Fleet Europe °83

WWW.FLEETEUROPE.COM

FOR INTERNATIONAL FLEET AND MOBILITY LEADERS

STEVEN HARTEVELD

#83

05/2016

DAAN BIELEVELD

(CSC)

(DSM)

FACE TO FACE Nexus Communication - Fleet Europe #83 - Periodic magazine - May 2016 - Deposit Office Liège X

“Choose the right fleet battles”

SPECIAL 20 PAGES

ANALYSIS

MANAGEMENT

Your Insurance programme

The Tendering exercise

SHARE

the road and the car

MORE SPACE TO DRIVE YOUR BUSINESS FORWARD THE SEAT LEON ST

TECHNOLOGY TO ENJOY The SEAT Leon ST is the perfect partner for your daily business activities. It has a boot capacity of 580 litres and has been designed to offer the driver maximum comfort. There is enough space and technology to fulfil your functional needs whilst also providing a relaxing and enjoyable environment on any road.

BOOT CAPACITY

EASY CONNECT INFOTAINMENT

DRIVING ASSISTANCE SYSTEM

With 1470 litres of potential boot space when the seats are folded, this car has the capacity to help streamline your daily activities.

Being in touch on the road is sometimes a necessity and this intelligent technology ensures it’s always possible, its compatible with Apple CarPlay™, Android Auto™ and Full Link.

To ensure safety in every situation the SEAT Leon ST comes with Lane Assist, Adaptive Cruise Control and a Tiredness Recognition System.

SEAT FOR BUSINESS Average fuel consumption from 3.6 to 6.0 l/100 km. Average CO2 mass emissions from 94 to 138 g/km.

FOLLOW US ON:

SE AT.COM

CONTENT INTERNATIONAL MOBILITY APPROACH

5-27 DOSSIER SMART MOBILITY

By 2020, Millennials will have taken over the work floor. They'll approach work, life and the balance between them in an extremely flexible way. So get ready for flexible working – and flexible mobility!

CAR SHARING is the Future of Mobility. The complete Guide and all the B2B Initiatives

Fortunately, the options are increasing.

More and more suppliers are launching mobility services that are flexible and intelligent, while still car-centred.

Take car sharing: highly developed and specially adapted to corporate use, especially for those employees not eligible for company cars. As we move from Total Cost of Ownership to Total Cost of Mobility, car sharing is an excellent way to maximise company car utilisation.

There is a but: relevant taxes, legislation and infrastructure are still national.

We need an international framework if car sharing is to become relevant on a transnational scale. Climate change is a good analogy: local schemes are useful, but genuine change – and bigger benefits – can only come from an international approach.

Steven SCHOEFS Chief Editor

28-33

34-39

50-61

FACE TO FACE

INNOVATION

ANALYSIS

Daan Bieleveld – DSM & Steven Harteveld – CSC

Self-driving cars change insurance costs

Which insurance suits best

INNOVATION

New technology drives down costs…………………………………………………………………………………………………………34 Less road accidents with autonomous driving………………………………………………………………… 36-37 A mix of technologies makes cars driverless…………………………………………………………………… 38–39

REMARKETING

How extended warranty impacts RV………………………………………………………………………………………… 40-41

BUSINESS

Meet with Wolfgang Stahl, Opel Europe………………………………………………………………………………………… 44 3 questions to AlessandroPigazzi, Arval…………………………………………………………………………………………… 45 DS Connectivity optimise drive times……………………………………………………………………………………………… 46

EXPERT

Lukas Neckermann on car sharing……………………………………………………………………………………………… 48-49

20 TO 21 SEPTEMBER

2016 GLOBAL FLEET SUMMIT Istanbul

SHARE YOUR THOUGHTS ABOUT THE NEW FLEET EUROPE MAGAZINE

ANALYSIS

Calculate true insurance costs…………………………………………………………………………………………………………………………50 The benefits and limits of self-insurance……………………………………………………………………………… 52–53 Pan-European premiums vs state rules………………………………………………………………………………… 54–55 Focus on the causes of accidents…………………………………………………………………………………………………………………… 56 The right comparison………………………………………………………………………………………………………………………………………………… 58 Driven to distraction…………………………………………………………………………………………………………………………………………60-61

MANAGEMENT

Discover the 10 steps of tendering………………………………………………………………………………………………… 62-63 Fleet Europe Awards 23016 : your Award to win………………………………………………………… 66-67

SIMPLY CLEVER

MEET THE NEW EMPLOYEE OF THE YEAR

Combined fuel consumption and CO2 emissions for the Superb model: 3.8–7.2 l/100 km, 100–165 g/km.

The New ŠKODA Superb.

The mighty and the elegant, the joyful and the intelligent - the new ŠKODA Superb. In both Limo and Combi versions, the new Superb boasts a unique body shape, class-leading spaciousness and dynamic curves, making it a true flagship of our range. And given its cost-effective operation, modern technology, low emissions and beneficial fleet offers, you are about to meet one of your most efficient and reliable employees ever. skoda-auto.com

facebook.com/skoda

SMART MOBILITY

The future will be shared The 21st century saw the breakthrough of the circular economy and on-demand services.

Mobility is going to be shared, convenient, autonomous and green.

Why? Because time has come and we’re ready for it. Also, the sharing mentality is essential to the global thinking of Generations Y and Z. Car sharing is clearly the future.

It is the smart mobility alternative to the classic company car scheme, providing employees with safe and convenient transport, enabling them to be more productive and helping companies project a climate-friendly image. Today, the European car sharing market is estimated at over 5.5 million users.

It is up to you as fleet manager to make the right choices and align your employees’ mobility needs with the solutions available.

In this dossier, find all the smart mobility opportunities out there and seize them!

FLEET EUROPE #83

5

SMART MOBILITY

Mobility-as-a-Service is the Business Model Martyn Briggs, Industry Principal Mobility at Frost & Sullivan.

In densely populated cities such as London, Paris, and Berlin we are already seeing a mode shift away from private car towards more sustainable, alternative mobility options.

The transportation market is witnessing a transformation, underpinned by new technology led services that give customers the opportunity to access transport services on-demand through platform based systems, which in many cases is challenging the need to own or lease private vehicles.

This network of mobility services is more than just public versus private transport.

A combination of the attractive urbanised environments, changing social preferences from users (away from car ownership to usage), and the opportunities posed by new platforms, especially on the smartphone, are converging to facilitate a shift from single mode transportation and limited alternatives, to a flexible, multi-modal integrated set of mobility options.

RACE FOR MOBILITY My view is that considering alternative mobility business models individually can present an interesting case for product development and investment, for example the Car sharing market has grown at 40% CAGR from 2010-15 and is not slowing down. But only when combining this with other parts of a wider transport system the benefits increase exponentially and have the most potential for behaviour change. Being able to plan your journey, book the preferred service, and pay for that through one outlet is the aspiration of several companies and governments globally, and not just from the traditional mobility providers.

With the rapid development of services such as app based services from Citymapper, Moovit, Moovel and the changing regulatory environment towards MaaS from countries such as Finland, Netherlands, and the UK, we are about to witness a global race to deliver this marketplace for mobility.

INTEGRATED MOBILITY DEFINITION Technology enabled, any device delivery of real-time, door-to-door, multi-modal travel

6

encompassing pre-trip, in-trip and post-trip services bringing Convenience, Time & Cost Savings to the Mobility User (Graph1).

THREE CAR SHARING BUSINESS MODELS There are already several well established alternative mobility business models present in Europe, some with an already significant scale and most with a relatively untapped potential ready to exploit. We expect three distinct car sharing business models to eventually converge in future, something that is already being tested by ReachNow (the US version of Europe’s DriveNow from BMW/Sixt) bringing together traditional, peer to peer, and corporate models, but also adding ride hailing/chauffeur and ridesharing options to customers through the same platform.

Whilst the European car sharing fleet accounts for just 50,000 vehicles today, in a market expected to rise to ~250,000 by 2020, already that is 2.5m-3.75m cars removed from the road in Europe assuming the model continues to develop and member behaviour continues on this trajectory. However it is rarely one mobility service that has led to reducing car ownership, it is a combination of factors (demographic, social, economic and what alternatives are available) which are converging to deliver this paradigm shift in mobility.

The scale of which can be achieved from developing alternative mobility business models depends on multiple factors – in particular the policy environment, investment and product development, as well as the behaviour change of users. As customers change their travel planning and attitudes to transport to be more reliant and comfortable with accessing multiple modes on demand and trusting the safety net of mobility as a service as opposed to private car ownership, we will see the traditional ownership model challenged.

FLEET EUROPE #83

1

The potential services that could become offered as an Integrated Mobility as a Service platform.

Copyright: Frost & Sullivan.

2

There are well established alternative mobility business models present in Europe, some with a significant scale and most with a relatively untapped potential ready to exploit, also by corporates.

Copyright: Frost & Sullivan.

FROM SHARED TO BUSINESS MOBILITY IN EUROPE New Shared Mobility models are increasingly becoming corporate, creating new use cases & partnership potential. This is creating high growth opportunities for OEMs and commercial fleet sectors (Graph2).

short term it provides them with a great tool to show innovation in tendering for new contracts, and differentiated from competitors in a largely commoditised market of leasing, which provides a hook for business development and how to manage an increasing share of corporate mobility.

MOBILITY AS A STRATEGIC PILLAR Already today many OEMs captive leasing and financial service arms are developing new mobility business models – indeed Volkswagen Financial Services and Alphabet (BMW Group) include Mobility in their marketing straplines now, and all the major leasing firms are developing Mobility as a strategic pillar of their portfolios, through corporate car sharing, integrating mobility with their fuel cards, and testing new peer to peer sub-leasing/fractional ownership concepts. Ford Credit Link is just the most recent example. There are several reasons for this – strategically it’s understanding that customer needs are changing towards flexible access based solutions, but in the

Several cities are moving in this direction – London, Hamburg, Helsinki, Copenhagen are early examples, with whole countries in future will be looking to adopt mobility policies. The exciting short term output of this exploration is the aforementioned new mobility business models listed above, which are enabling these companies to shift from manufacturing products to providing mobility services, especially vehicle manufacturers and fleet operators. That said, the future of the car is not doomed in cities – technology is just allowing it to be reinvented and offered to customers in changing number of service-led solutions.

FLEET EUROPE #83

CAR SHARING FLEET

50,000 IN 2016

+ 250,000 IN 2020

7

MY ALD NEW APP YOUR TIME IS MORE VALUABLE THAN EVER: USE OUR I N N O VAT I V E M O B I L E A P P L I C AT I O N TO P R O V I D E C O N T I N U O U S C ONNEC T I V IT Y BE T W EEN YO U R DRI V ERS A ND A LD AU TOMOT I V E .

ALDAUTOMOTIVE.COM

SMART MOBILITY

Smart + Green = Cost Efficient Antigoni Vokou @Antivokou

Car sharing is about much more than optimizing your parking options and become eco-friendly. It has many more benefits over the traditional company car. It’s easy (and smart) to use, it’s fiscally interesting, it’s green and it saves time.

1 shared car

SMART USE

GREEN

Convenience is the essence of car sharing: you use the car when you need it. If it’s a free-floating car-sharing service like Daimler Car2go or BMW DriveNow, you can access different types of cars with or without reservation, for an hour or a day, via a customer relations centre, your computer or your smartphone. Registration and payment are simplified by using a single account. You get the invoice afterwards by email. You can unlock the car with a card reader provided when you register or with your smartphone. The service provider is responsible for maintenance, insurance, fuel cost, car tax and even parking. Many of these cars also include innovative technology, keeping employees connected to their office.

Car sharing is by far the preferred scheme for developing a sustainable transport system that reduces pollution, especially in cities. Car sharing makes available newer and more fuel-efficient cars, hybrids or electric vehicles. This significantly reduces the greenhouse gas (GHG) emissions that cause global warming. According to research by Think Young & Goodyear (2015), 50,2% of millennials are prepared to share their car with fellow commuters, and 49,7% are prepared to use car sharing. As car sharing grows, urban congestion and pollution will decrease, as will CO2 emissions and costs linked to insurance and maintenance of vehicles. If, as studies suggest, one shared car can replace five to twelve private cars, then car sharing definitely is one of best tools to improve both mobility and the environment.

= UP TO 12 PRIVATE CARS

85%

of 24-44-year olds prefer CAR SHARING

MINIMUM LESS CO2

39%

FLEET EUROPE #83

PARKING Most car sharers are concentrated in cities, where daily traffic jams, air pollution and lack of parking spaces cause stress and waste time. One main benefit of car sharing is that it eliminates the search for parking spaces, since the cars usually have reserved spots. There are no monthly vehicle charges, employees spend less time in traffic and as a result there is less congestion at peak hours. Also, if one shared car replaces up to ten company cars, imagine how much additional parking spaces this will generate. Let’s not forget that most car-sharing companies provide smartphone apps helping the driver find a parking spot immediately when needed.

TAXES Car sharing offers financial incentives to companies. A study by Millard-Ball (2005) estimates cost savings between 3– 25% for car sharing, compared to car ownership. By developing or joining car-sharing programmes, companies save money on transportation and have annual fiscal advantages. By converting fixed costs into usage fees, car sharing changes the entire economics of driving. Indeed, costs are directly proportional to the amount of time and distance that members drive. Most charges for usage is calculated per hour, per km, monthly or yearly.

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

SMART MOBILITY

Car sharing is forward-thinking Antigoni Vokou @Antivokou

Car sharing is not a trend. It’s a reality, built on care for environment, on the need to decrease corporate cost, on the new reality of mobility and on the mobility awareness of Generations Y and Z. Two forward-thinking international fleet managers, Montse Empez Vidal (Applus) and Jean Zermati (Orange), explain how they see the added value of car sharing.

Orange was one of the first companies to launch a corporate car sharing programme.

Back in 2013, it started with 100 vehicles in three French regions. “In 2014, we extended the pilot to 300 vehicles. Finally, in 2015, we decided to roll out the whole project: our aim is to reach 3,000 shared cars by 2020,” explains Jean Zermati, Group Fleet Manager at Orange and winner of the International Mobility Award 2015.

This means that 1 out of 6 company cars at Orange – for a total of 18,000 vehicles in 2020 – will be shared.

At Applus, Montse Empez Vidal, International Fleet Manager of the Year Medium Fleet 2015, has an internal and non-formalised method of car sharing.

“Within departments and divisions, we are sharing cars that are not assigned to anyone and we have our own internal method of control, with internal daily reporting on who is driving what, what the mileage is, what damages are; etc.”

For Jean Zermati (Orange), fleet managers failing to incorporate a corporate car sharing scheme into their policy are “thinking backwards instead of forwards!”

12

NEW WORKFORCE & ECONOMY The two main factors currently helping to create new corporate mobility models are the expansion of sharing economy and a new employee mentality. Younger employees also have other demands.

FLEET EUROPE #83

As a report of Goodyear EMEA and Think Young attests, half of the millennials confirm they will use car sharing or share their own vehicle, especially in urban areas with high population density. The principle of the sharing economy – or collaborative consumption – is based on an on-demand service exchange, free or for a fee, via an easy rental model usually involving the internet and/or smartphone apps.

Jean Zermati of Orange is convinced the car sector will undergo significant changes in the near future, pushed by developments in the sharing economy. “There will be a change in the automotive industry, as they already have occurred in other domains, thanks to the sharing economy. With our project we had two goals: of course to optimise (i.e. reduce) the fleet size, but also to give more users access to the fleet,” he says.

For Montse Empez Vidal, adopting internal car sharing was business-driven, “since we work on projects and we need to be flexible with the vehicles in both models and required days”.

Car sharing offers another great possibility. It’s an opportunity to include electric vehicles in a corporate fleet. “We estimate one third of the shared cars will be electric by 2020,” confirms Jean Zermati.

