Fleet Europe 63

March 2013 - # 63

DOSSIER NEXUS COMMUNICATION - FLEET EUROPE #63 - periodic magazine - March 2013 - Deposit Office Liège X

Car Manufacturers’ Fleet Strategy Their fleet strategy, their product & service development, and their view on the future

Management Case Studies MSD & Almirall Learn from the winners of the Fleet Europe Awards with Espiri Carrasco

Management

Business

Scope

Tips for efficient procurement

Athlon Car Lease in partnership with Tesla

E-mobility & the infrastructure equation

Save the date: IFMI Session on the DO’S & DON’TS of today’s Fleet Management - Brussels, 29 May 2013.

To see the future of your business,

Toyota Hybrid Range.

Since 1997 we have been continuously improving our hybrid technology, engineering it into the cars of almost 5 million satisďŹ ed drivers. And guess what? Our Hybrid family is growing all the time, with a portfolio of 6 hybrids available today. Toyota’s hybrid family combines low fuel consumption and emissions with uniquely relaxed, quiet driving.

For your business, Hybrid is a business.

By adding Toyota hybrid range to your fleet, you’ll be able to achieve significant financial savings, while making a powerful environment statement to your customers.

Look back at our 16 years of success to drive your business forward.

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

EDITORIAL

The Driver Connection

Although 2013 is only in its first quarter, we can already say that it will be once again be a challenging year t the fleet business has become key to the automotive players as B2B sales guarantee market share and assure sales volumes. And the fleet market is highly appreciated as the ideal arena for introducing and testing new technologies and innovations in terms of sustainability, safety and driver behaviour. B2B clients are early adopters, as we all know. Together with other fleet suppliers the car manufacturers are looking to expand the fleet market in trying to extend their B2B sales with ‘B2E’ sales (Business to Employee). Various car lease companies have also recently launched new initiatives with the fleet driver at the center. A logical step as it is: 1) a must to secure business and thus an opportunity to expand the target group, and 2) it is often the driver that has the power to choose his company car or mobility mode, and it is the driver that has an important impact on the TCO. So it would appear that 2013 brings new business initiatives for fleet suppliers with the driver in the driver’s seat!

From Business to Business To Business to Employee

But this must not be at the cost of neglecting B2B clients. Because these B2B clients are the basis of the car fleet business, and there is still work to be done here. International fleets need their suppliers to bring realistic innovation and concrete ideas to improve fleet efficiency, along with an easy assessment of performance. So let’s hope that 2013 will not only be the year of the driver connection, but that it will be the year of the fleet connection.

And that is the goal of the Fleet Europe platform: making the connection between all parties and players in the car fleet business in Europe.

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

Join Fleet Europe’s community Fleet Europe is a cross-medium platform where analyzes, interviews and factual information go hand in hand with sharing best practices and with the possibility to learn from each other through dedicated training sessions. To optimize this cross-medium sharing expertise we propose different applications and tools to interact with the international fleet community

Newsletter

Register to the Fleet Europe Newsletter and receive twice a month the highlights of the international fleet sector. www.fleeteurope.com

Linkedin

Join the Fleet Europe LinkedIn group and connect with international fleet professionals, fleet decision makers, suppliers and experts.

Our LinkedIn Community counts more than 1,780 members. http://www.linkedin. com/ groups?about=&gid =157239

Issuu.com

Discover the digital edition of Fleet Europe magazine. Have a look at the more recent edition, or look at our archives. www.issuu.com

Facebook

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

Calaméo.com

Discover the digital edition of Fleet Europe magazine, adapted to be read through your smartphone and iPad. www.calameo.com

Twitter

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

FLEET EUROPE # 63

P.7

* CO²OL

*The new A-Class¹ with CO₂ emissions as low as 92 g/km.

A Daimler Brand

In addition to the A 180 CDI BlueEFFICIENCY, Mercedes-Benz also offers the ultimate in matters of efficiency with the new A-Class BlueEFFICIENCY Edition. Thanks to the consumption of just 3.2 l/100 km, the new A 180 CDI BlueEFFICIENCY Edition is one of the most efficient diesel vehicles in the compact car segment. And the reduced CO₂ value of just 92 g/km helps to decrease consumption by up to 5%. Incidentally, its cw value, which has been reduced to 0.26, is the very best in the hatchback segment. Find out more at www.mercedes-benz.com/fleet

¹Fuel consumption urban/extra-urban/combined: 8.4–4.2/5.1–3.2/6.4–3.6 l/100 km; combined CO₂ emissions: 148–92 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 Provider: Daimler AG, Mercedesstraße 137, 70327 Stuttgart

Provider: Daimler AG, MercedesstraĂ&#x;e 137, 70327 Stuttgart

CONTENT

management I Case Studies

The integrated car fleet philosophy at MSD: with Joe Carreira and Robert Patrick, winners of the International Fleet Manager of the Year Award.

BUSINESS

Athlon Car Lease starts partnership with Tesla Motors.

52

42

Scope

Charging stations’ initiatives for electric cars.

DOSSIER I Car Manufacturers’ Fleet Strategy

57

I DOSSIER I

The Car Fleet Challenge. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.11 The Changing Business Environment . . . . . . . . . . . . . . . . . . . . . . . . P.12 The Race for the Mobility Customer . . . . . . . . . . . . . . . . . . . . . . . . . . P.14 B2B is a key area for OEM growth. . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.18 What OEMs can do to help reduce TCO. . . . . . . . . . . . . . . . . . . . . . P.24 What does mobility mean for an OEM? . . . . . . . . . . . . . . . . . . . . . . P.28 Listen to the car fleet future. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.30 Geneva Motor Show 2013. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.34 Going Global. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.38 The driverless car . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.40

Get a clear insight in the organisation, the products and services, and the new developments for 2013.

11-40

I BUSINESS I

News from the world of fleet suppliers . . . . . . . . . . . . . . . . . . . . . P.50 Electric partnership between Tesla Motors & Athlon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.52 Fleet Management with TomTom Business Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.54

I SCOPE I

News about the fleet & mobility environment. . . . . . . . . . . . P.55 Electric cars & Charging terminals . . . . . . . . . . . . . . . . . . . . . . . . . . . P.57

I MANAGEMENT I

Case study: the fleet philosophy of MSD . . . . . . . . . . . . . . . . . . . P.42 Case study: the safety project of Almirall . . . . . . . . . . . . . . . . . . P.47 Six tips for efficient fleet procurement . . . . . . . . . . . . . . . . . . . . . . P.48

COLOPHON

Steven Schoefs - Chief Editor - Fleet Europe (sschoefs@nexuscommunication.be) Caroline Thonnon - Head of Business Development & Global Fleet Leader (cthonnon@nexuscommunication.be) Pierre-Yves Simon - IT & Web Manager (pysimon@nexuscommunication.be) David Baudeweyns - International Sales & Business Development (dbaudeweyns@nexuscommunication.be) Romina De Gregorio - Internal Sales & Operations (rdegregorio@nexuscommunication.be) Thao Van de Poel - Internal Support tvandepoel@nexuscommunication.be Kathleen Hubert - Head of Marketing & Smart Mobility Management Leader (khubert@nexuscommunication.be) Jonathan Green - Chief Editor Smart Mobility Management jgreen@nexuscommunication.be

Contributors: Tim Harrup, Frank Jacobs, Jean-François-Christiaens, Michael Hawking Special thanks to: Peter Fuβ (Ernst & Young), Professor Peter Cooke (University of Buckingham), Hervé Legenvre (EIPM), Bart Vanham (RBR PwC) 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 # 63

P.11

www.kia.com

THE KIA FLEET. A GOOD REASON TO START A COMPANY.

» 7-year warranty* » From 4.2 l/100 km » From 109 g CO2/km » Trunk capacity up to 1,642 litres**

THE NEW KIA CEE’D SPORTSWAGON. EXCITEMENT. QUALITY. FLEET-ABILITY. When setting up a company, there’s a lot to worry about. Finding the right company cars is no longer one of the problems.

Kia offers entrepreneurs a perfect range of vehicles. Take a look at our new Kia cee’d Sportswagon: dynamic on the outside, spacious on the inside, with low fuel consumption, high residual value and innovative technology backed up by a unique 7-year manufacturer warranty. Another perfect example of our choice of fleet models offering enough variety to let each and every employee find the right model. Your company is already well established? Then it’s time for a little forward planning. Meet a different kind of fleet: www.kia.com/eu/fleet

* The Kia 7-year/150,000 km new car warranty. Valid in all EU member states (plus Norway, Switzerland, Iceland and Gibraltar), subject to local terms and conditions. ** Maximum trunk capacity achieved by fully folded rear seats.

Fuel consumption (l/100 km)/CO2 (g/km): urban from: 5.0/129 to 8.8/198, extra-urban from: 3.8/98 to 5.3/121, combined from: 4.2/109 to 6.6/146.

dossier

I Car Manufacturers’ Fleet Strategy

The car fleet challenge I

t’s March and time for Fleet Europe’s to rendezvous with manufacturers to hear about their fleet strategies and what’s in store for the fleet community.

The good news for buyers is that the European fleet community continues to be crucial for manufacturers as they seek to secure sales volumes in a volatile and declining new car market. In the next 12 months we will see new technologies introduced into the fleet park and smaller sized vehicle segments given fleets roles as an early adopters and pioneer of innovative solutions.

The challenge for manufacturers will be the adaption of their products and services in response to trends like urbanization, mobility and demands from clients for a uniform and consistent approach to fleet management - both in Europe and at a global level.

Fleet clients need to keep on the front foot and look to the future.

What do corporate trends like cost control, sustainability, safety and driver behaviour management mean in terms of your supplier procure-

The new XL1 from Volkswagen has an average fuel consumption value of 0.9 l/100 km. Thanks to its plug-in hybrid system, the two-seater can also cover a distance of up to 50 km in all-electric mode.

ment and engagement strategy, and how can manufacturers help you achieve these aims? The fleet strategy is now ready for you to explore. How will manufacturers help you achieve your fleet objectives in 2013 and beyond? ■ Steven Schoefs

FLEET EUROPE # 63

P.13

dossier I Car Manufacturers’ Fleet Strategy

The Changing Business Environment The whole dynamic of the motor industry, the relationships between the OEMs, their national sales companies, fleet operators and the economy has changed significantly in the past few years. No wonder that there is a whole new business scenario fleet executives have to come to terms with.

Across the EU new car sales have dropped by some three million units a year from the pre-banking crisis period of economic growth as shown in Figure 1. The decline in new car sales is but a part of the problem; the size of vehicles being sold has been polarising with larger and smaller cars taking precedence. To an OEM, seeking to build profit, this is the worst of both worlds as larger units offer significantly greater profit opportunities than smaller variants.

As if that were not enough, the preferred brands acquired in the EU have changed significantly over the past few years as shown in Figure 2. Thus, if a fleet operator has been running with a single brand for a

long period, just how popular is that marque today – and what are the implications of the move away by the overall market from that brand?

