Fleet Europe 57 by Nexus Communication

APRIL 2012 - # 57

management

NEXUS COMMUNICATION - FLEET EUROPE #57 - periodic magazine - April 2012 - Deposit Office LiĂ¨ge X

Ivor Johnson Tips & Tricks for an efficient fleet management Learn from the laureates of the Fleet Europe Awards 2011

DOSSIER

Car Manufacturers Their fleet strategy, their products & services

MANAGEMENT

Face to Face

Maaike van Hemmen (KCI Europe) Veerle Vallons (Norgine)

SCOPE

Economy

The impact on fleet business

IFMI Expert Session - June 6th 2012 - Brussels MANAGING YOUR FLEET IN CRISIS MODE

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EDITORIAL

Seize 2012, seize the opportunities

2012 will be an exciting year for the automotive & fleet business in Europe. Even though most automotive experts are convinced that the European market for new vehicles has reached a saturation point, the car manufacturers themselves remain confident in Europe: they consider it not only a crucial fleet market, but also the ideal test market for new models and technologies. On the other hand, the economic crisis in the Eurozone and the US has infused multinational corporations with the twin attitudes of prudence and rationalisation. This may be a logical consequence of living in uncertain times. But it should not mean that we are afraid of change. These difficult times could provide the ideal occasion to seize new opportunities. Why not use this moment in the economic cycle to update car policies, ‘rightsize’ the fleet, and test new fleet initiatives and technologies? Today might be the ideal time to really ‘partner’ with your suppliers and to discuss with them a road map towards better times. Above all, sharing best practices is crucial. And that is precisely the goal of the Fleet Europe platform: sharing, educating, informing and linking all parties involved. So seize the opportunities of 2012, with your new Fleet Europe. Steven Schoefs, Chief Editor sschoefs@nexuscommunication.be Twitter : @StevenSchoefs

A Reader’s Manual Fleet Europe’s first 15 years have rushed by! It seems like yesterday since we started up a pioneering B2B magazine for international fleet decision makers. But look at how it’s grown: Fleet Europe now is a mature media platform integrating print and digital editions, a website, regular newsletters, the Fleet Europe Taxation Guide, the Fleet Europe Forum and last but not least, the Fleet Europe Awards. And there’s even more ways to keep up with us, via our presence on social media (Twitter, LinkedIn, Facebook) and very social media (the IFMI and other events connecting people). Fleet Europe now reaches international fleet decision makers in over 19 countries. This unique international reach impelled us to rethink our editorial approach for the Fleet Europe magazine, in order to better correspond to our readers’ interests. As we reshape the identity of our magazine, here’s an overview of our new lay-out and structure.

DOSSIER In each issue, our editorial team analyses the latest trends, in partnership with experts on the subject. We provide an annual overview of what you, as international fleet decision maker, need to know. MANAGEMENT

The fleet manager’s corner. With case studies, management articles, examples of best practices.

BUSINESS Background articles from the industry’s side: car manufacturers, leasing companies, third parties. With interviews and highlights of new products and services. SCOPE A broader insight on the

dynamics of the international fleet business: taxation, legislation, trends, environment, economics. We hope you will like our brand-new approach to Fleet Europe. Enjoy your reading, and thank you for your kind patronage!

Caroline Thonnon Partner Content & Business Development cthonnon@nexuscommunication.be Twitter: @CarolineThonnon

FLEET EUROPE # 57

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CONTENT

DOSSIER I Car Manufacturersâ&#x20AC;&#x2122; Fleet Strategy Organisation, products, services and innovations for 2012

SCOPE

Discover the broader world of fleet business

BUSINESS

Interview PSA Peugeot CitroĂŤn

I DOSSIER I

management I Cross interview With Veerle Vallons (Norgine) and Maaike van Hemmen (KCI Europe)

Intro .................................................................................................................... P.9 Fleet Community .................................................................................. P.9 Automotive Europe : Flashback ......................................... P.10 Automotive Europe : Future vision .................................. P.13 Strategy & Organisation . ........................................................... P.14 Fleet Services ....................................................................................... P.18 Next big thing in fleet business .......................................... P.20 2012 Fleet Models at the Geneva Motor Show..... P.24 Safety Innovation ............................................................................... P.28 Telematics Innovation.................................................................... P.32

I MANAGEMENT I

Top 10 tips.................................................................................................. P.34 Case study IBM..................................................................................... P.38 Fleet Europe Award 2012........................................................... P.40 Procurement strategy .................................................................. P.46

I BUSINESS I

News................................................................................................................. P48 Interview - Hyundai Motor Europe.................................... P.50 Sortimo International launches Globelyst C ......... P.52 Interview - Arval ................................................................................. P.54 Interview - Toyota Motor Europe ....................................... P.56

I SCOPE I

Impact of the European crisis .............................................. P.58

COLOPHON

Caroline Thonnon - Content & Business Development (cthonnon@nexuscommunication.be) Steven Schoefs - Chief Editor (sschoefs@nexuscommunication.be) David Baudeweyns - Sales & Development (dbaudeweyns@nexuscommunication.be) Romina De Gregorio - Internal Sales (rdegregorio@nexuscommunication.be) Kathleen Hubert - Operations & Communication (khubert@nexuscommunication.be) Filip Van Mullem - Marketing & Development (fvanmullem@nexuscommunication.be) Pierre-Yves Simon - IT & Web Manager (pysimon@nexuscommunication.be)

Contributors: Tim Harrup, Frank Jacobs, Dirk Steyvers, Yves de Partz

Circulation: 15,000 copies (The cleansing and qualification process has been realized by Dun & Bradstreet Belgium, 2012)

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

Special thanks to: Professor Peter Cooke, Bernard Gracia, Bart Vanham Layout: Un pas plus loin - info@unpasplusloin.com

EDITOR

Thierry Degives, Managing Partner at Nexus Communication SA, Parc Artisanal 11-13, 4671 Barchon (Belgium) T. : +32 4 387 87 94 - Fax : +32 4 387 90 63 - www.nexuscommunication.be FLEET EUROPE www.fleeteurope.com - www.fleeteurope.com/shop

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A Daimler Brand

Just 114 g /km CO2: even in silver metallic, this is a green company car. With emissions of just 114 g /km CO2, the B 180 CDI BlueEFFICIENCY sets new benchmarks when it comes to efficiency – thanks to state-of-the-art technological features such as the ECO start /stop function fitted as standard and new 7G-DCT dual-clutch transmission. The new B-Class combines low fuel consumption and CO2 values with enhanced driving pleasure, high safety standards and a roomy interior space concept. www.mercedes-benz.com/fleet Fuel consumption urban /extra-urban /combined: 5.6–5.4 /4.1–3.8 /4.6–4.4 l /100 km; combined CO2 emissions: 121–114 g /km.* *Figures do not relate to the specific emissions or fuel consumption of any individual vehicle, do not form part of any offer and are intended solely to aid comparison between different types of vehicle.

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FLEET EUROPE # 57

dossier I Car Manufacturers’ strategy

The best choice is out there DOSSIER

Car manufacturers’ strategy from p. 9 to p. 33

In this yearly dossier we have a look at the fleet strategy of the car manufacturers, the differences in organization to deal with fleet demands on an international level, the vision of their fleet executives on the future and the new models on the market with developments in safety and telematics. Throughout this dossier it will become clear that the car manufacturers have set up an organization that is well adapted to the current fleet needs and that they are continuously looking to be prepared to the future requirements of their

fleet customers, in terms of services as well as in terms of products and innovation. Good news. Now it is up to you to choose the best car manufacturer(s) for your drivers and your company. When doing that, don’t just look at the trendiness of the range or the purchase price of the model, but keep in mind the total cost of ownership and anticipate to key trends like sustainability, safety and driver satisfaction. Because only when you with a wider scope and a deeper insight, you will make the best choice. ■ Steven Schoefs

Community It is all about sharing experiences and best practices. The more you acquire experiences from your peers, the more you will build expertise to manage your fleet. It’s all about being part of and interacting with this community of expert fleet managers and decision makers.

Newsletter

Issuu.com

Discuss

Discover the digital edition of Fleet Europe Magazine. Have a look at the more recent edition, or look at our archives.

Managing your fleet in crisis mode – share best practices, tips and tricks with your peers.

Facebook

Twitter

Discover the latest magazine, picture from our events, event announcements… If you like our pages, click on ‘LIKE’ and share it with your contacts! http://www.facebook.com/ FleetEurope

Follow the latest tweets of @FleetEurope2012 and connect to Chief Editor @StevenSchoefs and Partner Content & Business Development @CarolineThonnon

Join the Fleet Europe LinkedIn group and connect with international fleet professionals, fleet decision makers, suppliers and experts. Already more than 1,300 members. http://www.linkedin.com/ groups?about=&gid=157239

How will the size of your car fleet evolve in 2012?

19% 44% 15% 4% 19%

Equilibrium – no major change Decrease in total number of vehicles Decrease in new vehicle orders Increase in total number of vehicles Increase in new vehicles orders

FLEET EUROPE # 57

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dossier I Car Manufacturers’ Fleet Strategy

A two-tier European market Without the supporting impact of the macro-economic situation in the early 2000s, the European automotive industry is now stagnating and seeking a new lease of life on the emerging markets. All with the exception of Germany.

wo figures speak for themselves: from over 15 million units in late 1999, car sales in Europe fell last year to 13.1 million, making it the fourth successive annual decrease and reflecting a structural phenomenon. When an economic crisis strikes, the first thing individuals and companies do is to delay the replacement of their car. It is however thanks to companies that the car industry can keep up in countries where car purchase is associated to tax benefits, like in Belgium where the great result of 2011 – 572,211 car registrations, + 4.5% - is likely to remain forever unmatched.

As regards to brands, we find the same split with the insolent success of the German manufacturers (+ 7.8% for Volkswagen, the European number 1, + 7% for BMW) in comparison with Fiat (- 12.1%) or the French groups (PSA Peugeot Citroën and Renault) that suffered from the end of the bonus schemes. Other manufacturers control the decline (General Motors, Ford) or do a lot better than the market average: Nissan (+ 13.7%), Hyundai (+ 11.5%) or Volvo (+ 10%). Premium and “low cost” Besides the economic situation, these figures outline some heavy

except for Hyundai and KIA that have developed original aesthetics, thus adding seduction to their reliability confirmed by long-term guarantees. Even Toyota Lexus, the former number 1, affected by the deterioration of its public image in the United States, but most of all impacted by the Japanese tsunami, is struggling despite the success of the Prius. To survive, there is really no alternative: to pull the line upwards (Citroën is trying to do this with the DS for example) or to develop products that are highly affordable on an hourglass-shaped market (strangled in the middle, broad at the top and bottom). The success of the Renault-Dacia confirms it and it is believed that PSA Peugeot Citroën is considering reviving a cheap Talbot. Failing that, the only other option is to cut prices.

Car sales in Europe fell last year to 13.1 million, making it the fourth successive annual decrease.

In 2011 specifically, the European automotive market has operated at a slow pace (- 1.7%), erasing the 2010 recovery. If France (- 2.1%) or Great Britain (- 4.4%) have managed to limit the damage, the decline was of 10.9% in Italy, and even 17.7% in Spain, which returned to its 1993 level. An uncontrollable phenomenon in the wake of the sovereign decline or consumption slowdown? Yes and no. It is true that Germany has increased its sales by 8.8% after a very bad year in 2010 due to the suppression of the scrappage bonus scheme.

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FLEET EUROPE # 57

trends. Thus the car industry remains the leading sector of the German economy with products that have a strong image in terms of quality and reliability. Volkswagen, backed up by the Golf and the Polo, defends its popular car status. Audi, BMW, Mercedes and Porsche are there to add status, technology and elegance with successful exports. The latter also derive maximum benefit from another trend on the car market that is torn between “premium” and “low cost”. Between these two, there is really no future any longer

This last choice is difficult since profitability has already been seriously damaged. After two years of stagnation, the financial crisis of the second half of 2008 has not only shaken the US “Big Three” (General Motors, Ford, Chrysler). In annual terms, the European sales have dropped by 25.8% in November. The following year, the governments have had no other choice but to offer bonus schemes, thus saving the automotive industry from another 20% drop. These bonus schemes are associated with C02 emissions and have most of all benefited small cars. The German brands, including BMW and Mercedes, have suffered more.

Exports, synergies and buy-back Besides this two-tier market that reflects the evolution of the economy and society, two phenomena have marked the last decade for European manufacturers. On the one hand, their implantation in emerging countries that have sometimes become their main global market (that is the case of Audi in China). On the other hand, the development of synergies and buy-back actions with various degrees of success. The most impressive example of integration is that of the Volkswagen Group (VW, Audi, Seat, Skoda…). But the Renault-Nissan alliance, which has recently acquired cross-shareholding with Daimler AG (3.1%), has last year enabled the Franco-Japanese duo to kick Toyota off the global podium to get on it behind General Motors and Volkswagen. Then there is Renault, who struggles in France with its aging product range and who saw its sales rise by 40% in Russia where it holds 25% stake in AvtoVAZ (Lada).

cially to the European manufacturers and technologically to the Chinese or Indian partners, they should also be beneficial to the client who should find products that are both more innovative and of better quality thanks to new investments.

Other recent successes are due to buy-back actions based on good understanding (this was not the case for Daimler AG and Chrysler at another time): The Chinese company, Geely, bought Volvo, and Tata, the Indian car manufacturer purchased Land Rover and Jaguar, former Ford’s flagships. While these partnerships benefit finan-

Total number of new car registrations in EU

There were also failures (Saab, whose loss was mourned by its fans) and the control of Chrysler by Fiat does raise questions about the future image of the Fiat group, since its subsidiary, Lancia, manufactures old Chrysler vehicles rebranded under Italian colours. CEO Sergio Marchionne has first of all acted as a financier. But the future of a manufacturer also depends on the creative personnel, designers and passion inspired by the products themselves. Nobody will contradict us either in Stuttgart, Munich, Ingolstadt or Maranello. ■ Yves de Partz

2001: 14.817,719 2017: 18.723.065 2011: 14.682.229

Wetsern Europe (EU15 + EFTA Countries) : market share by car manufacturer (*) 14 %

2011 European Sales Figures 666.334

624.569

910.283

830.539

1.209.236

358.094

783.290

1.030.568

1.038.372

1.263.013

533.846

1.803.643

245.887

12%

2001

2007 6%

2011 4%

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/V Op

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MARKET SHARE

10%

(*) Source: ACEA (European Automobile Manufacturers’ Association)

FLEET EUROPE # 57

P.11

The new

AmperA

pioneers are always first. Driving electricity further. With the Car of the Year 2012.

www.opel.com Fuel consumption (combined and weighted) 1.2 l/100 km; CO2 emissions (combined and weighted) 27 g/km (according to R (EC) No. 715/2007).

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FLEET EUROPE # 57

dossier I Car Manufacturers’ Fleet Strategy

Slow recovery as from 2015 The real recovery of the European market should not occur before 2015 but the future of the automotive industry will also be linked to the changes in oil prices and to the manufacturers’ ability to react faster to customers’ needs.

his is a sign: the European Central Bank should be generous this year with the automotive industry and will grant loans at a 1% rate. French PSA Peugeot Citroën, whose profit has been halved in 2011, will not fail to use them. In better financial health thanks to its alliance with the Japanese Nissan, its rival, Renault, remains cautious however in its predictions and expects an increased war on price to clear out inventories. For the manufacturers of small and medium cars, 2012 looks difficult in Europe, after the relative euphoria triggered by the government bonus schemes to promote the most fuel efficient cars. Overall, the decline of the European market is estimated this year, according to the Moody’s agency to 6.2 %, that is a total volume reduced to 13.4 million units. Before a progressive re-start to be confirmed in 2013. Once again, the West European automotive industry is at crossroads, caught between the economic situation, oil prices and rising taxes. If all the manufacturers agree to say that there remains a great development potential for the petrol or diesel engines, a sudden surge in oil prices could accelerate the transition towards other forms of energy. But how can one plan?

