Fleet Europe 59 - DOSSIER : LCV management in Europe

NEXUS COMMUNICATION - FLEET EUROPE #59 - periodic magazine - September 2012 - Deposit Office Liège X

September 2012 - # 59

DOSSIER

LCV MANAGEMENT IN EUROPE Market overview, new products, trends, tips & tricks BUSINESS

Interviews Sofico and HPI Fleet & Mobility on fleet management transparency

Scope

Taxation Company car taxation differences in Europe and abroad

Management

Taking care of the internal customer Peter Van Hoeck (Carestream) Corrado Simontacchi (Huntsman)

ATTEND THE FLEET EUROPE FORUM & AWARDS 2012 – November 22, 2012 in Cannes (France)

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EDITORIAL

Join us in Cannes for the Fleet Europe Forum & Awards 2012

‘How the global context influences the European Fleet Management Business’. The central theme of our annual Forum. Join over 500 of your peers for this unparalleled opportunity to reach and hear from top level decision makers.

Low EU growths rates, decreasing European business confidence, opportunities in emerging markets, global alliances… Find out what this all means for the European Fleet Industry and European Fleet Customers. Industry executives, international opinion leaders, the most important fleet customers internationally will gather together to listen to each other and to share expertise and best practices.

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Last but not least, the IFMI will organize a special Expert Session with a focus on global fleet management. Exclusively for international fleet managers and fleet executives.

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FLEET EUROPE # 59

CONTENT

DOSSIER I LCV Management

An essential update to LCV or van management.

With an overview of products, trends and legislation.

SCOPE

A special focus on company car taxation.

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BUSINESS

management I Best practices

Corrado Simontacchi (Hunstman) and Peter Van Hoeck (Carestream Healthcare)

Athlon Car Lease shows it is moving up the ladder.

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I DOSSIER I

I BUSINESS I

Essential update on LCV Fleet Management. . . . . . . . . . . . . . . P. 7

News. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 44 Interview with Sarah Lomas and Richard Sikkel (Athlon Car Lease). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 46

Weight reduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 8 Product and trend overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 10-15 Mobile workshops . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 16 Remarketing the LCV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 21 Tracking & tracing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 28 Electric LCV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .P. 30 Tips to manage an LCV Fleet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 32 Taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 34

Barry Steel, Donlen Corporation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 48 Ian Hucker, Opel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 49 Steffen Giebler, HPI Fleet & Mobility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 50 Jan Bouckaert, Sofico. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 51 Chan Uk Jun, Kia Motors Europe

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I MANAGEMENT I

I SCOPE I

News. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 35 Cross-interview: Corrado Simontacchi and Peter Van Hoeck. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 36

News . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 54 Taxation in Western Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 56 Taxation trends in the rest of the world. . . . . . . . . . . . . . . . . . . . . . . . . . . P. 58

IFMI: the fleet ‘to do’ list to get through a crisis. . . . . . . . . . . . . . . . P. 42

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) Thao Van de Poel - Internal Sales Assistant tvandepoel@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, Yves de Partz Special thanks to: Vincent Rupied, Bernard Gracia, Bart Vanham , Accenture 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 Reproduction rights (texts, advertisements, pictures) reserved for all countries. Received documents will not be returned. By submitting them, the author implicitly authorizes their publication.

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

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dossier Essential update on LCV fleet management I LCV Management

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Light Commercial Vehicles – in other words vans of up to 3.5 tonnes – often form a significant part of company fleets, especially for those companies whose work includes supplying or servicing equipment. Van fleets require a different approach from car fleets in some areas, however, and this is why we take a closer look at this specific segment here. The total van market (new registrations) in the EU is suffering from the economic downturn in the same way as many other markets and businesses, but there were still almost three quarters of a million new Light Commercial Vehicles registered in the EU in the first half of 2012, down 12.2% compared to last year, figures from ACEA (European Automobile Manufacturers’ Association) show.

Of the big five markets, only Germany has resisted during the half, down by under 1%, while France and Britain saw declines of around 8% and 10% respectively, and Spain and Italy were down by just over a quarter and just over a third.

In this section, we look at the products available, their development, new trends, the use of telematics, and we ask three top international LCV Fleet managers to share their best tips and tricks with us. And no dossier on vehicle fleets nowadays can be considered complete if it doesn’t mention what is happening where electric propulsion is concerned. ■

Enjoy your reading

Fleet Europe Poll Which of the measurements below do you prefer when it comes to cost-efficient and sustainable LCV Management ?

6%

18%

3%

9%

64%

Route optimization Integration of telematics Optimization of load capacity Vehicle downsizing/downgrading Introduction of alternative powertrain

Steven Schoefs Steven Schoefs

Despite the difficult economic times, car manufacturers are developing new sustainable and more efficient-friendly Despite the difficult economic manufacturers are developing new and more efficient-friendly LCVs that can contribute to thetimes, futurecar urban mobility needs.

Here you see thesustainable ‘electric’ Renault Kangoo Z.E., which LCVs that canVan contribute to the future urban mobility needs. Here you see the ‘electric’ Renault Kangoo Z.E., which was elected of the Year 2012 last November. was elected Van of the Year 2012 last November.

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dossier I LCV Management

Weight reduction, the major challenge The European market for light commercial vehicles of less than 3.5 tonnes (LCV) is in the red, with a global drop in sales of 10.8% over the first six months of the year, compared to the same period in 2011. The major cause?

Predominantly greater falls in the southern countries which first and foremost involve compact LCVs.

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hese tough times, which are hardly affecting Eastern and Northern European countries, or even Germany (- 1.9%) but indeed Great Britain (- 5.3%) and France (- 7.2%), are they temporary?

Opinions vary between the relative optimism of some and the fears of the Volkswagen Group (23% market share in the five major European countries) according to whom “the 2013 year, is looking difficult”. It is known that for LCVs in general, the TCO (Total Cost of Ownership) is of prime importance in the eyes of more prudent and well informed clients.

Since 2006 and the EURO IV standards, a new generation of relatively high performing but above all more efficient engines has appeared. At the same time the LCVs are driving more and more like cars thanks to new powertrains. These trends which improve road holding and comfort are completed by a more appealing appearance.

They justify the increasing numbers of LCVs available such as combis or company crew buses, such as the future Citan from Mercedes.

Attention to safety At the same time, the increasing requirements for comfort and security have brought about structural modifications (more rigid bodywork, crossbeams with variable deformation) and the appearance of equipment formerly reserved for cars: ABS, airbags, air conditioning, ESP, navigation systems, electric windows etc. This development has also had a negative effect: the unloaden weight of larger size LCVs has moved up from 1.5 tonnes 10 years ago, to 1.9 or 2 tonnes today, reducing the payload by the same amount.

Price still is one of the first criteria to opt for a LCV

Decreasing the weight without affecting comfort and safety is not easy, all the more so since it involves complying with requirements which vary from one country to another and from one client to another, independent worker or fleet manager. “One of the specifics of the LCV market”, says Patrice Mouly, responsible for business development at PSA Peugeot Citroën, “is that the buyer is not necessarily the user. One of the first criteria on the major markets is price, and many fleet managers favour a basic vehicle and prefer to go without equipment that they consider superfluous.”

Together with combating pollution – Europe would like to impose an average of 135 g of CO2/km per maker in 2020 – city centre traffic restrictions (Urban Delivery) and new relationships between the bodywork builders and makers, reducing weight without increasing costs is the main challenge to be faced by the LCV of tomorrow. ■ Yves de PARTZ

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1. The LCV sometimes becomes a family vehicle and also a leisure vehicle via the 4x4 and pick-up models – including the Mitsubishi L200 – with towing capabilities.

2. Passenger car or utility vehicle?

The design and above all the road holding, comfort and interior layout - here the cab of the Mercedes Citan - can lead to confusion.

3. Utility vehicles of the range like Peugeot Boxer,

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drive like cars. But the increasing amount of equipment for safety and comfort is not without consequence in terms of weight and purchase price. Fleet managers therefore tend to opt for the basic model, and manufacturers have to think about how to maintain the requested payload.

4. As is the case with the Opel Vivaro, most LCV manufacturers offer an

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extended range on the same base, responding to varying load requirements – including the number of persons. These vehicles are today equipped with cleaner and lower consuming engines meeting Euro V norms. On top of this, the marketing approach is based on TCO (Total Cost Ownership) and allied services.

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dossier I LCV Management

The compact LCV: market overview today and tomorrow The smallest commercial vehicle in the Fiat range was launched this summer: the Panda Van, 3.65 m long (34 cm less than the Opel Corsa Van), offering 1.2 m in interior length and 1 m³ of volume on a flat floor. Associated with 69 or 75 bhp engines, it is a mini-LCV, similar to the Piaggio pick-ups.

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ust above these mini-vans (less than 2m3 load), comes the most significant offering on the LCV market, occupying 30 to 50% of sales volume according to the makers – up to 4.6 m³. This is largely the domain of French brands, which were the first to popularise the concept of mixed vehicles – work and leisure – or simply dedicated to families concerned with space at a modest price. A form of ‘low cost’? At Volkswagen, this connotation is rejected.

The compact LCV is first and formost French

This niche market is dominated by PSA Peugeot Citroën which accounts for 37% of sales with the Nemo, Partner and Berlingo vans, closely followed by Volkswagen (Caddy) and Renault whose Kangoo remains the leader in Europe.

Alongside the Fiat Doblo and Fiorino, Ford Transit Connect, Opel Combo, Nissan NV200 and Dacia Logan, a German rival is expected in September 2012: the Mercedes Citan will be available in three lengths (3.94 m, 4.32 m and 4.7 m), and fitting in between the minis and compacts.

By 2014 at the latest, Mercedes-Benz anticipates that, “small vans are going to develop due to the ‘last mile’ concept”. In other words the last kilometres for delivery in cities from which lorries are being more and more excluded. “It’s a huge issue”, confirms PSA. “Do you go as far as installing platforms for heavy loads on the outskirts of cities? The subject is under consideration. We are working on optimising floor space and payload but there are no general regulations with regard to vehicles or engines”.

Renault is said to be “watching the probable developments of the logistics chain and the concentration of participants, just like the take-over of TNT Express and the Kiala network

by UPS”.

This niche market is particularly prevalent in the fleets of administrations, postal services, the police, etc.

Fiat, which provides postal vehicles in 10 European countries, has thus extended its contract with the Swedish postal service until 2015, to which it will deliver a total of 5,000 Fiorinos - right hand drive to simplify deliveries. For most makers, this success justifies setting up structures appropriate for fleets including business centres and maintenance contracts guaranteeing a total service to the client according to the ‘one stop shopping’ concept. ■ Yves de PARTZ

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1. Volkswagen Caddy Van. The Caddy LCV, like the other sliding side door versions, (Ludospace and 7-seat Maxi) has received a number of modifications this year. On the Caddy Maxi Van for example, the Flexseat option increases the load capacity to 4.7 m³, and the pump-injector diesel en- gines have been replaced by the common rail system.

2. Peugeot Expert. Available as a small van or a combi (Tepee), the Expert received a new front end this spring and above all new Euro V power plants which have reduced fuel consumption and CO2 emissions.

3. Ford Fiesta Van. This is one of the small commercial vehicles whose look and driving experience is very similar to the car from which they are derived. A van with stiff suspension, pleasant to use and at reduced cost.

4. Fiat Fiorino. The compact Fiat utility vehicle is offered with a single wheelbase (2.51 m), in just one length (3.86 m) and height(1.71m), but with two load levels (610 and 660 kg) corresponding to 2.5 or 2.8 m³.3. The LCV sometimes.

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5. Nissan NV200. This LCV with a very conventional look efficiently combines the qualities of a combi with those of a compact monospace and is good in terms of size, flexibility, load and fuel consumption.

6. Mercedes Citan. The first small Mercedes van, the Citan is based on the Renault Kangoo from which it receives its engine units (diesels developing 75, 90 and 110 bhp, 110 bhp petrol), its structure (three lengths, three wheelbases), the dimensions and the van, combi and mixed versions.

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7. Opel Combo. Designed around the Fiat Doblo despite the partnership recently signed with PSA, the compact Opel offers a short wheelbase (2.77 m) or the longest in the segment (3.10 m), a 1 t. load level including driver and a volume of 4.6 m³.

8. Renault Kangoo Express. This multipurpose van is offered in Express, Express Compact and Express Maxi versions, and, with volumes from 2.3 à 4.6 m3 with a load length of 2.1 to 2.9 m.

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9. Ford Transit Connect. This simple and rugged van is a product specifically designed for commercial use, as witnessed by several reinforcements.

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10. Citroën Berlingo. Comfortable and practical, the Berlingo and its cousin the Peugeot Partner have recently been lightly restyled and received a more powerful diesel engine (1.6 l HDi, 115 bhp).

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dossier I LCV Management

The medium sized LCV, typically European This is a trend specific to Western Europe, influenced by the way of life, traffic and road network: favouring medium-sized LCVs which handle more like a car. It is also a way of facilitating the use, including urban, of compact vehicles (payload of 1 to 1.2 tonnes, volume less than 7 m³) or extended through different versions, just like the leader, the Volkswagen Transporter with a payload varying from 875 to 1,466 kg.

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n this regard Volkswagen likes to recall that “the somewhat atypical dimensions of the Transporter are due to the fact that it was designed with the help of a Dutch importer to be used in the streets of Amsterdam!”

It is also the niche market for the Ford Transit , Peugeot Expert, Mercedes Vito, Renault Trafic, Fiat Ducato, Opel Vivaro, Nissan Primastar, Citroën Jumpy and Hyundai H1 Van. Apart from more efficient engines (7 to 8 l/100 km standard average consumption) and the ratio mentioned elsewhere between equipment, safety and overload, these medium-sized vans are the most affected by the new European directive 2007/46 relating to approvals. “The makers,” explains Etienne Rondeau (Renault Belgium Luxembourg), “have to maintain contractual relationships with vehicle modifiers and they both have to share their information”.

Consequently Renault has developed a business unit called “Renault Tech” which designs, produces and sells layouts and associated services to meet the market requirements and those of private clients while respecting the Renault group’s quality and standards.

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There is also an approval procedure for modification projects proposed by each country. According to PSA, “the bodywork builders have become true industrial partners and their constraints are taken into account so that they choose the best base depending on their requirements while offering a consistent and comparable vehicle”.

Legislation Additionally, legislation on goods transport is following the trends of passenger transport in terms of engine type (CO2 emissions, start & stop etc.) and safety, but with the addition of work regulations. These end up making it compulsory to have professional equipment like partitioning, load securing systems or adaptations specific to the type of goods to limit risks of accident, pollution or explosion.

