Fleet Europe 62

Special Edition dedicated to Green Fleet Management

JANUARY 2013 - # 62

DOSSIER NEXUS COMMUNICATION - FLEET EUROPE #62 - periodic magazine - January 2013 - Deposit Office Liège X

Green Fleet Management Lutz Hansen, winner International Fleet Green Award 2012

Management

Business

Scope

Discover the Road Map to go Global

Europe stays crucial for Mercedes-Benz

Low-cost car sharing with CiteeCar

Visit www.fleeteurope.com to stay informed and up-to date on international car fleet management

THE NEW SEAT IBIZA ST

The Fleet car that’s big on space and small on emissions

ENJOYNEERING MORE BOOT SPACE, LOW EMISSIONS – THE CAR THAT MEETS ALL YOUR FLEET NEEDS The New SEAT Ibiza ST is designed to be perfectly in tune with the requirements of today's fleet driver.

With an outstanding boot space of 430 liters, you can take on board all the essentials you need for your business and everyday life.

This translates versatility without renouncing to a superior driving experience because of the beauty of its new design lines and the technology of its latest TSI and TDI engines. With emissions from only 89 g CO2*, it even reduces the Total Cost of Ownership through lower fuel costs and tax, this makes it a great choice for your balance sheet.

The New SEAT Ibiza ST is a perfect chord between beauty, functionality, performance and economy. /Petrol engines from 1.2 to 1.4 TSI (from 60 HP to 150 HP) /Diesel engines from 1.2 TDI to 1.6 TDI (from 75 HP to 105 HP)

SEAT Fleet

FOLLOW US ON:

Average consumption: 3.4-5.9 l/100 km. Average CO2 mass emissions: 89-139 g/km. * Ibiza ST 1.2 TDI CR (55 kW) Ecomotive. Combined fuel consumption of 3.4 l/100 km

SE AT.COM

A sustainable 2013

EDITORIAL

Special Edition dedicated to Green Fleet Management

For several years now fleets have been turning greener and more sustainable.

Once again in 2012 we have seen international corporates further decreasing the ecological footprint of their car fleet, pushed in this direction by taxation, by developments within the industry and as a response to demand from their internal clients: the drivers and stakeholders.

Green Fleet Management has become an integral part of total fleet management, and this was clearly demonstrated at the successful Fleet Europe Awards 2012, where all nominees showed that lowering CO2 emissions is part of their everyday work, and most of them are going as far as looking at the introduction of alternative powertrains or new mobility initiatives.

Fleet Europe wishes you a healthy, successful, sustainable and innovative fleet year 2013

Our international fleet community has shown that it is ready for innovation and that it has the guts to adopt and integrate new visions and developments. And as we move further down the road to an eco-friendly fleet future, it will be the corporates that have to have, and most certainly will have, a predominant role in pushing and pulling green fleet innovation.

Fleet Europe will continue to support the whole industry in its quest for a greener fleet future, by informing you and hopefully inspiring you to continue down this ‘green’ road: a road which will prove that sustainability, ecology and economy can go hand in hand and don’t have to be obstacles to efficient and attractive fleet management.

Steven Schoefs, Chief Editor sschoefs@nexuscommunication.be Twitter : @StevenSchoefs

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FLEET EUROPE # 62

P.3

SIMPLY CLEVER

ŠKODA Rapid.

A great news for your eet.

Regardless of which angle you look at the new ŠKODA Rapid, you will always discover many good reasons why to make it a member of your company eet. Rapid is a representative as well as a practical car. Behind its elegant clean lines awaits a spacious interior and many clever details that will make traveling pleasant for the entire crew. For example, the side pockets where you can place your cell phone, an ice scraper mounted on the fuel tank lid or the multimedia holder located on the center console. While drivers will enjoy the high performance of TSI engines, eet managers will appreciate their efciency.

The offer also includes extremely efcient 1.6 TDI diesel engines. All TDI and TSI engines are also available in Green tec versions that are particularly environmentally friendly. With the new ŠKODA Rapid your eet will reach a completely new level.

Contact us as soon as possible. We will gladly introduce you to other ŠKODA models from our eet offer. www.skoda-auto.com

Combined fuel consumption and CO2 emissions for the Rapid model: 3.9–5.8 l/100 km, 104–134 g/km

CONTENT

Special Edition dedicated to Green Fleet Management

Material sourcing Disposal & Recycling

Material processing

Risks Opportunities Collaborations

Use

Manufacturing Distribution

management

The link between Purchasing & CSR.

BUSINESS

Fleet Europe Industry Award: winning applications.

56

50

DOSSIER I Green Fleet & Sustainability

Scope

The year of the electric taxi.

62

I DOSSIER I

Pioneers in Greenification. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.9 The small world of Green Fleet Management . . . . . . . . . . . . P.10 Corporate fleets lead the way . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.11 New powertrains & future mobility . . . . . . . . . . . . . . . . . . . . . . . . . . . P.14 Technology: Conventional combustion engine . . . . . . . . . . . P.18 Technology: Hybrids . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.22 Technology: Electric cars . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.26 Technology: Hydrogen. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.29 Technology: CNG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.30 Development of eco-friendly tyres . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.32 Telematics support sustainability in fleet . . . . . . . . . . . . . . . . . . P.34 Green leasing: the market changes . . . . . . . . . . . . . . . . . . . . . . . . . . P.36 Different colours of green leasing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.38

I MANAGEMENT I

Case study: The green, green fleet of Bayer . . . . . . . . . . . . . . P.40 Case study: The link between green and mobility at BNP Paribas Fortis . . . . . . . . . . . . . . . . . . . . . . . . . . . P.44

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) Pierre-Yves Simon - IT & Web Manager (pysimon@nexuscommunication.be)

An update on sales of new powertrain vehicles, the future of fleet & mobility, the technological side of new powertrains, the development of eco-friendly tyres, and green leasing.

9

IFMI & the Fleet Road Map to go Global . . . . . . . . . . . . . . . . . . . . P.47 7 Steps towards a green car policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.48

I BUSINESS I

News from the world of fleet suppliers . . . . . . . . . . . . . . . . . . . . . P.52 Interview : Matthias Lührs & Hans-Georg Lutz, Mercedes-Benz Cars . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.54 Interview: Giuseppe Tommaso, SEAT . . . . . . . . . . . . . . . . . . . . . . . . P.55 The winning tools from the Fleet Europe Industry Award 2012 . . . . . . . . . . . . . . . . . . . . . . P.56

I SCOPE I

News about the fleet & mobility environment . . . . . . . . . . . P.58 The future of green car taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.60 Low-cost car sharing with CiteeCar . . . . . . . . . . . . . . . . . . . . . . . . . . P.64 Electric scooters for B2B-clients . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.65 Carbox looks beyond French border . . . . . . . . . . . . . . . . . . . . . . . . . P.66

Contributors: Tim Harrup, Frank Jacobs, Olivier Maloteaux, Jean-François Christiaens and Jonathan Green Special thanks to: Bart Vanham (Representative PwC), Jens-Uwe Berg (JATO Dynamics), Yeswant Abhimanyu (Frost & Sullivan), Hervé Legenvre (EIPM), Richard Knubben (Leaseurope) 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.

FLEET EUROPE # 62

P.5

CO²OL*

*The new A-Class with CO₂ emissions as low as 98 g/km.

A Daimler Brand

The pulse of a new generation. Thanks to state-of-the-art technical features such as the ECO start/stop function fitted as standard, the new A 180 CDI BlueEFFICIENCY is one of the most efficient diesel vehicles in the compact car segment – with CO₂ emissions from just 98 g per kilometre. And because road safety is not a matter of price at Mercedes-Benz, the radarsupported COLLISION PREVENTION ASSIST system also comes as standard. Find out more at www.mercedes-benz.com/fleet

Fuel consumption urban/extra-urban/combined: 8.4–4.5/5.1–3.3/6.4–3.8 l/100 km; combined CO₂ emissions: 148–98 g/km.

Figures do not relate to the specific emissions or fuel consumption of any individual vehicle, do not form part of any offer and are intended solely to aid comparison between different types of vehicle.

• Jung von Matt • 13443/27/12001/16 • DTP: Niels (-1185)

• 420 mm × 297 mm • 2/1-Seite, geheftet • 4C, linke Seite

• Kunde: Mercedes-Benz (Daimler AG) • Produkt: A-Klasse (W176) • Titel/Objekt: Fleet Europe

Water covers 70% of the earth To navigate the rest, count on us ALD Automotive and Wheels Inc., its North American partner, have formed a strategic alliance with FleetPartners, a market leader of the fleet management industry in Australia and New Zealand.

The partnership provides ALD Automotive with crucial local support for international customers with operations in the emerging Asia-Pacific region.

Today, we offer you the broadest worldwide coverage, with integrated fleet and account management of over 1.3 million vehicles in 43 countries, including the fast-growing markets of Brazil, Russia, India and China. www.aldautomotive.com

dossier

Special Edition dedicated to Green Fleet Management

I Green Fleet & Sustainability

Pioneers in Greenification T

oday 20 European Member States use vehicle CO2 emissions for their vehicle tax regimes (see also page 60). The higher the emissions the higher the tax that is payable - for both for the company and the driver.

Combined with rising fuel costs, this creates a new dynamic. Companies are seeking to reduce their operating costs and company car drivers want to reduce their personal tax burdens in tight times. In response a number of fleet managers have successfully introduced incentive schemes to encourage drivers to choose low CO2 company cars. OEMs are responding too. The emission profile of vehicles across Europe is falling as legislation forces OEMs to invest in fuel efficiency measures and bring lower carbon vehicles to market. As emissions fall it will not come as a surprise that government tax regimes change too.

The greenification of vehicles is set to continue at pace. OEMs are investing in new technologies like hybrid and electric vehicles, vehicles are shedding weight and powertrains are being re-engineered as the internal combustion engine is optimised. The challenge in tight economic times is determining what the market will embrace. There is political will for action, fleets are cost and emission focused, and increasing levels of expertise from service and lease pro-

Companies are seeking to reduce their operating costs and company car drivers want to reduce their personal tax burdens. viders, in terms of financing low emissions vehicles, is creating the environment for behavioural change.

Corporate fleets will once again be the pioneers. In this focus on Green Fleet Management we discuss new initiatives and explore developments of early adopters to see what is working well in the corporate fleet world. With special attention to managing a green fleet, technology and products in the market we hope to provide an insight into what the world looks like today and what it could look like tomorrow. â– Steven Schoefs

FLEET EUROPE # 62

P.9

dossier I News Electric vehicle growth forecast despite government cuts Research reveals that despite government support for electric vehicles declining, increasing vehicle charging infrastructure at home, in the workplace and in public places is facilitating market growth. With an increasing number of models offered by OEM’s, Pike Research forecasts more than 1.8 million Battery Electric Vehicles (BEVs) will be on Europe’s roads, along with 1.2 million Plug in Hybrids (PHEVs) and 1.7 million hybrids (HEVs).

Pike expect the top six European countries for BEV will be Germany, France, Norway, the United Kingdom, the Netherlands, and Sweden. These countries will represent two thirds of the market with each having a volume in excess of six figures.

TNT opts for Iveco natural gas in Italy Iveco has announced that it is to supply 115 of its ‘Daily Natural Power’ vans to TNT Express in Italy. These vehicles are powered by methane gas and will be principally used in the Rome area. Iveco states that the Daily Natural Power offers the same performance levels as its diesel equivalent, but with fuel costs reduced by up to 40% and CO2 emissions down by 5-8%.

Coca-Cola Japan tests Nissan e-NV200

Coca-Cola goes electric with the e-NV200 of Nissan.

Coca-Cola Central Japan uses Nissan’s e-NV200 as regional sales vehicle in Yokohama, evaluating its performance and practical usability against conventional internal-combustion engine vehicles. The van will be recharged only at night when electricity consumption is low. The test will determine if the nightly charge is sufficient to meet user needs during the day. Nissan has already road tested the e-NV200 this year with several other major companies, including AEON Retail, FedEx Express and British Gas in Japan and Europe.

E. Leclerc and Renault have ‘electric’ partnership

Carlos Tavares, COO Renault Group and MichelEdouard Leclerc, Chairman of Centres E. Leclerc.

Renault and French retail specialist E. Leclerc are confirming their commitment to sustainable development and electric mobility in France, with the launch of the “Z.E. Club des 50”, which will function from early 2013. In each region, an E. Leclerc centre and a Renault dealership will work together through the Club to deploy charging stations and thus make Zero Emission mobility available to the greatest number. In Brittany, the E. Leclerc centre of Pont l’Abbé and the Renault dealership in Quimper are the first members of this Club, which aims to bring together players and ambassadors of electric mobility in each region. The ten Renault ZOE vehicles ordered by Patrick Bellec at the Paris Motor Show are intended for use as company cars, to be driven by ten employees from the store who have fitted wall boxes for home charging.

SD Worx opts for Toyota hybrids via Alphabet

The Toyota Yaris is seen as an ideal pool car.

P.10

FLEET EUROPE # 62

SME-advisor SD Worx has taken delivery of 22 Yaris Hybrid models, supplied by the Willy Garage in Kontich via an Alphabet Belgium car leasing contract. The cars will be made available to each of SD Worx’ 26 regional offices, enabling staff members to use them for client visits. Toyota’s Regional Business Sales Manager Erwin Neuville described the Yaris as being an ideal pool car because of its low fuel consumption (3.5 litres per 100 km) and CO2 emissions (79 grams per km), and its ability to run in 100% electric mode.

Special Edition dedicated to Green Fleet Management

dossier I Green Fleet & Sustainability

Corporate fleets lead the way in sustainable car development 2012 proved to be another year of economic challenges for a number of markets, manufacturers and governments alike. The slowdown in most European economies and the debt crisis have also taken their toll on vehicle sales. Last year has been a year of declining sales in the main markets in Europe, with the exception of Great Britain, which has shown a strong increase versus 2011 making it the second biggest market in Europe, behind Germany.

V

olumes have dropped by a moderate 1.7% in Germany to a more extreme 20.0% in Italy, with Netherlands, France and Spain falling by 10.1%, 13.8% and 14.3% respectively. France in particular has been hard-hit from a total volume perspective.

The encouraging message, however, is that sales of vehicles featuring sustainable technologies have risen considerably, showing that more and more individuals and fleets are looking to adopt “green” credentials.

Sales 2012 versus 2011 In last year’s article (Fleet Europe Green Fleet Special edition of January 2012) we predicted that “green fleet” initiatives will continue to increase in 2012, especially in markets like Great Britain, France, Germany, Scandinavia and Benelux, where either geographical advantages or improvements in infrastructure will boost the introduction of electric vehicles and hybrids within fleets.

However, on a bigger European scale, many fleet managers will initially be looking to put initiatives in place that

reduce the carbon footprint of their current fleet.

Looking at the 2012 information available now (January to November), this certainly is becoming reality, but at different speeds and not everywhere in Europe.

With the exception of the Netherlands, diesel engines still power most new vehicles, especially in fleets. Further refinements regarding CO2 emissions and fuel consumption are having a positive impact on both “total cost of ownership” and taxes for consumers and company car drivers alike. There is trust in this proven and reliable technology.

Whilst there is a lot of focus and discussion about the future of mobility, particularly at events like the recent Fleet Europe Forum and Awards 2012 in Cannes, most fleets are only at the stage of gathering information and raising the awareness. Pressure on costs is most likely to drive decisions to opt for downsized, C02-optimised diesel models for the time being.

Sustainable propulsion technology is gaining ground as well, but still in comparatively low volumes. Interest-

According to JATO Dynamics and its Market Development Manager Global Leasing JensUwe Berg, corporate fleets will further try to support initiatives to introduce more sustainable technologies in their car fleets. ingly, hybrid vehicles have seen the biggest volume growth, with Toyota models like Auris & Prius taking the lion’s share of sales volumes (see also page 22).

Pure electric vehicles (EVs) have increased in sales as well, but there is no breakthrough visible for them yet.

Markets with the most significant volume growth are France, Norway and Germany but a number of other markets were almost stagnant. It is still clear that significant infrastructure improvements need to be made, alongside improvements in vehicle battery costs, charging time and driving range, before pure EVs can really succeed (see also page 26).

FLEET EUROPE # 62

P.11

dossier I Green Fleet & Sustainability

Looking at the 2012 car sales figures (see figures on page 13) see that registrations of EVs and extended range EVs in the biggest European markets are almost exclusively fleet.

P.12

It is a different story for EVs with a range extender, like the Opel Ampera and the Chevrolet Volt. They saw a massive growth in 2012 especially in the Netherlands, where half of the total sales volume in all key markets was registered.

One of the reasons surely is that they are viewed as pure EVs by the legislation there, exempting the driver from the hefty taxation whilst offering good performance, range & comfort for their drivers. In southern Europe, which is more impacted by the debt crisis, sustainable technologies play a much smaller role, largely due to the comparatively high price level of these vehicles versus conventionally powered vehicles.

Overall, fleets are at the forefront of the growth in sustainable propulsion and need to continue driving this trend for “green initiatives” in order to create wider acceptance, more affordable vehicles and to facilitate investment in the development of a wider variety of “cleaner” models in the coming years.

Looking at individual market developments, it seems that Scandinavian markets, like Norway and Sweden, and the Netherlands are leading the way into a “greener” future of mobility. From the high-volume European markets, France stands out as an early adopter of sustainable technology.

Fleets direct the green way We have already drawn the observation that the European market slowed down considerably in 2012 with the exception of Great Britain. Here we see the impact of the emission-driven taxation, which results in engine-downsizing for both consumers and fleets to achieve savings.

Fleet registrations have contributed significantly to the overall volume and prevented even higher volume losses in a number of markets, most notably in Spain, but also in Germany and the Netherlands.

Proven petrol and diesel technologies, which remain critically important for both fleets and private buyers, continue to make leaps forward in order reduce emissions and become more frugal in fuel consumption. Manufacturers are continuously looking at more ways to further reduce the weight of vehicles and a number of brands have introduced recuperation and start/stop technology in the smaller segments. It is a fact that many larger premium vehicles are now emitting less CO2 than a small subcompact a couple of years ago!

Looking at sustainable technology volumes, a pretty clear picture can be observed. For EVs and extended range EVs the registrations are almost exclusively fleet registrations in the top five European markets. It is only in France that EVs appear to be more popular with private consumers.