The automotive industry is at crossroads, caught between the economic situation, the rising oil prices and increasing taxes. Flexibility becomes key As always, the consumer – individual or company- will react quickly to these parameters and focus on its wallet, and manufacturers will need to show increased levels of flexibility. The Volkswagen Group will thus inaugurate with the Audi A3 and Volkswagen Golf, the first of three platforms, which in the long-term will be used for all models, Porsche included. A Lego type system that includes the engine blocks, the brake systems, all anchoring points etc and should be used to adjust quickly each production line in order to manufacture this or that model, on request. What are the perspectives in the slightly longer term? Europe will continue to focus on “downsizing” (reduction of engine capacity), sobriety and more comfortable means of transport, without compromising on design, something that Toyota

for example wants to revive since it has lost market shares to its Korean competitors. Elsewhere (China, Saudi Arabia, India, Russia…), the future is bright for “premium” cars provided governments do not take any measures against these “new rich people” or against pollution. Like the slowdown in registrations imposed in several large Chinese cities. If, as one hopes, the European economy finds itself in better health in 2015, the future of the manufacturers on the old continent will not only imply an increased implantation in Asia and in Latin America - Europe is no more than a replacement market now - but also supposes a great adaptability to new and variable situations around the world. ■ Yves de Partz

FLEET EUROPE # 57

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dossier I Car Manufacturers’ Fleet Strategy

Looking forward with confidence Fiat Group 2012 in a nutshell

Toyota Lexus

Chan Uk Jun, Fleet and Remarketing Manager, KIA Motors Europe

Christian Blank, Director European Fleet Operations, Mazda Motor Europe

2012 will see the launch of new Fiat Panda in the A segment , as well as the application of the successful Twinair engine to Fiat Punto for a top ‘green mix’. The new L0 will replace Fiat Multipla and Fiat Idea.

Overall, 2012 is a continuation of Toyota’s product rejuvenation programme, bringing emotion through the GT 86 sports car, and the continued expansion of full hybrid technology to new segments.

Fiat

Toyota’s strategy is based on 5 pillars. Competitive cost of ownership, leading sustainability solutions, pro-active relationships, clear service levels and attractive products. All areas are continuously under review and upgrade in reply to fleet customer needs and the changing market environment.

KIA is in the middle of a landmark product offensive (four all-new models plus one refresh), so 2012 will be an extremely important year. While the global economy will remain uncertain over the next 12 months, KIA expects to continue to ‘buck the trend’ in recording positive sales growth.

Mazda is anticipating 2012 to be a successful turnaround year with CX-5 and Mazda 6 acting as a catalyst. In April, Mazda will launch the all new C-SUV CX-5, which is based on its new SKYACTIV technology emitting 119 g/km and best in class fuel efficiency.

will

leverage

its

ecologi-

vantage for meeting the demand for sustainable mobility. It will increase penetration into small and medium businesses thanks to the Freemont model for which 15% of sales should come from these. Fiat has headquarters in Turin for product development which also co-ordinates and supports marketing and sales activities carried on by local offices which have marketing and sales staff in order to meet the country specific demand.

On the model Fiat will take advantage of the Fiat Punto TwinAir engine and availabilfront ity of ‘eco: Drive Fleet’ for Smart-

A piece of advice for fleet owners

Toyota Motor Europe gives full authority to the national fleet entities so they can take full ownership to create the best customer experience and respond to the local customer needs in the best way possible. In addition Toyota Motor Europe supports international focused customers with a dedicated international key accounts team.

KIA will appoint two new European Key Account Managers in 2012 to get better access to large fleets. In parallel, the emphasis in 2012 will be on the infrastructure in small and medium fleets. The brand is launching six new national partnerships with international leasing companies to offer operational leasing to fleet customers at dealer level in the first half of 2012. KIA is going to sign certain agreements with leasing companies in 2012 again. Corporate agreements will be offered proactively when the two new Key Account Managers are on board.

phone. The company believes Jeep Grand Cherokee, Lancia Voyager and Lancia Thema will increase penetration into small fleet businesses.

In 2012 Toyota will further expand the hybrid offer with the sevenseater Toyota Prius+, the Toyota Prius Plug-in Hybrid, the Toyota Yaris Hybrid and the Lexus GS.

The all-new KIA cee’d will be key to the fleet drive, with fleet buyers expected to account for 40 to 50 per cent of cee’d sales in Europe.

Sustainable mobility is one of the core issues of our society. No one doubts the impact of increasing carbon dioxide levels on our climate. So it’s more and more important to monitor the CO2 emissions and fuel consumption of the fleet.

When thinking about greening your fleet, emissions are of course a crucial element. But what will become more and more important is to look at all emissions, not just CO2 but also NOx and PM as they have an impact on air quality.

Control your costs of ownership by choosing a brand with a high value proposition, low CO2 engines and strong residual values while motivating your employees by listing a dynamic brand that challenges the established manufacturers.

Lancia Voyager

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Mazda

Johan Verbois, General Manager Fleet & Remarketing, Toyota Motor Europe

Fleet strategy cal leadership (Twinair,Multijet II, in 2012 eco:Drive) to gain competitive ad-

Fleet organisation in 2012

KIA

Ranieri Honorati, Fleet & Used Cars Marketing Director, Fiat Group Automobiles

FLEET EUROPE # 57

Toyota Yaris Hybrid

KIA cee’d

In 2012 Mazda will further increase its focus on small and medium sized fleets. At the beginning of this year, it established a team of fleet development managers, who will focus on Austria, Switzerland, South-West Germany, and Northern Italy. Additionally, Mazda will continue to develop and strengthen the relationship with selected leasing partners. Mazda has a team of almost 50 people in Europe. In line with the strategy to focus on small and midsized fleet and to be as close as possible to the customer, Mazda focuses its efforts at market level. International fleet inquiries have successfully been coordinated through a one face to the customer approach. The key fleet model in 2012 will be CX-5, which Mazda will use to enter the C-SUV segment. This segment has been growing above average and will continue to do so in many markets. When our engineers develop a new vehicle, they are inspired by our slogan Defy convention. I recommend the same approach to fleet managers when they take their purchasing decision because Mazda is an excellent alternative to the traditional players.

Mazda CX-5

The automotive world has had to face up to tough economic times in the same way as many other industries. On top of this, it has to take into account changing legislation in terms of emissions, changing driver behaviour and other fleet manager requirements. The major car manufacturers remain confident, however, and give us a flavour of the major lines of their strategies for 2012.

Volkswagen Group

Opel/Vauxhall

Volvo

Renault

Martin Jahn, Managing Director of Volkswagen Group Fleet International

Ian Hucker, Director, European Fleet & Remarketing, Opel/Vauxhall

Javier Vazquez, Director International Major Accounts, Volvo Car Corporation

Volkswagen Group (Volkswagen, Audi, SEAT and Škoda) will be introducing additional product highlights for customers in 2012. It is therefore approaching the year ahead with a positive mindset, in spite of the somewhat uncertain economic situation in some European countries.

2012 will be an exciting year for Opel/Vauxhall. Beyond the further advancement of conventional powertrains, Opel is investing over one billion Euros specifically for the development of alternative propulsion technology.

Volvo Car Corporation will continue expansion plans throughout 2012 and invest for the future. The focus will be on 3 main areas: strengthening the brand through the Designed Around You strategy, launching of the All-New V40 5-door hatchback and the V60 Plug-In Hybrid and China ramp-up through increased sales and dealer development.

Volkswagen Group will continue to keep a watchful eye on the market to ensure that it can adapt to fluctuating conditions and any changes in customer requirements. Customers want reduced complexity, and Volkswagen plans to supply this. For example, Volkswagen Group controls the international tendering process centrally Škoda, as an example, is currently running a program called Fit For Fleet, which is mainly focused on SME businesses. Fit for Fleet program is focused on improving process and competence on the side of the importers and dealers towards the fleet clients. Volkswagen Group also has the experience and expertise required for dealing with both local and global tendering processes. The new A3 from premium brand Audi. SEAT plans to give its bestselling Ibiza a facelift, while Škoda will introduce a new vehicle positioned between Fabia and Octavia with at this point working name A-Entry. Volkswagen Group is not merely intent on increasing the number of orders and vehicle deliveries, but primarily strives to provide diligent customer care. This is our defining objective – for 2012 and beyond.

Audi A3

To meet the growing demands of European and global fleet customers, the Pan-European Corporate Account team at Opel/Vauxhall has recently been expanded and its levels of expertise increased. The team of dedicated Corporate Account Managers is based in different European Regions (e.g. Germany, the UK, Hungary, Belgium) so that they are familiarized with customer specific demands across Europe. Opel/ Vauxhall has a dealer network with a total of more than 3,750 distributor sites across Europe. The repairer network coverage in Europe of close to 6,500 sites provides customers with the peace of mind that is so vital to their business operations. Opel/Vauxhall is preparing to launch an impressive number of new vehicles this year, including the Mokka, Ampera, Zafira Tourer, New Astra GTC, new Astra OPC and the new Astra 4 door. In particular, the Ampera, the extended range electric vehicle (E-REV), is brand ambassador. Whilst TCO will always be at the heart of an International Fleet Manager’s decision making, driver appeal is an increasingly important element of any fleet policy.

Opel Mokka

2012 will see further improvement, as Volvo establishes a new dedicated Global Fleet organisation, with one aim – to get even closer to customers and respond quickly to find solutions for their demands and needs. Following the set up of the new global fleet organisation, the first task will be to review the structure, to ensure that the brand continues to provide optimum support for both international and national clients. The All-New Volvo V40 is Volvo´s entry into the premium hatchback C segment, challenging the Audi A3 Sportback and BMW 1-series and is the latest exemple of true luxury Scandinavian design from Volvo. International customers should be looking beyond the basic transactional price and consider the true running cost of relevant models including fuel efficiency and low CO2 taxation benefits. They should also consider the service and support proposition, ensuring that they are working with a partner bringing innovative fleet products and services to the market.

All-New Volvo V40

Olivier Gautier, Head of Fleet Marketing & Business Development, Corporate Sales Division Renault

Backed by the momentum of international growth, major launches (including Clio IV and ZOE), a new range of Energy engines and the introduction of the new design identity, Renault will continue to grow sales, in line with the objectives in the Renault 2016 - Drive the Change plan. The launch of new models and engines in 2012, especially in the C Segment with the new Mégane & Scénic Collection 2012 linked to competitive engines in CO2 (Mégane Energy dCi 110 hp 90g CO2), and the complete electric range (Twizy & ZOE following Kangoo ZE & Fluence ZE launched in 2011) will reinforce Renault’s capacity to target small fleets but also large accounts. The Renault structure is structured to serve large international clients with 8 International Key Accounts Managers (IKAMs) at international level; over 100 Key Account Managers (KAMs) at national level; fleet teams in the Renault network at local level. Alongside the models mentioned above, the new Clio IV, model to be launched at the end of 2012, will announce the new identity of the brand. The main advice we could give international fleet customers during the car brands selection phase: select a structure allowing the customer to be fully supported in their own international development. Select a vehicle range highly competitive in terms of price, total cost of ownership and CO2 emissions.

Renault ZOE

FLEET EUROPE # 57

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dossier I Car Manufacturers’ Fleet Strategy

PSA Peugeot Citroën Olivier Bodet, Director B2B, Peugeot Citroën

2012 in a nutshell

Fleet strategy in 2012

Fleet organisation in 2012

On the model front

A piece of advice for fleet owners

PSA Peugeot Citroën’s first ambition in 2012 is to stay a step ahead in design with distinctive vehicles (DS line, …), and services (mobility services: Mu by Peugeot, Multicity by Citroën…). PSA Peugeot Citroën is also offering low-carbon vehicles thanks to the full hybrid diesel solution HYbrid4, already available on Citroën DS5, Peugeot 3008 and soon Peugeot 508 saloon and 508 RHX. Small Fleet: development of dedicated business solutions through the dealer network; Medium Fleet: a European programme in Citroën Business centers (more than 500) and Peugeot Professional centers (650). These programmes include additional sales and after sales services dedicated to B2B customer requirements. Key accounts: Dedicated International Key Account Manager team in order to offer a simple and efficient communication solution: one single point of contact for both Peugeot and Citroën. PSA Peugeot Citroën has reinforced its organisation with a new department: International Fleet Sales and Development (IFSD) which aims to respond more effectively to specific business requirements. Its International Key Account Manager (IKAM) team is dedicated to international tenders and business development with large fleets. When the fleet demands are related to a single country, it is managed by the National Key Account Manager. In addition PSA Peugeot Citroën has implemented a dedicated team to Long Term Leasing companies. Citroën: Increased range with new compact SUV model: Citroën C4 Aircross. New style for Citroën C1, Berlingo and Jumpy. Peugeot: 2012 will see the market launch of Peugeot 208, and 3 full hybrid diesel models fitted with HYbrid4 technology: Peugeot 3008, 508 RXH and 508 saloon car; the brand will continue forwards, in particular, with the launch of the Peugeot 4008.

Jaguar Land Rover

Mercedes-Benz

Simon Dransfield, General Manager, Corporate Sales Europe, Jaguar Land Rover

Hans-Georg Lutz, Senior Manager International Corporate Sales Mercedes-Benz Cars

2012 is an exciting year as Jaguar Land Rover has several new products being launched, expanding the product range and attracting new customers to both brands. It is constantly developing new products for future launches, and updating current models to meet the changing technological environment, customer needs and reduce its carbon footprint.

Regarding Mercedes-Benz brand, the intention is to exceed the record sales of 2011 and once again plan to achieve the best year in the company’s history. In addition to the B-Class, in 2012, Mercedes-Benz is expecting a further boost from the sustained high demand in the C-Class segment, continued growth in SUV sales and the launch of the new A-Class and the CLS Shooting Brake.

The company will continue to launch cars/derivatives that are targeted at fleets and executives. It will continue to adopt a balanced and measured approach to the fleet market working in partnership with rental, leasing and end user companies. In addition to this, Land Rover is the vehicle of choice for a significant number of governments and industries where there exist specialised functional car requirements.

This is driven by a strong commitment to provide fleet customers with the best fleet solutions. Mercedes-Benz always strives to meet their requirements in terms of sales and service offers. Key Account Managers are experts in their fields and well-connected throughout the whole company in order to best answer customers’ most in depth requests.

The Corporate Sales team enables the needs of the customers within their own countries to be met. There is also a central contact, so that international fleet demands can be met, and all sales teams will work together to ensure that the customer receives the best information and offer available. The new Jaguar XF Sportbrake, powered exclusively by diesel engines and driving the rear wheels via an eight-speed automatic gearbox, will be a key model for fleets. In 2012 Jaguar Land Rover expects to see a growth in new car performance in the region of 9.6%, despite the challenging economic outlook. The platform for this improved sales performance lies with the establishment of the Jaguar XF2.2 and Range Rover Evoque as viable company cars. To keep the policy balanced, there needs to be something there for everyone, from the engineer right through to the boardroom. Our cars attract new recruits and give existing employees something to work towards.