Lastly, the Euro VI standards are going to impose further constraints which may possibly lead to installing speed limitation devices from the outset, already offered as an option but which Volkswagen is not in favour of. Overall, the makers say they will wait for clear standards in order to act by favouring the basic objective: “transport as much as possible for as little as possible”. ■

Yves de PARTZ

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1. Citroën Jumper. The Citroën equivalent of the Fiat Ducato and Peugeot Boxer, the Jumper was rede-signed in 2006. It is offered in four lengths,three wheelbases and three heights. Volumes vary from 8 to 17 m³, with total loaded weight going up to 4 tonnes, the payload thus being 2 tonnes.

2. V olkswagen Transporter. Characterised by its four independent wheels and available as a short or medium length van in three heights, the Transporter LUV offers a usable volume of 4.3 to 9.3 m3 and a payload of 875 to 1466 kg. It is also available as a long or short chassis-cab, double cab chassis, flatbed and double cab.

3. F ord Transit Custom. This new generation of utility vehicles is available as a Combi and van with single or double cab and offers a short (4.97 m) or long (5.34 m) wheelbase and a payload of 600 to 1 400 kg.

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4. N issan Primastar. The style and interior layout were revised in 2010, along with the 2.0 dCi 90 and115 bhp engines equipped with particulate filters.

5. H yundai H1 VAN. Derived from the large ‘Satellite’ monospace, the H1 takes the 170 bhp diesel engine, independent front suspension and the same cab, enabling it to offer, as well as a volume of 5.19 m³, a usable length of 2.37 m and a high level of comfort.

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6. F iat Ducato. Fitted with a 4-cylinder Euro 5 Multijet II engine producing 115 to 177 bhp and with manual or robotised gearboxes, the latest, Ducato also receives, on the130 and 148 bhp versions, Start & Stop and a shift-light for easier gear-changing.

7. R enault Trafic. Revised last year, the Trafic (two wheelbases of 3.09 and 3.49 m, two heights, of 1.96 and 2.50 m, two payloads of 1000 and 1200 kg and four body types), is equipped with the 2.0 dCi engine developed with Nissan (90 and115 bhp) and with the 2.5 dCi increased to150 bhp.

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8. Mercedes

Vito. Available in versions oriented towards transport (Crew) or family (Shuttle) or even the Mixto double cab utility version, the Vito evolved in2011: more comfortable suspension and a range of CDi Euro V engines (4 cylinders 2.2 l producing 95, 136 and163 bhp, V6 3.0 l producing 224 bhp).

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dossier I LCV Management

Between large LCVs, strong Pick-ups and 4X4s The load capacity difference is not huge between medium or large category light commercial vehicles (payload 1.6 tonnes, volume less than 17 m³) or 4X4s and pick-ups, all the more so since practical aspects are affected by the additional weight. But it’s at this level that most high performance vehicles are to be found, associated with high towing capacities.

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or big LCVs such as Renault Master, Mercedes Sprinter, Ford Transit, Volkswagen Crafter, Fiat Ducato or pickups and true 4X4s such as the Volkswagen Amarok, Jeep Grand Cherokee, Nissan Navara or the little Fiat Strada derived from the Palio, the same development s are to be noted: easier to drive, features very much like a car but more favourable taxation. Several of these models, including the Mercedes Sprinter, are also available in a 9 seater combi/minibus version, or with a dual cab layout for 7 people.

life cycles of LCVs compared to those of a passenger car”. Volkswagen, by contrast, hopes “to exceed this figure by 2018 to become the least polluting maker”.

The biggest handicap for these large LCV is their higher fuel consumption and therefore higher C02 emissions. In the latest version of the Master, Renault has recuperated 16 g of CO2 per km, being the equivalent of 0.6 l/ 100 km, to bring the mixed cycle consumption to 7.5 l (195 g of CO2) for the 125 bhp version. But it is clearly the small LCV that will enable the overall average required by the maker to be achieved, just as the new Kango dCi 90 and 75, get by on 4 l/100 km, representing 115 g of C02/km.

What part of the market do fleets occupy in the LCV niche market? Since the notion of fleet covers a wide range, overall figures are difficult to obtain.

For a car maker like Renault, LCVs of less than 3.5 tonnes represent 45% of overall fleet sales (passenger vehicles and vans) due to international fleets and including small fleets and Key Accounts. Partnerships testifying to the value of the ‘Renault Pro+’ launched in 2009 offering expertise, services and mobility solutions in after sales. In the opinion of Mercedes –Benz which achieves 35% of its van business through fleets, “the client has become a partner together with whom we look for the best solution for his requirements”. ■

For Mercedes, less present in the lower range, “the objective of 135 g of CO2/km by 2020 is not realistic, among other things due to the longer

The Hilux pick-up and 4x4 Land Cruiser are also found in this niche market, Toyota alone in the absence of a number 1 Japanese LCV. A situation that is going to develop in the light of an agreement with PSA who within a year will supply Toyota with vehicles based on the Export/Jumpy. Other brands such as Mazda and Chevrolet are not offering any LCVs in Europe.

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1. Jeep Grand Cherokee. A true and pure 4X4, the Grand Cherokee with its 3.6 litre 284 bhp power plant is not the lowest C02 emitting vehicle. That is why the manufacturer had the idea of having it accredited for super ethanol, decreasing the C02 from 246 g/km to 148 g/km. In between times an SRT8 version developing 468 bhp and 624 Nm of torque made an appearance !

2. Renault Master. Launched in 2010, the latest version of the SUV, on offer with the 2.3 dCi engine (100, 125 and 150 bhp) has reduced its fuel consumption by 0.6 l/100 km and its CO2 emissions by 16 g/km (maximum) to achieve levels of 7.5 l/100 km and 197 g of CO2/km (front wheel drive van, 125 bhp Euro V). These characteristics are also to be found on its cousin the Opel Movano.

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3. T oyota Hilux. Accounting for 25% of the European market, the Toyota pick-up is still available with three chassis (Single Cab, Extra Cab and Double Cab) and two engines (2.5 and 3.0 l diesel) meeting the Euro V, norm, the 2 l having decreased its mixed cycle consumption to 7.3 l/100km (194 gr of CO2/km) .

4. Nissan Navara. Competing with the VW Amarok and Hi-Lux, the Navara, built in Spain, is much appreciated in Europe : American look, sold, multi-purpose, 5.29 m long, 2 tonnes when empty and King Cab versions with two occasional seats behind or a double cab, with 5 seats.

5. Volkswagen Amarok. The German pickup is on offer with single or double cab, three transmission modes (4x2, 4x4 permanent, 4x2 selectable), unprecedented volume (5.25 m long, 1.94 m wide) and, since recently, an automatic 8-speed gearbox allied to a bi-turbo 2.0 TDI engine developing 180 bhp.

6. Mercedes Sprinter. Available in Combi or double cab version, the latest Sprinter is equipped with a Euro V engine range (95, 129, 163 or 190 bhp), alongside a new BlueEfficiency version allied to Eco start et and to the EEV with the benefit of altered engine management and a 7GTtronic gearbox.

7. Volkswagen Crafter. Alongside modifications to the styling and to the interior, the latest Crafter is equipped with a new 4-cylinder 2.0 litre engine replacing the previous five cylinder 2.5 litre unit and available in three power levels (109, 136 and 163 bhp).

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dossier I LCV Management

Mobile workshops to create a new working world Whether for medical vehicles, emergency response vehicles, ‘workshop’ vehicles or refrigerated vehicles, the interior layout possibilities are limitless and adapted to each professional’s specific requirements. The interior layout of light commercial vehicles has major development potential. Nowadays, many companies call on specialists to lay out the interior of their van according to their requirements and wishes.

S

tatistics on this are rare as there is very little attention paid to this market. For figures, in France, some say 100,000 vehicles are fitted out per year. In reality, vans represent about 400,000 new vehicles per year, half of which are company vehicles, often with virtually no fitting out, and a cab-chassis which has, by definition, an added-on bodywork. The potential market for fitting out vans can therefore be put at about 200,000 vehicles. However, there is an endless range of layouts going from a simple floor or protective walls to totally transformed and equipped cabs. Many small businesses transform their vans themselves and self-employed craftsmen are behind a good many vehicle layouts, given that large businesses tend to opt for externally-sourced fitout. About one van in two is transformed within the business itself.

And in this regard, there are heaps of ready to install kits. All you have to do is go to a DIY store and buy planks and other material to create your interior yourself. Easy? Economic?

Tailor-made? Maybe. However, this

and reinforce passive safety. Stored properly, tools stay in place under sudden braking. Properly stored, they are a time saver and are easy to find. Properly stored, they are better protected and wear out more slowly.

This mobile workshop enables better use of resources and improves efficiency. Not to mention the fact that the service is often ‘a la carte’ and to each individual’s requirements since it is perfectly clear that, a plumber, fireman, tiler and glazier do not have the same requirements.

Flexibility, ergonomics, design, durability and the environment are driving the development of storage systems

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method has many disadvantages and above all risks. Calling on businesses specialised in fitting out LCVs is not a luxury but more a necessity for a good many fleet owners. This enables the specific needs of each professional to be fulfilled, and while respecting certain constraints.

In reality, layouts do not only enable improving interior order and gaining spacing, more than anything else they make daily life more efficient

And this is well understood by the specialists who have no hesitation in organizing ‘round table’ discussions to exchange ideas between developers and users.

Safety the ultimate objective If one single element has been important over the last few years

Districool is offering an insulation kit for van panels and doors.

in regard to internal layout of vehicles, it is safety. You cannot do everything with any old thing! And fortunately not. So most fitting out businesses do tests and in particular, crash tests. Collisions at 50 km/hr with loads of around 500 kg are recreated. And if deformations without danger are noted, everything stays in place. ISO, TUV and EEC standards, certifications and quality labels are legion, both to ensure the driver’s safety and that of his passenger(s). But if the layout of utility vehicles enables improving safety, the choice of material, wood or metal, remains a topical and sensitive debate. There is not necessarily more risk with layouts in wood. The mortality rate directly linked to this layout is still very low. A fitted out vehicle is, by definition, safer than a van that is not fitted out where tools and transported items are all heaped together. However, new materials like high strength steel, aluminium or polypropylene have come to the forefront with some specialists.

With Globelyst M, Sortimo provides an innovative equipment system in particular using composite materials.

points for securing loads must be able to be used once the layout is installed. If not, what is the point of having a layout and loading material or equipment unsecured in the centre aisle?

Securing systems incorporated in the structure for intuitive use are therefore proposed. In Germany for example, measures have been taken concerning anchorage points and the obligation of securing and there are financial penalties in the event of non respect of these standards.

Perhaps this example should be followed…

From an environmental point of view, specialists are also aware of this. The weight gain leads to a reduction in CO² but also a fuel saving.

Other elements favour the environment: use of composite materials and controlling the product life cycle throughout the entire production process.

Safety is a key element in fitting out vehicles

For example, Sortimo has developed a new range of fittings carried out entirely in composite material enabling the fittings to be used without any loss of resistance.

The weight gain can be up to 70 %. And weight gain also means increased safety. Numerous research trials have been carried out to offer layouts which retain the vehicle’s payload. Laying out company utility vehicles does not avoid the need to pay attention to the conditions of use of these fitted out vehicles. Anchoring points and

Innovative examples Even though safety is an important element, other elements are driving the development of new products.

Consequently, flexibility, efficiency, softness, design and durability are the key words for most specialists who are offering innovative solutions to best meet the needs of a demanding and widely diversified range of clients. So, at Sortimo, they are offering the Globelyst M. equipment system.

Thanks to a high degree of modularity, the combinations are endless and each individual can fit out his vehicle as

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dossier I LCV Management

Fitting out the LCV enables the specific requirements of each professional to be fulfilled and a new working world to be created

The modules offered by Bott combine under floor drawers and standard elements with shelves and storage space.

he wants. Among the innovations, we see the intelligent use of materials like steel, polypropylene and composites, light, soft colours to improve brightness in the vehicle, attachment points in the floor, an attachment system for straps incorporated in the structure, an easily accessible tray for long parts, sliding drawers with ergonomic handles and new more practical trays.

At Bott, the new varioSafe and varioSlide box and compartment systems offer storage solutions for virtually any tools. Once incorporated on the rails, all items are positioned in total safety. The new large volume drawers incorporated under the floor are, in particular, an example of the innovations offered by the new equipment that provides an attractive design and high quality materials with profiled steel for the impor-

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tant structural materials coupled with light aluminium and plastic for the functional elements.

At Districool, there is an insulation kit for vans. There are many benefits. Among which, easy and quick assembly by double component PU gluing, supply of all the moulded connection parts, perfect insulation of the sliding rear doors thanks to their moulded insulating cover and perfect adaptation inside the van with no modification to the existing vehicle. At Modul-System, the new

range is the first totally integrated layout system based on modules and completely customised, extremely light but very safe, sturdy and elegant. The secret of this concept?

Each module is based on a patented T-shaped high strength steel section of ideal size opening the way for practically unlimited shelving combinations, pushing modularity further still. The T-shaped section also enables integrated and secure attachment of accessories. â– Nathalie Pierard

New materials have made an appearance, such as composites

Reduce your costs, not your expectations.

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Move your fleet business to Bosch Car Service and gain significant cost benefits, with no compromise in service or warranties:  Full service for all makes and models until 3,5 tons  Lower prices than main dealers  Highly trained technicians using state-of-the-art workshop and diagnostic equipment  Over 7,000 workshops in Europe and more than 15,000 worldwide Contact: fleet@boschcarservice.com

www.bosch-service.com

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PROGRAM EXPERT SESSION

SAVE THE DATE: NOVEMBER 21st 2012 Focus on global fleet management A 1-day Expert Training Session – Exclusively for fleet managers and fleet executives

Tuesday, November 20th 2012 19:00 - Welcome Dinner at the Hotel Martinez in Cannes (South of France) - Opening of the Session - Introduction to the IFMI, presentation of the expert speakers, introduction of the participants and objectives of the session.

Wednesday, November 21st 2012

Brazil Canada 09:00 - Global Fleet Management – To go global or not to go global China Identifying the reasons, set objectives in line with the company’s strategy and India internal organisation.

Mexico 09:30 - Global Fleet Files – The regional approach of Fleet Management Russia Expert speakers with extensive experience will cover 8 countries, providing Turkey comprehensive information on Brazil, Canada, China, India, Mexico, Russia, Turkey, USA, USA stimulating valuable comparisons and quality exchange of best practices.

12:00 - Company car taxation A global taxation review presented by PWC, diving into the key taxation differences and trends between Europe and the Rest of the World, ending with key lessons to learn from.

13:45 - Case Study & workshop 1 – Internal processes The focus of case study and workshop 1 will be on how to get the mandate, what kind organization to implement (global/regional/country by country), which internal processes to consider, how to globally share common objectives, how to put your plan into action without forgetting the reporting and control aspects.

