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FOR INTERNATIONAL FLEET AND MOBILITY LEADERS 1#86 0/2016

Nexus Communication - Fleet Europe #86 - Periodic magazine - October 2016 - Deposit Office Liège X

10

TRENDS

IMPACTING YOUR TCO IN 2017

JOIN US IN BARCELONA

15/11

• FLEET EUROPE REMARKETING FORUM • INTERNATIONAL FLEET MANAGERS INSTITUTE

16/11

• FLEET EUROPE FORUM & VILLAGE • FLEET EUROPE AWARDS

FACE TO FACE

“Trust is good, control is better” SELÇUK GÜNDOĞDU VAILLANT GROUP

ANTAL PÁLMAI E.ON

TCM to be lower than TCO

36

p.

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

THE NEW SEAT ATECA DRIVING YOUR BUSINESS FORWARD, WHATEVER THE TIME.

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

FULL LINK Connect your smartphone to your car using Apple Car Play, Android Auto or Mirror link technologies. Make the most of your mobile apps at anytime, anywhere.

SEAT FOR BUSINESS Average fuel consumption: 4.2 - 6.2 l/100 km. Average CO2 mass emissions 111-141 g/km. Provisional data.

TECHNOLOGY TO ENJOY FOLLOW US ON:

SE AT.COM

CONTENT EMBRACE MOBILITY TO SUCCEED IN 2017 For years international fleet managers are using the Total Cost of Ownership concept to manage and control their fleet strategy expenses. And today the TCO equation is advantageous for fleet managers. But this won't last.

Economy is cyclical, and so will be your corporate fleet expense, unless you prepare in advance.

The Fleet Europe team has selected 10 Trends that will impact your fleet management and fleet cost structure in 2017. The year you will have to change your mind-set from fleet to mobility.

5-36 DOSSIER 10 Trends impacting your TCO 1. The car list price…………………………………… 6–7 2. Oil price and fuel cost……………… 10–11 3. Diesel as powertrain………………… 12-13 4. The interest rate…………………………… 14–15 5. The cost of insurance………………… 16-18

Are you prepared for the corporate mobility management of the future?

Find the answer not only in this Fleet Europe magazine, but also in Barcelona, on 15 and 16 November.

The IFMI Session, accessible for fleet and mobility managers only, on 15 November will unravel five hot pressing fleet management trends via case studies. That same day, the third Remarketing Forum will underline how to Intensify Remarketing operations to embrace the opportunities of tomorrow.

At the Fleet Europe Forum on 16 November, quality content dovetails nicely with networking, with a special zoom on start-ups. Main theme this year is Blueprint 2020: From job function related fleet management to employee based mobility profiling.

In the evening, the Fleet Europe Awards are the occasion to showcase our industry's achievements. More on the nominees in this Fleet Europe magazine.

Steven SCHOEFS Chief Editor, Fleet Europe

42-47

6. Service and Maintenance ……… 20-22 7. Damage Management……………… 24-25 8. Electric powertrains in fleet………… 28 9. Stakeholder satisfaction……… 32-34 10. Total Cost of Mobility…………………… 36

62

70-73

FACE TO FACE

REMARKETING MANAGEMENT

Selçuk Gündoğdu, Vaillan Group & Antal Pálmai E.ON

Connectivity & Residual Values

Discover the 2016 Fleet Europe Awards nominees

SMART MOBILITY

Smarter city thinking……………………………………………………………………………………………………………………………………………… 38

INNOVATION

Paris Motor Show 2016: Tomorrow in your fleet………………………………………………………… 40-41

BUSINESS

ALD: Innovation solutions, delivered closer to the customer…………………………………48 Telogis: Connecting with Europe…………………………………………………………………………………………………………………50 Three questions to Ross Jackson, Traxall International…………………………………………………… 52 Volvo: 30 years in global fleet business…………………………………………………………………………………………………54

REMARKETING

Prepare today your remarketing success of tomorrow…………………………………………56-57 Remarketing in Europe: growth in volume and confidence………………………… 58-60

EXPERT

Mobileye and Ituran: Safety in the “mobile office”………………………………………………… 64-65

ANALYSIS

Fuel your corporate fleet forward ………………………………………………………………………………………………… 66-67 Fuel cards, a leasing company business……………………………………………………………………………………………… 68

Goodbye TCO, hello TCMC The economic picture today is rosy, and that translates into a fairly low TCO for your fleet. But the economy moves in cycles, and chances are that your TCO won’t stay so low either.

Fleet professionals need a strategy that covers the challenging times ahead. That is why for this Dossier, we selected 10 areas that will impact the cost of your fleet management in 2017.

Today, with the picture still rosy, is the best time to prepare for the future. To stay ahead of the curve, you need to transform your TCO into TCMC: Total Cost of Mobility and Climate. This includes the time and cost of your employees’ travels and commute, irrespective of their mobility mode – and taking into account its effect on climate change.

FLEET EUROPE #86

5

DOSSIER

rise 1The of the car list price Jonathan Manning

Inflation in the list prices of new cars far outstrips the increase in prices of other high value goods, with an impact on the cost equation for fleets.

€

2,000

THE POTENTIAL EXTRA COST PER CAR FACED

BY MANUFACTURERS IN MEETING NEW EMISSIONS TARGETS

43 %

THE INCREASE IN THE PRICE OF NEW CARS IN FRANCE OVER THE LAST 10 YEARS 6

Back in the mid-1990s, an infamous argument flared up between Bill Gates and General Motors. The Microsoft founder apparently said that if the automotive industry had kept pace with the technology industry, a car would cost $25 and return 1000 miles to the gallon. GM responded by saying that if it had developed technology like Microsoft, for no reason your car would crash twice a day, it would occasionally die by the side of the road and you would have to turn it off and back on again, the airbag system would ask “Are you sure?” before deploying… and so the list went on!

DISCREPANCY LIST PRICE – RV EVOLUTION Comparing 2015 prices to 2014’s revealed an increase of 3.5% in France, at a time when inflation in the economy was below 1%; the figures for Italy and Spain were similar, while in Germany, 2015’s car prices were 4% higher than in the previous year.

Two decades later, the cost of technology, such as mobile phones and computers, continues to plummet, while the price of new cars rises remorselessly.

“But if you look at most European markets, the list prices have gone up by more than the rate of inflation.”

Buyers of new cars certainly get much more for their money. New models are larger, more fuel efficient, safer, greener, and have better entertainment systems. But all these developments come at a cost. To take just one element, the ACEA (European Automobile Manufacturers Association) estimates that meeting the European Union’s carbon dioxide emissions target of 95g/km by 2020 will cost manufacturers €1,000-2,000 per car.

These inflationary costs have to be passed on, and help to explain the inexorable rise in new car prices across Europe. Analysis by automotive industry experts Cap hpi reveals startling inflation in new car prices in recent years. Investigating the average list price of all new cars registered in particular markets Cap hpi found, for example, that this has risen by 43% in France in the last decade.

Part of the explanation does lie in a changing model mix, “with people coming out of lower and upper medium sector cars, and MPVs, and going to [more expensive] SUVs,” said Dylan Setterfield, international forecast manager, Cap hpi.

Tracking the price of a single, benchmark model, such as the Volkswagen Golf, Setterfield said its list price had risen by 12-13% over the last five years in the UK. What’s troubling for fleets, is that residual values have not risen at the same rate, so in theory depreciation should be rising sharply, too. The used value of the Golf in the UK, for example, has declined by 1-2% in the last five years (due to the Mk6 model being replaced by the Mk7), said Setterfield.

The big question is whether new car prices are relevant at all these days, for anything but tax purposes. It’s no secret that fleet transaction prices bear no relation to official list prices, and even in the consumer market it’s hard to find a new car that isn’t offered with some sort of financial incentive, whether it’s a cash discount from the manufacturer or dealer, or the offer of 0% finance to purchase the vehicle.

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DOSSIER

“The car is becoming a white good, rather than a capital good,” said emeritus professor Peter Cooke.

New finance packages are structured around paying for the use of a vehicle, he said, with no intention of the customer ever taking outright ownership.

It’s different, however, in the corporate sector where, “if you are a big enough fleet operator you can do some pretty good deals,” said Peter Cooke.

and upper medium cars leads to lower depreciation than allowing drivers a wider choice of more popular cars that ought to have higher residual values. In the UK last year, the Nissan Qashqai was the fifth best selling company car, but only 55% of its sales went to fleets. In contrast, 92% of Opel/ Vauxhall Insignias, 87% of Volkswagen Passats and 85% of Ford Mondeos were bought by fleets. If retail demand for used cars mirrors retail demand for new cars, it will be far easier to find buyers for the secondhand Qashqai's than the used Insignias, Passats and Mondeos.

The calculation for fleets is whether the advantageous prices of traditional lower

“If you look at most European markets, the list prices have gone up by more than the rate of inflation”, says Dylan Setterfield of Cap hpi.

PIMP YOUR FLEET CAR One way for fleets to avoid the inflationary costs of giving company car drivers more user-chooser freedom is to offer traditional, benchmark cars in supermini, lower and upper medium categories, but allow drivers to contribute towards the higher cost of a more expensive car. Research

by global advisory company Willis Towers Watson found that almost half (44%) of organisations running fleets allow eligible employees to trade-up (i.e. use personal funds or salary deduction to acquire a more expensive car than their entitlement).

ORGANIZATION ALLOWS ELIGIBLE EMPLOYEES TO TRADE-UP (I.E. USE PERSONAL FUNDS OR SALARY DEDUCTION TO ACQUIRE A MORE EXPENSIVE CAR THAN THEIR ENTITLEMENT) IN %

AUSTRIA

BELGIUM

DENMARK

FINLAND

FRANCE

GERMANY

GREECE

IRELAND

ITALY

55 %

52 %

47 %

47 %

24 %

58 %

30 %

27 %

30 %

LUXEMBOURG

NETHERLANDS

NORWAY

PORTUGAL

SPAIN

SWEDEN

SWITZERLAND

UK

WE AVERAGE

75 %

50 %

43 %

38 %

33 %

46 %

47 %

54 %

44 %

FLEET EUROPE #86

7

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DOSSIER

control on fuel 2Get cost volatility Jonathan Manning

The pump prices for petrol and diesel are notoriously volatile, and forecasts for 2017 indicate now would be a smart time to take control of your fleet fuel spend.

After the sharp fall in fuel costs at the start of 2016, fleets have seen a steady increase in petrol and diesel prices throughout 2016.

As the price of crude oil has recovered, so pump prices have risen, with further increases on the horizon for 2017.

Oil prices fell to a 12-year low in January at below $28 per barrel. Since then, a decline in production, a decrease in oil inventories, and higher demand have pushed up the price of crude oil, according to Dr Mohammed Bin Saleh Al-Sada, OPEC President. He expects the price of oil to continue rising during the later part of 2016. $147 PER BARREL But oil prices are still only at one-third of their $147 per barrel all-time high, set in 2008 when tension between the west and Iran reached acute level. This September, the US Energy Information Administration forecast that oil prices could reach $50 per barrel, and added that it anticipates, “rising prices in the second quarter of 2017, with price increases continuing later in 2017.”

The relationship between crude oil prices and the cost of fuel at the pumps is vague, thanks to national excise duties, taxes, refinery costs and retailer margins. As a rule of thumb, however, a $2 increase in the price of a barrel of oil represents about a 1 cent rise in the pump price of petrol or diesel.

The US Energy Information Administration warned that geopolitical events, alongside global economic developments, could cause rising oil prices in 2017.

10

Given the combination of these forecasts and the fact that fuel can account for between 15% and 40% of fleet budgets, any fleet that wants to keep control of its expenditure in 2017 will need to concen-

trate on two areas; firstly, the selection of vehicles with lower fuel consumption; and secondly, the management of fuel purchasing.

The development of carbon dioxide-based company car taxes in 20 countries across Europe has already focused fleet minds on lower emission, and therefore lower fuel consumption cars and vans. In the UK, for example, more than one quarter of all leased company cars now have CO2 tailpipe emissions of less than 100g/km, compared to 20% for the new car market as a whole.

To assist fleet fuel budgeting, BP has launched two new products. Its Fuel Price Guarantee caps the price that fleets pay for diesel for a set period and volume, yet at the same time allows fleets to benefit from any pump price drops.

“The customer pays the pump price, and if that rises above the the cap we would send them a credit note, and if the price is below they get the benefit of the lower price,” said Andy Allen, UK Cards Manager, BP. The UK has served as a pilot for the concept, with the aim of rolling it out through Europe and the rest of the world.

In addition, BP has developed a Fixed Price Offer for fleets that want certainty over their costs. This allows fleets to fix the price they pay for diesel for any period, giving budget security.

“If you can lock in your fuel price, you know what your costs will be for the next 12 months,” said Allen.

FLEET EUROPE #86

DOSSIER

CONTROL YOUR FUEL SPEND 1. Introduce a CO2 cap to your company car choice list. There’s a direct correlation between emissions and fuel efficiency.

2. ‘Right size’ your vehicles for their operational tasks – avoid larger, heavier and less efficient vehicles than you need, especially vans.

3. Negotiate a discount – the larger oil companies will not only offer volume-related discounts, but can also set a fixed, nationwide price, even for small fleets, so drivers don’t pay more for refueling on motorways and at higher cost service stations, said Andy Allen, Cards Manager, BP. 4. Encourage drivers to buy fuel at the cheapest service stations, said Angus Leeson, International Sales Director, The Miles Consultancy. “Supermarkets are always among the cheapest places to buy fuel. Once you commit to a single brand in return for a rebate, your drivers may need to drive extra miles to reach one of its fuel stations. This ‘brand diversion’ costs more than you think. The financial director of one of TMC’s clients calculated his drivers’ average ‘pence per minute’ cost while driving. He found that it only took two minutes of ‘brand diversion time’ to cancel out the rebate he’d been offered.

Significant fuel cost savings come from strategies that minimise the volume of fuel you use, rather than focusing on small price differences.

5. Recover all the VAT to which you are entitled on fuel bought for business journeys. Fuel cards can provide a single, consolidated VAT invoice, whereas ‘pay and reclaim’ expense systems require drivers to keep every receipt.

FLEET EUROPE #86

6. Analyse the information delivered by your fuel card or telematics system, and act on it. “With data comes power,” said Allen. “It allows you to create reports to see how drivers and vehicles are performing.”

Poor fuel consumption may be due, for example, to a dangerous driving style and excessive engine idling. Eco driver training can lead to fuel economy gains of up to 15%.

7. Reimburse drivers for the exact cost of their business journeys, rather than on a flat rate per kilometre. Apps and other mileage capture technology allow drivers to attribute their trips to business or personal. The ratio of these figures can then be applied to their fuel card spend, with each individual driver reimbursed only for the cost of fuel used for business trips.

8. Look out for anomalies. The Miles Consultancy recommends investigating when more than 10% of a driver’s expense claims end in a zero – it could well be a case of rounding up their business miles. It also has systems to investigate reasonable distances for journeys so, for example, a claim for 300km from Bruges to Brussels would be flagged up. Check, too, for instances where refueling shows 70 litres of diesel purchased for a car with a 55-litre capacity tank. “Fuel card data is useful but by itself it is not a good way to identify performance issues,” said Leeson. “You need to correlate it with mileage capture to make it into useful information. Mileage capture brings fuel card data to life. It allows fleets to measure real-world fuel consumption and cents-per-kilometre fuel costs.

Consolidated reporting makes it not only possible but also easy to identify ‘problem’ vehicles and drivers so that appropriate action can be taken.”

$

28

PRICE OF A BARREL OF OIL, JANUARY 2016

$

50

PRICE OF A BARREL OF OIL IN SEPTEMBER 2016

FUEL REPRESENTS BETWEEN

15 & 40 % OF TCO

11

DOSSIER

end of diesel 3The dominance Frank Jacobs @FrankJacobs

Dieselgate was one year old on 18 September. The scandal has not led to the collapse of diesel, nor to the end of Volkswagen.

But some things have indeed changed, or are changing faster, because of the emissions scandal. Time for a look back – and forward – with some remarketing experts.