A slightly different scenario can be found for hybrid vehicles, which are more widely accepted by the private buyer.

A look at the year ahead What will 2013 bring in terms of vehicle sales within fleets and amongst private buyers? A question that interests everyone in automotive and car fleet business, but a question difficult to answer.

Current scenarios are suggesting that again we will see regionally diverse developments in sales volumes. Corporate fleets are likely to remain a key volume generator and initiatives to introduce more sustainable technology will continue to increase. The development of the retail sector is much more difficult to predict and it is likely that external factors such as the debt crisis will remain highly influential on private consumer behaviour.

New technologies will continue to be introduced in the smaller-sized vehicle segments, which historically deliver the highest sales volume in Europe. This will lead to a more affordable offering, enabling more private buyers, as well as fleets to make the move towards sustainable mobility. ■

FLEET EUROPE # 62

JATO Dynamics provides upto-date information on vehicle specifications and pricing, sales and registrations. The company has representation in over 40 countries. You can visit JATO Dynamics online at www.jato.com Jens-Uwe Berg Market Development Manager, Global Leasing at JATO Dynamics

Special Edition dedicated to Green Fleet Management

Many larger premium vehicles are now emitting less CO2 than a small subcompact a couple of years ago.

Petrol

Diesel

Hybrid

Plug-in Hybrid/ Extended Range EV

EV

Country

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

Austria Belgium Czech Republic Denmark France Germany Great Britain Ireland Italy Norway Portugal Spain Sweden The Netherlands Total

136,601

159,566

178,544

194,722

1,885

1,308

186

2

373

547

138,893

134,227

320,305

431,084

4,438

6,624

259

16

518

260

93,068

103,371

67,099

69,704

343

151

10

0

75

56

96,032

87,484

63,027

81,670

400

262

13

0

439

417

438,862

592,156

1,269,100

1,595,971

24,841

13,436

219

36

5,435

2,630

1,469,430

1,662,760

1,386,044

1,496,116

18,741

12,023

887

280

3,012

2,329

920,209

935,163

975,332

981,594

23,878

23,394

486

4

1,145

1,098

20,184

26,358

58,225

62,933

636

559

137

46

609,271

779,531

706,388

974,383

5,926

5,163

99

3

469

305

37,580

28,473

82,970

105,220

5,585

3,972

152

1

3,709

2,011

33,306

45,265

57,540

107,029

791

987

16

2

46

203

188,006

231,246

438,327

566,463

9,081

10,068

48

6

404

349

81,830

116,889

167,601

185,005

2,987

2,907

135

3

238

180

322,220

383,265

138,439

156,815

19,130

14,857

3,589

15

805

861

4,585,492

5,285,754 5,908,941

95,711

6,099

368

16,805

11,292

(YtD November)

(YtD November)

(YtD November)

7,008,709 118,662

(YtD November)

(YtD November)

(Source: JATO Dynamics 2012)

Overall Sales New Cars according to the type of powertrain

We can see a decline in overall new car sales in most markets, except in Great Britain. Another key finding is that diesel stays dominant, but alternative propulsion is become more popular.

Petrol

Diesel

Hybrid

Plug-in Hybrid/ Extended Range EV

EV

Country

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

Austria Belgium Denmark Germany Great Britain Italy Norway Spain Sweden The Netherlands Total

58,706

64,116

102,971

109,463

908

459

123

2

248

375

27,544

22,577

185,976

200,131

2,834

1,430

212

10

374

212

21,992

30,403

40,180

55,537

287

173

13

0

341

409

745,955

829,876

1,012,974

1,061,148

9,627

5,918

748

280

2,719

2,220

370,658

416,603

655,483

685,769

15,111

15,024

316

4

1,022

759

163,688

195,240

313,686

394,269

2,676

2,576

89

3

438

295

11,700

9,492

37,072

43,666

2,815

2,020

80

1

1,010

656

84,682

101,559

237,790

305,705

2,840

3,442

43

6

393

331

41,743

59,978

119,912

124,176

2,136

2,226

115

3

223

176

147,454

154,565

113,568

109,603

12,671

9,292

3,073

13

752

822

1,691,663

2,016,950 2,934,989

48,216

4,828

356

8,188

8,801

(YtD November)

(YtD November)

(YtD November)

3,816,839 53,260

(YtD November)

(YtD November)

(Source: JATO Dynamics 2012)

Sales New Cars to Business Customers according to the type of powertrain

Electric vehicles are almost exclusively registered by businesses

FLEET EUROPE # 62

P.13

dossier I Green Fleet & Sustainability

New powertrains, an imperative for your future mobility The choices you make define your future success. One, amongst the many that presents itself to global car makers in today’s day and age, is the move towards evolving as mobility solution providers of the future rather than a conventional car manufacturer. With new business models like corporate car sharing, mobility integration, real-time ride sharing and the like, the future automotive roadmap is destined for change – towards sustainable, flexible and cost-effective mobility.

H

owever, this success is highly dependent on both, the traditional core competence of global OEMs in vehicle manufacturing as well as the legislative, economic and social drivers that encourage the adoption of next-gen, clean-green technologies. Global emission regulations and dynamic consumer demand – in terms of increased fuel economy, efficiency and vehicle performance are some of the key drivers re-shaping the automotive horizon. In response, the choice of powertrain technologies amidst others such as lightweight construction, eco-driving and telematics therefore have a pivotal role to play.

Global Emission Regulations and Targets The Euro emission regulation in Europe is a benchmark for a number of economies around the world including India, Brazil and China to name a few; likewise the EPA Tier 2-Bin 5 and California LEV standards in USA. Complying with these increasingly stringent emission limits in relation to NOx, CO, HC and PM is expected to be a key driver for the strategic uptake of next generation powertrain technologies

by OEMs. Although majority of OEMs today already have plans in place, the Euro 6 emission regulation is expected to be turning point going forward, both for gasoline as well as Diesel powertrain. Technologies like engine boosting, direct injection and particulate filters (DPF) for Diesel engine is more or less a norm today. However, tighter NOx limits

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for Diesel engines will require the addition of expensive after-treatment technologies like selective catalytic reduction (SCR), making it economically challenging to introduce the technology on smaller A and B segment vehicles. As a result, the share of gasoline powertrain by 2019-2020 is expected to increase and account for about 51–53% in Europe.

On the other hand, the necessity to reduce overall CO2 fleet average below the limit of 95 gms/km by 2020 in Europe in line with the ACEA target is also expected to further encouraging the uptake of technologies like gasoline direct injection (GDI) and Variable Valvetrain (VVT) coupled with downsized, turbocharged engines. GDI is expected to have a penetration of over 60% by 2018 in Europe. Similarly, the CAFE 2025 targets of 54.5 mpg in USA is expected to alter powertrain strategies to include higher uptake of technologies like micro-hybrids and VVT, along with higher speed automatic transmission technologies for enhanced fuel economy. China and Europe are expected to propel global dual clutch transmission volumes to over 9 million by 2020 while Japanese OEMs are expected to continue to focus efforts on continuous variable transmissions (CVT).

Although EVs promote zero emission capabilities and reduced dependency on fuel, they face challenges in terms of battery technology and costs, EV charging infrastructure and the driving range in pure electric mode. Another challenge at a higher level is the source of electricity used to drive EVs in emerging countries which brings into the equation, the source CO2 emissions. In order to strike a balance between reducing CO2 emissions and enhancing fuel economy with longer driving range and reducing dependency on EV infrastructure, optimized range extender engines seem to be a promising current solution. In tandem, a number of OEMs are also introducing hybrid models to appeal to a gradually growing market, especially in countries which enjoy government aids.

Special Edition dedicated to Green Fleet Management

Powertrain Technology Roadmap, 2005-2020 Turbocharging

Variable Geometry Turbocharging (VGT) and Multi-stage Electrical Assist Turbocharging

Diesel

Homogeneous charge compression ignition (HCCI)

Common rail - 3rd Gen

Common rail - 4th Gen

Common rail - 6th Gen

Common rail - 5th Gen

DPF and post-injection optimization Selective catalytic reduction

Combination of DPF and SCR Variable valvetrain

Cooled exhaust gas recirculation (EGR)

Extra cooled EGR in combinaison with low-pressure EGR Cylinder deactivation

Gasoline

Turbocharging (FGT, and waste gate including electronic control) Continuously Variable Valve Lift Continuously Variable Valve Timing HCCI Cylinder deactivation Gasoline Direct Injection

Hybrid EV

Combination of Micro+Mild hybrids

Nickel-Metal Hybride Batteries Motor Power 30-150 kW Above 150 kW Battery Capacity 1 kWh - 2 kWh More than 2 kWh

AC Induction and Permanent Magnet Motor - Li-ion Battery Battery Capacity 10 kWh - 20 kWh More than 30 kWh

2005

2010

2015

2020

Source: Forst & Sullivan, 2013

Catch 22?

From the consumer perspective, factors such as fluctuating fuel prices, service and maintenance cost, parking fees, congestion charges and taxes stimulates the increase in total cost of vehicle ownership (TCO). Moreover, with today’s corporate fleets assessing total cost of mobility (TCM) – the very need to own a personal vehicle is sometimes questioned. This, therefore, points towards the imperative need for vehicles to be price competitive.

Ever so often, this presents a ‘catch 22’ between offering the right combination of powertrain technologies to answer customer specific demand and emission regulation, and main-

taining a competitive cost. From the OEM perspective, the need to have additive technologies is an inevitable choice to make in order to comply with emission regulations and from the customer perspective, there is a need to share any increase in vehicle costs for the benefits gained in terms of fuel economy.

What is the tangible benefit gained for every extra dollar or euro being spent? The answer to this will define the success of adopting new powertrain technologies. As a thumb rule, it is expected that volumes OEMs in the market today spend anywhere between €20–25 for every gram of CO2 reduced while premium manufacturers are willing to spend between

€40–50 for the same result.

Economies of scale when implementing an expensive powertrain technology also plays a defining role in achieving a price balance to expand technology penetration across overall vehicle portfolios. For instance, a gasoline direct injection offers an expected enhanced fuel economy of over 15% and reduced CO2 emissions by about 10%. However, although GDI is a strategic adoption only by certain volumes OEMs in the market, others consider it an expensive additive technology confined primarily to the premium vehicles and segments.

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dossier I Green Fleet & Sustainability

The cost-benefit analysis is a key condition to make alternative powertrain technologies work in the future.

VVT, on the other hand, and exhaust after-treatment technologies like lean NOx traps (LNT) is expected to find higher penetration, due to lower cost and application in volume segments.

This cost-benefit analysis is therefore, one of the key conditions that have to be fulfilled to make technologies work in the future in terms of sales as is directly impacts the price competitiveness of the vehicle in the market.

Voice of the Customer The growing need for corporates to be socially responsible is another factor that is ranking very highly amongst end consumers today. Revamping towards a green fleet plays an important part in reducing a company’s carbon footprint.

Moreover, one of the key reasons as to why fleet managers are looking to optimize their existing fleets is in view of reducing fuel costs, further signifying the importance new powertrain technologies have to play.

In a recently concluded “2012 Powertrain–Voice of the Customer” study by Frost & Sullivan, some of key findings included the fact that fuel consumption is of top priority for petrol and Diesel drivers in Europe. It was found that European drivers are willing to pay a premium of about €1,900 for petrol turbo over conventional petrol engines, with focus primarily on the performance improvements gained.

Moreover, CO2 emissions were perceived as the most harmful emission coercing a strong tendency towards choosing a vehicle with lower CO2 emissions during one’s next purchase. Another interesting finding was the fact that over 60% of the respondents wanted real-time fuel efficiency

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The share of gasoline powertrain by 2020 is expected to further increase and account for more than 50% in Europe.

indicator that changes continuously based on driving characteristics. These therefore point towards some key conditions to be fulfilled in terms of inclusion and sale of new powertrain technologies, in line with the needs of tomorrow’s customer.

The Way Forward A number of OEMs therefore adopt strategic powertrain packages to meet specific market needs, in-line with their overall group strategies. The uptake of technologies like direct injection with turbo-downsizing and DCT or VVT with turbo-downsizing or powertrain electrification is some examples of a holistic approach adopted by OEMs in view of a realizing a global powertrain strategy. The application of these new, next-generation powertrain technologies is therefore central to reduce emission and increase fuel economy in the quest towards sustainable mobility. ■ Yeswant Abhimanyu Research Analyst at Frost & Sullivan www.frost.com

dossier I Green Fleet & Sustainability

The conventional combustion engines are far from dead On the following pages we have a deeper insight in the how and what of the different powertrain technologies.

We start with the conventional engines. Due to fairly simple techniques to be used, we have not seen the last of conventional engines. So the hunt for polluting emissions is on!

E

ven though alternative fuels allow more appreciable emission breaks, traditional combustion engines, petrol and diesel, are continually improving. In 1976, the Volkswagen Golf 1.5 diesel (50 bhp) had an average consumption of 6.5 litres/ 100 km. By the end of 2012, the Golf VII 1.6 TDI 90 bhp manages on only 3.8 litres/100 km. And 3.2 litres/ 100 km for the upcoming BlueMotion version planned for next spring.

This being a reduction of more than 50% compared to the original diesel Golf. This decrease, based on the same standardised tests, is all the more striking since the performances, capacity, safety and sound insulation between these two cars are not comparable.

How does it work?

In order to decrease a combustion engine’s consumption, there are three possible ways: hunting down consumption associated with peripheral components, maximising its performance or intrinsically modifying its operating principle.

The first way is carried out on almost all the latest cars. Electrically driven power steering pumps enable, for example, only using up energy when strictly necessary unlike the previous

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hydraulic pumps. Smart management of the alternator also enables battery recharging to be maximised under favourable conditions (when you take your foot off the accelerator

Even when improved, combustion engines continue to emit numerous pollutants into the atmosphere. or on braking) and overconsumption to be avoided when accelerating.

In addition to improving the peripheral modules, manufacturers are also working on maximising the performance of combustion units.

In this regard, the watchword is “downsizing”. This trend being to downsize the engines while retaining similar performances. To achieve this, the latest engines are fitted with direct injection and turbo-charging which enable a more generous specific torque and power while controlling combustion better.

This was already the case for diesel units. Petrol engines are also converting to it more and more. Other techniques are added, to glean a few precious decilitres of fuel. Like Stop&Start shutting down the engine during stop phases, a reduction of internal friction (due to more fluid oils and surfaces with less friction) or a more efficient combustion management of the engine, for example.

Controlled water pumps and dynamic radiator grills (whose flaps open or shut) effectively enable the engine to attain the right temperature more quickly.

The next technique called on to become widespread in conventional engines consists in “juggling” with the number of cylinders operating.

A technique of cylinders on demand which enables shutting down two cylinders when low power is demanded by the drivers. Effectively, the central cylinders’ intake is cut off due to a clutch system.

Special Edition dedicated to Green Fleet Management

Advantages

+ +

Internal combustion engine technology is tried and tested and also immediately available. y continuing to “sip” fuels available in all petrol staB tions, traditional internal combustion engines do not need changes to existing infrastructures.

+

Distributed on a very large scale, modern combustion engines enable a return on investment that is shorter than with alternative fuels. So manufacturers can offer them at significantly more competitive prices.

+

Driving enjoyment, range, speed of filling-up in service stations and performance of combustion vehicles remain comfortable for daily use.

Disadvantages

-

Even when improved, combustion engines continue to emit numerous pollutants into the atmosphere. To comply with increasingly strict emission controls, it is necessary to resort to particle filter installations, to NOX...)

All the techniques do not always enable a significant decrease in consumption under real driving conditions.

Conventional models do not enable (future) tolls/driving bans to be circumvented in some large cities.

+ Comparison B2B sales of new conventional cars in Europe Make/Model up to November 2012

Jean-François Christiaens

Petrol

> 76 665 FORD FOCUS

> 78 869 AUDI A4/S4/RS4

> 89 508 BMW SERIES 3

> 56 425 FIAT 500

VOLKSWAGEN PASSAT > 117 296

> 67 496 FIAT PANDA

VOLKSWAGEN GOLF > 144 884

> 78 007

0

Diesel

Make/Model - 2011

> 96 661

> 95 599

> 95 476

BMW SERIES 3

AUDI A4/S4/RS4

FORD FOCUS > 95 476

VOLKSWAGEN PASSAT > 151 291

> 66 306 FORD FOCUS

Petrol

VOLKSWAGEN GOLF > 167 652

> 67 267 OPEL/VAUXHALL ASTRA

0

> 86 985

50

VOLKSWAGEN GOLF

100

> 88 144

150

FORD FIESTA

200 > 107 846

What does the future hold?

Even though there is no doubt that these various techniques have enabled improvements, a petrol engine, even if optimised, has a lower performance that a diesel engine. For its part, even equipped with modernised devices, a diesel engine still has to be compromised with a more difficult control of its polluting emissions. To overcome these disadvantages, the ideal would be to modify the intrinsic operation of the engines. The so-called HCCI (Homogeneous Charge Compression Ignition) engine enables this major step to be overcome. With this technique, combustion of the petrol-air mixture is no longer produced by a spark (spark plug), like in a conventional petrol engine, but after the mixture is compressed until it reaches an auto-ignition temperature (just like diesel engines).

Although this technique is not in itself new, its high degree of complexity has not up until now enabled it to be used in mass production. Only the latest advances, in particular electronic, enable hoping to see HCCI technology become widespread in production cars. Even if many obstacles still have to be solved, in the future, using petrol in your “diesel engine” could well become a reality! ■

VOLKSWAGEN GOLF

30

> 79 662

60

FORD FIESTA

90

> 92 075

120

OPEL/VAUXHALL CORSA

150

OPEL/VAUXHALL CORSA

There are three ways to decrease a combustion engine’s consumption: hunting down consumption associated with peripheral components, maximising its performance or intrinsically modifying its operating principle.

Diesel

Source: JATO Dynamics, 2012

FLEET EUROPE # 62

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EVERY FLEET NEEDS A FLAGSHIP. P.20

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BMW i

Sheer Driving Pleasure

At BMW i, we know the corporate world is all about efficiency, so we’ll keep it short and simple. Why should fleet managers consider the all-electric, emission-free BMW i3 with eDrive technology, available in 2013? First, it’s a perfect fit for innovation-minded companies. Second, it’s a strong sustainability statement. Third, with its connectivity, it makes a functional workplace when required.