15:30 - Case Study & workshop 2 – Market & Suppliers Case study and workshop 2 will address elements such as how to collect relevant market information, decide for the optimal financial method, organize an RFI, how to tender, what to outsource to whom and finally how to organize global reporting.

17:00 - Global fleet management from a manufacturer perspective 17:30 - Additional questions to the experts and closing remarks 19:30 - Sponsored dinner by Toyota & Lexus

Registration Organiser

Partners

Major sponsor

Early bird*................525 EUR 1st participant ..........595 EUR 2nd participant..........550 EUR *early bird registration until Sept. 30st 2012 All participants of the IFMI Expert Session can take part, FREE OF CHARGE, at the Fleet Europe Forum & Awards ceremony on Nov. 22.

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www.fleeteurope.com/ifmi

dossier I LCV Management

Transparency in remarketing is needed The value of fleet vehicles at the end of their lease contracts is a crucial element of the TCO. Paul Bradbury, Managing Director of BCA Mainland Europe is one of Europe’s most experienced resale specialists and so well placed to comment on this intriguing market.

The residual values of vehicles fluctuate in line with the overall car market, which is why ‘fixed value’ lease contracts are so popular with fleet managers. Paul Bradbury sees this fluctuation at first hand.

Is it true that the remarketing business and the residual values of vehicles and LCVs are again increasing after some years of uncertainty?

Paul Bradbury: “Average monthly used values reached a post-banking crisis low in Q4 2008. However, by the first quarter of 2009 the underlying robustness of the used car market began to assert itself, helped by falling interest rates which put some liquidity back into the marketplace.

Volume corporate sellers started to extend in-service contracts and while this did not have an immediate effect it began the process that would eventually reduce supply to the market.”

How does BCA see the evolution of remarketing of fleet cars in Europe in the near future?

P. Bradbury: “The trend to smaller, lower emissions cars will continue. Transparency of process and pricing is now a key driver for many fleets. Fleets are paying more attention to the time taken to remarket vehicles. Whereas 30 or even 60 days between last day on fleet and cash in bank did not used to be uncommon, the financial crisis has seen a greater focus on cashflow and there is now an intent to bring this figure to best-practise of around 10 days through better process control, monitoring and optimisation.”

What are the opportunities and constraints when it comes to the remarketing of new technology vehicles like hybrids and EVs? P. Bradbury: “BCA have been tracking the performance of hybrid cars. Remarketing parameters are similar to diesel in terms of age and mileage, but price performance is prone to more erratic peaks and troughs than both petrol and diesel models. This is typical of low volume sectors, where model mix will have an effect.

According to Paul Bradbury, Managing Director of BCA Mainland Europe, “well maintained vehicles, with a full documented service history, properly prepared, will continue to sell quickly and for a good price.”

The markets have yet to see many examples of electric vehicles, so any reaction is hard to judge at this stage.

There is certainly a lot of interest, however, anecdotally motorists are said to have concerns over the front end costs of electric vehicles, which could mean that examples that do reach the used market will have to be competitively valued if they are to be remarketed successfully. There are also questions often raised over battery life and range anxiety.”

What tip does BCA have for international fleet managers when it comes to guaranteeing the highest possible value for fleet cars and fleet LCVs? P. Bradbury: “A key issue in remarketing older vehicles is to have a robust and transparent independent inspection and appraisal process – it is increasingly rare for some buyers to be physically in the same place as the vehicles they are buying, particularly with the growing volumes transacted via the internet. Buyers need to be able to make informed and sensible judgments about a cars value via a PC or laptop screen and it is incumbent on the remarketer to provide coherent, unbiased information and accurate, representative images to allow them to do so.” ■ Steven Schoefs

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The

OPEL COMMERCIAL VEHICLES

Enough capacity for thE 1,000 things in your mind.

Ready to work.

With up to 2,100 kg loading capacity. www.opel.com Combo: fuel consumption urban 10.4–5.5 l/100 km, extra-urban 6.1–4.2 l/100 km, combined 7.5–4.8 l/100 km; CO2 emissions combined 177–126 g/km (according to 2007/715/EC and 2008/692/EC).

Movano (Panel Van): fuel consumption urban 11.3–8.2 l/100 km, extra-urban 9.2–7.0 l/100 km, combined 9.9–7.4 l/100 km; CO2 emissions combined 260–195 g/km (according to 2007/715/EC and 2008/692/EC).

Vivaro: fuel consumption urban 9.4–7.6 l/100 km, extra-urban 7.6–5.7 l/100 km, combined 8.0–6.6 l/100 km; combinedEUROPE 210–174 g/km to 2007/715/EC and 2008/692/EC).

CO 2 emissionsFLEET # (according 59 P.22

Product Profile

Ready to work!

In a fast-changing, fastmoving economy, business is about flexibility, efficiency and reliability. Opel has a broad range of practical and low running-cost commercial vehicles and conversions with flexible specifications to meet exactly the needs for your business.

Corsa Van • Compact, agile, versatile, comfortable and economical van • Makes light work of heavy demands • True purpose-built van with a serious payload capacity up to 475 kg • Load compartment volume: 919 litres • Economic engines: CO2 emissions as low as 89 g/km

Combo

Vivaro

Movano

•H ighest payload (up to 1,000 kg with driver) •L argest load volume for Cargo L1 •H ighest rear axle capacity (1,450 kg) •L ongest wheelbase •B est load length and height • Largest rear doors • Shared lowest load sill •E xcellent fuel consumption for 1.3 CDTI with Start/Stop system as low as 4.8l/100km and CO2 126 g/km

• Stylish van with excellent ergonomics and extensive model choice: Two weight classes, two roof heights, two wheelbases • Panel Van, Combi and Tour bodystyles • Maximum payload: 1,172 kg • Maximum load area volume: 8.4 m3 • Ergonomic cabin design with numerous storages for a more comfortable and efficient working environment • Four economical Euro 5 engines (90 to 115 hp), including ecoFLEX variants with CO2 emissions as low as 180 g

• Excellent range: panel vans available with a range of heights, load lengths and powertrains. A choice of Crew Van, Chassis/ Crew Cab, Platform Cab, Tipper, Dropside, Boxbody and a range of passenger carriers • Four Gross Vehicle Weights up to 4.5 ton • Front Wheel Drive for better loading height & higher payload • Rear Wheel Drive with single & double rear wheels for improved towing capability (up to 3.5 ton), traction & higher GVW • Economical Euro 5 engines (100 to 146 hp) with CO2 emissions as low as 190 g/km

CONTACT Niko Nemec, Sales Director Light Commercial Vehicles Opel/Vauxhall Tel.: +49 61427 73957 - niko.nemec@opel.com

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peugeotprofessionnel.com

IN YOUR JOB, YOU NEED RETURNS.

THE NEW PEUGEOT PARTNER IS EQUIPPED WITH AN E-HDI ENGINE.

NEW PEUGEOT PARTNER

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FLEET EUROPE # 59

Product Profile The extensive experience of Peugeot in designing and building light commercial vehicles, conceived from the very outset to meet the differing needs of their users, has led to the marketleading range of today. Vans for businesses which demand reliability, performance and flexibility, businesses for which the van is part of their business.

Tailored to your needs

Peugeot Bipper A stylish van and yet another Peugeot ‘worker’ to be crowned ‘International Van of the Year’, in 2009. Compact and easy to use in urban environments, Bipper offers a surprising payload and meets stringent environmental norms.

Engine options I 1.4 litre petrol or diesel (Euro V) // Power output I 50 – 54 kW // Load volume I 2.5 to 2.8 m3 // Payload I 610 - 660 kg

Peugeot Partner Partner is a familiar sight across Europe, because it delivers exactly what its users want: ease of access, choice of load volumes, compact size and a modular 3 seats extenso cabin which is unique in its class! In the spring of 2012 a 1.6 litre HDI engine producing 84 kW / 115 bhp was introduced to the range. More power, more performance and torque, class leading fuel efficiency and CO2 emissions, and enhanced driving pleasure.

Engine options I 1.6 litre petrol or diesel (Euro V) // Power output I 55 – 115 kW // Load volume I 3.3 to 4.1 m3 // Payload I 625 - 850 kg

Peugeot Expert Expert was clearly an outstanding working tool when it was elected ‘International Van of the Year’ in 2008. And ever since then, Peugeot has been making improvements! High levels of comfort, ease of driving, pneumatic suspension, automatic gearbox option… and three sizes.

Engine options I 1.4 – 2.0 litre diesel // Power output I 48 – 84 kW Load volume I 5 to 7 m3 // Payload I 1000 – 1200 kg

Peugeot Boxer Boxer offers all the versatility and flexibility you would expect.

The latest enhancements mean that there is now a choice of 3 wheelbases, 4 lengths, 3 heights and 8 layouts! Choosing exactly the right Boxer for your business needs could not be easier.

Engine options I 2.0 to 3.0 diesel // Power output I 740 - 115.5 kW Load volume I 8 to 17 m3 // Payload I 1100 -2000 kg

Alongside the vast range of vans and layouts offered by Peugeot Professional, the vehicles can be tailored to meet even more specific individual needs. Peugeot commercial vehicle experts in every country have selected and work together with specialised, Peugeotapproved converters. To finance your Peugeot van, a range of leasing formulas has been designed by PSA Finance.

CONTACT Hugues de Laage de Meux, Head of International Key Account Sales Tel : +33 1 58 79 86 97 - hugues.delaagedemeux@mpsa.com

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Product Profile

The Undisputed Number 1 in Europe

Renault has been the leader of the European LCV market since 1998.

Renault’s brand new LCV range now spans load volumes of between 2 and 22 m3, in order to meet all the needs of business customers.

Kangoo Express

With three different lengths (Compact, Express and Maxi), Renault Kangoo offers a useful load volume of 2.3 up to 4.6 m³ and a maximum load length up to 2,8 m. Kangoo Express emits 112 g CO2/km (4.3 l/100 km) with the ENERGY dCi 75 - featuring Stop&Start and Energy Smart Management – a new record that reinforces its reputation as segment leader.

Trafic Flexible and practical, Trafic is available in long and short wheelbases, in panel versions ranging from 5 m³ to 8.36 m³ load volume and two roof heights. Comfort and user-friendly design are the watchwords for this model, making life even more comfortable. A full range of engines combine smooth and quiet running to deliver an excellent performance to fuel economy ratio (from 6.8 l /100 km).

Master

Renault Master is proposing more than 350 versions. The vehicle’s many strengths have already been widely acclaimed by many customers: • Design • A comfortable ergonomic cabin • Lower running costs thanks to reduced fuel consumption and very low maintenance costs • A wide range including a new rear-wheel drive version, fully developed by Renault.

Carminat TOMTOM The Carminat TomTom navigation system is now available across the complete Renault light commercial vehicle range and will enable business users to optimize their route planning and thus cut their fuel bills.

Renault Pro +

Renault has adjusted its sales and service network to the needs of its customers’ requirements. Renault Pro+ outlets are based on the concept of ‘one-stop-shop’, offering a full range of business services and mobility solutions in after-sales.

Renault TECH

Renault Tech is a business unit proposing a large offer of conversions answering to LCV customer needs while respecting the quality standards of the Renault Group.

Renault Tech is cooperating with over 100 bodyconverters in Europe.

Kangoo ZE

The electric van delivers zeroemission mobility for business customers who care about environmental issues. Available in two lengths and as LCV and passenger car, Kangoo ZE combines the strengths of Renault Kangoo Express with all the benefits of electric technology at tightly-controlled cost for zero noise (1) and zero emissions (2). (1) no engine noise

// (2) in use, excluding service parts

CONTACT Renault Corporate Sales Division corporatesales@renault.com

www.corporate-sales.renault.com

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dossier I LCV Management

Track & Trace more than just a geolocation system For several years, Track & Trace systems have been rolled out in company transport, logistics and construction. From the outset, it was first and foremost a system enabling your fleet to be tracked, but now its use is extended to many other applications.

T

rack & Trace systems enable transport companies to track their fleet remotely in real time using GPS technology. The black box is the core of Track & Trace systems and is incorporated in the vehicles. Updated information concerning status and position is sent to the company’s central server, in most cases by means of GPRS data communication. So, the back office can in particular track the GPS position, route followed, speed or direction. Here we are mainly dealing with geolocation and management. Who is where? What route has been taken? How long has it needed?

Precise information which facilitates invoicing and saves time, thanks to the fact that apart from geolocation in real time, it is possible to interact with the organisation and optimise transport itineraries for companies, for example.Consequently, kilometres and driving time are reduced and the number of visits, collections or deliveries are increased. “With this tool, you can optimise the rounds in advance”, explains Julien Felix, Account & Project Manager at Market IP. “In the event of urgent intervention, you can redirect the vehicle and thus manage planning far better.”

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Time and travel optimisation Management is not limited to the vehicle, there is better management of field staff so production is increased, travel time can be calculated and this makes invoicing easier. “Track and Trace systems obviously enable automating some processes, like record cards in the building sector”, explains Alexandre Dworkin, General Manager at MS Europe. “This has nothing to do with a Big Brother aspect but is more an onboard time clock enabling the employer to be informed about the hours and role provided by the driver, passenger or on a site.” Not to mention the fact that other information can also be provided such as temperature reports, very useful for maintaining food chain safety in refrigerated transport.

Safety improvement But Track & Trace goes well beyond simple geolocation and staff management. The safety aspect has quite clearly not been neglected. Continuous control of a vehicle and its driver offers a great many benefits in terms of safety. So, in the event of undesirable travel or handling, an alert is sent. Some systems are even fitted with an immobiliser function con-

trolled by GSM. Diagnostics are also made easier as it is possible to anticipate faults, manage breakdowns and have an intervention report.

Driver Behaviour A new innovation - it is now possible to incorporate an analysis module

Thanks to Track & Trace, the back-office can manage multiple data and intervene to optimise fleet management.

A map and an onboard computer enable the transfer of a vast amount of information on driving and geolocation.

on driving behaviour. “Without being intrusive, this module enables participating companies to better inform their employees on the most economical and environmentally friendly way to drive, this being done through a scoring system covering not only the negative aspect, like aggressive

driving, but also helping to demonstrate the best way to drive with an impact on CO²”, explains Alexandre Dworkin. This leads to a reduction in accidents and it also contributes to the company’s environmentally friendly image.

Integration of smartphones Another innovation, fleet management via smartphones. “This tool provides important functionalities”, explains Tinne Baele, Marketing Communications Manager at Transics. “At any time, operators can find out what their vehicles are doing and where they are (on a map), but also read messages from drivers and answer them immediately if necessary.

Logging in to a computer at home or in the office becomes superfluous.”

So there are many reasons why a company may be persuaded to install Track & Trace. For example, we can cite fleet management applications such as optimising mobile staff movements, being able to prove a strictly professional use of a vehicle for CO² tax exemption, reinvoicing travel, activities specific to the building sector, specific location or tracking or perhaps the desire for

an alarm system aimed at improving a vehicle’s protection against theft.