International KAMs represent the ‘One-Faceto-the-Customer’ to centralised procurement departments. At national level, the company has set up fleet programmes in all key markets and established sales and service structures. Offerings are targeted to companies operating country-wide with fleets of all sizes. At a local level, the MercedesBenz Fleet Centers provide vehicle solutions. The star in 2012 will be the A-Class. With its expressive design and highly innovative technologies, it embodies the pulse of a new generation at Mercedes-Benz. As environmental and cost aspects increase in importance, international fleet customers should consider selecting a truly sustainable fleet partner that can provide them not only with a wide range of vehicles to satisfy varied requirements, but also with environmentally friendly products.

It is important for fleet managers to find the right partner for their fleet needs. Therefore, working with a car manufacturer which has a consistent experience in fleet management with a total understanding of their requirements is a key point. At PSA Peugeot Citroën, we build our models with a clear understanding of B2B specifications as well as an economic vision and last but not least a performance focus.

Peugeot 4008

Jaguar XF Sportbrake

Mercedes A-Class Steven Schoefs ■

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dossier I Car Manufacturers’ Fleet Strategy

Services meeting evolving needs As part of a questionnaire we asked the major manufacturers to answer, we asked them what they felt were their main assets towards fleet clients. This could be in the form of products, coverage, services… here is a short selection of what they had to say.

ll of the brands provided detailed information, and the points below are not exhaustive. They do, however, represent a good idea of how modern car manufacturers are moving forward and how they are attempting to satisfy the evolving needs of the international fleet market. Fiat is clearly basing its approach on several factors. In terms of product, Fiat Punto and Panda are performing extremely well, and in 2011 increased by 11%, while Alfa Giulietta has become a favourite in the C-segment. KIA too has a product offensive: the all-new Picanto (A-segment), Rio (B-segment), and Optima (D-segment), models were launched 2011, and the important C-segment will be attacked with another all new model, the cee’d new generation, launching in March at the Geneva Motor Show. At the directors’ end of the car park, Jaguar Land Rover, alongside its Sportbrake, has launched The Range Rover Evoque a compact, advanced technology SUV, with the lowest fuel consumption of any Range Rover. The 2WD, eD4 Diesel Coupé emits less than 130 g/km of CO2 emissions. Mazda is very clear about its major benefits: the main product assets for fleet are clearly Mazda6 and CX-5, and the brand points out that both are performing exceptionally well in terms of residual value. Volvo is pushing its DRIVe models with low emission

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FLEET EUROPE # 57

engines and 2012 sees the launch the V60 Plug-in Hybrid, a car which Volvo sees as confirming its position at the forefront of environmental technology. In addition, there is to be a new product offering to the C segment, increasing the scope of the range. Mercedes-Benz clearly has very high hopes for the new B-Class where fuel consumption undercuts its predecessor by up to 21 percent. And of course hopes are very high for the new

The Kia Picanto is typical of modern small cars – brimming with equipment. A-Class which will hit the European showrooms in September. For the first time a Mercedes-Benz with an internal combustion engine will emit just 99 grams CO2 per kilometre. Fleet support Moving away from models, there is the critical question of services to fleets. Opel/Vauxhall, as part of General Motors, says it is one of the few OEM’s that can offer true Pan-European and Global support for its custom-

ers. It points to more than a decade of experience of providing both Global and Pan-European contracts, making it very well placed to understand the needs of corporate customers who are looking to consolidate their purchases into a single agreement. PSA Peugeot Citroën’s B2B strategy is also based on ease of use, and pursues a single aim: to bring business customers a one-stop solution in vehicles, services and an optimised TCO. Peugeot and Citroën are also seen as two brands with a broad range of appealing products, and business sales teams that have made customer satisfaction their main priorities. Renault states that its international fleet customers also obtain the positive economic benefit and simplicity of global one-stop negotiation, with Key Account Managers working directly with the customer subsidiaries and all major leasing companies to ensure that national market contexts, cultures and requirements are understood and respected. Sustainability Toyota cites the environment as a benefit, saying that Toyota Motor Europe has been confirmed as the automotive industry leader with lowest CO2 emissions in the recently published 2010 final report by the European Commission and European Environmental Agency (with a figure calculated under the current regulations based on the 65% lowest emitting vehicles of each manufacturer). This result validates the company’s long-term global strategy towards clean and sustainable mobility through the introduction and mass marketing of vehicles with full hybrid technology and Toyota Optimal drive technology. Volkswagen too sets great store by its network and

A few choice words… “The critical component to building our success is with the SME market where the dealers are the most connected.” (Jaguar Land Rover) “The fleet business is getting more and more strategic. Fleet customers are looking for a wide range and local service support.” (Fiat Group) “KIA aims to be Europe’s 10thlargest mainstream brand by 2013 (from 17th in 2011), with annual new car sales of around 450,000 units.” (KIA) The Range Rover Evoque targets fleets with emissions of under 130 g/km. portfolio. Vehicle delivery figures for 2011, it says, were excellent, and its growth outstripped the overall market. This, it says, shows that the Group and its brands are in good shape in terms of customer perception. The Volkswagen Group also has a global network and a product portfolio with an environmentally friendly model range. The company states that it has skilled employees who have the experience and expertise required for dealing with both local and global tendering processes. Fleet objectives What are the next major objectives of some of the manufacturers in terms of fleet? Fiat is monitoring the downsizing of the car policy of the large and medium companies, along with the theme of eco-sustainability and fuel consumption reduction that may influence the product mix. The company is also forecasting an increase in sales to small enterprise and independents. PSA Peugeot Citroën states that its B2B objectives in 2012 are to consolidate development in the B2B channel in Europe (2012 target of 16% relevant fleet market share on 7 main B2B markets in Europe against 15,7% in 2011). The launch of Peugeot 208 and Citroën DS5 is expected to help the group develop its presence in car policies. The acceleration of B2B sales development in main overseas markets such as China, Brazil, Russia is also one of the key objectives for the group in 2012.

Within two years, Toyota aims to be close to what it considers to be a normal sales volume in Europe, one million Toyota and Lexus vehicles. Toyota also sees the European B2B market growing slightly, whilst the private market stays under great pressure. Mercedes-Benz sees further growth opportunities, especially in North America and in the BRIC countries, as do many other manufacturers. In Western Europe and Japan Mercedes-Benz wants to strengthen its market position, particularly by expanding the product portfolio. Overall it assumes that the global car market will grow by around four percent in 2012 and that its own sales will grow faster than the market. It is quite clear that all of the manufacturers are concentrating on two major themes in terms of ensuring that their clients are kept satisfied. Firstly, the model line-up, which is after all their core business. Models are becoming more sophisticated across the entire range. Even the smallest cars have equipment previously reserved for their larger cousins, while larger ‘executive’ models now provide levels of fuel efficiency and CO2 emissions which might have been thought impossible only a few years ago. Secondly, service to the customer is playing an even more important role. Large international customers now expect a simplified offer across many countries, and often with a single point of contact. Product development and service… the keys to success. ■

“Cost reduction will remain the key challenge of the coming years for fleet managers.” (Mazda) “The first Opel Ampera’s will be delivered to fleet customers in 2012, marking the start of a new era of electric vehicles entering mainstream fleet operations.” (Opel/Vauxhall) “The internationalisation of customers is taken into account, from the beginning of the model conception and, at each point of development.” (PSA Peugeot Citroën) “Mobility offers and sustainable development policies adapted to fleet customers requirements based on TCO reduction are the main key business values for the international fleet business.” (Renault) “In the near future, we consider Plug-in Hybrid will be most realistic in terms of utilizing electricity.” (Toyota Lexus) “Fewer approved manufacturers on the tender list means improved manageability of both the process and costs.” (Volkswagen Group) “The trend is moving towards car sharing. Young people often just use a car when it’s needed instead of owning one.” (Mercedes-Benz Cars)

Tim Harrup

FLEET EUROPE # 57

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dossier I Car Manufacturers’ Fleet Strategy

Tomorrow is not just another day One of the main characters of the international automotive world is the permanent will to adapt products and services to the continuous changing environment and ever more demanding society. As an international fleet manager it can be useful to know which trends are here to stay. According to the European fleet executives of the car manufacturers, electric and efficient urban mobility is one of them.

The next big thing in international fleet business Fleet business is getting more and more strategic. Fleet customers are looking for a wide offer range and local service support.”

It will become more and more important to look at all car emissions, not just CO2 but also NOx and PM as they have an impact on air quality.”

New mobility concepts due to the changing lifestyle of the customers and new powertrain technologies will change the fleet business in the near future. Example: Ownership of an electric vehicle will not be the main priority of the user chooser in the year 2020. Manufacturers will have to develop new business models to cope with this trend.”

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The next big thing for your brand

Ranieri Honorati, Fleet & Used Cars Marketing Director, Fiat Group.

Johan Verbois, General Manager Fleet & Remarketing, Toyota Motor Europe

Chan Uk Jun, Fleet and Remarketing Manager, Kia Motors Europe

The synergy with Chrysler will let us expand our distribution with a wide offer range in different continents.”

Toyota’s new Global Vision makes Europe the focal point for planning small and compact cars. We will further recruit professionals to strengthen our European teams, in all functions, in developing our next core models for Toyota globally. This will also support European operations, in view of 25 new or updated Toyota and Lexus models rolling out over a period of 24 months starting from September 2011.”

Put simply, KIA’s enhanced product range. KIA has one of the newest and most exciting models ranges of any manufacturer in Europe. Kia’s C-segment contender, new cee’d will be pivotal in boosting Kia’s retail sales and, together with the flagship Optima, this new model will also help drive fleet sales.”

Cost reduction will remain the key challenge. Driven by the continuing economy crisis, short term cost savings have been generated through measures like lease extensions, fleet policy downgrading, centralized purchasing etc. However, these measures are not appropriate in the medium term as they clearly negatively impact driver and therefore employee satisfaction. It will be crucial to find ways that combine cost savings whilst still ensuring high quality mobility solutions.”

There are two fundamental issues. The first is the issue of green fleets, and the second is the Increasing internationalisation of the company. The tendering process now applies to an increasing number of countries. At the same time, we are striving to reduce the costs that result from the complexity of handling tenders. Fewer approved manufacturers on the list means improved manageability of both the process and costs.”

The next big thing is already happening. It is the trend towards electric driven vehicles. Mercedes-Benz is the only premium brand that offers four electric vehicles which are produced under series conditions: A–Class E-CELL, smart fortwo electric drive, Vito E-CELL, and our fuel cell vehicle, B-Class F-Cell. Furthermore, there is a trend towards car sharing. That is why we are advancing projects such as car2go, a free-floating car-sharing initiative, and car2gether, a web-based ride sharing community arranging incoming offers and requests for lifts.”

We see two dominant trends; minimizing environment impact and simplifying customers lives. For the environmental challenge, sustainable mobility will mean an increased demand for holistic solutions to clean transportation needs. In simplifying customers’ lives, we mean a range of solutions including in-car connectivity and also innovations such as on-demand service solutions enabling customers to have upgrades and information directly delivered to the vehicle.”

Christian Blank, Director European Fleet Operations, Mazda Motor Europe

Martin Jahn, Managing Director, Volkswagen Group Fleet International

Hans-Georg Lutz, Senior Manager International Corporate Sales, Mercedes-Benz Cars

Javier Vazquez, Director International Major Accounts, Volvo Car Corporation

SKYACTIVE Technology is the most fundamental technological revolution for Mazda. It will defy convention by combining outstanding performance with outstanding fuel economy. All vehicles to be launched in the coming years will contain SKYACTIV technology.”

We are honing our processes in order to accommodate changes in the requirements of our customers. As a global company, we have a significant competitive edge that we will use to the advantage of our customers. ”

The new Mercedes-Benz generation of compactcars will be important.. Across all engine variants of the different series we will set a new benchmark regarding fuel consumption in the compact segment. With the new B-Class we already have the first car of this new generation on the market. In 2012 the new A-Class will hit the road. The new A-Class is the pulse of a new generation of sporty-emotional vehicles which will open up our brand increasingly to younger customer groups, and develop further market regions. Regarding smart, in 2012 we have two highlights coming up: the smart ebike and the third generation of the smart fortwo electric drive.”

Our focus for this year is on 3 main areas: strengthening the brand through our Designed Around You stategy, launching of our All-New V40 5-door hatchback and the V60 Plug-In Hybrid and China ramp-up through increased sales and dealer development.”

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dossier I Car Manufacturers’ Fleet Strategy

The next big thing in international fleet business Mobility offers and sustainable development policies adapted to fleet customers’ requirements based on TCO reduction are the main key business values for the international fleet business.”

Whilst TCO will always be at the heart of an International Fleet Manager’s decision making, driver appeal is an increasingly important element of any fleet policy.”

The next big thing for your brand

Olivier Gautier, Head of Fleet Marketing & Business Development, Corporate Sales Division Renault

Ian Hucker, Director European Fleet & Remarketing, Opel/ Vauxhall

The next big thing for our group is to provide mobility offers which can suit the fleet demands. Further than a TCO approach, we are interested in fleet usage and complete services.” Olivier Bodet, B2B Director PSA Peugeot Citroën

We have an incredible focus on building business through our network. The critical component to building our success is with the SME market where the dealers are the most connected. Here Jaguar and Land Rover will ensure that all the superb new vehicles launched will be presented in a focussed and support manner to our new customers.”

Renault, with the launch of the zero emission vehicles, is playing an important role towards fleet customers in their capacity to reduce costs, fuel consumption and Co² emissions. This year will be a decisive chapter in Renault history with the launch of two electric models: Twizy & ZOE, completing Fluence Z.E. & Kangoo Z.E already available on the fleet market.”

The first Ampera’s will be delivered to fleet customers in 2012, marking the start of a new era of electric vehicles entering mainstream fleet operations. This is only the beginning of a long term transition towards more sustainable forms of transportation and we are excited to be at the forefront of this change.”

Peugeot and Citroën are aware of the customer and sustainable issues and this is why we have developed our mobility solutions, tailored to fleet needs. Also, the internationalisation of our customers is taken into account, from the beginning of the model conception and, at each point of development.”

Simon Dransfield, General Manager, Corporate Sales Europe, Jaguar Land Rover Steven Schoefs ■

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dossier I Car Manufacturersâ&#x20AC;&#x2122; Fleet Strategy

Yesterday in Geneva, tomorrow in your fleet

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1. KIA cee’d Sporty Wagon

The new cee’d Sporty Wagon will go on sale across Europe from the second quarter of 2012.

2. BMW 116d

BMW continues the development of fuel efficient vehicles with the EfficientDynamics technology.

3. Mercedes-Benz A-Class

The new A-Class has become a stylish, young of heart car.

4. Hyundai i30

This new model has to compete in the C-segment, critically important for fleets.

5. Citroën DS5

The Hybrid version of the Citroën DS5 emits only 99 g/km of CO2. 9

6. Audi A3

To be the successor of a successful car is never easy.

7. Volvo V40

The new Volvo V40 will be fitted with the City Safety, now operating up to 50 km/h, and the first pedestrian safety airbag.

8. BMW i3 10

The BMW i3 has to respond to individual urban mobility schemes of younger people in big cities.

9. Renault Twizy

The Twizy is a practical mix of an urban scooter and an electric car that answers the future urban mobility needs of youngsters. 11

10. Mazda Takeri concept

The foretaste of the future Mazda 6 .

11. SEAT Mii

The new Spanish rose, here is the SEAT Mii.

12. Ford B-Max 12

This small monovolume is characterised by its sliding rear doors and by the lack of central support.