VW PROFIT PLUNGED FROM €1.9 BILLION IN H1 2015 TO

€

900

MILLION IN H1 2016

IN 2013, THE SHARE OF DIESEL IN RESALES WAS 62%.

YEAR TO DATE, IT’S

51 %

FROM 2013 TO 2015, DIESEL RVS WENT UP 2%. OVER THE SAME PERIOD, PETROL RVS WENT UP

4.9 % 12

In all, Dieselgate has had a limited effect.

“Diesel sales did not drop significantly across Europe as a whole”, says Jurij Virant, Sales and Acquisition Manager at Avto Sistem in Slovenia. “The scandal’s biggest impact has been on Volkswagen’s profit, which plunged from €1.9 billion in the first half of last year to €900 million in the first half of this one”.

MUTED EFFECT Jean-Laurent Paris, Managing Director at Dekra Automotive Solutions, says: “The market was already orienting itself towards lower emission engines and greener vehicles”.

The split between petrol and diesel in Dekra’s own figures for nearly-new used cars supports that thesis: “In 2013, the share of diesel in resales was 62%. This decreased to 58% in 2014 and 56% in 2015.

For the year to date, the share of diesel in resales is around 51% at the moment”. The in-fleet figures confirm the trend: “In 2003 we had 66% diesel and 34% petrol. So far, in 2016, diesel has dropped to 53% and petrol is up to 47%”.

SYMBOLIC END “We are clearly moving towards the end of a diesel-dominant market”, observes

Jean-Laurent Paris. And if Dieselgate didn’t cause that trend, it does symbolically mark the end of the diesel era.

Dieselgate itself did not have an acute effect on residual values, says Johan Meyssen, CEO of Cars on the Web: “It was only hot news for a limited period, and mainly so in Western Europe. As we export a lot of our cars to Central and Eastern Europe, the impact was negligible. However, as more people are weighing up diesel versus petrol, this could have a positive effect on petrol residual values (RVs), and a negative one on diesel RVs – but in the long run”.

VALUE REBALANCING Examining the nearly-new car market, Jean-Laurent Paris notices a similar reversal of favour as mentioned earlier: “When diesel still completely dominated the market, the resale of petrol cars could be an issue, which could affect their RV. From 2013 to 2015, Dekra managed to improve the RV of vehicles sold, with diesel gaining more than 2% in value on average. But over the same period, petrol vehicles gained an improvement in RV of up to 4.9%. So the re-balancing of sales volume has its equivalent in value. This year so far, the average RV as percent of the new value for petrol and diesel cars are very close”.

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DOSSIER

Few observers feel Dieselgate in and of itself will make a lasting impression. In fact, “this time next year, it will be more or less forgotten”, says Jurij Virant. He does concede that the scandal did speed up an ongoing shift in public opinion: “People have moved a bit more towards new technologies. And politicians have used it as a reason for more taxes on diesel engines and for banning them from city centres”.

TAXES, NOT SCANDALS Johan Meyssen argues that people will not be swayed by scandal, but by taxes: “As long as there are no negative financial consequences, fiscally or otherwise, most consumers will not bother too much about emissions standards and scandals”.

All experts are convinced that diesel remains a valid option for corporate fleets – for the foreseeable future at least. “In a few major markets, fiscal rules enacted decades ago continue to favour diesel”, says JeanLaurent Paris. “In the long run, taxes and incentives will determine the evolution of fleet energy types – and then we are not just talking about petrol and diesel, but also about hybrid and electric”.

RECALCULATE TCO “Driving a diesel still makes sense for a lot of fleet drivers”, says Johan Meyssen.

“However, everybody will want to recalculate the TCO, taking into account the changed circumstances. For some users and cars, the outcome will be different”.

“Diesel will remain a good choice for fleets at least for the next two to three years”, says Jurij Virant. “After that, new technologies will be much better developed and their RVs much more predictable. In the long run, diesel will lose a lot of market share, which will go to petrol and the new technologies”.

FLEET EUROPE #86

According to the Remarketing specialists, diesel remains a valid option for corporate fleets – but only for the foreseeable future.

DIESEL DEPRECIATION DROPS OFF A CLIFF AFTER 5 YEARS Diesel RVs do not decline in a linear way. At a certain age, they drop off a cliff, says Morten Holmsen. That process is accelerating, explains the Global Sales Director at Autorola.

“If you have a high yearly mileage, there is a good economic reason to choose diesel. After three years and around 100,000 km, a diesel company car changes owner for the first time.

The second owner will likely also use it as the household’s primary car. So here too it still makes sense to drive a diesel”.

“But the third owner, after a few extra years, will only buy a car that old as

a second car in the household.

This car is likely to drive less.

With a much smaller mileage, this diesel – with its higher service cost – suddenly is a lot more expensive, compared to a petrol car”.

“This means that diesel cars will start to depreciate much faster after the first five years.

This in turn also influences the depreciation in their first years.

This is why we are now seeing diesels experiencing a higher depreciation than before: the demand for them as older cars is disappearing”.

13

DOSSIER

get seduced 4Don't by low interest rates Jonathan Manning

With the cost of borrowing at an all time low, fleets could be reconsidering how they finance their vehicles in 2017.

But think twice.

With interest rates at historic lows for a record period of time, and no indication of any increase on the horizon, fleets have the opportunity to investigate the finance costs of how they fund their vehicles. Does the almost zero cost of borrowing make outright purchase more attractive than leasing, should cash rich companies consider purchasing their vehicles, and how transparent are interest charges in lease contracts?

The European Central Bank cut the eurozone's main interest rate to zero in March, and the ECB’s Governing Council, “continues to expect the key ECB interest rates to remain at present or lower levels for an extended period of time.”

For fleets, this spells lower funding charges.

Interest repayments now account for no more than five per cent of the total cost of ownership, said Pascal Serres, Deputy CEO of ALD International, although interest rates can vary between countries.

Source: European Central Bank, www.tradingeconomics.com

1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 -0.2

14

2014

National fiscal rules can also make it more beneficial for vehicle leasing companies to build their margin into either the interest rate or their management fee.

Regardless of interest rate, however, Pascal Serres said it’s not a good business decision for companies to invest their capital reserves in vehicles, with financial resources better deployed in growing their businesses.

“That said, we are experiencing in some emerging markets that sometimes, where it’s difficult to transfer money, companies that are cash rich tend to use their cash to fund their fleet because they have no other alternative to invest their money,” he said.

“But we are talking about markets where interest rates are almost 15 or 20 per cent.”

Within the Eurozone and western Europe, however, vehicle funding decisions are typically determined by corporate attitudes to outsourcing and risk, rather than the negligible cost of finance.

EUROPEAN CENTRAL BANK - INTEREST BENCHMARK RATE

2012

“We charge similar rates in northern Europe across the eurozone. In the south of Europe we tend to have slightly higher rates because of the cost of risk, but the difference is negligible,” said Pascal Serres.

2016

Bart Beckers, chief commercial officer of Arval, said, “For car leasing, the premium to pay in terms of interest is so low that it’s almost the same as if fleets would have been buying and funding the vehicles themselves, but the key advantage is that they only have to fund the depreciation, and do not have to refinance the residual value at the end of the contract, and they don’t have to take the risk on the residual value.”

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DOSSIER

At business software specialist Infor, which runs company cars in 15 different countries, interest rates are coming under scrutiny for a different reason – the new international accounting rules that will see lease vehicles appear on balance sheets, from 2019.

Fer Derwort, European fleet manager, Infor, said, “We need to have the information from the car lease vendors about the purchase price of the vehicle, the depreciation, and also the interest rate,” he said.

This raises problems for leasing companies, because while lease rates between rival firms are competitively close, how the leasing companies calculate their rates can vary widely.

“The problem is that the lease rate is not transparent at all,” said Fer Derwort.

“With a lease vehicle you get the purchase value, you get the discount, you get the maintenance, the management fee, and a fixed interest rate. But when you look at a recalculation of a vehicle, you see that several components have changed. They change, for example, the interest rate and drop it down to 1.5%, but the biggest one is risk value. By changing some components, over which you as a customer do not have any influence, they are making more money. Sure, everyone has to make money, but when a car is returned at the end of a lease term, and you get the charge for fair wear and tear, I think this is totally unfair.

“So bearing that in mind, and what will happen with the accountancy changes in 2019, we could consider the purchase of our vehicles ourselves. We can finance them ourselves, the interest rate is very low. It’s premature, but this could be the way we move forward unless the lease vendors change to be more transparent.”

FLEET EUROPE #86

CASH ALLOWANCES VERSUS COMPANY CARS The beneficial impact of low interest rates is not confined to corporate fleets – company car drivers may find that accepting a cash allowance in lieu of a car has become a much more attractive option.

Personal leasing products are increasing in popularity, following the well established US-model. But whether they have the appeal to woo company car drivers is another question entirely.

Bart Beckers, chief commercial officer of Arval, identified private leasing as a growth sector in the UK and the Netherlands, but questioned whether it would prove so popular in other markets.

Central to the decision is the tax efficiency for both employer and employee of a company car, compared to the tax levied on the additional income of a cash allowance.

Pascal Serres, Deputy CEO of ALD International, said “In France, and most European countries, it’s still more tax efficient to have company cars, rather than cash, because it’s an incentive that is not so heavily taxed.”

“But there are a lot of companies who do not want to have the complexity of managing a programme, whether internally with a fleet manager or externally with a company like

ourselves, and they just prefer to offer a cash allowance.”

This allows drivers to choose the cars they want, with all manufacturers and many leasing companies starting to offer private, full service leasing.

“I strongly believe this will boost the cash allowance,” said Serres.

Low interest rates are merely favourable to a development that is going to happen anyway, he added, especially in small and medium sized companies.

At software company Infor, where the primary use of company cars is for business, European fleet manager Fer Derwort said the choice of cars and even their colours were limited.

“If the employee is not satisfied, they can choose a cash allowance,” he said. “About two-thirds use a company car and one-third use a cash allowance, and it seems in the last two years as though people are moving back from cash allowance to company vehicles.”

15

DOSSIER

down 5Driving the cost of insurance Jonathan Manning

Rigorous and relentless management focus will be essential to reduce insurance premiums in 2017, but the good news is that new technology can help fleet operators make dramatic improvements in the safety of their drivers and vehicles.

Few areas of the fleet industry are set for such dramatic change as insurance. The prospect of a collision-free future, where autonomous vehicles maintain a safe distance between themselves on the road, and park with flawless accuracy, are now a real possibility. In this golden vision, the only danger is from an on-board system failure, and vehicle manufacturers, such as Volvo, are already suggesting they will accept liability for this risk.

Yet this radical restructuring of the motor insurance industry is decades away.

INSURANCE INFLATION In the short-to-medium term, costconscious fleets will have to focus on improving their risk profile and cutting their claims experience in order to avoid spiralling insurance costs. There are significant inflationary pressures in the insurance market, including the increase in repair costs as the growing number of electronic parts drives up the cost of repairs, said Hessel Kaastra, managing director, LeasePlan Insurance.

He added that the cost of settling medical injury claims is also rising – up 5.9% in 2016 – and that the ‘ambulance chasing’ seen in the US and UK is now becoming more common in other European countries.

16

“In some markets it is increasingly common (and easy) to claim bodily injury costs after an accident, and in particular, for minor claims such as whiplash,” said Hessel Kaastra. “We see this trend clearly in Ireland and the Netherlands, where the market is reacting with substantial premium increases.”

Insurance premiums and repair costs represent about 10% of the total cost of ownership for cars, and 12% for light commercial vehicles, but any such aggregate figures can mask significant differences between one fleet and another. Even within the same company, the claims experience can vary sharply from one country to another and one division to another.

WHY MANAGEMENT SUPPORT IS VITAL Sometimes these discrepancies can be explained by local environments, such as urban versus rural areas, but there is one common factor among fleets with the lowest insurance costs, and that is good management, said Andy Price, practice leader EMEA, Motor Fleet, Zurich Risk Engineering Europe.

“Technology and training are tools in the risk management tool box, but if they are not used correctly as part of a wider risk management programme then they are

FLEET EUROPE #86

DOSSIER

AEB is dramatically reducing accident and can have a positive effect on your premium.

unlikely to give rise to a sustainable reduction in risk management,” he said.

“The client has to focus on management itself. That’s why with fleets that have decided to tackle risk management with [driver] training there is a short-term improvement, but often after 12-18 months it is back to where it was before. That may be due to the fact that drivers just can’t put what they’ve learnt into practice because of the operating environment in which they are working.”

Companies have to reinforce the safe-driving message at every opportunity, including emails and staff meetings, said Andy Price.

This can be a difficult message to sell, given the tendency of most people to think they are good drivers. Consequently, Price favours the ‘carrot’ rather than the ‘stick’ approach to secure driver support, emphasising that driver safety is of paramount importance.

“We see much better outcomes when you are rewarding good driving, even when it’s just sitting down with the driver at the end of the month, looking at the telematics data, and saying, ‘keep up the good work’,” said Price.

FLEET EUROPE #86

“Management is so key in all this.

Companies can throw money at training or technology, but they neglect the management issue. We probably do more line manager training than we do in-vehicle training for drivers.”

TARGETED INTERVENTION When budgets are limited, it makes sense help to target risk reduction initiatives in areas where they will deliver the biggest benefit. LeasePlan advocates the benchmarking of one fleet’s claims experience against another, “to understand your current performance,” said Hessel Kaastra.

“Typically, underperformance is concentrated in certain areas of the business and a targeted approach is therefore most effective.”

He added that fleets should investigate the root causes of their higher accident levels before implementing risk mitigation programmes, such as driver training, incentives for good driving, penalties for poor performance, or introducing technological safety solutions.

© Volvo

LEASEPLAN INSURANCE Euro Insurances is to change its name to LeasePlan Insurance in order to make clearer its ties to the international leasing and fleet management specialist.

The insurer is wholly owned

by LeasePlan Corporation, and plays an integral role in LeasePlan’s strategy to offer a ‘one-stop shop’ for mobility solutions. In the first six months of 2016, LeasePlan’s insured fleet grew by 17% compared to the first six months of 2015.

The company offers a wide portfolio of fleet motor insurance, including third party liability, personal indemnity, own damage, catastrophe cover, guaranteed auto protection and legal assistance.

NEW SAFETY TECHNOLOGY Autonomous Emergency Braking (AEB), for example, leads to a 38% reduction in real-world rear-end crashes, according

17

DOSSIER

5.9 %

THE INCREASE IN SETTLING MEDICAL INJURY CLAIMS IN 2016

45 %

THE REDUCTION IN THIRD PARTY INJURY CLAIMS ACHIEVED

BY THE GOLF MK VII, COMPARED TO EQUIVALENT SMALL FAMILY CARS, THANKS TO THE VW’S AUTOEMERGENCY BRAKING SYSTEM

With technology going forward, the pay-per-use concept can quickly become reality, also in insurance.

to a study by Euro NCAP and Australasian NCAP. Meanwhile, the UK motor insurers’ automotive research centre, Thatcham Research, has reported that the auto-emergency braking system on the latest generation Golf VII has cut third party injury claims by 45%, compared to an equivalent ‘Small Family Car Control Group’ (which includes the Ford Fiesta, Toyota Auris, Peugeot 208 and Audi A3, and Golf VI).

“These findings are based on the equivalent of more than 7,000 Volkswagen Golf VIIs insured for a full 12 months on the road,” said Matthew Avery, director of Safety at Thatcham Research. The figures, he added, “have given us a glimpse of what safety on UK roads could look like in the future.”

In the longer term, however, the very nature of how fleets pay for insurance is up for debate. The telematics technologies that are central to autonomous vehicles raise the possibility of fleets to be able to pay-on-use for insurance, calculated on a kilometre-by-kilometre basis. And why stop there, asked Kaastra.

“I definitely believe a pay-on-use model will come, but from a fleet perspective it’s unlikely to emerge just for the insurance component. Maintenance, repair and depreciation are all based on mileage, so if you are interested in pay-per-use, why would you limit it to insurance?” he said.

SIX STEPS TO LOWER INSURANCE COSTS 1. Secure senior management support for your fleet risk management programmes.

facilitate benchmarking against fleets with a similar profile, too.