And what about disadvantages?

In spite of its many benefits, Track & Trace is still highly controversial.

Some think of it as it an intrusion on privacy, even spying. “Formerly, this was how it was considered”, explains Julien Felix. “But now, it is possible to restrict the system’s applications and switch between private and professional so as to hide some data once the working day has ended.

In reality, it all depends on the field of activity. In the public domain, it is true that there are more problems with trade unions. But if things are properly explained to employees, this makes integrating the system easier. Transparency is a two way thing and employees must understand the added value of a system like this in their daily work, in particular for overtime, correct calculation of movements and services.”

“In effect, telematics enable many tasks to be automated apart from simple policing intended to catch people”, concludes Alexandre Dworkin. “In general, this is what well run companies are seeking to do.” ■ Nathalie Pierard

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dossier I LCV Management

The electric LCV opens up a new future More than for passenger cars, where Toyota has opened the way for hybridisation and was followed by many competitors, alternatives to petrol and diesel engines are still rare for light commercial vehicles.

W

e are still thinking when it comes to electric vans”, admits PSA which still markets the former electric Citroën Berlingo for administration applications (city councils, postal services). “In the LCV niche market, the offering of compact or heavier vans is still limited, even though some vehicle builders offer them in their price list. The weight of the batteries, range and technology are complex and the stake or investment has to correspond to market requirements or legislation governing it.” The same approach is found at Volkswagen which is testing several dozen electric Caddys in Hanover but according to whom “this technology is one of the solutions for the future – in particular alongside natural gas which is reasonably popular in Germany, but it is not viable at the moment”.

However there are innovations, in particular at Renault where the electric Z.E. Kangoo LUV has been in existence since October 2011 and is offered in France at less than € 20,000.

At 4.21 m long, it has a load volume of 3 to 3.5 m³ and a payload of 650 kg, and 4.6 m³ in the 2 seater Maxi version (an additional 40 cm in length).

The Kangoo Maxi can also be laid out as a 5 seater combi. “We have already won a tender in France with major public companies and covering close to 16,000 Kangoo Z.E.”, says the former authority, adding that “the Twizy town vehicle has many companies interested in it”.

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Waiting for other propositions, in September at the Hanover Commercial Vehicle Exhibition, Peugeot (but also Citroën and Mitsubishi) will unveil the iOn Cargo: rear windows blocked off, a cargo tray installed instead of rear seats and a price of around € 29,000, corresponding to that of a large van.

The maker is going to offer 4 year and 80,000 km contracts, while retaining ownership of the vehicle.

“Ok for the greener LCVs”, concludes Volkswagen, “insofar as they make economic sense and enable an interesting TCO to be maintained.

The only exception concerns either product promoting its image”. ■ Yves de PARTZ

At Mercedes Benz, the development of alternative means of propulsion has resulted in a Sprinter which has 300 km range on natural gas, before automatically reverting to petrol to provide 1,000 km without filling up.

More innovating, production of 2,000 Vito e-Cell, a van but also a combi or crew bus, is underway in the Vittoria plant (Spain): 60 km/h maximum, intra-urban deliveries with a range of 80 km, a payload of 850 kg, recharging between 5 and 10 hrs.

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3

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1. Mercedes Sprinter NGT. The hybrid propulsion of the Sprinter NGT goes from natural gas to petrol mode and vice-versa, at the simple touch of a button. In its single fuel version, the Sprinter NGT operates purely non natural gas. In this version, the petrol carried in the reduced size tank (< 15 l) is only used to start the motor or as a reserve in the case of emergency.

2. Renault Twizy. With its ultra-compact dimensions (a length of 2.33m, a width of 1.23 m and a height of 1.45 m), the Renault Twizy is clearly a vehicle designed for the city. A utility vehicle when required ? Why not, as a sort of scooter with a body and making use of the passenger space.

3. Nissan e-NV200. Tests have just begun in Japan on this compact UV designed on the basis of the ICE version but using the mechanics of the Leaf (109 bhp 280 Nm of torque). The date when marketing is to begin should be known shortly.

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4. Mercedes Vito e-Cell. This van calls upon an electric engine developing 82 bhp and 280 Nm of torque, driving the front wheels. It has a range of 130 km with maximum speed limited to 89 km/h. Three phase recharging takes 5 hours. It will be marketed under a 4 year/80.000 km formula, the manufacturer retaining ownership.

5. Renault Kangoo Z.E. Renault is launching the anticipated electric offensive, including in utility vehicles, and this Kangoo Z.E. ( 44 kW, 1.374 kg) is now on the market, from a restricted number of sales points. In its 2-seat utility version (it also exists with 5 seats), this electric van offers up to 4.6 mÂł of usable volume utile but is denied a radio and air conditioning in utility vehicle form.

6. Peugeot Ion Cargo. The UV version is characterised by the rear window being blocked off and the and the positioning of a boot tub with a retaining end in place of the rear seats and their seat belts. The same 49 kw (67 bhp) and 180 Nm electric engine.

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dossier I LCV Management

Tips & Tricks to manage your LCV Fleet While some of the operational and strategic management of a fleet of light commercial vehicles may be similar to that for a car fleet, other elements of it clearly are not. We asked three respected international managers of LCV Fleets to give us their top tips.

Serge Ruytjens has the role of managing the fleet of telecommunication specialist Ericsson, Poul Brodsgaard does the same at facility services specialist ISS World Services, as does Karin Meersman at Johnson Controls, provider of products and services in facility and automotive. All three have a great deal of experience in running international LCV fleets.

1

The right van for the job. Look at the business requirements and choose vans which are the right size for the different jobs.

Transportation, cleaning, catering, security, landscaping…

A big one, a medium one and a small one may be the most suitable solution for example. There is no point in giving someone a more expensive larger van if he doesn’t have a great deal of equipment to carry. Also take into account climate conditions, and urban or country use.

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Sometimes it can be better to supply some of the drivers with estate cars instead of LCVs

2

Cost is vital.

Ensure that people are transported from A to B at the lowest possible cost.

Use the TCO concept based on discounts, direct and indirect costs. Direct cost are market driven and indirect cost a combination of driver behaviour and supplier quality and network capacity, service, workflow, delivery etc.

3

Reliable brands.

Based on information from historical figures, if high indirect costs are encountered, caused by certain brands, for whatever reason – could be technical issues – think of banning those brands. It is important to have a reliable fleet to provide urgent interventions. Selected brands need to be reliable to ensure the agreed timeframes with the customer.

Serge Ruytjens, Regional Sourcing Manager RWCE - Category Team Lead Cars, Ericcson

4

Supplier excellence.

Reporting systems and proactive supplier behaviour: achieve the right balance between fleet purchase and fleet management to ensure fleet excellence. Optimise purchases by centralising, limiting brands. Leverage purchasing power with lease companies in the same way you do with cars, and combine volumes internationally with international leasing companies to get better deals.

6

Poul Brødsgaard , Group Category Manager - Fleet - Business Carveout and Group Procurement, ISS

5

Safety.

Driver safety is a vital element, both as an evident factor in its own right, and to take account of corporate social responsibility.

To manage your LCV Fleet, use the TCO concept based on discounts, direct and indirect costs

Van or estate car?

Where appropriate, think about supplying some of the drivers with estate cars instead, which are obviously better for family needs than LCVs. In these cases too, the vehicle can be fully liveried with the company name and brands.

Work with a supplier who can coordinate the branding on the commercial vehicles

Karin Meersman, Corporate Fleet Manager EMEA, Johnson Controls

7

Pre-configuration.

Work with a supplier who can coordinate the branding on the vehicles so that when they come from the lease company they are already fully branded and do not have to go out again for this to happen. Also consider whether the LCVs are to be supplied with or without installed equipment (depending on the type of activity).

8

Not user-chooser.

Competition between leasing companies leads to moderate pricing. Let leasing companies allied to car manufacturers and those linked to financial institutions compete between themselves. Give the leasing companies a list of predefined offers from the car manufacturers, with pre-defined discounts. Ensure competitive TCO over the long term and beware of ‘buy-in’ prices.

Tim Harrup

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dossier I LCV Management

Taxation: 2 New CO targets proposed for 2020 the motorway) and roads to be covered (urban, non-urban areas, distances, etc…) are clearly elements to take into consideration for a successful CO2 and cost reduction program.

To our knowledge none of the 19 European member states that have linked car taxation to CO2-emission elements, have done anything focused on LCV’s apart from some incentives for electric LCVs. As part of its strategy to further cut CO2 emissions from light-duty vehicles over the longer term, on 11 July 2012 the European Commission tabled proposals to cut average emissions from vans to 147g CO2/km in 2020, from a mandatory target of 175g in 2017. This follows the legislation adopted in May 2011 for vans (‘light commercial vehicles’ used to carry goods weighing up to 3.5t and which weigh less than 2610kg when empty).

S

etting a long term perspective provides clarity and allows manufacturers to implement a longer term strategy. On the supply side, technology is available and should not add too much to the cost of a vehicle, a cost (easily) compensated by a reduction in, mostly, fuel costs.

On the demand side, fuelled by the positive experiences from lowering CO2-emissions from cars, many companies have started CO2-emission reduction programs for their vehicle fleet (including LCVs) under the ever-present CSR objectives of companies. “Green LCVs” seem even easier to be implemented since they are less influenced by the emotions of the drivers. A well thought-out implementation plan is, however, crucial; the weight of goods to be transported (is there enough torque available), driver behaviour (we all see vans speeding in the outside lane of

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LCV ≠ CAR In principle LCV taxation will, unlike with cars, not be an element to be considered. In the main, LCV taxation is still based on weight, number of axles, etc... and not on CO2-emissions. Based on the information gathered for the Fleet Europe Taxation Guide 2012, some 19 European member states have linked car taxation elements to Co2emissions, making direct and indirect taxes a big part of the savings potential for CO2-reduction programs for car fleets. To our knowledge none of them has done some anything focused on LCVs (apart from some incentives for electric LCVs). Taking into account the CSR driven demand and the absence of the ‘emotional’ aspects in vehicle choice, it is likely that governments do not need to and will not ‘interfere’.

Looking at it from a distance, although LCV and passenger cars may be quite different in terms of their use and users, much cross fertilising happens or is likely to happen in terms of CO2-emissions, driver behaviour and safety with similar in-car and after market technology. ■ Bart Vanham Indirect tax and vehicle taxation expert

Green LCV Unlike with Co2-friendly passenger cars where the governments helped to stimulate demand, the market seems to be more in balance for LCV’s, and the CSR objectives of companies seem to be sufficient to stimulate the request for clean vehicles and safer and appropriate driving behaviour.

‘Green’ cars have proved to achieve the desired objectives, although some tax incentives were and are necessary to influence consumer behaviour. Green vans with similar technology should do the same, although it is expected that van taxation will not provide the extra push, a push that does not seem to be needed.

Management I News Salary sacrifice car scheme at BNP Paribas Fortis One of the most significant fleet deals ever seen in Belgium has been made possible by BNP Paribas Fortis. A new salary sacrifice scheme has been put in place which amongst other opAt BNP Paribas Fortis in Belgium, tions, provides the company’s 16,500 9,000 employees have indicated their interest in having a ‘company employees to take possession of an car’ that fits into the new salary environmentally-friendly car. So far – sacrifice car scheme. the scheme was rolled out in December – 9,000 employees have indicated their interest in having a ‘company car’, and around half of these are set to take delivery this year. The salary sacrifice scheme is part of the Green Mobility Plan that also includes the promotion of public transport and other transport modes.

The employees that have subscribed to the salary sacrifice scheme will get a car, but no fuel card nor a reserved parking space at the company. If the new car scheme proves to be a success, the initiative may be rolled out to other European countries.

CET Safehouse opts for Fleet Alliance Fleet Alliance has won the contract to manage the fleet of vehicles operated by materials testing and site investigation company CET Safehouse. The objective is to keep the workforce mobile while reducing both acquisition costs and the company’s CO2 footprint. As part of this, Fleet Alliance is arranging for a fleet of 50 Renault Trafic and Master models to enter the CET fleet. These vehicles are to include specification enhancements, and they meet Euro 5 emissions norms. Amongst equipment are satellite navigation, rear cameras and motorway maintenance chevrons. The lease terms are 3 years/120,000 miles.

Deutsche Telecom opts for Arval Deutsche Telecom subsidiary DeTeFleetServices has signed a framework agreement with leasing and fleet management company Arval. DeTeFleetServices offers fleet solutions to other companies forming part of the Deutsche Telecom group. The agreement with Arval means that it will also be able to offer these services to Deutsche Telecom affiliate companies outside of Germany. The operational element of the agreement will in particular call upon the ‘Arval Analytics’ tool. Commenting on the move, Wolfgang Kocybik, DeTeFleetServices Managing Director, said: “In cooperation with Arval we can extend our range of services to international markets and offer our customers a complete package with attractive mobility rates”.

The agreement is already operational in Slovakia, with Deutsche Telecom’s partner Slovak Telecom and its fleet of 1,300 vehicles.

Danfoss appoints LeasePlan as global partner

Center Parcs takes Renault Kangoo Z.E. models

Danfoss, a company specialized in energy-efficient solutions, has selected LeasePlan to manage their fleet of approximately 1,500 vehicles in 27 countries. Danfoss employs more than 17,000 people globally and has a presence in 53 countries.

The key fleet objectives of Danfoss are centred around a reduction in CO2 emissions keeping in line with their CSR and brand policy. A further objective is that of ultimate transparency in their supplier relations and it is for this reason that Danfoss chose to consolidate their fleet management suppliers into a sole supplier relationship with LeasePlan.

Renault has signed its largest single contract to date to deliver electric Kangoo light vans in the UK. This involves 22 models of the ‘Kangoo Maxi .E.’ version to holiday park company Center Parcs. The vehicles replace the current fleet of electric vehicles, and will form part of a fleet of 150 vehicles operated in Center Parcs’ four UK locations. They will be used for internal operations including delivering pre-ordered meals to guests. Center Parcs is also set to add Honda Insight hybrids to its range. Center Parcs mandates its fleet management to CLM, which has been advising it since 2007.

Thomas Linneberg, Senior Director Group Global Procurement, Danfoss A/S (left) and Jose Luis Criado, Managing Director LeasePlan International (right)

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Corrado Simontacchi (Hunstman)

Peter Van Hoeck (Carestream Healthcare)

Sector of activity: Chemicals

Sector of activity: Healthcare imaging

Fleet Manager: Corrado Simontacchi

Fleet Manager: Peter Van Hoeck

Job title: Managing, Purchasing Goods and Services

Job title: Travel & Fleet Manager

Countries under responsibility: EMEA

Countries in account: EMEA

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MANAGEMENT I Cross-interview

Taking care of the internal fleet customer The Fleet Europe Cross-interviews we instigated a short time ago have proved to be extremely enlightening for all fleet managers, not the least of whom are the two people taking part in the interview. They each listen attentively to the other’s answers, and their questions to each other are driven by a genuine desire for knowledge. This time, Peter Van Hoeck of Carestream Health and Corrado Simontacchi of Huntsman occupied our hot seats.