Fourth, it can bring down the cost of ownership. And finally, as a genuine BMW, it’s going to put a smile on the face of your employees – every time out. More: bmw-i.com/fleet BMW i. BORN ELECTRIC.

bmw-i.com

dossier I Green Fleet & Sustainability

The successful menu of hybrids The supply of hybrid cars is continually expanding and so is new car sales of hybrid vehicles. But the term “hybrid” comes under different types of technology.

C

onventional combustion engines easily remain in the majority in Europe, but the number of hybrid models is increasing each year on our continent. Clearly the famous Toyota Prius opened the way. The first generation of the model appeared in 1997 in Japan and was marketed in Europe in 2000. Today the Prius is in its third generation and is now available in MPV (Prius +). Although Toyota (and its sister brand Lexus with the CT, GS, LS and RX) has believed in hybrid virtues for a long time, other manufacturers have come in later on. Nowadays, most of them offer a hybrid. The technology is available in several forms.

How does it work?

Hybrid vehicles combine two (or more) sources of energy for their propulsion. For cars, hybrids combine a source of thermal energy (petrol or diesel engine) and a source of electric energy. The aim is to combine power (the two engines work together), range (due to combustion engine) and environmental issues (the electric unit operates without emitting local pollutants).

For most manufacturers, hybridisation appears to be a key step in the car’s migration to energy alternatives. There are however several types of hybrid vehicles.

Traditionally two major hybrid architectures can be singled out: “series hybrids” (propulsion is only provided

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1 6

5

3 8 4

2 7

1. Diesel HDi engine (traction) 2. Electric motor (propulsion) 3. High voltage battery 4. Electronic supervisor 5. Stop & Start system 6. 6-speed electronic gearbox system 7. Reducer 8. Electric flow

By combining different energy sources hybrid cars aim to combine power, range, and environmental elements. Here the Citroën DS5 Hybrid4. by the electric engine, the combustion engine used as a generator to supply the electric unit) and “parallel hybrids” (these vehicles can operate in combustion mode, electric mode or by combining both modes). More commonly, hybrids are classified in three families: “Micro Hybrid”, “Mild Hybrid” and “Full Hybrid”.

“Micro Hybrid” This technology consists in placing a low power electric motor between the engine and the gearbox. This motor takes over the operation of starter and alternator, hence its name starter-alternator. It starts the engine instantaneously and also recharges the battery. This is the architecture used by some makes (Citroën, Peugeot, smart) for their Stop & Start system.

This technique provides about a 10% saving in consumption for city driving.

However, it should be noted that most Stop & Start systems available on the market do not have a starter-alternator, but just a reinforced starter.

“Mild Hybrid” This type of vehicle (Honda Insight, for example) has a regenerative braking system and an electric motor producing about 10 kW. This electric motor is not enough to drive the vehicle by itself (or only on favourable flat stretches), but boosts the combustion engine. With equivalent power, the “Mild Hybrid” therefore consumes less fuel than a conventional vehicle.

The estimated gains in average consumption are around 15 to 20%.

“Full hybrid” In this case (Toyota Prius, for example), the electric motor normally exceeds 15 kW and can drive the vehicle

Special Edition dedicated to Green Fleet Management

Advantages

+ + +

Inexpensive technique (Micro-Hybrid) Full electric mode reducing consumption in the city (Full hybrid) Range and power in electric mode (Plug-in hybrid)

Disadvantages

-

No full electric mode (Micro & Mild Hybrid) Limited range and power in electric mode (Full hybrid) High purchase price (Plug-in hybrid)

Comparison B2B sales of new hybrid cars in Europe 10000

> 507

> 353

> 233

>2

TOYOTA PRIUS

CHEVROLET VOLT

FISKER KARMA

BYD F3

> 4367 TOYOTA YARIS

Hybrid

OPEL/VAUXHALL AMPERA > 3733

> 4786 TOYOTA PRIUS+ LEXUS CT > 13 611

0

> 8566

2000

TOYOTA AURIS > 8 870

4000

TOYOTA PRIUS > 10 061

6000

LEXUS CT

8000

Plug-in Hybrid / Extended Range EV

Make/Model - 2011

15000

> 281

> 71

>4

OPEL/VAUXHALL AMPERA

CHEVROLET VOLT

BYD F3

> 2883 HONDA INSIGHT

> 3848

3000

LEXUS RX

6000

> 8081

9000

LEXUS CT

12000

TOYOTA AURIS > 12 474

“Hybrid Plug-in” Apart from the advent of lithium-ion batteries, the other major news on the hybrid vehicle market is the appearance of “plug-in” hybrid models, which can be recharged from the mains. The prime purpose of these vehicles is therefore to change into electric mode as often as possible. When the battery (in this case always a lithium-ion one) is flat, it can be recharged via a conventional electric socket. And if there is no electric socket in the vicinity, the combustion engine is there to recharge the battery and increase the vehicle’s range.

To illustrate the energy performances of these rechargeable models, let’s take the example of the latest Toyota Prius Plug-in. Unlike the traditional Prius, the plug-in version comes with a high performance lithium-ion battery (4.4 kWh capacity, being almost four times that of the traditional Prius!) and rechargeable on the mains. In practice, the range in electric mode skyrockets: up to 25 kilometres, with a speed of up to 85 km/h. For a total battery recharge

Make/Model up to November 2012

TOYOTA PRIUS > 12 674

by itself (at least under some circumstances: low speed and not accelerating hard). This is what is called ZEV mode, standing for “Zero Emission Vehicle”. A Full Hybrid vehicle implies a significantly more complex technology that the Micro and Mild Hybrids. Depending on the type of journeys made, fuel consumption can be lowered by up to 40% compared to a combustion engine vehicle. Naturally, the city is where a “Full Hybrid” vehicle is at its best as it can change into electric mode for a short while. In this case, the car emits no pollutants. The electricity used is produced by the combustion engine and by regenerating energy dissipated on braking.

Lastly, it must be added that a vehicle’s performance in electric mode depends on the type of batteries. Most current hybrid models have nickel-metal hydride batteries, but some new models opt for lithium-ion type batteries, more expensive but offering better performance. By way of example, while the current Toyota Prius can cover a distance of only 2 kilometres at 50 km/h maximum in electric mode, the Audi Q5 Hybrid (lithium-ion battery) can, cover a distance of 3 km at 60 km/h in electric mode. In addition, the electric motor is capable of driving the vehicle up to a speed of 100 km/hr by itself.

0

Hybrid

Plug-in Hybrid / Extended Range EV

Source: JATO Dynamics, 2012

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dossier I Green Fleet & Sustainability it takes 1h30 on a domestic electric socket.

At the end of the day, the standardised official consumption of the Prius Plug-in is limited to 2.1 litres/100 km (which is 45% less than the traditional Prius), which represents CO2 emissions of only 49 g/km (as opposed to 89 g/km for the traditional Prius).

All this with no loss of performance in hybrid mode (0 to 100 km/h in 11.4 seconds). As you can see, the “Plugin” technique is significantly more efficient than the traditional hybrid.

But it comes at a cost: for example, the Prius Plug-in costs about € 7,000 more than the traditional Prius.

Lastly, a specific hybrid technology is found on the market: the extended range electric car (Extended-range electric vehicles), like for example the Chevrolet Volt and Opel Ampera or the Fisker Karma. These vehicles are very like the Plug-in hybrids. The only difference is that the wheels are always driven by the electric motor. The small combustion engine onboard therefore does not provide traction but is only used as a generator to recharge the battery, which can furthermore also be plugged into the mains. ■

A Full Hybrid vehicle implies a more complex technology than the other hybrid cars, and there can be a fuel economy up to 40% compared to a combustion engine vehicle.

Hybridisation seems to be a key step in the migration to eco-friendly energy alternatives.

Olivier Maloteaux

Hybrid vehicles on the market - 2012/2013 “Micro Hybrid” • Citroën e-HDi (C3, DS3, C4, DS4, C4 Picasso, C5, Berlingo) • Peugeot e-HDi (208, 308, 508, 3008, 5008, Partner) • smart fortwo 1.0 mhd

“Mild Hybrid” • BMW Series 7 • Honda Jazz • Honda Insight • Mercedes E-Class (Diesel hybrid) • Mercedes S-Class

“Full hybrid” • Audi Q5

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• Audi A6 • Audi A8 • BMW 3 Series • BMW 5 Series •C itroën DS5 (Diesel hybrid) • Ford C-MAX (in 2013) • Infiniti M • Kia Optima • Lexus CT200h • Lexus GS 450h • Lexus LS 600h • Lexus RX450h • Peugeot 3008 (Diesel hybrid) •P eugeot 508 & 508 RXH (Diesel hybrid) • Porsche Panamera

• Porsche Cayenne • Range Rover Diesel hybrid (in 2013) • Toyota Yaris • Toyota Auris • Toyota Prius • Toyota Prius + • Volkswagen Golf • Volkswagen Jetta • Volkswagen Touareg

“Plug-in Hybrid” • Ford C-MAX (in 2013) • Mitsubishi Outlander (in 2013) • Toyota Prius • Volvo V60 Plug-in (Diesel hybrid)

The new

MOKKA

Business is tough.

Be prepared.

Don’t blend in.

www.opel.com Fuel consumption combined 6.5–4.5 l/100 km; CO 2 emissions combined 153–120 g/km (according to R (EC) No. 715/2007). Efficiency class E–B

dossier I Green Fleet & Sustainability

Welcome to Electric Avenue The Miracle of Electricity will have known it had to be patient to take its revenge. Nowadays, the combustion engine no longer has the monopoly under the bonnet. Electric cars are becoming a reality again in the 21st century.

G

iven the predominance of combustion engines right now, one tends to forget.

However at the dawn of the great car adventure, electric cars were developed alongside combustion models. At this time, the electric versions already stood out due to their excellent performances. So in 1899, the “Jamais Contente� (Never Content in English), an electric model dreamed up and driven by the Belgian Camille Jenatzy, is the first car to have broken the 100km/h barrier in 1899. However, problems storing energy drastically limited the development of electric cars compared to the traditional combustion versions.

As modern techniques are slowly enabling this problem to be overcome, electric cars are now coming back to the forefront.

How does it work?

Technically an electric car remains reasonably simple compared to an internal combustion model that requires many fairly complicated peripheral components. This means that if the battery is not taken into account, the development, production and maintenance costs of electric cars drops significantly. Normally, an electric car includes three main modules: an electric motor, an

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The flexibility of electric technology coupled with the disappearance of bulky mechanical modules enables the development of a new generation of electric models like the Opel RAKe. electronic power unit and an energy storage space.

Widely used in industry, electric motors have the distinctive characteristic of providing a much higher performance than combustion engines (heat loss and friction are virtually nil). It has a performance of around 90% compared to only 35 or 40% for petrol and diesel engines.

The electric motor’s superb uptake and its superior torque also enable the cars to do without a gearbox unlike traditional combustion engines.

The faster the motor turns (rotation speed easily exceeds 12,000 rpm), the faster the car goes. Nor does going in reverse in an electric car involve the need for complex gears:

simply run the motor in the opposite direction... Other practical advantages: the weight and size of an electric motor are less than those of an equivalent combustion unit and in particular enable the birth of a new type of car (see inset).

Power electronics The second vital component on board an electric car, the power electronics includes various modules. The charger adapts the current received by outside input (domestic socket or charging terminal) to acceptable characteristics so as not to damage the battery. The inverter is used to transform the direct current supplied by the battery into alternat-

Special Edition dedicated to Green Fleet Management

-

Lacking flexibility, due to a considerable charging time, the electric technique does not allow for the unexpected.

-

Due to the still astronomical cost of producing the batteries, the technology remains expensive. The battery rental system in particular

by Renault enables, Make/Model up offered to November 2012 however, having a more interesting sale price.

2500 In spite of the clear advances compared to previous electric cars, the range of the latest models remains limited 2000and above all very variable depending on weather conditions and driving style.

The resale value of electric cars is difficult to assess.

1500

RENAUL FLUENCE

PEUGEOT ION

CITROEN C-ZERO

NISSAN LEAF > 2331

1000running costs for electric The cars are lower than those of500comparable combustion vehicles.

> 625

The running costs for electric cars are lower than those of comparable combustion vehicles.

An electric car requires a special recharging infrastructure (in a garage), professional (in one’s place of work) and/or public (network of recharge terminals)

SMART FORTWO

Electric cars may have tax benefits and/or go into restricted traffic areas

-

> 745

Its driving enjoyment (smooth running, sound insulation) are highly significant for every day use.

Depending on the country’s recharging infrastructure, the electric car’s environmental status is of variable interest. Producing the electricity consumed by the car by a coal fired plant, a nuclear plant or a wind farm obviously does not have the same environmental impact.

> 1097

+ + + +

Disadvantages

An electric car does not release any polluting emissions directly on site.

> 1174

Advantages

0

Comparison new sales of full electric cars to business customers in Europe Make/Model up to November 2012

Make/Model - 2011

2000

2500

2000

0

EV

> 923

> 881

NISSAN LEAF

SMART FORTWO

CITROEN C-ZERO > 1467

MITSUBISHI i-MIEV > 1476

SMART FORTWO

PEUGEOT ION > 1592

> 625

> 745

1000

500 RENAUL FLUENCE

PEUGEOT ION

> 1174 CITROEN C-ZERO

NISSAN LEAF > 2331

500

> 1097

1500

1500

1000

EV

0

EV

Make/Model - 2011 Source: JATO Dynamics, 2012

2000

FLEET EUROPE # 62

P.27

dossier I Green Fleet & Sustainability ing current needed to operate the electric motor. The interconnection box is for managing the energy supply necessary for correct operation of the various electronic modules.

For example, it ensures distribution of current at the right amperage to the various devices (motor but also windscreen wipers, lights, radio, air conditioning...) at all times.

Battery The backbone of electric cars, the energy storage module constitutes the most “problematic” point of the system. To envisage mass distribution of electric cars, it is essential to be able to have affordable, high performance batteries which last over time. Currently, lithium-ion batteries emerge as the best performance/size/price ratio. By way of comparison, they enable storing about 200 Wh/kg compared to 80 for a nickel-metal hydride module and only 25 for the old lead batteries. But this is significantly less than conventional fuels. For example, petrol has an energy density of 13,000 Wh/kg.

Even though they require a precise temperature control system to avoid any overheating and do not accept excessively fast charges, lithium-ion batteries have other advantages.

Like total absence of “memory” (it can be recharged at any time without the risk of premature deterioration) or maintenance. On average, manufacturers guarantee the batteries’ life for six to eight years. But generally with only 80% maximum capacity. So over the years you would expect to lose precious kilometres of range. Other even more high performance batteries, like the “lithium-air” for example (12 times more efficient than lithium-ion) are still under development.

Additional proposal In practice, driving in an electric car is effortless. In fact, they are even a lot more relaxing and enjoyable to handle than conventional cars: no noise, no gear change to deal with,

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The “Jamais Contente” is the first electric model to have broken the 100 km/h barrier and this in 1899. (Source: D’Ieteren, Belgium)

rapid acceleration... Nevertheless, it is undeniable that combustion engines have the advantage in regard to flexibility of use. After a journey of between 80 and 150 km, in effect you have to immobilise your electric car for 6 to 9 hours for recharging. However, in some cases (in particular for regular and planned trips with return to a recharge point) the electric solution should not be overlooked. If used well, it can enable an attractive reduction in running costs.

New model design The flexibility of electric technology coupled with the disappearance of bulky mechanical modules enables

the development of a new generation of models halfway between scooters and traditional city cars.

On the market, you already have the original Renault Twizy. But in view of the latest prototypes unveiled, other manufacturers are ready to invest in the sector: Opel with its RAKe, Volkswagen with its NILS, Peugeot with its BB1, Suzuki with the Q Concept, Nissan with the successor to its Pivo... In addition to decreasing polluting emissions in cities, these new types of machine will enable finding a parking space more easily but also threading through the traffic more efficiently in city centres. ■ Jean-François Christiaens

Electric vehicles on the market – 2012 & 2013 •B MW i3

• Peugeot Partner

•B ollorée BlueCar

• Renault Twizy

•C itroën C-Zéro

• Renault Fluence

•C itroën Berlingo

• Renault Kangoo

•F ord Focus

• Renault Zoe

•M ercedes B-Class

• smart Fortwo

•M ia

• Tesla Roadster

•M itsubishi i-MiEV

• Tesla Model S

•N issan Leaf

• Volkswagen Golf

•P eugeot iOn

Special Edition dedicated to Green Fleet Management

dossier I Green Fleet & Sustainability

Advantages

Are you ready for hydrogen?

Hydrogen is definitely the fuel of the future. The technology is already well advanced, but the first mass produced models are not expected before 2020.

H

ydrogen is a readily available gas here on earth, but it is always found along with another chemical element (H2O, for example). So it has to be isolated. The most commonly used technique is producing hydrogen from water, using the electrolysis principle, which uses electricity to cancel the chemical link between water’s constituent elements and break it down into hydrogen and oxygen. From an environmental point of view, the process only makes sense if the electricity required for electrolysis is produced from renewable energy (wind, solar) and not fossil fuels.

Once produced, hydrogen can be used in the automotive field in two forms: in liquid form to power an internal combustion engine (a technique that has in particular been studied by BMW for several years) or in gas form to produce electricity for supplying an electric motor (this is the “Fuel Cell” principle). The latter means of use has the most to offer in future.

Car manufacturers are studying the wider development of fuel cell vehicles, but mass production will not take place before 2020. Here the new Hyundai ix35 Fuel Cell.

+ + + +

Excellent energy efficiency Limited polluting emissions Good range (often over 400 km) Now with compact installation

Disadvantages

-

Very expensive technology (car, fuel) Hydrogen distribution network to be built Fuel cell life span?

How does it work?

The fuel cell principle has been known since the 19th century and consists in creating a reaction between hydrogen and oxygen to produce electricity and water (so actually it is the opposite phenomenon to hydrolysis...) The oxygen needed for the chemical reaction is drawn directly from the ambient air, while the hydrogen needed is stored on board, most often in gaseous form, in a pressurised tank (350 to 700 bars) at ambient temperature.

The electric current generated is used to power an electric motor which drives the vehicle (the latter only giving off water vapour). A fuel cell vehicle is therefore actually an electric vehicle that produces its own electricity and therefore does not require an external electric supply. So, in fact, a mini-power plant!