SPEED AND INDEPENDENCE A crucial plus for fleet managers to include a corporate car sharing scheme is that it enables them to maintain a large offer of car models. Interesting additional services to car sharing are keyless car access, customised reporting, smartphone apps and mobile websites which facilitate use and access.

“Availability of different models (LCV, 4WD…) and different locations outside main cities, with sufficient guarantees”: those are the main drivers for choosing external car sharing programmes, according to Montse Empez Vidal.

Besides car sharing, ride sharing is also a good option for fleet managers. It also has a significant advantage: it’s not complicated to set up for a company. Says Jean Zermati, who includes a ride-sharing offer

FLEET EUROPE #83

“Flexibility with corporate car sharing vehicles is essential for success”, says Montse Empez Vidal.

in Orange’s car-sharing tool: “Ride sharing is included. Anyone can share your ride.

They don’t need a license, and there don’t need to be any extra cars.” Nevertheless, corporate ride sharing has less potential on a midterm basis than car sharing.

As for Uber use via a corporate account, Vidal prefers to wait until legislation and insurance issues pan out. However, Applus uses Uber in the United States, “but not under corporate agreement. Employees use the services, pay for them and then simply get reimbursed”.

In some cases though, corporate car sharing cannot completely fulfil the demands of employees. “We would like to push for more car sharing, but I am not sure that, at this moment, there is any solution that would fit 100% with our needs except if we keep it internal as we are doing right now”, concludes Montse Empez Vidal.

13

SMART MOBILITY

The car sharing network is expanding Antigoni Vokou @Antivokou

Car sharing is becoming more developed and widespread across Europe. Next to specialized car sharing suppliers, OEMs, fleet management, car leasing companies and car sharing technology providers are developing at fast pace their offers. Many have been working many years to increase their alternative mobility solutions. As you can find here below, car sharing is an important ingredient of their mobility cake.

EUROPEAN CORPORATE CAR SHARING OFFER BY LEASING COMPANIES LEASING COMPANY

CAR SHARING SERVICE

ALD

ALD Sharing

ALPHABET

Alphacity

ARVAL

ATHLON

COUNTRY/CITY PRESENCE

COST

France • Spain • Netherlands • Italy

Depends on company needs

Keyless app station based car sharing • Average 10.000 users • More than 600.000 premium cars – BMW and Mini • BMW i3 EV • Booking via online portal and App, special features: e.g. private and business use, different payment methods, individual booking rules, E-Mobility parameters, integrated drivers log book; keyless vehicle access; detection of fuel & park cards; in depth fleet analysis, operation and servicing of fleet, 24/7 driver’s help desk.

Germany • United Kingdom • Netherlands • France • Spain • Italy • Belgium • Denmark • Austria

Tailor-made solution depending on individual client needs

Arval Car Sharing

Arval Car Sharing app for Android and iOS for keyless lock/unlock/start • Mileage/Fuel/Damage reporting • Online dashboard

Belgium

Depends on company needs

Car2Use

EV BMW i3 • Between companies car sharing

Netherlands

Depends on company needs

BtoB various programs based on pool management and applying rental solutions

Netherlands • Central Europe

Depends on company needs

RFID card. Bluetooth, internationally harmonised proposition. self-service and on-demand reservation SwopCar platform

UK • Netherlands • Luxembourg • Italy • France • Germany • Switzerland • Poland

Depends on company needs

BUSINESS LEASE LEASEPLAN

SwopCar (with Infinity)

SPECIFICITIES

SamSam

Netherlands • Luxembourg

LeasePlan car sharing pilot tests

Germany • UK • France • Italy • Spain • Portugal • Czech Republic • Hungary • Switzerland.

DAIMLER FLEET MANAGEMENT

Corporate Carsharing

by Daimler Fleet Management

Covers vehicle servicing, repairs, annual road tax and motor insurance • Tracking and analyzing vehicle usage and cost data; the car has to be owned or leased by the customer

Available in Germany for customers of DFM

€ 129/month

VOLKSWAGEN FINANCIAL SERVICES/GREENWHEELS

Greenwheels

2.000 cars

120 cities in Netherlands • 21 cities in Germany

3 hours & 40 km with VW up!

• € 17 (depending on price package (0-25€ monthly fee) • € 5,97 (depending on price package (0-10€ monthly fee).

14

FLEET EUROPE #83

EUROPEAN CORPORATE CAR SHARING OFFER BY OEMS OEM

CAR SHARING SERVICE

SPECIFICITIES

COUNTRY/CITY PRESENCE

COST 1

BMW/MINI/SIXT

DriveNow

Free-floating car sharing • 600,000 members globally • 39% market share in German car sharing market • 4.200+ vehicles globally • 20% electric Fleet in total • BMW i3 available in all DriveNow cities • German fleet: 340 BMW i3 • Danish fleet: 400 BMW i3 • German fleet 2016: BMW X1 • BMW 1 Series • BMW 2 Convertible, BMW 2 Active Tourer and BMW i3. MINI Clubman, MINI Hatch, MINI Convertible.

London • Copenhagen • Stockholm • Vienna • Berlin • Cologne • Dusseldorf • Hamburg • Munich

Germany 0.24-0.34 euros/ min • Vienna 0.27-0.37 euros/min • London 0.32-0.39 pounds/min • Copenhagen 4 kr/min • Stockholm 4.50 kr/min

DAIMLER

Car2go

Free-floating car sharing • 30 cities • 700.000 members

Austria • Germany • Italy • Netherlands • Denmark • Sweden • Spain

14.750 Smart fortwo

Germany

350 EV smart fortwo

Amsterdam • Stuttgart • Madrid

0,35 euros/min

FIAT CHRYSLER AUTOMOBILES/ENI

Enjoy

Global car sharing • 18.000 vehicles • 420.000 customers • Free-floating in selected are • Low-CO2 cars: Fiat 500 family.

Milan • Rome • Turin • Florence

FORD

Ford Carsharing

With Flinkster

70 cities

Go Drive

Pay-by-the minute, on demand, one way car-sharing with guaranteed parking • 50% Focus Electric Fleet and 50% Fiesta

London

0,21 euros/min

B2B tailor-made corporate car sharing solution

Europe

Fix fee + amount per km/ hour of use. Average: 350500 euros/month (lease car + insurance included) depending on option chosen by the customer.

0,25 euros/min

With Flinkster NISSAN

Nissan Carsharing

Professional use and employee private use during nights and WE • Full offer, without limit of km or duration within the day - Pay as you drive.

OPEL

CarUnity

Private car sharing service • Currently more than 3,500 Germany: Rhein-Main area passenger cars & LCVs registered • 10.000 users and Berlin.

Around 15€ per day

PSA GROUP

Citroën Multicity

100% EV car sharing B2C: 250 Citroën C-ZERO • 12.000 customers • 500.000 rentals

Berlin

0,28 euros/min

Share your Fleet

B2C • 100 vehicles

France

69,9 euros/car/month

Connect Fleet Management

B2C • Programme connecting PSA Group cars to the main Fleet Management service providers on the market

France • Italy • Spain

Price depends on fleet management services chosen

Peugeot Rent

B2C • Passengers cars and commercial vehicles available

France • Germany • UK • Italy • Spain

Bluely and Bluecub

B2C • with Bolloré Group

Lyon, Bordeaux

Tripndrive

B2C • with Tripndrive

France

Koolicar

PSA Group is one of the main shareholders

France

Sunfleet

1.000 cars • Plug-In Hybrids

Sweden

VOLVO

Small driving contract (few times/week): 1kr/km or 40 kr/hour or 169 kr/month • Medium driving contract (few times a month): 1kr/ km or 30 kr/hour or 499 kr/month; • Large Driving contract: 999 kr/month.

1 This comprises average price.

EUROPEAN CORPORATE CAR SHARING OFFER BY TECHNOLOGY PROVIDERS TECHNOOGY PROVIDER

CAR SHARING SERVICE

SPECIFICITIES

MOBILITY SYSTEMS + SERVICES

MobiSys

Corporate end-to-end car sharing software solution for Europe both station-based and free-floating car sharing • Book vehicles online or via app, cost centre invoicing

VALEO

InBlue Mobility Solution Smartphone-based solution • 95% vehicles compatibility • Secured • Registration, Search/ Reservation, Key transfer, Vehicle geolocation, Check-in / check-out, Real-time alerts, Predictive Maintenance, Eco-driving, Driver profiling, etc.

Europe

Depends on the volumes and service package

OTA KEYS

The Modular Car sharing device

Easy installation through an OBD II connection, realtime vehicle data reading, connected car services, works off-line.

Europe

Depends on company needs

Modular software and hardware solutions

Free-floating or station based car sharing. Mobile apps, driver website, Fleet Manager website and for ‘Do it yourself customers’ API and SDK documentation.

FLEET EUROPE #83

COUNTRY/CITY PRESENCE

COST Depends on company needs

15

SMART MOBILITY

No hassles, only Benefits Antigoni Vokou @Antivokou

Car sharing by OEMs, fleet management companies and mobility providers present more benefits than hassles. Mobility costs are reduced, fleet managers have accurate information on vehicle usage and on when employees need a car.

In 2016, carmakers “must also increasingly see itself as a mobility service provider,” explains Marc Schomburg, European Fleet Operations Manager at Opel. Daimler’s car2go aims to make ownership unnecessary. BMW and Sixt’s DriveNow targets more mobility and sustainability.

Most OEM and leasing companies offer efficient car sharing service, and mobility services providers support corporates with more accurate technology. There are no excuses anymore for not admitting car sharing presents many benefits, compared to a company car, and many of the hassles existing before both for fleet managers and users were solved.

Corporate car sharing has a great potential in the future for employee mobility, as it

“will increasingly become a standard form of corporate transport,” believes Sophie Peggs, Sales and Marketing Manager at Mobility Systems + Services.

SHARING IS NEW CORPORATE MOBILITY “Corporate car sharing is cost efficient, interesting and fun for all stakeholders and soon becomes an integral part of the corporate mobility management,” says Sophie Peggs. The alternative mobility demand by younger more mobile-oriented employees is going to increase undeniably. Valeo’s InBlue Mobility Solution is a car sharing solution for corporate fleets and car rental companies which “provides the complete solution to optimize company fleets by reducing management costs, reduce wasted time and employees benefit from

a fully digital driving experience,” says Jérôme Baumann, Project Manager of InBlue Development.

SHARING ON-DEMAND LeasePlan’s SwopCar can be reserved from 1 minute to weeks. Employees can obtain reduced registration fees for DriveNow, which can cost “half the price of a taxi”, says Michael Fischer, Head of PR at Drive Now. Miveo Cloud services connects in Europe vehicles, drivers, fleet managers and third party service suppliers. “The cars are connected to Miveo Cloud through after sales telematics equipment from Miveo or through the vehicle manufacturers own connected car platform, eliminating the need of after sales installations,” explains Mikael Jagelid, Partner at Miveo Car-sharing Technologies AB. OTA keys proposes a solution which allows “any party to make vehicles available in any car sharing schemes of their choice and even

different schemes at the same time. An unused vehicle will this way be made available to anyone in need of mobility,” explains Steven Verheecke, Sales & Operations Coordinator at OTA Keys.

SHARING WITH YOUR SMARTPHONE Make corporate car sharing more efficient is based on transparent booking system. “The cars should be accessible by means of chip card or smartphone unlocking,” for Sophie Peggs. “Over half a million registered customers find and reserve vehicles using the DriveNow App or website” explains Michael Fischer. Valeo InBlue Mobility Solution “is a complete smartphone-based Car Sharing solution,” explains Jérôme Baumann. It is available for companies in Europe from October 2016, is compatible with 95% of cars, is highly secured and integrates many digital services: registration, key transfer or eco-driving. Smartphones apps are the new car keys.

1/3

of Car2go users

are UNDER 25 YEARS OLD

1/3

of DriveNow cars are GREEN

50% less costs than a taxi with car sharing

Driving the future of mobility Mobility services like car sharing are changing the way we use cars, the way we manage our mobility needs and the way we make business.

Partner up with Miveo to let your business take advantage of the changing mobility landscape.

www.miveo.se

SMART MOBILITY

Uber and Zipcar business offers rise Antigoni Vokou @Antivokou

The main advantage of both car sharing and ride hailing can be put into an equation: zero ownership = zero hassle + more green + less cost. That is why companies like Uber and Zipcar are attracting more and more users every day – including an increasing number of business users.

Uber is becoming a preferred mobility mode for many employees, because it works 24/7 and across 71 European cities. You just need to download the Uber app, enter your name, phone, email and credit card details.

You then can contact an Uber driver and get to your meeting point. Your credit card is debited once at your destination, and an invoice is sent by email. “Because all our rides are cashless there's no worry about not having the correct currency or not being able to use your credit card,” says Alana Saltzman, Communications UK & Ireland at Uber.

Like Uber, Zipcar underlines that its most important added value is the ability to “provide our members with access to a fleet of cars and vans ‘on-demand,’ eliminating the cost, hassle and responsibility of vehicle ownership,” as stated by Andrew Edgar, Head of Zipcar for Business.

40% of users RATE UBER AS COST CONVENIENT

ZIPCAR WAS LAUNCHED

in

18

2000

Uber is worth 55 billion euros in December 2015.

STRICTLY BUSINESS Uber has the option for business travelers, of both small local companies and global multinationals. “We have launched 'Business Profiles', which allows you to set up a personal and a business profile on your account. This means that you can charge all your business trips directly to your business or corporate card,” says Alana Saltzman. “The billing option will show up directly in rider accounts associated with the company, so there's no need for receipts and expense reports!” Business Profiles has a dedicated account manager, able to support your employee or entrepreneur account, customer issues and billing.

“Uber for Business” pilot tests are held in the UK and France.

Zipcar’s 4 Business service operates for corporates in 35 cities across seven European countries: Austria, France, Germany, Spain, Turkey and the UK. Zipcar 4 Business clients can extend the access to their vehicles so employees can use them on demand, out of office hours. Businesses are able to manage their Zipcar experience via detailed account management information available at all times via the Zipcar mobile app or online. Live statements can be exported from the Zipcar site too.

SAFETY & INSURANCE All Uber drivers’ backgrounds are checked and any communication between customer and driver is anonymised. Immediately after any ride, the user can rate the driver, based on his satisfaction and personal evaluation of the trip. Zipcar covers a liability of up to $1 million per incident for bodily injury or property damage for passengers en route to their destination.

FLEET EUROPE #83

BMW Corporate sales

www.bmwcorporate-sales.com

UPGRAdE YOUR FlEET. dOWNGRAdE YOUR CO2 EMIssIONs. BMW iPERFORMANCE MOdEls. lEAdING PlUG-IN HYBRId TECHNOlOGY.

sheer driving Pleasure

SMART MOBILITY

Multi modality gaining momentum Tim Harrup

There has been a lot of talk about the changing face of company mobility.

Fewer company cars, public transport, bikes…

But what is actually happening on the ground? And who is involved? We take a look at some current trends.

Perhaps one of the most indicative indications of the way things are changing comes in the domain of car sharing. This trend started in the private domain, as an alternative to having to shell out large sums of money on a car. Particularly in cities, as we all know, it was becoming obvious that owning a car was more like an expensive inconvenience than anything else. And the traditional company car driver very much looked down his nose at this: ‘This is my car, why would I share it with anyone else…?’

NEW SUPPLIERS The need for change is easy to see. A vast number of expensive company cars are used to bring one person to the office in the morning, and take him/her home at night’. The rest of the time, many thousands of Euros’ worth of expensive, highly technological car sits in the car park – fully insured and with service contracts in place – doing absolutely nothing…

New specialist providers have emerged to serve the corporate market. One of these, Ubeeqo, has recently developed a similar offering for the private market. From private to corporate, then from corporate to private, all of this bears witness to a merging of the two domains. And this reflects another aspect of working life in the 21st century: it has to be as close as possible to home life.

One major supplier and user of multi-modal transport speaks quite simply of ‘improving people’s lives’.