Gentlemen, what is the balance in your fleet management between centralised and decentralised elements?

Corrado Simontacchi: The actual split is around 40% centralised and 60% decentralised. We have a basic principle which we apply everywhere, but of course because of different market dynamics and requirements we have to allow for local elements in the travel policy relevant to a specific country. There are no major differences when it comes to the basic principle, but some relatively minor differences in other areas. Where car models are concerned, we do not have harmonisation in the basic principle, and this is largely because our cars are not job-related, but mostly benefit cars. In most of our countries with the exception of the head office in Belgium, we may only have ten, twenty or thirty cars, so there is no particular benefit to us in trying to standardise models or brands. We don’t have local fleet managers in the countries, although there are people at the different sites who look after day to day matters.”

Peter Van Hoeck: “I cannot yet put a figure on our centralisation as Corrado has, but we are in the middle of a project to make our fleet policy more

centralised than it is at the moment.

We are trying to centralise the strategy about who gets what, whether employees are allowed to upgrade by paying extra themselves… We are working on this by comparing car policies from country to country and we will get there. In terms of brands however, we are very centralised and harmonised as we have

Of course we look closely at our costs.

Who isn’t today?

mostly ‘need’ cars, and we have just two brands for the whole of Europe.

There are some exceptions though – for instance in the Nordic countries you can’t really exclude Volvo and in France you need a French brand. For management cars we only allow the same two brands plus two others and that’s it. The actual models are decided locally, largely according to the manufacturers’ different strategies in different countries. I am the fleet manager for all 17 countries

in which we have fleets, and in the eight countries where we find 90% of our fleet, we work with external fleet management companies.”

How do you control your main fleet and lease suppliers?

C.S.: “In terms of a commercial and financial point of view, we have data which we can use. From a service point of view, we have KPI’s as part of the agreement with our suppliers and these allow us to keep the fleet under control. But at the end of the day, when it comes to best practice on the service side, I would simply say – ‘just listen to your internal customers’. This is the best KPI of all.”

P. Van H.: “Although we work with external fleet management companies, in our case they only come into the operational side of things – renewals, managing the cars on the road, answering questions from drivers and so on. Strategically, we (myself and a colleague in Italy) maintain the relationship with all suppliers, making and renewing agreements etc. Our local fleet managers interact on a daily basis with lease suppliers and feed back any quality issues to us, although they try and solve service issues themselves.”

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MANAGEMENT I Cross interview

What would Corrado Simontacchi like to know about Peter Van Hoeck’s fleet management?

“First of all, define who you need in your team to move forwards.”

Peter, who owns your fleet policy?

Well as the European fleet manager it is not actually me. One of the factors which affects this is that each of our different countries is responsible for its own P&L. On top of this, we have several divisions, so when making a drastic change to the car policy and strategy, there are a lot of people who need to be involved. So ownership is not an easy one at the moment, it is virtually on a country by country basis.”

What are the main challenges within the fleet management domain at the moment?

The main challenge involves the large European project I have mentioned, and to get a clear overview of fleet costs. We are looking at fleet costs on a month by month basis. Again, using external fleet management companies is helping here, because they have high performance systems and good reporting.”

Do you think the shift towards mobility management is a reality or a myth?

We use savings generated from our car policy innovations to fund new activities, so they are self-financing and are do not require additional budget. Whilst we retain our focus on cost, we continue to track ongoing fleet innovation and the evolution within the market place.”

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What would Peter Van Hoeck like to know about Corrado Simontacchi’s fleet management?

“If your company has a strong ‘mandate’ culture, just mandate it – job done! If it doesn’t, go down the ‘glocal’ route – central policy with local needs accounted for.”

Firstly Corrado, have you tried electric and hybrid cars in your fleet?

We are now considering hybrids and other technologies as part of our move towards a greener fleet. One of the basic principles in our policy is TCO. As I said, most of our cars are not ‘need’ cars, but benefit cars. This is why we have always tended to work on the basis of budgets, originally based on the monthly lease price. But this did not provide full visibility and control, which is why we moved to TCO. So if hybrid and electric cars can fit in to our TCO approach, and provided they do not have penalising limitations in terms of range, autonomy etc. then the answer is ‘yes, why not’! As things stand at the moment, we have a bit of an issue to see how they can fit into our TCO-based budget.

For example, in most countries when it comes to tax and fuel consumption, there is a positive impact, but when it comes to the monthly lease cost, these cars do not yet fit in to the budget.”

How do you manage the cost side of your fleet?

This was originally a challenge, but with the 40% of our fleet management which is now centralised, we have a very good insight into the actual costs of our fleet. It works very simply: all invoices which are car related are collected and posted into a system.

This provides us with the information we need in order to drill down to the lowest level.

So if for example there is an invoice for a specific piece of necessary maintenance, this will be posted and will link to a specific car, driver, cost centre, so we have all the data we need to look at costs. We can also see the trends in ongoing routine costs against extraordinary costs, for example. If you want to manage the fleet differently from before, you need this kind of information to provide you with a base line, an overview of how the costs are today. Then you can make your own evaluations on how to move forwards. Of course there are also systems from the fleet management companies for this.”

Are you under pressure to drive down costs, and if so, how do you do it?

Isn’t everybody? We look very carefully at all costs. One of the issues we have here is that most of our cars are benefit cars, and thus part of the compensation package.

So we have to be very careful about playing around with any part of this compensation package. There is no point in saving money in one place if you simply have to spend it somewhere else. There is a fine balance here, we have to keep our personnel motivated of course.”

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MANAGEMENT I Cross interview

What sort of accident management policy do you have in place?

C.S.: “The policy sets out guidelines both in terms of what drivers need to do, and what the company and service providers need to do. This framework is provided to the driver.

We use third party suppliers because like everything in this world, accident management is becoming more complex, and you need professional expertise, knowledge and tools, otherwise what you try and do yourself is unlikely to be optimal, and so we rely more and more on external expertise. We do not have a lot of accidents in Huntsman, and this is because safety is a top priority for us. We have many initiatives for safety in various areas, not just company cars. We conduct safety driving courses as part of these initiatives.

People driving company cars are required to go on safety driving courses from time to time, depending on their function, the mileage they drive etc.”

P. Van H.: “There are two aspects to this for Carestream Health: firstly, what are your rules in the domain of accidents and secondly, how do you handle accidents when they happen? The rules are currently in the process of being harmonised as part of our policy centralisation, as they differ from country to country at the moment – some have them, some don’t. We are also looking at the legal aspect, because there are some things you can do in one country but not in another. We normally handle accidents via an agreement with the leasing company, and the way it works depends on whether we have our insurance with the leasing company, or whether it is separate, as tends to be the case with the larger countries. Even in these cases, the leasing companies usually prefer to handle accident management. In the UK – probably the most mature market – there is a separate company taking care of accident management.”

“There is no point in saving money in one place if you simply have to spend it somewhere else.” Corrado Simontacchi

“The actual car models are decided locally, largely according to the manufacturers’ different strategies in different countries.”

Peter Van Hoeck

What degree of green technology have you introduced into your fleet?

C.S.:“We are increasingly looking at a green approach, starting by looking at CO2 emissions and reducing these. Timing can be quite a challenge in this domain, because our drivers are generally entitled to drive a car for four or even five years – so we have to wait for the replacement cycle before we can deploy the new technology available on the market. So it is taking a little bit of time to reach the objectives we would like.”

P. Van H.: “We also have a green approach, but not with electric or hybrid cars. When the first CO2 taxation regimes began to come into being around four years ago, we decided to ‘green’ the fleet as quickly as possible – which I expected would take a couple of years. But to my astonishment, our fleet manager in one of the larger countries to adopt the taxation approach –France – said he wanted to go for it immediately. And he did. Our harmonisation policy means we are moving in the same direction in other countries – though it’s easier in some than in others. It is helpful, in terms of making the fleets greener, that when you lower CO2 emissions you also lower fuel consumption and therefore bring down costs.”

Tim Harrup Photographer: Arnaud Siquet

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MANAGEMENT I IFMI Expert Session 2012 IFMI 2012 PROGRAM v3_Mise en page 1 10/08/12 11:27 Page1

The Fleet TO DO List to get through the next crisis

PROGRAM EXPERT SESSION

SAVE THE DATE: NOVEMBER 21st 2012 Focus on global fleet management A 1-day Expert Training Session – Exclusively for fleet managers and fleet executives The participants of the IFMI Epxpert Session shared best practices on policy harmonization, supplier choice, fuel saving possibilities, driver motivation and mobility management, in order to create a practical “Fleet To Do List to Tuesday, November 20th 2012 get through a crisis”.

19:00 - Welcome Dinner at the Hotel Martinez in Cannes (South of France) - Opening of the Session - Introduction to the IFMI, presentation of the expert speakers, introduction the participants objectives session. to look at fuel savings, to optimise 2 ger focus and on CO At the beginning of June, just aof day -driven of carthe policies

supplier choice, to be creative with after Moody’s cut the credit rating and low emission vehicles, and an fiscal stimuli and to influence driver of several banks in Germany, 15 openness for solutionsstin terms of Wednesday, November 21 2012 behaviour. But of course all this has Brazil international fleet managers took financing, mobility management and in line with the strategy of the part in the IFMI Expert 09:00 Session in supplier relations.

Canada - Global Fleet Management – To go global or not to to gostay global China company and strategy with theand objectives of Brussels on ‘How to Manage your Identifying the reasons, set objectives in line with the company’s India your fleet management. This was Fleet in Crisis Mode’. After a internal full Remember your objectives organisation.

Mexico 09:30 - Global Files – The regional Management by two case studies: day of expertise, presentations and Fleet Fleet suppliers have approach seen a of de-Fleet demonstrated Russia Expert speakers will cover 8 countries, fleet managersproviding Anya Kiss from Novo workshops, the participants drew crease with in theextensive residual experience values of their Turk Mexico, Russia, Turkey, USA, comprehensive information on Brazil, Canada, China, India, Nordisk and Fabrice Rols from Pfizup the ‘Fleet To Do List’ to be preassets and it has become more difUS stimulating valuable comparisons and quality exchange of best practices. er showed how two different compared for the next economic crisis. ficult to fund fleet cars at an inter12:00 - Company car taxation panies with a different strategy and esting rate. As a result some cash A global taxation review presented by PWC, diving into the key taxation differences and trends a different fleet management policy Since the end of 2008 our world has rich companies examined the posbetween Europe and the Rest of the World, ending with key lessons to learn from. have successfully managed their been impacted by a financial and sibility of self-funding.

At the same 13:45 - Case Study & workshop 1 – Internal processes themandate, crisis. what kind organization economic crisis. The crisis has The alsofocustime globalisation continued and how through to get the of case study and workshop 1 will be on fleet closing processes workshoptosessions, influenced the international fleet business opportunities were by sought to implement (global/regional/country country),During which internal consider, how to participants shared the reporting management strategy of many comoutside Europeobjectives, and the US. Flexibilglobally share common how to put yourthe plan into actionbundled withoutand forgetting aspects. their experiences and best practices panies: reorganisation has ledand tocontrol ity in management, this is called. Ac15:30 - Case Study & workshop 2 – Marketat&the Suppliers to create a practical “Fleet To Do a surplus of vehicles, cost savings cording to the speakers IFMI Case and workshop 2 will addressand elements such to collectarelevant List as to how get through crisis”. market Some information, have led to travel restrictions and a study Expert Session this flexibility the decide for the optimal financial method, organize an RFI, how to tender, what to to whom considerations may be valid foroutsource your cut in employee benefits and a more ability to react quickly are recomand finally how to organize global reporting. fleet management operations, othtactical procurement strategy has mended to ensure successful fleet 17:00 - Global fleet management from a manufacturer perspective ers may not, but the purpose of this stimulated multi-bidding17:30 and multimanagement when in a crisis.

Other - Additional questions to the experts and closing remarks list is to help you check which measupply. Other consequences have do’s are to make slight adjustments 19:30 - Sponsored dinner by Toyota & Lexus sures could work for your fleet. ■ been the extensions of lease conin your policies and go step by step, Registration tracts, certain order stops, a stronto ensure the continuity of mobility, Steven Schoefs Organiser

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The Fleet TO DO List TCO & Cost Control • Order stop/deferral of renewals • Redundancies after reorganisations: examine the reassignment of idle vehicles • Pool management • Employee car sharing • General contract extensions – term & mileage extensions • Selective contract extensions: perk cars, low mileage 180.000 km and 5 years (absolute max) • Modify car policy (term and mileage decided by company) • Early termination for TCO reasons (depreciation cost, tax) • Funding: cash rich companies consider outright purchase/self-funding (increased lease costs) • Creative use of fiscal stimulus • Review fleet processes (internal) • Taxes: include taxes in your TCO for correct TCO calculation between cars, between cars and other mobility means

on the

www Everything that moves your fleet

Policy • HR policy adaptation (eligibility/ allocation, right-sizing, down-sizing) • Use reference car instead of cost of car in car policy • Review eligibility for cars • Car policy optimisation (eligibility & allocation) • Monitor compliance • React rapidly: decision making process, policy change • Internal fleet structure: flexibility & speed needed • Change management: easier in a crisis period • Lean car policy lean (increased deductibles for employees – charge for first accident, downsizing Driver motivation & responsibility • Direct driver engagement • Influence driver behaviour: key for cost savings on fuel, insurance and safety • Driver management: sharing actual costs with drivers (fuel,…)

• ‘There must be something in it for both company and drivers, to motivate them’ Fuel & CO2 • Look at fuel cost – a vital area • Right-size the fleet within the framework of CO2 related car taxes • Accelerate focus on CO2 policies (cost-saving, fleet harmonisation, environment, fuel type) • CO2 threshold – green targets & cost savings • Fuel saving programs Procurement • Procurement: multi-supply, multi-bidding & creative custom fit solutions • Central purchase with multi-supply focus accelerated by the crisis • Supplier footprint: consider supplier continuity and sustainability • Funding diversity, supplier diversity • Business needs versus procurement needs • Insurance: possibility to unbundle and self-insure with a correct driver management programme

m.fleeteurope.com

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Linkedin.com/fleeteurope

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BUSINESS I News Toyota and PSA in van agreement

The LCV collaboration between PSA Peugeot Citroën and Toyota will start with vans derived from the Peugeot Expert and the Citroën Jumpy and sold under the Toyota name.