When?

Many manufacturers are studying Fuel Cell vehicle development. Some models are already on European roads, as part of captive fleets, like the Honda FCX or Mercedes Class B Fuel Cell.

General Motors and Kia are also actively studying this technique, likewise Hyundai, who has just announced that by 2014 it would launch a short production run (1,000 vehicles) of its ix35 Fuel Cell. But there is no doubt that mass production of Fuel Cell vehicles will not take place before 2020. And at a very high price... ■ Olivier Maloteaux

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dossier I Green Fleet & Sustainability

Give me a C, an N and a G City gas or CNG can also be used to run our car fleet vehicles. This fossil fuel definitely has qualities, but currently (too) little is known about it in Europe.

F

irst and foremost, let’s get things straight: LPG and CNG should not be confused. LPG is a by-product of oil refining (liquefied petroleum gas), composed of propane and butane. CNG (Compressed Natural Gas), is natural gas (mainly constituted of methane) compressed to approximately 200-250 bars.

CNG cars on the market – 2012 & 2013

• Audi A3 (1.4 litre turbo, 110 bhp) • Fiat Punto Evo & Qubo (1.4 litre, 77 bhp) • Fiat Panda & 500 L (0.9 litre turbo, 80 bhp) • Fiat Doblo (1.4 litre turbo, 120 bhp) • Lancia Ypsilon (0.9 litre turbo, 80 bhp) • Mercedes B 200 NGT (1.8 turbo, 156 bhp) • Mercedes E200 NGT (1.8 litre turbo, 163 bhp) • Opel Zafira & Zafira Tourer (1.6 litre turbo, 150 bhp)

How does it work?

CNG cars are bi-fuelled petrol/natural gas vehicles. In order to operate with CNG, the engine has to be adapted. The transformation is carried out by the manufacturer and leads to an additional cost of about € 3,000 compared to a conventional combustion engine vehicle. But this additional cost will pay for itself by savings made at the pump.

CNG is stored (in gas form and not liquid like LPG) in a special built-in tank under the car’s floor (which does not take up any boot space). The tank is composed of highly resistant gas bottles. In addition, CNG is lighter than air: so, in the event of a leak, it escapes into the atmosphere without

Advantages

+ +

In countries where it is distributed, CNG costs less at the pump than petrol or diesel. In Germany, for example, CNG is about 50% cheaper than petrol.

Natural gas is a more environmentally friendly fuel than diesel and petrol. Its combustion reduces fine particle and nitrogen oxide emissions to practically zero. CO2 emissions are also lower.

+

Driving enjoyment is identical to that of a vehicle with a conventional combustion engine.

+

CNG supply to stations is ensured by the conventional city gas network, so it is possible to fill up with fuel at home or at the office, by installing a specific refuelling system.

Disadvantages

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Additional cost of transformation on purchase.

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CNG is widely distributed in Germany and Italy (more than 900 pumps in each of these countries) but however remains poorly distributed in the other European.

stagnating under the vehicle, which eliminates any risk of explosion. Furthermore, cars operating on CNG can be parked in all underground car parks. ■ Olivier Maloteaux

• Opel Combo (1.4 litre turbo, 120 bhp) • Seat Mii (1.0 litre, 68 bhp) • Škoda Citigo (1.0 litre, 68 bhp) • Volkswagen Up! (1.0 litre, 68 bhp) • Volkswagen Golf (1.4 litre turbo, 110 bhp) • Volkswagen Touran & Passat (1.4 litre turbo, 150 bhp) • Volkswagen Caddy (2 litre, 109 bhp)

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In Europe, CNG is only widely distributed as a car fuel in Germany and Italy.

peugeot.com

AUTO MODE

200 BHP

ELECTRIC MODE

4 WHEEL DRIVE

DRIVE IN 4 DIMENSIONS

3,6 L/100 km - 95g CO 2 /km* * Combined consumption

NEW PEUGEOT 508 HYbrid4

dossier I Green Fleet & Sustainability

Green tyres for better consumption and better safety

No, fuel consumption does not only depend on vehicle type or driving style. Tyres also play a key role, accounting for one full tank in five.

I

............................................................................ t’s no secret: filling a car hits the wallet harder each time. And this is precisely why we are increasingly looking for high-performance vehicles with the lowest possible consumption. “For various reasons, both manufacturers and consumers are now demanding environmentally-friendly tyres with a positive impact on a car’s fuel consumption”, JeanPierre Jeusette explains, Technology Director of Goodyear’s Tourisme tyres. “Up to 20% of a car’s fuel consumption can be saved through tyres.” Why? Irregular surfaces deform tyres as we travel; the rubber heats and absorbs the energy which is thus no longer available to drive the vehicle. We call this effect rolling resistance.”

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Combining a short braking distance on wet ground with low rolling resistance is a real challenge for parts manufacturers.

Special Edition dedicated to Green Fleet Management

Rolling resistance... this is one of the major concerns of tyre specialists and a constant battle, particularly with the new tyre labelling. Reducing it is no easy task. For it has to be achieved without being to the detriment of other parameters such as braking performance and road grip. “By acting on the structure, the conflict of objectives between rolling resistance and easy handling can be affected; the rubber compounds can help solve the problematic issue of ensuring low rolling resistance yet short braking distances on wet ground, whilst a different shape tyre can increase mileage performance and the profile can have a positive impact on braking on wet ground”, Continental explains.

For Lanxess, the specialised chemistry group famous for developing rubber for the tyre industry, it is a real challenge.

“The softer a tyre, the better it adheres to wet ground. But as a general rule, softer tyres wear out more quickly. By perfecting suitable synthetic rubbers, manufacturers are able to solve part of the problem”, Christoph Kalla explains, Marketing and Research Director of the Butadiene Rubbers Performance Business Unit. “Resistance to cracking and fissuring, elasticity and resistance to abrasion are also improved.”

And on the market?

This magic triangle, an association of three of the most important tyre characteristics (wear, wet grip and rolling resistance), is what lies at the heart of green tyres. Some examples? At Michelin, the Energy Saver + fulfils these various conditions. The Green X logo designates green tyres with excellent energy performance (energy efficiency is directly linked to rolling resistance). At Continental, the VandoEco helps utility vehicles achieve low fuel consumption. For its part, Bridgestone has developed the Ecopia H, which leads to approximately 20% lower rolling resistance than previous models, resulting in a 4.4% reduction in consumption. Finally, Goodyear offers the EfficientGrip with 13% lower rolling resistance and 1.9% less fuel consumption.

Clearly, these tyres come at a price. “A set of green tyres can cost anywhere between 80 and 200 euros more than standard tyres”, Lanxess explains. “If we consider average fuel consumption of six litres per 100 kilometres, green tyres save us up to 0.5 litres every 100 kms. If we then take an average distance travelled of 15,000 kms per year and a fuel price paid of € 1.60 per litre, the cost of the purchase has paid for itself in two years. If all the world’s cars were to be equipped with these tyres, we would save up to 20 billion litres of fuel per year and reduce our annual CO2 emissions by 50 million metric tonnes.”

A more substantial initial investment, therefore, but one which can be recovered in the medium-term, a little like solar panels. Green tyres therefore constitute real added value for consumers. “According to vehicle type and driving style, the reduction in rolling resistance results in savings of around 100 euros in fuel per year”, explains

Labelled tyres in Europe New European labelling legislation, which came into force last November, seeks to ensure that consumers are given objective data on certain aspects of tyre performance: wet grip, energy efficiency and noise level. Energy efficiency is directly linked to rolling resistance and consequently fuel consumption. It is represented by a letter, in a similar way to electrical appliances.

The 7 efficiency classes range from A to G, resulting in savings of up to 7.5% of fuel and CO2 emissions reduced accordingly. Parts manufacturers welcome this compulsory initiative that allows consumers to have greater awareness of higher-performance tyres, increasing transparency and stimulating competition between tyre manufacturers. professor Horst Wildemann, Director of TCW Transfer Centrum. “Tyres with low rolling resistance are of major interest to the owners of light utility fleets travelling in urban areas with significant ecological and economic benefits”. Two additional advantages of green tyres are effectively higher mileage and quieter driving thanks to the special irregular rolling bands and an optimised rubber compound.

With annual growth standing at 10%, green tyres are the quickest-growing segment in the tyre industry. ■ Nathalie Pierard

1

2

1. Continental has developed the VancoEco, a tyre that has been especially designed to help light utility vehicles reduce their fuel consumption.

2. The Goodyear EfficientGrip is an environmentally-friendly tyre that reduces fuel consumption whilst extending its useful life.

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dossier I Green Fleet & Sustainability

Telematics, the catalyst for sustainable change Achieving fuel and emissions savings requires a change in strategic thinking, day to day fleet management and vehicle use. Telematics can provide fleet managers with the data needed to make change happen. There is the potential for a big win. Research by Machina, analysed by GSMA, suggests that better fleet management practices across Europe could lead to a 435 Kilotonnes (Kt) CO2e saving.

F

alling emissions is good for the bottom line. Giles Marginson, UK Sales Director, Tom Tom Solutions, said “The economic environment is good for the natural environment”. Olivier Gautier, Marketing Corporate Sales Renault, agrees with Giles Marginson. He said, “there are positive impacts on costs, driving styles and the environment.”

The ROI The challenge and opportunity for fleet managers is realising the potential for fuel and emissions reductions.

A number of techniques, including re-engineering business systems to reduce travel and incorporating fuel efficiency criteria in procurement strategy, can reduce costs and emissions. The third area of opportunity, the use of the vehicle, is where telematics systems can add value.

The opportunity Efficiency opportunities can be split into 3 categories.

To maximise return, the holistic integration of a telematics solution is where added value can be achieved. Olivier Gautier, Marketing Corporate Sales Renault, commented for example, that “a 5% saving on fuel use per km could be achieved through fleet management telematics and this could be increased to 10% when driver training solutions are incorporated.”

Awareness & performance Where is and how is your fleet performing right now?

Telematics can provide the answer. Reports provide information ranging from maintenance planning through to ranking the most economically efficient drivers and

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vehicles, as well as giving suggestions on vehicle optimisation. Information on preventive maintenance and planning data, enabling maintenance requirements to be transmitted to the garage, optimises scheduling and reduces downtime. In turn, vehicles are peak condition and are able to maintain performance.

Justin Patterson, Head of Fleet Management at MITIE Group PLC, commenting on implementation of Zenith’s Pulse solution, said “We now have the ability to interrogate any data on our fleet ourselves at any time and can view and download comprehensive graphs and tables.

The system has already analysed our data, we just click on each tab and we can instantly see our CO2 figures, vehicle rental costs, accident statistics and maintenance figures for any and every vehicle on our fleet. We know exactly what the fleet is costing us on a day by day and vehicle by vehicle basis, what the trends are and which areas can be improved upon.”

Route optimisation Journey planning has been around for some time as has route optimisation, but its getting smarter and smarter. Frank Pauli, Vice President Map Division EMEA at Navteq, explained that, “Our Advanced Driver Assistance Systems, with their in detail mapping of geography like height and slope analysis of roads, leads to very accurate fuel savings.” The factors that influence fuel efficiency are increasingly being incorporated into route optimisation solutions.

A Vodafone Carbon Case Study on Zenith Hygiene Group’s Fleet, conducted by independent consultants ERM following the introduction of Tom Tom’s LINK 300; PRO7100;

Special Edition dedicated to Green Fleet Management

Telematics can add value to the sustainable use of the vehicle. (Copyright: NNG)

and the ecoPLUS products quantifies the return on investment. The ERM report states that, “The results show an estimated yearly net saving of nearly 600 tonnes of CO2 per year…...

This is equivalent to a 28% saving in CO2 emitted. In financial terms, it is estimated that if ZHG continue at the current level of fuel efficiency, they could save in the region of £218,000 (€267,874) per year on fuel costs, with a further potential £50,000 ((€61,436) on reduced maintenance costs. Putting these numbers in terms of financial payback periods, a cost outlay of £45,900 (€56,404) for the TomTom units is recouped within three months.”

Driver improvement Driver performance needs to improve alongside strategic fleet knowledge and route optimisation to maximise efficiencies. Presenting drivers with advice in real time presents is one way of achieving behavioural change. More and more OEMs have in-dash multimedia tablets that provide eco-driving tips, analysing the way the car has been driven over a given itinerary.

Make it happen Change involves people. The people part of the telematics equation should be ignored at a corporation’s peril. Technology may provide the answer, but people are needed to explore new solutions, identify opportunities, manage a solution’s implementation and optimise it the potential is realised.

People need to understand what is happening, the purpose of a change and how change is going to be achieved. By understanding this they can then play an active part.

A fleet manager is the agent that binds together the opportunities that telematics presents and has the pivotal role to play in communicating the potential for change. ■ Jonathan Green

Estimated Greenhouse Gas emissions savings, by sub-sector in Kt CO2

1,600 1,400 1,200

376

Total smart transportation and logistics = 1,900 Kt CO2e

Latin America Europe: East

1,000 800

Asia Pacific

435

Europe: West US and Canada

600 400

Africa Middle East

646

200

115 106

0 Fleet management - road

Traffic volume monitoring, Connected road signs (incl variable speed limits and variable lanes), Traffic lights

Information http://www.gsma.com/publicpolicy/wp-content/uploads/2012/06/Green-Manifesto-2012.pdf (Page 20) ; Source: Machina Research, GSMA analysis

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dossier I Green Fleet & Sustainability

Even in car leasing you can’t argue with football legends Automotive leasing continues to grow in Europe, despite difficult economic conditions. Still providing close to a third of all new cars in Europe, the leasing industry is ideally positioned to help phase out heavily polluting cars from urban areas. Which types of vehicles and new leasing models will ultimately prove successful depend on a number of factors, including market idiosyncrasies and measures taken by the European Commission, but it is clear that the leasing industry plays and will continue to play a major role in “green” solutions.

L

easeurope’s 2012 survey of the European leasing market showed that vehicle leasing volumes rose by 3.5% compared to the year before.

This sector’s performance is especially noteworthy when considering that total leasing volumes contracted by 1%. Despite the difficult economic conditions, vehicle leasing is clearly an attractive proposition. With economic uncertainty remaining a fact of life for 2013, it is hardly surprising that so many businesses continue to use leasing to finance their transport needs.

For a fixed monthly payment, clients get the use of a car or van for an agreed duration and mileage that suits their business. Furthermore, leasing eliminates any concerns about what the vehicle is worth at the end of the agreement. As long as they have not exceeded the contracted mileage and the vehicle is in a fair condition, it is returned at the end of the contract, with no additional cost.

Clients can also ask their leasing company to take care of nearly every hassle associated with car and van ownership, be it maintenance, servicing or replacement vehicles.

The economies of scale that leasing

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companies can draw upon mean that they can provide these services at excellent value, which is very useful at a time when vehicles are becoming ever more expensive to operate.

While the share of hybrids is steadily increasing, the same cannot be said for full electric vehicles.

Hybrids yes, electric cars no According to Leaseurope’s estimates that are based on its member data almost 32% of new cars across Europe are provided via leasing companies.

This means the industry is ideally positioned to help phase out heavily polluting cars and encourage the uptake of cleaner and more fuel efficient vehicles. This is an issue becoming increasingly important with governments and municipalities across Europe as they rush to meet new air

quality standards set for 2015. In the UK for instance, the average newly registered lease car has 6-7% lower emissions than the average for all cars sold.

Continued pressure to cut transport costs have also led to changes in the composition of leased car fleets, where engine downsizing looks to be the new trend. Changes to company car taxation regimes focusing in particular on reducing green house gas emissions have reinforced this even further.

While the share of hybrids in leased fleets is steadily increasing, the same cannot be said for full electric vehicles. Overall sales volumes remain extremely low for these types of cars and, even in countries where they are exempt from purchase taxes, the uptake simply isn’t there. In all likelihood, the lack of an adequate charging infrastructure, performance in bad weather conditions, as well as uncertainty surrounding residual values are contributing to this situation.

Having said that, the main shortcomings for an increased uptake of full electrical vehicles for the moment remain the ultimate range and flexibility compared to conventionally powered vehicles.

Special Edition dedicated to Green Fleet Management

The integration of energy efficient cars in leased fleets is impacted by taxation, incentives for vehicle purchas­es, fuel and maintenance costs, the agreement on charging standards, and differences in regional and economic develop­ment.

Only 10% At the beginning of November 2012, the European Commission presented an Action Plan for the automotive industry called CARS 2020. This Action Plan foresees measures intended to support the sector’s competitiveness and sustainability. Amongst others, advanced technologies and innovation for clean vehicles are to be promoted by sponsoring the deployment of infrastructure for alternative fuels (electricity, hydrogen and natural gas) on a technology neutral basis. Furthermore, in 2013 the European Union is also expected to agree on an EU-wide standard for the recharging interface for electric vehicles. Disappointingly, the much touted Horizon 2020 research fund, another initiative by the Commission, is likely to dedicate only one tenth of its 80 billion budget to transport, of which 2 billion will go to road transport.

The Commission also hopes to improve market conditions for the automotive industry by streamlining vehicle type approval procedures, addressing unfair competition in the automotive value chain and by attempting to further harmonise financial incentives for clean and energy efficient vehicles across the various Member States in a series of guidelines. These guidelines, expected to be released in the first half of 2013, will focus on technology neutral purchase incentives. Unfortunately, they will not address usage incentives, such as free parking for electrical vehicles, or the possibility for such vehicles to use bus lanes, which are likely to have a considerably more positive impact on the second hand vehicle market.

Leaseurope is the trade federation representing the leasing and automotive rental industry at European level.

More information at www.leaseurope.org

It is also important to keep regional differences in mind when thinking about the future of green automotive leasing in Europe. Southern European markets continue to show weak activity levels in equipment and vehicle leasing volumes. On the other hand, the Eastern and Central European markets, in particular Russia, are showing growth figures reaching up to 100%. The vehicle segments and engine sizes in demand in these rapidly growing markets, where vehicle penetration rates still remain relatively low, are very different from those in Western Europe. Continued differences in income, corporate and company car taxation, and even a basic issue such as the impact of low temperatures on vehicle battery performance in winter conditions, are not likely to lead to increased convergence in regional development and the types of vehicles in demand in the near future. Likewise, the success of new business models such as car sharing/ pooling schemes, which are currently being explored by most major automotive leasing companies, will depend on the regions in which they are being deployed.