Economic recession, or problems associated with the Euro have caused governments to take strong action to manage economies. As a result, there has been a steady move into a period of economic austerity across the region. In reality, new car sales have dropped in practically every market in the Eurozone.

A New Business Order?

Given such a sea change in market conditions, there are many other issues which might be raised. The European fleet executive, whether op-

Figure 1: European New Car Registrations (EFTA) 17 15.8

16 15.1

15.3

16.0

15.3 14.7

Millions of units

15

14.5 13.8

14

13.6

13

12.5

12 11 10 2003

2004

2005

2006

(Source: ACEA 2012)

P.14

FLEET EUROPE # 63

2007

2008

2009

2010

2011

2012

erating in a single market or across the whole region, has a number of new and often fundamental issues they have to deal with.

The rapidly changing market may be a mixed blessing. Given the huge excess installed manufacturing capacity in Europe, there may be exceptional deals available for new vehicles. However, these new units will be acquired to replace existing ones – just how good are used car prices and how well are they holding up?

The used car message is as complicated as the new car scenario.

If there is a shortage of younger used cars coming to market then, in theory, these used cars might be expected to achieve a good price. Yes, a fine argument – but how is demand for used cars holding? Many traditional new car buyers are either retaining their cars longer or buying younger used cars, or smaller new cars as economic hardship bites.

There is an old business adage ‘never waste a good recession’. Is this what is happening at present with organisations taking the opportunity to reorganise business, clients, markets and product offerings as well as the way they do work – ready for the economic recovery?

Any significant downsizing in the Eurozone may well call for reduced company size and new methods of doing business.

It is against this slightly scary situation that the European fleet execu-

Figure 2: Western Europe New Car Registrations; 2008/2012 versus 2004/2008 (0-5 year car parcs) Alfa Audi BMW Chevrolet Citroën Fiat Ford Honda Hyundai Jaguar Kia Lancia Land Rover Mazda Mercedes-Benz MINI Mitsubishi Nissan Opel Peugeot Renault SEAT Skoda smart suzuki Toyota Volkswagen Volvo -1 600 000 -1 400 000 -1 200 000 -1 000 000

-800 000

-600 000

-400 000

-200 000

0

200 000

400 000

600 000

Source: ACEA/Buckingham

tive will need to be prepared – planning not for the short term but for the future when the economy starts to grow again.

Maybe a sight of the company’s strategic business plan is the starting point for the forward-thinking fleet executive? Historically, there have been too many cases of fleet managers planning their future fleets for the status quo – planning to replace in line with what used to be the company requirement rather than what it will be in future. Plan for the future – not the past!

In terms of the current fleet, there are a number of issues which might be highlighted for future planning that may also have immediate implications too.

Consider some of them: • Total cost of operation – current and future; what will be the real role of company cars as the Euro economy recovers from recession and business expands again? How may your business change shape – and what will be the company car implications – users; types of cars and functions?

• What will be the future environmental issues? Will they be abandoned until sustainable economic

recovery kicks in or are they continuing – how does the international fleet executive respond?

• I n an international fleet situation – does the fleet executive focus on the recovering/strongest economies and develop the fleet in these areas, focusing funds and efforts there at the expense of poorly performing economies?

•W hat overall steps and strategies might be considered in structuring the fleet for the future?

These are issues the proactive fleet executive should be challenging management of the pan-European business, to get a firm fix of where the business is going and to ensure every Euro is being used to its best value.

Two further questions need to be asked – firstly, what is the future of the company car? Historically, a recession moves thinking forward by several years. What will be the real role of the company car post recession? Is the company car moving inexorably towards a historic role, with car sharing, rental and micro rental becoming the preferred means of providing business mobility?

The company car is no longer ‘a wonderful asset to have’ but is a ‘working tool’ – and are there better, more economic ways of providing business mobility – or means of communicating with clients? Smartphones, Skype, e-mail were but figments of the imagination at the last recession – but what will be their thought-through role this time?

That brings me onto my final strategic issue – the relationship between the fleet executive and the OEM. Vehicle manufacturers, given a desperately low new car market, will need to seek further profit opportunities – or value-added services – to protect their own businesses. Their profits may be generated through providing added-value services – does this mean OEMs will rethink their roles in future and see themselves as ‘providers of business mobility’ rather than just vehicles?

If OEMs do adopt such a radical approach, the whole role of the fleet executive will migrate from managing a fleet to managing business mobility – some are already doing it; how would it work within your organisation?

The best value Automotive industries in the Eurozone are passing through a tough period with a changing product mix and significantly reduced sales; there are no signs of any early, sustainable recovery.

OEMs are showing signs of cutting manufacturing capacity as part of a strategic cost cutting exercise. The challenge for the European fleet executive is to rise to the challenge of using any new services provided, getting the best value out of them and not merely letting them become ‘value-added for somebody else’.

How will you respond to the changing environment? ■

Professor Peter N C Cooke University of Buckingham, UK

FLEET EUROPE # 63

P.15

dossier I Car Manufacturers’ Fleet Strategy

The race to own the mobility customer With increasing global urbanization, increased traffic volumes, more traffic jams and traffic accidents, we need to find a cleverer, safer and more comfortable ways of moving from A to B. No single player holds a dominant position across the transport landscape today and is unlikely to do so in the future. The development of new Mobility Concepts will force every major player - including OEMs - to work outside its core competency.

............................................................................

P.16

FLEET EUROPE # 63

You can compare the automotive and fleet business evolution with the evolution in the music business: Our desire to listen to music remains as strong as ever, but the way music is accessed has changed dramatically. A similar development can be expected with professional mobility.

The music industry is a great example of how business models have evolved over time. For over 50 years people were thrilled to purchase vinyl of their favourite musician. About 30 years ago, vinyl started to be replaced

by CDs, which offered better quality of sound. Roll on to the new century and the CD started to be replaced by MP3 players and internet downloads.

What does this example tell us? Our desire to listen to music remains as strong as ever, but the way music is accessed has changed dramatically. And the players in this field have changed in the last 20 years. A similar development can be expected with mobility. Our needs may remain broadly similar, but our behaviour and provision of solutions that will meet demand will change.

er individual or public – needs to be organized in a much better way than in the last 127 years (since the promotion of the first car , the Benz Patent Motorwagen in 1886). A radical change of urban mobility could mean the following: Individual cars are no longer allowed in cities – only public transportation and vehicles for the transport of merchandise and goods.

A significant reduction of emissions, congestion and traffic accidents could be the outcome. The individual’s mobility needs could be met through integrated car sharing or car pooling program. The number of cars in a city would be limited to the mobility needs of its inhabitants. This

Rental companies could be first to cover the new automotive and mobility market with flexible and efficient usage concepts

The age of mobility participants No one will argue that megacities in developed economies – like Amsterdam, London, Paris or Vienna in Europe – are the largest markets for mobility services, but the mobility needs and behaviours of people in these cities is changing.

There are significant changes in the way that people are managing their time. Rising population densities in many regions of this globe, an increasing share of inhabitants in older age groups and connection via the internet are changing how people behave and value their time.

Shopping in physical stores is replaced by virtual shopping and, in turn, stores on the high street are becoming more of a showroom than a place for a purchasing. The increased usage of the Smartphone will continue to change our behaviours – and not just in megacities. The delivery of goods will be handled differently and require more localised transport than in the past.

Further, to avoid congestion and traffic accidents, mobility – wheth-

could decrease the level of idle cars.

This may appear too far removed from how we view mobility today.

However the attractiveness of cities is determined by many different factors – availability of affordable apartments, environmental considerations and infrastructure - which include the offerings of convenient travel options like subways or buses.

Over the last decade, many cities have begun to find ways to reduce traffic in cities – either by congestion charges, limitations of new car registrations or reductions of parking space. In the future, individual mobility in Cities may only be allowed by motorbikes, bikes or electric cars. In addition, people who are living and working in megacities may want to have access to different mobility offerings with one access and payment system, like an Intermodal Mobility

App via a smartphone with payment per usage or even more aggressive at a flat rate or finally for free.

This may sound unrealistic. But look at the music example – the music may have even not changed, but the way to access music and those who are providing the access to the music has. In our case, the car represents the music and the discs and/or the internet download functions represent an access channel like an Urban Mobility Concept.

With an ageing society and an increasing share of inhabitants in higher age groups, the question must be asked whether this automatically implies future decline of motorization and mobility. After all, the increasing share of older citizens in society will mean a higher average age of mobility participants.

Car fleets will be more than hardware It is agreed by almost all stakeholders that there is a major challenge for all mobility stakeholders - whether OEMs, suppliers, cities, public transport provider, rental companies etc - to identify mobility solutions and mobile usage concepts which will satisfy future customer demands. Further individual car ownership may no longer be necessary to consume mobility, and a car may no longer be seen as the status symbol it once was.

Possible new mobility demands could also change the relationship with the car. The car could become a place of entertainment and not driving with, a focus on entertainment and communications functions, infotainment & networking.

Under such a scenario, only mobility service providers who are able to offer solutions which fit to the changing behaviour of customers will be relevant.

There is no doubt that the mobility spend by person will increase over the next few years – either driven by increased taxation or increased transportation costs (i.e. gasoline

FLEET EUROPE # 63

P.17

Automotive industry needs to adopt a service-centric approach to meet shifting mobility preferences Automotive OEMs are transforming their business models to defend leadership in personal mobility market Value chain implications / impact

Triggers / factors

New value proposition

Product configuration and design

• Adopt alternative zero-emission powertrain technologies • Develop more fuel-efficient conventional powertrains • Standardize advanced safety and emergency response technologies

Scope of services

prices). There may be less people across Europe who can afford to own a car, but they will, in turn, be seeking alternative mobility options such as car sharing, car pooling or intermodal packages.

Under these circumstances, car fleets may become more relevant than in the past; but only if the car fleet product is much broader than just offering “hardware and hardware related services” for a fixed monthly rate. The customer of car fleets (employer) and the end-user (employee) of the fleet products are demanding new offerings like car pooling and integrated mobility concepts. This requires more flexible product/service offerings than in the past.

Short term rentals like car sharing, combined mobility packages together with long distance train tickets, preferred parking at airports etc. are adding value to customers. To gain a higher share in the total mobility spend of customers is the ultimate goal for any stakeholder in the future mobility market – especially for OEMs. Therefore, car manufacturers must give top priority to the analysis of markets, trends and the competitive situation, with regards to potential future fields of competition.