Public transport is very much part of the modern equation.

20

MOBILITY CARDS The different mobility cards on the market, on offer from the major leasing companies, provide a range of services designed to make

moving around easier, and reduce the environmental footprint of the company: Facilities can include: • use of car-sharing schemes • ability to purchase tickets for public transport • use of taxis • air travel in designated areas • bike or electric bike hire where appropriate In return for this, an employee chooses a smaller car than would previously have been the case. In return for this, he or she may be allowed to use a larger car from the lease company, for annual holidays and for a set number of weekends. These cars can include cabriolets, people-carriers, SUV’s…

The philosophy is that the most appropriate vehicle is available when needed.

MOBILITY BUDGETS One of the companies to have opted for an alternative mobility scheme (through Ubeeqo) is Bristol Meyers Squibb. This operates in two ways: company car drivers can opt for a smaller car than their allowance enables, or have access to the car sharing vehicles in the fleet. As compensation for this they receive an annual sum to be spent on trains, planes, taxis, shared mobility, all forms of transport.

The second part of the scheme is that all employees – company car drivers or not – can use electric vehicles from the shared fleet for both business and private trips. The business trips are free, of course, but a sum is paid for private use. So company cars are open to be used people who don’t normally have one.

FLEET EUROPE #83

N E W P E U G E OT E X P E R T W I T H N E W G E N E R AT I O N P L AT F O R M

THE ASSET FOR AMBITIOUS BUILDERS

PAYLOAD: 1,400 KG

HANDS-FREE SLIDING SIDE DOORS

CO2: 133 TO 155

LOA DSPACE : UP TO 6 .6 M 3 This new generation platform provides a groundbreaking performance: more lightness and more modularity for an unmatched driving comfort and fuel economy.

Combined consumption (l/100 km): from 5.1 to 5.9. CO2 emissions (g/km): from 133 to 155.

NEW PEUGEOT EXPERT

SMART MOBILITY

How best to deliver a Mobility Budget Steven Schoefs @StevenSchoefs

Geographical expansion is one way for traditional fleet suppliers to increase their business. The other is to explore new business channels and models with products aimed at capturing future custom. Smart Mobility is one of the major trending topics in this respect. One of the key issues here: how best to deliver a Mobility Budget?

Suppliers’ future success or failure depends in large part on how they answer that question. Arval is one of the industry leaders with a concept in place – Arval Mobility Link.

The platform was launched last year in the Netherlands, and introduced in Belgium on 27 May this year.

FEATURES AND ADVANTAGES - The mobility platform is combined with an operating leasing management system - Integration of all types of mobility cards possible - Access to Mobility Dashboard with trends - The corporate lease vehicles can be connected with the platform - Real-time insight in mobility budget to make smart mobility choices

22

WHAT IS IT? Arval Mobility Link is an integrated platform tracking various types of mobility for all employees of any given company. Individual, shared or pooled company car, bus or metro, taxi or bike: you name it, the platform registers and manages it. It also tracks fuel consumption and fill-ups. The interface is a handy dashboard plus a smartphone app.

WHAT IS ITS PURPOSE? All of this tracked behaviour produces data that provides the corporate fleet/mobility manager with insight into the mobility patterns within his or her company, and allows them to adjust these accordingly.

HOW DOES IT WORK? As a platform, Arval Mobility Link can be used by an entire organisation, from management to employees, and both by those with and without a company car. Customers can choose to settle all mobility costs in a mobility budget. They set a monthly budget for their employees and fix the conditions

under which they are allocated their budget, and the platform automatically settles their mobility use against their allocated budget.

HOW DOES THIS WORK OUT IN PRACTICE? A mobility budget is in fact a gross allowance. It does not commit the employer to extra costs. The employee registers his business mileage on the platform, and gets paid the net part of his gross allowance. If the employee has some of his budget left at the end of the month, he receives this in gross payment.

The customer receives a single monthly invoice detailing all mobility costs, including a specification for the salary admin department.

WHICH TYPES OF BUDGETS DOES THE SYSTEM USE? Arval Mobility Link distinguishes three types of budgets: the travel allowance, the no-claims bonus-malus lease budget and the mobility budget – the latter being the preferred solution.

• The travel allowance is the automated registration of business mileage by employees without a company car or a lease budget.

FLEET EUROPE #83

• The bonus-malus lease budget is an incentive for lease drivers to drive safer, smarter and greener. It involves a number of measures to promote desirable driver behaviour and car usage, in line with the stated car policy and corporate strategy.

This module involves a large degree of of autonomy for the driver, who can take mobility decisions on his own.

• The personal Mobility Budget allows the employee to choose and use whichever

mobility mode fits his need at that particular moment. In other words, this module fits perfectly in a pay-per-use scenario. The employee combines different mobility modes according to his or her needs and preferences, as long as it’s within the allocated budget. The result is not just freedom of choice and maximum flexibility in mobility, but also improved productivity, as the employee is able to adjust modes of mobility to preferred working habits.

THE MOBILITY PROCESS FOR THE MOBILITY MANAGER

THE MOBILITY PROCESS FOR THE EMPLOYEE

Source: Arval, 2016

FLEET EUROPE #83

23

SMART MOBILITY

Fleet Mobility Budget Antigoni Vokou @Antivokou

Mobility budgets are becoming a preferred solution for younger and green-oriented employees, and can be combined with the use of a lease car. Once the barriers of fiscal conditions and lack of transport infrastructure fall in Europe, their demand from employees will undeniably be boosted.

At present, mobility budgets are used in just a few countries in Western Europe, notably the Netherlands and Belgium. The two most important conditions for a true mobility budget approach are: understanding your business needs and understanding your mobility needs, says Montse Empez Vidal, Chief Purchasing Officer at Applus. “Once those are clear, you must understand the different options in order to choose the best fit for your mobility needs and adjust budget and policies accordingly.”

Laura Cortese, Travel & Fleet Management Support at Deutsche Bank AG, identifies four main conditions for building a true mobility budget approach. Firstly, “you should be able to configure the mobility budget to your company’s and employees’ requirements.”

Secondly, a consolidated, independent platform should include all relevant transport modes - rail, taxi, airplane and shared, rental and company cars. Thirdly, employees should get bonus points for using environmentally friendly transport modes. Finally, it should be possible to use the mobility budget for both business and private purposes.

TAX BREAKS The main disadvantage of replacing a corporate status car with a mobility budget is fiscal, says Jean Zermati, Group Fleet Manager at Orange.

“On top of the resistance to change of the entitled managers, you face tax issues: if those

For the Y and Z generations replacing a status car by a mobility budget is a more interesting option today.

24

managers have a company car, they can drive their entire families around. If the company replaces the status car by a mobility budget and pays for train tickets for their employees and their families instead, how will those tickets be considered in terms of charges or taxes?”

Apart from the availability of multimodal travel options, “our experience in the Netherlands shows that a supportive tax regime plays an important role in the implementation,” attests Saskia Harreman, Director of International Consultancy Services at LeasePlan International. Laura Cortese agrees that a clear understanding of the relevant taxation is necessary in order to expand the use of mobility budgets by employees. In some European countries, mobility budgets don’t generate an additional tax liability. In the Netherlands, all employee business mobility costs can be deducted from their gross budget. LeasePlan’s Dutch entity Mobility Mixx facilitates personal mobility budgets. “Employees receive an annual budget for all their business mobility requirements.

Out of this budget, they will pay for their own usage”, explains Saskia Harreman.

EMPLOYEE-CUSTOMISED MOBILITY According to Saskia Harreman, “mobility budgets still are a niche solution.” They benefit certain types of employees, the young and urban ones in particular. “However, mobility budgets usually aren’t the preferred option for other types of employees. If frequent traveling is required beyond the daily commute, or if the employee’s home or workplace are hard to reach by public transport, they will still prefer their company car.” Combining a lease car with a mobility budget is a solution for fleet managers. It gets the best of both worlds, thus offering employees a complete, tailored mobility solution.

FLEET EUROPE #83

ALL-NEW JAGUAR F-PACE

ABOVE ALL IT’S A JAGUAR

Welcome to Jaguar as you’ve never seen it before.

The All-New F-PACE is a highly spacious and practical performance SUV, with the DNA of the Jaguar F-TYPE sports car.

Every detail of F-PACE’s sleek form has been designed for maximum aerodynamic efficiency. This helps to reduce fuel consumption, CO2 emissions and wind noise, making it a compelling choice for your fleet.

A master of performance and everyday practicality, F-PACE raises the game. jaguar.com/fleet-and-business

JAGUAR CARE 3-year unlimited mileage warranty, servicing* LOWER EMISSIONS From 129 g/km CO2 BETTER FUEL ECONOMY From 4.9 l/100 km combined

* JAGUAR CARE is valid for the All-New Jaguar F-PACE in Austria, Belgium, France, Germany, Italy, Luxembourg, Netherlands, Portugal and Spain. Service pack contains all service-related labour and parts costs and does not include wear and tear.

Local market exceptions may apply to the servicing offer.

Official fuel consumption figures for the Jaguar F-PACE in l/100 km: Urban 12.2–5.7, Extra urban 7.1–4.5, Combined 8.9–4.9.

CO2 emissions in g/km: 209–129. Drive responsibly on and off-road.

SMART MOBILITY

Alternative Taxation is not yet there Erwin Boumans, Tax Partner, BDO Belastingconsulenten

The automobile has been a pillar of personal transportation for the last decades and has contributed to reduce distances.

Road infrastructures have tremendously exploded in Europe and consequently traffic congestion in most major European cities has reached saturation point, creating amongst others significant air pollution problems.

In order to address traffic congestion and air pollution issues, certainly to avoid a situation becoming identical to this one faced by highly polluted cities such as New Delhi for instance, alternative transportation modes need to be looked at: it is therefore time to approach mobility in cities in a different way and at different levels simultaneously.

Also, an increasing number of major city centers like Oslo, Dublin, Paris, Brussels, London, etc. are becoming more and more “restricted areas” if not for all cars at least for the more polluting ones, and incentive policies are increasingly being explored and (potentially) applied by political authorities in view of developing/sustaining alternative mobility modes.

On top of the ‘classic’ public transport infrastructures, like tramways, buses and underground, most major cities usually propose other alternatives to a personal car like shared vehicles (sometimes full EV’s or hybrid) or shared bikes.

A significant number of countries in Europe already offer incentives in order to sustain and promote the use of “green” transportation modes: this is for example the case in Austria, where electric vehicles are exempt from the fuel consumption tax and from the monthly vehicle tax, in Belgium, where electric vehicles pay the lowest rate of tax under the annual circulation tax, or in the Czech Republic, where electric, hybrid and other alternative fuel vehicles are exempt from the road tax (this tax applies to cars used for business purposes only). However, in most countries this is still far from enough.

EXPAND TRANSPORT AND INFRASTRUCTURE Nevertheless, the automobile still remains today the preferred mode of (personal) transportation. Indeed despite these kinds of initiatives, personal cars remain largely preferred probably due to a favorable car taxation scheme for company cars in most European countries (and because driving pleasure is a key factor), but certainly also due to a poor public transport network and appropriate infrastructure, in most cities, that would allow an alternative mode of transportation coupled with low incentives for users of such mobility modes.

26

In Europe there is still room for improvement, indeed only eighteen countries in the EU have a favorable car taxation scheme for green powered vehicles; while nine have none at all! Amongst the worst performers are Bulgaria, Spain, Estonia, Luxembourg and Poland.

FLEET EUROPE #83

In Europe efforts are still needed for favorable tax schemes with regard to alternative mobility modes.

Next to this, other initiatives are put together and deserved to be highlighted: a collaboration between BMW, RenaultNissan, Volkswagen and ESB eCars aiming to build a rapid charging network project, is currently held across Europe to install fast charging stations, potentially allowing a more expanded usage of shared “green” cars.

In Germany, Bosch and Daimler are collaborating to create a fully automated parking garage to test on Car2go rental cars.

EXTRA MONEY FOR “GREEN” USERS In respect of promoting alternative mobility modes, many workplaces develop their own mobility policies in order to reduce the use of single occupant vehicles; e.g. extra money is granted to employees adopting “greener” mode of transportation such as bikes, carpooling or public transportation mode.

but offer a mobility budget that people can personalize. Problem is that no clear rules exist in most countries on how to tax such alternative mobility budget, contrary to company cars.

Nevertheless, studies reveal that monetary and time costs, as well as convenience, are the key factors in an individual's choice of transport. In other words, promoting only one type of alternative mode of transport may not suit every user, it is therefore necessary to promote several modes of transport.

Finally, to quote Sunita Narain, India’s leading environmentalist and political activist as well as a major proponent of the Green concept of sustainable development “There cannot be anything more fundamental than the right to clean air”...

Maybe Europe can get inspired/warned by current issues New Delhi is facing today?

A trend to be noted is the increasing flexibility that employers want to offer to their employees with respect to mobility: i.e. not automatically grant a company car, FLEET EUROPE #83

27

FACE TO FACE

It’s all about choosing your goals For this new episode of Face to Face, we travel to Maastricht in the Netherlands to meet with fleet managers Steven Harteveld from CSC and Daan Bieleveld from DSM. Our rendez-vous is the magnificent and intriguing Kruisherenhotel, a former church transformed into a boutique hotel, elegantly combining traditional elements and historic architecture with modern design.

Maastricht, capital of the Dutch province of Limburg, is situated in the very south of the country. Proximity to ‘Europe’ is not just a matter of geography in Maastricht, also of politics. In 1992, the city became synonymous for the Treaty that would transform the European Economic Community into the European Union, leading to the introduction of the euro.

Politics is not why we’re here with Daan and Steven. As Global Mobility Manager of DSM, Daan Bieleveld is not afraid to test alternative, sustainable solutions in his search for employee mobility efficiency. Such experiments fit in with his company’s innovative character. Steven Harteveld manages the European fleet for CSC. With a decade of experience in fleet management and a typically Dutch down-to-earthness, he approaches fleet management in a rational and cost-conscious way. Innovation in mobility at CSC is achieved in a similar straightforward way – through individual mobility budgets. As in life and in love, you don’t need similar backgrounds to have a refreshing and engaging discussion. In fact, differences can be stimulating, and opposites attract!

28

FLEET EUROPE #83

Daan Bieleveld DSM

FUNCTION Global Mobility Manager at DSM COMPANY ACTIVITY A global science-based company active in health, nutrition and materials NUMBER OF CARS 1,700 NUMBER OF COUNTRIES 26 IN FLEET MANAGEMENT SINCE 2010 REPORTING TO VP of Human Resources FUNDING METHOD Operating Leasing INTERNATIONAL CAR POLICY Revised and under approval INTERNATIONAL GREEN & MOBILITY POLICY Under approval

Steven Harteveld CSC

FUNCTION Fleet Manager Europe at CSC COMPANY ACTIVITY Digital technology NUMBER OF CARS / NUMBER OF COUNTRIES 20 EMEA IN FLEET MANAGEMENT SINCE 2007 REPORTING TO Corporate Travel Manager FUNDING METHOD All Leasing INTERNATIONAL CAR POLICY Yes INTERNATIONAL GREEN & MOBILITY POLICY In review

FLEET EUROPE #83

29

FACE TO FACE

1

STRATEGY

What is the main element that you want to develop in 2016 in terms of international fleet?

DAAN BIELEVELD My top priority this year is finalising our new car fleet and mobility policy, in order to have a smooth implementation of our global strategy. As the new policy will impact and change what people are used to now, it’s important to create awareness on why we are doing this, and set mobility as one of the examples of our whole sustainability agenda.

Following that, I would really like to integrate a new mobility scheme, adding travel policies, rental car policies, and extending private lease car schemes into one global mobility strategy.

STEVEN HARTEVELD In EMEA, we have almost finished aligning all our local policies with the global policy.

Simultaneously, we switched to one global provider and we are in the final stages of adding the last few countries to that new corporate single-supplier model. My most important goal for 2016 is to finish that in the coming months.