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dossier I Car Manufacturers’ Fleet Strategy

13. Peugeot 208

Together with new 208, Peugeot has put the new compact SUV 4008 on the stand at the Geneva Motor Show.

14. Toyota Yaris hybrid

The Yaris hybrid gets 100 hp and CO2 emissions of only 79 g/km.

15. SEAT Ibiza

The little SEAT comes back even more feisty and still sober.

16. Tesla Model S

The Tesla Model S is the new premium electric saloon car that was presented at the 2012 Geneva Motor Show.

17. Opel Ampera

The Opel Ampera /Chevrolet Volt has been elected as European Car of the Year at the start of the Geneva Motor Show 2012.

18. Fiat 500L

The new Fiat 500L (4.14 m), is an urban minivan that will be launched later this year. 15

19. Renault ZOE

The new ZOE is a full electric compact vehicle that will be sold in from autumn.

20. Škoda Citigo

With the Citigo, Škoda has presented its new entry to the small citycompact segment.

Our next rendez-vous will be at the Paris Motor Show in October 2012. Caroline Thonnon & Steven Schoefs ■

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presents

Brussels

June

Organised by

2012

International Fleet Managers Institute

Join the expert training session on managing your fleet in crisis mode PROGRAMME Tuesday, June 5th 2012

11:30

19:00 Welcome Dinner

12:00 Case Study 1

Wednesday, June 6th 2012

12:40 Case Study 2 13:15

08:30 Welcome coffee

Opportunities driven by the crisis

Lunch

14:30 Workshops

09:00 Opening of the session

> Workshop 1: Exchanging best practices relating to the previous crisis

09:10 Macro-economic view on the economic and financial crisis

> Workshop 2: Creating of the “Fleet To Do List” when in a Crisis

10:00 Key lessons learned from the previous crisis 10:30 Coffee Break

16:45 Report of the workshops by the IFMI partners

11:00 Understanding the regulations to control the downside of the crisis

17:00 Wrap up & end of the program

BENEFITS You will learn how to:

You will be given the opportunity to:

> Adapt to a changing environment to manage a fleet.

> Exchange best practices with “colleagues” from various multinationals.

> Overcome the crisis challenges in your fleet management, implementation and sourcing strategy.

> Discuss with your peers in a unique environment.

> Turn a crisis situation into a business opportunity.

TESTIMONIALS Wim Buzzi, Category Manager Fleet at Coca-Cola Entreprises: “The IFMI is a unique international training platform with a special attention for expertise and the exchange of best practices on hot fleet topics. The IFMI is a great networking opportunity in an informal atmosphere.”

Jean-Noël Gouillou, General Purchasing Director at REXEL Group: “The IFMI is an excellent training platform to get an up to date overview of international fleet management and a good insight in upcoming fleet challenges.”

www.fleeteurope.com/ifmi Places are limited, so get your early bird registration now! Early bird registration fee of €550 valid till May 4th 2012 Organiser

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FLEET EUROPE # 57

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dossier I Car Manufacturersâ&#x20AC;&#x2122; Fleet Strategy

Protection first The current predominance of all technologies improving the environmental performances of cars would almost led to believe that car manufacturers are relegating the development of new safety features to the background. The different car brands, however, prove the exact opposite. In safety too, the sky seems to be the limit.

he first Euro NCAP press conference presenting crash test results in 1997 was not only a clear indication of the increasing importance attached to safety fifteen years ago, it was first and foremost an absolute jump-start for traffic safety in its broadest possible meaning. After all, the then heavily contested crash tests set an industry standard against which all brands could compare their performance. A couple of years later this standard was a very popular marketing tool that still proves to be useful today.

FLEET EUROPE # 57

Pro-activity is the key word Today nobody seems ready to compromise on their safety, that of its passengers and, indeed, that of all other road users. In practice this means that cars today not only oblige to the law by offering ABS and electronic stability control

move from passive to active and even pro-active safety is reflected in the safety strategy of all car manufacturers. It goes without saying that a lot of manufacturers are rather secretive about future safety innovations. The more reserved approach of Asian brands is a case in point. The Toyota Group even prefers not to comment on future safety developments. KIA from its side is keen to stress the actual, more or less classic safety offerings (ABS, ESP, airbags and high-strength structure) across its range rather than lift a corner of the future safety veil. An acknowledged safety pioneer as Volvo on the other hand, is not afraid of communicating a clear future plan. In 2007, Volvo adopted its Vision 2020.

A technological arms race has generated a market wide introduction of highly advanced features.

Of course, the proliferation of safety items over recent years is more than a marketing stunt. It signifies just as much a clear reflection of ever more stringent legislation as a crystal-clear translation of a demand from the car buying public. On top of that a technological arms race has generated a market wide introduction of highly advanced features that until recently were the absolute privilege of only the most prestigious manufacturers: those able to ask from their customers a substantial fi-

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nancial effort in exchange for extra protection.

as standard, they almost all aim at a maximum score of five Euro NCAP-stars, a decent pedestrian protection and, preferably, some innovative safety feature. As a result warning systems for lane departure, blind spot and even drowsiness go hand in hand with adaptive lightning, collision alert and adaptive cruise control. Avoiding accidents is now as much a concern as mitigating the results of the next unavoidable crash. This

This states that no one is to be seriously injured or killed in a new Volvo by 2020. The strategy is to primarily assist drivers to avoid accidents but, if an accident cannot be avoided, to mitigate the impact of the crash and protect during the crash. This is to be achieved through a set

of advanced active safety systems designed to monitor traffic, to assist drivers and to actively intervene if a crash is unavoidable, and through effective crash safety protection systems. The Fiat Group disposes of a system ‘sweeping’ the disc brakes clean in rainy conditions as to reduce stopping distances at the moment(s) of truth, a technology a number of other luxury brands also offer. The same goes for the deployable bonnet and the adaptive headlights the Italian group offer. Jaguar/Land Rover offer such safety items too, combining them with a large array of other systems: from the classic reinforced (but lightweight) bodyshell to their renown Pedestrian Contact Sensing System and a state-of-the-art intelligent braking system. Holistic approach Other brands heavily investing in assistance systems that recognise potential danger at the earliest stage, trying to warn the driver first before intervening are Mazda, Mercedes-Benz, Opel and the Volkswagengroup. Mazda not only offers generally spread safety systems as lane departure warning, collision reduction systems and adaptive headlights, it considers its SKYACTIV Technology improving the crash test performance of its vehicles, as an integral part of the brand’s safety approach. Mercedes-Benz from its side covers an enormous amount of safety systems by its holistic approach called “Integral Safety”. In this approach every

safety item aims to help the driver to avoid accidents by using the on-board systems to their maximum capacity. Similar things can be said about Opel that will rollout new driver assistance technologies across its range during 2012. No small achievement is we consider that innovative safety features follow the classic top-to-bottom strategy of all high tech solutions in the automotive industry. And since all good things go by threes, Volkswagen Group follows a similar path as its German rivals. Convinced that downsizing should not apply to safety, this group too offers a large array of safety systems to the broadest possible car buying public. 1 million vehicles equipped From a strong belief that passive safety is a basic necessity even the French manufacturers tend to follow a comparable philosophy, be it with their own accents. One of Renault’s safety baselines for example, says that technology should be used to compensate for road traffic issues and driver errors. A strategy put into practice by their brand-new Visio System. The PSA Group endorses a similar viewpoint by combining classic passive safety systems with advanced active safety items. This group however, goes one step further by offering its fleet customers the so called “eTouch” (Citroën) and “Peugeot Connect” services. According to many a specialist though, the latter probably are the next big step forward, as these systems cover the accident phase that

Automatic Emergency Call In 2010 EuroNCAP already rewarded the post-crash SOS-system of both PSA Peugeot Citroën and BMW. The main reason is simple. These systems can save some 2,500 lives per year on European roads and reduce the number of heavily injured victims by 10 to 15 percent. At this moment the PSA Peugeot Citroën system is operational in several European countries. Once the service is acquired, it is free of charge and remains operational for 10 years.

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dossier I Car Manufacturers’ Fleet Strategy

It goes without saying that a lot of manufacturers are rather secretive about future safety innovations.

The safety benefits of PSA Peugeot Citroën SOS-system are beyond doubt. At this moment the PSA Peugeot Citroën system is already operational in several European countries. received the least of attention so far. The fact that PSA Peugeot Citroën already equipped a million vehicles with the emergency call system so far and that it is planning to do the same with 500.000 cars during 2012, means that this safety technology is finally getting the widespread diffusion it deserves. As such, this type of post-crash warning system is not entirely new, but their impact on road safety could be huge (see box).

If anything this overview clearly proves that safety has never been relegated to the background by the automotive industry. As a sales argument or marketing tool it might have been overwhelmed by environmental considerations that enjoyed the support of CO2-dictated incentives and legislations, but no manufacturer with decent sales ambitions can do without appealing safety features.

The working principle is fairly simple. When the crash sensors in the car detect the car has been in an accident, the system (equipped with SIM card, GPS, microphone, loudspeaker and battery back-up) sends an SMS to a call centre detailing the location of the car at the moment of the impact and the last ten known positions of the vehicle.

Since all manufacturers provide the more traditional ways of (passively) protecting a car’s occupants, the differentiation has to be found in innovative items and the range-wide application of (newly introduced) safety features. That most of brands prefer not to make their rivals any smarter than they already are only strengthens the fact that safety still is a big issue. ■

The system can establish a communication between the occupants and the call centre operator if desired, but the latter can also immediately notify the emergency services. In other emergency situations the system can even be activated by pressing down the SOS-button for 2 seconds.

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FLEET EUROPE # 57

Tim Harrup

www.citroenbusiness.com

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FLEET EUROPE # 57

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dossier I Car Manufacturers’ Fleet Strategy

Fleet Management in real terms Introducing CO2-friendly technology is no mean feat, getting the most out of it probably is an even bigger challenge. With the help of some telematic novelties car manufacturers aim to put their sustainable theories into practice.

aybe it is due to the ever closer link between the two subjects, but telematics turn out to be an almost even secretive issue as safety (see page 28). All manufacturers admit that telematic devices can really benefit driver behaviour, but some remain very reticent when it comes to revealing any details. Not so Citroën that already launched its Citroën EcoDriving (as part of the Citroën eTouch package) in 2010. This online service that is also available as an iPhone-application gives customers reliable data on their fuel consumption and CO2-emission, setting these figures off against a virtual companion EcoProfil. Citroën’s PSA-partner Peugeot introduced its personalised sustainable service Peugeot Eco Consulting a year later. This service aims to bring expertise on three separate levels. First is establishes a benchmark for your fleet by evaluating CO2-emissions by vehicle, by brand, by country and by segment. Secondly Peugeot make eco driving courses accessible to its partners. Last but not least, on-board tools can advise drivers on how to drive more economically. Via Peugeot Connect Fleet the system can even provide relevant data to the fleet manager. Renault too is convinced that on-board support is the way forward. Its R-Link, an integrated tabled poised to equip most of Renault’s future models, offers a number of highly practical (and entertaining community) applications. On top of this and its known eco-driving programme DrivingEco2 Renault will introduce its Fleet Asset Management service in 2012. This exclusive service targets fleet managers and long-term lease companies by permitting real-time management of vehicle fleets. The result should be a more effective fleet management without any intervention needed from the driver’s side. .....................................................................................

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The futuristic F 125 concept-car Mercedes revealed at last year’s Frankfurt Motor Show showcased many web-base telematic features that Mercedes is currently developing into production models.

Comprehensive approach Fiat offers eco:Drive fleet, a tool with the mission to reduce CO2emission by some 15% by training individual drivers through telematics. An analysis of driving data is translated in easy to understand tutorials that can be downloaded to USB or smartphone. Volvo and Jaguar Land Rover follow a similar approach. The Swedes provide Volvo On Call, a mobile application offering a vehicle dashboard feature with extensive driving data. Together with Volvo On Call and the Sensus interface the brand opts for an all-embracing strategy. The same comprehensive approach marks out Jaguar Land Rover, even if their on-board systems tend to keep the driver in charge of all the aids at his disposal.

Telematics can improve the sustainability of both the automotive industry and the fleet business. The German manufactures we questioned kept rather quiet. Opel and the Volkswagen Group did not want to share any telematic ambitions. Mercedes-Benz on the other hand, admits to be very concerned about the genuine value to the customer of any telematic application. This brand sees an outstanding role for all kinds of functionalities and says it is working on a large extent of web-based telematics showcased by their spectacular F 125. KIA and Toyota Lexus communicated a very similar message. Convinced of the potential added value of telematic devices both agree that driving behaviour can be influenced positively. Toyota Motor Europe even acknowledges having a clear roadmap on the future of telematics. Mazda combines an approach

Renault’s R-Link is one of the many examples of a novel telematic application. It combines the functions of a classic infotainment system while packing more than 50 different apps.

of continuous improvement with the development of future features and today’s already daily practice of providing a comprehensive on-board system. Cost potential Summarizing the future telematic developments of car manufacturers highlights in the first place the enormous potential of these kind of devices. Much of it is still to be explored, but the slumbering benefits are clear. Applied to the fleet sector a substantial improvement in individual driving behaviour would result in a considerable reduction of costs. Fuel consumption (and thus CO2emission) could be cut noticeably combined with a serious reduction of the fleet managements costs. In short, telematics could improve the

sustainability of both car manufacturers and fleet managers by some impressive margin. So even if at this stage telematic innovations might still be ‘work in progress’, we from our side are most eagerly looking forward to the future developments. ■ Dirk Steyvers

Fiat eco: Drive Fleet is a textbook example of an easy to understand and easy to use telematic application that allows drivers as well as fleet managers to govern the own carbon footprint. It is available for any Fiat with Blue&Metechnology and can be downloaded free of charge at www.fiatecodrivefleet.com

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MANAGEMENT I Tips & Tricks

Learn from the winners! The three winners in the International Fleet Manager of the Year’ Awards at the Fleet Europe Forum in November, clearly have a lot to pass on to their fellow fleet managers. So we asked Ivor Johnson (Pfizer), Holger Wiegand (3M) and Ralph Ruckgaber (IBM) for their top tips.

1 2

One of the elements which has most evolved in modern fleet operations is that nowadays, almost everything is based on external suppliers. In the past somebody in the company would write out a cheque and buy the cars, and these would be ‘maintained’ by the company mechanic from time to time. But now not only are the vehicles sourced, but so is the finance, the servicing, the fleet management… It is within this context that our three top fleet managers first of all pay so much attention to supplier relationships in their top tips.

Leverage the supplier relationship. All too often companies outsource the management of their fleet and fail to engage with their chosen supplier. This is a very important resource and source of knowledge that should be fully utilised in order to maintain a well run fleet. Ensure there is structure and regular engagement at multiple levels –operational, day-to day management and strategic.

It is considered important to carry out supplier audits to review KPI’s and processes, and to benchmark. An international industry network to include both client companies and suppliers is a good way of ensuring dialogue. And on top of this, reviewing progress with all stake-holders (internal and external) will keep the process moving forwards. This may involve score-cards. To make this possible, comprehensive service level agreements need to have been agreed with all suppliers upfront. But be realistic, don’t try to measure absolutely everything – concentrate on those items that can make a meaningful difference in improving the way the fleet is run.

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Ensure you allow time to discuss the good things and don’t always focus on the negatives. Normally there is more right than wrong in most relationships.