2. Make sure the operational demands of the business allow for safe driving. Are drivers having to rush between appointments to meet targets? Are they expected to take telephone calls while driving?

4. Investigate in detail the cost of claims.

Can repair costs be cut, can vehicle downtime be reduced, are third party claims under control?

3. Collect meaningful claims data that allows you to benchmark drivers, divisions and even national operations against each other in order to identify higher risks and good practice. Working with an insurer can

18

5. Set clear targets for risk reduction and focus resource appropriately, whether it’s training, technology or management time.

6. Maintain your relentless focus on fleet safety.

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DOSSIER

maintenance 6Trimming and repair costs Dieter Quartier @ DieterQuartier

Flexible or fixed, service intervals have increased over the past decade. However, that does not necessarily translate into lower maintenance and repair costs. Can predictive maintenance be the missing link?

2 YEARS/

30,000 KM THE MAXIMUM SERVICE INTERVAL ON THE PASSENGER CAR MARKET (e.g. Volkswagen products)

2 YEARS/

50,000 KM THE MAXIMUM SERVICE INTERVAL ON THE LCV MARKET (e.g. Ford Transit) 20

Long gone are the days when cars needed to go to the workshop every 5,000 km for an oil change. In today’s world, that would mean that an average company car driver would have to drive to the dealer’s 4 to 5 times per year, with a downtime of at least 12 hours. Today’s synthetic oils are multigrade, meaning that they can be used all year long, but also much more durable.

Some manufacturers require an oil drain every year or 20,000 km, but some stretch the interval to two years and 50,000 km – in the interest of customer convenience.

Can we expect even longer intervals, then? “We see a stabilisation in the service frequency. Some manufacturers have even retraced on their steps”, says Olivier Renard, Marketing & Sales Director at independent vehicle servicing network Auto 5. “Leasing companies have learned that vehicles, regardless of the prescribed service interval, generally visit the workshop at least once a year. Also, too long intervals mean too little vehicle checks, possibly leading to higher costs and more downtime – which you wanted to avoid in the first place.”

CONVENIENCE VERSUS COSTS AND RISKS Volvo Cars seems to be on the same page.

“Given the importance of optimised oil

As predictive maintenance supports the identification of the required service level for a car, unnecessary maintenance costs can be avoided.

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DOSSIER

condition, we have no intention to move away from the current service interval for petrol and diesel powertrains”, says John Wallace, Global Fleet Development Director. As a reminder, Volvo has developed its own highly-sophisticated engine family, consisting of various 2.0-litre four-cylinder petrol and diesel derivatives.

They all feature high-pressure direct injection and a turbo charger – meaning that the oil has a very important role to play in cooling and lubricating crucial engine components.

Apart from that and more generally speaking, the oil quality is crucial in keeping the emissions within the legal limits.

“Intervals are only part of the equation for TCO”, John Wallace continues. “While we are not planning to extend the service intervals, we also know it’s about

FLEET EUROPE #86

how long the service takes and what the content is. With the new Volvo Personal Service concept, each service or repair is done while the driver waits. He or she can work in our lounge, with complimentary WiFi and coffee. So for Volvo business customers, the downtime will be minimised.”

Olivier Renard adds another argument against longer intervals: “They do not only increase risks, they can also cause premature replacing of parts. For example, a customer comes in for an oil change and the technician sees that the brake pads will last for another 15,000 km at best. As the next service is 30,000 km away, the technician has to replace them, resulting in extra costs. If he doesn’t, the customer has to come back in a few months’ time, leaving him with the feeling that the dealer lacks professionalism. The same goes for tyres.”

OVER

380 MILLION CONNECTED CARS WILL BE ON THE ROAD BY 2021 (source: BI Intelligence)

21

DOSSIER

In these times of advanced communication, that sounds all the more wasteful.

THE ADVANTAGES OF PREDICTIVE MAINTENANCE WORKSHOP - Stay in touch with the customer in general - Ability to address the customer directly - Plan maintenance work by aligning customer need with workshop capacity - Save labour time by identifying the precise repair task needed DRIVER - Avoid unexpected downtime by predicting failures - Easy alignment of time slot with workshop - Less visits to the workshop - Improved safety of the vehicle FLEET-OWNER - Ability to identify the exact required level of service and avoid unnecessary costs - Avoid unexpected downtime and roadside assistance costs by predicting failures - Less visits to the workshop - Improved safety of the vehicle

22

THE MAGIC OF TELEMATICS For the manufacturers and dealers there is also the issue of not seeing the customer as much as before. They need to find other ways to stay in touch, lest they lose their customers to the competition. “In order to keep up customer retention, the workshop needs to invest much more in customer relationship management then in the past”, confirms Alfred Mueller, Head of Sales & Marketing Connected Services at Bosch Automotive Aftermarket.

“Predictive maintenance and other telematics solutions are a perfect tool to keep the customer close”, he continues. “If the workshop gets access to the customer’s telematics data, the technician is able to contact him proactively to arrange the next workshop appointment in case a diagnostic trouble code occurs or the next service is due. By knowing more about the customer’s vehicle, workshops are also able to provide customized offers.”

“GM with Opel/Vauxhall is fully aware of the predictive maintenance topic. And with OnStar we are one of the market leaders in terms of connected cars, which will be a crucial requirement for implementing any kind of predictive maintenance in the future”, says Wolfgang Stahl, Director European Fleet, Remarketing and Used Vehicle Operations at Opel/Vauxhall.

PREDICTING IS SAVING In what way can predictive maintenance drive down maintenance and repair costs for fleet customers? “We see two different potential saving points. First in the sense of optimizing the number of visits to the service workshop”, explains Mr Stahl. “To do so, you would need not only to show the degree of usage of most components, but also to deliver algorithms to optimize the best point in time to visit the service workshop.” Indeed, not all components need replacing at the same time, presenting the manufacturer with a major challenge.

“Secondly, predictive maintenance will surely provide the fleet operator with a tool to identify the exact required level of service, reflecting each component. That way,

unnecessary costs like too early replacements can be avoided. In both cases the impact would be optimized if all vehicles in the fleet are able to provide the required information.”

AVOIDING WORKSHOP PEAKS According to Olivier Renard, the real cost saving could be found in a more balanced out workshop occupancy. “We see the same peaks every year. In June, everybody wants their car serviced before the summer holiday, in November the workshop is flooded with customers needing their summer tyres switched to winter tyres, and in March it is the other way round.”

“Actually, it should be the workshops that proactively contact the customer through telematics, inviting them to book an appointment when there is plenty of availability. That way, you can flatten the tops and fill the gaps, and therefore avoid the need to hire extra people and provide enough infrastructure to handle the peaks.” These savings could translate into lower servicing costs.

Incidentally, Auto 5’s Sales & Marketing Director has not seen a downward trend in maintenance and repair costs over the past 10 years. “On the contrary. Modern oils last longer, but are much more expensive, and so are the parts – which never cease to increase in numbers. Especially the emission standards have made engines all the more complex and costly to service. I don’t see how predictive maintenance could change this.”

FUTURE PERSPECTIVES With the self-driving car in mind, going to the dealer’s for maintenance or repair would not be inconvenient any more. Your car drops you off at the office and drives to the workshop, to come and pick you up again after it has had its oil changed. If we will still be driving vehicles with internal combustion engines, that is.

Chances are that by the time cars can drive autonomously, they will all be electric – either fuel cell or battery powered. As these require far less maintenance to start with, vehicles will visit the workshop even less.

Carmakers and workshops need to rethink their business model, that much is clear.

FLEET EUROPE #86

BMW Corporate sales

www.bmwcorporate-sales.com

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sheer driving Pleasure

DOSSIER

is key 7Proactivity for damage control Dieter Quartier @DieterQuartier

Damage at the end of the fleet contract often takes the shape of a surprisingly high invoice which follows weeks after the vehicle has been returned. By taking a proactive approach you can significantly soften the blow – and turn a negative feeling into a positive one.

Residual values are volatile, and can easily become under pressure. Leasing companies might struggle to get the money they need from the resale of a vehicle to break even. A crucial factor in the resale value is the state of the vehicle. It is only logical that any loss of value caused by damage has to be recuperated – with respect for fair wear & tear rules, of course. That does however not mean that the vehicle is repaired, nor that the invoice amount – hefty as it may be – covers the total loss of value.

In other words: both leasing companies and customers benefit from an effective damage management during the contract to avoid damage as much as possible. But what does that mean in practice? And what about fair wear & tear? We spoke to Jean Thomas, President of the Board at Macadam Europe, and Peter Verbraeken, Managing Director at UBench International.

Jean Thomas, Macadam: “If repair management is organised proactively instead of at the end of the contract, you can save costs.”

24

EDUCATING THE DRIVERS For Jean Thomas, avoiding damage starts with making company car drivers aware of the fact that they are responsible for taking good care of an expensive good that represents the company. “Gone are the days when a lease car was considered a mere tool belonging to the company and damage was treated with a great deal of leniency. Now

that every scratch and dent is scrutinized upon return, it is in the customer’s interest to have their vehicles inspected regularly during the contract.”

According to Macadam’s President, damage attracts more damage and should therefore be assessed during the contract to avoid a substantial repair bill building up. “A yearly snapshot of your fleet creates awareness and stimulates the drivers to use the vehicle with due care, as it is a business card for the company. It also gives you a clear view on the expected repair costs at the end of the contract.”

Peter Verbraeken from UBench International concurs: “You don’t need to wait until the end of the contract to assess the damage. In today’s world it is easy to organise a damage evaluation six weeks before the end of the contract. You could even do this yourself, using mobile tools such as the UBDrive tablet application. This allows plenty of time to make cost-saving decisions.”

REPAIR OR NOT? Whether you have your vehicles checked regularly or six weeks before the return, you could decide to repair the damage right away and perhaps charge the costs

FLEET EUROPE #86

DOSSIER

partially or entirely to the driver. Peter Verbraeken has an interesting point of view in this regard: “It is my opinion that you can turn negative into positive by making the pre-inspection a co-owned experience. If you can prove that you are saving the driver money by having the damage repaired beforehand, he will be delighted and more likely to stay loyal and promote the company.”

However, repairing the car means downtime. “True,” says Jean Thomas, “but if organised proactively instead of at the end of the contract, when there is pressure to end the lease as quick as possible, you can save costs and have the repair done at the driver’s convenience, providing him with a replacement vehicle. If organized on a large scale, the repair costs – making use of smart repair techniques where possible – are likely to be lower than the total invoice you would receive when you would return all vehicles unrepaired.”

FAIR WEAR & TEAR In most European countries the national lessors’ association has a fear wear & tear guide, an industry standard to determine which end of contract damage is acceptable – and will therefore not be billed – and unacceptable, taking into account the mileage and age of each vehicle. Is there an evolution in these standards? “Yes, there is, albeit a slow one. Vehicles evolve and so do repair techniques”, says Peter Verbraeken.

“Using innovative methods – paintless dent removal, spot repair – means you can drive down costs. Fleet managers know that, and push lessors towards a greater ‘acceptability’ of small damage.”

FLEET EUROPE #86

“But actually, it is the used car traders who determine what is acceptable or not, regardless of industry standards”, he continues. “It is their customers who set the balance between purchase price and vehicle condition. That does not mean that fair wear & tear standards are obsolete. They allow for a uniform and neutral assessment. Which damage lessors actually charge to the fleet-owner and how much they invoice needs to be balanced against commercial interests. With the mobility budget in mind, lessors should be aware that in the near future it is the driver and no longer the fleet manager who decides where he will take his business.”

Peter Verbraeken, UBench: “If you can prove that you are saving the driver money by having the damage repaired beforehand, he will be delighted.”

DOS AND DON’TS OF DAMAGE MANAGEMENT 1. Better safe than sorry: have your fleet checked on a regular basis to create awareness and avoid a huge damage bill building up 2. While you are checking your vehicles, also verify the technical condition – tyre pressure, oil level, and etcetera – and the cleanliness.

3. Integrate this regular check-up in your car policy and define clear rules on when and how to declare damage.

4. Assessing the damage beforehand allows you to calculate whether it is

cheaper to have the damage repaired yourself or to return the vehicle unrepaired 5. It is probably not a good idea to declare all damage to the insurer. This will impact your damage statistics and lead to higher premiums or even exclusion from coverage.

6. Rewards usually work better than punishments. Offer your drivers benefits when they set a good example.

25

ADVERTORIAL

CONCEDED EDITORIAL SPACE

Arval – the innovative global leader Multi-national fleet specialist Arval is a European leader in full service leasing and a key partner in the worldwide Element-Arval Global Alliance. Service and innovation distinguish Arval in the market.

It’s almost a year to the day since Arval completed the acquisition of GE Capital Fleet Services in Europe, to become a leader in the multi-brand full service leasing company in Europe.

Arval now operates a leased fleet of more than 1 million vehicles in 28 countries. The company is also a founding member of the Element-Arval Global Alliance, a strategic partnership with Element Financial, one of North America's leading fleet management companies, which has major operations in Canada, the USA, Mexico, Australia and New Zealand. The Alliance has a combined fleet of over 3 million vehicles under management in nearly 50 countries.

Arval’s size, however, is merely a symptom of its success, not a cause of it. The company has grown consistently since its launch in 1989, thanks to the quality of the advice and service it delivers to customers. Owned by international banking group BNP Paribas, Arval has the resources and expertise to

serve SMEs at a local level, large companies on a national basis, and international corporate on a multi-national stage.

Arval Consulting, for example, works with fleet customers to identify ways to improve fleet efficiency and employee mobility.

Arval may be a leasing specialist, but it offers rental and lease solutions for durations as short as a month to as long as several years.

For companies seeking a more hands-off approach, Arval Outsourcing Solutions liberates clients from the day-to-day administration and responsibilities of running a fleet, keeping vehicles on the road and drivers mobile, while leaving clients free to focus on their core business.

In this information rich age, Arval Active Link supports its fleet customers by helping them analyse then act on the data generated by their vehicles. This integrated telematics solution delivers expert insight

into fleet performance and highlights areas of potential improvement.

Built on an industry-leading IT infrastructure, Arval’s web-based applications, Arval Analytics and Arval Fleet View, give fleet decision makers 24/7 access to their fleet information and key performance indicators, whether they are running a handful of cars in one country, or thousands of vehicles across a continent.

In addition to its comprehensive coverage of Europe, Arval now has a substantial presence in the world’s growing markets, including India and Russia; as well as a joint venture in China; and strategic positions in Latin America, via its own operation in Brazil and joint ventures in Peru and Chile.

Clients with vehicles in more than one country now account for 25% of Arval’s business, and its International Business Office (IBO) manages the fleets of about 200 organisations, working with customers to deliver KPIs, providing benchmarking opportunities, and facilitating company car policy harmonisation, where appropriate.

The Element-Arval Global Alliance extends these services around the world, and at the same time gives customers the streamlined advantages of a single point of contact.

And in the only area where size does matter, Arval’s global scale enables it to negotiate competitive terms with vehicle manufacturers and aftermarket suppliers, on a national and international basis, in order to deliver advantageous pricing and services to its customers.

JOIN THE CVO BREAKFAST MEETING WITH A FOCUS ON SMART MOBILITY 17 NOVEMBER IN BARCELONA On 17 November, the day after the 2016 Fleet Europe Forum, the Corporate Vehicle Observatory organises its second Breakfast Meeting. Corporate fleet managers and experts will get insight in the latest results from the 2016 International Fleet Barometer and more specifically on The Route to Smart Mobility.

Last year, during the first-ever Breakfast Meeting of the Corporate Vehicle Observatory, acknowledged experts and industry leaders underlined the irreversible shift from car fleet management to mobility management. This year, in Barcelona, this mobility shift will be unravelled in an even more detailed and integrated way in order to offer you possible solutions to prepare your future mobility management.

FLEET EUROPE #86

DON'T MISS THIS UNIQUE INDUSTRY INITIATIVE AND REGISTER NOW Attendance is free.