PSA Peugeot Citroën and Toyota are to cooperate in providing LCVs for the European market. Under the agreement, PSA Peugeot Citroën will initially supply Toyota with medium sized LCVs to be sold under the Toyota name.

The first focus, starting in the second quarter of 2013, will be on vans derived from the Peugeot Expert and the Citroën Jumpy. There will be further collaboration on a new generation of vehicles, for which Toyota will participate in development and industrial investment costs. There are no plans for the two companies to take stakes in each other’s capital, or for joint production plants. The collaboration is expected to last beyond 2020. It is not the first time that both car manufacturers work together. Toyota and PSA Peugeot Citroën currently have a joint-venture partnership in the small car segment.

Nissan has unveiled the new London taxi Nissan has revealed the latest version of the iconic London taxi (‘black cab’), the NV200 1.5 dCi. It conforms to the requirements of Transport for London (TfL), including where the exceptionally small turning circle is concerned – 7.6 metres. The new cab has the support of London mayor Boris Johnson and of the association of cab drivers. It has also been welcomed by handicapped persons’ associations. The 1.5 dCi engine produces 89 bhp, and will substantially reduce both fuel consumption and CO2 emissions compared to the previous models. The famous Austin taxi was already equipped with a Nissan engine, but of 2.7 litres. Remaining with the environment, tests are also to start next year with the electric version of the NV200.

The latest Nissan version of the iconic London taxi will later on also be tested in electric version.

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Arval projects 32% growth in Romania Arval is one of the largest operational leasing companies in Romania. At the end of 2011, Arval Romania had 260 partners, 30% more than in 2010. The company is expecting to grow even further. After announcing a turnover of € 23,2 million for 2011 - an increase by 9,5% over 2010 the company is expecting growth for 2012 to reach 32%.

The company currently has 4.300 vehicles in portfolio, but is aiming at 5,000 by year’s end.

Contract periods extending Data released by Ogilvie Fleet shows that in the UK, fleets are tending to respond to the difficult economic climate by extending their lease contract periods. This is being seen both in an extension to existing contracts, and in new contracts being signed for longer periods.

Across the whole of the fleet managed by Ogilvie for its clients (over 10,000 vehicles), the company has thus calculated that the average contract length has moved from 38 to 40 and then 41 months over the past three years. Ogilvie Marketing Director Nick Hardy spoke of his company’s attitude to allowing cars to remain under contract for longer periods: “We have no issue with lease extension as long as cars are in good condition and will have less than about 100,000 miles on the clock at defleet. Not all leasing companies implement a rental rate reduction when contracts are extended so Ogilvie’s flexibility in agreeing to do so is welcomed by existing clients as well as new ones.”

New tool from LeasePlan Luxembourg

The new version of LeasePlan Luxembourg’s ‘FleetReporting’ tool is also available on tablets and smartphones.

LeasePlan Luxembourg has launched a new version of its ‘FleetReporting’ tool. This has a new look and expanded functionalities, with a higher degree of compatibility. Explaining how the new tool will help fleet managers, LeasePlan eBusiness specialist Julien Vagner said: “The objective was to facilitate access, configuration and flexibility.

Many fleet managers were contacting their LeasePlan advisor to request individualised reporting. Now they can do it themselves without any intervention on our part.” The tool is now also available for use not just on PC and Mac, but on smartphones and tablets too.

Mercedes-Benz and BMW heading for a record year Mercedes-Benz has reported a sales increase of 5.5% for the first seven months of 2012 compared to the same period last year. The brand delivered just over 750,000 cars worldwide, including 97,000 in July alone. While acknowledging the difficult market conditions, especially in Southern Europe, Mercedes-Benz believes that this good performance will lead to a record year in terms of sales. Record sales have indeed been achieved in a number of regions of the world so far this year.

German premium is doing well in The NAFTA region (North and parts of 2012 : Mercedes-Benz and BMW Central America) was up, with Mexico are reporting very promising faring particularly well (+ 26%). Russia sales figures. recorded growth of a quarter and sales in China reached new record levels (+6.7% to 113,500 units YTD). The arrival of the new A-Class is expected to further boost sales, and the model has already received orders totaling 40,000. Also BMW Group has reported surging sales since the beginning of this year. Record sales for a first half were followed by 135,500 units sold in July, more than 4% up on the previous year), bringing total sales for the first seven months to more than a million units worldwide. Sales for the 7 month period sales grew by 25% in China, to 274,000. European sales remained almost the same as for 2011, at a fraction under 500,000. The Americas saw a 7 month increase of 8% to 228,000 vehicles. Some 85% of BMW Group sales are made with the BMW brand itself, the other brands being MINI and Rolls Royce. Sales of the latest BMW 3-Series touring, to be launched during September, are expected to further boost sales.

New mobility app from TomTom TomTom Business Solutions has taken an initiative in Belgium, along with its software partner LeanMen. This will see the production of sophisticated mobility reports in line with the country’s legislation. Users of the ‘Webfleet’ solution will thus be able to improve productivity and functioning while reducing costs.

The two modules – ‘Mobilty’ and ‘Payroll’ – involved in this new application deal with the organisation and justification of mileage allowance claims by drivers. The Webfleet system itself provides fleet managers with permanent information about the operation of vehicles on the road, proposes maintenance visits and allows communication with drivers.

Peugeot 301 designed to be robust Peugeot 301 will be the first model to be unveiled under the new model naming strategy of the brand. It is initially destined for certain markets where driving conditions are difficult and where interior space is a major requirement. 301 is a traditional sedan in conception, and fits between the 307 and 407 in size. With new 301, Peugeot engineers have put the emphasis on a robust build quality, and on a vehicle able to hold the road even when this is not of the smooth tarmac type found in Europe. There is a high degree of screw fixing to enhance solidity and highly water-tight joints to prevent damage from humidity or dust. The 301 will be marketed in Turkey in November, followed by Russia and the Ukraine, North Africa, the Middle East, Latin America and China.

3 questions to

Frank Braband Senior Manager International Fleet & Used Sales Operations Mercedes-Benz Vans

1. How important is the LCV Business for Mercedes-Benz?

“Mercedes-Benz Vans is one of the central pillars of Daimler’s strategy to act as a full line supplier to its customers. Last year we grew our sales volume by 18% – more than 264,000 Sprinter and Vito vans were sold under the Mercedes-Benz and Freightliner brands worldwide. Our target is to sell 400,000 vans worldwide in 2015. Within our sales approach ‘fleet’ is one of our most important customer segments. Our van network has more than 4,000 locations across the world.”

2. How important is the launch of the new Citan?

“With the new CITAN Mercedes-Benz enlarges its presence in a fast growing LCV segment where we were not present before.

We are focussing on commercial customers: With a planned annual sales volume of 40,000 units we are targetting a market share of approximately 5% in Europe. With the Citan, for the first time we can reach customers with a full range van fleet and who are looking for a single supplier solution.”

3. Can Mercedes-Benz act internationally when it comes to LCV fleet agreements?

“Yes. Our strategy is to provide solutions that best fit the various customer needs. Our dedicated van dealerships and workshops are therefore the backbone of all operations – national and international. To fulfil the needs of international operating companies that procure centrally, we established our international fleet sales team more than 10 years ago. Our team of fleet experts covers all aspects of fleet management: key-account, after-sales, used vehicles and financial services. Currently the department handles approximately 50 international strategic accounts worldwide”.

Steven Schoefs ■

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BUSINESS I Athlon Car Lease International

Moving forward Richard Sikkel is Senior Vice President Commerce and Sarah Lomas is Vice President International Sales & Account Management, at Athlon Car Lease International. This dynamic tandem wants to move Athlon, under the supervision of CEO Hans Blink, forward as an international fleet & mobility service provider.

Mobility, car sharing, international development, client requirements and electric cars… Athlon has taken all of these into account as it strives to move up the ladder in Europe and elsewhere.

How is Athlon Car Lease doing today?

Sarah Lomas: We launched Athlon Car Lease International at the end of 2010 and determined a growth plan for the next three years, based on the development of our core proposition to the market, revisiting our partnership model and really looking at how we could support the ambition to grow into the top 3. 2011 was the best year in terms of new business acquisition and we also retained 100% of existing customers. We established a growth plan that is built on our market leadership but also on the knowledge that we have to handle that growth. So our shareholder De Lage Landen invested in people, in technology and systems, in our footprint and in our proposition.

R. Sikkel: If Athlon Car Lease wants to go to a new country, it is likely that De Lage Landen is present there, as they have a presence in 35 European countries. This makes the start-up of the car lease activity easier and can be done at a relatively low cost. We call such a move a blue field operation as De Lage Landen is already there and there is an infrastructure available. As De Lage Landen is also present outside Europe, it is feasible that Athlon will make a move to those countries, Australia, Brazil, Mexico.

S. Lomas: But it can also be through a partnership. For example in Russia we are working with a partner who knows the market and that gives us a solution to serve our international clients, while avoiding learning costs ourselves.

Sarah Lomas: Vice President International Sales & Account Management, at Athlon Car Lease International

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You have recently opened an activity Richard Sikkel: Senior Vice President in Sweden, what’s Commerce, at Athlon Car Lease next?

International Richard Sikkel: We will become present in all 4 Nordic countries with our own activity in 2013. Along with this we are focusing on completing the blank spots in Europe later on, and after that we will move to the regions in the rest of the world that are important for our customers and for our activity.

S. Lomas: We are working in two phases. And we have to earn the right to move to the second phase, outside Europe, by succeeding the business in Europe. To complete the expansion in Europe we have appointed an International Development Manager who has to complete the set-up in our new European countries, in line with the values and strategy of Athlon Car Lease.

You refer to yourselves as a mobility provider and not a car lease provider. How do you see this mobility evolution in terms for your activity?

R. Sikkel: I expect that cars and the way we are operating cars will always exist but become part of a wider mobility service solution. We think that the integration of new mobility solutions should go a little faster than it is today, but you can’t develop or accelerate the market on your own, and the economic climate probably has a role in this.

S. Lomas: There are three areas with regards to mobility management that are important to us: cost, choice and responsibility. Everything that we develop will be around those three areas. Everybody talks about mobility, but it

is so new that there is fear and people don’t want to be the first. Today a Mobility Budget is a strange concept, but in twenty years from now this will be the only thing there is, as mobility as a concept will be the first preoccupation of the new generation of people in their private and working life.

Today a Mobility Budget is a strange concept, but in twenty years from now this will be the only thing there is Looking into the different new Athlon mobility projects, we see electric vehicles with Tesla, you launched a car sharing program and you have flex offices. Can you comment on your objectives with these 3 initiatives?

R. Sikkel: Electric vehicles are not new and they will become useful but not for everybody. About 90% of the people could use an electric vehicle if you look at their daily movements. Tesla has proven that the autonomy problem can be solved. The signals are there that the electric car can become a real option in the mobility offer for business drivers.

Looking at the business model, we would like to lease the electric car and the battery as a whole – we think that taking car and battery as one piece of technology is the only valuable business model for electric cars in the future.

S. Lomas: We learn from Tesla and from the electric vehicle and they learn from us in terms of service, B2B-requirements and financing services. We have ordered 150 Tesla S cars because we believe in the concept and are confident in our strategy.

What about car-sharing?

R. Sikkel: “Well, you have long term rental or car leasing, you have short term rental and you have ultra short rental.

This last form fits into the car-sharing concept. We know we use our cars less than 10% of the time, so the occupancy ratio is too low. With car-sharing you can resolve this. We see that there can be a combination of private use and corporate use as the use patterns are complementary –privately you use a car in the morning, the evening and the weekend, and for business you use it during the day. For car-sharing we are looking at the market as a whole and we want to create a platform where the occupancy ratio of the cars is optimised, no matter if it’s used by a corporate during the day and a private user in the weekend. It can even be the same person using the car for business and privately. ■

Business I News GM launches worldwide fleet site GM has launched a new website to further enhance its worldwide fleet offering. The intention is to consolidate the entire fleet process, taking in such elements as local service, guarantees and www.gmfleet.com/global-fleet.html parts. With fleet customers around the globe, GM believes that the new site will lead to a more streamlined process through offering a centralised point of entry. Visitors will also find information on vehicles, news from the company, and sales support. As the site includes all of GM’s brands, visitors can also filter their search requirements by brand, category or speciality.

Prius tops new ADAC Eco-test ratings The Toyota Prius, the car which led the hybrid revolution, has become the first car to receive the five star maximum rating in Germany’s more stringent ADAC Eco-Test. This maximum score means that the Prius came out ahead of 55 other models. The Prius received 40 points for the 4.58 litres per 100 km it achieved during the test (62 mpg). It received a maximum score of 50 points for the low emissions level. The main changes introduced this year to the ADAC Eco-test involve ‘well-to-wheel’ ecological values, and the fact that the air conditioning is turned on during the test, reflecting real car use. The projected new world cycle to measure fuel consumption is also taken into account. Toyota has now sold a total of 4 million hybrids across the world, other models having joined the Prius in offering this type of propulsion.

ALD sells 100,000th used car via website ALD Automotive has announced that it has just sold its 100,000th used vehicle through its internet remarketing channel. This milestone has come just two and a half years after the launch of the channel, which is now available in 19 markets. The company has also said that it is gradually introducing this site to all 37 subsidiaries, and that by 2015 up to 90% of all end of contract vehicles are expected to be disposed of in this way.

Steven Schoefs

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BUSINESS I Donlen Corporation

Technology key for further development FleetWeb®, Donlen’s customer facing fleet management platform. Corporate fleet managers can go into our FleetWeb system and select from a potential pool of 300,000 low-mileage, pre-driven Hertz rental vehicles to add to their existing Donlen lease at a lower cost and shorter lease period. It’s a great alternative to traditional, longer term leasing for fleets, and not offered by any other fleet management company.

Barry Steel: “Globalising our FleetWeb platform is clearly the next great opportunity for Donlen. Creating a truly global solution for corporations is one of our primary visions. Donlen is the leader in technology solutions in North America, and we are excited to do the same for the rest of the world! Our goal is to be the best fleet management company in the world.”

Donlen Corporation, a 47-year-old company, was acquired by Hertz Corporation one year ago. This acquisition clearly opens new opportunities for the US fleet management company. We met Barry Steel, Senior Vice President Global and Strategic Accounts.

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“Donlen has been in the leasing business for 47 years and Hertz Corporation has made its desire clear from the first day that we would maintain our independence in the fleet leasing world and remain a separate corporation with our own culture and dynamic IT-centric strategy,” explains Barry Steel.

selling to clients, we maintain our focus on our traditional value proposition. Donlen has maintained an extremely aggressive growth curve, driven by technology. We lease and manage more than 150,000 vehicles across the US, Canada, and Mexico, and have posted consistent growth in pre-tax income since 2000.

What has been the impact of this takeover for Donlen?

Barry Steel: The acquisition gives us access to more corporate relationships by leveraging the contacts of the 400-strong sales force of Hertz.