Amongst the ‘basic’ elements of a car policy which need to be agreed with suppliers is the establishment of a TCO-driven policy including model selection, residual values, CO2 emission levels… Then corporate discounts should be obtained where possible, not just for vehicle purchase, but also for tyre replacement, fuel etc. And if it makes sense to extend contract durations, make sure this is possible.

And finally, maintain a good balance between consolidation and competition amongst suppliers. Along with this critical client-supplier relationship, there is also, of course, the question of how a company organises its fleet management internally.

Ivor Johnson, EMEA Regional Fleet Director, Pfizer

Holger Wiegand, Sourcing Operations Manager, 3M Europe

Ralph Ruckgaber, Manager EMEA Lead Cars & Car Lease, IBM

Benchmark and review existing car policies on an annual basis… the markets are changing very fast and a car policy can be quickly outdated.

Sharing best practices amongst different countries can only be beneficial, and this should include not just processes, but also initiatives. A business intelligence data base may prove to be an ideal tool for this. And make sure the chosen approach is based on organisational efficiency.

The harmonisation of car policies between countries may be part of the overall policy, and this too should be realistic. Only harmonise where it is possible, and restrict areas to those which are actually useful. But whatever level is chosen, check frequently for compliance. For many companies this part of the operation may be in the form of determining policy guidelines and local variations. One size does not fit all, so allow for theses local requirements, whether in terms of car models specified or other aspects.

The fleet strategy is not an isolated case, so ensure this is aligned with the company’s overall strategy, and that top management is supportive of the fleet policy and understands what it is trying to achieve, through a defined ‘fleet mission’. A fleet steering team may well be an efficient way of achieving these objectives, including executive members. In terms of reporting on the fleet performance and progress towards goals, there are also a number of imperatives.

Don’t try to measure absolutely everything – concentrate on those items that can make a meaningful difference.”

8 9 10

Fleet managers should look to capture exceptions and have a process whereby all parties are proactive in the resolution process.

Facilitate management decisions and communication with all countries.

And, of course, deliver compelling results!

Tim Harrup ■

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Advertorial I new generation i30

Meeting all needs

Mr. Allan Rushforth, Senior Vice President & COO of Hyundai Motor Europe

Equipment levels The features available on the new generation i30 are clearly inspired from ‘the class above’ and in particular from the all new, award-winning Hyundai i40 estate and sedan. Features are standard or optional according to model and market. 1. Comfort • Keyless engine starting and stopping

• 7-inch navigation touch-screen

• 10-way powered driver’s seat adjustment

• USB and i-pod terminals

• Heated front seats

• Dual zone air conditioning

• Electronic handbrake

• Automatically illuminating door handles

2. Safety • Cruise control with speed limiter

• VSM (Vehicle Stability Management)

• Rear view camera

• BAS (Emergency Brake Assist system)

• Panoramic roof

• HAC (Hill Assist Control

• Heat reflecting solar glass

• ESS (Emergency stop brake-light flashing)

• ESP (Electronic Stability Programme) • ABS (anti-lock braking)

• 6 airbags plus optional knee airbag

3. Power • Three 1.4 and 1.6 litre diesel engines (90, 110 and 128 bhp)

• 6 speed manual or 6 speed automatic gearbox

• Three 1.4 and 1.6 litre petrol engines (100, 120 and 135 bhp)

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• Speech recognition GPS system

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• CO2 emissions from 97 grams per km

In designing the new generation i30, Hyundai had a number of priorities: European drivers want the highest quality, they want exciting design, they want all the latest safety and comfort options. In addition to these, fleet owners and operators want a classleading TCO, and they want something they have not had before – a car which, if it remains in their fleet for three, four or even five years, will never be out of guarantee – however much it is driven! And leasing companies want to be able to offer this to them. Welcome to the new generation Hyundai i30!

The new generation Hyundai i30 is a newborn champion. The new generation i30 sets new standard in terms of quality, functionality, safety and peaceful driving pleasure. What the fleet experts say “Our brand and our products in Europe are basically a triangulation of quality, low emissions and value. But when it comes to new generation i30, we add to this great design and desirability. This means that people will choose the car with their hearts, and not just their minds.”

“I think that new generation i30 is a good alternative to traditional fleet cars – the German brands in particular. I think it is well equipped, it looks good and it drives well. I would purchase it personally and for fleet it could do very well when people get more aware of the car and the rapidly rising Hyundai brand.”

Allan Rushforth, Senior Vice President and Chief Operating Officer, Hyundai Motor Europe

Manuel Weber, International Account Director, LeasePlan International

The 5-Year Triple Care Guarantee In common with all Hyundai cars, and whether acquired privately, as part of a fleet, purchased outright, leased or on a long term rental basis, the new generation i30 benefits from this unique warranty : • 5 year unlimited mileage warranty • 5 years of vehicle health checks • 5 years of roadside assistance.

And this unique warranty does not expire if you sell the vehicle. The next owner receives the remainder of the five years – adding greatly to the residual value, particularly in a typical 3-year lease situation.

Hyundai: leading the way in quality Designed, engineered and produced in Europe, new generation i30 benefits from Hyundai’s unique ‘in our own hands’ advantage. Hyundai is the only car manufacturer to produce the high tensile, high grade steel for its cars in its own steel mill. From this, right through to financing, everything is taken care of in-house. Recognition has been quick to come: for two years running

Discover our dedicated website

Hyundai has been voted number one manufacturer in the Quality Rating produced by respected German specialist magazine Autobild… which also compares the new generation i30 favourably with Europe’s best-selling car model (also German…!). With i40 break and sedan and i30 hatchback, there simply isn’t anything better for fleet managers to choose in the C and D segments.

More information on the model range and fleet services of Hyundai Motor Europe can be found at www.hyundai-fleet.eu.

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MANAGEMENT I Case study IBM

A 360Â° vision of a 63-country fleet About...

Ralph Ruckgaber Ralph Ruckgaber and IBM were rewarded with the International Fleet Innovation Award 2011. The jury was impressed by the internally developed cost reporting and RFP tools that give a complete overview of all necessary cost and calculation elements in IBMâ&#x20AC;&#x2122;s fleet management. Ralph Ruckgaber, graduated Business Administration Scientists, is in his role of a Global Lead responsible for a total of 85 countries. He has held the post of fleet responsibilities for over twelve years, and has been very much responsible for setting up a global EMEA- and global-wide policy. Future plans include first an EMEAwide fuel tender, and the extended rollout of the electronic driving licence control. Ralph Ruckgaber is based at IBM headquarters in Germany. ........................................................

The IBM fleet in figures

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Cars in Europe

26,500

Cars in other GEOs

2,500

Cars worldwide incl. novated leasing fleets

34,000

Number of countries in EMEA

Number of countries in other GEOs

Main funding

Operational lease

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Ralph Ruckgaber, Global Lead Cars, for IT giant IBM, went home with two prizes following the Fleet Europe Awards 2011. What persuaded the jury to crown him with the International Fleet Innovation Award and give him third prize in the International Fleet Manager of the Year category? An insight into the IBM approach.

BM has operated centralise fleet management since 2007. From the outset, a major priority has been to optimise costs, and to do this, Ralph Ruckgaber has looked at all elements – reduction of resources, headcount, process optimisation and more. Alongside this, CO2 emissions reduction has been a priority, and the international fleet policy is therefore very much influenced by TCO and CO2. At EMEA level, the fleet is operated by twelve centralised buyers, four operational Fleet Management Departments, and input from HR. Where supplier selection is concerned, a Procurement Council considers the options and sets the outlines, but in terms of Processes, the local input is taken into account and all relevant local stakeholders are involved. Tenders at global or EMEA level are the fore-runner to the absolute majority of all selection decisions. All of this is encased within a centralised EMEA fleet programme which, as well as being CO2 focused, operates an EMEA centralised tender process.

able to stakeholders, emphasising the complete scope and total transparency of this tool. Substantial reductions As a result of all these action points, IBM is forecasting substantial reductions in the main environmental KPI’s from a fleet perspective: during the three years from the end of 2011 to the beginning of 2015, it expects to see an annual reduction of the average CO2 emissions of the fleet by -15%. Group supplier policy The IBM fleet policy fits into an overall Environmental Management System (EMS). This involves planning, identifying environmental goals, and then implementation, followed by training where necessary. The impact of suppliers and their actions is a highly important element of the EMS, which therefore sets out eight supplier requirements, embracing topics including energy conservation, greenhouse gas emissions, waste management, recycling… This is not just a theoretical aim, the actual use of resources such as gas, electricity and water, is monitored compared to a baseline period. Progress is measured monthly, with a final result for reducing consumption being arrived at annually. Supplier companies are required to publicly disclose their environmental goals and achievements. Employee training, self-assessment programmes and audits, along with management reviews, form another IBM requirement for its suppliers. In addition, representatives of many of a supplier company’s functions are to be included on a committee to meet quarterly.

We are expecting an annual reduction of the average CO2 emissions of the fleet of 15%.

Total policy The IBM Global car policy emissions guideline sets clear rules for CO2 and for other precisely defined emissions. In other GEOs it considers for example NOx (both NO and NO2), hydrocarbons, carbon monoxide and particulates in the AP region… And in each case, the harmful effects of these emissions are stated (respiratory problems etc…) rather than just setting out that these emissions need to be reduced without saying why. Where the CO2 emissions limits are concerned, the most commonly used and understood, and increasingly the basis for national taxation, standard maximum limits have been set at 120 grams/km for diesels and 140 grams for petrol engines. Where car drivers have been allowed to opt for a superior model, these limits can be increased by a maximum of 20 grams.

It is recognised, however, that some countries outside of Europe may need to be given some time to totally conform to these rules simply because the model offering may not be varied enough. IBM goes further than setting CO2 limits, however: the guidelines recommend that petrol cars are used for shorter trips such as in urban areas, and diesels for longer trips. Because Euro standards are used as a main reference point by many countries outside of Europe, the Euro 5 emissions standard has been set, and all cars in the region must adhere to this. The overall policy and objectives are set out in a programme introduced by Ralph Ruckgaber under the name of ‘IBM Fleet 360° on Demand’. Fleet details, CO2 footprints, tender tools and templates, along with a car reallocation programme, are made avail-

Compliance The EMEA standard car policy has been fully implemented in almost all 37 countries of Europe and compliance is also full. This is helped by the fact that although there is some allowance made for model selection variations from the standard car policy in different countries, there is otherwise little scope for local fleet functions to amend other parts of the fleet policy. The centralised EMEA sourcing hub located in Hungary is responsible for monitoring and ensuring this compliance. In terms of measuring TCO on an international basis, and despite the fact that some 26,500 cars are involved across EMEA region, reporting, although centralised, is on a car by car basis. This is facilitated by use of the leasing companies selected, and an SAP system. Almost all cars are managed under an operational leasing formula, which means that all costs can be captured. When considering TCO, IBM takes into account not just the vehicles themselves, however, but also the internal staffing levels required to run the fleet operation. Ralph Ruckgaber is confident that along with the high degree of compliance, a high level of transparency across the fleet operation has led to the efficient cost/resource achievements. ■

Tim Harrup

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MANAGEMENT I Fleet Europe Awards 2012

And the Fleet Palm goes to…you

For the sixth time in a row, Fleet Europe will reward excellence in fleet management with the organization of the Fleet Europe Awards. This year you can be the winner on 22 November in Cannes.

This year’s edition of the Fleet Europe Awards – the European fleet event of the year - will be organized on 22 November at the French Riviera in Cannes. For the 6th year in a row the European fleet community will gather in Madrid to reward the achievements their peers. The event will reward the best case studies throughout Europe in front of the “crème de la crème” of the international fleet community. The Fleet Europe Awards represent the highest opportunity for professionals within the fleet industry to get the recognition they deserve for bringing new solutions and improvement to the market and to their company. The Award ceremony in Cannes on 22 November will once again close the Fleet Europe Forum. This year’s categories Following the success of the previous editions, we are retaining different Award categories: - The International Fleet Manager of the Year Award o Previous winners: Raphaëlle Jeanneret, Novartis (2007) - Claus-Peter Krüger, Shell (2008) Werner Berger, Nestlé (2009) – Bruce Maclaren, Microsoft (2010) – Ivor Johnson (2011)

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- The International Fleet Green Award o Previous winners: Akzo Nobel (2007) Hewlett-Packard (2008) - Bayer (2009) – Nokia Siemens Network (2010) – 3M Europe (2011) - The International Fleet Safety Award o Previous winners: Shell (2008) – BP (2009) – Coca-Cola Hellenic (2010) – Nalco Europe (2011) - The International Fleet Mobility Award o Previous winners: Barilla (2009) – Accenture (2010) – 3M Europe (2011) - The International Fleet Innovation Award o Previous winner: Vodafone (2010) – IBM (2011) The jury of international fleet managers, lessors, car manufacturers, fleet specialists and people from Fleet Europe will nominate the finalists according to the evolution of their fleet policy, the implementation of key issues like sustainability, safety and driver behaviour and the view on cost control. If you are a fleet manager with an international scope and you and your company have achieved an optimization of the fleet management process and fleet management policy, you are the ideal candidate for this year’s Fleet Europe Awards. Apply now! If you want to join please register at www.fleeteurope.com/awards or send an e-mail with your contact details to Steven Schoefs (sschoefs@nexuscommunication.be)

International Fleet Industry Award 2012 For the third time, Fleet Europe will award a special prize for the innovative efforts of the Fleet Industry Suppliers: the International Fleet Industry Award. This Award highlights innovative approaches, tools, products or services offered by international fleet suppliers. Last year, the specific jury composed of fleet managers decided to reward the company Mobileye for their car application to enhance driver safety. If you are a fleet supplier with an innovative heart, you can be the next winner!

7 reasons

on the

www Everything that moves your fleet

to participate

1 2

Personal Recognition

The Fleet Europe Awards gives you the recognition and the reward you deserve, from your peers and from international suppliers.

Team recognition

Winning an award is a way of showing your fleet team that all the hard work they have put into improving fleet management has been worthwhile, and has been recognized at an international level.

m.fleeteurope.com

Publicity

Being a candidate will also bring you media coverage. The winners will be announced at the Fleet Europe Awards ceremony in Cannes on 22 November 2012, which will be the closing event of the Fleet Europe Forum 2012.

4 5 6 7

Professional development

Feedback from the jury provides guidance and support from experts.

Twitter

Follow Fleet Europe on Twitter twitter.com/fleeteurope twitter.com/CarolineThonnon twitter.com/StevenSchoefs

Benchmarking

Through third-party recognition, you will be able to benchmark your fleet management against others, and share your best practices with peers.

Meet other industry achievers

All nominees will be invited to attend the Awards ceremony in Cannes, a great opportunity to network, share ideas and knowledge.

Internal communication

And winning an award, of course, is excellent news for internal communication throughout the company.

Connect with international fleet decision makers, yours peers and suppliers to exchange ideas. Linkedin.com/fleeteurope

Steven Schoefs â&#x2013;

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Veerle Vallons (Norgine) & Maaike van Hemmen (KCI Europe) Norgine

KCI Europe

Fleet Manager: Veerle Vallons

Fleet Manager: Maaike van Hemmen

Job title: Global Category Manager

Job title: Senior Manager EMEA Fleet

Number of years in post: 3 years

Countries under responsibility: Austria, Belgium, Denmark, France, Germany, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and UK

Countries in account: Austria, Belgium, Denmark, Finland, France, Germany, Hungary, Ireland, Italy, Middle East (Dubai), the Netherlands, Norway, South Africa, Spain, Sweden, Switzerland, Turkey and UK

Number of vehicles: 430, all passenger cars Financing method: operational lease

Number of vehicles in account: 1,100; 700 passenger cars and 400 LCVs

CO2-limit: yes, 180 g/km for top management; 160 g/km for other functions

Financing method: operational lease

Sector of activity: Pharma

Tip for peers: “Involve your stakeholders in every manifestation of change, communicate clearly and correctly, and don’t forget the driver.”