• Date: 17 November 2016 • Timing: 8h30 - 11h00 • Location: Hilton Hotel, Avenida Diagonal 589-591, Barcelona • Register today at Contact1@corporate-vehicleobservatory.com

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DOSSIER

waiting 8EVs: on the business case Jonathan Manning

Stumbling sales of electric vehicles threaten serious delays in a zero emission future, despite promising forecasts for their whole life costs.

CHARGING INFRASTRUCTURE Few commentators challenge the idea that zero emission vehicles will dominate the market in future, but the question is when.

7.1 %

GROWTH IN EUROPEAN ELECTRIC VEHICLE SALES IN THE SECOND QUARTER OF 2016

SERVICE, MAINTENANCE AND REPAIR SAVINGS, 4 YEARS / 100,000KM MODEL

FUEL TYPE

DIFFERENCE

%

COST SAVING

Astra CDTi 1.6Ltr

Diesel

100 %

£0

Astra T 1.0Ltr

Petrol

84 %

£273

Ford Focus TDci 1.5Ltr

Diesel

83 %

£287

Ford Focus T 1.0Ltr

Petrol

81 %

£319

Nissan Leaf

Pure Electric

66 %

£575

Source: Lex Autolease, 2016

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Stalling sales of electric and hybrid vehicles have raised questions over the speed with which zero emission engines will replace internal combustion engines in Europe.

New figures, released by the ACEA, reveal that electric vehicle registrations, both battery and plug-in, grew by just 7.1% in the second quarter of 2016, compared to 160% in the final quarter of 2015. The increase in sales of hybrid vehicles also slipped to 22%, compared to more than 30% in 2015.

Erik Jonnaert, secretary general of the ACEA, said, “The absence of an imminent market breakthrough might tempt some to argue that electric vehicles remain a business without a business case.” He believes governments across Europe need to stimulate demand by increasing their support for recharging infrastructures, and by ‘influencing consumer choices’, code for subsidies and incentives.

With a higher acquisition price and issues over range and recharging, sales of alternatively-fuelled vehicles have relied on grants. These can reach €16,000 per vehicle in countries like Norway, where electric vehicles now account for more than 17% market share.

But elsewhere, fleets and leasing companies have neither enough data nor experience to predict TCOs with confidence.

“Residual value and remaining battery life are the Achilles heel of the electric

car,” said Emeritus Professor Peter Cooke.

“There have been insufficient units sold to generate a critical mass of knowledge regarding future used car prices – a potential deal-breaking issue for the professional organisation.”

BRIGHT FUTURE However, new forecasts from the UK’s largest leasing company, Lex Autolease, show that electric cars can deliver lower TCOs, with major savings in tax, fuel and service, maintenance and repair offsetting higher depreciation.

Over a four year/100,000km period, for example, the SMR costs for the Nissan Leaf are £575 cheaper than an Opel Astra 1.6CDTi and £288 lower than a Ford Focus 1.5TDCi. Much of the savings are down to the reduced components and consumables, and Lex has also noted that brake and tyre wear are noticeably reduced.

Electric vehicles are also proving far more cost effective in terms of fuel, with Lex Autolease calculating that the Leaf is about £48 cheaper per month to power over a four year/100,000km contract than a Volkswagen Golf 1.6 Tdi. If SMR and fuel costs are fairly common across Europe, it’s savings in tax, for both company car driver and employer, where the most significant gains are to be made in certain countries. In the UK, for instance, more than 10% of Britvic’s 500 company cars are now alternatively fuelled, with drivers at the international soft drinks company prepared to contribute salary towards the higher lease cost of hybrid cars because their company car tax is so much lower.

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ADVERTORIAL

CONCEDED EDITORIAL SPACE

Toyota: the success story continues Ever since the first Prius Hybrid took to the roads nearly 20 years ago, Toyota has been proud to be called the Hybrid leader. And this is demonstrated by the figures: some 31% of Toyota brand European sales are Hybrid vehicles.

Of these 49% are in Fleet (YTD August) from 3 of the 7 Hybrid models in the range – Yaris, Auris and RAV4. This represents a 20% increase in Fleet compared to last year.

Toyota’s commitment to Hybrid technology remains as strong as ever and has even been extended to the 2nd generation Prius plug-in hybrid premiered at the recent Paris Motor Show.

Hybrid is proving itself over and over again to be a smart choice, both for new cars and used cars. Eurotax forecast RV data shows Hybrid engines rank highly across Europe compared to conventional engines, which is then reflected in attractive Full Service Leasing offers and low TCO -- a win-win for fleet customers.

"RVs are the lifeblood of our product & pricing strategy and we give the highest priority to this matter, ensuring that our customers are reassured", Dave Cussell, General Manager Fleet, Leasing and Network at Toyota Motor Europe.

PLUG-IN HYBRIDS – THE NEXT GENERATION The plug-in hybrid (PHV) was evolved from a fusion of the hybrid vehicle and the electric vehicle.

An evolution of the responsive, intuitive and remarkably quiet hybrid drive system, already available on seven other Toyota models, the Prius Plug-in Hybrid (PHV) builds on the strengths of the latest generation standard Prius, the latter developed with a focus on three key pillars: the Toyota New Global Architecture (TNGA)-based platform, design and styling, and a new, full hybrid system.

Despite an increased battery capacity, charging the battery pack of the Prius Plug-in requires just 2.0 hours using a Mode 2 (Mennekes) 230 volt outlet. Even on long journeys, there's no need to worry about the battery running low. If the battery does run low on power, the vehicle will carry on operating as a hybrid vehicle resulting in no range anxiety: With the hybrid system's 1.8 litre, 4-cylinder, Atkinson cycle VVT-i petrol engine playing a key role in the overall efficiency of the new Toyota plug-in hybrid.

On top of this, solar panels on the roof charge the battery when the sun shines and a gas injection heat pump system keeps the air conditioning working when the car is being driven in battery-only mode.

HYBRID SALES UP 38%: TOYOTA MOTOR EUROPE SALES IN THE FIRST QUARTER OF 2016 ARE GREENER THAN EVER 14 APR 2016 Full Hybrid remains the mainstay of Toyota’s alternative mobility strategy, and we continue to research and develop in a variety of alternative fuels, including of course Electric and Fuel Cell.

The Prius Plug-in Hybrid builds on the strengths of the latest generation standard Prius.

FLEET EUROPE #86

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WE KNOW A T HI N G O R T WO ABOUT PARTN E RS H IPS INTRODUCING THE JAGUAR AND LAND ROVER RANGES FOR BUSINESS Jaguar Land Rover brings together two iconic British car brands to form the UK’s largest premium automotive manufacturer. Across our diverse range of vehicles we offer astonishing fuel economy, advanced in-car technology such as our innovative InControl Touch Pro infotainment system, and an impressive 85 derivatives* below 130g/km CO2.

Of course, before you find the right vehicle for your drivers, it’s important to find the right partner for your business. With extensive experience across a range of industries, our team of dedicated fleet specialists will be by your side from day one. Choose Jaguar Land Rover. And let us show you the true meaning of partnership.

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*

DOSSIER

stakeholder 9Assuring satisfaction Tim Harrup

When considering the structure of a fleet or car policy, the first thoughts are often about the business needs, the cars and the drivers. But there is another crucial element – managing change internally. Gregory Bech, Category Manager Fleet EMEA for Johnson & Johnson, and Lee Warner Global Fleet & Transportation Manager - Workplace Services / Enterprise & Technology Solutions at Unilever, tell us how they do this.

Ensuring harmony between the various stakeholders is a clear priority. Johnson &Johnson use a Fleet Governance model which actively engages all stakeholders including HR, Finance, Sales, Management, Safe Fleet and its Fleet Management partner.

As Gregory Bech says: “This results in every decision being made regionally or locally regarding fleet, having already been discussed with the stakeholder functions and being already balanced”. Unilever has a similar policy: all senior key stakeholders from each business entity are involved with any Global Fleet Policy decisions or changes.

Lee Warner: “This is then cascaded down through the relevant teams into the local markets. This way it enables us to have a consistent aligned global fleet strategy”.

Lee Warner, Unilever

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PURCHASING Traditionally, the fleet was always part of purchasing. But times change, and with all of the above-mentioned stakeholders, the lines are more blurred. So how strong the role of Purchasing is going to be in deciding the fleet and car policy in the future, is another issue.

Procurement would still appear to be crucial. Both of our experts confirm this in one way or another. Following the process involving Johnson & Johnson’s Fleet Governance model, it is then up to Procurement to ensure execution of policy related items. Each stakeholder group, however, is responsible for implementing aspects such as budgets or eligibility.

And for Unilever, Purchasing is also a very strong part of the global fleet strategy. This is demonstrated by the fact that a recently completed global OEM tender and subsequent global leasing tender will help the company to ensure it is getting the best value for money by consolidating its total fleet volume. Lee Warner and Global Procurement work very closely on all fleet related projects.

THE LOCAL QUESTION The thorny issue of local preferences and customs is of course key to avoiding friction during change. People are quite naturally wary of having new methods imposed on them, and have to feel that their opinions are of value.

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DOSSIER

TOP TIPS FOR AVOIDING INTERNAL FRICTION • Identify the right people to represent their functions from each of the stakeholder groups • Be open and honest with your key stakeholders on what you are trying to achieve.

• Ensure a well-defined and agreed governance model around the team • Try to get sign off on policy from as high up as possible making sure governance, sourcing and service are covered • Ensure all senior key stakeholders are involved from the beginning • Instigate good and frequent communication between teams

If the objective is to try and change a local vehicle choice list based on TCO, it is important to make sure local knowledge is taken into account: driver profiles, role requirements, mileage, vehicle perception.

Then, once again, get support from local key stakeholders.

these ties. Along with this, he is responding to a request from the CEO to have the safest fleet in the world: “We’re working hard with our Safe Fleet colleagues to make that a reality and this is taking the priority right now in terms of adding ‘new’ domains to our scope”.

If the company wishes want to roll out telematics across a number of countries, other factors and stakeholders come into play.

Local due diligence and support must play their part, work councils for policy changes, for example. But of course a dialogue goes two ways, as Gregory Bech confirms: “The Fleet head ensures all of the fleet is maintained centrally using a hub and spoke model. This means that the local knowledge is also international and vice versa”.

At Unilever too, Lee Warner realises that the role of the fleet manager, and the scope of his role, is expanding: “As vehicle technology / safety equipment is evolving, we need to ensure that we are offering this back to our drivers and it is consistent across all Fleets. Telematics will also play a part in helping not only to reduce accidents but also allow more accurate driver behaviour data transparency”.

CSR AND ETHICS This rapidly growing concept, with legal implications among others, is set to influence the role of the fleet manager in the future. Lee Warner is very clear about this: “I believe this is going to play a large part, and certainly within our business sector.

We are constantly looking at improving carbon omissions, waste, fuel consumption, etc. Mobility policies, electric vehicles and alternative fuels will start to become the norm within the corporate company car offering”.

It may seem reasonable to suggest, in the light of what our experts think in this particular area, that by showing drivers and all of the stakeholders that ‘new’ features are benefitting them, friction may be less likely.

And in general terms, perhaps the word ‘involvement’ may sum up a lot of what Gregory Bech and Lee Warner are trying to tell us.

Gregory Bech agrees: “CSR is part of our company’s DNA. Therefore our fleet guiding principles are also focused around our communities with CO2 and other environmental goals, our employees with car safety equipment and with driver behaviour helping to protect other road users”.

NEW FACTORS Other domains to have relatively recently come into the world of fleets, and which lead to change and therefore, potentially, friction, include safety, connectivity and telematics.

Safety has always been a strong partner to the Fleet head at Johnson & Johnson, and Gregory Bech confirms that he is consistently working on strengthening

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Gregory Bech, Johnson & Johnson

FLEET EUROPE #86

If you want to manage your fleet efficiently and transparently, you need to consider alternatives to traditional closed-end calculations. By unbundling the services in a pay as you go model, you’ll not only achieve targeted potential savings, but you’ll also capitalize on proactive services. What exactly does this mean to you? As a world leader in fleet management, ARI supports you in your ongoing operations, e.g. billing, remarketing, fuel cards, maintenance repair or damage claims.

We will also meticulously optimize all processes based on big data concepts. And always, with transparency in the foreground, thanks to online access to all decision-relevant reports and with open accounting based on actual costs per month, vehicle and service module.

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SMART MOBILITY

TCM likely 10 to be lower than TCO Steven Schoefs @StevenSchoefs

Since its inception in the early 2000s, Total Cost of Ownership has been the standard by which multinationals analyse and evaluate fleet cost. But time has moved on.

Fleets have optimised various elements in their TCO configuration: they select more efficient vehicles, negotiate better lease and insurance rates, and optimise the effects of taxation and regulation. Fleets have also optimised their employees’ work-life balance. Furthermore, both fleet suppliers and clients are moving towards a wider range of mobility solutions.

So the correct measure of fleet cost is no longer TCO, which relates to fleet size and is calculated per car, but Total Cost of Mobility, which is calculated not per car but per employee – better described as a mobility user.

Included in TCM are cars and their additional services, but also all other mobility modes: car-pooling, car-sharing, taxis,

usage of car parks, public transport, air travel. That of course requires a different mindset, and a different title: fleet managers become mobility managers.

Firstly, they have to have a more holistic approach. Secondly, they must identify useful mobility options in a far wider range of services to choose from and suppliers to work with. And thirdly, they need to establish a correct mobility profile for all employees.

The result will be a clearer picture of their company's total mobility expenditure, and a greater transparency of real mobility costs.

You might think it’s still too early for TCM. But suppliers are already talking about becoming mobility partners, offering a range of solutions and connected reporting systems.

Nearly all leasing companies and car manufacturers run or participate in a car-sharing programme. Mobility cards are replacing fuel cards, offering corporates and their employees access to the wide and wonderful world of mobility modes.

All of which will lead to seamless mobility usage, with employees composing a mobility frame in harmony with their work-life priorities. Companies will benefit from the new opportunities, increased employee satisfaction and reduced cost: TCM, tailor-made as it is – or will be – is likely to be lower than TCO.

It is a high time to move from TCO to TCM.

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FLEET EUROPE #86

THE NEW OPEL MOKKA X

» LED headlights for 30 % brighter visibility* » Forward Collision Alert » Intelligent All Wheel Drive »

With premium-class innovations. *Compared to halogen headlamps.

The listed features are optional/available with selected trim levels only.

Fuel consumption combined 6.7–3.9 l/100 km; CO2 emissions combined 155–103 g/km (according to R (EC) No. 715/2007).

opel.com

SMART MOBILITY

Smarter city thinking Steven Schoefs @StevenSchoefs

Evolution or revolution? It’s a conundrum facing vehicle manufacturers, technology companies, city planners and, of course, fleets, as the world moves towards the development of smart cities. At stake is the way that roads, and indeed entire urban transport systems, function. The ultimate goal is clean, efficient, safe and congestion-free driving, which would be a huge benefit to fleets as the heaviest users of cars, vans and trucks on urban streets.

Autonomous vehicles have a pivotal role to play in the development of smart cities, but maximising their potential demands a complete, connected infrastructure.

Seamless connectivity is needed to make a smart city work.

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City planners describe a smart city as a place where smart solutions ensure that assets, resources and infrastructure are used with maximum efficiency. Autonomous vehicles are essential to achieve this goal, but without a coordinated approach from all parties involved, the opportunities presented by self-driving cars could be squandered on the very streets and roads where they are most needed.

REDUCING UNCERTAINTIES “For a self-driving car, the biggest challenge is going to be a city driving environment,” said Arunprasad Nandakumar from Frost & Sullivan. “You will start to see self-driving cars on highways and parking lots and in controlled environments, long before a city. The more uncertain the driving conditions, the more challenging it is for self-driving technology. You have to reduce these uncertainties, and the best way to do this is by serious communication between the various nodes.”

Autonomous vehicles that merely communicate between themselves to avoid collisions, for example, would not qualify as a smart city solution. For safe,

free-flowing roads, smart cities require information services that cover parking, traffic management, electric vehicle recharging, payment systems and integration with other modes of transport to create a truly connected system.

“Only with high definition technology, high definition mapping and geo-fenced areas will smart cities harness the maximum benefits of autonomous vehicles,” he added.