Cruijff In conclusion, it would appear that the successful uptake of clean and energy efficient vehicles in leased fleets, as well as in overall car fleets, is dependent in equal measures on vehicle taxation, incentives for vehicle purchases and, more importantly, for lifetime utilisation, fuel and maintenance costs, agreement on charging standards, as well as differences in regional and economic development. How these variables will interact and to what extent they may give rise to knock-on effects, is difficult to predict today. However, the leasing industry will no doubt benefit from newly arising opportunities. As the legendary Dutch footballer Johan Cruijff once said “every disadvantage has an advantage”, the trick of course is to be the first to recognize which is which. ■ Richard Knubben, Senior Adviser in Automotive Affairs, Leaseurope

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dossier I Green Fleet & Sustainability

The different colours of green leasing Company fleets are going ‘green’ but what are their international fleet-owners asking the leasing companies for in concrete terms?

Three of the major international multi-brand leasing companies tell us how CO2 emissions stay on top of the fleet-owner’s green agenda but other elements like driver behaviour and insight in new pollutants are gaining interest.

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erhaps one of the most immediate issues, and one which shows just how quickly the market is changing, involves a concern for more than just CO2 emissions.

Fleet-owners have now understood, confirms ALD International, that CO2 emissions are not the only KPI in terms of green leasing. This means that increasing attention is paid to Euro norms, which take in local pollutant limits, such as NOx & particulates, which are a greater concern from individual city level to European Commission level.

Fleet-owners are therefore targeting vehicles complying with both low CO2 emissions and the latest European norms, which does not always mean selecting diesel powered vehicles. Vehicles showing both low CO2 emissions and complying with recent Euro norms are considered as most adapted to current taxation schemes.

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Fleet-owners have understood that CO2 emissions are not the only KPI in terms of efficient ‘green’ leasing.

Decreasing

Emissions of CO2 are a major concern nevertheless, and are diminishing, as Arval explains. Globally the CO2 emissions of leased cars are decreasing with different trends between world regions. Since 2009 the average decrease per country has been around 8%. Average CO2 emissions of leased fleets have now reached 137 g/km among the Top 7 European countries.

This means a 16 g/km improvement in 4 years, with the Netherlands being the fastest ‘greening’ country in Europe. In terms of deliveries, the average in the top 7 European countries is just above 130 g/km, showing an impressive 21 g/ km improvement since 2008 deliveries. To cite a specific example, one LeasePlan client has seen an emissions reduction of 24% over 3 years.

To really benefit, a long-term approach is required.

Special Edition dedicated to Green Fleet Management

Leasing companies are expected to provide expert advice to company fleet managers within the domain of alternative propulsion.

Next big thing… is mobility

Alternatives

The question of alternative propulsion is central to this topic. The general consensus appears to be that while there is a great deal of enthusiasm for the concept of electric cars, they remain to prove their suitability for company fleets.

Hybrid vehicles remain of interest, except in certain countries such as Germany where there is no particular incentive for these vehicles. It is also clear that leasing companies are expected to provide expert advice to company fleet managers within the domain of alternative propulsion.

In the words of LeasePlan, there is a distinct interest in electric and hybrid vehicles but the widespread inclusion of these vehicles has yet to materialise from a fleet perspective. This is possibly due to current technological constraints, infrastructure limitations and an uncertain costing model.

As leasing companies continue to gain experience in managing the leasing model for electric vehicles, and clients better understand how to utilise these vehicles, there will probably be an increase amongst fleets.

Eco-driving

The demand for driver training courses is on the rise across Europe, and in particular because they address two major concerns for fleet managers: safety and efficiency.

ALD points out that since both aspects of driving behaviour are addressed during these courses, it is difficult to understand which element of the training is initiating the decision. As it is more complex and expensive to organize ‘on track’ training courses, leasing companies are offering on-site solutions at client premises, including driving simulators and e-learning modules.

Arval also underlines the multi-factor aspect of driver training and points out that the objective is increasingly to combine both eco and safety during trainings days. ■

• From a pure car focus, fleet managers and mobility managers will more and more focus on the combination of various means of transportation, each of them bringing their own advantage in terms of efficiency. Such multimodal arbitration will require new tools enriching the vehicle experience. They will also provide additional information on alternative transport modes, measuring and optimizing the mobility of each employee, and not only vehicle mileage and TCO. We will then be entering the era of smart, new mobility. (ALD International) • The next big trend to come is the mobility issue.

Mobility solutions can be defined in various ways but are essentially aimed at providing users with a means of managing personal transportation requirements irrespective of mode – car, train, air or cycle – or purpose – business, personal or leisure.

For car users this can cover different options for vehicle provision including lease car, car-sharing or rental. It also provides the opportunity to crosssell both fleet customers and drivers a range of value-added products and services such as expense management, travel management, travel advisory, hire of vehicle accessories (e.g. for vacations) and financial services such as insurance. (Arval) • Trends come and go in the fleet industry, but there will be a continued and growing interest in mobility management, looking at efficient mobility options that go beyond cars. We also expect that telematics will gain in popularity and become a key tool in managing fleet costs. Basic telematics are still in development in relation to car fleets: however, this will play an important role over the next few years. There is still some uncertainty concerning the legalities of data usage and the protection of that data, but these will evolve as the focus on Telematics continues to increase. (LeasePlan International)

Tim Harrup

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Management I International Fleet Green Award 2012

The green, green fleet of Bayer Lutz Hansen and Bayer clearly know something about making a fleet more ecologically-friendly. At the Fleet Europe Awards in Cannes last November, the Lead Buyer Fleet Management heard his name announced as winner of the ‘International Fleet Green Award’, and that for the second time in four years. So just what convinced the 21-strong jury that Bayer deserved this prestigious title once again?

I

t would seem to make sense to start with the choice of vehicles. The CO2 targets are defined within all local policies, either using a bonus scheme on the budgets or through the car selection list in each country taking into consideration CO2 emissions as a decision criterion. A major example of this in practice within Bayer’s international fleets is Japan where the cars have been gradually replaced with hybrid cars as this is the best choice for local needs.

Elsewhere, in Turkey the selection list for field force cars includes vehicles emitting less then 109 g/km, while in Germany the motivational aspect of the CO2 emissions is translated into a direct impact on the driver’s car budget. Each gram per kilometre less adds additional money to the driver’s car budget, with the threshold at which the bonus starts having been reduced year on year since 2008. For field forces Bayer has now reached a target level of 120 g/km and for upper management it is now setting 155 g/km which will be reduced even further within the next years. Local customs are also taken into account: in Australia and New Zealand for example Bayer has reduced CO2 emissions by changing cars to diesel and setting a maximum of 200 g/km for petrol cars. Back in Europe, there is a regional car selection list with cars emitting less then 110 g/km and motivation is ensured by providing the right specifications for the business needs of the company car driver.

Green fits into CSR Green fleet policies are generally in line with company-wide corporate social responsibility programmes, and Bayer is no exception to this. Implementing a green policy, especially when it results in changing the selection criteria for cars, inevitably has to take into account the safety of drivers. Bayer is thus to change its policy within its home country of Germany towards a selection list for field force employees.

It now considers these cars more and more as tools of trade. But rather than going down the traditional route of only selecting low specified cars, the vehicles will have all the relevant safety features to ensure that they will support the driver wherever possible in terms of safety.

This in turn means that there will be no further options for the driver to select. Mandatory equipment at a global level includes ABS, hands free kit, NCAP rating of at least 4 stars, first aid kid, safety relevant air bags, and maximum available seat belts.

The vision of Bayer is to create a real sustainable choice from both ecological and economical points of view.

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Implementation Remaining with the question of those countries which may have traditionally opted for larger cars begs the question of how international implementation can be achieved. The implementation target set by Bayer is 100% although specific cases of car selection may lead to this being 80%. However, in these cases there may be

Special Edition dedicated to Green Fleet Management

Lutz Hansen can be truly proud of his second victory in four years in the category International Fleet Green Award. His victory is the fact that a permanent investment in sustainability leads to a cost-efficient and employee-friendly environment.

Bayer’s Fleet Passport

•S ector of activity: Health Care/ Crop Science and high tech Materials •C ompany’s presence worldwide: more than 280 subsidiaries •N umber of employees globally: 112,000 •F leet Manager: Lutz Hansen, Lead Buyer Fleet Management •T otal number of vehicles worldwide: over 24,555 compensation by other selections. It is still a reality in the USA that some pickups and large SUVs remain in the fleet that are not in line with the global approach. Other instances of room for improvement are for example Qatar, some cars in Canada, special vehicles in Africa and Central America.

When it comes to controlling the implementation of the policy, Bayer contacts those countries which are apparently out of line and asks for measures to get back on track; solutions are proposed and countries then implement the agreed steps to come back into line.

Looking ahead

For 2020 Bayer is currently setting global targets: for Europe it will take into consideration the EU target of 95 g/ km but it still has to calculate global effects of the ongoing discussions in the USA designed to encourage CNG. If fuel stations for CNG are sufficiently available Bayer will also adopt the use of these cars. A first basic overall draft of a global 2020 target will be published after the finalization of an impact assessment looking at future low emission mobility concepts, low emission vehicle concepts, market availability and certainly on the US decisions and trends of further regulation.

How it all operates The global Bayer Climate Program has been in operation since 2007 for all emission related processes within Bayer, including the environmental and safety aspects of the fleet. Within this, implementation is handled through the global car policy and carried out at a local level.

The green aspects of the fleet are also handled locally in order to take into account local social influences and requirements but the global car policy clearly indicates that the CO2 emissions have to be part of the local car policy either by the right car selection or by setting the right limits. There is a general safety policy in place at Bayer, and safety is always taken into consideration when car selections are made. Safety programmes including driver training are being tested at the moment.

Alternative vehicles and fuels No consideration of a green fleet policy can ignore the very topical question of alternative powertrains.

Bayer takes this topic seriously. The vision is to use more and more CNG cars where available to have a real sustainable choice from both ecological and economical points of view. This approach also specifically takes the usage profile into consideration. But ‘alternatives’ for Bayer means going as far as avoiding car usage altogether whenever this is feasible. This is where ‘green’ and

•F inancing method: mainly leasing, purchasing when necessary

‘mobility management’ start to coincide. A first approach within this respect has been the optimisation of limousine services in Germany where employees making the same trip are booked into one car instead of using two or more. Bayer states that the next step will be the usage of car sharing alternatives with low emitting vehicles to reduce operating emissions. Added to this are the lower levels of emissions and waste which result from using fewer cars. Further steps in this regard will be in the direction of end to end mobility solutions, to get the best for the traveller. This might mean inter-modal ‘green’ travel such as car-sharing at either end of a trip whose main element is a train, rather than the traditional method of making the whole trip alone in a car.

Within the Bayer Climate Program there has also been the introduction of video conferencing in the group in order to avoid travelling at all, by car or any other means. And all laptops are now able to be used for video conferencing. In addition to all of this, and where cars are still used, Bayer is looking at the alternative of car sharing schemes in order to move from an individual driver fleet towards a shared fleet.

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A happy Lutz Hansen at the Fleet Europe Awards 2012 in Cannes. One of the possible future solutions is the introduction of car sharing schemes, in order to move from an individual driver fleet towards a shared fleet.

Specific and concrete examples of the move to alternative fuels can be found in at least two countries: In Germany for example, Bayer has introduced around a hundred compressed natural gas vehicles into the fleet and built its own on-site CNG station. In Brazil – a country known for its adoption of alternative fuels – the fleet has been changed into ethanol-powered vehicles as far as possible.

Words from the winner

Watch the video interview with Lutz Hansen at the Fleet Europe Awards 2012 by scanning the QR-code or by visiting www.fleeteurope.com and go to Web TV, Forum & Awards 2012.

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Real measurement The discrepancy between manufacturers’ claims for CO2 emissions and fuel consumption, and the reality on the road, is beginning to make fleet managers look at the figures in a different way. For Bayer and Lutz Hansen this means switching on to real consumption measurement in the global reporting instead of theoretical values, something which the company has already started to do. But once again, this reflection leads to Bayer going even further: using alternative fuel sources to avoid CO2 emissions and taking into account the entire process from energy production to usage of the energy when considering the best ecological alternative, not merely looking at exhaust emissions. As a responsible employer living in the real economy, Bayer also evaluates the tax impact of all of its choices on the drivers and the company, another factor in the equation leading to the ecologically and economically best selection list per country.

Special Edition dedicated to Green Fleet Management

Integrated strategy

The Bayer green fleet strategy forms an integral part of the company’s overall sustainability approach. The objective is to leverage cost and green technologies and when a good match is found, to try and implement as soon as possible – balancing ecological, economical and societal needs. When the Bayer Climate Program started in 2007, the target for fleet was a 20% CO2 reduction until the end of 2012. This was achieved nearly one year in advance in the beginning of 2012. The new plans for 2020 are intended to ensure that the good results from the ECOFleet initiative will continue to reduce the CO2 emissions while optimizing the fleet portfolio and the running costs.

Bayer’s global car policy indicates that the CO2 emissions have to be part of the local car policies.

Working together The best programmes in any domain have to take into account certain realities. Firstly, that nothing can be achieved without the support of partners, and secondly that it will not always be either easy or immediately accepted. For Bayer this has been true of its entire fleet policy including the green aspect. In many cases it has found itself driving new approaches into the countries that have to be explained in details many times over until they are implemented. This causes many communication and awareness issues that take time, but in the end the company states that it gets where it wants to be – more sustainable. Some of its ideas are even causing reluctance on the suppliers’ side as it strives to change the entire process, which means finding partners to implement certain ideas as pilot, but the selected suppliers are willing to support the process and follow the path forward because Bayer has always been able to prove a win-win situation. ■ Tim Harrup & Steven Schoefs

Lutz Hansen impressed the jury of the Fleet Europe Awards 2012 with his comprehensive insight in the car fleet management strategy of Bayer.

The jury’s thoughts

• Very well structured presentation • Truly global program • Clear link with corporate eco strategy • Global car policy in collaboration with HR / Finance / Purchasing • Reporting dashboard showing facts & figures

With the support of

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Management I International Fleet Mobility Award 2012

BNP Paribas Fortis, where Green and Mobility become one To win the International Fleet Mobility Award 2012, you have to have a strong case to put forward. And this is exactly what Wim De Wit, Human Resources Director Retail and Private Banking, and Wim Schellekens, Global Lead Buyer, at BNP Paribas Fortis did. Designing a mobility plan for an entire company, not just the ‘chosen few’ is a remarkable task, which has been undertaken by BNP Paribas Fortis with success.

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he BNP Paribas Fortis employee mobility strategy is encompassed in an ambitious plan called the ‘Green Mobility Plan’, (GMP) and all three words are equally important. When considering the major elements of this plan which convinced the jury that its sponsors Wim De Wit and Wim Schellekens were worthy of this Mobility award (and even of second prize in the category International Fleet Green Award), it is therefore not possible to separate the notion of mobility from that of green. The two marry perfectly together to form a coherent whole.

While there is a great deal of emphasis on avoiding the use of vehicles in the BNP Paribas Fortis policy, cars are clearly still an important part of the equation. And this is reflected in the choice criteria for the vehicles. The majority of the cars in the GMP project are capped at 115 grams CO². For staff members who already have a company car, if at renewal of the company car the employee chooses a car of a lower grade (less CO²), then this is compensated via various measures – staff members giving up an allocated parking space receive a free railway subscription instead.

made available to suit different needs. The GMP therefore sets three levels of option, each with a title: • Green Manager – manager without a car + use of public transport • Green Driver – manager who takes a smaller car + mix with public transport • Green Traveller – Manger who gives up dedicated parking space and goes for public transport funded by the company The motivation The context of this project was the need for a complete reorganisation of the rewards programme, taking into account the fact that in a bank, staff costs represent the most important part of the cost structure and need to be kept under control. So when redesigning the rewards structure BNP Paribas Fortis decided not to make it less attractive, but to reschedule various elements. It launched a cafeteria plan in which there are different options and choices. In this case the choice is between cash, a bonus pension plan, and a mobility package. The mobility package involves a car or another mobility solution, and is resolutely green in concept. It aims to attract the best people in the market and especially to retain the best people. The bank has hired over 3,500 people in the past two and a half years, and has invested a lot in improving the quality of the people hired. There are a lot of young people, so it was looking to offer them something

The company is trying to make its employees, including management level, think responsibly where the use of a car is concerned.

GMP: three categories When defining the plan, BNP Paribas Fortis realised that there are various different levels of mobility requirements within the company, and that options had to be

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Special Edition dedicated to Green Fleet Management

Wim De Wit and Wim Schellekens can be proud of their International Fleet Mobility Award 2012. “It is not just the company mandating green cars, but the people themselves who are asking for them.”

BNP Paribas Fortis’ Fleet Passport • Sector of activity: Banking & Financial Services

• Company’s presence worldwide: 80 • Number of employees globally: over 200,000 • Fleet Managers: Wim De Wit (HR Director Retail & Private Banking), Wim Schellekens (Global Lead Buyer Corporate Services)

attractive.

BNP Paribas Fortis obviously had to start from the existing position, which was, in common with most companies, a car fleet. But the company wished to show that it was environmentally friendly, so the choice was limited to ‘green’ cars with CO2 limits. Most categories are limited to 115 grams per km, with higher categories at 120 grams. Then it developed an extension to the mobility package which is a car-sharing programme set to start at the beginning of 2013 along with Peugeot and their ‘Mu’ programme. BNP Paribas Fortis also points out that by offering new cars, it is contributing to replacing older, higher emitting cars. Parking spaces are not given and neither are fuel cards, which is intended to lead to people not using their cars any more than in the past.

This is especially true as BNP Paribas Fortis offers to all people the reimbursement of home-work travel by public transport in combination with their car.