P.18

FLEET EUROPE # 63

Powertrain electrification

Enhanced safety

Small and smarter cars

Car sharing/leasing

On-board telematics

Mobility solutions

Integrated packages

• ABS, EBD, TPMS • Driving assist applications • Collision avoidance systems

Shift in personal mobility preferences • Owning personal cars losing attractiveness • Alternate personal mobility solutions gaining competitive strength • Optimized purchase and running cost budgets are becoming more important • Need to stay connected – always and everywhere

Enhanced fuel efficiency • Standardization of engine technologies • Light weight construction

Regulatory mandates

• On-demand vehicle access • User created routes and stops • Short-term hire or leasing

• Option to choose vehicle class as per need/occasion • Linkages with public transport

• Electric vehicles, hybrids, hydrogen fuel cells • Charging stations

• Building cars around cities • More head and leg room • Remote access

• Navigation and traffic systems • Web connectivity • Voice recognition technology

• Service, maintenance, insurance, road-side assistance, accidental repair

Potentially serious competition in this field is likely to come from car rental companies. First of all, the concept is threatening their market and secondly, car rental companies have already established global distribution networks across brands, which provide value to their customers. If mobility continues to gain in relevance and the importance of ownership of an automobile continues to lose its importance, rental companies could be first to cover the market with flexible and efficient usage concepts.

Automotive manufacturers thus face the challenge to quickly counteract such developments, which requires a dramatic change in their future business model – moving from a premium car maker to a provider of premium mobility services – especially on B2B car fleet business, which will be a key area for corporations to manage their cost base and to become more attractive to employees in providing smart mobility services as a fringe benefit. ■

Peter Fuβ Senior Advisory Partner Automotive Ernst & Young, Frankfurt-Germany

The new

InsIgnIa BiTurBo

Tame your righT fooT. The best car we’ve ever built. now with the powerful and frugal BiTurbo diesel engine.

400 nm. 230 km/h. With 4.9 l consumption.

www.opel.com/insignia Official fuel consumption urban 8.6–6.1 l/100 km, extra-urban 5.4–4.2 l/100 km, combined 6.6–4.9 l/100 km; CO2 emissions combined 174–129 g/km (according to R (EC) No. 715/2007). Efficiency classes C–A

FLEET EUROPE # 63

P.19

dossier I Car Manufacturers’ Fleet Strategy

B2B is key area for OEM growth In order to give an overview of what the major car manufacturers are expecting to see in 2013, and how they are approaching the vital fleet market and its clients, we asked them to outline their views and policies. It is clear that globalization is a reality, and also that despite challenging times, optimism is still there.

Fiat Group Automobiles

INTERNATIONAL FLEET PROSPECT CONTACT Juan Manuel Sagardoy Grawe, Director European Corporate Sales juan.manuel.sagardoy@opel.com

Car manufacturers’ strategy

Car manufacturers’ strategy

For FGA the fleet channel is a strategic asset. The fleet business generates high visibility inside private companies and public organizations. And the business customer – by word of mouth – can turn into a voluntary ambassador of the brand he is using towards relatives, friends and colleagues. The most important priorities in terms of fleet development and sales ambitions in 2013 inside Europe are Italy of course, as Fiat is the national manufacturer and leader in the country. Outside Italy, the UK and Germany are important, both for the dimensions of the market and the huge opportunities of products. On top of these come France and the Netherlands: in these markets there is a high awareness for ecological issues, so also their legislation is pushing the private and corporate market versus ecological products, where FGA is leader. The fleet business is growing noticeably all over the world and the Fiat Group with its organizational structure of four operating regions – NAFTA (U.S., Canada and Mexico), LATAM (Central and South America), APAC (Asia Pacific) and EMEA (Europe, the Middle East and Africa), is able to serve customers everywhere in the world.

For 2013, Opel/Vauxhall is preparing to launch a new product offensive with new vehicles in new segments, allied to major changes in the powertrain portfolio. With new products and state-of-the-art comfort and assistance systems normally found only in higher vehicle classes Opel/ Vauxhall intends to give customers what they want, and to maintain the fast pace of vehicle and technology introductions. The new vehicles to be launched in 2013 include the Adam and the Cascada. Fleet continues to be of strategic importance for Opel/Vauxhall, and for 2013 the company will continue the strategy of improving vehicle residual values, increasing corporate and user-chooser penetration and focusing more on SMEs. Opel/Vauxhall continues to address the traditional big Western European fleet markets, but also sees huge opportunities to develop more in Eastern Europe, especially in Russia and Turkey, as well as in Central and Eastern Europe.

Strategy towards fleet clients Each individual market has its own local structure in order to handle fleet demand at a national level and to be as close as possible to the customer. On top of this are two other structures: on the one hand the ‘International Key Account Management’ with five International Key Account Managers (one specialized in LCV) – this team being dedicated to corporate customers at an international level. And on the other hand the ‘LTR International’ team which is the reference for long term rentals companies’ headquarters and for international tenders.

P.20

OPEL VAUXHALL

INTERNATIONAL FLEET PROSPECT CONTACT Francesco Monaco, EMEA Region - Head of International Key Account Managers Francesco.monaco@fiat.com

FLEET EUROPE # 63

Strategy towards fleet clients To meet the growing demands of European and global fleet customers, Opel/Vauxhall has a pan-European Corporate Account team. Its team of dedicated Corporate Account Managers is based in different European regions (e.g. Germany, the UK, Hungary, Belgium and the Netherlands).

Whenever a new prospect is interested in a pan-European or global agreement this international team of fleet professionals will support the customer with its expertise and provide consulting on how the customer can derive the most benefit from the agreement. Opel/Vauxhall has a dealer network of more than 3,750 distributor sites across Europe. The repairer network coverage in Europe of close to 6,500 sites provides customers with the peace of mind that is so vital to their business operations.

Volkswagen Group

Jaguar Land Rover

Infiniti

INTERNATIONAL FLEET PROSPECT CONTACT Ralf Kostrewa, Head of Volkswagen Group Fleet International ralf.kostrewa@volkswagen.de

INTERNATIONAL FLEET PROSPECT CONTACT Simon Dransfield, General Manager, Corporate Sales Europe sdransfi@jaguarlandrover.com

INTERNATIONAL FLEET PROSPECT CONTACT Carlos Montenegro, Corporate Sales Director Europe Business-services@infiniti.eu

Car manufacturers’ strategy

Car manufacturers’ strategy

Car manufacturers’ strategy

The fleet domain is of huge importance to Volkswagen Group, as can be seen in the volumes ordered by large customers. Large customers also play an important role for the company in other ways. They are traditionally the first to take new technologies on board and the feedback received from these professional users is used in the development process for vehicles. Volkswagen Group believes the Western European market will remain challenging but despite this is expecting to see positive progress due to its balanced product portfolio. And while Europe has traditionally been more important for fleets, Volkswagen will also be concentrating on emerging markets, both areas of business being of importance to the company. There will in particular be a commitment to Brazil, China and Russia. In model terms, in the United States, Volkswagen expects the new Passat to be successful in the fleet domain. Other new models include the Audi A3 Sportback, the SEAT Leon which will also be seen in Combi Version. Škoda is to have a new version of its best selling Octavia in both sedan and Kombi. And the new Golf is expected to remain as Europe’s best selling fleet car.

Corporate fleet sales represent an extremely important area for Jaguar Land Rover, which is seeing continued investment. New models are being developed with the corporate customer in mind. The company has a focus on reducing CO2 emissions further, and identifying what the corporate customer wants and needs from a vehicle. Sales growth in 2012 was in excess of 35% for Jaguar Land Rover as many of the SME fleets adopted the Range Rover Evoque and the Jaguar XF 2.2 litre diesel. The UK is the most mature fleet market. Jaguar Land Rover is focusing on key accounts and leasing and is supporting investment by the dealer network to target the SME market. Germany has a significant wagon market where the new Jaguar XF Sportbrake has recently been launched. Italy is Europe’s largest Land Rover market and, despite difficult economic conditions, the company has a healthy order bank for Range Rover Evoque and an increase in segment performance for all models. Benelux, France and Spain form the next tier of markets where there are investment and growth opportunities in Corporate Sales. China is now Jaguar Land Rover’s leading market.

Corporate sales represent a key topic for Infiniti. The premium car segment is very focused on business channels.

The deterioration of the private channel due to the economic situation is making fleet the key channel. This is also reflected in Infiniti’s product portfolio with the introduction last year of the Infiniti M Business edition and the upcoming Q50 that has all the key features to be successful with corporate fleet operators. International fleet sales represent 3- 5% of overall sales.

The range has transformed rapidly from a 100% petrol V6-V8 line up with reduced fleet presence (90% private sales until 2010) to diesel V6 engines, and fleet sales reached 40% in 2011 and 55% 2012, with a forecast of 65% in 2013. The new Infiniti Q50 will compete in a core fleet segment with a car that perfectly fits the European fleet market needs; very efficient diesel engine, best in class CO2 and business versions. With this, Infiniti anticipates sales growth in all European markets.

Strategy towards fleet clients

Strategy towards fleet clients

The Volkswagen Group – through Volkswagen Group Fleet International – manages large multinationals in cooperation with its importer network.

Within Volkswagen Group Fleet International each customer has a central contact (Key Account Manager) for all international fleet demands. As back office to the Key Account Manager a team of tender coordinators and contract managers supports their daily activities. With the International Bonus Agreement (IBA) customers are further motivated to take on Volkswagen vehicles. An IBA is available to companies with at least 2,500 vehicles and which order at least 300 cars annually in more than three countries.

Research and development has enabled lower CO2 emission vehicles.

The Range Rover Evoque, Jaguar XF and XF Sportbrake are all designed to be more competitive in the fleet world.

Jaguar Land Rover has a strong, and growing corporate sales network across Europe, developing fleet specialists within dealerships. The company has an established fleet team in each of the European NSC’s. The international account relationship is led by the customers ‘home’ market. The European and global team will then support a coordinated response to the client.

Strategy towards fleet clients There is a growing interest from international customers to move towards global contracts and not remain only with a European scope only. In this sense, Infiniti, as the luxury brand of the Renault-Nissan Alliance, is perfectly prepared to play this global role for all international customers.

The Infiniti fleet structure is in constant development and aligned to the overall growth plan of the company in Europe. Currently the European fleet structure is based in France and oversees the European area with fleet managers based in the G5 countries that cover all the Infiniti markets in Europe. Each fleet manager develops the fleet business in the countries he is responsible for and also channels any international fleet demand to central operations.

FLEET EUROPE # 63

P.21

Daimler

Renault

INTERNATIONAL FLEET PROSPECT CONTACT Hugues de Laage de Meux, head of International Key Account Sales huguesdelaagedemeux@mpsa.com

INTERNATIONAL FLEET PROSPECT CONTACT Emmanuel LONGEARD, Sales Director Corporate Sales Division Emmanuel.longeard@renault.com

Car manufacturers’ strategy

Car manufacturers’ strategy

Car manufacturers’ strategy

Europe is and will remain one of the biggest automobile markets in the world and will continue to play a key role in the development of new technologies.

The factors driving environmental performance and mobility are developed in Europe, and Mercedes-Benz’s technological knowledge and R&D will remain in Europe. With its new compact cars, the OEM plans to further open up the Eastern European market. Mercedes-Benz is optimistic concerning the development of fleet sales in 2013. With the first complete year of the new A-Class as well as the launch of the new E-Class, a new CLA and a new S-Class the manufacturer offers a highly attractive portfolio to its fleet customers. Mercedes-Benz sees high potential for the Chinese premium market in the mid and long terms, and also expects to further boost sales in the US. In December 2012 Daimler AG appointed a new member of the board, responsible for China. The Mercedes-Benz International Corporate Sales Team works in close collaboration with the colleagues for Mercedes-Benz USA and Mercedes-Benz Canada.