Drivers, too, require seamless connectivity to optimise the time they spend in their vehicles.

“We need to look at much faster band width,” said Arunprasad Nandakumar.

“There is, for example, technology that helps cars connect to WiFi much faster than the 4G network via a SIM card.

A self-driving vehicle can work independently, but to maximise the opportunities it needs seamless connectivity; not just traffic data, but the ability to sit and work in a car just like you would in a coffee shop or in an office.”

The stepping stone to a smart city environment is likely to be lanes dedicated to autonomous vehicles, separating selfdriving cars from the rest of the vehicle path. Perhaps the sight of smooth-flowing lines of traffic through congested city streets might even accelerate the uptake of autonomous technologies, as more drivers want a smarter solution to their transport through urban areas.

FLEET EUROPE #86

Experience the future of luxury THE NEW VOLVO S90 For businesses that want their executives to stand out for all the right reasons, the new Volvo S90 offers a compelling alternative to the usual options. With clean Scandinavian design, finely crafted natural materials and the world’s most advanced autonomous drive systems, the new S90 is the future of luxury.

Glimpse the future – in more ways than one – at the Fleet Europe Forum 2016, on 16th November in Barcelona. Visit the Volvo Car stand and experience our unique 3D enhanced reality showroom, powered by Volvo and Microsoft HoloLens, that lets you explore the new S90 in an extraordinary interactive virtual world.

VISIT US AT THE VOLVO STAND VOLVOCARS.COM/FLEETSALES MADE BY SWEDEN

Official fuel consumption for the new Volvo S90 range in l/100km: Urban 9.5 – 5.2 , Extra Urban 5.9– 3.8, Combined 7.2 – 4.3. CO2 emissions 165 – 116g/km. Fuel consumption figures are obtained from laboratory testing intended for comparisons between vehicles and may not reflect real driving results. Models may vary depending on market.

INNOVATION

Paris Motor Show 2016:

Tension in the air Dieter Quartier @DieterQuartier

This year’s Mondial de l’Automobile is buzzing with electricity. Battery-powered concept and production-ready cars promise a realistic range and faster charging speeds.

In a more mainstream and petrol-consuming future, most newcomers are to be found in the SUV realm.

AUDI A5 SPORTBACK Frameless doors, a sloping roofline, 480 litres of boot space and room for 5: this is the second generation A5 Sportback. It is slightly longer than before, but weighs up to 85 kilos less thanks to the extensive use of aluminium. The optional Virtual Cockpit displays navigation and multimedia content right in front of the driver.

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AUDI Q5 The successor to Audi’s successful icon looks more muscular, but weighs 70 to 100 kilos less thanks to its lightweight construction. Powertrains and high-tech features are taken from the current A4.

Audi promises the best aerodynamics in

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Audi A5 Sportback

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Audi Q5

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Citroën C3

© Bitton

its segment, which contribute to the classleading fuel efficiency.

CITROËN C3 If you have a successful model like the C4 Cactus, why not transpose its design cues to another? The black lateral Airbump protection panels and two-level headlight units suit the new B Segment C3, which comes with the innovative ConnectedCAM. This front camera films the road ahead and allows you to store and share the images online with the myCitroën app.

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HONDA CIVIC The maverick Japanese hatchback goes a bit more mainstream. Compared to its predecessor, it is a whopping 13 cm longer, 3 cm of which are to be found in the wheelbase. New under the bonnet is a turbocharged 1.0 three-cylinder petrol unit outputting 127 hp, mated to either a six speed manual or a CVT. Honda’s in-house developed 1.6 diesel is carried over, but not without the necessary tweaks to improve efficiency.

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Honda Civic

© Lacombe

FLEET EUROPE #86

INNOVATION

HYUNDAI I30 “Change is good”, reads the brand’s slogan for the Tucson. That is maybe why Hyundai moves away from its original Fluidic Sculpture design philosophy. This third generation i30 wants to appeal to an even wider audience by offering a truly European look & feel, advanced connectivity and safety features.

PEUGEOT 3008.

SUV’s are hot. No wonder then that the new 3008 intensifies its adventurous looks, moving away from the polarising MPV-ish design of its predecessor. Equally refreshing is the i-Cockpit, with a tiny steering wheel and a configurable heads-up instrument cluster. If you need 2 extra seats or more boot space, there is also is bigger brother, the new 5008.

LAND ROVER DISCOVERY 6 The iconic British SUV makes a design leap and moves up the ladder to become the f model of Land Rover’s “leisure” carline. It is not a Range Rover, but its look & feel emanate quality. Offroad capability remains the DNA of the model, but with fuel efficiency and TCO in mind, the entry-level engine will be a high-power version of the 2-litre Ingenium diesel.

SKODA KODIAQ The Czech VW-subsidiary has high expectations for its Tiguan-derived 7-seater SUV, which is characterized by confidence inspiring looks and materials. Power comes from a 1.4 or 2.0 TSI on the petrol side and either a 150 or 180 hp strong 2.0 TDI if you prefer diesel. Its 4.7 metre long body translates into a class-leading 720 litres of boot space, which can become 2,065 litres with the back seats folded down.

OPEL AMPERA-E Boasting a 500 km range, this electric MPV-like hatch takes away range anxiety. It offers 5 seats and a load capacity of 381 litres, while it can accelerate from 0 to 50 kph in just 3.2 seconds, embarrassing many a sports car. OnStar and smartphone integration are amongst the many advanced features.

VW I.D. The future can’t come fast enough for Volkswagen. This concept “heralds a new era” for the brand, which wants to have this electric Golf-sized hatchback production ready by 2018. It unites every key innovative technology that is currently under development: wireless charging, autonomous driving and augmented reality.

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Opel Ampera-E

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Peugeot 3008

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Skoda Kodiaq

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Hyundai i30

FLEET EUROPE #86

© Bitton

Land Rover Discovery

VW I.D.

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FACE TO FACE

Trust is good, control is better Tim Harrup and Steven Schoefs @StevenSchoefs

Selçuk Gündoğdu and Antal Pálmai are responsible for thousands of the most up to date vehicles the industry has to offer. So for this fourth instalment of our Face to Face series, we decided to surround them with some of the most stunning vehicles of the second half of the last century. The setting was ‘Classic Remise’ in Düsseldorf, where Selçuk and Antal did their best to take their eyes off the Porsche, Triumph, MG, Alfa Romeo models, and tell us about managing an international fleet at the beginning of the 21st century.

Classic cars are a passion for many enthusiasts, and Classic Remise in Düsseldorf is a setting where cherished cars are restored and, if their owners wish, put on display and sold. This love of the finest the motor industry had to offer in days gone by, serves as fitting reminder to the fleet management industry of today that cars and their drivers, along with other road users, have to be looked after all the time. And for international fleet managers, Selçuk Gündoğdu of Vaillant Group and Antal Pálmai of E.ON confirmed, it is a question of doing all this as efficiently as possible, and at the best possible cost without cutting corners.

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FLEET EUROPE #86

Antal Pálmai

Selçuk Gündoğdu

COMPANY E.ON (Energy specialist) FUNCTION Head of Global Category Management HR, Travel and Fleet NUMBER OF CARS (PC AND LCV) IN FLEET 15,000, 50% LCV NUMBER OF COUNTRIES 7 key countries, in total 12 IN FLEET MANAGEMENT SINCE 2007 REPORTING TO Director of Center of Competence Indirect and IT, Supply Chain FUNDING METHOD IN EUROPE 90% full service leasing, 10% buying INTERNATIONAL CAR POLICY No

COMPANY Vaillant Group (Heating and ventilation specialist) FUNCTION Group Commodity Buyer, Fleet & Logistics NUMBER OF CARS (PC AND LCV) IN FLEET 1650 cars / 2290 LCVs NUMBER OF COUNTRIES 19 IN FLEET MANAGEMENT SINCE May 2008 REPORTING TO Head of Indirect Purchasing FUNDING METHOD IN EUROPE Operational leasing FUNDING METHOD ACROSS THE GLOBE Mainly operational leasing through the group INTERNATIONAL CAR POLICY Yes in order to ensure a strong position from central purchasing perspective

E.ON

FLEET EUROPE #86

VAILLANT GROUP

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FACE TO FACE

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STRATEGY

What are the main goals of your international fleet strategy?

ANTAL PÁLMAI We would like to get all the countries, which vary in maturity levels, onto the same level of fleet management insight and best practice. But we have to get the basics right, before going into elements like driver behaviour. We have multiple leasing companies, and we are neutral where manufacturers are concerned. But we all know that just squeezing suppliers and downsizing, is the low-hanging fruit.

We need to look further, and the roll-out of the consistent fleet management approach we have in mature countries into other markets is important.

SELÇUK GÜNDOĞDU We are also looking to find a balance, a balance between driver satisfaction and cost saving according to corporate goals. If you only focus on cost, there may be driver dissatisfaction which will cost the company money. We look at all the important factors from the leasing company too, of course, cost, service, maintenance etc. If there is internal visibility and transparency, you are in a position to move on to the next stage, connectivity, telematics etc., and reducing downtimes for service personnel.

What have been the biggest hurdles to overcome when implementing an international fleet policy, and how did you overcome them?

S.G. The biggest hurdle is to get the support of the internal stakeholders and the country directors. You have to negotiate and to convince them. Of course, as central purchasing you can always force them, but I strongly believe it is better to convince them. They have a local view, and I have a helicopter view.

A.P. It is clear that the agreement of the internal stakeholders is crucial. This depends on the country. Some may be more fact-based, some more emotional… In some HR may play a greater role, or the workers’ council. Getting buy-in from everyone is important, and having your facts ready to show them, along with your arguments.

Of all the things you have achieved in fleet management, which one are you most proud of?

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A.P. I am most proud of the fact that I started in Hungary in 2007 with an owned fleet, no fleet management, no transparency, nothing… by the time I left in 2012 we had completely reorganised the fleet management department, we had a policy for benefit and company cars in place, we had switched from buying to leasing –we had put fleet management in place.

S.G. I am really proud of a project called LCE where we were trying to reduce from eight to three manufacturers, trying to get more visibility across Europe, regarding order processing, return of the cars. And we now have three preferred suppliers, which gives us a substantial cost saving.

If your company strategy changes, would you have to start fleet management again, or just adapt the fleet policy?

S.G. There is no need to start again. A change in policy might just affect the balance you are trying to find, but it is still a matter of balancing the various elements, finding a compromise.

A.P. There are things which will not change whatever the company strategy – driver behaviour, damage management, and it doesn’t matter whether you are driving a small car or a large car, an EV… If you’ve done your homework and analysed what your position is in the market, it is easy to adapt your strategy.

Moving on to the question of TCO, which are the most important elements?

S.G. First of all, define where your KPI’s are – is it the leasing rate, maintenance, tyres, fuel consumption… but at the end of the day, all these and more make up the elements of the TCO. If you cut the TCO pie-chart in half, one half, more or less, is financial – depreciation plus interest. This is very similar across Europe. Another 25% -30% is fuel. So the focus has to be put on these big pieces of the pie. And don’t underestimate the cost of downtime, a crucial element for a white fleet.

A.P. My approach may be slightly less common, but we are working with different leasing companies in different countries, so I don’t dig down into every detail of every contract. At the end of the day, it is the final FLEET EUROPE #86

FACE TO FACE

price-tag that matters. You will never be able to find the very best for every individual element and then put them all together into a

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perfect TCO arrangement. So we are moving away from such things as residual value matrices negotiated on a quarterly basis.

INNOVATION

What do you think is the future of the company car as a concept?

S.G. I think if we look forward fifty years we will still have them. The question is really about alternative powertrains and what sort of impact they will have. Looking forward to the generation Y and beyond, it may be likely that they will attach more importance to their smartphone or other IT device. And if they live in a city, some sort of mobility card could be better. But nothing much is likely to change over the next two or three years.

A.P. I believe that service cars have a few decades left. But alongside this, I think that benefit cars will gradually disappear. There are still people who think ‘the company takes care of everything to do with the car, so why should I change’. What I do think will emerge, however, is that people will be offered a mobility budget to spend on a car or anything else, and the younger generation might prefer this.

Does private lease figure in your thinking for company car users?

S.G. For company cars, the company image could be at risk – we have some identification on our cars, and our reps do not drive Porsche’s or huge SUV’s, which they could under this system. And with a company car we have minimum safety requirements which we can control.

A.P. We have a relatively significant fleet in private lease already, in Germany.

Where the future of fleet managers is concerned, the whole system still has to be managed. Even with private lease, while I can’t promise a certain number of cars to any individual manufacturer, I can only pre-negotiate. Fleet managers are likely to become more of a complex service manager.

What would you like to see the supply side give you that they don’t at the moment?

A.P. There are some very good tools. But I don’t think that the leasing companies have FLEET EUROPE #86

sufficiently comprehensive master data about each model, whichever country it is in. We are also operating a huge fleet of tailor-made LCVs. I believe that leasing companies still do not have the expertise to advise us and to manage customized vehicle fittings.

S.G. I would like a full overview of the full costs, not just those the leasing company shows us, but things like warranty costs.

And also of course life-cycle costs. What is the total cost of this car at the end of its contract.

What about predictive fleet management?

S.G. This is very sensitive, and legislation varies so much from country to country.

In the UK you can install any telematics devices, but in Germany and France it is not allowed to measure the work performance of an employee through telematics devices.

We use these devices where it is allowed, though. I believe there will be more telematics in the future, there needs to be. The real interest in telematics is in being able to use the data effectively.

Cars are becoming offices on wheels. Do you see the development as an opportunity or a danger?

A.P. Anything which takes your concentration off of driving, such as a smartphone, is dangerous. I don’t really want drivers to be looking at their in-car systems and computers even when they are in a traffic jam.

Doing anything else except driving when you are behind the wheel, is an issue.

S.G. Connectivity is available, but the infrastructure around the car is not in place – traffic lights and so on. Some manufacturers only put the devices in some brands, and it should be in all of them. In some cases these are good tools, so long as you know what the objective is. If it is for efficiency in terms of driving and working, this is good.

But at the moment, the negative side is too much in evidence.

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FACE TO FACE

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TIPS & TRICKS ANTAL PÁLMAI

SELÇUK GÜNDOĞDU

If you have an internal benchmark with mature countries, it is easier for the others to catch up.

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Reduce downtimes for service personnel. You can’t do business if the vehicle is off the road.

And dare to ask questions about whether diesel is still the best, and what to do with mobility in urban environments.

WHO’S WHO

ANTAL PÁLMAI

SELÇUK GÜNDOĞDU

Maybe running a joinery workshop.

If you weren’t in fleet and travel business, what would you probably be doing professionally?

In the automotive sector or may be in the aircraft industry as a project buyer.

Implementing a tool to increase fleet efficiency.

What is the first thing on your to do list for this year?

Integration of the fleet of our service subsidiary in France.

Ordering some heavily modified LCVs to fulfill unrealistic business expectations.

Craftsmanship.

Croatia, Isle of Brac.

Polski Fiat 126.

Lee Iacocca – being a self-made man as a foreigner, fighting through to the top at Ford, than losing everything and rebuilding his own career at Chrysler.

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

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

What is your favorite holiday destination?

What is the first car you had?

What person you admire the most or is/was an inspiration to you, and why?

Only believing in fact & figures, ignoring the balance between motivation for the staff & the right cost effectiveness.

Spending time with my family.

The west coast of Turkey (Aegean region).

A white Ford Escort 1.6 coupe, model year 1982.

My family.

FLEET EUROPE #86

FACE TO FACE

INSIDE FACE TO FACE Antal Pálmai of E.ON and Selçuk Gündoğdu of Vaillant Group, two non-German international fleet managers, being based in Germany and meeting for the Face to Face interview at Classic Remise in Düsseldorf.

If bad data goes in, bad data comes out.

Where benefit cars are concerned, people still want them and like them.

Benchmarking one company’s fleet against another is not easy.

Residual value doesn’t vary much from one supplier to another. If it does, there is something not right.

FACE TO FACE EPISODE 6

Both Antal Pálmai of E.ON and Selçuk Gündoğdu of Vaillant Group are convinced that international fleet management is at the crossroads of innovation in connectivity and mobility.