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Sector of activity: Medical devices

Total number of vehicles: 2,600 CO2-limit: yes, 165 g/km for all levels Tip for peers:“In every meeting, know your margin of negotiation. Know on which points you can compromise, and which points you definitely need to win.”

MANAGEMENT I Cross interview

Fleet ladies in the driver’s seat This is the start of a new format: an interview with two international fleet managers. The first to take the plunge are Maaike van Hemmen and Veerle Vallons, fleet managers at KCI Europe and Norgine, respectively. Their shared aim: to improve fleet coordination and efficiency. This time, Fleet Europe is not the only party asking the questions. The interviewees also interrogate each other. Maaike van Hemmen:“I still remember my first day at KCI Europe well. That very day, the company’s EMEA Central Company Car and Car Allowance Policy went live. I had just about four hours to go over it and make some adjustments here and there. The biggest pitfall was my lack of international experience. I just assumed that the methods of reporting and the communications with suppliers and partners at a European level could and would be conducted in the same manner as in the Netherlands. But that’s not the case. Also, I quickly found out that you need to speak with the local departments of your international suppliers, and that too is an additional obstacle: they don’t all speak the same language - literally and figuratively.” Veerle Vallons: “Cars are a sensitive topic. Almost everyone has an outspoken opinion on the subject, and what’s more: they’re convinced they’re right. This means that if you want to conduct a successful centralised policy, you’ll need to tear down quite a few walls, because you can’t please everyone. As fleet manager, it’s your job to formulate and defend the common interest, with respect for corporate strategy. That is anything but easy. Additionally, the introduction of a centrally coordinated fleet policy needs change management in the different national markets, because it’s subject to different cultures, different policy accents, and even different company cars.” You’ve also cut back on the number of suppliers. How did you accomplish that? M. van H.: “After the actual salary itself, the car is the most important aspect of the employment contract for the employee. So you should know what’s on offer at your competitors, and you should determine your offer based on the market situation, and your own corporate strategy. That choice impacts the cost of your fleet policy, but it also determines your attractiveness as an employer. Also, you try to harmonise wherever possible, to keep the policy implementation as transparent as possible. That implies you limit the number of suppliers you work with. In the beginning, we dealt with 28 different leasing companies, now we’re down to four. We do check in every year with each of our national markets to determine whether our supplier choice is still justified. If necessary, we adjust - because our staff satisfaction is essential.”

V. V.: “We’re working on a manufacturer analysis, but our fleet is not sufficiently large to spark the spontaneous interest of the main brands. Which is a shame. For now, our drivers have free choice of brand, but I hope to harmonise this soon. Lease-wise, we work with a single preferred supplier, but with every order, we always check their offer against that of a local player. So it’s eminently possible that a leasing company other than our preferred supplier wins a deal. To follow through such situations, I’ve created a followup document myself, to manager the orders, the runtime of lease contracts, etc.” At present, your CO2 limits are 180 g/km and 160 g/km for Norgine, and 165 g/km for KCI Europe. Isn’t that a bit on the high side? V. V.: “We’re competitive with our peers in the pharmaceutical market, and every year, we manage to lower our CO2 average through the introduction of new vehicles into our fleet. Of course, some companies have a lower CO2 average, but that is very sector-specific” M. van H.: “Since a couple of years, I’m responsible for adjusting our CO2 limits. When I arrived at KCI Europe in 2009, the sky was just about the limit. I then initiated CO2 limits, first at 175 g/km, then at 165 g/km. We now have a proposal to reduce our limit to 150 g/km. This is not a company obligation, but a personal initiative, to challenge myself, our stakeholders, and the market itself.” To what extent are you receptive to hybrid and electric vehicles? M. van H.: “When I started work at KCI Europe, I immediately removed hybrids from our policy: the profile of our drivers is inconsistent with the appropriate use of hybrid technology. Our people average 48.000 km per year, to a large extent on the highway. Hybrids are not the ideal cars for this. Electric vehicles may be the future, but today it’s still too early. There are not enough models to choose from, they’re remarkably ugly, their range is very limited, the infrastructural and legal frameworks are still too vague.” V. V.:“We operate a couple of hybrids in the UK, but we aren’t adding any to our fleet. That may have to do with the fact that the TCO of these vehicles is not attractive enough. We’re open to the introduction of new technologies, but that will take time: the different stakeholders must each approve of the idea, and need to know exactly what their role is, and what the consequences would be.”

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MANAGEMENT I Cross interview

What questions does Veerle Vallons have for Maaike van Hemmen?

How do you ensure that your car policy remains market-based? I compare my own fleet policy with the industry benchmark of the leasing company and the industry benchmark of Towers Watson. I blend these three together and then make a proposal to my Vice President. We determine in which countries we need to position ourselves on, over or under the market. Currently, the preliminary budgets are still drawn up without fuel costs, but I want to change that quickly. This places even more responsibility for vehicle choice on the driver - with driver participation of course. If you give your drivers a say, this creates an almost immediate understanding for any future change .”

What’s your view on fuel management? At my previous employer, I chose to approach this issue in a positive manner, by competition together with the suppliers. Damage-free driving, fuel consumption and traffic fines were measured every quarter, and the ‘best in class’ were rewarded. After a mere 7 months we saw a marked improvement in damage levels, and fuel consumption decreased by 20%. The fun bit was that drivers started challenging each other. I want to revisit this exercise soon at KCI Europe. As for fuel card use, we should rationalise where possible but be careful to maintain competitiveness. At KCI, we have two fuel suppliers per country. Another tip is to ban so-called high-performance fuels, as they don’t improve our cars’ performance. Those fuels only start to produce benefits after 160.000 km, which is more than our lease cars will reach.”

Are you planning to start with a Mobility Policy? No. I still consider Mobility to be an over-hyped marketing concept. It’s my duty to guarantee the best mobility options for our staff, so they can do the best job possible. No matter how you look at it, to our people that still means the company car. Safety and Fuel are more important.”

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What questions does Maaike van Hemmen have for Veerle Vallons?

Do you have a Safety Policy? We don’t have a unified safety policy yet. Last year, my UK colleagues screened the behaviour on the road of their drivers via an online training course, followed by an evaluation. One section did not require further action, but a second group needed to follow an in-class training course. A third segment had to go on an actual on-road course. Our subsidiaries in Germany and France have also sent people into training, but we’re treating this as a local phenomenon so far. We are continuing to analyse vehicle damage in closer detail, and take HR measures when appropriate.”

Do you have software to centrally manage fleet costs and savings? Again the answer is: not yet. But from my position in the Purchasing department, I have a good sense of the cost, and the savings we generate in relation to market values. Because we perform a ‘mini tender’ for each vehicle, we have different prices from different suppliers for each one. I start from the initial prices, average them to arrive at the average market price, which will serve as the basis for the cost/savings ratio. The final monthly lease rent I then compare with the base, and the difference is reported as a cost or a saving - and this over a period of a year.”

Do you have a fleet tool? No, but I did an assessment of three tools last year. I compared our current Excel-based reporting tool to some offers provided by the suppliers - and to the prices they charge for them. I’ve concluded that even though they record and analyse more data, our tool is sufficient for our reporting requirements today. In 2013, I want to revisit the assessment, because it would be useful to have an efficient tool that could quickly, simply and accurately analyse the data of our various leasing partners.”

Steven Schoefs Pictures: Philippe Buissin, Imagellan

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MANAGEMENT I Procurement

Why purchasing helps to create value

2. How to add to value creation? Suppliers that help us sell more are those who bring large volume at low cost. The suppliers that help us sell better are those who generate innovation. How can we make sure we - and not our competitors - are chosen by those suppliers, in support of those strategies? The answer lies, at least partly, in the personal relationships we must build with those suppliers. 3. Supplier Relationship Management We all need to develop a strategy to manage a supplier portfolio. We must be mindful on the one hand of suppliers in function of their importance in terms of spend or criticality, and on the other hand of the volatility of the market itself. All of us use the famous Peter Krajic matrix. We know that our relationship with our suppliers corresponds to the quadrant which we’re in. (see below)

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High Low

1. How to help create value? In the short term, Purchasing and Procurement are used to picking the easy, low-hanging fruit. But the professionals in this field need to change the way they view the world. They need to switch from the classic ‘Win/Lose’ mindset to a more ‘Win/Win’ perspective. Where their attitude still is determined by the maxim that to decrease price is to decrease cost, they need to grasp that to increase market share is to increase profit. So the question is not how to pay less, but how to sell more (i.e. increase market share) or sell better (i.e. increase profit).

How to build a strategy per category

Importance of purchasing (needs)

In the corporate world, Purchasing and Procurement have to find the best suppliers in terms of quality, cost and lead time. For years, this has meant two things above all others: reducing cost and optimising the supplier portfolio. But that is changing. The aggressively price-driven attitude of many purchasing professionals has decimated the suppliers market. Here’s what the Brave New World looks like from a purchasing perspective.

2. Leverage

4. Strategic

Alternative sources availlable Possible substition Competitive bidding

Critical for products costs Dependence on supplier Performance-based partnership

Many competitors Commodity products Buyer-dominated segment

Market leaders Specific know-how Power unbalance

1. Routine

3. Bottleneck

Large product variety High logistics complexity Labor Intensive Systems contracting + e-commerce solutions

Monopolistic market Large entry barriers Secure supply & search for alternatives

Large supply Many suppliers with a dependent position

Technology Few, if any, alternative suppliers Supplier-dominated segment

Reduce number of suppliers

Low

High

Difficulty of the supply market

Quadrants 1 and 2 are the easiest ones for Buyers. Quadrants 3 and 4 are more critical, due to the market’s level of difficulty. In the latter quadrants, we normally try to be recognised by important suppliers as preferred clients, in order to secure volume or potential for innovations. That might sound straightforward enough in theory, but reality is a bit more complex: the relationship is determined by how well we fit with the suppliers, and how well we, the buyers, fit with them!

Business attractiveness

Large supply Supplier Many suppliers continuee with a dependent withoutposition motivation!

Technology Few, if any, alternative suppliers must Supplier Supplier-dominated segment be kept on a L.T. basia

Reduce number of suppliers

Low Low

Client continues No interest without motivation... from both parties

LowLow

High High

Importance for the market the buyer Difficulty of the supply to have us as supplier

DifficultStrategic but clientfit must contnue

We will try Client to keep to convince the supplier

High

Supplier will try STOP ! to convince us

HighHigh

Low

Importance for the suppliers to have us as client

Imp

The relationship with the supplier will depend on how attrative our company is to the supplier’s business and vice versa

plier continuee hout motivation!

Supplier must be kept on a L.T. basia

Low

High

High Low

Difficult but client must contnue

Strategic importance of having our company as a customer

STOP !

Supplier will try to convince us

No interest from both parties

Low

Strategic fit

We will try to convince the supplier

How to sell our company to the supplier? it asks for in depth knowledge about the supplier

High

Importance for the the buyer to have us as supplier

Conclusion Purchasing and Procurement need to make a mental switch, and add to their company’s Value Creation. That’s a very new approach, one which depends largely on our relationship with suppliers… The future of those relationships is rooted in the interactions we’ve been having with those very same suppliers over the last few years. These relationships should be based on trust and confidence. In other words: the company’s value of tomorrow is based on the values of today! ■ Bernard GRACIA

STOP !

How to sell our company to the supplier? it asks for in depth Supplier cont knowledge about without motiv the supplier

Business attractiveness Our point of view

Low

Systems contracting + e-commerce solutions

3. Bottleneck Difficult but client

Monopolistic market must contnue Large entry barriers Secure supply & search for alternatives

Low

High

1. Routine Large product variety STOP ! High logistics complexity Labor Intensive

Power unbalance

Difficulty for the buyer to manage the supplier

The relationship with the supplier will depend on how attrative supplier’s point of viewbusiness and vice versa ourThe company is to the supplier’s

Market leaders Our point of view Specific know-how

Difficulty for the supplier to manage us Strategic importance of having our Low High company as a customer

eep

4. Strategic Critical for products costs Dependence on supplier Performance-based partnership

Low

client nue

2. Leverage Alternative sources availlable Possible substition Competitive bidding Many competitors Commodity products Buyer-dominated segment

Low Difficulty for the buyer

to manage the supplier

Importance of purchasing (needs)

High

How to build a strategy per category

What is EIPM?

The European Institute of Purchasing and Supply Chain Management (EIPM) offers the only executive MBA accredited by the AMBA, a complete certification programme for professionals, and in-companies programmes in nine different languages around the world.

is Dean & Director of the EIPM

FLEET EUROPE # 57

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Business I News

3 questions to

Giovanni Tortorici

President A.I.A.G.A.

1. What is the A.I.A.G.A. and what are the objectives? The Italian Association of Fleet Buyers and Fleet Manager (A.I.A.G.A.) exists for about a year. Its main goal to train and educate on fleet management. We aim for the full recognition of the profession of car fleet manager, a responsibility that is part of the most advanced business strategies, and in this sense, our task is above all to share experiences and make them available to our members. Today, we count already around 100 members. The next step is the launch of specific working groups on common interest issues and specific events. The association also represents fleet managers to the official authorities. 2. What activities does the organization have ? In addition to a quarterly report, a barometer, which is presented to the automotive industry (manufacturers, rental companies and operators), we have created on online library of common interest. We stimulate networking and sharing of experiences. Our next event is “Drive Car Company” in April 2012. 3. What is the most striking trend or main concern of the Italian fleet managers? Finding a balance between pressing demands of cost saving with price lists and fuel prices. Followed by the desire for innovation, but no great desire to invest. From this comes the idea of expanding the horizon of the Fleet Manager. Today, Fleet Manager, Mobility Manager, Travel Manager, Purchasing Manager, IT Manager must work together with the same goal: Sustainable Mobility. Caroline Thonnon ■

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FLEET EUROPE # 57

Philipp Waldmann and Bart Van Rossen both join the international board of HPI Fleet. The new appointees will join chairman Steffen Giebler, and each will be responsible for a number of countries. Philipp Waldmann (photo, 48 years) takes on Germany, Austria, Switzerland, Italy, France, Spain and Portugal, while Bart Van Rossen (37 years) will be responsible for the UK along with Ireland and the Nordic countries.

Arval expanding after a good 2011

Arval has reported an increased level of activity in 2011, despite the difficult economic situation. The BNP Paribas subsidiary now has a leased fleet of 687,000 vehicles in Europe, an increase of 3% on the previous year. The company purchased almost 211,000 vehicles during the year, beating the previous record set in 2008. There was a heavy increase in the number of cars sold, 191,000 – up by 28%. In its home country of France, Arval remains market leader, and in Europe as a whole it attributes some of its success to newly-acquired subsidiaries such as Commerz Real Autoleasing in Germany. Arval is also making progress in emerging markets including Brazil, India and Turkey. Speaking of further geographical development, Director Philippe Bismut confirmed: “I am happy to announce that our presence in Scandinavia will be reinforced by a subsidiary in Finland, which will be operational in the next few months”.