Non company car employees One of the most far-reaching elements of the Green Mobility Plan was that it was initially intended for a limited employee population, but expanded to the whole of it very quickly. The choice that people have is to put part of their variable salary into one of the elements of the GMP. Of the 16,500 or so employees of BNP

Fortis, 9,000 indicated that they were interested in a car. Because 9,000 cars were therefore to be involved, BNP Paribas Fortis decided that for logistical reasons it would go with one leasing company. It launched a call for tenders and Arval came in with an attractive price. More than 4,500 cars had already been ordered by the end of 2012. This is a substantial benefit in terms of the environment, because employees who opt to ‘lease’ a new car contribute to the rejuvenation of the entire fleet, especially as they may be giving up not a relatively recent company car, but potentially an older private car. The mobility mixture involves combining a car with public transport and the ‘Mu by Peugeot’ system, so as BNP Paribas Fortis points out it really is

• Total number of vehicles worldwide: +/- 20.000 of which a possible 11.000 in Belgium • Financing method: operational leasing a mobility programme which may even go as far as bikes and scooters – the company is trying to expand the scope. It will also be involving Europcar and Carbox. The purpose is to change mindsets. BNP Paribas Fortis realises that cars are a major part of the budget for many families, which is why offering cars in a cafeteria scheme was logical, but it is not the intention that people use these cars to come to work, and increase traffic jams! In Brussels, where BNP Paribas Fortis has its headquarters and main offices, along with numerous branches, 68% of the personnel come to work by public transport.

Wim Schellekens, Global lead Buyer at BNP Paribas Fortis: “Management has the possibility of giving up a dedicated parking space in return for public transport use.”

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Attractive to managers There are around 1,500 management cars in the fleet, so BNP Paribas Fortis decided it should do something here too. It reduced the maximum CO2 emissions and also offered managers the option of taking a smaller car, which is where ‘Mu by Peugeot’ comes in. If they opt for a smaller car – for example a Mini instead of a BMW 5-Series – the rest of the car budget can be used within the Peugeot scheme. This enables the managers to take a larger car for going on holiday, or even a small van for doing some work in the house during the weekend… Then there is a category of managers who opt out of a car completely and here the company offers a very good alternative, which is car-sharing using some models kept in the Brussels car parks. This will probably involve both electric and hybrid cars. This element of the scheme could be extended to anyone who has to drive on business and who would normally be reimbursed for using their own car. They can use these green ‘pool’ cars. So a whole change of mindset is involved – using cars differently, using shared cars and smaller cars, electric and green cars… The company is trying to make its employees, including management level, think responsibly where the use of a car is concerned. It believes that where managers who opt for a smaller car and a mobility budget are concerned, they may even decide to get rid of the second family car, because their new mobility arrangements make having two cars unnecessary.

Retaining choice One of the central points of the ‘car’ element of the GMP is that the cars are obviously green. BNP Paribas would have liked to go lower than the 115/120 gram limit, but does not believe that the current supply situation gives enough choice below this limit. It is on this point that account has to be taken of the fact that as people are ‘financing’ their car them selves (via a partial salary sacrifice), they have to have some choice. But it has been very pleasing for the sponsors of the plan and for the company to note that it is not just the company mandating green cars, but the people themselves who are asking for them. Together all sides of BNP Paribas have made and are still making great efforts with this plan to bring down CO² emissions. ■

Wim De Wit, Human Resources Director Retail and Private Banking at BNP Paribas Fortis: “We hired a lot of young people, so we were looking to offer them something attractive.”

Tim Harrup & Steven Schoefs

The jury’s thoughts The jury was especially impressed by fully detailed and well balanced mobility programme offering different alternatives, replacing a conventional car policy, amongst other factors. The fact that this flexible ‘cafeteria plan’ is open to all employees, and not just those who were already entitled to a company car, was also a very strong point. The advantages of this type of forward-thinking project in terms of attracting and retaining staff also weighed in favour of BNP Paribas. And clearly, with 9,400 cars ordered during 2012 and 2013, the Green Mobility Plan is extremely popular with the bank’s staff.

With the support of

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Words from the winner

Watch the video interview with BNP Paribas Fortis at the Fleet Europe Awards 2012 by scanning the QR-code or by visiting www.fleeteurope.com and go to Web TV,Forum & Awards 2012.

Special Edition dedicated to Green Fleet Management

Management I IFMI

The Road Map to go Global To optimize the management of their respective fleets, fleet managers are now starting to look beyond the European borders. During the IFMI Session on Global Fleet Management, the 23 participants consolidated their views around the necessary steps to take when you want to position your fleet management at a more global level.

1. Stakeholders & Objectives • Identify your internal & external stakeholders • Define the strategic & operational objectives of your global project • Get the mandate to go global and obtain an executive sponsor.

2. Team & Project structure • Set up a steering committee • Define roles & responsibilities of project team members • Define the global project and the structure • Align the project with the business objectives of going Global 3. Strategy & policy • Look at the level of globalization: what to carry out globally,regionally or locally?

• Examine how to engage local stakeholders in the global fleet project • List the success factors of the global fleet project to stakeholders 4. Data Collection • Setting up the data baseline for future measurement of achievement • Review and assessment of the current policy and the fleet operation • Data gathering & benchmarking: o Internal: vehicles in scope, car entitlement, financing methods, countries involved & ownership, existing supplier input o External: getting an overview of the market landscape • Decide what you are going to buy and how you will buy it

We have the pleasure to present this ‘Road Map to go Global’ to you. This road map starts with the assumption that there is a corporate willingness to go global. There are 10 categories with one recurrent element in each of the categories and that is Communication. You have to communicate each step that you have undertaken to your stakeholders.

5. R efine strategy & policy definition •R econfirm or adapt the strategy and policy based upon data collection results •D efine how to engage local stakeholders in the global fleet project • Reconfirm what you are going to buy and how you will buy it 6. Planning • Set priorities and milestones • Examine and create structure areas in your global fleet management: OEM, Funding, Insurance…

• Create a clear timeline • Define the roles & responsibilities at an operational level • Look at future • Inform the Legal Department to look at contractual issues 7. Tender • Check the financial risk situation of partners and suppliers • Assess and validate the suppliers’ capabilities • Draft a detailed service specifications to ensure a clear understanding that will attract the correct responses when you issue • Agree on a contract template capturing standard clauses such as the Foreign Corrupt Practice Act (FCPA) to ensure supplier compliance • Consider the use of e-tools as part of the procurement selection process 8. Implementation • Define the implementation processes at global, regional and local levels

• Define the exact role that the service provider(s) has/have to play • Define the timing for implementing the processes • Keep in mind the necessary internal alignment of the new policy rules • Ensure effective management of supplier relationships • Inform the works council in time • Ensure transparent communication 9. M onitoring & Measurement • Find out exactly what you want to know in your reporting • Set up a tangible data definition, so that you use the correct data • Check the defined KPIs • Quantitative reporting • Qualitative reporting • Check the compliancy of the data 10. Control & Improvement • Put control mechanisms in place to remain informed about SLAs and KPIs •G et feedback on processes and intermediate results and share it with the steering committee Be open to further improvement ■ Steven Schoefs

The International Fleet Managers Institute (IFMI), in partnership with Fleet Europe and leading industry players, organizes professional training seminars for fleet managers with an international scope. The next session will be organized in Spring 2013 in Brussels. More information on www.fleeteurope.com/ifmi

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MANAGEMENT I Car Policy

Seven steps to environmental sustainability The relationship between economic and environmental efficiency in fleets has been proven. Implementing an environmental policy does not simply deliver ‘green’ returns but can have positive impact on the bottom line.

This win-win scenario means that environmental awareness has cemented itself as a KPI in fleet management in the last few years.

We have put together seven steps that act as a guide to measuring, managing and mitigating the environmental impacts of fleet operations.

1

Stakeholder engagement Does your company have a sustainability, corporate responsibility or environmental strategy? If so, what aims and objectives are there, what targets exist for the company and are there any targets for travel and fleet? If there is a programme, identify who is the programme lead. This person may be able to offer expert insight, provide support and resources and help to communicate the fleet environmental strategy to others.

This provides a framework for taking action and allows the fleet manager to engage with stakeholders who are tasked with improving the company’s environmental performance. This support can prove helpful in many ways from gathering data, gaining management buy in and supporting the implementation of the policy.

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2

Implementing an eco-friendly car policy does not simply deliver ‘green’ returns but can have positive impact on the bottom line as well.

Baseline: Understanding your starting point If it can’t be measured it can’t be managed. What should be measured? The priority has been on carbon and other greenhouse gases, but thtere is growing awareness of other pollutants like particulate matter.

Stakeholders identified in step 1 will provide useful advice on what information should be collated, and how it should be collated and presented. There may be specific reporting standard your company reports against, or clients could expect data to be presented in a certain format.

Many corporates have invested in environmental reporting systems. These may be able to assist in data gathering and reduce the administrative impacts of data collation. It is also important to consider the scope of data collation.

Discuss this with colleagues and identify data gaps and how they could be filled.

3

Identifying opportunities A company may have the data, but data does not lead to change. Data should be analysed from the perspective of achieving outcomes.

Data quality and granularity is important.

For example, should information at a corporate level, at a business unit level through to an individual fleet driver be available to achieve corporate aims?

Special Edition dedicated to Green Fleet Management

4

The business base: Driving change Oportunities for environmental performance can be grouped into 3 categories.

Business re-engineer ring: Is it possible to deliver a better or the same outcome by changing business processes? This could range from altering the way a service is delivered, through to substituting carbon intensive modes of travel for alternatives to travel or lower carbon alternatives.

Procurement: Once a need has been identified, the procurement process is an opportunity to identify environmental opportunities. Scoping out the types of vehicles required and integrating environmental qualifications in the evaluation process means suppliers can be rewarded for environmental performance.

For suppliers, this could include corporate standards like ISO14001 or ISO 14064, or more sector orientated appraisals using EU benchmarks, Sustainability Indices, the Carbon Disclosure Project or an amalgamation of these.

For the car itself, measures focused on the fuel source, fuel efficiency, emissions of greenhouse gases and other pollutants, and whether there is the scope to use alternatively fuelled vehicles could be used Utilisation: The next step is environmental optimisation is utilisation. Is there a business case for procuring telematics systems that monitor environmental performance and identify efficiencies, what is the value of route planning software and eco-driving training From the perspective of maintenance, should schedules be reviewed, could tyre manufactures offer reduced waste and improved mpg, what oils are other sundry items are used? Simple, seemingly insignificant change, can collectively lead to notable environmental improvements.

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Calculating the return on investment (ROI) Finance directors are unlikely to sanction investment if the only return is environmental efficiency. A business case that takes account of operational and financial performance of the fleet is essential if environmental practices are to be incorporated into fleet strategy.

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6

Measuring performance Performance measures, that are timebound, need to be established. Measuring performance demonstrates the ROI and ensures that performance measurement becomes standard. Performance can be measured against corporate environmental aims and objectives, as well as fleet specific KPI’s.

The results of a change should be communicated to all stakeholders. Integrating environmental performance measures in corporate communication is one way of doing this. To engage employees collaborate with internal marketing and communications specialists.

Benchmarking and building on success The seventh step is not the finishing line. Comparing performance against others, particularly competitors or those with a similar fleet profile, enables the maturity of your programme to be assessed.

With an ROI calculated and environmental performance appraised the cycle of fleet and environmental improvement can commence again from Step 1. Start again by building on successes, learning lessons, changing practices and focusing on where the greatest returns can be achieved. â–

Jonathan Green

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MANAGEMENT I Purchasing & CSR

Let’s get the basics right Since years the ‘green’ element is gaining popularity when it comes to automotive and car fleet management. But that ‘green’ element is not only related to the product itself, it goes further than that. CSR and sustainability are for example also terms increasingly used in a purchasing context. That is made by clear by this editorial contribution of Hervé Legenvre of the European Institue of Purchasing Management.

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o keep things simple, you can look at CSR as a corporate perspective on sustainability. The following definitions are good references.

Sustainability (Brundtland report) refers to meeting the needs of the present without compromising the ability of future generations to meet their own needs Corporate Social Responsibility (ISO): The responsibility of an organization for the impacts of its decision and activities on society and the environment, through transparency and ethical behavior that: • Contribute to sustainable development, including health and welfare of society • Takes into account the expectation of stakeholders • Is in compliance with applicable law and consistent with international norms of behavior • Is integrated throughout the organization and practices in its relationship Why is this important?

CSR and sustainability are considered more and more important in many purchasing organization. This can be simply explained by considering that most opportunities to improve in this field are not within a company but at both ends of its value chain.

Let’s look at the environmental aspects first. The first environment concern a company is often to ensure that its operations, factories and processes are safe and have no damage on the environment. But when we look at the full value chain (cradle to grave), we see that the environmental impact of a company and its products is more

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significant at each ends. A significant impact comes from extracting natural resources and operating such activities in remote places. Another significant impact is the one at the end of the lifecycle of the product when clients dispose of products.

Social impact is also significant along the whole chain, especially when suppliers in high risk countries where low level of safety, low wages, limited employment regulations, lack of transparency standards exist.

The first imperative: Understanding stakeholders’ expectations.

The first step in developing sustainable supply chains is to understand stakeholders’ expectations and the dynamics amongst them (who influences who?).

Stakeholders can include: • Local stakeholders: How is your company affecting our community?

• Consumers: Are you product safe? Do you damage the environment? Are you treating people fairly?

• Financial Markets: How do you minimize risks?

• Suppliers: What will be expected from us on this?

• Media, Civil society: are you addressing people’s expectations? Are you hiding something?

• Government: are you complying with laws and international guideline • Employee: can I be proud of my company?

Purchasing professionals can benefit from regularly exchanging with internal stakeholders and suppliers on the evolution of external stakeholder expectations relating to sustainability. This is a simple but effective way to remain alert on these matters and sometime to start thinking differently.

The second imperative: Understanding risks & opportunities Often CSR is perceived as a risk and compliance exercise.

This is often the first type of actions undertaken in purchasing to address this issue. Nevertheless it also offers

Special Edition dedicated to Green Fleet Management

many opportunities in terms of performance improvement and value creation.

Risk includes: • Litigation and regulatory risks • Operational risks • Brand and reputation risk Performance improvement opportunities include: - Operational efficiency such as energy, water and other natural resources optimization

Material sourcing Disposal & Recycling

Material processing

Risks Opportunities Collaborations

Use

Manufacturing Distribution

Value creation opportunities include: • Innovation: CSR forces company to look for alternatives means of doing things such as materials, technology, means of transportations, business models…

• Access to new and existing markets: CSR can become a differentiation factor including unique recycling services, green products or it can open market such as “Bottom of the pyramid” schemes (poor populations) • Brand enhancement through improved reputation • Access to new knowledge, skills and resources: CSR encourages companies to work with suppliers networks that are more sustainable.

The right way to identify Risk and opportunities is to map the value chain / life cycle and identify risks, opportunities and potential collaborations all along. This can be done for a product of the company and then deployed on the purchasing categories or it can be done category by category.

The diagram (see right upper corner) is a good place to start. You can adapt it to represent the part of the value chain you look after. You can think simply in terms of: • Who are the suppliers in your category, the suppliers of your suppliers...

• What happens to what you buy till it is disposed off Then with the right people around the table (internal stakeholders and suppliers), you can start to list risks and opportunities. Then, you can exchange on with whom you should work to best address these risks and opportunities.

About EIPM The EIPM is the Institute in Purchasing & Supply Management offering the Executive MBA accredited by AMBA, Complete Certification Program for Professionals & In companies Programs in 9 different Languages. www.eipm.org

The third imperative: Finding the right type of actions and monitoring results.

In front of specific risks an opportunities, purchasing professionals can take different course of actions. They need to identify which ones is the best. The following diagram highlights some common solutions.

• Compliance and supplier management activities focus on risks.

• Category strategies address major risks and focus on opportunities for the company • Collaborations focuses on addressing risks and issues that one player cannot solve alone.

Industry collaborations Collaboration with NGOs Collaboration accross the chain

Look for alternatives (Re)design for...

Wider initiative (cross functional/ cross company

Compliance & supplier Management

Category strategy

Early supplier Involvement Change business model Specific Projects

Specifications / Supplier evaluation / Risk Management / Audit / Supplier Dev.

Conclusion CSR and sustainability is often seen by purchasing professional as “this is more work for me”. This might be a too simplistic view. It is also an opportunity to get a bigger stake in corporate decision and finding opportunities to deliver enhanced performance and value creation opportunities. ■ Hervé Legenvre, PhD - MBA Director, EIPM

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BUSINESS I News Fleet People

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• Oliver Lajara (1) has been promoted to General Manager Fleet Sales and Remarketing at Hyundai Motor Europe, moving up from his previous position as Deputy General Manager Fleet Sales and Remarketing. This move follows an increase in non-private sales from 119,000 to 193,000 units between 2010 and 2012.

• LeasePlan International has appointed Jef van Oosterbos (5) as its new Finance & Global Coordination Director. He is succeeding John Houtsma who returned to the US to pursue other career interests. Since 2009 Jef held the position of Commercial Director at LeasePlan Turkey.

• Infiniti has strengthened its international sales team with Christian Blank (2), who becomes responsible for Central Europe. Before joining Infiniti in November 2012, Christian Blank was Director of European Fleet Operations at Mazda Motor Europe.

• Stéphane Verwilghen (6) has been appointed the new Regional Manager for Arval subsidiaries in Austria, Belgium, Luxembourg, Morocco, Portugal and Switzerland. For eight years Mr Verwilghen was Managing Director of Arval Belgium. Roberto Fonseca takes over his spot at the head of the Belgian office, while Akis Liounis, former CFO at Arval Greece, replaces Roberto Fonseca (7) as General Manager for Greece.

• Fleet Logistics wants to expand its managed fleet in the UK and therefore previous Fleet Logistics UK Commercial Director Stuart Donnelly (3) has been appointed Chief Regional Officer for Northern Europe, including the UK and Nordics with full operational and profit and loss responsibility for the region.

• UK contract hire provider and salary sacrifice company, Tusker, has appointed Brian Nott (4) to the new role of head of vehicle operations. Brian Nott is an experienced car fleet expert with over 25 years’ fleet industry experience.

• Geert Markey (8) is the new head of KBC Lease Group and thus became responsible for the car lease company KBC Autolease. Markey has succeeded Stany Van Besien, who has taken up a new position within KBC Groep in Belgium.

• ALD Automotive appointed Mel Dawson (9) as Managing Director for its operations in the United Kingdom.

Mel Dawson has been with ALD for 15 years, most recently in the position of UK Sales Director.

New office for Sixt in Belgium Sixt has extended its rent-a-car network in Belgium with a new office in Zaventem. Clients and prospects can consult this new office for information on car leasing, renting and mobility solutions. Sixt wants to be more accessible for retail and business clients and wants to position itself more as a leading mobility supplier.