#88

Don’t miss the next Face to Face in the Fleet Europe Magazine n°88, published in January, where we deal with a hot topic: Sustainability and electricity in Mobility!

Steven Schoefs & Tim Harrup | PICTURES: Benjamin Brolet | PRODUCTION SUPPORT: Céline Gilson (organization)

FLEET EUROPE #86

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BUSINESS

Innovative solutions, closer to customer Steven Schoefs @StevenSchoefs

“I'm not sure our offices in La Défense are representative for our innovative spirit”, says John Saffrett, Global CAO at ALD International.

“Come back in April when we've moved into our new offices”. At its new Paris location, John Saffrett and his team will feel more like a 'start-up'.

Saffrett is Chief Admin Officer, responsible for ICT, Digitalisation and Innovation. But he sees himself first and foremost as a facilitator for all the talent in his worldwide organisation:“Three years ago, we decided we needed to operate in a fundamentally different way. Headquarters should not dictate, but facilitate. We created hubs to get things done, and generated a culture to support that. Not by measuring our people at every turn, but by empowering them.

The result: products are developed much faster, much closer to the client, and much easier to adapt”.

“The platform will be rolled out in all countries. It is device-agnostic, enabling each country to find the best local telematics device provider. This also allows us to align with the OEMs, if and when they make data available. Once we map a device into our platform, all offers from all our countries become available. What each country does with these, is up to them: they can switch on one or many of those offers at driver and client level. They can also develop new offers. A platform allows people to play and develop, a system doesn’t – that’s the crucial difference”.

How did you generate that change?

Will private lease completely reshuffle the corporate fleet market?

“We created a voluntary innovation community, which now has more than a hundred and fifty members across the group.

They literally are the idea group, and they communicate every day. When an interesting idea rises up, we will do a lab – that is to say, bring it to a market. Play and learn”.

How do you determine which country gets to develop what?

“Passion for the idea is the first criteria.

Either driven by a commercial imperative, by opportunity, or by a CEO's strategic vision. Telematics is a commercial imperative in the UK. In the Netherlands, we are passionate about mobility, because the market there is receptive. Our car-sharing hub in Italy is the result of a senior business relationship. But we partnered the Italian project with France, which is advanced in car-sharing. We always get two countries to work together on these projects”.

As Global CAO, John Saffrett is the facilitator of ALD’s new digital services.

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You are marketing a telematics platform in the UK shortly, and in Spain soon after. Where will be next?

“Mainly it's incremental. The market for private lease is coming from the hire-purchase and the traditional personal contract-purchase market. For most of the leasing companies, this is incremental business. We see all leasing companies jumping into private lease. We face an interesting challenge in scaling up our private lease capability quickly”.

What is new on MyALD? “We had a number of different mobile platforms and portals throughout the Group. In France, we have invested a lot in user experience, on mobile and on our portal. We decided to use this as a group solution. The plan is to complete that by the end of the year”.

Apple, Google and Uber: which of those industry disruptors will you be working with first?

“I wouldn't like to commit. I would like to work with all of them. And I think we eventually will! But even more fertile ground are the emerging start-ups.”

FLEET EUROPE #86

ADVERTORIAL

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Kia Optima Sportswagon: Style & Space Inspired by the 2015 SPORTSPACE concept – shown for the first time at the 2015 Geneva Motor Show – the Optima Sportswagon offers the striking exterior design and high quality interior of the 2016 Optima sedan, with the added practicality and appeal of a tourer bodystyle.

The Optima Sportswagon is equipped with Kia’s latest audiovisual navigation (AVN) system.

Michael Cole, Chief Operating Officer, Kia Motors Europe, commented: “The Optima has come to define Kia globally, and is credited with kick-starting the brand’s design-led transformation. The SPORTSPACE concept from 2015 was a clear intention of where we wanted to take the Optima next, and the Sportswagon adds an extra level of style and practicality to the well-received sedan.”

The new Kia Optima Sportswagon is due to go on sale across Europe on 1st September 2016.

CONTACT For more information about Kia Motors and our products, please visit our Global Media Center at www.kianewscenter.com

FLEET EUROPE #86

Cole added: “This is an important product for Kia in Europe, and it will increase our presence in this hugely important segment. In Europe, two thirds of all sales in the D-segment, and three quarters of all fleet sales in this class, are made up of tourers, so the Optima Sportswagon will play a critical role in attracting new private and corporate buyers to the brand. This is an important conquest product for Kia.”

HIGH STRENGTH BODYSHELL WITH ACTIVE SAFETY TECHNOLOGIES The new Sportswagon offers a high level of safety from its lightweight, high-strength body and high levels of passive and active safety technologies; • Advanced Smart Cruise Control, which automatically adjusts the Optima’s speed to maintain a safe distance from vehicles in front; • Autonomous Emergency Braking, which employs a long-range radar detection system to detect a potential collision with another vehicle or pedestrian and help bring the car to a halt; • Lane Keeping Assist System, which detects the Optima’s position in relation to lane markings and takes automatic corrective action if it senses the car starting to draft without the use of indicators; • Speed Limit Information Function, displaying the speed limit in the driver’s instrument cluster based on cameras detecting roadside signs; • Blind Spot Detection, with a visual warning in the door mirror when another car enters the driver’s blind spot.

The new engine updates for the Optima sedan are carried over unchanged into the Sportswagon, with the 1.7-litre CRDi diesel engine accounting for the majority of European sales. The engine benefits from a series of modifications, resulting in greater power output and torque, and reduced emissions. Producing 141 ps and 340 Nm torque, the upgraded 1.7-litre diesel engine will offer low CO2 emissions starting from 110 g/km.

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BUSINESS

Connecting with Europe Dieter Quartier @DieterQuartier

The recent acquisition of Telogis by American telecommunications company Verizon creates many opportunities in terms of the connected car. We asked Sergio Barata, General Manager EMEA, about Telogis’ ambitions in the European fleet industry.

What exactly is Telogis and who are its customers?

SERGIO BARATA First and foremost it is a connected intelligence platform, primarily focused around large enterprises with many vehicles and mobile-based resources.

Telogis started out as a telematics company in 2001, but we quickly realized that to deliver true value, we had to go beyond just optimizing fleet management. Therefor we went beyond vehicles and started looking at the optimisation of resources and the operational execution. We have gone from connecting fleets to optimising the supply chain end to end, and now we are looking at advanced automation.

Do you work together with OEMs to fulfil your customer’s needs?

S.B. Yes, we do have key automotive partnerships. OEMs can offer additional insights into the vehicle, capabilities in terms of diagnostics and management of the vehicles the customers are investing in. These partnerships with the OEMs definitely play an important, strategic role in terms of how we bring our solutions to market. As far as our global presence is concerned, Telogis is increasingly leveraging European OEM partners and their market footprint across Europe certainly guides us in determining our priorities across European markets.

Talking about your products and services: what is your definition of telematics?

Sergio Barata: "...enable our customers to make better decisions."

50

decisions on how they work, execute and plan – and how they compete. I would say the definition of telematics has certainly expanded over the last couple of years.

How strong is your presence in Europe and what are your ambitions?

S.B. Currently more than 10,000 vehicles are connected with Telogis technology. Compared to the U.S., our business in Europe is not as mature. We will mainly be focusing on the large enterprises across Europe. To replicate the success we have had to date, we will expand our operational and sales presence into the European countries. Also, we will be partnering with OEMs to help us to continue to accelerate there.

What is a Telogis’ most compelling USP? S.B. The fact that we provide a single platform. Traditionally, telematics companies are partnered with routing companies and mobility companies, with an integration type of approach towards the customer.

Our solutions, however, are delivered through a SAS model and are delivered through all those entities. There is a single path to ensuring they leverage the platform to deliver value. This resonates incredibly well with the large enterprise, who previously had to select several partners and then had to try and integrate them.

S.B. Looking at our specific solutions in that space, I think telematics essentially is getting additional operational insights and delivering services and technologies that enable our customers to make better

FLEET EUROPE #86

BUSINESS

Three questions to‌ Ross Jackson Tim Harrup

Ross Jackson, CEO, Traxall International: how the fleet domain is evolving with current trends.

What are the main three trends which will impact on fleet managers and fleet management in 2017?

Alternative Powertrains: It is clear that for many organisations, electric vehicles have a significant opportunity. Telematics: The ongoing development of telematics continues. We have yet to see wide scale adoption of a tool that can help drive out cost and deliver more accurate vehicle information. Leasing Company Consolidation: Potentially consolidation can mean greater cost and less choice and service for fleets.

How do you see the evolution of the TCO for both conventionally-powered cars and alternative powertrain cars?

As alternative powertrains such as electricity take more of the market, I believe

there will be a degradation in the TCO of combustion engine vehicles, petrol and diesel. In some markets diesel is beginning to be overtaken by petrol again.

How will the emerging trends for connectivity and mobility change the triangular relationship made up of company driver, fleet manager and fleet suppliers?

Some fleet suppliers are already adapting to these trends. They are talking of true mobility and true connectivity, which enable organisations to have a truly connected and mobile workforce if they wish so to do. The challenge is that only a minority of suppliers are currently gearing up to deliver these services.

BUSINESS

30 years in global fleet business Steven Schoefs @StevenSchoefs

John Wallace, Global Fleet Development Director at Volvo Cars

IN THE YEAR 2046...

Will there still be car dealerships?

Whether as a showroom or service point, there is a pivotal role to be performed at the moment and it will be fascinating to see how it evolves in the future.

Will the world be car accident-free?

At Volvo we have a vision that by 2020 no one should be killed or seriously injured in a new Volvo car, so yes that is my great hope and our ambition as a company.

Will we still drive mainly European brands, or will we have a truly global car market?

I think we are moving toward a truly global market, with many more players, some who may not even be involved in the automotive industry yet!

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In 1986, Volvo signed its first so called 'global' fleet agreement with AstraZeneca. That was the catalyst for the brand's global fleet structure – a first among OEMs. John Wallace, Global Fleet Development Director at Volvo Cars, marks the 30th anniversary of that momentous decision with a look forward to an even brighter future.

JOHN WALLACE Actually, Astra Zeneca (at that time still Astra, red) came to us. They were looking for a structured agreement for several of its operating countries. So from the start it was customer-driven, and it developed from there.

Of course, we already had fleet operations in many countries, and there were informal discussions and associations between different markets, but from that moment on, we put a global structure in place.

How did the organisation grow?

J.W. We had a restructuring in 1997 and brought in additional fleet specialists. In 1999, we supplied 965 cars to our global major accounts. By 2010 we had reached 8,830 cars, and by 2015 we hit 14,000 cars. In all, we now have about 150 global major accounts.

What does your global fleet team look like these days?

J.W. We have four Key Account Managers, all with experience in fleet sales at national level, and some who have a leasing background – myself included. Last year, we also put in place a new business centre in Gothenburg, which is now staffed by three customer support managers, to take care of day-to-day customer contacts. We also have two development managers.

What can you tell us about Volvo's fleet sales ambitions?

J.W. Well, globally, fleet represents more than 40% of our sales and it is increasing.

We want to build on that momentum with local and global customers. We're also focused on sales channels, and on how best to approach them. Globally, as of August 2016, our YTD figures saw True Fleet grow by 16.6%.

Which Volvo models are the most popular fleet cars?

J.W. In terms of our global major accounts, the top-selling cars are the XC60, closely followed by V40, then V60, then S60 – very similar to what is the case in private sales.

That similarity also means that the new S90 and new V90 are great opportunities for fleet sales.

Volvo has recently started the Drive Me project in Gothenburg. How do you think autonomous driving will change the company car concept?

J.W. The automotive industry is now at the watershed of significant changes and opportunities, driven by technology, digitalisation and customer demand. The goal is to make driving significantly safer and productive.

FLEET EUROPE #86

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REMARKETING

The roadmap to Remarketing Success Frank Jacobs @FrankJacobs

The Remarketing Forum 2016, to be held on 15 November in Barcelona, is your best opportunity this year to prepare for the challenges and opportunities of tomorrow's Remarketing – and to network with peers and experts.

After successful editions in Hamburg and Rome, the one-day event – unmissable for fleet professionals who want to get to grips with this complex but vital TCO element – moves to Barcelona.

Here is a quick rundown of the subjects to be tackled at the annual conference:

Dangling at the very end of a vehicle's life cycle, Remarketing long has been a much-neglected element of a fleet's value chain. Fortunately, that is changing: fleet professionals are eager to learn about the challenges – and the opportunities – Remarketing generates for their TCO. For the third year running, Fleet Europe is organising a Remarketing Forum that zooms in specifically on Remarketing.

OW TO MANAGE UNCERTAINTY IN H INTERNATIONAL REMARKETING The global economic picture is beset with dangers and threats. How does this relate to the Automotive industry in general, and the Remarketing sector in particular?

This session will include a global economic forecast, linked to Automotive in general and Remarketing in particular. It will also examine the impact of the economy on vehicle trade and resale, focusing on diesel and alternative powertrains.

OW TO MANAGE CURRENT H REMARKETING CHALLENGES Cross-border trade is a promising, complex aspect of Remarketing. What is the current situation, and what are the prospects for greater clarity and transparency?

This session will include a presentation on the Future of Car Remarketing Auctions

by Jim Hallett, CEO and Chairman of the Board at KAR Auction Services – an industry-leading used-vehicle auctioneer in the U.S.

Don't miss the opportunity to join 150 industry professionals to prepare the remarekting challenges for tomorrow

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HE OEM PERSPECTIVE T ON REMARKETING Manufacturers have a great stake in the residual values of their cars – including the alt-fuel ones. How can you use this to your advantage?

FLEET EUROPE #86

REMARKETING

This session will include a presentation by Sebastian Fuchs, Director International Used Car at Volvo Cars. He will discuss new vehicle technology, alternative powertrains, connected cars – not just from an OEM point of view, but also as tools to increase the residual value of your fleet.

LCV REMARKETING Vans are a different beast from cars. The parameters are different, also in Remarketing. Here's why, and how.

ETTING READY FOR G THE FUTURE OF REMARKETING The sector needs disruption. Will you benefit or suffer from the change? In other words – how to make the lessons learned today work to your advantage!

A FULL AGENDA Fleet professionals who realise the importance of Remarketing, will realise the importance of the Fleet Europe Remarketing Forum 2016.

To learn more, visit the event website at http://forum.fleeteurope.com/programme/ remarketing. Register soon, as places are limited!

As per usual, Fleet Europe has bundled a variety of events together to maximise your networking and learning opportunities. An IFMI session will run in parallel to the Remarketing Forum in the 15th, and on the Fleet Europe Forum, Fleet Europe Village and Fleet Europe Awards will all take place in the Catalunya Congress Center on the 16th of November.

Learn more at http://forum.fleeteurope.com.

FLEET EUROPE #86

REMARKETING

Growth in volume and confidence Frank Jacobs @FrankJacobs

As the year draws to a close, it’s tradition to look back on past events and achievements. For Remarketing, let’s broaden the scope, and review at what happened over the last three years across Europe. This longer perspective shows us an industry growing in volume and confidence – and finally finding its own voice.

8 MILLION USED CARS SOLD IN THE UK IN 2014

300 %

INCREASE IN VIRTUAL AUCTIONS OVER THE PAST DECADE

That process culminated in November last year with the official launch of the Car Remarketing Association (CARA), which aims to work not just to set standards and rules for the sector but also to lobby for the industry with governments and supranational institutions like the EU. VALUE CHAIN This befits an industry that has experienced remarkable growth, adding to its weight within the wider automotive industry.

Remarketing may be the last link in the value chain of a vehicle's first – or second, or third – life-cycle, it touches many players: car manufacturers, dealers, lease and rental companies, auctioneers and new owners. Taking the longer view, it becomes clear that problems and setbacks in residual value generation are the noise, and that the rise of RVs is the signal.

BUOYANT MARKET Over the past few years, the UK has had one of the more buoyant car markets – both for new and used vehicles. Overall used car sales in 2013 totalled 7.4 million units, the highest volume since 2006, generating a record market value of £42.7 billion.