How do you efficiently implement an international fleet strategy?

S. H. The most important thing when rolling out a global policy at the local level is to align the local key stakeholders, which is of course legal counsel and local HR: understanding what’s possible and what can be implemented. Of course there are several countries where implementation is smooth, so you can implement in the entire list of countries faster; but if you start with the countries that have more complex regulations, you can learn more from them.

We took a broad approach with several countries at a time, starting with the biggest fleets and with whoever has the biggest impact on the corporate goal we were trying to achieve. Once you have the biggest fleets aligned, you’ve got 60-70% of your fleet covered.

D.B. We try to seek support at top level.

That’s very important with respect to the

30

global sustainability car fleet policy we are aiming for as a company. This policy will have different impacts on different countries, because, as Steven mentioned, there are different cultures. We try to have top-down support for the policy, which is still to be approved, and I am sure we will get there. In the next phase, it’s also important to sit down with the countries to build every business case, to see what the impact would be for employees on the car level and to figure out alternatives if the car they want is not available.

What is the biggest issue when implementing your international fleet policy?

D.B. The CO2 output of our leased cars are scattered , and of course this is a sensitive subject. For many employees, the company car is a very personal thing, linked to their sense of freedom. We discussed where we want to go on sustainability and how to be a front runner on this topic, because for us this is a key area. We decided now is the right time, as we are a truly global player with a one-company approach.

Our sustainability approach will be reflected in the way we use mobility. As we have set our goal, we just have to figure the right tools to get there. If we create awareness and offer alternatives, employees will understand, I'm sure. I’m a petrol head myself, but I drive a green engine for my daily business.

S. H. It’s all about choosing your goals and knowing which one you want to achieve first and foremost. Is it cost savings, sustainability, CO2 or your brand’s choice? The obvious hurdles to overcome are the legal ones. You always have to make sure that you adhere to legal requirements that are specific to the country.

For example, in some countries, you need individual permission from the employee in scope when changing a budget or a car choice, and if the employee doesn’t agree you can’t change these conditions. To overcome this, you need local legal consultation. You also need to make a legal distinction between “it can’t be done” and “it’s really difficult”, because difficult means it is possible to be changed.

FLEET EUROPE #83

FACE TO FACE

2

MOBILITY & GREEN

How will Dieselgate change your corporate fleet strategy?

STEVEN HARTEVELD Dieselgate showed us that NOx is an underestimated part of green mobility.”

DAAN BIELEVELD Following up on Steven’s reply, the question is: “Is this just the tip of the iceberg or a problem that is really centralised with one supplier?” The discussion on norm output figures versus actual consumption figures is a very old one. Looking on the positive side, Dieselgate has made governments and policy makers look at actual emissions figures and try to establish new norms for testing vehicle emissions. It was about time!

Are there sufficient government subsidies and tax incentives to make your fleet greener?

D.B. I feel a green vision should be embedded deep in the DNA of a company as a whole.

However, our tax systems might have conflicting interests. In the Netherlands, we are a frontrunner in tax incentives for green company car models, but even if you can get incentives for ‘obtaining’ a hybrid car, what if your employee will never charge it? If you as an employer want to make green mobility appealing to your employees, giving extra incentives is often not fiscally interesting.

If companies and governments work closer together, we’ll be able to move faster to establish green policies.

S. H. Incentives are good, and it is my personal view that if we were to see fixed incentives for a longer period of time – say, for four to five years, this would be of great help to my work as a fleet manager. A lot can change for a country’s fleet because of new incentives.

And that’s just in one country. Imagine you have to multiply that by many countries if you’re going to think globally.

Do you have other alternative mobility solutions?

S. H. Employees who are eligible for a company car can choose either the car or a mobility budget. With the mobility budget, you are free to choose what suits you best. You can use the budget for public transport, taxis, a bike or whatever you want. The mobility budget is entirely the responsibility of the employee. This is a great way of giving FLEET EUROPE #83

our employees both more flexibility and more responsibility.

D.B. Last year, we developed a green private lease solution which has now been implemented in the Netherlands. And with great results: in just the first two months, 130 people have already opted for a private leasing car via this scheme. Furthermore, we’re looking at developing our corporate car-sharing pilot. At present, it consists of two cars, where you can have an electric car, you can open it with your employee badge and the costs are automatically declared to the right system. That saves the employee time, the company money and we have a green electric car on the road. We also have a mobility allowance in terms like Steven mentioned. Cost wise it is a challenge to have a mobility budget strategy covering all the mobility modalities, but I believe this is the direction we are going.

What role do you see for the company car in the future?

D.B. I would like to have the company car weighed down less by its legacy benefits, and have it reflect our current company values more. I am in HR. Our goal is to attract the right employees. It’s really important to have alternatives to the company car, to get people to experience what those alternatives would be, to enjoy our benefits in a more flexible way. That will be the key to actual change.

The 24/7 ‘need’ for a big car is something that will change automatically. Generation Y and Z have another way of looking to mobility. We will have to offer sustainable and attractive alternatives, show the impact of choices and then let our employees be our ambassadors.

S. H. Five, six years ago, we were already saying that we would all be driving electric by now. We aren’t. Ten or fifteen years ago, we were already talking about mobility budgets as the future, predicting that we would all be using mobility budgets, and mobility budgets are around nowadays, with our company as a clear example.. I am being cautious about saying where we will be in five years’ time.

As a company, we have a goal to achieve, but we cannot predict with 100% certainty what kind of fleet we will have in five years’ time.

There are a lot of factors influencing this, and much of course also depends on what kind of employees we will have. We’re talking about Generations Y and Z, so let’s see what our future employees want: a car or a budget!

31

FACE TO FACE

3

WHO’S IS WHO Suppose you weren’t in the fleet business. What kind of work would you like to do? I’d like to be in HR, advising and helping people.

What would you do now if tomorrow would be too late? Do my honeymoon again.

Biggest mistake in car fleet management? Believing every country has the same needs.

STEVEN HARTEVELD

Favourite hobby? Fishing

CSC

Favourite holiday destination?

Scandinavia.

First car? Volvo 340.

Suppose you weren’t in the fleet business. What kind of work would you like to do? Dive in the innovative world of startups.

What would you do now if tomorrow would be too late? Act on climate change!

Biggest mistake in car fleet management? The existing tunnel vision on the car: there are other transportation modalities.

Favourite hobby? To travel and to be outside and enjoy the nature by foot, bike or motorcycle.

DAAN BIELEVELD DSM

Favourite holiday destination? Never been there, but Australia is first on my ‘to go’ list.

First car? An old Italian, which had more malfunctions than options, but it was mine!

FACE TO FACE ON VIDEO What do Daan Bieleveld and Steven Harteveld think about on Private Lease, Self-driving cars and other automotive and fleet management trends?

Find out on www.fleeteurope.com

32

FLEET EUROPE #82

FACE TO FACE

INSIDE FACE TO FACE In the unique and astonishing Kruisherenhotel in Maastricht, capital of the Dutch province of Limburg, we met with Daan Bieleveld from DSM and Steven Harteveld from CSC for an in-depth, engaging Face to Face discussion.

For both Daan Bieleveld and Steven Harteveld, it is essential to seek local support and counseling when implementing a global fleet policy.

For Daan Bieleveld, a strategic partnership with just one supplier can increase benefits and trust.

The interview set-up at Kruisherenhotel in Maastricht.

Steven Harteveld says you should be in a constant relationship with different suppliers and keep updated on what others do and offer.

Maastricht, historic city in the southeast of the Netherlands and the birthplace of the euro.

FACE TO FACE EPISODE 3

The correct implementation of an international fleet policy depends on the corporate goal you want to achieve, say Daan Bieleveld and Steven Harteveld.

#84

We’ll meet up with Carlo Bertolini, Chiesi Farmaceutici, & Giovanni Tortorici, Barilla, at the race track in Monza. Look for it in the June edition.

Steven Schoefs & Antigoni Vokou | PICTURES: Benjamin Brolet | CAMERA: Mohammed Dehbi | PRODUCTION SUPPORT: CĂŠline Gilson (organisation) | PRODUCTION LEADER: Urbain Ortmans

FLEET EUROPE #82

33

INNOVATION

New technology drives down costs Jonathan Manning

Innovative driver assistance systems and vehicle tracking devices are helping fleets to cut their premiums.

FREEEDRIVE With distraction by smartphone blamed for a high proportion of road accidents, this fleet-specific app lets employers control the apps that are available to company drivers while their vehicles are in motion.

Freeedrive is automatically activated (via Bluetooth) when a driver gets into his car, and can block calls, texts and any disruptive notifications that might distract the driver from the road ahead. But the app can also allow other apps to function, such as GPS and route guidance.

AUTONOMOUS EMERGENCY BRAKING Credited with cutting insurance premiums by 10%, autonomous emergency braking systems read the road ahead and apply the brakes if the driver doesn’t react swiftly enough to a slower-moving or stationary vehicle. A study

by Euro NCAP found that low speed AEB technology leads to a 38% reduction in realworld rear-end crashes, yet few vehicles have the system. An investigation in the UK by Thatcham Research found that AEB only 17% of new cars actually included it as standard, and fewer than 2% of fleets paid extra for AEB as an option when ordering their new cars.

More details: freeedrive.com

E-CONSTAT AUTO This French app brings significant efficiency to the recording and notification of vehicle accidents. The app is free to download for both Apple and Android phones, and allows drivers involved in a collision, where there’s no personal injury, to fill out all personal details, write an account of the crash, take relevant photos of the road layout and vehicle damage, and submit all the information electronically to their insurers. But it only works in France.

More details: www.e-constat-auto.fr

TELEMATICS ‘Black boxes’ in fleet vehicles can transform accident rates and driver performance.

The technology from Tomtom and Navman through exception reporting has the ability to flag up incidents of harsh acceleration and braking. Not only does this give fleets valuable information, but it’s mere presence in a vehicle appears to have a positive influence on the behaviour of drivers as soon as they know their performance is being monitored. Today 3G or Wi-Fi enabled devices can send their data automatically to fleet operators, while apps like Greenroad turn smartphones into virtual black boxes. More information: www.tomtom.com, greenroad.com, www.navmanwireless.com

34

FLEET EUROPE #83

INNOVATION

Self-driving changes the nature of risk Jonathan Manning

The rapid development of active driver assistance systems and autonomous vehicles raises challenging questions for fleets and insurers about liability in the event of a collision.

On the 23rd March, the United Nations Economic Commission for Europe made a seismic change to the dull-sounding 1968 Vienna Convention on Road Traffic. The convention had required a human driver to be present in a moving vehicle and to have control over the vehicle at all times, but UNECE’s amendment permitted ‘driverless’ vehicles on European roads for the first time.

On the 31st March, six pairs of trucks set out from Stockholm, Gothenburg, Stuttgart, Munich, Brussels and Westerlo to drive to Rotterdam. The port is a common destination, but these were far from common convoys. The vehicles were driverless, or at least relied on autonomous driving wsystems in a strategy called platooning.

This involves two or three vehicles connected by Wi-Fi driving in a column. The leading vehicle dictates the speed and route, and this enables shorter gaps between the following vehicles, freeing space for other road users. A Wi-Fi connection between the vehicles ensures synchronised braking and can prevent sudden jolt effects.

A week after they set off, the dozen trucks all arrived safely in Rotterdam.

94%

OF ROAD ACCIDENTS ATTRIBUTED TO HUMAN ERROR

36

With human error responsible for 94% of road accidents, the opportunity for autonomous and semi-autonomous vehicles to deliver a dramatic improvement in road safety is tantalising. Automated Driver Assistance Systems, such as advanced emergency braking, adaptive cruise control and lane-keeping technologies are available now on certain new cars, while

Mercedes-Benz, General Motors, Nissan, Google and Volvo have all said they will have prototype self-driving cars on the road by 2020. Google’s fleet of driverless, laser-equipped vehicles has logged over 1.5million miles on public highways with just a handful of accidents, and only one where it may have been at fault.

These developments, however, raise important questions for insurers and fleet operators about attributing liability for collisions when the autonomous systems fail.

“As technology develops, the nature of the risk will change,” said Matthew Griggs, from Marsh’s UK & Ireland Transportation Practice. “Who, for example, would be responsible in the event of a collision, the vehicle operator, manufacturer, the service provider or the data provider themselves?

The changing nature of the risk needs to be understood and managed accordingly.”

In the airline industry, liability still ultimately resides with the pilots. When Air France flight 447 plunged into the Atlantic en route from Rio de Janeiro to Paris, it was the crew who bore the brunt of the blame. The official report into the tragedy explained how ice crystals had frozen the plane’s pitot probes that send airspeed data to the autopilot. In the absence of this information, the autopilot had disengaged, handing control of the plane back to the pilots. Unfortunately, the flight crew appear to have panicked, made poor decisions, stalled the engines, and ultimately crashed the plane into the ocean with the terrible loss of 228 lives.

FLEET EUROPE #83

Volvo Cars’ Drive Me project involves 100 Swedish families in Gothenburg using autonomous driving cars on real roads.

“When action by the crew is expected, it is always assumed that they will have the capacity to initially control the flight path and to rapidly diagnose and identify the correct entry in the dictionary of procedures,” said the Bureau d’Enquetes et d’Analyses.

when we get into looking at the vehicle, and getting the motor engineers involved.

But it’s not black and white. If technology fails, it won’t fail without a reason, so it will be more of a debate around the root cause of a collision, and then investigate the manufacturing and the parts.

In the automotive sector, however, experts anticipate that vehicle manufacturers will increasingly have to accept liability for their cars when driven in autonomous mode. Taking the lead, last year Håkan Samuelsson, president and chief executive of Volvo Cars, said the manufacturer will accept full liability whenever one of its cars is in autonomous mode.

“As there’s more technology and less driver intervention, there will be a morph from driver liability to product liability over time.”

Eric Scrayen, director, Automotive & Logistics, Aon Risk Solutions, said that as the technology becomes more widespread, the insurance market, “will see a gradual shift away from the driver to the manufacturer and the automotive supplier. But how fast and what it will look like is an open question.”

Even today, insurers face incidents of drivers blaming failures in autonomous driving systems for crashes.

“If you look at reverse parking technology, a person has still got to be behind the wheel to press the button, but if that fails it becomes a product liability and it goes back to the manufacturer, I would suggest,” said Steve Stock, head of motor, Zurich Global Corporate.

Adding to this complicated challenge is the fact that for the next couple of decades at least, road space will be shared by autonomous and driver-controlled vehicles.

Moreover, drivers may even switch between the two systems on the same journey, depending on the information and autonomous infrastructure available.

This creates potentially different risk profiles and different liabilities within the same journey, said PricewaterhouseCoopers, which suggested this could lead to a car in effect having two different insurance premiums priced according to the mode of driving. An on-board telematics system would then establish who was in control of the vehicle at any one time – the driver or the computer.

“If we have a claim and the driver is claiming that the technology is at fault, that’s

FLEET EUROPE #83

37

INNOVATION

Self-driving tech: it all adds up Dieter Quartier @DieterQuartier

Autonomous cars are the ultimate step in the evolution that our cars are undergoing in terms of active safety and driver convenience systems. Human eyes, ears, hands and feet are replaced by sensors and actuators, and common sense plus sound judgement by complex algorithms. Will our cars become better drivers than we ourselves can ever be? The answer is yes.

Cars have been ‘autonomous’ to a certain extent for many years. Already in the nineties did Ligier develop an automated parallel parking system, making use of the parking sensors to calculate the trajectory and controlling the steering angle, but leaving the throttle and brake control to the driver. Today, BMW’s 7-Series can do the job entirely by itself, without a driver being on board. Last year, Volkswagen presented its V-Charge concept, allowing EVs to autonomously look for a parking space with charging infrastructure after having dropped their passengers off at their destination.