B2B has become more and more strategic, because it is quite a stable market compared to B2C. In 2012, the B2B sales represented 31% of global PSA sales. Around 38% of global sales are outside Europe, and in B2B terms it is more than 20%. The forecast in Europe is to stay at the same level of market share (15.6%) in B2B. At this point, the objective is to sell around 200,000 cars in B2B overseas. PSA’s priorities in Europe are Germany, the United Kingdom and France. The Southern European markets are facing a very difficult situation. PSA Peugeot Citroën has an international approach focus on certain markets this year: Russia, China, Turkey and Latin America. In 2013 the group expects a more dynamic market in Eastern Europe and Scandinavia but a volume decrease in Western and Southern Europe. There is an overseas growth strategy (with specific products (Peugeot 301, Citroën C-Elysee and Citroën C4 L) and a more defensive strategy in Europe during the first half. However, the second semester will see a more offensive phase with the launch of the new Citroën C4 Picasso and the Peugeot 2008, then the new Peugeot 308 at the end of the year

Strategy towards fleet clients The Mercedes-Benz International Corporate Sales Team offers ‘one-stop shopping’ for large, multinational companies. The manufacturer offers a well-developed infrastructure with market-centric fleet programs in all major countries catering to fleets of all sizes. The international team requests offers and conditions from all involved markets. These are consolidated at the ‘Fleet Floor’ through an integrated approach by Corporate Sales, Daimler Financial Services and Global Services and Parts to provide a customer specific solution or offer. International Framework Agreements (IFA’s) guarantee worldwide availability. Today, Mercedes-Benz has around 280 such agreements. This has grown from 50 just five years ago.

P.22

PSA Peugeot Citroën

INTERNATIONAL FLEET PROSPECT CONTACT Andre Dutkowski, Manager Coordination International Key Account Management & Leasing Andre.dutkowski@daimler.com

FLEET EUROPE # 63

Corporate fleet sales have always been strategic for Renault. Over 140 multinational companies around the world already turn to Renault to implement their international car policies. There will be extended volumes and country fleet organizations in 2013. The B2B sales level represents around 30% of all sales. In 2012 there has been strong fleet development in countries or regions such as Latin America, Russia, and Euromed-Africa. Renault will focus on the European fleet markets, whose sales represent around 65% of fleet sales: not only the ‘big 5’ but also for example the Netherlands and Belgium, which offer good sales opportunities in key accounts and the local fleet business. Renault will also pursue the fleet structure development in countries outside Europe, so as to answer efficiently to corporate and local fleet customer needs and contribute to the effective implementation of international agreements.

For 2013, the manufacturer expects to see the development of new fleet opportunities (especially in Asia-Pacific). In Europe, thanks to new Captur and new Clio models, it intends to develop market share in 2013, which will be also linked to market evolution.

The Alliance is developing new common international contracts which Strategy towards fleet clients The PSA Corporate Solution organi- will contribute to sales increase. sation is customer oriented with an Strategy towards fleet clients International Key Account Managers (IKAM) team and, in all countries, The structure is designed to serve the National Key Account Managers large international clients, with 9 In(NKAM). There are also Leasers Key ternational Key Accounts Managers Account Managers and Citroën Busi- (IKAMs) at international level, 3 Fleet ness Centers and Peugeot Profes- Regional Managers dedicated to sales sional Centers in all countries. The development in and outside Europe operational teams are in the field to and over 100 Key Account Managers help customers and provide all ser- (KAMs) at national level. There are vices according to their needs. The also fleet teams in the Renault netPSA target is to develop business at work at local level. International fleet an international level with a focus on customers obtain the positive ecomore than 150 Key Account custom- nomic benefit and simplicity of global ers (more than 1,000 vehicles in at one-stop negotiation, while the Key Account Managers work directly with least 3 countries). the customer subsidiaries.

Car manufacturers are developing new fleet services to enhance the connectivity with the fleet driver.

Toyota

Volvo Cars

INTERNATIONAL FLEET PROSPECT CONTACT International Key Account Managers: Tine Poels, Emrah Sarisoy toyotainbusiness@toyota-europe.com

INTERNATIONAL FLEET PROSPECT CONTACT Javier Vazquez, Global Accounts Director javier.vazquez@volvocars.com

Car manufacturers’ strategy

Car manufacturers’ strategy

In 2012 Toyota Motor Europe (TME) achieved a 2% sales increase. The market share increase was a balanced result of both retail and fleet sales. The target is sustainable growth in retail and corporate fleet business with a focus on fleet customers benefiting from the competitive TCO. Important contributors to growth were the built-in-France Toyota Yaris with sales up of 27% thanks to the strong launch of the Yaris Hybrid and the Toyota Camry with sales up 68%, a segment-leader in Russia and the Ukraine. Toyota also expects to benefit from the growing success of its full hybrid range with sales up 29% and exceeding 100,000 units sold in a year for the first time in Europe. In 2013 Toyota sales are expected to further increase in fleet and retail thanks to a product offensive in the crucial C- segment with the introduction of the new Auris, Auris Touring Sports, the new Verso, and the fourth generation RAV 4.

Corporate and fleet sales are vital for Volvo Cars, accounting for over 35% of global volume. In Europe, the share exceeds 50% in many markets. This year Volvo is reviewing its fleet business around the world, starting with its 15 largest markets. It has established a new Global Fleet Operations function based in Gothenburg and will be working with markets to understand the opportunities, finding ways to better support them in delivering excellence to fleet customers and drivers. This global view enables Volvo to offer help and advice to customers looking outside of the traditional European markets. Volvo expects to continue to grow market and segment share in key EU markets.

Last year, with the launch of the V40, the company saw all time record market shares in some markets. It expects to continue this trend with further product launches throughout the year. Outside of Europe, Volvo anticipates growth in the US and Asia during 2013 and recently signifiStrategy towards fleet clients cantly expanded its fleet organisation in China to support The TME fleet division includes IKAMs (International Key international clients in that region.

Account Managers) and 1 back-office support. The IKAMs Strategy towards fleet clients follow up international clients based on the client fleet representatives’ country. The IKAMs act as the single point- Volvo has a global account team at a corporate level. It has of-contact and will provide the client with a consolidated regular live meetings and has commenced workshops to European proposal. TME has an on-going agreement with ensure sharing best practice towards international cusall its NMSCs for 56 countries in Europe (including Russia, tomers. There are dedicated fleet managers in all EU marTurkey, Israel). For RFPs that hold specific, non-standard kets serving both international and national fleet clients. requests, the IKAM will secure with the relevant NMSC an Volvo has over 110 international agreements with implanappropriate local solution is provided. TME will further tation in all regions of the world. The company is aiming strengthen the IKAM team with additional headcount mid at being closer to customers by understanding their needs 2013. and motivations and delivering excellence.

FLEET EUROPE # 63

P.23

KIA

BMW Group

INTERNATIONAL FLEET PROSPECT CONTACT Emmanuel Bussiere, International Fleet Sales Manager Ebussiere@nissan-europe.com

INTERNATIONAL FLEET PROSPECT CONTACT Astrid Schneider, Prospective Customer Management Astrid.AU.Schneider@bmwgroup.com

Car manufacturers’ strategy

Car manufacturers’ strategy

Car manufacturers’ strategy

Growing fleet sales is on top of Kia’s strategic agenda. Long term fleet sales have increased by more than 30% over recent years. To become one of the 10 mainstream brands in Europe, Kia will grow the fleet markets share more strongly than the retail share. In 2012 the share of fleet sales was 38% of total sales in 14 Kia subsidiary markets. Overall market share in Europe was 2.7% in the passenger car market, increasing sales by 17% over 2011. The 2012 sales result was an increase of 17% compared to 2011. Kia expects to continue to ‘buck the trend’ in recording positive sales growth in 2013. Kia’s most remarkable sales growth was in Italy, where it experienced a 30% increase in sales. It also grew 27% in Germany, 24% in the UK and 20 % in Ireland. Its 2012 performance continues a long-term trend: over the past four years Kia has recorded growth of 50% in the European market. In Germany and Italy Kia still has a huge opportunity in the SME segment.

Corporate sales represent a key pillar of Nissan strategy for growth in 2013 and for the coming years. At Nissan, mid term planned sales growth is coming from the introduction of new models but also through the sales increase towards fleet customers. In 2013 Nissan expects to grow European sales in the UK, France, Germany, Russia, the Nordics, the Benelux and Poland. To answer to customer needs and to make them benefit from Nissan’s global presence in the world it has developed a global approach to International Key Customers. The International Key Account team is working with every Nissan Local Corporate Sales department. The manufacturer is in a position to offer to all Global Key Accounts a single contact person within the organisation.

Corporate Sales represent an important sales channel for the BMW Group, not only in mature European Markets but also globally. Over recent years the company has seen constant and steady growth in fleet sales for both BMW and Mini. This development is thanks to corporate customers who recognize and reward BMW Group’s efforts in terms of sustainability not only with regard to automobiles but also with regard to the whole supply chain starting from R&D up to production and ultimately recycling. In the fleet industry a clear commitment to sustainability combined with a focus on TCO has become increasingly important in customers’ fleet policies.

BMW Group corporate customers value the combination of fuel efficiency and driving pleasure offered through BMW Efficient Dynamics and ‘minimalism’ technology. The BMW Group has been named the world’s most sustainable automotive company for the eighth consecutive year in the ranking published by the SAM Group for the Dow Jones Sustainability Indexes (DJSI).

Strategy towards fleet clients Kia has dedicated Key Account Managers at European level coordinating international tenders and the relationship with the major leasing companies. It has white label partnerships with leasing companies in more than 10 countries. Markets have had a professional national fleet organisation for several years to cope with large customer demand. The manufacturer offers a strong focus on managing residual values and service costs, while offering a 7 year manufacturer warranty.

P.24

Nissan

INTERNATIONAL FLEET PROSPECT CONTACT Chan Uk Jun, Manager Fleet and Remarketing cujun@kia-europe.com

FLEET EUROPE # 63

Strategy towards fleet clients Nissan’s team of Fleet Specialists is composed of 5 people. There are one International fleet Sales Manager, two International Key Accounts managers in charge of developing international sales, two back office in charge of customer follow up, call for tender and international relationships.

Nissan only started to develop international fleet sales agreements in 2012, and now has 20 international fleet agreements signed, including world contract and solus. Although relatively new to this domain, the reception from global companies has been exceptional. A main asset is world presence, a strong M/S position in most of the important markets, products developed locally for local needs, local production helping Nissan to react quickly to customer orders and the flexibility of the corporate sales team across the world to support all international customers specific requirements.