The strong market spurred a flurry of new business initiatives; ALD UK signed BCA as its remarketing supplier; and remar-

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keting specialist Manheim, which saw a 300% increase at its virtual auctions in the UK over the previous decade, expanded its Simulcast technology across its other European markets – to name but two.

SOARING PRICES Used LCV prices also continued to soar in the UK, with bidders having to pay an average of 45% more for one than they would have back in 2006, before the outbreak of the financial crisis. And even used EV prices went up, with double as many sold in Q1 of 2014 compared to the same period in the previous year. Strong growth can lead to growing pains. In November 2014 the first Fleet Europe Remarketing Forum held in Hamburg pointed out some of the challenges that remarketing faces, especially in a wider European context – lingering uncertainty over alternative-powertrain RVs, the uncharted territory of cross-border remarketing, the tug of war between diesel and petrol, to name but a few.

8 MILLION UNITS As if to indicate that even in its most buoyant market, there were limits to growth of remarketing, used-car prices in the UK fell sharply in November 2014. Still, the sector managed sales of 8 million units in 2014, outperforming the new-car market for the first time.

In the UK, used-car prices continued their consistent rise, by 1.3% in 2011, 4.7% in 2012, 13.8% in 2013 and by 8.0% to £7,622 in 2014. Autorola UK saw a 39% (£3,220) increase in the average LCV price over the year. The spring of 2015 saw one of the most consequential deals in the remarketing industry: BCA Group, which remarkets FLEET EUROPE #86

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REMARKETING

PRE-CRISIS RECORD For the whole of 2015, the French used-car market grew by 2.1% to 5.6 million – almost equalling the pre-crisis record of 2007.

Used car sales and residual values in Europe are benefiting from positive flow, which results in a Remarketing industry growing in confidence.

2.1 %

over one million vehicles globally p.a., was acquired by Haversham Holdings, a move certain to energise BCA's expansion across Europe and beyond.

6.7 %

FRENCH BOOM In France as well, 2014 was a good year for the used-car sector: it progressed by 2.4% to 5.4 million used cars sold. Booming sales were good for business. After a decline of 4.4% in 2013, vehicle auctions surged 6% in 2014, adding up to a market value of €1 billion, 54% of which online (31% in 2013).

Market leader BCAuto Enchères increased its turnover by 23% to €226 million in 2014.

GROWTH IN THE FRENCH USED CAR MARKET IN 2015

RISE IN GERMAN USED CAR VALUES IN A YEAR

For more signs of French market dynamism, see Mitsubishi's launch of Mitsubishi Occasions, a used-car service specifically for France; and Volkswagen France's decision to make Used Cars an individual business unit.

EU FORECASTS Same good news from Spain, where usedcar prices keep rising, to €12,187 in June 2015, up 6% over the previous month.

Throughout 2015, RVs continued to improve across the whole of Europe, with RV forecasts rising by 6.7% in Germany from September 2014 to September 2015, by 5.9% in Italy, by 3.8% in France, by 1.9% in Spain and by 1.6% in the UK.

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One remarkable evolution is the increasing age of the second-hand cars sold. In 2014, 36.2% was at least 11 years old. Last year, that figure had crept up to 37.6%. Even cars over 18 years still represented over 10% of all sales. Over the past decade, the average age of a used car sold in France increased by one year, to 8.9 years.

ITALIAN DRAMA And in the first half of 2016, just over 2.84 million used cars were traded in France, an increase of 2.5% over the same period last year, and an all-time record. Compare to the new car market in France, with 1.1 million vehicles sold over the same period.

Meanwhile, the Italian used-car market has shown some dramatic improvement, with forecast RVs for leased cars up 12% between August 2013 and March 2015, and 30% for LCVs. PRICE SLIDE The UK proves you can have too much of a good thing. In early 2016, the used-car market tipped into oversupply. The glut, expected to last well into 2017, will lead to a gradual price slide instead of a sudden price collapse, Glass's expects.

Trade indeed remained brisk, with just over 4,181,000 used cars traded in the UK in the first half of 2016. It's the first time ever that the half-year figure has exceeded 4 million units.

And finally, Brexit. While it didn't cause the devastation that some feared, experts say the UK's decision to quit the EU will destabilise the UK car market from the fourth quarter of 2016 onward. Will Britain remain a leader in Europe's automotive and remarketing industries, or will it fade away? Only time will tell.

FLEET EUROPE #86

REMARKETING

Connectivity can reduce your RV Frank Jacobs @FrankJacobs

The car of the future will be connected. But how will that affect its residual value? Both upward and downward, predicts Dean Bowkett. While much remains unclear, that crucial fact bears remembering.

We need to remind ourselves that connectivity is a double-edged sword, points out Dean Bowkett (Bowkett Auto Consulting): “Certainly, connectivity offers many data gathering advantages. Combining GPS with connectivity enables insurers to better understand the risks associated with the drivers they insure. Car-to-car communication also brings autonomous driving ever closer”.

Connected cars which are open platform will be the biggest winners in the used-car market.

BY 2020,

90 %

OF NEW CARS WILL HAVE BUILT-IN CONNECTIVITY

USED VALUES FOR CARS RESTRICTED TO A SINGLE OS COULD BE

€

700

62

LESS

BIG BROTHER “But the technology also has issues – Big Brother syndrome, data protection and security are all important. What if someone could hack into your car data and see how far you are from home? And on top of that: the question of pay to drive. Car clubs like car2go could use connectivity to refine their charging process. But how long before governments pick up on this, and we are charged based on where, when and how we are driving?

BETAMAX/VHS On the infotainment side, Microsoft's Windows Embedded Automotive system, underpinning Ford SYNC and other OEM systems, seems to be losing the battle, with Ford now developing its own Sync 3 system and Kia switching to Android. “The competition is now mainly between Apple's CarPlay and Google's Android Auto, leaving us with a new Betamax/VHS fight”, says Bowkett. A fight with consequences for

residual values, and even for future vehicle choice. “Which car you buy could become dictated by which smartphone you prefer”, Bowkett foresees.

It's still too early to measure the impact of specific connectivity systems on residual values, Bowkett says: “Most of the models slated to have connectivity – be it CarPlay or Android Auto – are yet to be launched”.

REDUCED OBSOLESCENCE One of the main advantages of the coming wave of connected cars is reduced obsolescence. The car's software and systems can simply be updated instead of having to be replaced: “This should make used connected cars more desirable, improving their residual values. That uplift will be a few hundred euros on a 2-3-year-old car”. That premium will likely disappear soon: “By 2025, buyers will expect a used car to have connectivity as standard. Some predict that by 2020, 90% of new cars will have built-in connectivity”.

But there are risks. Infotainment systems usually come in non-standard sizes, making retrofits expensive. That's a problem if you want your connected car to match your smartphone. “Backing one brand over all others could be a big mistake for any OEM”.

OPEN PLATFORM The conclusion is clear: “Connected cars which are open platform and able to work with Apple, Android and Microsoft will be the biggest winners in the used-car market. A typical three-year old €9,500 car will be worth circa €350/€475 more than non-connected vehicles.

FLEET EUROPE #86

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EXPERT

Safety in the “mobile office” Jonathan Manning and Steven Schoefs @StevenSchoefs

As company cars and light commercial vehicles become increasingly connected, journeys are developing into extended meetings, distracting drivers from the risks they face on the road.

Iain Levy, Director of Business Development at Mobileye Aftermarket Division.

60 %

MINIMUM REDUCTION IN ACCIDENTS VIA TELEMATICS

20x

THE POTENTIAL RETURN ON INVESTMENT OVER A 5-YEAR PERIOD FROM TELEMATICS

64

Together with Gil Sheratzki, Head of Global Operationas at Ituran, and Iain Levy, Director of Business Development at Mobileye Aftermarket Division, we look at the evolution of safety in an era in which vehicles have turned into smartphones on wheels.

vehicles and staff are immobilised; as well as the potential public relations disaster of one of their vehicles behind involved in a tragedy. On the other hand, fleets that take safety seriously can significantly lower their fuel, insurance and maintenance costs, adds Gil Sheratzki.

Fleets are failing to keep pace with technological changes that are transforming company cars and vans into mobile offices.

Improvements in connectivity mean vehicles are no longer merely transport between appointments, but active workplaces, according to our leading expert in fleet telematics and advanced safety technologies.

He states that fleets who installed telematics systems, and then analysed and acted upon the data, achieve a 60-85% reduction in accident claims.

60 TO 85% “It’s so much easier these days to work between meetings, but it becomes much more complicated to stay focused while driving with all this information coming into the car. The distractions are growing,” says Gil Sheratzki, head of global operations at Ituran.

Safer driving styles are also delivering significant fuel savings of 7-20%, he adds, “so in six to eight months customers are achieving a full return on their investment.

Over five years, the return is about 20 times the investment.”

The challenge for fleets is to assess this danger, identify drivers at higher risk, and devise policies to improve driving behaviour and keep employees safe on the road. Failure to do so leaves fleets facing the high material and human cost of accidents; the lost business productivity while

“We have no customers with whom we have worked for more than a year that have achieved less than a 60% improvement in their accident record,” says Gil Sheratzki.

TRACKING AND IDENTIFICATION But where should a fleet manager start?

By doing nothing, answers Gil Sheratzki, advising managers to spend at least two weeks tracking the genuine performance of their drivers, rather than the ‘best behaviour’ of drivers who know their actions are being monitored. By identifying all the incidents of aggressive acceler-

FLEET EUROPE #86

EXPERT

ation, exceeding the speed limit, excessive swerving and harsh braking (Ituran can measure 32 driving manoeuvres), fleet managers can build up an accurate profile of their drivers.

“The most important thing is to understand what is happening and set a benchmark,” says Sheratzki.

Then the hard work begins, adds Iain Levy, Director of Business Development at Mobileye Aftermarket Division, which provides fleets with retro-fit collision avoidance systems.

“If they are not pushing the process then it’s worth anything,” he says, adding that he has worked with companies that insist drivers turn off their phones, or even lock them in the boot, while they are behind the wheel.

“Having on-going information on how your drivers are driving and really ensuring that the vehicles you are giving them are as safe as they can possibly be, and giving drivers an environment to work in that is as safe as possible is really the most important practice.”

He warns that many large organisations treat their safety obligations as a box ticking exercise, and lack the commitment and ability to implement genuine change.

“They are using Band-Aid solutions to protect their fleet, such as managers going out with a driver once a month – but the driver will be back to his old self within a week,” says Iain Levy.

“There is still a lot of room to increase the safety of a fleet, and unfortunately, a lot of international fleets are taking baby steps towards what can be achieved.”

Advanced driver assist systems can keep drivers safer, thanks to autonomous emergency braking, lane departure warnings, collision warnings and drowsiness alerts, but it’s also imperative that any such investments should be reinforced by positive safety messages from every level of management, starting at the very top, mentions Levy.

FLEET EUROPE #86

Gil Sheratzki, Head of Global Operationas at Ituran.

WORTH THE WAIT With fully autonomous vehicles promising an accident-free future, some fleets are clearly tempted to defer investment in safety initiatives, but Iain Levy, director of business development at Mobileye Aftermarket Division, cites Christopher Hart, chairman of the US National Transportation Safety Board, which is calling for all vehicle manufacturers to install, at the very least, a forward collision warning system on every new vehicle.

“Much of the resistance we have seen to implementing the current generation

of collision avoidance systems is that even better technologies… will soon be available,” said Hart.

“Even if every vehicle on the road were suddenly equipped with vehicle-to-vehicle technology 10 years from now, which will not be the case, another 17,000 people will die, and 5 million will be injured, in rear-end collisions between now and then [in the US]. As Mark Twain observed, 'continuous improvement, is better than delayed perfection.'”

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ANALYSIS

Fuel your fleet forward Tim Harrup

Fuel counts for between 25 to 35% of a corporate fleet’s Total Cost of Ownership. Optimisation is key, for example via fuel cards’ use.

The Miles Consultancy (TMC) says that its consolidated reports make it easy to view country fuel spend, right down to transactional level, along with CO2 emissions and any non-compliant activity. And added benefits include the ability to reclaim VAT in line with local country legislation and analyse fleet activity. And there is also the ‘dissuasive’ element of the company’s offering: If drivers record exaggerated mileage, fuel consumption or fuel prices, TMC’s system immediately highlights these anomalies and inaccuracies. This deters drivers from doing it again in the future. And the company also warns against relying on line managers to spot fraudulent activity. They are too busy to check claims thoroughly.

And even if they do, ordinary claims processes contain insufficient information for them to uncover clever and persistent frauds. For that, you need a sophisticated fuel and mileage audit system.

Fuel cards have always been used to fill up with petrol or diesel.

With the rise of attention for alternative powertrains, luckily more and more providers are examining fuelling up other types of propulsion.

66

SECURITY AND VERSATILITY Along with cost advantages, UTA points to cashless en-route care throughout Europe with just one card all from a single source and to extensive reporting on a specific on-line platform. On-line authorisation, an on-line locking service and individual driver limits add to the security which starts with a check at the point of sale.

Mobility management specialist XXImo offers an additional service based on the prices of fuel. It has divided petrol stations into three pricing categories (ABC prin-

ciple) which can be switched on and off on according to card holder level. A is the highest price level, B a moderate price level and C is the lowest price level. This creates the opportunity to manage fuel according to their price levels.

The XXImo card is one of those looking forward to the new age of ‘mobility’. XXImocards can be used for public transport, parking, taxi, hotels, airline tickets and car and bike sharing. All services can be switched on and off (self-service portal) at cardholder level and can be limited in region, time and budget.

Along with these benefits and the wide rage of services, all of the companies which gave us their thoughts speak of the reduced administrative burden and the comprehensive nature of the service and reporting offered to clients.

ALTERNATIVE POWERTRAINS Fuel cards have always, of course, been used to fill up with petrol or diesel. The talk nowadays though is increasingly of other types of propulsion. Do fuel cards have a role to play here? TMC explains that its fuel cards can be used to purchase diesel, petrol, LPG, lubricants and AdBlue.

As they are Visa and Mastercard enabled, TMC says, the cards can be opened up to include other categories that accept these methods of payment – which can also include paying for electric usage, as well as other business. UTA says it is currently planning the development of a comprehensive network of fuel pumps for alternative fuels. And XXImo too points out that it offers EV charging integrated into its EMV payment.

FLEET EUROPE #86

ANALYSIS

GLOBAL COVERAGE How do the fuel card providers and international clients deal with the question of cross-border contracts?

Shell sees its global coverage as providing specific advantages. It points out that customers can consolidate their fuel card with one global provider and purchase any of its products, anytime using a single card – from a tank of fuel, to a cup of coffee and a newspaper. Customers also benefit from instant economies of scale – the more an international fleet uses the fuel card, the more costs reduce.

TMC provides both fuel cards and fuel management solutions across the globe and has its own preferred partnerships with global blue-chip banking providers, pointing out that thanks to its intellectual property, it can convert a business expenses card into a fuel card.

ALD Automotive says that sometimes there are cases of international bids, generally concentrated in Europe, but where there is global presence in other continents or specific countries, local tenders are needed.

Alphabet International too sees the necessity of local solutions. At the moment there is no fuel card on the market which is

accepted all over Europe and provides perfect commercial conditions combined with excellent level of service.

UNBUNDLED The subject of unbundling has been a hot topic for some time – is it better (cheaper) to buy services separately and negotiate the best price on each one individually? ALD Automotive says that fleet size is a key aspect. Customers with large fleets often prefer to make their own tender and unbundle fuel card suppliers to reduce the cost of service.

Alphabet International also sees geographical variations. It says that its fuel card management penetration rate is currently at 30% across all Alphabet entities and differs strongly market by market.

LeasePlan says that around half of its customers include fuel in the package, and that in its experience the trend is not towards unbundling fuel services from full service leasing.

There is clearly a wide choice of fuel card services available to international fleet managers. This starts with selecting between the leasing company, a fuel supplier, a card specialist… And with most players agreeing that truly global coverage is difficult, the geographical question also has to be addressed.