Significant growth for ALD Automotive in 2011

ALD Automotive has published a report on the year 2011 and what it expects to see in 2012. The report shows that the subsidiary of Societe Generale is

the second largest leasing and fleet management enterprise in Europe, and the third largest in the world, with some 917,000 vehicles under management in 37 countries. Growth in 2011 was in particular boosted by the United Kingdom, which grew by 23.3%, Italy (10.6%), France (9.8%), Belgium (7.3%) and Germany (6.3%). These five countries represent a fraction under 80% of ALD Automotive’s worldwide business. But ALD Autimotive is also present outside of Europe, seeing 19% growth in the BRIC countries in 2011, and a massive 87% growth in Mexico. It now has 800 international accounts, having signed 33 new agreements in 2011. For 2012, ALD is predicting further growth, but at a more modest level. It expects to see fleet decision making become more and more international, and it also expects to gain market share in emerging markets.

GM and PSA Peugeot Citroën create a Global Alliance

General Motors Chairman and CEO Dan Akerson (left) with PSA Peugeot Citroën Chairman of the Managing Board Philippe Varin (right). General Motors and PSA Peugeot Citroën announced the creation of global strategic alliance that has to contribute to the profitability of both partners and to improve their competitiveness in Europe. The alliance is structured around two main pillars: the sharing of vehicle platforms, components and modules; and the creation of a global purchasing joint venture for the sourcing of commodities, components and other goods and services from suppliers. Each company will continue to market and sell its vehicles independently. GM and PSA Peugeot Citroën intend to focus on small and midsize passenger cars, MPVs and crossovers. The companies will also consider developing a new common platform for

Business I News

low emission vehicles. The first vehicle on a common platform is expected to launch by 2016.

around 700,000 vehicles globally, was appointed as the software management applicant.

Athlon Mobility Consultancy takes First Smart Mobility Award

Opel Ampera/Chevrolet Volt is Car of the Year 2012

On March 15th in Brussels, Athlon Mobility Consultancy has won the first Smart Mobility Award for Innovation with the mobility management system Momas. According to the jury members – 18 buyers of fleet, travel and mobility from large international corporations - the main reasons for Athlon Mobility Consultancy and Momas to win the Award are that the management system is a true mature one-stop shop solution addressing the various aspects of mobility, allowing to find the best possible travel combination, flexible and configurable to the needs of different organisations and/or countries and enabling many of the operational processes to be automated through and integrated process workflow. The Smart Mobility Award, an organization of Fleet Europe’s sister magazine Smart Mobility Management, was handed over by Belgian Federal Secretary of State for Mobility, Melchior Wathelet.

The Opel Ampera / Chevrolet Volt has been elected as European Car of the Year at the start of the Geneva Motor Show 2012. The Ampera/Volt beats the Citroën DS5, Fiat Panda, Ford Focus, Range Rover Evoque, Toyota Yaris and Volkswagen Up! to the title of Car of the Year.

Orange opts for DS3

Citroën has delivered 70 of its DS3 models to mobile phone operator Orange in France. These form the first part of a total of over 200 of the model which will enter the Orange fleet. They are customised in appearance by having an orange coloured fibre-optic running down the side. Orange has selected the HD90 power unit, which limits average CO2 emissions to 98 grams per km.

Hedef Fleet Services choses Miles from Sofico

Arval has reported an increased level Turkish leasing company Hedef Fleet Services, has installed Sofico’s Miles software solution to manage its active fleet of 12,000 vehicles more effectively. Hedef is one of the top three leasing companies in Turkey and has around 1,500 fleet customers. To manage the growing complexity and to meet the ambitious expansion plans Hedef required a new and powerful leasing and fleet management system. After an RFP, Sofico, whose systems manage

Norbert van den Eijnden, CEO of Alphabet International, was named VDO Automotive Manager of the Year in the Netherlands. The award was created by the Dutch magazine Automotive and is sponsored by VDO, the automotive supplier.

Arval UK has announced a number of changes to its executive management team. Following the divestment of the AllStar fuel card business, Robert Pieczka has returned to Arval UK as Business Development and Marketing Director. Fiona Hall, formerly Commercial Director, has left Arval and her role has been segmented to reflect the very different needs of Arval’s corporate and SME customers. As a result, Mike Curtis will lead the Corporate Sales Division and Elliott Woodhead will lead the SME division and third party partnerships.

3 questions to

Jordi Vila Onses

General Manager Corporate Sales Nissan Europe 1. Nissan has a clear fleet oriented ambition in 2012. How will corporate clients see this ambition translated? From 2011 to 2014 we want to increase our fleet sales by about 40%. Although 2011 was a good year, we are still under-represented in B2B sales. So we will concentrate on optimizing our central organization within Nissan Europe and our Regional Business Units in the different markets. We will have additional dedicated fleet sales people, we will develop our B2B marketing strategy and improve our presence in the car policies of corporate clients by paying attention to dedicated after service, optimized TCO structure and residual values. 2. Until last year Nissan had a separate sales organization for passenger cars and LCVs. That has changed now. What are the advantages of the new overall sales organization? As Nissan is convinced to grow on the private car market as well as on the LCV market, it is necessary to harmonize the sales strategy, so that we can service all clients in the most efficient way. The overall sales organization gives the B2B client and the lease company the opportunity to have one single point of contact. Of course there will still be specialized people and dedicated expertise, but we believe that a harmonized and integrated sales structure is the best way to meet market needs. 3. What are the ambitions in 2012 with the Nissan Leaf? In Fiscal Year 2011 we plan to sell 5,000 Leafs in Europe to grow. In 2012 we are aiming to sell 8,000, with a fleet target of over 50%. But we will do it thoughtfully, developing a plan so to ensure a sustainable presence on the electric vehicle market, providing the clients the best possible ownership experience and the driver the best driving experience. Steven Schoefs ■

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BUSINESS I Hyundai Motor Europe

Aiming the top 5 in Europe and to sell cars to small and profitable businesses. Our challenge is to move from 60,000 fleet vehicles sold in Europe last year to 100,000 fleet vehicles this year. In rental sales our objective is to do no more than 8-9% of total sales. The reason is to give our products visibility with potential customers who today drive other brands. Our ambition is to sell 500,000 cars by early 2013 and around the middle of the decade we want to achieve a 5% market share in Europe and after that we want to be amongst the top 5 manufacturers in Europe. Since 2008 we have seen 40% growth.”

Allan Rushforth, Senior Vice President & COO of Hyundai Motor Europe, is convinced Hyundai can become a top 5 player in Europe in the years to come. Hyundai has been making a mark in fleets for the past two years. The ix35, new generation i30 and i40 are beautiful examples of how Hyundai is becoming a car manufacturer that understands the needs of the European customer and the fleet business. “But there is still a long way to go”, says Allan Rushforth, Senior Vice President and COO of Hyundai Motor Europe. “We have had four years of continuous growth and even in times of crisis Hyundai does well. Last year for example we sold more than 4 million vehicles worldwide for Hyundai as a brand and almost 6.5 million as a group, including KIA. We are the fastest growing car manufacturer. Our scope gives us a competitive advantage in markets like the BRICs because we are present over there since many years.” How important is Europe for a global player like Hyundai? Allan Rushforth: “It may sound strange, but it is probably the most important market in terms of development and fleet opportunities. But we still have a long way to go. We have a market share of 3% in this very mature market, which means we have a good 2% of growth to go before we have reached our global average of 5.2% of market share. This year we are aiming for a 3.5% market share. Europe is very influential in how car brands are seen globally, so we have a lot to win in Europe.” How important are fleet sales in Europe? A. Rushforth: “We would like to achieve a 50-50 split but more important is to improve our penetration in true fleet

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FLEET EUROPE # 57

How are you going to achieve these targets? A. Rushforth: “Firstly we are going to improve sales to fleet, secondly upgrade our dealer network, and thirdly we are going to give our brand relevance to European customers, to create Hyundai brand awareness and to increase the brand image. We realize that in the short term Hyundai is not going to be a top 5 brand in Europe when it comes to sales, but we are convinced that we can quite rapidly become a top 3 player when it comes to service and customer satisfaction. We have a program to cover this ambition step by step and if you know a little bit about Hyundai then you know that this will become reality.” What do you need to improve fleet sales? A. Rushforth: “First of all, fleet business centers. We will have 500 at the end of 2012 and these business centres are the perfect link with our fleet customers. We now also have a dedicated fleet team with a central organization and 28 dedicated local fleet managers, who can concentrate on corporate sales and on the relationships with our partners such as leasing companies and rental companies. And we have understood the importance of residual values and whole life cost so we have a Used Car Program under the name i-Best and there is of course our 5 Year triple care warranty without ownership and mileage limitations.” Who are your competitors? A. Rushforth: “Our main competitor was and still is Toyota. If we look to the European market I see that we have begun to compete with French and even German brands. This is the best evidence that our brand is growing on the European continent. In contrast with other brands the financial and economic crisis has been an opportunity for Hyundai to increase our sales as customers are open to new products with high value.” ■ Caroline Thonnon and Steven Schoefs

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FLEET EUROPE # 57

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BUSINESS I Sortimo International

Using composite materials for in-vehicle equipment Sortimo, the worldwide specialist in tailor made in-vehicle equipment, has presented. Its newest product Globelyst C. The Globelyst C product range consists of environmental friendly fiber composite materials which deliver not only a weight reduction of between 25 and 35 % compared to other materials but also bring strength and stability, water resistance and liquid tightness. According to Sortimo, a weight reduction of 100 kg reduces fuel consumption between 0,3 and 1 litre per 100 km with a reduction of 8 to 15 g of CO2/km. The new Globelyst C program will be on the market from Spring 2012 and will be offered alongside the current Sortimo Globelyst M range, where metal materials are used. Because of the intensive production process, the cost of fiber materials, and the highly sustainable character of the product, the cost price of the Globelyst C range will be higher than the Globelyst M range. But the price setting will certainly be very competitive says Sortimo. Large corporates and large fleets will presumably be more interested in Globelst C than SMEs . The next innovation from Sortimo can be seen at the IAA in Hannover in September 2012, where the company will present the test pilot results of a Sortimo application for smartphones. Thomas Pfalzgraf, Head of International Business Development at Sortimo International confirms that the development of the new Globelyst C program is the biggest step forward in the 40 year history of Sortimo. “Light weight development is essential for the future. The upcoming hybrid and electric vehicle technol-

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FLEET EUROPE # 57

ogy implies a battery that takes up space and weight, and thus reduces load capacity. Weight reduction on in-vehicle equipment is therefore important”. The introduction of the Globelyst C program will be done step by step. “We will start still this year in our home market Germany, After the launch in Germany we will see how we will proceed with other markets, because not only we at headquarter but also the markets have to be ready for this new product line. ”

What about the emerging markets? T. Pfalzgraf: “We are already present in China, Thailand and Russia, but there we follow the fleet market and our fleet clients. In Brazil we are not yet active, but we are looking for the right moment to enter the market.” ■ Steven Schoefs

2011 was an excellent year for Sortimo. Can you repeat this in 2012? T. Pfalzgraf: “You are right that 2011 for us was a record year. In terms of sales and growth it has been the most important year so far. Between 2009 and 2011 we were facing the impact of the economic crisis. Orders were put on hold and clients were waiting before investing in new tools and equipment. But from 2011 our order chain became back on track, with a turnover of more than 80 million euros for Sortimo International, the division that is dealing worldwide with the in-vehicle equipment. This year we are confident that we can continue our growth. There is an economic recession, and this means that the market slows down but on the other hand people are open to new things, so there are opportunities. We expect a lot from the German market, as German business people have the money but don’t want to invest in finance products but instead opt for investments that are good and secure for their businesses. And then we hope to grow in France, the UK, Scandinavia and the USA where we have a joint venture with Knapheide and already have 230 service stations.”

Look for the best solution… The slogan of Sortimo is clear: Others may be cheaper, but never better. Thomas Pfalzgraf: “This slogan can be translated into smart advice. If you look for a solution, look at a complete business solution that fits your needs. Don’t opt for the lowest price only, but pay attention to the service network, the reactivity of the supplier and the total cost of ownership of the chosen product.”

BUSINESS I PSA Peugeot Citroën

Reinforced B2B coordination on group level At the beginning of this year, PSA Peugeot Citroën established a new entity, International B2B Sales, responsible for the fleet sector. The new organisation demonstrates the strategic position occupied by fleet at the highest level of the group, as confirmed by Frédéric Saint-Geours, the new head of the Peugeot and Citroën brands who has taken over from Jean-Marc Gales. Fleet Europe met Olivier Bodet, B2B PSA Peugeot Citroën, and Stéphane Chesnel, Head of International Fleet Sales & Development at during the Geneva motorshow. Fleet Europe: What are the objectives of this new structure? Olivier Bodet: The principal objective is to generate more B2B sales, while always differentiating the Peugeot and Citroën brands. The new entity is in fact a coordination of 4 entities: Peugeot Professional International, Citroën Business International, short term rental and TCO and finally the LCV team. This management structure thus takes on all of the company sales of the PSA Peugeot Citroën group. Stéphane Chesnel: I am taking responsibility for the IFSD (International Fleet Sales Development) part which takes on the activities of Peugeot Professional International and Citroën Business International. The main focuses are: the IKAM team for large accounts, the long term renting team, back office in charge of assisting the sales teams and two business development teams. One of these is for Europe and the other for the major emerging zones. The objective is to expand the maturity and quality of our offering. O. Bodet: Another entity which makes up International B2B Sales is international short term rental and TCO, which is the responsibility of Ludovic Musy. What is the real reasoning behind this reorganisation? O. Bodet: The group has decided to return product management to the Peugeot and Citroën brands, along with strategic and operational marketing. In this way, the European Commercial Management structure can concentrate entirely on the business and its development, both at central and local levels. What are the advantages for B2B clients? S. Chesnel: The major advantage is that the client is firmly at the centre of our concerns. At international level, our teams adapt to the wishes of the client. Some want to have a single point of contact for both brands, others prefer specific contact persons. Our teams are trained to respond to both cases. We organise ourselves around the client. We have also been working to facilitate back office and logistics operations, which are

The trio at the head of International B2B Sales at PSA Peugeot Citroën : Ludovic Musy, Olivier Bodet and Stéphane Chesnel. very important for the client, a real improvement in the quality of our service. What will be the impact on fleet sales volumes? O. Bodet: The objective is quite clearly to allow the IKAM (International Key Account Managers) more time to be able to serve each client even better, and enable them to better develop relationships with new clients. ■ Caroline Thonnon and

Steven Schoefs

BRIC countries at the centre of development The International B2B Sales division is also involved with countries growing rapidly, such as those of the BRIC. “In China, the B2B market is still in its infancy. There is talk of an explosion in sales from 2012, in 2013 and in 2014. At PSA Peugeot Citroën we are taking care to supply specific responses which take account of a different business model. We are getting ready to develop a TCO approach here. It should be noted that in China we have a product development entity. And the TCO strategy is taken into account from the conception stage of a vehicle. What are the levers which will influence the TCO? We really do find ourselves at the centre of this approach. We represent the voice of the client.”

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BUSINESS I Arval

Full service vehicle leasing still best business model, even in a crisis and foremost demand out of these markets is for education and information on FSL, because most companies there still opt for vehicle purchase. The advantages of leasing are not yet well known. This is why it’s good that several international players are active in these markets. But usually this takes time. In India, for example, the company car is part of the wage packet, as in Europe, but is paid for by the employee.”