Strategy towards fleet clients BMW International Corporate Sales provides companies with a global point of contact The team of International Key Account Managers helps customers to set up business relations with the global network of subsidiaries and dealers, and optimize fleet operations. Within their market / region specific responsibilities the Key Account Managers ensure a smoothly running relationship to lay the foundation for successful longterm cooperation. Whenever possible, International Key Account Managers will visit international customers together with the national Key Account Manager. ■

Tim Harrup & Steven Schoefs

advertisement

Decision time for fleet managers 7 reasons why you shoulD consiDer Kia. We would like you to meet a fleet designed to match your needs. A complete model range that will satisfy the employees and even the CFO. A fleet that is as unique in terms of its model line-up as it is in terms of its service approach. A fleet focused on design and quality, aligned to value for money. A fleet that will give you peace of mind for at least 7 years. And these are not just all promises. They are the commitments and key objectives of one of the fastest-growing mainstream brands in Europe.

A brand that renewed its entire product range within 24 months, with new product launches in the A, B, C, C-MPV and D segments.

1

High value When it comes to residual value (RV), you will hardly find a fleet

that performs better. Purchasing a

the new Kia cee’D sportswagon.

ExCiTEMEnT. QuAliTY. FlEET-ABiliTY.

Kia is the best choice you can make, thanks to our competitive prices and high RVs. On top of that, we are also able to provide you with 5 to 10% more value than our competitors in terms of equipment and technology.

2

Low emissions and low fuel consumption We do more than just meet

industry standards. Eco-friendliness for us is a long-term company strat-

new standards for vehicle quality and

manufacturers. Over 2.5 million

egy. By providing the latest fuel-saving

productivity, and achieved a level of

Kia vehicles a year are produced in

technologies, Kia is, on average, overall

product quality that gives us the reas-

15 manufacturing plants and sold in

one of the best in terms of CO2 emis-

surance to provide each and every Kia

149 countries around the world.

sions. The Kia Rio with its 85 g/km is

with a 7-year industry-leading manu-

a perfect example. Your fleet will thus

facturer’s warranty.

be both friendly to the environment and your budget, because low fuel consumption and emission rates will result in tax benefits in many countries.

7

The Kia 7-year warranty An industry-leading and unique

5

A design that inspires Thanks to our European Design Centre, our cars are fresh and

7-year/150,000 km manufac-

turer’s warranty, which supports our entire model range

bold, and could not be mistaken

and offers peace

Low maintenance costs

for anything other than a Kia. The

of mind for fleet

Our excellent product quality,

Kia cee’d Sportswagon is an excellent

managers.

durable parts and constant

example of our design philosophy.

3

product improvements show how it

Because of our outstanding product

is possible to further reduce operating

design, we are actually one of the main

costs. Service intervals of up to 2 years/

winners in the first-ever Automotive

30,000 km have already been imple-

Brand Contest and are ranked “Best of

Do you need a model portfolio that

mented in most of our models with

the Best” in the Brand Design category.

meets all kinds of functional needs

diesel engines. And the cost of insur-

6

plus the expectations of user-

strong focus on quality and design. We

superior levels of quality and design,

The modern car and engine

are one of the fastest-growing inter-

and a very special team behind it.

manufacturing plant in Žilina,

national carmakers, with over 47,000

feel free to test us!

ance for every Kia model is highly competitive.

4

Made in Europe

Global brand

choosers? all things considered, we

Kia Motors is a modern, dynamic

are offering you forward-looking

and enthusiastic company with a

and inspiring new fleet models with

Slovakia, fulfils our commitment to

employees across the globe. We are

exceptional quality. Here, we have set

one of the world’s five largest car

meet a different kind of fleet at www.kia.com/eu/fleet

dossier I Car Manufacturers’ Fleet Strategy

What OEMs can do to help reduce TCO Once the vehicle is on the road it is not out of the fleet manager’s mind. The use phase accounts for the greatest impacts in terms of costs, as well as fleet safety considerations and environmental performance. What are OEM’s doing to help fleet managers in this critical area?

C

hoosing the right vehicles and implementing a best in class fleet strategy are two of the ‘big’ three factors that lead to best practice fleet management. The third and perhaps the most challenging area of optimisation is the creation of a culture where driver behaviour is aligned with fleet management priorities. Drivers are human beings and changing human behaviour is perhaps the ultimate challenge.

Supporting behavioural change When choosing an OEM a fleet manager needs to appraise more than the vehicle specifications or the maintenance offered in the garage, but how the OEM will support optimisation on the road. An OEM in today’s fleet world is more than simply a provider of vehicles.

The driver is the key The driver is the key to the optimisation. Once the vehicle is on the road the best planned fleet management practices are dependent on how a driver responds to them.

The challenge for a fleet manager is two fold. Firstly, finding effective ways to engage with and then raise awareness amongst drivers of their role in fleet optimisation, and secondly communicating with drivers to achieve the behavioural changes that are desired.

Raising Awareness Awareness is the first step on the ladder of change. Once there is awareness of a particular issue or risk a discussion can ensue on whether a response is necessary and who should take the lead in attempting to change behaviour.

OEM’s are supporting fleet managers build knowledge and raise awareness in three key areas (i) Before the Tip (ii) During the trip (iii) After the trip.

P.26

FLEET EUROPE # 63

Before the trip – The right choice of vehicle OEM’s are designing vehicles that result in optimised performance with no action from the driver. Toyota told Fleet Europe that research and development in the design of a vehicle, so that it intelligently and intuitively support drivers, is a critical success factor for a progressive OEM. The first step of optimising performance therefore, is the domain of the fleet specialist and in the procurement of vehicles. The culture of the fleet programme will influence how drivers use and maintain a vehicle. By communicating this through a procurement strategy a driver will be encouraged to behave in a particular manner.

Before the trip – Educating the driver The cost of fuel is a constant challenge. Educating the driver about improved driving styles, safety and wellbeing is moving up the agenda because of the need to manage fuel. Mercedes-Benz is one of a number of OEMs offering support. Drivers participating in its EcoTraining programme learn how to drive efficiency and results show up to 15% reduction in fuel consumption can be achieved. PSA Peugeot Citroën also offers training and explains that better driver behaviour also reduces maintenance impacts and costs, as well as reducing driver stress-levels. Renault’s DrivingEco2 programme offers similar opportunities and its risk assessment profiling helps identify drivers that are in need of support based on pre-selected criteria. By risk profiling fleet managers can prioritise areas of action. This systematic approach enables metrics to be created that measure performance and evidence the benefit of changed behaviours.

Before and during the trip: Planning As the car becomes increasingly connected more tools and features will enter the market to aid route optimisa-

Successful behavioural change means getting to know your drivers, and being supportive.

tion and in use driver performance, and OEMs will be deploying these to show differentiation from competitors and increase potential revenue opportunities.

Volvo explained that telematics, HMI and the connected car will deliver an improved driver experience as well as reduce accidents and risks for fleet managers. The on-going enhancements to its Sensus driver interface provide drivers with intuitive navigation advice and access to support and information helps drivers ‘do the right thing’.

During and after the trip Telematics offers granular big data like never before. Tools like GPS trackers and OEM vehicle management systems can be configured to highlight risks and opportunities – and estimate the potential return of changing behaviour. Renaults Fleet Assessment Management Service enables real-time management of fleets, providing daily updates on up

to 60 different areas of information like the daily distance travelled, energy consumption and, in the case of EV, battery updates.

The information on vehicle use is not just available for the fleet managerperhaps seen by some drivers as a

Educating the driver about improved driving styles, safety and wellbeing is moving up the fleet manager’s agenda big brother in the sky that is ready to pounce on poor behaviour. Telematics puts the information in the hands and at the feet of a driver in real time or post travel allowing them to review their own performance.

Fiat eco:Drive system analyses how the vehicle is being driven in real time and enables a driver to review his or her own performance. Jaguar Land Rover advanced safety features such as emergency brake assist and dynamic stability control through to tyre pressure monitoring, are examples of how OEM are automatically helping the driver and educating the driver when an action is required to improve vehicles performance.

Creating the change you want to see Successful behavioural change means getting to know your drivers, how they react in certain situations and being supportive. The tools, features and resources offered by OEM can help fleet managers get to know their drivers – and from this change can happen. ■

Tim Harrup

FLEET EUROPE # 63

P.27

Think you can have too

Think Again.

Hyundai understands everyone is unique and that different people need different solutions. That’s why we’re proud to announce the arrival of our newest model, the all new Hyundai i30 3 door. More options for you to choose from, the same quality for you to enjoy. For more information, please proceed to Hyundai.com/eu Fuel consumption in MPG (l/100km) for New Generation i30: Urban 29.7-68.9 (9.5-4.1), Extra Urban 51.4-80.7 (5.5 - 3.5), Combined 40.9 -76.3 (6.9-3.7), CO 2 Emissions 162-97g/km.

much of a good thing?

dossier I Car Manufacturers’ Fleet Strategy

What does mobility mean?

In the smart city mobility will be integrated, with citizens and businesses using real time data and shared access to optimise personal mobility on a massive scale. If a future of integrated mobility what will be the role of the manufacturer?

T

he concept of mobility presents new business opportunities for transport suppliers, manufacturers and a range of new market entrants.

In a city where mobility reigns consumer service expectations will be very different from today’s model of car ownership.

The dawn of mobility Cars are becoming smarter, increasingly connected and new ownership and access models are starting to appear in in cities as manufacturers explore a new business opportunity.

Bill Ford, Executive Chair of Ford Motor Company, speaking at TED conference in June 2011 said, “When you factor in population growth, it’s clear that the mobility model that we have today simply will not work tomorrow. Frankly four billion clean cars on the road are still four billion cars, and a traffic jam with no emissions is still a traffic jam.”

A challenge and opportunity Smart cars need smart roads, smart transport systems and smart parking. Perhaps more importantly a smart car will need to be embedded within a city-wide integrated multi modal mobility platform.

This change will require a shift in mind set - from competition between different modes of transport

P.30

FLEET EUROPE # 63

to their complimentary use. It is in this space that new business opportunities arise and manufacturers are exploring this area with increasing vigour.

Integrated Multi Model Solutions A mobility solution that provides seamless access to public and private transport solutions, from shared cars, smart parking, EV charging all

Mobility presents manufacturers with an opportunity to extend their reach by offering new and value add services the way through to trains, buses or bikes is a potential business opportunity for manufacturers.

The creation of Daimler Mobility Services (DMS) early this year evidences the growing interest of manufacturers in mobility. CEO Klaus Entenmann said, “Urban customers demand new and flexible mobility solutions – and we want to offer these services to them accordingly.

We want to be the first choice provider of innovative mobility services.”

Daimler’s mobility offerings are being aligned through the creation of DMS. Robert Henrich, Managing Director of DMS, said, “Combining programs such as car2go and moovel into one company enables us to offer customers attractive and connected mobility services from a single source.” DMS is not just targeting private citizens but corporations, with Henrich adding that DMS offer extends to the commercial fleet management sector.