But there are many other examples of how cars already act on behalf of their driver.

AEB or autonomous emergency braking, for instance. Or Lane Keep Assist, a system that monitors the side markings on the road en steers the vehicle back to the centre of the lane when it goes astray. Nowadays you can even get adaptive cruise control on C-segment cars like the Hyundai i30, Peugeot 308, Opel Astra and Renault Mégane. ACC-equipped cars can maintain a constant distance from the vehicle in front, slowing down when the latter does and reaccelerating when traffic picks up speed again.

A COMBINATION OF EXISTING TECHNOLOGIES The autonomous car is basically an extrapolation of all these driver-assisting technologies combined into one exciting package.

It gathers the information coming from its driving-related sensors (its eyes and ears) through an advanced multiplex communication system (its nervous system), interprets this information with its ‘brain’, i.e. artificial intelligence, and operates the car accordingly by sending electric commands (through its multiplex nervous system) to things called

38

actuators, little motors (its hands and feet, if you like) that control steering, brakes, throttle, gear change, etcetera.

It’s plan to see that sensors play a key role in establishing what is happening around the vehicle. Cameras, radar and lidar (light pulses) together create a 3D picture or obstacles, road edges, lane markings, road signs and traffic lights. Ultrasonic detectors create an accurate view on the nearby surroundings.

GPS tells the car its position, heading, speed and altitude, but it uses its own gyroscopes, accelerometers and altimeters. Google’s test vehicles even collect data while on the road to update the 3D map of features that they build by scanning the surroundings.

TOWARDS A NEW PARADIGM If a car can do everything by itself, does it need a steering wheel, pedals or even a dashboard?

The minimalistic driving controls in Geneva’s autonomous concept cars – or even Tesla’s upcoming Model 3 – certainly seem to suggest that the answer may be no. This shift in paradigm seems to open up the marketplace for non-automotive companies, such as Google and Apple. They might come up with ideas, solutions and services the traditional car makers never even thought of.

Nonetheless, the transition to the fully autonomous car will be gradual, experts believe.

Drivers will be able to leave more and more driving tasks to their cars, so that they may be productive while queuing in morning traffic, or just relax and enjoy the view. But it is likely that most of the traditional car makers will continue to enable their customers to take matters in their own hands whenever they want to, autonomous car or not. On a winding Tuscan road, for instance.

FLEET EUROPE #83

INNOVATION

UNDER THE BONNET HOW A SELF-DRIVING CAR WORKS

GPS

tells the car its position, heading, speed and altitude

LIDAR

(Light detection and ranging)

VIDEO CAMERA

(detection of traffic lights and road signs)

ACTUATORS

are the ‘hand and feet’ of the car and respond to the electronic signals sent out by the car’s computers.

SENSORS

are key in the operation of the autonomous car.

They register key data, on the basis of which the car creates a 3D picture or its surroundings.

60 The average number of sensors a modern car needs to operate. Most of them are related to engine operation, emission controls, brakes and safety features.

10-15 The number of extra sensors a self-driving car requires compared to a standard car without advanced active safety features such as AEB.

A.I.

or the digital brain of the car interprets the data coming from the sensors and GPS, communicates with other vehicles and/or the infrastructure and responds to the situation by giving commands to the actuators.

THE BIGGEST TECHNICAL ADVANTAGES 1. Increased interior flexibility and freedom of design 2. Higher fuel efficiency, less wear and tear, as the car optimises its own operation 3. Improved passive safety, presuming that new design leads to better protection

THE BIGGEST TECHNICAL CHALLENGES 1. To establish a reliable, unequivocal and comprehensive communication protocol, both car-to-car and car-to-infrastructure.

2. To find enough space in the radio spectrum for this communication 3. Modification of the road infrastructure to allow autonomous cars to operate optimally

THE BIGGEST SOURCE OF INSPIRATION Aviation. Airlines and airplane manufacturers have valuable experience in automation of airplanes and tested them thoroughly to ensure they work in all conditions.

FLEET EUROPE #83

39

REMARKETING

Extended warranty impacts RV Frank Jacobs @FrankJacobs

Remarketing is a lot like haute cuisine: it's a complex business, and if you neglect even the slightest ingredient, the result could be less than delicious. The trend towards warranty extensions is one of those smaller remarketing ingredients, but it does have a measurable impact on residual values (RVs) – and on lease prices.

A growing number of car manufacturers are extending the warranties on their vehicles.

It's becoming increasingly common for them to increase the traditional twoyear warranty to three years. Outliers are Toyota and Hyundai, which have extended their warranty to 5 years, and Kia, which has gone as far as 7 years.

VEHICLE COMPLEXITY It's accepted wisdom to interpret these extensions as proof that overall vehicle quality is improving. In which case, “warranty extensions mainly are key attempts by car makers to improve customer loyalty for their network support”, say experts at Arval Italy – without forgetting that “we have to consider the real warranty coverage – i.e. the limits of actual warranty application”.

However, says Maarten Baljet, International Sales Director at RV forecasting and consultancy expert BF Forecasts, warranty extensions could also be seen as proof of increasing vehicle complexity: “It is worth looking at the number of recalls and to assume that the number of recalls is still increasing. Therefore, obviously the new cars are getting more and more complex, at least electronically. So maybe the extended warranty is not only a marketing issue, but also a real necessity (for OEMs) to cover

40

problems that may occur with the car over a longer period”.

RV IMPACT So, in practical terms, how do these extended warranties influence RVs? “Usedcar buyers are likely to pay more because these extended warranties provide them with cost certainty and peace of mind that all, or at least most, of the potential parts costs are covered”, says Michael Kleber, Product Manager for Consulting Services at Automotive Intelligence and Consulting, a part of EurotaxGlass's Group.

But of course, the impact of extended warranties varies, according to a number of conditions, including the model of the car and the type of warranty offered. “For example, an OEM-based extended warranty is likely to secure a larger increase in RV than a manufacturer's warranty that is provided through a third party”, says Kleber.

“Analysis undertaken by EurotaxGlass's in Germany found that when manufacturers introduced extended warranties, the improvement could be as high as 6% for an OEM-based offering (see box)”.

Mr Baljet concedes there might be slight improvements due to warranty extensions, but “(it) is still one of the minor drivers.

FLEET EUROPE #83

REMARKETING

Car buyers are mainly focused on manufacturers with a high reputation rather than the ones with a long warranty. The Minis, BMWs and Mercedes of this world have the better RVs. However, for other manufacturers with much longer warranties, the guarantee is a solid way to stay in the focus of the commercial buyer and attract private customers at the same time”.

“As most of the leasing demand is for manufacturers with a very good image and/or design, we only see an (RV) improvement for Hyundai cars, because on the one hand, they offer a regular manufacturer warranty over 5 years and on the other hand, their cars are getting more attractive with regard to design and brand name”.

LEASE PRICE IMPACT If there is a positive impact of extended warranties on RVs, however minimal,

surely that must mean that beneficial effect eventually filters back into the lease price?

Perhaps, but certainly not in all cases, the Arval Italy experts point out: “There are too many factors that could have an impact on the warranty application. In case of longterm, full-service rental contracts, we need to consider the mileage limit that also limits warranty coverage. In fact, we have mileage averages greater than 100,000 km at the end of long-term contracts. That's why many cars and their potential issues fall outside of warranty coverage anyway”.

Mr Baljet agrees: “When it comes to lease prices, longer warranties can help sharpen pricing. However, compared to other cost types, the effect will be rather small, especially when taking into account the leasing term of three years”.

UP TO €1,500 INCREASE IN VALUE In cases analysed by Automotive Intelligence and Consulting, “the RV improvements from introducing extended warranties have ranged from 2% to 6%”, says Michael Kleber. “Depending on the model in question, this can reflect an increase in value of between €120 and €1,500 when compared to previous models that did not have extended warranty. Importantly, RV improvements are only achievable if the warranty is transferable to second and third owners”.

Hyundai's five-year manufacturer warranty – combined with its rising design and brand appeal - has led to an improvement of its residual values

FLEET EUROPE #83

41

REMARKETING

The news shelf FRENCH USED CAR MARKET UP IN 2015 The French used-car market was up slightly in 2015, rising 2.11% to regain the volume it had in 2007, before the financial crisis hit. AutoScout24, which released the figures, even lauded 2015 as a record year. In all, 5,562,164Â used cars were sold in France last year, virtually the same as the previous record year, 2007, in which 5,570,770 used vehicles were sold.

Among them, petrol-powered used cars gained 1% market share to the detriment of diesels.

French brands occupied the Top 3 on the used-car market. And the average age of used cars increased to 8.9 years. Most used cars were bought and sold in France's rural areas.

MINI IS USED CAR OF THE YEAR The MINI hatchback has been chosen as Used Car of the Year 2016 in the Netherlands. It’s the first time any car model has been crowned most popular used car. The accolade was announced at the Driving Business Remarketing event, organized by the magazine Automobiel Management. The Toyota Yaris came in on second place, brand mate Aygo came in third. The cars were jury-selected from a list of 25 models, nominated on the basis of their popularity with Dutch consumers.

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

42

FLEET EUROPE #83

REMARKETING

UK USED-CAR MARKET TIPS INTO OVERSUPPLY The UK used-car market has reached its long-predicted tipping point into oversupply. The volume of vehicles at auction already increased 3.7% in 2016, with a wide range of models starting to fall in value, says Rupert Pontin, Head of Valuation at Glass's. “We expect this period of general oversupply to continue throughout the rest of the year and into 2017, as increasing number of vehicles come to market”, says Pontin. “A large number of these are of course 1- to 3-year-old returns from the ongoing boom in Personal Contract Purchases (PCPs)”. Pontin does not foresee a sudden collapse in values, “but there will be a slow decrease as volumes gradually increase”. However, those increasing volumes will be very much concentrated on a limited range of models. Niche vehicles will stay relatively firm.

About the EU referendum in June, Pontin points out: “If the UK votes to leave the EU, it will be very difficult to predict the effect on new and used-car markets.”

3.3 MILLION USED UK CARS WARNINGS Up to 3.3 million used cars sold in the UK last year had at least one warning against them.

That’s almost half of the 7.2 million total. So says My Car Check, based on its own data collected in 2015. No less than 46% vehicles checked by the company last year were found to have at least one warning against them. A report by My Car Check lists the manufacturers most likely to have write-off, finance or stolen warnings against them, as well as other statistics on the dangers facing used-vehicle buyers.Top warnings against used vehicles are: plate transfer (48%), write-off (28%) and finance (13%).

SALES RECORD FOR CARSONTHEWEB Online used car sales platform CarsOnTheWeb has sold a record number of vehicles in the first quarter of this year in the Netherlands.

Volume was up more than 30% year-on-year, allowing the company to adjust its annual sales prognosis for 2016 upwards to 14,000 transactions. Since 2013, leasing has represented a significant part of CarsOnTheWeb’s total volume, but the company has started focusing on other segments, such as dealer holdings and fleet owners, broadening its supply base. An added focus on exports has also increased volume. CarsOnTheWeb has offices in Belgium, Italy, Germany, France, Spain, and the Netherlands.

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 #83

43

BUSINESS

We will surprise the market Steven Schoefs @StevenSchoefs

Fleet sales proved an important contribution to Opel's excellent sales figures for Q1 2016, and the new Opel Astra has been crowned Car of the Year 2016 in Europe. Not a bad starting position for Wolfgang Stahl, who took over as Opel's Director for European Fleet Sales from Ian Hucker on 1st January. “We don't want to rely on strong products alone, we want stronger customer relationships”.

What are your main goals for corporate fleet?

Firstly, to have a successful launch for all our new models. We have two launches with an important fleet angle later this year: the new Zafira and the new Mokka X. Our Ampera-e will be an image builder, an electric car with a range that will surprise the market. These product launches will bring their full effect with continuing our efforts to increase our customer relationships. I am convinced we are recognized as being “Approachable” with a high willingness to listen to our customer needs.

Secondly, we will continue our business approach in LCV. We increased the capacity to meet the strong customer demand for our “winner model” Vivaro. We also established Pan-European agreements with high quality converters enabling us to offer individual converter solutions with Pan-European availability. We now bring that opportunity into the dealerships and into the customers' understanding.

A third focus is the launch of the new captive. We will start expanding the product portfolio and service offering of GM Financial in Germany into full-service leasing offers - because that's what our customers are asking.

Will you roll out the German solution to other markets?

Opel is looking at the mobility development trend together with partners. “For example, our telematics teams are working with insurance companies to develop solutions based on the connected car”, says Wolfgang Stahl.

44

Take Belgium for example, where private lease is growing fast. We tested how retail customers would react via a special campaign with LeasePlan and Media Markt. Very positive, it turned out, so we developed as well a private lease solution with our white label partner, ALD Automotive. We are looking for

what the customer needs. We want to be a mobility provider, not a classic OEM. With both passenger cars and LCVs in your portfolio, is it possible for corporate fleet customers to have a one-stop shop approach?

On the sales side, we're keen on the one-stop shop approach to support the customer. We don't operate in separate silos. Look to any local organisation, we'll have a LCV manager strongly included in the commercial activities. So yes, we offer one customer contact point for LCVs and passenger cars.

Opel has recently launched a range of services for LCVs. What exactly are you offering?

Last year, we launched a 'House of Conversion', where we are doing factory-close conversions with some of our partners. But we also have a strong focus on pan-European converters, so a customer can have a single-invoice solution certified by us. We also offer two-invoice certified solutions. And the fourth one are local solutions because of specific needs in the markets. In short, conversion is a strong growth opportunity for us – especially now we can offer pan-European solutions.

How do you see the trend towards mobility evolving?

All players in the commercial arena – rental and leasing companies and OEMS – need to come together to find an answer to the unstoppable change that is coming: pay per use. OEMs alone can't do this. So we're looking for partners. For example, our telematics teams are working with several companies to develop solutions based on the connected car.

FLEET EUROPE #83

BUSINESS

3 Questions to…

Alessandro Pigazzi

10th edition

Fleet Europe Taxation Guide 2016 GET A 360° VIEW ON COMPANY CAR TAXATION IN EUROPE

Steven Schoefs @StevenSchoefs

6 COUNTRIES

23 COUNTRIES

LUXEMBOURG

ONLINE:

AUSTRIA

NETHERLANDS

BELGIUM

NORWAY

CZECH REPUBLIC

POLAND

DENMARK

PORTUGAL

LATVIA

FINLAND

ROMANIA

LITHUANIA

FRANCE

RUSSIA

GERMANY

SPAIN

GREECE

SWEDEN

HUNGARY

SWITZERLAND

IRELAND

TURKEY

ITALY

UNITED KINGDOM

BULGARIA ESTONIA

ALESSANDRO PIGAZZI Arval

SLOVAKIA SLOVENIA

On 1 April 2016 Alessandro Pigazzi became director of the International Business Office at Arval.

How important is international business for Arval?

It was already key, and has become even more prominent now following the acquisition of GE Fleet Services in Europe in Europe: it represents 25% of our overall business. The IBO manages roughly 200 international clients via international framework agreements. And the number keeps rising.

How will you drive IBO business forward?

We're able to respond to these needs better than ever before, thanks both to the strengthening of our team, the integration of GE Fleet Services activities in Europe, and to the Arval-Element Global Alliance.

We have several key assets: Our international coverage with our footprint in 50 countries. But also, our global value proposition, and by a set of products and services harmonised with our Global Alliance partners.

We now have over 30 people in the IBO team, with qualities above and beyond account management. That goes from, day-to-day customer relationship and reporting on KPIs, to the support on the implementation of the international contract not to mention benchmarking and support on company car policy harmonisation in full synergy with our Consulting unit.

The IBO is an Arval division. How do you collaborate with your Global Alliance partner Element?