Tero Tapala, Director Sales & Marketing: “The next big thing for Arval? To develop a few of our great ideas in 2012. “ Tero Tapala is the Director of Sales & Marketing at Arval - BNP Paribas Group. At the Geneva Motor Show Fleet Europe touched base with him for an insight in the trends at Arval and in the wider marketplace. FEU: Is the European leasing sector feeling the effects of the economic crisis? Tero Tapala: Full service vehicle leasing (FSL) as a business model has never been questioned. Companies understand the advantages. During the first crisis, we saw a reduction in the number of company vehicles, especially in those companies that had to downsize their staff. But FSL itself was never questioned. I don’t expect this to change, even if 2012 turns out to be a year of deepening crisis. Of course, there will be further downsizing, driven by CO2 regulation and tax measures. This is what I’m seeing at this Geneva Motor Show. Hybrid is slowly becoming a normality. Last year, the electric vehicle was a real hype. Now I feel it’s a viable option, waiting in the wings. I don’t really see great changes ahead: everybody will keep fighting CO2 emissions. This is the real big trend, and one that influences directly the TCO. Are the trends the same everywhere in Europe? T. Tapala: “Considering Europe as a whole, we witness a small growth. However, the real motors of growth are Brazil, Russia - and Turkey and India are catching up. The first

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What is Arval’s geographic coverage these days? T. Tapala: “At present, Arval is active in 23 countries worldwide. We’ve just added Denmark, and our presence in Scandinavia will be reinforced by a subsidiary in Finland, which will be operational within the next few months. Globally, this represents a fleet of 687.000 leased vehicles, since we at Arval talk of leased fleet, this figure excludes fleet management contracts. We have a lot of international clients with large fleets in Scandinavia, and those markets are mature - hence the desire to set up shop there. After this, it’s important to keep our eyes peeled and be attentive to shifts in the market. Also, we regularly study growth opportunities, as we’ve done recently in Spain and Germany.” How do you see the global market evolve? T. Tapala: “PHH Arval Global Alliance is a partnership that covers on top of the 23 Arval countries North America, South Africa and other African countries, Japan and Thailand, and others. It’s an alliance that’s gaining in importance. We’re sensing that companies are again starting to think ‘globally’, and we’re seizing this trend to offer a true, global offering that provides real added value.” What are the major trends among customers? T. Tapala: “The amount of international biddings is greatly increasing. In 2010, we had just over 60. In 2011 we already had 90. We think this number will increase further in 2012, by over 30%. These are existing customers, or companies that are not yet a customer of Arval but are looking for savings. This increase thus is an indirect result of the economic crisis. Also, more and more fleet managers have been given the green light by their management to internationalise their fleet.” One last tip for managers? T. Tapala: “We’re witnessing over the past months a drop on the second-hand car prices . So, if the mileage allows it, the extension of a contract may be an economical option. … ■ Caroline Thonnon

Second impressions are even better.

Think Again.

New Generation Hyundai i30. www.hyundai.com

Fuel consumption in MPG (l/100km) for New Generation i30 range: Urban 29.7-68.9 (9.5-4.1), Extra Urban 54.3-80.7 (5.2-3.5), Combined 41.5-76.3 (6.8-3.7), CO2 Emissions 159-97g/km.

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BUSINESS I Toyota Motor Europe

More consistency in new customer fleet approach what to do because they perform the same tasks. The knowhow is shared. On top of this, our approach encourages internal competition and commitment, which can never be a bad thing in a service-minded environment. Surely this means that all follow-up from my side will be more difficult, but the increased output and higher quality largely compensate for that. Besides, in the near future I intend to expand the fleet relations towards different stakeholders such as procurement specialists, HR people and consultants. The use of social media can come in handy to strengthen and perpetuate these relations.”

Johan Verbois, General Manager Fleet & Remarketing at Toyota Motor Europe, sees a bright future for Toyota and Lexus. Since the beginning of 2012 Toyota Motor Europe has installed a new Fleet Account Management approach that is acting proactively. Johan Verbois, General Manager Fleet & Remarketing at Toyota Motor Europe, explains how this new fleet approach can help to realise Toyota’s ambitions in Europe. “Before 2012 our fleet policy was focused on local fleet capabilities, such as the establishment of Business Centers and the recruitment of dedicated fleet people in the different countries. That exercise has been done. Today my team counts 3 International Key Account Managers (IKAM) that take care of the operational contact with the European and globally oriented fleet customers and that form the operational connection with specific leasing companies. The three IKAMs focus on headquarters in specific regions but on customer demand however they can be flexible and work whereever in Europe.” Isn’t it strange that the IKAMs take care of the customer relation as well as of the contact with leasing companies? J. Verbois: “Not to me. In doing so you create more consistency within the team and towards the market. If someone were to leave the team, the other know exactly

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Does this new approach mean that Toyota resolutely opts for fleet sales? J. Verbois: “Fleet has been indicated as 1 of priorities by the Top Management. The accompanying slogan sounds. ‘Affordable cost of ownership based upon optimal residual values and customer quality’. The interest in fleet sales is not to be doubted any longer. Our management and network realize the added value of it. Encouraged by the focus on CO2 and the development of fuel efficient technologies customers too, ask more and more for Toyota and Lexus fleet sales. We realize that our strategic approach on sustainability is appreciated by the fleet community because we bring a straightforward message. What we promised 10 years ago weren’t empty words, but turned into daily reality.” Is it true that Toyota explicitly opts for a global approach in terms of fleet business? J. Verbois: “We certainly intend to do so, because we are a true global manufacturer. The strategy is to handle global fleet deals on the location where the client is settled. Internally we set up a global fleet management structure last year in order to be able to react to global customer questions.” ■ Steven Schoefs

Growth in 2012 Johan Verbois sees a bright future for Toyota Motor Europe. “Last year we sold more cars en closed more fleet deals than in 2010. hereby we have restarted our growth in Europe with the ambition to sell more than 1 million cars steadily and profitably.”

SCOPE I News

Diesel prices increased by 44% According to a study of VAB (www.vab. be), the average diesel price in 8 European countries increased by 44% in comparison to June 2009. The global trend is that diesel prices increased more than petrol prices. Comparison diesel prices Feb. 2012

Jun. 2009

% increase

Luxembourg 1,271

0,88

44%

Spain

1,413

0,982

44%

Italiy

1,738

1,08

61%

Belgium

1,55

1,063

46%

1,089

38%

Netherlands 1,499 Switzerland

1,61

1,099

46%

Germany

1,559

1,134

37%

France

1,55

1,158

34%

average

34%

Evolution prices petrol versus diesel Feb/12 Jun/09

0,4 0,3 0,2

More leased cars on French roads French leasing association SNL VLD has reported that although the overall leasing market was slightly down in 2011 – by 1.4% j – the company market was actually quite well up, putting on 6.7%. The overall fleet on French roads operating under long term leasing also increased, by 3%, made up of 2.5% in pure long term leasing and 5.4 % for fleet management. Long term rental companies expect a further rise of similar proportions during this year.

tioned said they intended to pursue such collaboration. The same proportion said that they expected a car’s connectivity to represent a consumer purchasing criterion over the next five years. According to KPMG Head of Automotive John Leech, consumers will extend their expectations for instant access from the home to the car.

Germany, Netherlands and Belgium develop clearing house for e-mobility

Three operators of charging networks for electric cars are developing a common European clearing house for emobility. This joint initiative of the operators behind Blue Corner (B), e-laad (NL) and ladenetz (D), called e-clearing. net, will act as the central interface that

0,1 0

-0,2

-0,1 LU

Price difference diesel/petrol

0,5

both around the 20% down mark. Germany and the UK showed little change, and even Spain only recorded a decrease of 2.4%. In brand terms, a slight drop (-1.6%, - 0.7% YTD) by Volkswagen failed to dislodge it from top spot, where its YTD sales of almost 250,000 are around 65,000 higher than second placed Renault, with Ford, Peugeot and Opel-Vauxhall all in the 145,000 to 162,000 band. The Volkswagen Golf continues to be Europe’s bestselling car (70,000 YTD).

Car power taxed in Italy The new Italian premier. The package, entitled ‘Salva Italia’ (save Italy) includes increased taxation on cars. A new ‘luxury’ tax of 20 Euros per kilowatt of power over 185 kilowatts has been introduced for cars, with this applying proportionally at 60%, 30% and 15% for cars which are respectively 5, 10 and 15 years old. The tax no longer applies when cars reach the age of 20 years.

New car market still suffering in 2012 Research by JATO Dynamics shows that the uncertain economic situation continued to hit the European car market in February 2012. Overall, sales across Europe were down by 9.5% compared to the same month in 2010, bringing the cumulative two month drop to 8.1%. All of the ‘big five’ markets fell, with France and Italy the worst performers,

The French car leasing business is quite positive for 2012.

Car and technology industries se to collaborate Connectivity has become a word and a concept much used in the domain of cars over recent months. Now, the KPMG Global Automotive Executive Survey shows that the growing consumer demand for built-in wireless communications in cars is likely to lead to more collaboration between companies in the automotive and technology domains. A majority of global automobile industry executives questioned said that they believed that joint ventures and strategic alliances between their industry and the technology world would represent a successful investment strategy. A third of those ques-

The European clearing house will not just help the network operators and e-mobility providers, also car manufacturers and leasing companies will benefit. streamlines authorisation, clearing and a vast array of value-added services for e-mobility. A projected rise in e-mobility will necessitate a more comprehensive solution. Interconnecting the growing number of systems, integrating navigation and reservation options, and billing between providers, will be major tasks for e-clearing.net. The first applications will go online in June 2012, and will be free of charge for the first few years.

More news on fleeteurope.com

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SCOPE I The Eurozone

A New Sort of Crisis The Eurozone crisis seems to have been with us forever. Politicians have been talking around the Greek situation for four years, even before the most recent euros 130 billion bailout. Without seeking to allocate blame or identify indecision the crisis is here and has to be resolved and it has an impact on the European fleet business. The delights of common financial policies and the rarefied atmosphere of shared fiscal disciplines and defaults are beyond these current notes. But is the current Euro-crisis different from a business viewpoint from than any other regional crisis? The Finns had a crisis twenty years ago and came out of it through their own efforts. Sweden and the United Kingdom too have had crises and worked their way out without so much as a sniff of teargas. Currently Portugal and Ireland are patiently getting on with austerity returning to economic normality. Eurozone GDP fell by 0.3% quarter on quarter in the fourth quarter of 2011, with few economies escaping contraction. This is the first drop overall since third quarter 2009, although since second quarter 2011, growth has been faltering. While Germany may be showing the first signs of bottoming out and possible recovery it is likely the rest of the Eurozone will continue to contract overall in the first and possibly second quarters of 2012. The sheer fragility of the financial and banking situation in the Eurozone is underlined by some transnational organisations at the close of business each day transferring cash to London and into sterling. The common characteristic of changes in the Eurozone has been the reluctant acceptance that nations have been spending more than they have earned and now have to contract. That means overall tightening of fiscal policy, a loss of services and a squeeze on consumer purchasing power, growth and overall business sentiment.

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The message today is â&#x20AC;&#x2DC;plan before you actâ&#x20AC;&#x2122; but beyond that look to be able to use your purchasing power as well as utilising the economic downturn to implement structural changes for the business as it will emerge in the recovery.

SCOPE I The Eurozone

The Fleet Operators’ Dilemma From the pan European fleet operator’s viewpoint, the critical issue is one of balance – where will business hold up, where will it develop or contract, what will be the implications for fleet – and are there any opportunities for real benefit? Vehicle sales in the Eurozone are an interesting measure of change. Reduced sales mean massive discounts may be offered by all OEMs. While these may encourage some incremental sales even if only private units being replaced ahead of time, what might it mean to the fleet operator? Is this an opportunity to negotiate an updating of the fleet on advantageous terms in individual countries even if not right across Europe? The used car equation must be taken into account of course. Would any highly advantageous new car terms be wiped out by failing residuals? The equation is further complicated by looking ahead to the replacement of those possible new units. In 3-4 years’ time there will be a shortage of used cars with the associated price implications. Consider some of the individual markets; - I n France, for instance, there has been an 8% rise in forecast residual values in the last year, a vote of confidence in used vehicle prices. Rental rate too have stayed remarkably stable across the year. A sign of a market on the cusp of a recovery – if so, what might be the fleet implications? ermany, the strong man of Europe, -G has reported, according to experteye’s European Leasing Index report, shown a reduction in the last quarter of 2011 of 1.3% in rental sales with a reduction over the year of 4% in value terms while residual values have shown a significant improvement. - I taly might be reported as presenting the least optimistic used vehicle market in the last year. Over that period there was a 1.5% rise in forecast residual values but a 3.2% reduction in the last quarter. Lease prices have, in the last quarter, shown a 0.5% reduction but overall a 1.6% rise since May 2010. pain tops the European league in -S terms of confidence in the future despite its 20% unemployment figures

and 50% youth unemployment. Over the last year there has been9.7% increase in residual values although that has stabilised in the last quarter with a 0.8% decrease. Spanish leasing customers have, in the last year seen a 3.5% drop, of which 0.8% reduction has come in the last quarter. Such figures are indicative and may be repeated across the Eurozone. It has been suggested by more than one Pan European fleet manager that ‘merely surviving is a good start’. That challenge may well not be as far from reality as it seems. Economic recovery through Eurozone restoration is on the cards – but when? And, in the meantime, what is the most acceptable strategy for a pan European fleet manager? The simple answer is ‘nobody knows’ the real answer to either question. The role of the fleet executive is to provide business mobility at the best possible cost; stretch that to Eurozone and it may become a little more complex. The answer is probably one of ‘think Eurozone – act local’ – quite simply run each market as an independent fiefdom seeking the most cost effective operation in the market – but watching carefully what is happening in the surrounding countries. Are there cost reduction – or increases - changes which you might be able to utilise with your suppliers? One caveat – if the fleet is being updated then be sure to update it to future requirements and not to match past business models which may need to be changed. The Case for the OEM The OEM has an even bigger dilemma than the fleet operator. Vehicle manufacturing capacity in the Eurozone is much greater than demand yet there are many deals between OEMs and national governments to retain production and employment. The low demand and enforceable manufacturing deals could create problems of large unsold inventories. Answer? Find a way of reducing capacity or enhancing the value added of the vehicles which are manufactured. Result? Reduce the mix of smaller vehicles and focus on larger vehicles in the range – at least one OEM is already doing this. But who will buy those units? Fleet

operators and leasing companies are generally the biggest buyers, but companies are holding back on vehicle replacements and even downsizing their fleets. More aggressive pricing would appear to be one answer – but what will that do longer term to residual values if some classes of units are steadily being discounted? Is this a case where OEMs need to stimulate the used car market? Where Next? ‘Retrenchment’ is not an attractive word but it is highly germane to the Eurozone fleet industry during the crisis. The fleet operator needs to balance supply and demand and be ruthless in disposal if units are ahead of requirements looking to come out of the trauma with a modern, cost effective fleet. The OEM and leasing company have an equal challenge in terms of ensuring excess volumes are not offered at unrealistic prices – short term sales are all very well but further down the line a used vehicle market needs to be protected, even if volumes to market are reduced. At all levels of the fleet supply chain the message is ‘plan before you act’ but beyond that look to be able to use your purchasing power as well as utilising the economic downturn to plan and implement structural changes for the business as it will emerge in the recovery. ■

Professor Peter Cooke University of Buckingham, UK

A Fleet Operators Tool Kit -U se Eurozone purchasing power -M atch local fleet supply and demand & look for deals -P redict future used vehicle residuals -R uthlessly dispose of used vehicles & other assets -R estructure & reorganise fleet for future not historic requirements -L ook for the best deals – from OEMs & leasing companies -M atch/exceed austerity elsewhere in the business

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