Moovel, a smartphone app, provides users with booking/access to solutions ranging from car sharing, ride sharing, taxi booking and public transport through to bikes and walking. Available in the German cities of in Stuggart and Berlin there are plans to extend Moovel’s reach in 2013.

Daimler is not the only manufacturer engaged in mobility. Mu Pro by Peugeot makes cars, scooters and bikes available for renting for few hours or a days, to corporate customers via online booking. Multicity, also from PSA, is a web portal that helps users to plan travel door to door with a wide range of services.

Renault is developing its EV range to confirm its position as a vehicle manufacturer engaged in sustainable mobility. Alongside Renault’s 4 full electric models – Kangoo ZE, Fluence ZE, Twizy & ZOE – a

Moovel, the smartphone app from Daimler, provides users with booking access to a wide range of mobility solutions.

car-sharing service, Twizy Way, was recently launched in Saint-Quentin-en-Yvelines (France).

Mobility presents manufacturers with an opportunity to extend their reach by offering new and value add services. For example BMW has a solution called ParkatmyHouse.com, which was established in London in 2006 and connects home owners with a parking space to car drivers looking a safe place to park. The service operates UK wide and has 150,000 registered drivers able to access 20,000 unique car parking locations. This service is in addition to BMW’s on demand car sharing service and iDrive.

Intra-City Solutions Volvo is journeying into the future with its participation in the SATRE road train project. The SATRE project saw cars wirelessly joined, a few metres apart, under the control of a lead vehicle. A driver, once he has joined the road train, no longer needs to drive. In a connected future will road trains be running between major cities, operated by manufacturers or other service providers?

The Mobility Connector Plugging together different modes of transport to enable complimentary rather than competing solutions on a city wide basis has been an aspiration for public administrators tackling traffic congestion and pollution.

When Quicar arrived in Hannover, its Mayor, Stephan Weil, said, “Volkswagen’s car sharing scheme is ideally

well-suited for Hanover. It supplements the city’s mobility concept, which is based on an environmentally compatible mix of all means of transport.”

Cities are driving change in transport provision and creating opportunity for new forms of mobility. In February this year Boris Johnson, the Mayor of London announced his intention to create the world’s first Ultra Low Emission Zone by 2020. Johnson said, “My vision is a central zone where almost all the vehicles running during working hours are either zero or low emission.”

Technological advancement is enabling the connection between different modes of transport and is spurring innovation to meet the demands of the next generation of city dwellers. Technology has enabled complex data systems from different transport operators to be integrated, and customers are able to identify, compare and access multiple transport modes with a swipe of their smartphone. The smartphone is the connector - and a future access and payment solution - that is central to making integration possible.

Perhaps manufacturers are building the answers that cities like Hannover and London are looking for, and in partnership with pioneering cities new business models for manufacturers will be created. ■

Tim Harrup & Jonathan Green

FLEET EUROPE # 63

P.31

dossier I Car Manufacturers’ Fleet Strategy

Listen to the car fleet future No one knows exactly what the future will bring, but everyone has an idea about the possible impact of today’s economy and fleet management trends on tomorrow’s business.

The next big thing in international fleet business The next big thing in international fleet business is downsizing. The future lies in continuously lower emissions, more efficiency, maximum safety for daily driving. One example of the concept of downsizing in technology is our TwinAir-engine: it combines a small 0.9 two-cylinder engine with a state-of-theart turbocharger. The result is an engine capable of performance similar or even superior to that of a bigger engine, but with lower fuel consumption and emissions.”

For Opel/Vauxhall the next big step is related to our product portfolio, with new model launches and the refreshing of our powertrain offer with new more efficient engines and transmissions. We will also increase our focus on Small and Medium Enterprises as we see great potential for our current and forthcoming portfolio amongst these smaller companies.”

There are two fundamental issues.

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

P.32

FLEET EUROPE # 63

A piece of advice for fleet-owners

Christophe Bertoncini, Fleet & Used Cars Director, Fiat Group Automobiles

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

Martin Jahn, Managing Director, Volkswagen Group Fleet International

With regard to the need to have a partner at an international level that is able to offer a complete range of cars and LCVs with attention to ecological requirements and the possibility to achieve cost reductions by low maintenance costs too, FGA is the ideal OEM for every international fleet customer.”

We know that fleet managers will always focus their choices on the TCO when it’s coming to decision making, but driver appeal is an increasingly important element of any fleet policy, as retaining talent is a major goal for all employers. Opel/Vauxhall’s latest products bring excitement and provide the ideal blend of TCO, individualisation and fun to drive. Increasingly we see products that were previously attractive to retail customers coming under closer fleet scrutiny and consideration.”

For Volkswagen Group, fleet business is more than just sales and the delivery of vehicles to customers. Care and support is at the heart of our service in 2013 and also beyond.“

As the economic situation changes, there will be a change in fleet make-up.

There will be more choice in the range of vehicles that are available in fleet policies. With current policies looking at the practicalities of cars and mobility, companies will start to look at fleet cars as rewards and employment incentives.”

There are 2 big things that will hit international fleet business: the evolution of the electric car is unstoppable and the need for zero emission vehicles becomes more obvious every day. Some countries like China will have to go into this technology and this will drive this market up.

Secondly, there is car sharing. Many big corporations are advancing into this topic.

Securing mobility for all does not mean providing cars per headcount.”

So-called experts declared large luxury cars dead. The market tells a different story: M-Class sales were up 30% in 2012. Putting ever more tax burden on company cars will backfire. After all, strong premium OEMs & suppliers provide significant share of jobs & wealth in Europe. Plus, there’s plenty of proof that “big and green” go together: our S 250 CDI is 2012 World Green Car of the Year, and the E 300 BlueTEC HYBRID is the world’s most efficient luxury sedan with 4,2 l/100 km, and 109 g/CO2 per km.”

We believe that the first next big thing will be the car-sharing solution which offers a new approach to mobility.

We will shortly propose a new offer for fleets regarding mobility solutions. The second thing is all the new green technologies that reduce costs and CO2 emissions.”

Mobility offers and sustainable development policies adapted to fleet customers’ requirements based on TCO reduction are the main key values for the international fleet business. Renault, with the launch of the zero emission vehicles, is playing an important role towards fleet customers in their capacity to reduce costs, fuel consumption and CO² emissions.”

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

Carlos Montenegro, Corporate Sales Director, Infiniti Europe

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

Stéphane Chesnel, Head of International Fleet Sales and Development, PSA Peugeot Citroën

Emmanuel Longeard, Sales Director Corporate Sales Division, Renault

We believe that people lead how and where we do business. We are connecting with more people to share the fleet knowledge and experience we have at an international, national and local level.

We don’t believe you select a brand; you select the people, the product, the service and the financial package that delivers the most exceptional offer to your company drivers.”

The need to have clear objectives globally is crucial. Communicating a common policy on sustainable development or CO2 emissions, or on safety equipment. Focus on brands with real global presence, brands with alliances that can offer the right products across the globe.”

Driving a Mercedes-Benz is always a matter of the heart, too. Starting as the inventor of the automobile 127 years ago with countless automobile icons, such as the legendary 300 SL gullwing, we still offer the most attractive portfolio, being it compact and large cars with exemplary CO2 emissions or vehicles like the SLS that makes your heart race.”

First of all, be sure you perfectly know your needs. You need to have very specific products and services to be the most efficient. This is why you should pay particular attention to the global TCO of your fleet. Also, depending on your needs (urban,…) the new technologies may be very good solutions with a wide range of products such as e-HDi, hybrids and electrics.”

Finding the right company to manage the corporate fleet can be a challenge. So it’s important to select a structure allowing the customer to be fully supported in their own international development.

Renault with its worldwide structure dedicated for corporate clients is allowing simple global contact and local implementation expertise. Secondly it’s recommended to select a vehicle range highly competitive in terms of price, TCO and CO2 emissions.”

FLEET EUROPE # 63

P.33

The next big thing in international fleet business If in Europe public opinion is still heavily driven by CO2 emissions, in the U.S. and Japan the focus is on NOx and PM. We believe because of the increasing trend of globalisation these three types of pollutants will become deciding factors in all regions. For these reasons, it is important to start having a balanced approach towards all emissions.”

The future will be all about sustainable mobility solutions to meet the global trends of urbanisation, Increased CO2 regulations and also the integration of modern connectivity technology into the vehicle. We clearly see that cars in the near future will integrate the same level of digital services that consumers today have in their homes or at work, with a smaller environmental impact than today.”

Reducing costs for fleet customers will be the on-going challenge for a fleet decision maker and the manufacturers.

Reducing TCO, downsizing and centralizing processes might not always make the employee happier. Fleet customers expect answers from an OEM, which will include new mobility solutions. Car sharing will continue to grow and evolve from a B2C to a B2B.”

Electric vehicles – cars and LCVs - will be the next big thing, opening a new way of mobility inside city centres.

Nissan is already strongly engaged with main European cities but also all across the globe.”

P.34

With BMW i the BMW Group has created a new understanding of individual mobility by offering visionary electric cars and holistic e-mobility solutions combined with innovative supplementary mobility services. BMW i thereby provides a look ahead to the very first electrically powered premium vehicle, due to go on the market end of this year as the BMW i3. The BMW i8, a new generation of sports car with plug-in hybrid drive concept, is likewise well on the way to serial production readiness. These new models complement BMW Group’s product offering towards its corporate customers.”

FLEET EUROPE # 63

A piece of advice for fleet-owners

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

Javier Vazquez, Director Global Accounts, Volvo Car Corporation

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

Emmanuel Bussiere, International Fleet Sales Manager, Nissan Europe

Christel Reynaerts, Head of International Corporate Sales, BMW Group

My advice would be to work towards a balanced relationship. Ensure you as customers can communicate a clear strategy & policy to OEMs and have the governance structure to pursue this.

This will enable OEMs to deliver value beyond supplying cars.”

When designing an international fleet policy, it’s important to maintain a balance between driver choice and supplier consolidation - designing your fleet around TCO, driver brand preferences but also environmental and safety considerations. Ultimately drivers are your internal customers and their satisfaction will lead to higher take-up rates and better realisation of the financial benefits of a global policy. We would also recommend that fleet policy should be part of a larger mobility vision.”

Consider Kia as a real alternative for your portfolio. This brand offers more than good CO2 or strong residual values. Kia gives your fleet a unique quality promise for the products, award winning design and is a likable modern brand, which will meet all of your needs.”

Use a car manufacturer that can provide you with support all across the world through a unique contact. Nissan will be able to provide your purchase or car fleet manager wherever his region his, with such support.”

Steven Schoefs

THE NEW SEAT LEON Technology to enjoy

For further details, please visit www.euroncap.com

ENJOYNEERING THE MOST BEAUTIFUL WAY OF DRIVING A FUNCTIONAL CAR Sleek and eye-catching, the new SEAT Leon is beautiful and practical. The Leon is designed for maximum performance with low consumption and great safety, making it a powerful choice for fleet. The latest technology is part and parcel of the Leon. Enjoy maintenance-free SEAT Full LED headlamps that light your way as well as advanced safety features like our Automatic Post-Collision Braking System and the Tiredness Recognition System, for which the Leon received the maximum 5-star Euro NCAP rating. The user-friendly EASYCONNECT system allows you to operate the Leon’s large array of infotainment and navigation options through a single touchscreen. Form and function live together comfortably in the new SEAT Leon.