Google goes automotive Google has become the latest electronic communications company to see the automobile industry as a new sales outlet. Google has announced that it is partnering with the Korean manufacturer Hyundai (Hyundai and Kia brands).

Google Maps will thus be integrated into certain models via the manufacturer’s own UVO eServices system. Drivers of the cars (starting with the new model Kia Sorento) will benefit from navigation and point of interest services. The UVO system also provides hands-free phone connectivity. Hyundai models are set to follow. Google is also working with other manufacturers including Audi and Daimler.

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Emerson and LeasePlan further strengthen partnership Emerson FZE and LeasePlan Emirates have signed an agreement for LeasePlan to provide Fleet Management solutions to Emerson. This collaboration between Emerson and LeasePlan Emirates marks the 24th country in which the partnership has been established. LeasePlan Emirates intends to build on its position as a value-enhancing fleet management supplier to Emerson and will begin deployment of the fleet in early 2013.

Special Edition dedicated to Green Fleet Management

TomTom launches new app to simplify mileage registration

The new Webfleet Logbook app of TomTom Business Solutions is available for Android and IPhone.

TomTom Business Solutions, specialist in telematics and integrated fleet management solutions, has launched the new Webfleet Logbook app that helps drivers to keep an accurate log of their trips using a smartphone. The new app for Android and iPhone helps drivers and businesses reduce mileage claim administration, and creates reliable logs to help with tax compliance.

A driver selects whether a journey is for business, private or commuting purposes, validating journey information on his mobile device. Company trip records are simultaneously updated in TomTom’s Webfleet management system.

By fulfilling their obligations using their mobile device – before or after journeys – drivers can reduce the laborious paper work traditionally associated with mileage claims.

Fuel efficiencyis the road to be on

Fuel efficiency is and stay a crucial element in the cost management of international fleets. (Copyright Arval)

Fuel prices are shaping car fleet and corporate investment decisions. Car manufacturers GM and Ford believe that fuel savings criteria are outweighing the costs of a vehicle as fleet buyers’ factor in maintenance costs and running costs. General Motors and Ford have signed a memorandum of understanding to “develop a variety of allnew fuel-efficient transmissions.”

According to ND-Automotive, fuel economy is not the only benefit of this joint venture. Skip Nydam of ND-Automotive said, “It would also have huge manufacturing cost and volume advantages over all the competition.” But powertrains are not the only avenue where greater fuel efficiency is being sought.

GM recently contributed $5 million (€3,7 million) to a Tyre Research Centre. Research suggests that better tyre design can help improve fuel efficiency by up to 7%.

Stay on top of fleet industry news The website www.fleeteurope.com covers all the new industry and fleet management news, and gives you a comprehensive overview of the key issues of today’s international fleet management.

Visit our website today!

LeasePlan expands in Italy through acquisition of BBVA LeasePlan Corporation has announced the signing of an agreement to acquire the Italian fleet and vehicle leasing activities of Banco Bilbao Vizcaya Argentaria (BBVA).

This will bring the BBVA portfolio of 20,500 vehicles under the management of LeasePlan. More information on www.fleeteurope.com

Athlon opts for Miles in Spain and Italy Athlon Car Lease has implemented the Miles automotive leasing and fleet management software system in Spain and Italy to manage its fleet operations in both countries, as it runs similar sized businesses of around 6-7,000 vehicles with some 45 employees in each. Athlon then plans to use the experience gained from these two implementations to introduce the Miles system into Germany, where it operates a fleet of around 28,000 vehicles, by the end of 2013.

This will be followed by a wider rollout across its fleets in the other countries. Athlon Car Lease operates in 10 European markets and manages a total of more than 234,000 vehicles across Europe. More information on www.fleeteurope.com

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BUSINESS I Mercedes-Benz Cars

Europe will stay important for us

Matthias Lührs, Vice President Sales at Mercedes-Benz Cars, is convinced that Mercedes-Benz can realize a further growth in 2013.

The Western European car market is becoming saturated with new car sales declining in regions like Southern Europe. The sales of premium brands, however is holding up and in some regions increasing. Mercedes-Benz is an example of this trend. Matthias Lührs, Vice President Sales, and Hans-Georg Lutz, Senior Manager International Corporate Sales at Mercedes-Benz Cars are aiming for further growth in sales in 2013, thanks to a strong line-up of new models with efficient engines and an attractive corporate sales strategy.

Hans-Georg Lutz, Senior Manager International Corporate Sales at Mercedes-Benz is proud that the new A-Class is appealing to new corporate clients.

Western Europe as a market is declining”, says Matthias Lührs. “Markets like Portugal, Italy and even France are now showing a double digit decrease in sales. Mercedes-Benz however sold more cars from January until the end of October when compared to last year. We achieved a 1% increase, which was in line with our predictions. This has been achieved without the A-Class effect. The A-Class only launched in September and we will see the real effect of this from 2013 onwards”, adds Matthias Lührs. “Despite the decrease of the general car market in southern Europe, not all car markets are struggling in Europe. The UK market for example has grown. The market for premium vehicles in the UK is growing faster than other segments; in November our sales grew by 10%.”

Is your sales growth related to an increase of fleet sales?

Matthias Lührs: “Yes. We have seen an increase of 8% in our commercial accounts’ business in Europe, and a 17% increase outside Europe, when compared to 2011. This growth has, in part, been achieved due to our new engines that combine real driving pleasure with low emissions.

For example, the C220 CDI BlueEfficiency has emissions of 109 g CO2 per km and we are the industry benchmark with the E-Class 300 BlueTec Hybrid. In the compact car segment the new A-Class emissions are 98 grams and the B-Class is at 114 grams. This portfolio of fuel and emissions efficient vehicles has helped us increase our share of commercial accounts.”

Hans-Georg Lutz: “Mercedes-Benz Corporate Sales is one of the fastest growing channels in premium sales, not only within Mercedes-Benz Cars but also when compared to our competitors. Alongside the new cars and the engines, we have developed a strong international fleet community, with a focus on Europe.”

M.Lührs: “We have developed our fleet strategy and increased our fleet team over the last couple of years. Today we are reaping the rewards of this policy. Today we have 280 International Framework Agreements. This has grown from 50 just five years ago.”

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H.G. Lutz: “About 90% of our International Framework Agreements are European based. We have also extended our efforts to the North American market, to Mexico, Hong Kong and China, where we also have international agreements.”

What is the explanation for this increase in the number of Framework Agreements?

H-G. Lutz: “Firstly, we have a new competitive line-up with the A- and B-Class in the smaller and compact segment.

This makes our cars more attractive to large international accounts. Secondly, we have an excellent services and TCO-offer. Finally, we do acquisitions. I sign every year a target agreement with Mr Lührs to gain more sales volume.”

M. Lührs: “The service element we offer can’t be underestimated. At Mercedes-Benz, together with our colleagues from our financial arm Daimler Financial Services, we offer an integrated and holistic fleet solution called Fleet Floor.

Fleet Floor is a single point of contact that directs information and answers to different business units of an international company. Also, we have increased our network of dedicated Fleet Centres and we are growing our business with the captive leasing company Daimler Fleet Management.”

Special Edition dedicated to Green Fleet Management

BUSINESS I SEAT One of the goals of the new A-Class for Mercedes-Benz was to attract a new client base. Have you achieved that goal already?

M. Lührs: “On the launch date, 15 September, we had more than 700,000 visitors in our showrooms across Europe. To date we have received 90,000 orders for the A-Class. From the order details we can see that more than 40% of our A-Class customers come from other brands. So, yes we are attracting a new public.”

H-G. Lutz : “In fleet business we can see a similar trend in the profile of the companies interested in the A-Class.

We now have IT, fashion and pharmaceutical companies. Thier sales force is very interested in this trendy car.”

How do you foresee the year 2013 in terms of fleet sales?

M. Lührs: “Despite the clouds that are sometimes seen and have been experienced in 2012, we remain optimistic for 2013. We expect a growth of 4% for the total car market and growth of 6 – 7% within the premium segment. At Mercedes-Benz we have even more ambitious targets. With our attractive engine portfolio, the first complete year of the new A-Class, the launch of the new E-Class in the Spring, a new CLA and a new S-Class we have reasons to be positive. Regarding our Corporate Accounts we expect further growth in 2013 in Western-Europe and especially in the overseas emerging economies.”

How long will it be before your core market for sales is no longer Europe, but Brazil or China?

M. Lührs: “Europe, as a general automotive and fleet market, will still be one of the biggest markets in 10 years’ time. Nevertheless, our engagement in markets like China, India, Russia, Brazil will increase, but Europe will remain crucial. The factors driving environmental performance and mobility are born in Europe. The technological knowledge and R&D will also stay in Europe. This is our strong belief.” ■

Spanish design & German technology driven by an Italian fleet boss Last year Giuseppe Tommaso became Fleet & Remarketing Director at SEAT. Fleet Europe looks back with him on his first months at the Spanish brand and discovers his fleet ambitions for this year.

I didn’t realize how fast 9 months have passed”, opens Giuseppe Tommaso the interview “Last year was for SEAT the biggest product offensive we have ever had with 4 new models launched : the little Mii, the Ibiza facelift, the new Toledo Sedan and the new Leon.

In addition at SEAT we changed our corporate identity, with even a new logo. I have the impression that I am in the right place at the right time.”

The 2013 fleet ambitions of SEAT and Giuseppe Tommaso: increase the fleet volume in the EU5, implement a dealer fleet program, and create a dedicated structure to serve SMEs.

What will be your objectives for 2013 in terms of Sales and Fleet Structure?

G. Tommaso: 2013 will be an important year in terms of growth and we are investing in additional fleet sales capacity and capability. Our plan is to significantly increase the fleet volume in the EU5, implement a dealer fleet program and a dedicated structure to serve small and medium companies, while for our key accounts we have developed a structured plan thanks to the support of Volkswagen Group Fleet International.”

How does it feel to be the little brother in Europe’s biggest automotive fleet group?

G. Tommaso: “We have a lot of advantages and synergies being part of the Volkswagen Group and this is reflected in the big investments SEAT has made recently. We also have international framework agreements with the other Volkswagen Group Brands (Audi, VW passenger cars, VW Commercial vehicles and Skoda), so the customer can benefit from one single point of contact to get international conditions from all brands.”

Why are the SEAT models good fleet cars compared to other brands on the market?

G. Tommaso: “SEAT has more than 60 years of automotive innovation and Martorell is one of the most sustainable and advanced car plants in the world.

Around 40% of our vehicles emit less than 120 g CO2/km and over 10% even less than 100 g/km. Our cars are built with the highest quality materials and equipped with state-of-art safety-ensuring technology. Fleet drivers receive the best of German technology mixed with Spanish flair and design. With SEAT models you can expect a range that delivers on every front for every driver.” ■ Steven Schoefs

Steven Schoefs

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BUSINESS I Fleet Europe Industry Award 2012

Applications reflecting an evolving fleet world When Hans Damen and Bart Vanham of TCOPlus stepped onto the stage in Cannes to receive first prize in the category Fleet Europe Industry Award 2012, they were demonstrating just how important professional suppliers are in today’s fleet world. We look at how TCOPlus and the other two prize winners, Fleet Logistics and ARI, are helping to make international fleet managers more effective in their daily job.

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he very name of the first prize winner, TCOPlus, bears witness to the priorities in a fleet manager’s mind, and to the rapidly evolving fleet scene.

Total Cost of Ownership was little more than a relatively new concept only a decade or so ago, but now it is not only central to any fleet strategy, but not enough on its own. TCOPlus won first prize with the successful combination of two innovative products.

Greencube is a web based, fleet reporting solution giving international fleet decision makers an insight into and a consolidated overview of their fleet’s CO2 footprint. The data is presented in a clear and easy to use format, with modelling facilities, providing an immediate insight into the key metrics of an organisation’s fleet costs and operation. One of the innovative elements of the programme is the ability to look at the fleet from a ‘what if’ point of view with regard to CO2 improvements, mileage improvements, TCO improvements, including the direct and indirect tax effects, with immediate results provided. These elements represent a significant cost impact for certain countries. The tool is used to establish business cases for the various different factors impacting the fleet and to facilitate change management in the organisation, with the ability to measure results a key factor. Accurate and current information is continually updated and available via the web at the touch of a button. Greencube therefore offers a dynamic facility to model changes in fleet make-up and immediately show the resulting change in fleet operating costs in a scenario where the fleet manager may decide to implement the changes being considered. For international fleets this is done on a country by country basis with country dashboards reflecting car policy categories, and also on a consolidated basis, where

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Bart Vanham and Hans Damen, Managing Partners of TCOPlus and the winners of the Fleet Europe Industry Award 2012.

global dashboards reflect those countries within the selected grouping. Greencube is able to accommodate local restrictions and regulations applying to company vehicles. All information and data is shown in easily referenced dashboards that can be efficiently shared with colleagues.

Special Edition dedicated to Green Fleet Management

International overview The second TCOPlus product, Fleetcube, is a web based, fleet reporting solution giving international fleet decision makers a clear insight, transparency and a consolidated overview of their international fleet. Fleetcube collects and organises data from the customer’s entire fleet centred on the VIN-vehicle number including relevant HR-information and reflecting the corporate and geographic structure of the client company. The information is represented in easy to understand and accessible dashboards to assist better informed decisions relating to operating the fleet in a more efficient and cost effective manner. The web based dashboards can be easily shared with colleagues across many different geographical regions taking into account different access authorisation levels.

Internal benchmarking Fleet Logistics, another name with a story to tell, convinced the jury to award it second prize for the reporting tool Fleet.Global. As transparency is the basis for strategic decision taking, Fleet Logistics believes in effective reporting tools delivering substantial added value for global fleet-owners in terms of monitoring and managing their fleets. This global reporting solution for international fleet operators has therefore been developed to provide a complete and comprehensive picture of all aspects of fleet operation across a global fleet, regardless of the number of countries in which fleets are operated. This product consists of two password protected web sites. One allows users to upload fleet data, typically monthly, for various different client legal entities around the world. The second site generates reports, both according to a schedule and also on demand. The objective of the tool is to provide clients with a low cost, self serving platform to create transparency with regard to the fleet inventory and TCO. Another key feature of this system alongside data consolidation and the provision of an inventory dashboard for TCO and CO2 globally, is the ability to benchmark the client’s fleet regionally and locally, comparing one fleet to another. Transparency is obtained in terms of global fleet costs, global fleet patterns and trends along with the global supplier structure, among other benefits. An overview of the CO2 situation and development is another advantage.

Corporate goals ARI is an American-based company with a global fleet under management extending to over two million. It was awarded third prize in the Fleet Europe Industry Award category for its web-based system, ARI analytics, which synthesises and analyses fleet data from many sources around the world. The system converts costs to one currency for cross-border benchmarking. ARI claims to be unique in using in-memory technology in order to provide reporting capabilities which it says are thousands of times faster than other tools in the fleet industry today. Global fleet clients can act on findings instantly and forecast their global fleet vehicle needs and costs with accuracy as they respond to changing business conditions. Another factor which impressed the jury is ARI’s approach to offering flexible, customised solutions to clients with fleets of every size and every level of complexity. The company sets out to understand a customers’ needs and corporate goals, helping them to identify and prioritise their issues, both business and fleet related, and works to align its services to support these core needs and goals. Finally, ARI has set itself the mission of exceeding customer expectations with regard to timeliness, accuracy, responsiveness, process improvement, compliance, teamwork and innovative problem-solving. ■ Tim Harrup With the support of

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SCOPE I News Siemens moves towards flexible mobility

All Siemens employees in Belgium, whether entitled to a company car or not, have access to a fleet of electric cars

Siemens is to propose a new sustainable mobility concept for its personnel in Belgium. This follows an indication by the personnel that they are in favour of a more flexible approach to mobility which is also more environmentally-friendly. Siemens employees who have a company car are to take part in a ‘mobility à la carte’ system enabling them to allocate part of the car budget to other modes of mobility. This budget is made available by the employee opting for a smaller-engined more ecologically-friendly car than the one currently allocated to him or her. Siemens has been encouraging the use of bikes and public transport for some time, and has contributed to the costs involved.

All Siemens employees, whether entitled to a company car or not, are able to use the ‘Villo’ bike sharing scheme in operation in Brussels, and have access to a fleet of electric cars. They can also use a new website ‘carpoolplaza’ for car sharing. More information on www.fleeteurope.com

Avis Budget acquires Zipcar Zipcar, the world’s leading car sharing network, has announced that Avis Budget Group has agreed to acquire Zipcar for US $500 million (€374 million). Ronald L. Nelson, Avis Budget Group chairman and chief executive officer said, “We see car sharing as highly complementary to traditional car rental, with rapid growth potential and representing a scalable opportunity for us as a combined company.”

More information on www.fleeteurope.com

Zipcar has more than 760,000 members - known as Zipsters - with a marketleading presence in 20 major metropolitan areas in the United States, Canada and Europe, and a fleet positioned at over 300 college and university campuses.

Crisis has no effect on lease mileage

According to a survey of Business Lease Group, the economic crisis has not had an effect on lease vehicle mileage.

Over the last 5 years, the average annual mileage reported by lease drivers has remained largely the same. By the same token, the average list price of the cars chosen by lease drivers has stayed at the same level. These findings are the result of a survey by Business Lease Netherlands of the 20.000 vehicles in its Dutch fleets.

“You’d think that the economic crisis would trigger a reduction in mileage, but that isn’t the case”, says Dick Cozijnsen of Business Lease Netherlands. “But we do see a change in driving behaviour. Drivers are increasingly aware of the cost of fuel, and are looking for ways to minimise that cost, both for themselves and for their employers. Examples include filling up at cheaper petrol stations, and making sure correct tire pressure is maintained”.

More information on www.fleeteurope.com

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Amsterdam wins Smart City Award

The city of Amsterdam is the 2012 recipient of the City Award following the second annual Smart City Expo World Congress. The Dutch capital won the award for its project on urban mobility, a key pillar of the Amsterdam Smart City Approach. Amsterdam authorities collaborated with the app developers to identify mobility challenges and provide new solutions. By providing transport data to any interested party the aim was to stimulate innovation across the public and private sector. The result has been the design of smartphone applications that provides users with real time multimodal transport and travel information. Information on parking (tariffs, availability), taxi stands, cycle paths and real time information on traffic situation was made openly available by the city authorities. According to this information presented over 50,000kms are driven while drivers simply search for their destination.’