Thanks to the guidelines we put in place, we are capable to provide a single point of contact for the Global Alliance clients and prospects depending on the origin of the lead and the client's wishes. That is either the IBO team in Europe or the equivalent Element team in North America. This single point of contact will pilot the global business relationship in synergy with all the entities concerned. We'll continue to strengthen our global capabilities further by appointing dedicated resources to follow up closely the cross-selling opportunities between both parties and better respond to our clients demand to ease the globalisation journey.

FLEET EUROPE #83

We proudly present the 2016 taxation Guide, a structured overview of all relevant info on company car taxation in no less than 23 countries in Europe, developed in close collaboration with the network of PwC. This 10th edition of the Fleet Europe taxation Guide is the best instrument on the market to make the right tax choices for your company car fleets across Europe.

The printed version provides you with a comprehensive overview of company car taxation in 23 European countries, and 6 other countries are available online.

Don’t miss this market reference on company car taxation!

GET IT NOW AT shop.nexuscommunication.be

SPONSORED BY

IN COLLABORATION WITH

45

ADVERTORIAL

BUSINESS

CONCEDED EDITORIAL SPACE

Mileage capture – key to fuel costs

Connectivity supports mobility Antigoni Vokou @Antivokou

WHY IT MATTERS High-quality mileage data makes control over fuel costs possible. Use data from mileage capture to benchmark your fleet's performance, create goals for improvement and set Key Performance Indicators to measure progress.

THE MANAGEMENT INFORMATION YOU NEED • The split between business and private journeys whilst maintaining privacy • Details about each business journey (for audit and tax purposes) • Actual fuel consumption figures (calculated from km/ mileage capture information and fuel transaction data) • Actual fuel cost per kilometre THE PERFECT SOLUTION TMC’s consolidated fuel management solution provides you with completely transparent data on business and private mileage for individual journeys, real-world fuel efficiency and costs-per-kilometre. This will maximise visibility and increase your control over fuel costs.

WHAT TMC'S SOLUTION ALLOWS YOU TO DO 1. Identify drivers who claim for too many kilometres, or whose fuel purchases do not match their stated kilometres.

2. Identify claims rounded up to the nearest ten kilometres. If more than 10% of a driver’s trips end in zero, they are almost certainly exaggerating.

3.

A nalyse the journey details logged by drivers to check that the distances are accurate.

4. Calculate 'real-world' litres/100km and CO2 data for all your vehicles.

5. Be safe. Identify employees whose km/miles implies excessively long journeys.

SCOPE AND SCALE TMC's solution covers every major area of business mobility – company cars, vans, HGVs, car allowance drivers, 'grey fleet' (business use of private cars), pooled cars and shared vehicles in all fleet sizes.

46

YVES BONNEFONT DS brand CEO

Yves Bonnefont, DS brand CEO, shares its vision on the many interesting changes car connectivity will bring in the near future and how it will impact fleet management.

How do you visualize the connectivity of tomorrow?

“More than ever, our mission is to give freedom and mobility delight to our customers. Connectivity will address three core issues: 1. Connected cars shall optimise drive times with real-time traffic analysis and increasingly sophisticated co-piloting.

2. Users expect a seamless integration of cars with their smartphone. At DS, we address this need on our full range with mirroring capability (e.g. with Apple Car PlayTM) and with a car “companion app” – MyDS – giving access to all our services.

3. Big data about car status and usage is growing and will enable multiple improvements in design, infrastructure safety through anonymous behaviour analytics. It will also offer the opportunity to users to subscribe to new services such as Pay As You Drive.”

How can fleet connectivity improve employee mobility and bring efficiency?

“DS is a front runner in fleet connectivity. All models are eligible to DS Connect Box, a telematics unit allowing the DS Connect Fleet Management programme. Its real-time connection to any fleet management platform lets companies reduce their cars’ Total Cost of Ownership by streamlining maintenance, fuel consumptions and CO2 emissions while improving vehicle dispatching thanks to geolocation.”

Safety is crucial. With what tools can company cars become connected and safe for their drivers?

KEY POINT Managing fleet fuel is about controlling cents-per-kilometre, not watching centsper-litre.

“When it comes to safety, connectivity can do a lot. It can reduce driver distraction e.g. with Mirror Screen technology, such as Apple CarPlayTM or MirrorLink® enabling drivers to control their smartphones with the car’s touchscreen or by voice. Connectivity can also take emergency actions in case of accidents, our factory-fitted DS Connect Box SOS & Assistance places automatic, geo-located calls to emergency units if airbag pops-up. Big data analytics can also help identify dangerous zone and decide the right infrastructure improvement measures.”

FLEET EUROPE #83

EXPERT

From Company Cars to Corporate Mobility As a new generation dominates the workforce, expectations on vehicle-based mobility are changing, as are the choices.

LUKAS NECKERMANN International Fleet Expert

HIGHLIGHTS The value of a company car as a perk has diminished, yet the relevance of vehicle based mobility in the corporate environment remains. The need to visit clients, patients, suppliers and partners is as great as ever.

Lukas Neckermann notes, "Companies are learning from Millennials, reevaluating their fourwheeled assets and are becoming more flexible. All over Europe, car sharing and ridesharing is beginning to play a larger role in moving people – and even goods – from A to B."

48

By 2020, Millennials will comprise over half the global workforce. Members of this Generation Y (and for that matter, Generations Z and Alpha) have a different understanding of value than their parents: they don't want the corner office, most certainly don't care about the potted plant and they can't be lured with the prospect a company car. With a higher rate of urbanisation, they desire flexibility in life, a career on their own terms and mobility on-demand. They are a generation that has grown up with PCs, smartphones and being able to command "stuff" online and immediately – be it books, food, or transportation. They may even have arrived at their first job via Uber.

countries. We conducted over 50 fleetmanager interviews and consulted with experts across Europe, the US and China to evaluate the potential for corporate car sharing and multimodal mobility cards.

In short, it's an exciting time to be a fleet manager, travel manager or finance director; the time is ripe for creativity and new approaches.

In a PWC study of Millennial graduates, only 4% rated a company car as the perk they desired most – behind a greater vacation allowance and flexible working hours.

In their professional lives as at home, an overall preference for flexibility and on-demand access to mobility trumps a shiny set of parked wheels.

Among others, I have seen examples of organisations that: • Have replaced their entire fleet of poolcars with corporate car sharing, • Have signed dozens of employees up to public car sharing schemes, • Have amended their company policies to allow peer-to-peer sharing of company cars (effectively allowing the employee to earn some extra money from the idle asset), and • A llow managers to choose alternatives to company cars, that might include mobility budgets via car sharing and ridesharing companies (such as ZipCar or Ubeeqo).

Either encouraged or forced by this new wave of thinking about mobility among their staff, companies are also considering their own use of assets – whether it be the valuable real-estate wasted on parking spots, company funds locked in fleets that sit idle 95% of the time, the company cars that are no longer perceived as a perk, or the utilisation rates of their pool-cars.

Fleet managers have told us of increasing pressures to maximise utilisation of vehicle assets – including when staff are on holiday or travelling. This has led to considerable creativity (multiple keys issued, better use of space in commercial vehicles), but also to exploration of technological options, including corporate car sharing, such as via AlphaCity, Ubeeqo and Enterprise.

Over the past months, Progenium Strategy Consultants and I have conducted an extensive study on the use of corporate mobility alternatives across five European

Many of their – especially city-based – staff is already very familiar with car sharing, as they might already be a member of ZipCar, DriveNow or car2go.

FLEET EUROPE #83

EXPERT

More and more fleet managers explore corporate car sharing via AlphaCity, Ubeeqo and Enterprise says Lukas Neckermann.

Organisations generally go thorough a thorough analysis before abolishing greyfleet usage, reducing company cars, or (more likely) replacing their pool-car fleets. While Corporate Car sharing has the potential to lower costs and increase asset-utilization rates, it's not for everyone.

We found three key criteria most important in evaluating an organisation's suitability for car sharing: 1.

The location of organization: companies with extra-urban locations – usually just at the outskirts of cities – that could use it for quick trips in and around the city found it most useful.

2.

The availability of alternate vehicle concepts – do employees have access to taxis (or Uber), public transportation?

3.

The individual mobility mix of the users within the organisations – do staff use multiple modes of transportation to get to work? What types of trips do they do?

Other factors that influence adoption were geographic structure, mobility infrastructure, company car taxation policies, and societal norms toward company car ownership. All considered, the research team

FLEET EUROPE #83

found Germany, France and the Netherlands most open toward corporate car sharing.

Except in Germany – which still lags behind in establishing electric-vehicle infrastructure and incentives – organisations that have implemented corporate car sharing also disproportionately opt for electric vehicles, especially since car sharing trip-lengths are ideally suited for the range of electric vehicles available today.

Does this mean it's beginning to be the end of the company car? Perhaps. But while value of a company car as a perk may be going down, the relevance and need for vehicle-based mobility in the corporate environment remains. The need to visit clients, patients, suppliers and partners is as great as ever.

And in a wonderful paradox to the Millennials, the members of the younger Generation Z actually choose "facetime" over "screentime" as their preferred form of communication, indicating that the need to get from place to place will only increase as they begin to join the workforce.

49

ANALYSIS

The true cost of insurance Jonathan Manning

Any calculation of vehicle wholelife costs needs to include insurance, but establishing an accurate figure is difficult.

5-25% WEIGHT OF INSURANCE IN THE TCO

33%

INSURANCE PREMIUM TAX RATE IN FRANCE

Fleet experts agree that insurance is a critically important element of total cost of ownership calculations, but reaching a consensus on what proportion it represents is far more challenging, with projections ranging from 5% to 25% of TCO.

lower residual value of a vehicle showing signs of collision damage? What is the cost of internal resource to manage insurance policies, claims and accident management? And most significantly, what is the shortfall in business from employees not being able to work?

Several factors explain such a wide variance, including debate over what to include as an insurance cost, widely different premiums, a spread of TCOs from country to country, plus local insurance taxation rates. In France, for example, insurance premium tax is a punishing 33% while it drops to 0% in Poland.

“Depending on the covers subscribed (Third Party Liability only, fully comprehensive…) and the risk profile of the fleet, on average between 5 to 15% of a company car’s TCO would account for insurance,” said François Salzedo, Arval Insurance Director.

Above all, any meaningful assessment of insurance costs should be done over a number of years, rather than measured simply by premium, in the same way that experience rather than forecast is the real judge of TCO, said fleet expert Tony Elliot.

Indeed, the focus on premium is potentially misleading, particularly with many large fleets paying a nationally flat premium per car, regardless of make, model or driver profile, in stark contrast to the private motoring insurance market. As a crude measure, this would make insurance a much larger element of TCO for a cheaper car than an executive car.

In this environment, particularly when it’s possible to fix premiums for three years as part of a leasing agreement, fleets that want to investigate their total cost of insurance in a bid to understand their risks, reduce them and ultimately drive down the total cost of insurance.

50

In this situation, how does a fleet put a value on vehicle downtime during repairs? How much do replacement vehicles cost? What is the cost in terms of lost business to a company from a specialist vehicle not being available while it’s being repaired? How do fleets factor in the

Hessel Kaastra, Managing Director LeasePlan Insurance, put the figure slightly higher at 10-15% of TCO, underlining that this is for the Total Cost of Ownership, but cautioned that this does not include the indirect costs associated with insurance, “Like the administration of issuing renewals and terminating policies or handling invoices when you have different suppliers.”

He also highlighted indirect costs that arise from accidents such as losing time, having damaged goods and missing appointments and process inefficiencies that can arise if the insurance is not packaged into the fleet policy.

“So for us we consider it best practise to analyse these indirect costs when you look at total costs, instead of focusing just on the premium and the cost of insurance,” said Kaastra.

“You cannot look at the total cost of ownership without looking at insurance. It’s an integral part of TCO of your fleet. Ultimately insurance is driven by premium which is driven by driver behaviour, and driver behaviour not only influences the cost of the premium, but also your fuel consumption and CO2 footprint, so if you really take a look at TCO and the impact of your fleet and company they are all inter-related.”

FLEET EUROPE #83

ANALYSIS

Self-insurance depends on fleet size Jonathan Manning

Multi-national corporate fleets have a wide variety of options when insuring their vehicles, and a policy that works in one market may not work for all.

Multi-national fleets face a raft of strategic decisions when determining the optimum insurance policy for their vehicles. It’s a process where the upfront price of a premium is only a small element of the total cost, and where access to robust claims data can point the way to future risk management initiatives.

A proliferation of insurance products and services are available to multi-national fleets, but in broadbrush strokes the principle choices concern the degree of risk that a fleet is prepared to accept, and the type of partner with which it would like to work to cover this risk, manage claims and improve its accident record.

The simplest approach is to purchase insurance as part of a lease agreement, a solution with numerous operational efficiencies for both driver and fleet manager.

For the company car driver, “the entire process for A to Z, from the accident occurring to the driver contacting the leasing company is a onestop-shop,” said Marc van Eck, senior business development manager, ALD International.

© Aon Risk Solutions

“It’s not different areas to be contacted, and there’s no confusion in what can be an emotive situation once an accident has taken place. You want to make the process as smooth and efficient as possible for the driver.”

Eric Scrayen, “For a panEuropean fleet, one solution does not fit all markets.”

52

Van Eck added that by linking insurance directly to individual car leases, leasing companies can set vehicle-specific premiums, based on the individual risk and repair charges, rather than charge a flat premium per car as is common in many large corporate fleet policies.

“The premium is based on a combination of the list price, fuel type, mileage driven, so a BMW

will vary from a Renault to a Volkswagen. We would itemise insurance to the car, it’s a more transparent way of doing it,” said van Eck. Bundling insurance with lease rentals also delivers process efficiency benefits for fleet operators, including the simplicity of a single invoice, said Hessel Kaastra, Managing Director LeasePlan Insurance. He also points out that "fleet management companies are best suited to help companies with accident prevention", as fleet management companies have intense interaction with fleet managers and company car drivers thoughout the year.

“We can issue, terminate and renew the insurance policy in accordance with the length of the lease, so rather than having an annual process of issuing policies and terminating policies or renewing policies, we just issue it when the car is being put on lease and we terminate it when the lease is terminated. The interim processes are taken care of in the background,” said Kaastra.

“You also have a settlement at the end of the lease which is easier because we are the owner of the vehicle. We estimate that the benefits of ‘process optimisation’ can save up to Euro 250 per vehicle per annum when you bundle insurance with leasing.”

At insurance giant Zurich Global Corporate, head of motor Steve Stock acknowledged the convenience of including insurance with lease rentals for organisations that prefer outsourcing to employing specialist fleet and risk management staff.

But he added that many major corporates are looking for a more sophisticated approach than simply paying to transfer the risk to a

FLEET EUROPE #83

ANALYSIS

third party. These fleets are prepared to retain a degree of risk themselves, effectively self-insuring their own damage claims.

“They have a lot of risk management in place, and they want to drive some of the cost of risk and ultimately cost of ownership out of the business,” said Stock.

These fleets work in tandem with the insurer to analyse detailed claims reports from across the continent, and then put in place locally-appropriate risk management policies. They will also generally buy a stop-loss premium from the insurer to limit the maximum costs of any one claim.

where the fleet operation is small (fewer than 100 vehicles) insurance through an insurer or leasing company is more likely to make sound business sense because of the cost associated with employing specialist claims and risk management staff and the lower number of vehicles across which to spread the risk.

“As a broker we are fully independent and so have no conflict of interest when we advise a client to take more or less self-insurance,” said Scrayen.

I NSURE VERSUS SELF-INSURE FOR OWN DAMAGE “If the fleet manager or risk manager is quite close to the operational side of the fleet, then they will want to know more about the insurance programmes, their structure, what claims management is in place, and more importantly what risk management is in place to reduce the probability of having a collision,” said Stock.

The graphic shows the different elements that add up to the total cost of insurance. The proportions will differ from country to country, due to variance primarily in repair costs and insurance premium taxation, but they do illustrate where savings are available to a fleet prepared to take more risk with its own damage costs.