Test drive it and enjoy the future of driving. / SEAT Full LED lights

/ Driving Assistance

/ Best residual value among its competitor basket

SE AT.COM

SEAT FOR BUSINESS Average consumption: 3.8-6.0 l/100 km. Average CO2 mass emissions: 99-139 g/km.

dossier I Car Manufacturers’ Fleet Strategy

With an open mind and a fleet view at the Geneva Motor Show 2013 Amongst the great international gatherings, the Geneva show has a particular flavour of its own. Like no other, it brings together, rational cars with exclusive models and mouth-watering prototypes. We take a look round the best examples from each category and at possible new fleet cars for tomorrow.

1. BMW 3-Series Gran Turismo: Following the 5-Series, it is the turn of the 3-Series to receive a GT version.

In concrete terms it gains 11 cm in wheelbase in order to give substantially more room in the rear. The impression of interior space is also helped by the extra 8cm of height. And its 520 litre boot is 25 litres more than the 3-Series Touring!

2. Mitsubishi Outlander PHEV: Mitsubishi is marketing its rechargeable hybrid Outlander just as Geneva opens. This ‘green’ version of the SUV comes with three power units on board, a 2-litre petrol driving the front wheels and two electric motors for the rear wheels. The 12 kWh lithium-ion battery located under the floor enables the Outlander to cover 55 km in pure electric mode. On long journeys the petrol engine functions as a generator to produce electricity, all of which means that CO2 emissions are just 44 grams per km!

1

2

3. Renault Captur: Renault too is attacking the small SUV segment with the Captur. In line with the new styling of the brand first seen on the new Clio, this SUV is about the same length, at 4.12 metres. The Captur stands out for its ability to be personalised, in particular with contrasting paintwork.

CO2 emissions start at 96 grams with the 1.5dCi, developing 90 bhp.

4. Peugeot 2008: Based on the recent 208, the 2008 SUV remains relatively small. Just 4.16 metres long, it is at home in the city but can equally well

P.36

FLEET EUROPE # 63

4

3

set off for a weekend away with its slightly raised suspension. The car is only available in two wheel drive, and is produced in France, Brazil and China.

It will showcase the PSA group’s 3-cylinder engines and CO2 emissions start at 99 grams. A 2008 hybrid prototype will also be on show 5. Nissan Note: Nissan has completely redesigned the Note. Beefier looking, the second generation of the urban monovolume has been given more equipment including a reversing camera with object detection, panoramic vision with mirror-mounted cameras and lane deviation warning. CO2 emissions from 95 grams are available from the Renault-Nissan Alliance range of engines on offer.

5

6. Mercedes E-Class: At the beginning of the year Mercedes redesigned its kilometre-devouring E-Class. This will be seen in Geneva with its single block headlights and sporty grill. Mercedes has also used the redesign to add to the list of electronic safety equipment available. ‘Intelligent Drive’ for example helps prevent side impacts and collisions with pedestrians. Under the bonnet, new 4-cylinder direct injection petrol blocks are to be found, along with the frugal hybrid diesel with its 107 grams of CO2 per km. emissions.

7. Volkswagen Golf Variant: Quickly following the launch of the seventh generation of the mythical Golf, Volkswagen is preparing the estate version. Quite a rejuvenation, as the current Golf Variant in the showrooms is still based on Golf 5! Modern engines will be on offer for the model which is built on the Volkswagen MQB modular platform.

6

7

8. Qoros 3: The new Chinese brand Qoros is not likely to be invading fleets in the near future. But it will still generate undeniable interest in Geneva. Classic lines are relatively convincing, the result of a design team recruited from around the world, and especially Europe. The start of the Chinese invasion… not necessarily, especially with no diesels on offer.

8

FLEET EUROPE # 63

P.37

9

9. Toyota Auris Touring Sports: The new Auris will also be available as an estate, by contrast with its predecessor. The model, some 28.5 cm longer than the saloon, will be in the showrooms in the summer. Diesel, petrol and hybrid versions will be available.

A flat floor when the seats folded away is made possible on the hybrid by the under-floor battery location. CO2 emissions are down by a gram compared to the saloon, to 86 grams.

10. Citroën Technospace: Officially this is still a concept, but in reality the Technospace to be found on the Citroën stand is the forerunner of the next generation C4 Picasso. This is expected in the middle of the year and should look a lot more dynamic than the version currently on sale.

10

11

12

11. Opel Zafira Tourer: The specification and a look under the bonnet are required in order to spot the evolution in the new Zafira Tourer. The previous 1.7 litre CDTi has given way to the new 1.6 litre block which meets future Euro-6 norms. This develops 136 bhp and 320 Nm of torque. In EcoFlex mode this 7-seater monovolume emits just 109 grams of CO2 per km, consuming 4.1 litres of fuel per 100 km.

12. Chevrolet Spark EV: Chevrolet has confirmed that the electric version of the Spark, following its marketing in the USA, will come to this side of the Atlantic in 2014. The model on show in Geneva develops 130 bhp and an extremely sporty 500+ Nm of torque! It is not yet known how far the 20 kWh will propel the Spark at this rate…

13. Alfa Romeo 4C: Alfa fans rejoice! The brand is going back to its sporty roots with this 4C coupe. Two seats, less than 4 metres in length, a centrally mounted 1.75 litre in-house turbo engine… Ultra-light with its very light carbon chassis, the 4C is equipped with the double clutch six-speed box. ■

13

P.38

FLEET EUROPE # 63

Jean-François Christiaens

www.citroen.com/business

Model shown: Citroën C4 HDI 150 Exclusive + with equipments.

Mixed consumptions: (l/100km) and CO2 emissions (g/km) of Citroën C4: from 3.8 to 7.0 and from 98 to 162.

CITROËN C4. XENON DIRECTIONAL HEADLIGHTS WITH CORNERING LIGHT FUNCTION. At Citroen, we’re constantly engineering more environmentally conscious and efficient cars. Take the stylish C4 e-HDi, strong, spacious and superbly equipped, with the biggest boot in its class. It also offers revolutionary Stop & Start diesel technology, which is all about delivering more for less. Moreover, driving the Citroën C4, you have increased visibility thanks to the Xenon directional headlights and the anti-fog spotlights with cornering light function. The combination of these two technologies brings an additional beam of light to curves and intersections, following the direction of the vehicle. Citroën C4, active technology serving safety.

To find out more about Citroen Fleet, please contact Citroën International Fleet at b2b@citroën.com

CRÉATIVE TECHNOLOGIE

dossier I Car Manufacturers’ Fleet Strategy

The Only Way Up is... Global With the European fleet market in a static funk, the fight to increase market share is both tougher than ever, and more crucial for success. Which is why OEMs are eyeing other continents - but with an integrated strategy. The only way up is… to go global. markets in what used to be called the ‘developing world’. And secondly, the crisis has also provided the incentive for multinational companies to look for efficiencies on a truly global scale, also with respect to their differently-managed fleets across a variety of markets.

A

nalysts predict that 2013 will be a ‘challenging’ year for the European fleet market. In layman’s terms, that means: harder battles, for smaller victories. But a leaner, meaner market by necessity also is a more creative one. As Nietzsche already knew: What doesn’t kill you, makes you stronger. And manufacturers are facing the turbulence ahead with battle-hardened confidence, and an interesting array of weaponry in their arsenal. Increasingly, that weaponry is long-range, as OEMs are responding to the market demand for global solutions.

This ever louder demand has two major, inter-related causes. Firstly, the ongoing economic crisis in the so-called ‘developed world’ has narrowed the gap with the fast-growing

P.40

FLEET EUROPE # 63

Looking for consensus And here the plot thickens. While manufacturers may agree on the need for a global strategy, there is no consensus on how to organise such a global strategy. One OEM decides to process all requests for global fleet strategies through its existing channels. Another appoints dedicated account managers with a global portfolio. And a third decides to create an actual, physical headquarters with the sole mission to centralise, coordinate and control its entire global fleet strategy. Which approach will work out for the best, which will turn out worst? Perhaps only time will tell. But perhaps our analysis of the paths presently taken by the OEMs may already provide you with an idea. Any prediction, however, will need to be subtle and reasoned. Many factors determine future success or failure of any global strategy: the choices made in rolling out new products, and renewing existing ones; the anticipation of the impact of fiscal measures to penalise the combustion engine, and pro-

mote its alternatives; and last but not least, the care given to integrating new technology in tomorrow’s vehicles that will allow better monitoring of driver behaviour. ■ Frank Jacobs

Global Fleet Network If you have global fleet responsibilities or if your company is looking to optimize the fleet management approach through globalization, then the new Global Fleet Network is your place to be. This networking and cross-media platform provides you with in-depth knowledge on global and regional fleet management as well as on upcoming economies and BRICs. Please visit the Global Fleet Network at www.globalfleet.com and register.

500,000 cars: a growing success story.

Alphabet has achieved a significant milestone: we now have more than 500,000 cars under management. This number symbolises our growth and underlines the success of our Business Mobility strategy.

We are well positioned to meet future challenges and to pioneer innovative solutions that will satisfy the changing mobility needs of our customers.

For forward-looking answers: www.alphabet.com

dossier I Car Manufacturers’ Fleet Strategy

The driverless car Is the driverless car still very far off? It seems not. Many car manufacturers are revving up for it. The first autonomous cars are already being marketed now. They have their unique strengths, and one thing is certain: mobility managers of the future will have to respond to these developments – and do so on time.

C

ars that drive to their destination on their own while the driver is working on a tablet, phoning, reading... you’d think it was science fiction.

Yet the time when they will be overwhelmingly present in the day-to-day streetscape is much nearer than you might think.

Autonomous minibuses Already now, driverless vehicles are out there. Just consider driverless minibuses. Some follow routes that may or may not be temporarily blocked off, for example with barriers. Others are around in the inner city, at airports or on university campuses. People like them because they call at stops frequently, which means that passengers have very short waiting times. What’s more, there are no driver costs, and it cuts down the use of cars and so the need for parking spaces. The ParkShuttle is an example of a so-called ‘people mover’. In the Netherlands, it connects an underground station with a business park. It is also in use in the emission-free city of Masdar in Dubai.

What’s more, there have been pilot projects in Antibes, Monaco and Versailles (France), Hanover (Germany), Utrecht and Delft (the Netherlands).

Another example is the Navia, by the French company Induct. Or again: the British ULTra (Urban Light Transit) that connects a business car park with a terminal at Heathrow.

P.42

FLEET EUROPE # 63

In the Netherlands, the ‘ParkShuttle’ driverless minibus connects an underground station with a business park. (Copyright: Connexxion).

