rate. But don't wait that long: previous editions have drawn capacity crowds. If you want to be sure of your spot, register now via www.globalfleet.com/conference! FLEET EUROPE #82

The Global Fleet Conference is the only dedicated forum for global fleet managers. The fourth edition will take place in Brussels, from 6 to 8 June.

5 REASONS WHY TO ATTEND The Global Fleet Conference is the only forum designed specifically for execs from the world's largest multinational commercial fleets, and their regional and global responsibilities.

How to implement policy and how to report its implementation; and much more. The attendees will be able to interact via Q&A sessions.

The quality of content is commensurate to the high level of the participants, with in-depth presentations, case studies and panel discussions by fleet industry heavyweights and experts, on topics ranging from global issues to specific regions, and from current problems to future solutions.

The event will draw the creap of the crop in the global fleet industry. This literally is this industry's best networking opportunity on the planet.

The Conference will tackle vital subjects such as: Creating global fleet efficiency; Fleet management in emerging regions; The impact of technology, alternative mobility and connectivity;

The mix of presentations, discussions, networking and personal meetings is also an opportunity to benchmark your own policies and efforts against the best practices of others in your field.

MANAGEMENT SESSION HIGHLIGHTS TUESDAY 7 JUNE

SESSION 1 – GLOBAL ECONOMIC OUTLOOK 2016 •T he impact of the global economic outlook on global fleets •A global perspective on car fleet trends •G lobal Fleet Survey 2012-‘16: key fleet management evolutions in global fleet management SESSION 2 – FISCAL AND REGULATORY CHANGES •C hanges in company car taxation, and their effects on fleet decisions •F rom Fleet Management to Mobility Management and Private Lease •N ew Lease Accounting Standards: the impact on global fleets

MEETING GLOBAL FLEET ADVISORY BOARD (for corporate fleet customers only) MONDAY 6 JUNE

15:30 – 17:30 • Presentation of the results of the Global Fleet Survey 2012 – 2016 and Beyond • Sharing best practices on global supply management and fleet management optimisation

SESSION 3 – CLIMATE CHANGE AGREEMENT • What does the Paris Climate Change Agreement mean to you? • Fuel trends and fuel networks •A lternative powertrains: how, when and what to implement •D eveloping a comprehensive TCO model for electric vehicles SESSION 4 – TECHNOLOGY TODAY AND TOMORROW •P ART 1: How to defeat resistance to Telematics • PART 2: Autonomous vehicles by 2020

WEDNESDAY 8 JUNE SESSION 5 – GLOBAL FLEET SUPPLIERS •Y our car fleet suppliers: their global presence and strategy •L easing analysis: the implications of market consolidation • Preferred Global Supplier or Local Hero? SESSION 6 – GLOBAL FLEET, REGIONAL FOCUS • U.S. vs. Rest of the World •A siaPacific: India, China, Philippines, Singapore, Malaysia and South-Korea •L atAm: much more than just Mexico and Brazil

THE Conference for international fleet executives to learn, share and network.

COLOPHON EDITORS Steven Schoefs – Chief Editor sschoefs@nexuscommunication.be Antigoni Vokou – Journalist avokou@nexuscommunication.be Céline Gilson – Project Coordinator cgilson@nexuscommunication.be CONTRIBUTORS Frank Jacobs, Dieter Quartier, Tim Harrup, Jonathan Manning, Jean-François Christiaens EXPERTS Robert Boscari and Tony Elliott

SAVE THE DATE

The Global Fleet Summit Turkey offers the perfect platform to identify key elements in today and tomorrow’s Turkish and international fleet environment. Tendering, reporting, sustainability & safety, international versus local influence, car policy evolution, and upcoming trends & technologies will be on the agenda of this regional Fleet Summit in Istanbul. When? The 2016 edition will take place from 20 September to 22 September at Intercontinental in Istanbul. > More information and registration via our website summit.globalfleet.com