MOVING TOWARDS ALTERNATIVE FUELS Some thoughts from Fleetcor help to underline the fact that fuel cards will have to move with the times: • EV’s can be as easy as a plug, which works for fleets that return home every day and the need for remote charging infrastructure will fade as range limitations are overcome

FLEET EUROPE #86

• LPG –Approximately 40k refuelling sites worldwide • CNG/LNG –Approximately 25k refuelling sites worldwide

TOP TIPS FOR AVOIDING FUEL CARD FRAUD • Correctly set up of the vehicles, drivers and parameters for controls and restrictions. (ALD Automotive) • Use the reports to control the drivers’ behaviour and show that the usage of the cards is being monitored.

(ALD Automotive) • The Fuel card should be linked to the car, not to the driver and refuelling should be linked to the maximum capacity of the fuel tank. (Alphabet International) • Outsource fuel card management as this will generate process efficiency and provide insight into the real fuel spend. (LeasePlan) • Establish clear driver limits for fill-up frequency and volume. (Shell) • Make sure that reporting can identify: multiple fillups on the same day for the same card, the volume of fuel exceeding the size of tank for that particular vehicle or the wrong type of fuel, for example diesel in a petrol car. (TMC) • Ask petrol station staff at the point of sale to always keep the card where you can see it. (UTA)

67

ANALYSIS

Fuel cards, a leasing company business Tim Harrup

During the summer of this year, LeasePlan Netherlands sold its fuel card business, Travelcard, to Fleetcor Technologies.

In light of this move by a major player in the leasing business, we asked two other major leasing companies how fuel cards figured in their own business models.

Travelcard, it should be noted at the outset, is a leading operator in the Dutch fuel card market with a fraction under 300,000 fuel cards in use. It is the only independent fuel card provider in the Netherlands, and its universal fuel card is accepted at all fuel stations across the country and at over 1,500 stations in Belgium and Luxembourg.

invoice will include both lease rates and fuel costs. Along with this, fuel consumption analyses will be included in management reporting.

ALD International explains that fuel management remains a core activity for the company, for a number of reasons.

Firstly, fuel represents an average of 30% of the TCO, and ALD believes it is important to deliver a tool for customers to control fuel expenses.

And finally, Alphabet says, it can have an influence on improved driver behaviour by correlating fuel consumption information with other contract data (damage statistics, fines), making it easier to define specific user groups that could benefit from driver training or other action.

Another important aspect for ALD International is the relationship with drivers. With the fuel cards it has the opportunity to take advantage of the high transaction frequency provided by fuelling to create a real relationship with them.

NOT A UNIVERSAL MOVE Finally, a word from LeasePlan, whose action in the Benelux led to this question being asked. LeasePlan is not abandoning fuel cards everywhere, and points out that fuel services are part of the core activities of the company and are managed accordingly.

LeasePlan explains that it has a dedicated growth strategy on fuel services worldwide and is focusing on monitoring fuel service penetration, concentrating the business towards preferred suppliers.

The third reason for considering fuel management as a core activity looks towards the future. The company believes that fuel cards will allow it to create the basis for a payment means supporting all multi-mobility services.

For the international leasing companies Fuel Management will stay part of their core business.

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COMMON SERVICE Alphabet International too considers fuel cards as a core activity. Fuel management, it says, is one of the very common services that customers include in lease contracts.

And for Alphabet, the benefits of including fuel management in the lease are also to be found in a number of areas, especially in the reporting domain. Increased efficiency in invoicing, as the monthly

Alphabet also considers that it is within its scope of responsibility to be able to track the vehicle mileage more accurately based on the driver entries.

It is quite clear that the leasing companies (those who gave us the information at least) have good reasons for including fuel services/cards in their offering. As in many aspects of fleet management, however, and as is often stated by fleet managers ‘one size does not fit all’, and local decisions always have their part to play.

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Fleet Europe Awards: the 2016 nominees Tim Harrup

The most eagerly awaited ceremony to recognise and reward outstanding international fleet managers takes place this year in Barcelona on November 16th. Here are the nominees for the Fleet Europe Awards 2016, some of whom will be the winners!

FLEET EUROPE AWARDS FOR FLEET MANAGERS The three categories recognize successful fleet policies in different areas of fleet policy, and reward the international fleet managers who have implemented them.

First comes the coveted title of International Fleet Manager of the Year. This Award looks at the entire scope of the fleet management within a company, and goes to the person or team having achieved the best results for their companies in terms of optimised TCO. There are two categories: Large Fleets (more than 4,000 vehicles in at least three countries) and Medium Fleets (up to 4,000 vehicles in at least three countries).

Third, the International Fleet Safety Award recognises a project or programme that improves the safety of the drivers and limits incidents and accidents related to the vehicle fleet, whilst taking into account cost optimisation.

WOJCIECH REGUCKI ROLE EMEA Fleet Manager, AbbVie SECTOR Biopharmaceutical

Secondly, the International Smart Mobility Management Award goes to a company which has successfully implemented a green project or initiative in efficient alternative mobility for its fleet.

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RESPONSIBLE FOR 2,870 vehicles “I am most proud of the optimisation of TCO costs for the international fleet policy with a reduced number of OEMs for a large user-chooser fleet”.

FRANZ FEHLNER

ANDY LEEDEN

ROLE Head of International Fleet, Allianz Managed Operations & Services

ROLE Global Category Manager Fleet, AstraZeneca plc.

SECTOR Finance

SECTOR Pharmaceuticals

RESPONSIBLE FOR 20,000 vehicles

RESPONSIBLE FOR 17,950 vehicles

“I have rolled out and implemented a global fleet strategy with the focus on total cost of mobility which includes train job-tickets, bicycles, car-sharing and flight tickets.”

“Working collaboratively with key stakeholders (HR, Finance, SHE) and strategic suppliers to deliver effective fleet solutions”.

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XAVIER BAZAN

CAREL AUCAMP

ROLE Fleet Manager Benelux, BristolMyers Squibb

ROLE Global Category Manager, British American Tobacco

SECTOR Health-Pharmaceutical

SECTOR FMCG

RESPONSIBLE FOR 950 vehicles

RESPONSIBLE FOR 22,000 vehicles

“The fleet success I am the most proud of is the achievement of projects that meet with our employees’ and company’s needs and enhance the quality of life at work.”

“The most important element is the reduction in accidents year on year and moving down the safety pyramid to managing driver behaviour with the utilisation of dashboard reporting”.

CARLO BERTOLINI

KATJA VAN WIEREN

ROLE Security & Services Area Head, Chiesi Faramceutica S.p.a.

ROLE Category Manager EMEA, The Linde Group

SECTOR Pharmaceuticals

SECTOR Gas and Engineering

RESPONSIBLE FOR 1,600 vehicles

RESPONSIBLE FOR 5,100 vehicles

“We are coming from a two year project that involved 10 European Countries and we believe we have implemented a good set of rules and actions that can bring us satisfaction in term of economics, retention, harmonization, and safety”.

“Over the last 2 years we have achieved several successes in the development of our car leasing strategy at Global and EMEA levels”.

DAAN BIELEVELD

JENS WERKHEISER

ROLE Global Mobility Manager, Royal DSM NV

ROLE Global Category Manager, SABMiller

SECTOR Corporate Human Resources

SECTOR FMCG/Beverages

RESPONSIBLE FOR 1,750 vehicles

RESPONSIBLE FOR 10,000 vehicles

“Within the fleet area, I am most proud of my private leasing concept and e-car sharing concept for employees who are not eligible for company cars”.

“I believe our all new global car policy is a fundamentally new and valuable approach which derives value out of many aspects of our fleet and has a huge further potential for the years to come.”

AXEL ERNST

LASZLO CSASZAR

ROLE Global Head of Fleet, Syngenta

ROLE Regional Fleet Manager, Tesco Stores Ltd.

SECTOR Agro Chemical RESPONSIBLE FOR 8,600 vehicles

SECTOR Retail

“The major fleet success is the design and implementation of the CREFM program (Corporate Real Estate, FLEET and Facility Management) in 2016.”

“We worked out a transparent reporting methodology around our regional fleet, implementing TCO as the main KPI.”

RESPONSIBLE FOR 1,430 vehicles

THE 2016 JURY MEMBERS Stéphane Renie, Sales & Marketing Director, ALD Automotive / Montse Empez Vidal, Chief Purchasing Officer, Applus / Romain Trébuil, International Purchasing Manager, L'Oréal / Selçuk Gündoğdu, Group Commodity Buyer, Vaillant Group / Christoph von Meyer, Head of International Corporate Sales, BMW / Wolfgang Stahl, European Director Fleet & Remarketing, Opel/Vauxhall Europe / Adrian Porter, Director Fleet Sales & Remarketing, Hyundai Motor Europe / Olivier Marion, General Manager Corporate Sales, Infiniti Europe / Ralf Kostrewa, Head of International Fleet Sales, Volkswagen Group / Stefan Herbert, Senior Manager Sales, Daimler / Michiel Alferink, Vice President International Sales, Athlon International / Knut Krösche, Director International Fleet, Aftersales & Used Car, Volkswagen Financial Services / Hervé Girardot, Head of Arval Consulting and CVO, Arval / Jose Luis Criado, Managing Director, LeasePlan International / Carsten Kwirandt, Sales and Marketing Director, Aphabet International / Vinzenz Pflanz, CSO, Sixt Leasing / Caroline Thonnon, CEO & Business Development, Fleet Europe / Steven Schoefs, Chief Editor, Fleet Europe.

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INTERNATIONAL FLEET INDUSTRY AWARD Alongside the Awards for International Fleet Managers, we also recognise best practice in the car fleet supplier industry. The International Fleet Industry Award highlights innovative projects developed by the industry that enable international fleet managers to achieve their goals or improve their fleet management at international level.

HERE ARE THE CANDIDATES FOR THE FLEET INDUSTRY AWARD 2016:

ALERTDRIVING

SAFEDRIVEPOD

With Hazard Perception Evaluation

With SafeDrivePod

“Hazard Perception Evaluation automatically assigns specific, targeted training modules to each individual driver based on their unique areas of deficiency.”

“25% of all total costs of accidents are related to the driver being distracted by his or her smart phone. SafeDrivePod offers a complete solution that ensures the touch screen of the smartphone is blocked during driving.”

ALPHABET INTERNATIONAL With AlphaGuide app

TOMTOM TELEMATICS With TomTom Telematics Service Platform

“Once installed on a user’s smartphone, the app’s numerous practical features provide all-round support for personal and professional mobility.”

EDRIVING FLEET With VRM (Virtual Risk Management)

“TomTom has further developed its TomTom Telematics Service Platform from a pure commercial fleet management functionality to a multipurpose telematics platform serving different stakeholders.”

UBEEQO With Corporate Car-Sharing Service

“We support organisations to build road safety into their DNA, bringing policy and multiple risk data streams to life.”

“Ubeeqo was the first company in Europe to focus on car-sharing solutions in the B2B market.”

XXIMO With ICT Platform “The vision to support multimodal travelling and at the same time anticipate the full digitalization of payments, invoicing and cost allocation.”

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THE 2016 JURY MEMBERS Maaike van Hemmen, Fleet Manager Europe, G4S Europe Daan Bieleveld, Global Mobility Manager, DSM Gregory Bech, EMEA Fleet Manager, Johnson & Johnson Rob Custers, Procurement - Fleet & Mobility, Siemens Hans den Hollander, Fleet Manager EMEAR, Cisco Fer Derwort, European Fleet Manager, Infor Scott Millar, Purchasing Associate Europe Car Fleet, P&G Pim De Weerd, Global Commodity Manager Leased Cars, Philips Janos Kis, Senior Procurement Manager Fleet, Coca-Cola Enterprises Ben Varey, Global Travel and Fleet Manager, SGS Caroline Thonnon, CEO & Business Development, Fleet Europe Steven Schoefs, Chief Editor, Fleet Europe

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SMART MOBILITY START-UP AWARD For the first time, Nexus – and category sponsor Mobileye – are proud to recognise a new breed of company which is playing an ever more important role in businesses of every sort: Start-ups. This is why in Barcelona we will also be honouring a promising European Start-Up company developing innovative products or services in the fleet & mobility industry with a Smart Mobility Start-Up Award!

HERE ARE THE INNOVATIVE COMPANIES WHICH HAVE ENTERED THE COMPETITION:

AMPIDO

FLEETMASTER

SPIRI

With Ampido

With FleetMaster

With Spiri

“The ampido.com platform is the first German marketplace where owners of private parking spaces, garages entrances or driveways can rent their parking space when they aren’t using them.”

“FleetMaster supports the core business processes in fleet management to improve the efficiency of our customers and reduce their costs.”

“Spiri combines the best from carpooling and ridesharing into a service that is affordable, convenient, and helps clean up our cities.”

FREEEDRIVE

TAMYCA

With Freeedrive

With Fleetbutler Platform

“Freeedrive is the fleet safety solution aiming to prevent the use of smartphones behind the wheel.”

“By combining long and short term rentals in one platform, baseline revenue is guaranteed, cost for corporate clients is decreased and private mobility is delivered.”

ASSISTO With Assisto “Assisto digitalizes the claim and repair processes, thereby enabling leasing companies to help their clients when they most need it.”

RENTA SOLUTIONS With The FMS Platform

ELECTRICFEEL With Add-on Solutions & Full Integration Solutions “ElectricFeel uses predictive technology to solve the supply-demand imbalance in shared mobility, ranging from bike-sharing to electric scooter and car-sharing systems.”

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VIMCAR The FMS platform avoids the transfer of 4.5 million documents between the Government and the companies concerned, and replaces this flow by a 100% digital flow within our application.”

With Vimcar

SMARTWAY EUROPE LTD.

WEPROOV

With Qwekee

With WeProov

By sharing cars when they are not in use, you can use your car all time you need to, but benefit from extra income by sharing at other times.”

“With WeProov, companies can keep indisputable and visual proof of the condition of the fleet.”

“Vimcar Fleet makes fleet management and the company car taxation simpler than ever before.”

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16 November I Catalunya Congress Center I BARCELONA

REGISTER NOW Your not-to-be-missed days for learning and networking. Mark the dates on your calendar! > LEARN - The Remarketing Forum and the IFMI session on 15 November and the Fleet Europe Forum on 16 November, will provide all delegates with high level and engaging information, market insights and analysis that lead to value creation in corporate fleet management. > NETWORK - The ever popular Fleet Europe Village on 16 November will offer delegates a relaxed and informal setting where they can meet and interact with suppliers and fellow fleet professionals. > BE INSPIRED - The Fleet Europe Awards on 16 November recognize the finest corporate fleet management practices with an international scope.

Participate in the Fleet Europe Awards to benchmark your fleet management and get recognition from international fleet experts!

Become a winner at the Fleet Europe Awards 2016: send an email to Steven Schoefs - sschoefs@nexuscommunication.be For more information, please visit forum.fleeteurope.com

COLOPHON EDITORS Steven Schoefs – Chief Editor sschoefs@nexuscommunication.be Antigoni Vokou – Journalist avokou@nexuscommunication.be Céline Gilson – Project Coordinator cgilson@nexuscommunication.be CONTRIBUTORS Tim Harrup, Frank Jacobs, Jonathan Manning, Dieter Quartier Cover: Hungry Minds – Benjamin Brolet Pictures: ©Shutterstock - ©ThinkStock - Benjamin Brolet

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

Layout: Hungry Minds info@hungryminds.com ADVERTISEMENTS SEAT (2), ŠKODA AUTO A.S. (4), Daimler AG (8-9), ALD Automotive (19), BMW Group (23), Arval (2627), Toyota Motor Europe (29), Jaguar Land Rover (30-31), Citroën (33), ARI (35), Adam Opel AG (37), Volvo (39), KIA Motor Europe (49), Sixt Leasing AG (51), Volkswagen Financial Services (52), Nissan Europe SAS (53), Bridgestone Europe NV/SA (55), Porsche (59), Renault (61), Automobiles Peugeot (63), Enterprise Holdings (69), FCA (75), Hyundai Motor Europe (76).

FLEET EUROPE

Fleet Europe Magazine

@Fleet_Europe

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www.fleeteurope.com Fleet Europe is published by Nexus Communication SA Parc Artisanal 11-13, B-4671 Barchon (Belgium) 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

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