Special Edition dedicated to Green Fleet Management

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SCOPE I Taxation

Going green will become much more complicated When in 2008 “going green” in fleet was received as hype by skeptics, in 2012 almost every self-respecting company has it on the priority list. Car taxation, now linked to CO2-emissions in 20 EU Member States, sustained the message that going green equaled savings. Where, due to the focus on CO2-emissions switching to diesel engines seemed the answer fitting all for the last years, today we see more than first signs that the “oil burners” will soon no longer provide this answer.

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he logic that sustainable solutions are generating savings is not that difficult to understand. However, when it comes to an emotional subject as company cars, many where skeptic about introducing green fleets. The crisis in 2008, the related savings in fuel and the positive tax effects of lowering CO2-emissions of multinational fleets helped to introduce the environmental performance of a car as selection criteria for car policy eligible cars.

When focusing on savings, it is important to take into account both direct tax effects, i.e. taxes that influence the lease price of the car like registration taxes, and indirect tax effects, i.e. taxes that do not influence the lease price like special taxes on company cars (e.g. tvs in France, non deductible expenses in Belgium). Lowering the CO2-emissions by only 10 gr in the EU (from 135 to 125) already provides significant savings. Savings amount from 44 K EUR per year for 200 cars

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per country (only fuel) to 132 K EUR in Portugal (fuel and direct effect taxes) to maximum 163 K EUR in Belgium (fuel, taxes and hidden taxes). The savings of lowering CO2-emissions in Belgium are +/- 41% represented by the indirect or hidden taxes.

Capturing these direct and hidden taxes will help to strengthen the business case for CO2-reduction programs, being able to show effects will help to overcome change management issues like harsh discussions with HR, and enables you to get a rolling budget for other saving initiatives.

Greener = continued savings Taxes are income for the governments. Certainly in these hard times, governments cannot afford to lose income. The automotive industry is pushed to produce cleaner cars with limits set at 130 gr CO2 by 2015 and 95 gr CO2 by 2020. Hence, governments will lower the CO2-emission thresholds set in their car taxation rules over

Green Benchmark = TCO plus Taxes When benchmarking cars, one should take into account all direct and indirect tax effects. If not, cars will not be positioned correctly in the car policy and hence objectives will not be reached. When reviewing a car policy in Belgium, I came across an example that illustrates this. In a category a Lexus CT200h (hybrid) was competing against a Mercedes E200 CDI BlueEfficiency amongst others based on its lease price. A BMW 118d was considered a lower category car again based on lease price. However, if we calculate the TCO plus the taxes, the hybrid car was the cheapest of the 3 and was closer to the BMW 118d than the Mercedes E-Class. The above shows that when comparing cars, it should be done based on the TCO plus taxes. Otherwise, cars will not be benchmarked correctly and hence positioned wrongfully with a result that the company misses potential savings and efficiencies because drivers will not chose the “best car”.

Special Edition dedicated to Green Fleet Management

Not only in terms of technological evolution but also when looking at taxes, petrol, hybrid and electric cars will have to be considered again in choosing the right company car for the job or employee incentive needed. time in order to guarantee income levels.

This implies that if your company does not continuously adapt to the new “green” offers on the car market and sets stricter limits in line with the trend of producing lower CO2-emission cars, it will lose gradually the tax advantages. The trend line proposed by most governments varies around 5 grams per year (e.g. Belgian registration tax by 4.5 gr, benefit in kind in the Netherlands by 3 gr to 7 gr per year). In order to continue generating savings or in order to minimize the extra taxes (depending on your starting position) your CO2-emissions objectives should follow this trends line.

Greenest = mix of engine types Where switching to diesel engines with lower CO2-emissions where a good way forward in the “greenification” of your fleet for the least years, today we can notice some changes in the market. The offer on hybrid cars, often electrified petrol cars with low CO2-emissions, is increasing fast.

Electric vehicles are being marketed and governments are providing incentives for these full or partial electrified cars.

Indeed already 15 Member States provide some incentives for these cars. If we add to the equation that fuel excises on diesel in most countries are approaching or are even more expensive than excises on petrol and that private consumers again increasingly buy petrol cars (even in Belgium, the diesel country by far private consumers again bought more petrol cars last December) with an effect on residual value of both petrol and diesel cars; petrol, hybrid and electric cars will have to be considered again in choosing the right company car for the job (or incentive) needed.

The high concentration of particles in high density areas in Europe is a sign that this is probably more than a short term trend. This trend however will complicate the job of the fleet

managers: they will also need to take into account the mobility profile of the drivers: the kilometres driven per year, the area (urban, non-urban, highway) the kilometres are predominantly driven in, the daily average and maximum kilometres, the driving behaviour, etc. For company car drivers in urban areas electric vehicles may be the answer, while for mixed (urban and non-urban) users hybrid may to the job and for high kilometre drivers, most probably diesel would be optimal.

The risk of not choosing the right propulsion increases: diesel engines for short distances are up for higher maintenance cost, hybrids chosen due to incentives but driven by predominantly high kilometre and high-way drivers risk high fuel costs.

Therefore, the correct choice and mix should not be led by incentives but should take into account many of the parameters mentioned with a continued focus on TCO plus taxes but included actual usage of the company car. ■ Bart Vanham Car taxation specialist, RBR PwC

The employee mobility profile Going green means continued efforts because of income needs for governments and clear trend lines of lowering CO2-emissions for cars produced. Where diesel cars where a proper way of “greenification” in the last years, we now see that a mix of propulsions will be the next step in “green fleets”. This implies that apart from the TCO, the taxes are becoming even of a bigger importance and that the mobility profile of the driver is a new element to be taken into account. This is clearly a new but unavoidable challenge for fleet managers.

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SCOPE I Mobility

The year of the electric taxi Phoning, checking e-mails on your tablet PC, while riding in an almost totally silent taxi of a type that emits no exhaust? It is possible. Few vehicles have more demands made of them than taxis: yet it is precisely this category that, in many cities, is rapidly going electric. It is indicative of the rapid advancement of the technology behind electric vehicles, and their specific strengths.

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n the past year, the number of electric taxis increased quickly. Take London, with the striking example of Green Tomato Cars who, at one stroke, will deliver 50 electric vehicles in the second quarter of 2013.

Some other examples of cities where electric taxis can be seen, or are expected very soon, are Paris; Munich; Amsterdam; Brussels; Hong Kong; Wuhan and Guangzhou in China; Kansai in Japan; and the Latin American cities of Bogota, Saõ Paulo and Mexico City.

ing on a tablet PC via Wi-Fi, which is increasingly available in such vehicles.

Customisation is called for Taxi companies themselves also see advantages in electric vehicles. For example, running on petrol or diesel is 5 to 10 times more expensive than electricity. On the other hand, there is the high purchase price of the vehicle. Many city governments lend a hand by giving taxi companies a Not without grant of several reason thousand euros The reasons for when they choose the success of to buy an electric these taxis are car. Another disdiverse. To start advantage of elecThe electric taxis that use the battery swapping system in the Netherlands with, there is the clock up 600 kilometres a day. (Copyright Better Place) tric taxis is their desire of the urlimited range: to ban population for clean air. Electric vehicles certainly be able to travel 180 km with a full battery, for example, contribute to this because they don’t emit any pollutis often not far enough. Add to that the frequent lack of ants. Their environmental benefit is still greatest at low sufficient charging stations. And, of course, there are the speeds, and where the driver needs to speed up and slow long charging times. Charging usually takes as long as 6 down a lot – in other words, in cities – and when making to 8 hours. A growing number of fast charging systems relatively short trips – something that taxis do more often are being developed that will get the job done in somethan other cars. But there are still other reasons why the thing like 30 minutes. But for taxi companies and other replacement of a conventional taxi by an electric model business drivers as well, this is often still too long. A rehas extra advantages for the quality of urban air. Specifcent alternative are the ‘battery swap stations’. These are ically, a taxi is more likely than any other vehicle to run places where in the span of three minutes the flat battery on diesel, and on average it will clock up nineteen times is swapped for a full one. And then there are some othmore mileage than a private car. Furthermore electric er elements that taxi companies who want to go electric taxis are exceptionally quiet, which reduces the noise in better take account of. For a start, their drivers will need the city. This silence is also pleasant for the passengers. extra training. In these courses, they learn to brake on It is actually more relaxing. Working in such a taxi is also the engine as much as possible while driving, enabling easier: think of phoning a customer, or even more, workthem to recover the most current and achieve a maximal

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Special Edition dedicated to Green Fleet Management

Electric taxis make an outstanding contribution to improving urban air quality. (Copyright Taxi-E)

In the past year, the number of electric taxis in different cities increased quickly.

range. Electric taxis are also most feasible in urban areas because there are more charging stations available, and because they are less likely to have to drive around without a fare what means that the acquisition price can be earned back faster.

Amsterdam A city that is remarkably advanced when it comes to electric taxis is the Dutch capital Amsterdam. At the end of 2012, the largest electric ‘charging hub’ in Europe was opened there: 40 ordinary charging points and 4 fast chargers. Among the initiators is Taxi-E, a fully electric taxi company. And Schiphol Airport has one of the first battery swap systems in the world. The company behind it, Better Place, is enabling three taxi companies to service the very intensive Schiphol-Amsterdam route using fully electric vehicles. Because of the operational advantages of the battery swap, the vehicles can be used just as intensively as their diesel counterparts. Also active in that city since the end of 2012 is a company called ‘Hopper’. They’re the odd ones out: they use electric scooters with a driver. These are proving very popular with people who have themselves driven to and from work that way.

Eccentric today, but tomorrow perhaps the norm. ■

Is Better Place changing the world?

Since 2007, the American-Israeli company Better Place has been engaged in the development of a battery swap station. Its customers have a membership card, which can be read at the station. The rest of the process is automatic. The driver does not have to leave his car for even a moment while a robot arm swaps the empty battery for a full one.

One of the first pilot projects took place in Tokyo: taxis especially converted for that purpose made use of the swap station (2010). Noteworthy, too, is the project in Amsterdam. Three of the leading taxi companies in the Netherlands opted for the ‘Renault Fluence Z.E.’, the first electric car on the market with a battery that can be exchanged at the swap stations. As a matter of fact, at the end of 2012, Better Place published the preliminary results of the project. Each of the ten participating taxis, so it read, clocks up 600 km a day. With this, the plan is on track: more than 80,000 kilometres per vehicle per annum. Jelle Vastert, Director of Business Development, Better Place Netherlands: “The initial results prove that our model offers convenience to the world’s most demanding customer segment – taxi drivers – and the response has been overwhelmingly supportive.” Finally, he stated that meanwhile, Better Place is now focussing primarily on the market for high usage vehicles (such as taxis), and the fleets of companies and governments.

Michael Hawking

FLEET EUROPE # 62

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SCOPE I Car Sharing

CiteeCar offers low-cost car sharing More and more companies are thinking about the future mobility of employees, and car sharing is one of the options that is gaining popularity. No wonder that also from the suppliers’ side things are moving.

We spoke to Bill Jones, CEO of the new self-service and low-cost car rental firm CiteeCar.

CiteeCar is a disruptive, community based, business offering self-service car rental at an incredibly low price. Cars are hosted by businesses or citizens, customer’s book and pay for vehicles online, access them via RFID card (chip) and can book a car for an hour or a long as they like.”

What differentiates CiteeCar from the competition?

B. Jones: “We looked what we could do differently. We have an experienced team of industry professionals, and a sole partner in Kia. Kia understands that self-service car rental is an integral part of their business going forward. We looked at costs involved in rental and the cost of parking. We have designed a host model. A business or a citizen provides a car parking space and acts as the car’s steward. We have reduced costs in other areas also, so customers enjoy extremely low prices.”

Why did you choose to launch in Berlin?

B. Jones: “CiteeCar is a disruptive business. Today, car sharing has a tiny percentage share of the market.

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Bill Jones, CEO of CiteeCar : “Our vision is that within 3 years we will be a multi-country, multi-city, operation. This year we will be operational in 6 German cities and another European country. In 2014 we will be in 3 countries and operating in 20 cities.”

Berlin has the most mature market in Europe and a population that is receptive. If we can make CiteeCar work in Berlin, we can make it work anywhere.”

en. That’s it. If you are a host we provide credits which allow free use.

This makes our product attractive to local businesses, hotels and other market segments.”

Do I need to be a member to access a CiteeCar? B. Jones: “Yes. We need to validate that a customer has a driving licence and provide them RFID card to access the car. We also need to charge the customer. We thought hard about the membership model and our solution differentiates us.

Membership is €5 per month, which we waive for the first 3 months and can be cancelled at any time. No tie in. No penalty clauses.”

People have described CiteeCar as being the Ryanair of car sharing…

B. Jones: “Ryanair changed consumer behaviour in a very mature market, very quickly. They changed the way people thought about and booked travel, changing the airline industry. The impact of Ryanair, and others like easyJet, has been phenomenal. In that context being compared with Ryanair is a compliment.

All the macro factors are in place for change in way cars are owned and used. We are making change possible, providing the right service, at the right price, in the right way.” ■

And the costs once I am a member?

B. Jones: “CiteeCar costs a €1 per hour and then 20 cents per km driv-

Jonathan Green

Special Edition dedicated to Green Fleet Management

SCOPE I Two-wheeled mobility

Electric scooters, also for B2B Investment to guarantee the future

Govecs is looking to business users by proposing scooters electric combined with attractive TCO elements.

When alternative mobility is being discussed, there is much talk of electric cars and of two-wheeled transport. Electric scooters seem to be a logical extension to these. To find out more, we turned to Govecs, a German manufacturer that has become a leader in the field since the launch of the company in 2009.

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s with their four-wheeled counterparts, electric scooters are very much dependent on the recharging infrastructure to enable them to be used for longer journeys.

Govecs has therefore introduced an exchangeable battery for its GO8 S1.4 model, designed to respond to recharging gaps in home market Germany. The battery weighs a carryable 15 kilos and can be removed from the scooter and plugged into any household or office electric

socket. One hour is enough for an 80% recharge. On top of this, additional batteries can be bought separately, increasing the driving range even further.

Spanish initiative One of the major initiatives undertaken by Govecs so far has been in Spain. Leading motor scooter rental company Cooltra is taking delivery of 1,000 GO! S3.4 electric scooters.

This green initiative involves an investment of 4.2 million Euros by Cooltra, and has the support of both the Barcelona municipal authorities and the Catalan ICAEN institute.

Govecs MD Thomas Grübel points out that the 114 Nm of torque produced by the model selected makes it ideal for a hilly city like Barcelona.

The power is equivalent to a 125 cc petrol scooter, and top speed is 85 km/h. Recharging is 85% complete

The interest in the future of electric scooters was demonstrated a few months ago when Govecs attracted a further ten million Euros of funding to help with its distribution and marketing activities. The funds, which were raised from existing and new shareholders, will also be used to expand the product portfolio. All of the investors are convinced of the future for e-mobility, with electric scooters having a substantial role to play.

in two hours and the range on a fully charged battery is 50-70 km. Cooltra is making a rental package available for € 149 per month, which includes check-ups, breakdown assistance, vehicle tax, maintenance, a helmet and a s storage box.

A move into fleets?

While scooters have traditionally been a private purchase, Govecs intends to make a move towards company fleets. Dirk Dens, Vice President Sales and Marketing, says: “We will of course make comparable offers to that of Cooltra to company fleets and public bodies, and our objective in 2013 is to focus more on B2B making use of favorable TCO comparisons. For this we will also approach renting and leasing companies that can offer innovative solutions to their customers/fleets”. ■ Tim Harrup

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SCOPE I Car Sharing

Carbox looks beyond the French border When they founded Carbox in 2007, Benoît Chatelier and Alexandre Crosby were convinced that managing mobility within companies would become one of the great challenges over the coming years. Five years later, their results and their prospects are quite impressive: 11,000 registered clients of which 5,000 are regular clients, 350 vehicles (500 in 2013) and development which is becoming international with a first step in Belgium.

Into the Belgian market with Peugeot

The Carbox badge technology encourages car sharing and innovative B2B mobility.

The original idea is simple: car sharing enables individuals to only use a vehicle when they really need one, and enables companies to improve the management of their fleets. Within this sector, whether in the B2C or B2B segment, France is lagging considerably behind: 600,000 car sharing vehicles in North America, 190,000 in Germany, 160,000 in the UK and only 30,000 in France. This is why the French Carbox company has developed innovative solutions for encouraging B2B mobility within companies and organisations.

Extra-fleet With its Bettercar procedure the company organises car sharing for large companies such as l’Oréal and Airbus, along with inter-company solutions. Carbox finances the vehicles, equips them with ‘self-service’

technology (badge system) and assists the client’s personnel at every stage of the way (registration, reservation, pick-up, return). Carbox also provides personnel with the possibility of renting car sharing cars or for the weekend, for private use.

This solution enables the number of vehicles in a fleet to be reduced without decreasing the quality of service offered, along with reducing ‘extra-fleet’ budgets (mileage payments, taxis) and management costs. Industrial sites (Airbus in Toulouse) and inter-company sites (Rungis), headquarters (Sodexo, L’Oréal) have adopted this solution.

Carbox is now looking to develop Mobilities, a multimodal alternative to a company car, which complements client companies’ car policies. An employee can thus give up his company car in favour of a shared car,

An innovation for 2013 will be the firm’s development onto the international stage for the first time. For Carbox is to become the operator of Mu Professional for Peugeot in Belgium.

Start-up is foreseen during the second quarter of 2013. Peugeot’s Belgian clients will then have the opportunity to offer their personnel an alternative to the company car. The offer made available will in the first instance be limited to renting cars within the Mu by Peugeot network in Belgium.“The fact of associating ourselves with a brand like Peugeot”, explains Benoît Chatelier, “enables us to assure our clients that they will have the benefit of a precise model, whichever type of mobility is selected: from an electric bike to a Boxer van, not forgetting a passenger car.”

which he can use in the evening or at weekends on the basis of a ‘mobility credit’. The Danone company has tested this solution in 2012 with a group of managerial staff, and is to extend this into 2013. ■ Philippe Martin

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FLEET EUROPE # 62

Special Edition dedicated to Green Fleet Management

FLEET EUROPE # 62

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