Layout: Hungry Minds info@hungryminds.com FLEET EUROPE www.fleeteurope.com Fleet Europe Magazine @Fleet_Europe FleetEurope SALES & MARKETING David Baudewyens – 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 Aline Verpoorten – Internal Sales Assistant averpoorten@nexuscommunication.be Virginie Emonts – Sales and Marketing Assistant vemonts@nexuscommunication.be FLEET EUROPE Fleet Europe is published by Nexus Communication SA Parc Artisanal 11-13, B-4671 Barchon T +32 4 387 87 71 - Fax +32 4 387 90 63 contact@nexuscommunication.be Fleet Europe is registered and copyrighted trademark. Reproduction rights (texts, advertisements, pictures) reserved for all countries. Received documents will not be returned. By submitting them, the author implicitly authorizes their publication. PUBLISHERS Caroline Thonnon – CEO & Head of Business Development Thierry Degives – CEO & Managing Partner

DOSSIER

Qui audi consecto officipite volupta Business? Itâ&#x20AC;&#x2122;s a pleasure! The Hyundai i40 digenient Jonathan Green @JonathanGreen

In nonsequi dolorerit, quate peditas sitiaspelit officitius volendunt quam vollupta vent dis cus eatione mporerro mi, con et quamus quunti dis ut aut et rerro mo blacientis estia eumquibus simpeditior reribus, simil moluptur, con nulpa coriberibust eosae porrunduci unt es sandaecea dolum veroreiustia nihil moluptatia videl ipsanit quatur molorro vitincte optasita parias dolupta consendis estiorem ullaboreri conserro idende velendi volleca errore. Que esti consect intiscit asint odiorae officip iendit et, im quidust, invelestrum rerchit volliqu untotatium faceaquaest haribus sinctemporia di faccae. Nem rerovit ex estio. Nem sant aut mi, Fictur ab ipsapit hicienectio. Atem eatatatur alit ut quat maximetur simpers perrovit, sunt aperepudae consed quam, tem in rem sedi dollaceaquis acipsus dantiis dio maxim rero beris alique ditibusa in ni anderferum qui vendaep rovita consequi nobis eumquam re cus praepudia venem cus dolupta sinciuscil invendis quuntiunt harum niscipsusdae nitatin ctiasim poresentium nonsedissin re eaqui vel ipsum facea ium quiatur?

De ipsum, iurepud ipsae. Porentur? Quia volest qui sunt abore, ipsunt qui del is ad que nobisci llitatiassi bernati atiatia nimperciet doles ratecul loremqu amusam, coraessi occullique corpore placeatur? Qui audi consecto Inspiring design. Welcoming comfort. Advanced technology. The i40 Wagon Temquo ventibus arum esequi venem es officipite volupta delivers everything a driver could wish for, including the sophistication dollendera ipit quam quo culparum, sus of a digenient 7-speed dual-clutch transmission and a Lane Departure Warning ipsapide doloreh enimill essitam reniscitam quam, System. Whatâ&#x20AC;&#x2122;s in it for you? The reassurance of competitive pricing, low pudicatem quiIn sinihicia antem dolum This is as operating costs and high residuals. theque carsunture that makes business a nonsequi dolorerit, quate peditas sitiaspelit offipleasure. The Hyundai i40. Expect more. fugiae re eos aut fuga. citius volendunt quam vollupta vent dis Cuptas evelignam, sitae. cus eatione mporerro mi, con et quamus

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Combined fuel consumption for the i40 range: 4.2 - 7.5 l/100 km. Combined CO2 emissions for the i40 range: 110 - 176 g/km. The 5-year unlimited mileage warranty tis estia eumquibus simpeditior reribus, is valid in all EU member states + EFTA. Warranty is subject to local terms and conditions. For taxi or rental usage model specific restrictions apply. For more information, visit www.hyundai.com/eu

FLEET EUROPE #82