It’s important to note that the cost of the damage is the same in both examples. The difference in both cost and savings available to a fleet lies in the premium paid to accept more or less risk, and the IPT charged on this. It also assumes that the fleet can recover VAT.

“That’s the power and benefit of an insurer coming in and producing those kind of programme structures because it’s more about risk management than just off-loading the risk by a guarantee risk cost transfer.”

Building on this theme, Eric Scrayen, director automotive & logistics, Aon Risk Solutions, said larger fleets should treat own damage claims as a ‘budget’ rather than a risk, and treat self-insurance as a predictable cost, so long as they have accurate claims data. But he added that no single insurance solution was likely to suit a multi-national fleet in each of the countries in which it operates.

Instead, while investigating the opportunity for volume benefits, fleets also have to assess the optimal level of risk transfer at both a local and global level, the volumes and spread of their different fleet operations across Europe, the types of vehicles they run, and the variances per country in terms of legislation, taxation and local practice.

As a rule of thumb, Scrayen suggested that in territories where a fleet operates 500plus vehicles, and particularly in countries with a high insurance premium tax, selfinsurance is cost efficient. But in markets

FLEET EUROPE #83

Traditionnal MOD insurance Gross Premium

Self Insurance

VAT 100%

4 IPT

Profit Client

3 Insurer Profit Margin

2

Commission Costs

Stop Loss Premium + IPT Service Fees Costs

1 Losses

Losses

The left column represents traditional, outsourced insurance where a fleet pays an insurer to take the Motor Own Damage risk. On the plus side, it’s a fixed, budgeted cost, but it also has to include a profit margin for the insurer as well as IPT. The right hand column represents self-insurance. The cost of repairing the damages is the same, but this time there’s very little IPT to pay, and no profit to the insurer. The ‘Service Fees’ and ‘Profit Client’ elements do, however, have to cover the cost of employing staff or an external expert to manage claims and the repair process.

The higher the IPT and the bigger the fleet, the more attractive self-insurance becomes.

53

ANALYSIS

A pan-European premium is an ideal Jonathan Manning

INSURANCE MARKET AT A GLANCE INSURERS Allianz Insurance giant with close ties to the automotive industry. Present in 70 countries worldwide.

American International Group Covers 10 million vehicles globally, and is represented in 130 countries.

Zurich Delivers products and services in more than 170 countries.

Axa Has operations in 59 countries.

Euro Insurances Established in 1994 as motor insurance company of LeasePlan.

Today it has activities in 23 countries.

BROKERS Aon Present in more than 120 countries, is the largest global manager of captive insurance companies.

Marsh Present in 130 countries, offers specialist accident-management, driver training, and fleet risk control services.

Gras Savoye Has offices in 50 countries.

Its portfolio includes insurance for 55,000 vehicles.

54

Varying local risks, taxation rates and repair costs prevent fleets from paying the same premium for the same vehicle in different countries.

Close inspection of pan-European insurance data exposes the wide variety of cost, risk and taxation that prevent the offer of a pan-European premium.

country basis, in the local currency, taking into consideration precise risks factors, market practices, local regulations and tax regime,” added Salzedo.

The information, published at the end of last year by Insurance Europe, the organisation which represents national insurance associations in 34 countries, covers all motor claims, not just fleet, and is based on the policies and claims of 334million vehicles, insured by about 1,000 companies in 2013.

The EU Motor Insurance Directive dictates that all vehicles must be covered for motor third-party liability (MTPL) for both bodily injury and physical damage. This accounts for about 58% of motor premiums, and varies widely from country to country (see Graph 1).

“Motor insurance premiums are related to risks covered, accident frequency, body injuries indemnification, costs of repairs, deductible practice, regulations and tax level, which vary dramatically from one country to another, even within Europe,” said François Salzedo, Arval insurance director.

Insurance Europe, for example, reported that the average cost of MTPL claims ranged from €1,200 in Portugal, to more than €5,000 in Italy and Sweden.

“A genuine pan-European policy would mean that some countries and clients would subsidise others, which is not only unfair and inefficient, but would raise major fiscal transfer pricing issues.”

With almost every multi-national company operating national profit and loss accounts, expecting one country’s fleet to cross-subsidise another would require a level of local compliance beyond what is commercially and politically reasonable.

“Practically, motor insurance premiums have to be calculated on a country-by-

“The reason for this is the legal environment and the cost at which bodily injury claims are settled,” explained Hessel Kaastra, Managing Director LeasePlan Insurance.

While the number of bodily injury claims accounts for fewer than 14% of all MTPL claims recorded by European insurers, these incidents represent 48.4% of all claims expenditure, with a European average cost of €15,970. According to Insurance Europe, the average cost of bodily injury claims ranged from less than €4,500 in Estonia, Turkey and the Czech Republic to more than €20,000 in France and Greece, reflecting differences in the costs of medical treatment and in compensation practices (see Graph 2).

FLEET EUROPE #83

ANALYSIS

1-T AXATION FOR MOTOR THIRD-PARTY LIABILITY (MTPL) IN 2014 Taxation of MTPL insurance - 2014 50% 45% 40% 35%

This meant bodily injury risk accounted for €3 in the average annual insurance premium in the Czech Republic, compared to €177 in Italy. Adjusting these costs according to local purchasing power does reduce the disparity a little, but stark difference between countries remain.

30% 25% 20% 15% 10% 5% 0%

The second principle element of insurance is the optional ‘own damage’, which protects vehicle owners from the risk of having to repair their own vehicle, as well as loss through theft or vandalism, and damage from natural disasters. Again, the cost of the average claim varies widely across Europe, ranging from less than €600 in Turkey and Greece to more than €1,800 in Sweden, with a continental average of €1,273 (see Graph 3).

Accident frequency, as well as the cost of labour and spare parts explain the broad spread of prices.

Indeed, Insurance Europe’s statistics expose how driving can be far more dangerous in one country than another, due to local driving habits, density of traffic, severe weather conditions, and investment in road safety initiatives. The frequency of MTPL claims, for example, vary from almost 2.5% in Finland to 9% in Austria, said Insurance Europe, while damage claims frequency varies from 9% in Sweden to more than 30% in Estonia and Turkey.

RO CZ LU CY

LI

CH

IS

UK SK

ES

SI

AT MT

IT

GR FR HR DE NL

FI

BE

PT HU SE DK

2 - AVERAGE COST OF BODILY INJURY CLAIMS

BY COUNTRY 2008-2013 Average cost of bodily injury claims by country30 - 2008-2013 (€) €

€35 000

€30 000

€25 000

€20 000

€15 000

€10 000

€5 000

€0

GR

FR

NO

IT

AVERAGE DE FI HU 2008 2013

SE

PT

EE

TR

CZ

3 - AVERAGE MOTOR DAMAGE CLAIMS COSTS

BY COUNTRY 2011-2013 Average motor damage claims costs by country - 2011-2013 (€) €

€ 2 000 € 1 800 € 1 600 € 1 400 € 1 200 € 1 000 € 800 € 600 € 400 € 200

FLEET EUROPE #83

2012

GR

TR

CZ

HR

SI

AT

HU

PT

PL

2011

FR

FI

NL ER AG E AV

IT

DE

NO

SE

€0

SK

Torbjörn Magnusson, vice-president of Insurance Europe, said, “Differences in motor insurance premiums across EU member states are sometimes perceived as being inconsistent with the ideal of a single EU market. However, this diversity in premiums reflects the factors that affect claims costs. These are tied to a member state’s regulatory, socio-cultural and economic environment. Insurers must account for these factors when calculating premiums in order to build appropriate financial capacity to cover their risks.”

2013

55

ANALYSIS

Focus on the causes of accidents Jonathan Manning

For a long-term reduction in insurance premiums it’s better to work towards accident avoidance rather than simply cutting the cost of vehicle repairs.

It’s an over simplification, of course, but the cheapest accident is the crash that doesn’t happen, the vehicle damage and personal injury avoided. Yet in busy fleet offices, it’s all too easy for fleet managers to focus on cutting the cost of claims, reducing repair costs and minimising vehicle downtime, rather than driving down claims frequency.

Analysis of the information gathered from accidents, however, can identify the risks that a fleet needs to address to improve its claims ratio – the number of incidents per vehicle per year – and consequently cut the cost of its insurance.

Claims ratios can vary from 10% to 100% (effectively each vehicle involved in at least one collision annually), said Steve Stock, head of motor, Zurich Global Corporate.

Such wide variance can even appear between the same company’s fleet in different countries, he said, adding that multi-nationals with a genuine commitment to risk management can benchmark their national operations and transfer best practice from one country to another. But this requires the support of a company’s most senior management.

“It becomes powerful when motor insurance is discussed at board level. That’s when companies might get traction in spreading the word across different countries,” Stock said.

Often fleet managers prefer cutting the cost of claims and repair instead of driving down claims frequency.

56

Gap analysis of accident claims and fleet policies for their drivers, vehicles and business journeys can reveal the causes of both higher frequency and higher cost accidents. His experience suggests that it’s most likely to be a business’s operational plan that creates the risk.

“Is it something inherent in the driver population or is it the way the fleet is operated?” asked Stock. “What pressures are being brought by the organization?

For example, if you have a sales force and expect it to make six calls a day in a wide area then they are going to be on the road a lot. So can you reduce the area they work in? Or the number of calls they make so it’s more conducive not to have a crash? The more miles you do the more tired you get, and fatigue is the main cause of collisions these days,” said Stock.

Indeed, while it might be tempting to specify automatic emergency braking and lane departure warning systems on company cars in a bid to deliver improvements in claims records, companies should focus on drivers not vehicles, said François Salzedo, Arval insurance director.

“Because such active safety features tend to reduce marginally frequency and severity of accidents, insurance premiums levels have slightly decreased in most geographies,” he said. “However, an actively promoted road safety programme towards company drivers, will ultimately be even more efficient and differentiating.”

It’s even possible to differentiate between the risks posed by individual drivers, added Marc van Eck, senior business development manager, ALD International.

“Online driving programmes are very good at assessing whether it’s an average driver or a high risk driver, and based on the outcome of that you can the appropriate action, such as having selective driver training,” he said.

FLEET EUROPE #83

ADVERTORIAL

CONCEDED EDITORIAL SPACE

Kia Niro – stylish and hybrid the cool, modern styling for which Kia is famous, and an efficient new hybrid powertrain to keep running costs down. As fleet drivers are more and more demanding the practicality of the new breed of crossovers – but with style – and fleet managers are looking for the most environmentally friendly vehicles to meet company targets, the Kia Niro is set to be the perfect answer.

The style crossover buyers have been waiting for

The next chapter in the Kia success story is about to hit European showrooms. Built on Kia’s first dedicated eco-car platform, the all-new Kia Niro will be available in the autumn of this year.

As with every Kia sold in Europe – will come with the brand’s unique 7-Year, 150,000 km warranty.

STYLISH AND ECOLOGICAL The Kia Niro fills a gap in the crossover market. The styling of the Niro was led by Kia’s design centres in California, USA and Korea and incorporates the practicality and aesthetic allure of a compact crossover, with a sleek, aerodynamic body and subtly sculptured surfaces.

In developing the Kia Niro HEV, engineering teams’ efforts have been principally focused on delivering class-leading fuel economy in the compact crossover segment.

Niro is designed to offer buyers a compelling blend of crossover practicality with

GREATER POWER AND EFFICIENCY The 1.56 kWh lithium-ion polymer battery pack is the lightest and most efficient pack used by Kia to date, with up to 50% higher energy density and 13% greater energy efficiency than the battery packs found in key rivals. Weighing just 33 kg, the Niro’s battery pack – with an advanced power relay – allows the battery to regenerate electrical energy under deceleration.

SAFETY FIRST Niro builds on Kia’s legacy of developing some of the safest vehicles on the road, offering high standards for occupant and pedestrian crash safety. Engineered to meet the demands of the toughest and most demanding crash safety tests around the world, the Niro features a strong bodyshell and a wide array of passive safety equipment, as well as the latest active safety and autonomous hazard avoidance technologies.

THE ALL-NEW KIA NIRO – SOME FACTS • 1.6-litre GDI (gasoline direct injection) engine + 32 kW electric motor • 89 grams/km CO2 emissions (target) • 105 PS / 77 kW + 147 Nm of torque (petrol engine) • 44 PS + 170 Nm of torque (electric motor) • Hybrid six-speed double-clutch transmission.

A bold stance, a purposeful look FLEET EUROPE #83

57

ANALYSIS

The right comparison Jonathan Manning

Does your fleet have more collisions than similar companies?

Benchmarking gives you the truth.

The free to use facility, developed by the Driving for Better Business campaign in collaboration with fleet organisations, aims to help fleets of all profiles and sizes to compare their own work-related road safety records against those of similar businesses as a step towards identifying where best to invest to improve road safety.

Adrian Walsh, director of the RoadSafe forum, said: “Benchmarking can be a highly effective way of improving road safety in a corporate setting. Knowing what is being done well helps to maintain momentum, but equally important is for fleet decision-makers to understand what can be done better. Identifying good practice and comparing it across organisations is enormously valuable and encourages often simple but innovative solutions to what may appear to be complex problems.”

The Fleet Safety Benchmarking programme has been deliberately set up to accept data

from different fleets in different countries, and by standardising the type of information collected, it paves the way to like-forlike comparisons.

“As a fleet manager unless you see comparative data you cannot possibly know what good looks like,” said Rory Morgan, head of logistics support, Western Europe, at document storage specialist Iron Mountain.

“Seeing where your fleet ranks against other operators provides targets to achieve and highlights where improvements can be made.”

Morgan revealed that Iron Mountain records every single vehicle incident, and that last year its average incident rate was 0.74 per vehicle. Reducing low speed reversing accidents, which accounted for 60% of collisions, is a priority for 2016. “Benchmarking promotes discussion and investigation and the sharing of best practice,” adds Morgan.

In the U.S., the Network of Employers for Traffic Safety (NETS) has a well-established fleet safety benchmarking operation, with more than 100 members, including The Coca-Cola Company, Johnson & Johnson, and Shell International Petroleum.

Together they account for a combined fleet of 609,000 vehicles in 146 countries and drive 11+billion miles a year. NETS allows fleets in similar industry sectors to compare their safety records against each other, although Mike Watson, global road safety manager of Shell, urged his fellow oil industry fleet managers to join NETS, “so they can gain a broader perspective on their performance against other companies and not just compare themselves with others in the oil sector.”

Does your fleet have more collisions than similar companies?

Benchmarking gives you the truth.

58

For more information, see www.fleetsafetybenchmarking.net and www.trafficsafety.org.

FLEET EUROPE #83

CAR OF THE YEAR 2016

The new Astra Sports Tourer with highlights of the luxury class: • IntelliLux LED® Matrix headlights • Hands-Free Liftgate • Ergonomic massage seat • Opel OnStar – your personal connectivity and service assistant The Car of the Year is an international award, judged by a panel of senior motoring journalists across Europe.

Fuel consumption combined 6.2–3.6 l/100 km; CO2 emissions combined 142–92 g/km (according to R (EC) No. 715/2007).

ANALYSIS

Driven to distraction Jonathan Manning

Employers need to establish robust policies to avoid the accident risk of company drivers using a mobile phone while driving.

New research from the United States reveals the changing risks faced by 21st drivers. For the first time, the cost of motor vehicle accidents involving a ‘distracted driver’ outstripped the costs of crashes involving a ‘drunk driver’.

wheel presents serious risks for insurers and employers. The US evidence provides an alarming insight into the pressures that drivers feel to stay engaged with their work and their social world while out on the road.

The report, funded by the National Highway Traffic Safety Administration, calculated that speeding resulted in $8.4 billion in crash-related expenses for employers, with distracted driving close behind at $8.2 billion. Driving under the influence of alcohol resulted in $6.0 billion in losses.