We complement the product offerings of Hertz, as they focus on short-term rental of vehicles and equipment, and we provide long term financing and services for cars, trucks, and also equipment. Thus, even without cross

What is your main focus?

B. Steel: “Primarily we focus on the mid market fleets (100 – 1000 vehicles). Thanks to our technology platform, we are successful with larger fleets as well. We have the knowledge and the tools to support fleets of all sizes. We just launched a new product called Hertz Value Lease™. This new category of product gives our customers access to buy or lease vehicles from the Hertz rental fleet from within

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Donlen’s reach extends beyond the borders of the US thanks to partnerships.

B. Steel: In addition to our North American operations, we offer fleet solutions in more than 20 countries through partnerships in two key markets: in the United Kingdom with LEX Autolease and Europe with Athlon International. Like Donlen, these partners focus on customer service and innovation, so they make a perfect match. We are also just launched a new reporting platform called Donlen Asset Manager™, which can support centralized reporting on any asset type for an unlimited number of countries. It also runs on the FleetWeb web platform. This is an important tool for international companies to centralize reporting for their various countries and leasing partners. Hertz has rental operations in more than 150 countries which gives us a extensive reach into new markets and new products. In addition, our partnership with Athlon International gives us a world-class solution for our US based fleet companies. It is a very exciting time to be at Donlen as we continue to expand and create new solutions with our business partners. ■ Caroline Thonnon

BUSINESS I Opel

Adapting to fleet needs Ian Hucker, Director European Fleet & Remarketing Opel/ Vauxhall, has seen challenging times both for the fleet market in general, and for his company in particular. He tells us how Opel/Vauxhall is facing up to today’s fleet needs.

How is the fleet business faring at Opel/Vauxhall at the moment?

Ian Hucker: “The fleet business is going very well and we can build on the success we have seen over the past few years. We have a product-led revolution starting with the launch of the Insignia in 2009. Everything since then has been a success, with multiple awards and this has of course a positive impact on sales business. There is again an active pull from fleet clients to have our products in their fleet. From that perspective we continue to grow from strength to strength.

Ian Hucker: “There is clearly a restriction of the overall market in Western Europe”

tendency to offer cash for cars in some markets, but that trend is reversing at the moment because organizations want to have control and offer fleet cars that meet CSR obligations.

How does Opel/Vauxhall respond to fleet management trends like CO2-emissions, taxation optimization, cost control in terms of TCO? I. Hucker: CO2 might be a general element in international fleet management, but there are as many CO2-regulations and taxation schemes as there are countries in Europe.

But there’s one paradigm that works throughout our European and international business, and that is: lower is better. So, we are looking to optimize our fuel consumption and our CO2-emission levels, our maintenance and repair costs, the price of the car,… and when you do that you can guarantee a competitive TCO.

Can you see a downsizing/ How important is that LCV downgrading in selected market for Opel/Vauxhall? fleet cars at the moment?

I. Hucker: Extremely imporI. Hucker: You cannot genertant. If you look at the relative alize here as it depends on ranking in automotive indusThe Adam is Opel/Vauxhall’s challenger in the the markets and on the fleet try, we are in third position competitive city car market. policy of the customer. With so far this year for passenuser-chooser type of clients ger cars, but lower for LCVs. there is still a willingness to go for the biggest and nicest There is an opportunity to grow our presence in the LCV looking car. There the possible shift is much more towards a market. The Vivaro has been a perfect product to do so. We different type of car in a similar category that is adapted to also have an all new Combo, based on the Doblo platform the new family situation or the private life of the driver, from but an Opel design and this product is very promising.

Insignia to Zafira Tourer etc.

What are you going to present on the Opel/Vauxhall stand Do you believe that the European car market has reached at the Motor Show in Paris and the LCV Motor Show in Haa certain saturation point and if so how will that impact nover? your fleet business?

I. Hucker: In Paris we will show our new ADAM. It will seI. Hucker: There is clearly a restriction of the overall market duce young and old and it opens a new, fresh fleet clients in Western Europe, but Eastern Europe and Russia continue segment for us. There is the revamped Astra range includto grow. But even within this context, fleet remains reasoning the all-new sedan that we just have presented in Mosably robust. There are various factors that impact the fleet cow. And in Hanover we will show our complete range of business and when one element is leading to a decrease, vans and the possibilities to transform those vehicles so another can just do the opposite. A while ago there was this that they are fit to do the job they have to do. ■ Steven Schoefs

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BUSINESS I HPI Fleet & Mobility

Data consolidation key HPI Fleet & Mobility has been growing rapidly since its launch. Just five years ago HPI Fleet was a dedicated fleet management organisation with 13 employees. In 2009 Aral Fleet Management was acquired and now, following international expansion, HPI Fleet & Mobility has a total workforce of 180 people, manages 65,000 vehicles internationally, and is looking at new mobility management solutions.

Tell us what added value you bring to company fleets.

Steffen Giebler, CEO: “We are creating transparency for the client and to the market.

What we are doing is basically no different than what the procurement division of a client’s company would do, except that the client has chosen to outsource that part. Our independence from manufacturers and leasing companies brings an important advantage though: we level the volatility of the market and we manage and reduce the complexity for our clients.”

How do you operate in terms of international fleet management?

S. Giebler: “We continue to develop our product portfolio and assist existing clients to benefit from our range of products and services.

Also we guide our existing clients in countries other than those in which we help them now.

In the traditional fleet management domain we see that the clients have a need for data transparency, also from those countries where they are active but where we are not necessarily organising operational fleet management for them. As the client wants to have a complete view on his fleet data for every country,

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we have developed a data collection product that is not based on us doing the local fleet management but that starts where the normal operational fleet management stops.”

a professional procurement company by nature and we have adapted this to the fleet management market.

It’s strategic fleet management on behalf of the client.”

Why did you move away from just traditional fleet management?

S. Giebler: “Operational fleet management has become a commodity and the client has quite a lot of choice in terms of supply as there are local players, international ones, specialised fleet management companies and other suppliers also offering related services.

How important is IT as part of your operations?

S. Giebler: “Yes, two years ago when we started our expansion in Europe, we opted for one central IT system. So we have only one set of data description for all countries and we can provide our clients 24 hour access to our online data reporting.

Having only recently invested in IT,

80% of fleet management can be automated, 20% will always be added value But what everyone will need is a consolidation of all necessary fleet data in one efficient platform. We believe that this can be a strategic business for us, as we have the capability of collecting a transparent and complete data overview that is the right base to start supplier negotiations. HPI stands for Hoechst Procurement International, so we are

we have a state of the art IT system.

Our IT system pictures the complete life cycle of the car: from supply selection, to the management of leased and purchased cars until the management of the entire remarketing process. So we offer freedom of choice for the client and whatever his choice is, we can deal with it.”

BUSINESS I Sofico Tip for international fleet managers Steffen Giebler : “Dare to ask your company how they want to structure the financing of the car fleet. Don’t take the company tradition in terms of purchasing or leasing for granted. Then have a look at the TCO model, see where you want to put your focus on and where there can be opportunities. A lot of companies don’t go for the possible opportunities enough, but they are out there, always.”

Is everything you do automated?

S. Giebler: “Not everything. If you look at the fleet management process today there should be 80% of it automated and that is the basis.

We are in the process of setting up complete automation of that 80%.

There is 20% where there is a clear added value from interaction with the client and by being a decisionpreparer for the client. Nobody should try to automate this proportion of the work. This 20% is always going to require more staff when our activity grows. As our structure and systems permit significant growth and as we are ambitious I forecast that we will have another 40 to 50 people over the next two years.”

Do you see a move from fleet management towards mobility management?

S. Giebler: “If you look at it from a market perspective, I think you will see an integration of fleet and travel management into mobility management. It is going to take a while before this trend will be implemented with smaller and local companies, but there are already multinationals today starting with it. In terms of operational expertise it will always be two different topics, because running a fleet and running a travel agency are different operations, but tactically and strategically they will become more integrated as the car is just one form of mobility.” ■ Steven Schoefs

Confidently on course for expansion International fleet management is totally dependent on efficient IT support. Sofico, which develops and supplies management software for car leasing companies and large car fleets, spends around 10% of its turnover on R&D each year.

Sofico’s main product is called ‘Miles’.

This is an ERP package for car leasing companies and large fleets that enables the automation of the entire administration and management processes relating to fleet vehicles. “Our philosophy is to keep Miles up to date with technological advances and market evolutions, which implies that we release at least two updates a year”, says Jan Bouckaert, Sofico’s CEO. ability to serve our customers.”

Can you tell us a bit about Miles’s next update?

Jan Bouckaert: “Miles is currently running on PowerBuilder, but this platform has some technical limitations. By early next year, we will have a new user interface developed on Google Web Toolkit. This will allow us to run the system over a browser, which will increase the system’s flexibility and ease of use.”

How is Sofico doing these days?

J. Bouckaert: “Quite well. We’re still more than able to achieve our triple target of an annual increase of 15% in sales, profits and staff. We’re also working on our geographical expansion. This year, we’ve started up in Japan and we’re actively considering doing the same in Germany, France and the US.” Why are you so keen on international expansion?

J. Bouckaert: At present, we’re mainly geared towards car leasing companies, which translates to a potential client base of around 15 companies in

“Miles, our management software, is updated twice a year, so the system will meet the latest technological and managerial requirements”, says Jan Bouckaert, CEO of Sofico. each country. As we’re looking at mature markets like Western Europe, the US and Australia, we observe that the large leasing companies are often still saddled with very old systems, which often started out as local systems, transposed to other markets as the leasing companies expanded. Many of these transplanted systems are plagued by a lack of transparency due to an excess of local autonomy.” “Despite deeply ingrained preferences, these leasing companies will have to adopt systems innovations, if only because it is not feasible that the same IT systems will hold out for another 20 years. Considering how crucial the internet has become to the economy in general and our business in particular, we can pride ourselves on the excellent positioning of our Miles system.”

What will the reporting and car fleet management of the future look like?

J. Bouckaert: “We should make better use of dashboarding and management by exception. In addition, leasing companies should bundle this management on a client by client basis in order to optimise time management and efficiency for both parties.” ■ Steven Schoefs

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BUSINESS I News Adam, the new urban car from Opel

The first Opel Adam cars will hit the European showrooms in January 2013.

Next to the well-known Meriva, Opel will welcome the new Adam to the Asegment at the Paris Motor Show (September 29 – October 14).

The Adam will combine a powerful design with potential for almost unlimited personalization. The new Opel model measures almost 3.70 meters in length (1.72 meters width excl. mirrors) and provides premium technologies from upper segments, including a new onboard infotainment system which integrates the owner’s smartphone in the car (Android and Apple

iOS) and thereby makes internet-based applications available in the cabin. The Opel Adam will initially be offered with three gasoline engines (1.2 l 51kW/70 hp, 1.4 l 64 kW/87 hp and 1.4 l 74/100 hp) combined with a five-speed manual transmission. All powertrains are available with an ecoFLEX technology pack including fuel-saving Start/ Stop technology. Later on, a new small gasoline engine will make its premiere in the Adam. This new engine will be combined with a new generation sixspeed manual transmission.

Mega-deal for Renault-Nissan with Danone The Renault-Nissan Alliance has signed a significant contract with food company Danone. The contract will see the alliance providing a range of vehicles from the Renault, Nissan, Infiniti and Dacia line-ups. They will be supplied in 25 countries and the total number of cars involved is quoted to be 25,000. Vehicles will be available in all segments

from A to E, and will include electric vehicles (the Nissan Leaf, Renault Twizy, Kangoo and Fluence). The highest volumes will be seen in the emerging markets of Mexico and Russia, and in the home country of both Renault and Danone – France.

it’s not the c a r it’s our c a re

All leasing companies supply the same cars.

Therefore it’s all about care and the quality of service. Please visit our website at www.businesslease.com.

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BUSINESS I Kia Motors Europe

A strengthened lease offering for an increased service Rapidly emerging as a player in the fleet market, Kia is now ensuring that its lease offering matches the high levels set by new models such as the cee’d and Optima. Chan Uk Jun, Manager Fleet and Remarketing at Kia Motors Europe, explains how this ‘white label’ lease offering will benefit fleets.

Using the services of established leasing companies to offer brand-specific leasing products in markets where the brand does not offer in-house leasing is an efficient way of ensuring full customer service. Kia has decided that this route is the right one for itself at this stage of its fleet evolution.

You are going to use existing leasing companies to offer the Kia leasing product. Can you explain why you have taken this decision?

Chan Uk Jun: “We established two years ago that there was a need to improve our value proposition in terms of the services we were offering to our fleet customers. We lacked a captive leasing operation that many of our competitors were successfully running and took the decision to build strategic alliances with a number of leasing companies. The objective is to strengthen Kia brand awareness amongst major fleet buyers, as well as to promote fleet financing products amongst our local sales companies and dealers.”

How will it work in practice?

C.U. Jun: “National Kia sales companies and dealers will cooperate with leading leasing companies in their markets, who will act for and on their behalf in a captive capacity. The sales tools, training and funding will be provided by our leasing partners, and they benefit from access to our dealer

network for servicing, after sales and defleeting operations. The dealers will broaden their client base in the SME segment by offering attractive lease products and they will also qualify for larger fleet deals. It is a win-win for both parties.”

What are the advantages for international fleet customers?

C.U. Jun: “Kia dealers will now be able to provide a full range of financing and related services to fleet customers, while leveraging the scale economies and industry experience of our partner leasing firms. By leaving back office functions to the lease companies, both Kia dealers and our local sales companies can focus on lead generation. Full-service leasing is an increasingly popular model for fleet customers as it minimises risk and financial uncertainty for the customer.”

Kia dealers will now be able to provide a full range of financing and related services to fleet customers Which leasing companies are involved, and in which countries?

C.U. Jun: “ALD and ARVAL are the

Chan Uk Jun, Fleet & Remarketing Manager at Kia Motors Europe, wishes to ensure a full service offering to fleet customers, and has therefore opted to introduce a ‘white label’ lease offer in Europe. selected partners in most of our markets, although we also establish alternative local partnerships where appropriate. In Kia’s eleven largest European markets, we are already operating existing or new white label partnerships. We intend to continue the roll out of this leasing model across Europe as quickly as possible.”

Do you expect your own finance company - Hyundai Capital or a Kia subsidiary of this - to take over these activities at a later date?

C.U. Jun: “Hyundai Capital has played a key supporting role as financial advisers to Kia Motors Europe during our partner selection process. Its extensive leasing experience – gained from running fully-owned captive leasing operations in Korea and the United States – has proved very valuable. We look forward to continuing to strengthen our fleet finance offerings with their support as we grow our fleet sales.” ■

Tim Harrup

Kia in Europe is growing Chan Uk Jun: “Pure fleet sales have grown by 50% in the first half of 2012, while overall Kia Motors Europe sales were increasing by 25% in the 14 markets in which we own our own sales companies. Kia is the fastest growing volume brand in Europe in 2012.”