Moreover, new developments in car technology are making this even easier to achieve as the company car becomes a genuine mobile office. Opel’s OnStar, for example, fits a car with 4G LTE to convert it into a mobile Wi-Fi hotspot, allowing company car drivers to stay in touch, and be contactable by phone, SMS, email and even video conference, wherever they may be.

Only about 10% of these incidents involved employees while they were actually driving for work, but the fact that distractions now account for more crashes than alcohol is a sign of the times. Smartphones have transformed the ability to communicate remotely, but their use behind the

DANGERS OF DISTRACTION According to the World Health Organization, use of a mobile phone while driving impairs performance, leading to: 1. Longer reaction times to detect and respond to unexpected driving-related events.

2. Impaired ability to maintain correct lane position.

3. Slower braking reactions with more intensive braking and shorter stopping distances.

4. Impaired ability to maintain an appropriate speed (i.e. usually driving slower).

60

5. Slower reaction times to traffic signals and even /missed signals.

6. A reduced field of view (i.e. drivers more likely to look straight ahead and not at their periphery or in the mirrors).

7. Shorter following distances.

8. Accepting gaps in traffic streams that do not give sufficient time for the driver to safely manoeuvre the vehicle into the traffic flow.

9. Increased mental workload, resulting in higher levels of stress and frustration.

10. A reduced awareness of what is happening around them.

This connectivity does deliver significant safety benefits, but it presents employers with the challenge of establishing and enforcing a policy on the use of mobile technology while driving.

Most countries in Europe have banned the use of a handheld phone while driving, and Portugal is rare in going one step further by also prohibiting the hands-free use of a phone. Yet there is a growing body of evidence to suggest that any phone use while driving increases danger dramatically – there seems little point in having both hands connected to the steering wheel, if the brain is not engaged with the hands.

The SafetyNet Accident Causation Database, which collates data from Italy, Germany, Sweden, Norway, UK and The Netherlands reports that of 1,005 crashes investigated, 320 (32%) involved at least one driver, rider or pedestrian assigned the labels ‘Distraction’ and/or ‘Inattention’, and the EU currently estimates that distraction is a contributory factor in 10-30% of road traffic accidents.

The European Commission simplifies such distractions into three categories: visual – things that make drivers take their eyes FLEET EUROPE #83

In most European countries the use of a handheld phone is banned after evidence it increases considerably distraction while driving.

off the road; cognitive – causing drivers to think about other things; and manual – things that cause drivers take their hands off the wheel.

Some studies suggest that talking on a mobile phone is not as risky as the process of finding the phone and dialling a number, because the critical risk involves the time the eyes are off the road. But texting and emails demand long glances away from the road, and these appear, “to be strongly related to the risk of being involved in a crash or near crash,” said a 2015 study prepared for the European Commission by TRL, TNO and RAPP-TRANS. Other research, however, reports that the most important negative factor associated with using a mobile phone while driving, whether hands-free or hand-held, is the diversion of the driver’s attention from driving to the conversation. In one study, this distraction slowed the driver’s reaction times by 30% more than driving while under the influence of alcohol (BAC levels of 80mg/100ml).

The overwhelming evidence that use of mobile phones while driving increases accident risks has led a growing number of fleets to issue bans on both hands-free and hand-held devices while driving, as part of FLEET EUROPE #83

their work-related road safety strategies, said a report prepared for the European Commission by Jeanne Breen Consulting.

In the UK, fleets are awaiting the results of a Government consultation, which finished in March, about tougher penalties for driving while using a handheld phone. British Transport Secretary Patrick McLoughlin said: "Using a mobile phone at the wheel is reckless and costs lives - I want to see it become a social taboo like not wearing a seatbelt.

"The message is clear: keep your hands on the wheel, not your phone. If you keep taking calls while at the wheel, you could end up being banned from the road."

Meanwhile, the Royal Society for the Prevention of Accidents said, “Employers should provide employees with clear guidance on the use of mobile phones. In particular, emphasise that staff should never make or receive calls, send or read texts or emails or surf the internet on a mobile phone, or any similar device, while driving – let the phone take messages and return calls when stopped in a safe place.”

61

MANAGEMENT

The 10 Steps of Tendering Steven Schoefs & Tony Elliott @StevenSchoefs

An international tender aims to identify the right fleet partners for your company. But how exactly to you set up and roll out one? The answer to that question is one of the most hotly debated topics in vehicle fleet management. All too often, suppliers misunderstand their prospective clients' questions – providing answers that don't fit the expectations.

So the key is: ask the right questions, both in the Request for Information (RFI), and thereafter in the Request for Price (RFP). Most importantly: define what exactly you want to achieve. What will the right fleet partner have to focus on: cost reduction, driver satisfaction, sustainability, safety, compliance?

Equally vital is that potential suppliers fully understand your objectives. Have an in-depth discussion with them – that is much more effective than just producing a document, which may not even be in their native language.

Ahead of the tendering exercise, make sure you get a good overview of your own

business and current fleet. The tendering process is less daunting if you think of it as a succession of these 10 essential steps.

BUT FIRST: MEET BEFORE YOU TENDER If you want to achieve the best deal for your company, it is strongly recommended that you take the time to meet with your potential fleet suppliers to ensure they fully understand your objectives before you launch an RFI or RFP. That enables those fleet management companies to respond more comprehensively to your RFI/RFP, and increases the likelihood that you will be purchasing a fairly complete and satisfactory fleet service for the years to come.

CREATE A DEDICATED TEAM Mandate is essential. So make sure you have sponsors at the highest possible level.

You also need representatives from all key departments (HR, Finance, Procurement, Risk, etc.) Bring them together in a dedicated team.

All too often, a committee member with undue influence will cause an unbalanced, costly Car Policy. So aim for a balanced team, headed up by a neutral senior sponsor.

62

FLEET EUROPE #83

MANAGEMENT

DEVELOP A PROJECT CHARTER Defining your goal is not enough. You also need structure and guidance. Establish a road map with key steps and deadlines to generate clarity and focus.

SET EXPECTATIONS You may have defined goals, but not everybody involved will have the same expectations. So make sure you discuss, measure and clarify those expectations.

ESTABLISH SPONSORSHIP Fleet managers aren't always seen as major decision makers in international organisations. As mentioned in #1, you need support to drive through and roll out a global programme. So get sponsorship at the Executive and Top levels of your organisation.

DEFINE THE SOURCING APPROACH Based on your goals, streamline the number and detail of the questions you will ask, and the number of suppliers you will contact. Include only relevant suppliers – and all of them (based on international presence, scope, service levels, etc.)

Qualify questions as 'essential' and 'nice to have'. Score the answers accordingly. Give 'essential' requirements a high score, and 'nice to have' ones a lower score. This produces a highly relevant final score.

After they have dispatched the RFI/RFP, customers will often disallow meetings with the potential suppliers. However, if you need clear, accurate responses and want to avoid future misunderstandings, you should allow time for any queries to be raised. Surely, you want responses to fulfil your requirements as best they can.

And whatever the focus of your tender exercise, you should trigger potential fleet partners to share their ideas and processes, as it provides an insight into their innovation strategy.

FLEET EUROPE #83

SET UP A CAPABILITY MATRIX Getting data is one, configuring it so potential suppliers respond adequately is two.

Establish a grid or matrix that allows you to compare received information on a like-forlike basis. Also helpful: select a representative mix of countries to build around the matrix, guaranteeing an efficient working model.

HAVE A COMMERCIAL EVALUATION Even if the process looks great and efficient, it still needs to stand up to the reality of your company's fleet management to be successful.

MODEL DATA AND GET RESULTS With that baseline set, model the data in line with your fleet's real-life experience to get results adapted to your true car fleet situation.

SET UP AN EVALUATION PROCESS All key stakeholders must support the final evaluation and decision on the tender, which must be in line with your original goals.

Make sure these are sustainable, so you can stick with them once the decision is taken.

IMPLEMENT This often is the most difficult part of the process. But if you've followed the previous steps, it should be fairly easy. Underline the benefits for local and international stakeholders to promote implementation. And integrate the sponsors in the roll-out communication.

Fleet management and leasing pose significant operational risks for the suppliers. If you provide them with little information, their risk evaluation becomes more difficult. The result: you pay a higher premium – if not at the RFI/ RFP stage, then later on... So, provide enough data to potential suppliers for a truly transparent relationship and trouble-free service in the future. Knowledge is everything!

63

ADVERTORIAL

CONCEDED EDITORIAL SPACE

Forget cars and focus on delighting drivers New technology developed by UBench is revolutionising the customer service delivered to fleet drivers.

UBench allows businesses to communicate with supplier networks in real-time, streamlining processes and making life so much easier for clients.

In today’s digital world, customers demand an immediate response from suppliers, an instant answer to their problems. They expect the same first class service in every area of their life, believing that every service provider, including automotive companies, should meet the benchmarks set by the likes of Amazon and Apple.

To satisfy these expectations, suppliers require a fundamental change of approach.

Reactive services are no longer adequate, pro-active solutions are now essential.

Making life effortless and hassle-free for the customer needs a digital infrastructure.

UBench specialises in providing collaborative frameworks to the automotive industry. These

innovation by simplicity

your

transparancy for everyone

frameworks link the entire service chain — partners, suppliers, customers and employees — to create a single, virtual enterprise connected in real-time. By centralising information and linking pre-qualified service suppliers, UBench can automate processes within accident management (UBClaims), repair & maintenance (UBTech), vehicle remarketing (UBSales) and rental (UBRent).

UBench frees every stakeholder, every link in the supply chain, to focus on its core activities, guaranteeing the best service to the driver at the best value to the fleet client. UBench saves cost and raises service levels. The customer no longer has to take the initiative; UBench has the power to anticipate their needs, exceed their expectations and delight drivers. proactive smooth collaboration communication

partner loyalty

extra time for your customer

real time

mr. ben

claims office

happy to have my car insurance

leasing broker

parts supplier

ben’s insurer

rental companies

digital ecosystem

European Accident Statement

thank you for taking care

roadside assistance

surveyor

body shop

mr. ben

driver care

Ben

@

www. insurance.Be

app

Ben Self ser

vic

e

benchmarks unique information for everyone

€ cost

1 create your

64

community to ensure the best service

2 build strong relationships

speed

experience

3 bring responsiveness to the insurance industry 4 return on happiness

FLEET EUROPE #83

MANAGEMENT

Awards 2016: glittering prizes await you Céline Gilson & Steven Schoefs @CelineGilson,

@StevenSchoefs

STÉPHANE RENIE Sales & Marketing Director, ALD International, is the 2016 Fleet Europe Awards President

Your entries for the Fleet Europe Awards 2016 are now being accepted! Stéphane Renie, President of the 2016 Jury for the Awards for Fleet Managers and Sales and Marketing Director at ALD International, answers some Frequently Asked Questions: 1. Why should I take part in the Fleet Europe Awards ?

Entering the competition to win the Fleet Europe Awards is a great way to add value to your fleet programme. It creates visibility and

66

increases awareness – both within your own organization and in the wider market. Think of all the quality feedback and peer-to-peer interaction your entry could generate! So: better visibility, more awareness, increased quality of feedback, and increased quantity of interactions – all elements that will improve your fleet programme even further!

2. B ut I’m a small player! Aren’t these Awards always won by big, mature companies?

Depending on the size of your organisation, implementing a fleet programme is a

FLEET EUROPE #83

MANAGEMENT completely different ballgame. In large companies, the main challenges are often internal: how to handle multiple stakeholders, complex matrix organizations and multiple centers of decision. Smaller organisations often allow for more speed, have more flexibility and room for imaginative solutions. Last year, we created a prize specifically for medium fleets up to 5,000 cars, and the result was very rewarding. The main thing is to present a fleet programme that has proved successful, with the evidence to support it. So, fleet managers working with mid-sized fleets should not hesitate, and apply.

3. Is the Fleet Europe Award process in line with industry compliance standards?

Absolutely. At the end of the day, participants share what they want to share, and what is shared with the Jury is done so in full confidentiality. Our ground rules are very strict on this point. There is no other incentive than promoting your teamwork to your peers in the industry.

HERE’S HOW TO APPLY To apply to one of the three Awards categories, International Fleet Manager of the Year, Smart Mobility Management, and International Fleet Safety, contestant can apply until September 1 by sending an e-mail to Virginie Emonts (vemonts@nexuscommunication. be) to receive the application dossier. However, it is best to apply earlier, as the complete dossier has to be sent by September 9. Final contestants are invited to defend their candidacy dossier during a jury meeting that will take place in Stuttgart (DE), on October 5 & 6. All final contestants are invited to the Fleet Europe Awards ceremony on November 16 in Barcelona.

MEET THE FLEET EUROPE AWARDS JURY – AWARDS FLEET MANAGERS Adrian Porter, Hyundai Motor Europe • Alessandro Pigazzi, Arval • Caroline Thonnon, Nexus Communication • Carsten Kwirandt, Alphabet International • Christian Lindskov Alsoe, ISS World Services • Jean Zermati, Orange • Jose Luis Criado, LeasePlan International • Knut Krösche, Volkswagen Financial Services • Luc Dendievel, Johnson & Johnson • Martin Jahn, Volkswagen Group Fleet International • Michiel Alferink, Athlon International • Montse Empez Vidal, Applus • Olivier Marion, Nissan Europe • Romain Trébuil, L'Oréal • Stephane Renie, ALD International • Stefan Herbert, Mercedes-Benz Cars • Steven Schoefs, Nexus Communication • Vinzenz Pflanz, Sixt Leasing • Wolfgang Stahl, Opel/Vauxhall Europe.

INDUSTRY AWARD CATEGORIES The Fleet Europe Awards recognise also the professionalism and innovation of the fleet industry – in no less than three award categories: The International Fleet Industry Award rewards innovation in service development by today's vehicle fleet suppliers; the International Fleet Hall of Fame recognises fleet industry leaders and pioneers who have contributed to the international fleet management profession throughout their career; and the Smart Mobility Start-up Award, which celebrates start-ups that have developed an innovative tool or service for vehicle fleet and mobility management.

For more information on the Fleet Europe Awards for suppliers, please contact Virginie Emonts (vemonts@nexuscommunication.be).

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 EXPERTS Lukas Neckermann (Neckermann Strategic Advisors), Martyn Briggs (Frost & Sullivan) Cover: Benjamin Brolet Pictures: ©Shutterstock - ©ThinkStock

VIEW THE PROGRAMME & REGISTER NOW 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

FLEET EUROPE #83

Layout: Hungry Minds info@hungryminds.com FLEET EUROPE MAGAZINE °82 An error was made in the 2016 Car Fleet Calendar (pages 12-13) regarding the Skoda models. Please view the corrected version of the Calendar on our website www.fleeteurope.com

SALES & MARKETING David Baudeweyns – International Key Account Manager dbaudeweyns@nexuscommunication.be Sigrid Nauwelaerts – International Key Account Manager snauwelaerts@nexuscommunication.be Daniel Savigny – International Key Account Manager dsavigny@nexuscommunication.be Aline Verpoorten – Internal Sales Assistant averpoorten@nexuscommunication.be Virginie Emonts – Sales and Marketing Assistant vemonts@nexuscommunication.be ADVERTISEMENTS Volkswagen AG (1), SEAT (2), ŠKODA AUTO A.S. (4), ALD Automotive (8), Daimler AG (10-11), Mobility Systems + Services (16), Miveo (17), BMW Group (19), Automobiles Peugeot (21), Jaguar Land Rover (25), ARI (35), Volkswagen Financial Services (42), Car Remarketing Association (CARA) (43), The Miles Consultancy (46), DS Automobiles (47), Sixt Leasing (51), Kia Motors Europe (57), Adam Opel AG (59), UBench International (64), Hyundai Motor Europe(68).

FLEET EUROPE

Fleet Europe Magazine @Fleet_Europe FleetEurope www.fleeteurope.com 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

Meet the game changer

The new Hyundai Tucson

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

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

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

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