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SCOPE I News Commission proposes 95 grams CO2 per km It has now been confirmed by the European Commission that the proposed target figure for CO2 emissions from new cars will be 95 grams per km by 2020. This is a reduction of around 27% from the mandatory average of 130 grams in 2015.

Where vans are concerned, the mandatory figure is 175 grams in 2017, reducing to a proposed 147 grams in 2020. JeanMarc Gales, who has substantial experience in top level positions held with motor manufacturers, and who is now head of the European Association of Automotive Suppliers (CLEPA) commented: “The 2020 targets are achievable, economically sound and cost effective: the technology is already available and affordable. Limiting emissions to 95 grams would add about 1,000 Euros to the price of a new car, but this would quickly be paid off through savings in fuel consumption”.

Local manufacturers lose out to Koreans in French and Spanish markets The continuing economic uncertainty in the Eurozone has once again taken its toll on new car sales in at least two of the ‘big five’ markets. Figures show that France and Spain saw new registrations decrease in July, compared to the same month last year. In France, this drop was 7%, and represents the ninth consecutive month of diminishing sales, reports national industry body CCFA.

Better cross-border test recognition In a move to better harmonise and facilitate the movement of vehicles between member states, the European Commission has published a proposal for regular roadworthiness tests. Although such tests already take place in individual states (MOT in the UK, Contrôle Technique in Belgium and France…), the new proposal would see better mutual recognition of testing regimes between states.

The Commission is also calling for tighter regulations against tampering with the recorded mileage of a vehicle on its odometer. The European umbrella association for the leasing industry – Leaseurope – welcomes this move, pointing out that its interest derives from the fact that over 30% of motor vehicles sold in Europe are via leasing contracts.

Company car emissions levels hit all-time low in UK Are Hyundai and Kia doing (too) good in France and Spain?

In brand terms, the local manufacturers Citroën, Peugeot and Renault all suffered, with European market leader Volkswagen (up around 1%) and rapidly emerging Hyundai and Kia (up 37%) faring much better. Within this context of falling sales, and the announcement of a plant closure and job losses at PSA Peugeot Citroën, France has asked the European Union to take measures involving Korean imports into the EU. France is requesting prior notification of imports into the EU. South Korean manufacturers exported almost 350,000 cars to the EU last year. Many of these cars, however, are built inside the EU. Next to France, also the Spanish automobile association ANFAC has had bad news to report. Sales in the country fell by 17% in July, meaning that there have now been more than 24 months of consecutive decreases. Once again, the local manufacturer SEAT suffered greatly, as did Peugeot (both down by around a third) while the South Koreans were up in Spain too, by almost 7%.

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The CO2 emissions from new company cars in the UK have hit an all-time low, with the average level of carbon dioxide emitted by company cars purchased in the first semester of 2012 dropping from 138 g/km to 127 g/km; an average reached in part thanks to their lowest ever point in June (123 g/km). “It is Since 2008 London has Low Emission Zones for evident from the analysis diesel-powered commerthat UK businesses cial vehicles. are really taking notice when it comes to reducing their CO2 emissions and mileage,” commented Keith Allen, Managing Director at ALD Automotive UK. “As vehicle taxation and carbon emissions are so entwined, it is vital that employers and staff stay one step ahead of changes in legislation.” Mr Allen attributed the decline mainly to taxation, which progressively targets higher-emitting vehicles.

SCOPE I Market

Multi-mobility project in Hamburg A new multi-modal mobility concept is to be trialled in Hamburg. Mobility suppliers Hamburg Hochbahn (local rail/underground service), Europcar and the car2go carsharing scheme are to undertake a 24 month trial.

The DMM website reports that the objective is to provide a comprehensive link between these transport offerings, which is set to appeal to both private and business users.

CITROËN enforcing China with DS range CITROËN has a dual offensive strategy underway, involving China, the world’s largest car market (and CITROËN’s third largest B2B market), and the brand’s latest range of cars, the DS models.

The concept would mean that a selected local rail stop would serve as a mobility service point, enabling passengers to intelligently switch between the train, underground, bus, rental or car-sharing vehicle, and even bikes.

Slight growth in Dutch car leasing market Figures published by Dutch leasing association VNA show that the overall leased fleet in the country grew by a little under 2% during the first half of 2012, compared to the first half of 2011.

This means that the number of leased passenger cars on Dutch roads has now reached around 510,000, with 125,000 utility vehicles. The second category is unchanged from 2011, with passenger cars accounting for the increase. The overall new car market in the Netherlands grew by only 1.2%, however.

Used car market a good fleet indicator When calculating ownership costs, depreciation is a very important factor for fleet managers. It is estimated that this element accounts for 30 to 45% of the total cost.

This residual value (the resale value as a percentage of the purchase cost) clearly depends on the second hand car market. This means that the guide entitled ‘Understanding the Used Car Market’ published by the Corporate Vehicle Observatory is a precious tool for fleet managers.

This tool does not limit itself to setting out the situation of the used car market in France. It also has tables comparing various countries in Europe in terms of their used car markets, along with much more detailed indicators. For example, the ‘Top ten of falsified mileometers trafficked between France and Belgium’, in a very detailed chapter dedicated to used vehicle fraud.

CITROËN aims to sell 40,000 new vehicles in China this year. Earlier this year CITROËN presented the ‘concept car number 9’ during the Beijing Motor Show. This model is seen as a precursor to future models within the DS range.

Since it was launched two years ago with the DS3, this range of stylish vehicles has now expanded to include the DS4 and DS5, and has sold 245,000 models worldwide. To take advantage of the success of the range, CITROËN is in the process of opening 24 DS Stores in China, with an ambiance designed to reflect the style and innovation of the cars.

Chinese B2B demand tries?

CITROËN works through two complementary joint ventures in China, with Dongfeng Motors and Chang An. These joint ventures involve the development and production of cars for the Chinese market. Speaking of the brand’s ambitions both in overall terms and specifically for the DS range in China, PSA Peugeot CITROËN Head of International Fleet Sales and Development Stéphane Chesnel said: “With the CITROËN DS range we are convinced that we have a good and beautiful line-up to cover some B2B demands, as the Chinese B2B market is one of design, luxury and uniqueness. Of course we will not only sell the DS range to B2B, we will sell all our products: our premium range, the DS line, and our classical CITROËN range. The two ranges are complementary for our development in China. For DS, we are developing dedicated DS Concept Stores, showrooms especially made for the DS range with the look and feel that you would expect from such a showroom. As B2B executive Chinese customers prefer longer cars, the CITROËN DS5 is really adapted and relevant on the B2B market. Nevertheless, the CITROËN DS3 and DS4 are also important as they can compete with models like MINI or Mercedes A-Class.” CITROËN has already opened 257 B2B priority dealers dedicated to professionals (including taxis). The brand also wants to increase the DS stores awareness of this B2B approach. CITROËN’s target is Steven Schoefs sales of 40,000 this year. ■

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dossier I Taxation

Western Europe to lead the way Making the Fleet Europe Taxation Guide 2012 helps to get more insight in Member States car taxation and the potential impact thereof on car fleets.

Where there is a split economically today between South and North, from a car taxation perspective it is more West versus East.

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n Western Europe, most Member States have linked car taxes with CO2-emissions, in Eastern Europe, apart from some CO2-emissions taxes upon import of cars (e.g. Poland, Czech Republic) also Latvia and Slovenia have introduced a CO2-related kind of registration tax.

When focusing on potential tax savings, reducing CO2emissions pays off most in countries like Belgium, UK, the Netherlands, France and Spain.

When we compare car taxation systems in those countries, we see that all of them have the registration taxes linked to CO2-emissions (although in the UK it is rather an increased first year VED or Vehicle Excise Duty). This implies that upon acquisition the environmental impact of the car is mostly taken into account. This effect should in principle be stronger for purchased cars rather than leased cars since for the latter the impact is spread over the lease period. In Belgium, the CO2-linked registration tax is in principle only applicable for non-leased cars.

Although high registration taxes are not fulfilling the environmental objective since they may block the acquisition of new cars with new cleaner technology, only the Netherlands has announced to replace their BPM over time with usage related taxes; a project which has been delayed for the moment.

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When you focus on potential tax savings, reducing CO2emissions of your car fleet pays off most in countries like Belgium, UK, the Netherlands, France and Spain.

Benefit in Kind The UK, Belgium and the Netherlands also have linked the Benefit in Kind to determine the tax to be paid for the private use of the company cars to the environmental performance of the company car. In principle, in those countries implementing a CO2-reduction program should not be challenged to much by the drivers since they will feel in their pocket as well. The UK and Belgium use a linear system, so every improvement pays off, while in the Netherlands, the company car should be below certain thresholds, which may disturb preferences of models and makes and power trains. In the latter a danger exists that drivers will opt e.g. for hybrid technology although based on their mobility profile, they should better not (high-way use).

This results in a Benefit in Kind saving, but will most likely increase the actual fuel bill.

France has introduced the TVS (Taxe sur les Véhicules de Société) to further stimulate the companies that provide company cars to take CO2-emissions into account. Belgium has a particular focus on company cars with their social security contribution for private use of a company car that is CO2-emission related and the linking of the tax deductibility of company car costs with the CO2-emissions of the company car (from 50% deductible up to 120% deductible for 0-emission cars).

The UK has a kind of annual circulation tax called VED (Vehicle Excise Duty) that is CO2-emission related. In the other countries the annual circulation tax (none in France) is linked to power, cylinder capacity or weight of the car.

Linking it to CO2-emission may not be seen as socially acceptable since older cars, owned by people that cannot or chose not to afford a new(er) car, will pay higher taxes.

Understanding these taxes is already complicated. Getting insight in the effect of all these taxes is even more difficult.

CO2-impact is big in France Measuring the effect of a CO2-emission improvement from 135 gr CO2/km to 120 gr CO2/km for an average 100 car fleet with 30,000 km/year and a replacement cycle of 42 months, using the GreenCube tool of TCOPlus, we learn that France has the biggest impact with about 52K EUR annual savings, followed by The Netherlands 48K EUR, Belgium with 44 KEUR, the UK with 38K EUR and Spain with 23K EUR. Although if we lower the average CO2-emission

to 119 gr CO2/km, Spain would increase quite significantly (+/- 139K EUR) since it has a threshold at 120 gr CO2/km for its registration taxes lowering from 4.75% to 0%.

From a Benefit in Kind perspective, the UK has the biggest impact (73K EUR), followed by Belgium (44K EUR), both using a kind of linear system, and The Netherlands (0K EUR), with a threshold system that is beneficial only if drivers go beneath a certain threshold (recently lowered to 114 gr CO2/km for a 5% reduction from 25% to 20% BIK).

When we take a closer look at France, we see that the 52K EUR is half fuel benefits and half tax benefits composed by a lower registration tax and a lower TVS. For The Netherlands, the effect is also split equally where the tax effect is mainly on BPM, the Dutch registration tax.

In Belgium and the UK, taking into account the above mentioned CO2-emission improvements, the effect is for about 65% fuel based and 35% taxation based. In Spain the tax effect when lowering to 119 gr CO2/km represents 114K EUR out of 139K EUR. Comparing these West European countries, we can draw some conclusion: • Lowering CO2-emissions does result in savings of which about half is represented by taxes • Taxes are actual savings since they take into account theoretical CO2-emissions and not actual fuel consumption. Presented fuel savings highly depend on proper driving behavior • Sometimes, stretching the objectives set a little bit further may increase the benefits tremendously. This is certainly valid for countries working with threshold systems like The Netherlands and Spain • Although from a tax perspective some power trains do seem the right option, the usage of the car should be the more important element in considerations (e.g. hybrids used by driver mainly on high-ways) The above conclusions are at this moment not valid for all European countries, although we see that increasingly also other (Eastern) European countries are following.

Moreover, where focusing on Co2-emissions for taxing cars was mainly European, we see other countries in the world picking up. ■ Bart Vanham Expert Car Taxation Representative of PwC

With the assistance of the PwC Automotive Network, we updated the car taxation regulations in 28 countries – almost all the EU + Switzerland, Russia and Turkey.

The book has been published in June. You can order the new Fleet Europe Taxation Guide by scanning the QR-code. Individual country chapters are available via the web shop of Fleet Europe: www.fleeteurope.com/webshop.

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SCOPE I Taxation

Car taxes in the rest of the world Making the first ever PwC Global Automotive Tax Guide learned that apart from (West) Europe, the focus is not yet on taxing CO2-emissions. This provides Europe with a unique competitive advantage where demand for environmental friendly cars is stimulated to balance the offer and production of these cars. Nevertheless, the rest of the world is gradually taking example by introducing some first environmental performance related taxes. Leasing of cars and company cars are generally a known, accepted and taxed concept. Registration taxes known in every country. Below a brief high level overview.

Leasing of cars, with accounting standards that are generally comparable in terms of finance lease and operational lease, is known in the bigger global countries. Transfer of risk and reward will in most cases determine the on-balance position of a lease, similar to the European standards.

Company cars, defined as cars used for professional purposes up to cars used for professional and private purposes are a known concept and private use is generally taxed. The focus however is clearly on job necessary cars and not on benefit cars.

In terms of importance of cost for most countries, the import duties are leading. Import duties are due on importing cars or car parts into the country. They vary from no import duties in New Zealand for most cars up to 75% and more in India.

Most countries have trade agreements with other parts or countries in the world lowering the import duties for cars originating from these countries (e.g. Korea lowers the import duties from 8% to 6.6% for

cars originating from the EU). Some countries have exemptions or significant reductions for hybrid cars.

Argentina lowers its import duties from 35% to 2% for the import of hybrids. Electric cars are not yet in scope apparently since rarely mentioned.

Registration taxes are due in almost all countries. The level does vary

quite significantly with mostly fixed rates linked to the value of the car or the engine size. Registration taxes are often used to influence consumer behavior. South Africa has a carbon emission tax directly influences by the CO2-emision of the car registered while most other countries have significant reductions for environmental friendly cars and/or specifically hybrid cars.

Important for multi-nationals using big fleets of company cars is the level of deduction from income taxes for these cars costs. Most of the countries have limitations in terms of maximum limits below which cost are deductible, ensuring that luxury cars are only partially tax deductible and lower value cars are fully tax deductible.

Mapping all of these rules learned that there is a jungle of different rules and regulations, making the life of car manufacturers not easier. In a global economy understanding these is vital for business, anticipating on trends vital for business and product development. On a global level this is even harder although clearly an environmental focus is slowly but surely entering. â&#x2013;

More to be discussed during the next IFMI and countries will be described more in detail during specific global country focuses in next Fleet Europe magazines.

Bart Vanham Car taxation expert

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