Automatic steering system on the market In the meantime, more and more cars are being equipped with systems that are of assistance to drivers. Just think of the technology that allows automatic parking; or adaptive braking assistance, which helps in performing correct braking; or help with keeping one’s lane (corrective braking action can follow automatically); and so on. A very recent development is the automatic steering system, which is coming onto the market for the first time in 2013. It is an option for the S Class Mercedes-Benz. This

car will be able to autonomously follow the car in front of it in slow-moving traffic, even in a curve. And if the driver moves out or a car in oncoming traffic tries to overtake, the car automatically corrects its own path.

Lots of benefits Systems that help the driver are already making clear progress in the direction of the fully autonomous car. Such systems use a combination of radar, lidar (LIght Detection And Ranging), cameras and/or navigation software. In 2012, Google even demonstrated such a vehicle: it brought a

In 2013, a car will be coming onto the market that will be able to autonomously follow the car in front of it in slow-moving traffic. (Copyright: Daimler)

blind driver to his destination. Wheelchair-bound patients, minors, disabled elderly people...will all be able to move around in such a vehicle. But autonomous cars offer even more advantages. Often cited is the increased safety: for example, drivers may have too slow a reaction time, which is less likely to occur in the case of a driverless vehicle.

Furthermore, drivers can doze off, may be absent-minded, become ill or even drunk; but not their car. An important advantage is the increased productivity of employees.

While the car is driving to its destination, the erstwhile drivers can be working on their computers, phoning, reading... and the car will even park itself without any effort on their part. Besides, since they do that without anyone on board, they need less parking space (the doors don’t need to open), so parking lots can be smaller. Without people on board, the car can make its way to the garage, and businesses can send them off with a particular product onboard to drive to a customer. Also, autonomous vehicles can drive closer to other cars, and do so at constant and at higher speeds (for instance by forming so-called ‘road trains’ with other cars). The optimised driving behaviour will also reduce fuel consumption: in the case of ‘road trains’ by as much as 20%.

And some pitfalls Unfortunately, there are also pitfalls. Specifically, the maintenance and repair of such high-tech, autonomous vehicles is no easy job. Software security specialist McAfee has also warned that the security of the driving systems does not yet go far enough, and is vulnerable to attack by hackers, malware and the like. And what if the software suddenly packs up while the car is speeding along the motorway at 120 kilometres per hour?

Car manufacturers believe in driverless cars • Since 2005, BMW has been testing driverless car systems. Within a few years they were going to launch partly autonomous cars onto the market.

• In 2013, Mercedes will be the first to launch a (semi-) autonomous car.

• GM expects to be marketing partly autonomous cars by 2015, and fully autonomous ones by 2020.

• Volvo is devoting itself heavily to technology that will make ‘road trains’ on motorways possible. By 2020, they should be ready.

• Volkswagen has tested a ‘Temporary Auto Pilot’ (TAP) system which should make it possible for autonomous cars to travel up to 80 miles per hour on motorways.

• Audi intends, by no later than 2014, to introduce the ‘Traffic Jam Assistant’ in its Audi A8. The system would make autonomous driving at 59.5 kilometres per hour possible.

Google & Nevada Meanwhile, in the USA, the first state has passed a law allowing driverless cars on its roads. The law came into force on 1 March 2012, in Nevada. The first licence went to an autonomous Toyota Prius, equipped with technology

by Google. In the meantime, similar laws have also been passed in Florida and California. Watch this space. ■ Michael Hawking

FLEET EUROPE # 63

P.43

Management I International Fleet Manager of the Year

The integrated car fleet philosophy at MSD It is quite clear that to win the title of International Fleet Manager of the Year, a company’s fleet management has to excel in all areas. In the case of MSD, the fleet operation and its management are totally comprehensive, with Joe Carreira and Robert Patrick responding to company, business, regional and driver needs. Below is a relatively small selection of the elements which convinced the Fleet Europe Awards jury late last year.

T

he first element to note about the fleet policy of MSD is the strategic split in operational responsibilities. If two people’s names were called out to come up onto the stage in Cannes in November to jointly receive the title of ‘International Fleet Manager of the Year’, it was because these really are two parts of a coherent whole.

Joe Carreira is responsible for policy, governance, compliance and fleet operations, while Robert Patrick takes care of sourcing, commercial processes, supplier performance and risk.

proach and leverages operational and commercial benefits whilst drawing on the expertise of these FMC’s. This also means that the MSD internal resource in markets which provided mainly fleet administration services has been replaced with FMC services where possible. This has led to elimination of the vast proportion of fleet administrative positions across the region and the creation of a regional team of four people to provide the centralised operational direction across the region. Each of the four regional team members oversees activities in around twelve markets.

For markets with less than 100 cars, single source leasing company supply models have been put in place with benchmarking included in contracts to ensure competitive pricing would be maintained over time.

The manner in which fleet management is geographiCar Policy cally organised is of interest.

The MSD international car Overall fleet management policy revolves around a seand procurement are cenries of “Global Guiding PrinSavings tralised at a regional level. ciples” covering all of the As a result of the implementation of its fleet stratThese functions have esmajor elements required egy, by delivering step changes in fleet policy, suptablished MSD’s operationto ensure compliance with ply and operations, MSD has delivered savings in al model for fleet together company objectives, from excess of $27 million in the period from January with the procurement and setting out the purpose and 2010 to July 2012, and has a robust savings pipeline supplier management stratscope, to driver responsibilstretching to 2014. egies. MSD operates a policy ities, car lists and trading up of outsourcing non-core acor down. In the case of Eutivities wherever possible, and thus it is that third parrope a Policy pro-forma document exists to which various ty fleet management companies (FMC’s) manage MSD amendments may be made in line with the Fleet Guiding fleet operations and transactional procurement with Principles. Local amendments which may contradict the MSD’s approved suppliers wherever possible in-marGuiding Principles are authorised where appropriate, but ket. This provides the company with consistency of apmust receive the agreement of the EMEA fleet manager. If

P.44

FLEET EUROPE # 63

Joe Carreira and Robert Patrick have convinced the jury of the Fleet Europe Awards of their fully integral car fleet process approach.

MSD Fleet passport

• Company: Merck, Sharpe & Dohme (MSD) • Sector: Pharmaceuticals • Head office: New Jersey USA • Operations in: 100+ countries • Employees: 80,000 • Fleet Managers: Joe Carreira, Fleet Manager EMEA and Robert Patrick, Regional Sourcing Manager EMEA Fleet • Years in post: 4 (both) • Cars under responsibility: 12,200 (EMEA)

Robert Patrick, Regional Sourcing Manager EMEA Fleet at MSD, has successfully set up a clear preferred vendor strategy in terms of car fleet management.

Recognition and Credibility

“MSD are very proud to have recognised by the industry and our peers with this award which we feel has been achieved through our successful implementation of a well-considered strategy.

This recognition enhances the credibility of the entire Fleet Team. The team are now looking towards the second cycle of fleet replacements effective from 2014 and are considering approaches that will deliver incremental benefits for our business. This award enables our senior stakeholders to have enhanced confidence that the team have the capability to deliver continuing benefit to the company”

a difference of opinion is not settled here, there is a system for enabling the MSD Governance Structure to arbitrate. Of the 51 countries involved, car policies have been agreed in all, with only one country’s individual request having being ‘passed up the line’ by the latter part of 2012 – and the outcome was in favour of the fleet team. Deviations from the policy tend to reflect local realities.

For example, in Russia petrol can be selected as the default fuel (as opposed to diesel) and in the Netherlands hybrid models offer taxation advantages for the individual.

Green and safety In the modern fleet world it would be unthinkable to operate a successful and effective policy in line with the overall objectives of the company, without these two elements playing a vital role. In the case of MSD, in common with many other major multinationals, there is a corporate green policy with CO2 reduction targets.

MSD’s Global Fleet Guiding Principles (which establish the framework for individual country car policy) set out additional requirements with regard to the environment. And on top of this, within the EMEA region the fleet team has set CO2 reduction targets running over a number of years as well as a maximum CO2 ceiling for any one car. MSD has a Global Environmental Strategy which entails a reduction in the CO2 emitted from

• Majority finance method: full operational lease

its facilities and fleet, with fleet representing approximately 13% of the total CO2 emissions. The target is a 10% overall reduction by 2015 using 2009 as a baseline.

CO2 Guidance But on top of this MSD is ensuring that the company targets will be far exceeded through effective policy and ensuring that the process for including vehicles on car lists pays particular attention to efficient vehicles. The Fleet Guiding principles provide high level guidance on green issues. Guiding principle number five provides some global guidance for CO2 emission levels based on legislative standards. For each region, guiding principle ten allows the CO2 targets to be defined to a suitable target in that region. For the EMEA Region, as part of the overall Fleet Project, the team agreed that an approach was required which included setting targets well above the 10% reduction by 2015 set out in the Corporate Environmental policy. In numerical terms, during 2010 the EMEA Fleet Team pledged to reduce average CO2 for all diesel vehicle acquisitions to below 135g for the 2011 calendar year and below 125g in 2012. The results speak for themselves: acquisitions for 2011 aver-

FLEET EUROPE # 63

P.45

aged 132g CO2 and by late 2012 had dropped to126g.

Key equipment MSD also has a Global Motor Vehicle Safety Policy. One of the ways in which this is translated into fleet operations is by specifying key essential safety equipment, an element which forms an important component of MSD’s Global Fleet Guiding principles. This mandatory equipment includes: three-point seat belts for all positions, with pre-tensioners, dual front passenger airbags (driver and passenger), head restraints for all seating positions, side airbags at least for the front seats, plus head protection (separate or integrated), antilock braking systems (ABS), electronic stability control (ESC), daylight running lights and audible back-up alarms for commercial vehicles and cargo vans with obstructed vision and sight lines.

TCO A crucial facet of any car policy in the modern business world – and in particular during these crisis-affected times – is the Total Cost of Ownership. MSD includes a wide range of elements in its calculations: acquisition costs (for leased vehicles the lease cost, for purchased vehicles the asset cost), service and maintenance, bundled in for leased vehicles, costs on use for purchased vehicles, other ancillary service costs (relief vehicle costs, roadside assistance costs), fuel, taxes, insurance, costs associated with contractual changes and miscellaneous damage costs. To monitor the TCO, MSD has access to the on-line databases of its preferred leasing companies, and also uses the services of an international data consolidator. This gives an accurate regional picture. Key performance indicators for fleet suppliers (leasing companies) include the delivery of reports according to the agreed time schedule, quarterly review meetings, driver services with the

P.46

FLEET EUROPE # 63

Joe Carreira and Robert Patrick received their International Fleet Manager of the Year Award from Hans-Georg Lutz, Senior Manager International Corporate Sales Mercedes-Benz Cars, and Ivor Johnson, EMEA Fleet Director at Pfizer and former International Fleet Manager of the Year.

leasing company being the primary contact for fleet-related issues. This point includes making sure drivers are aware of brands, models and derivatives available within the scope of the local fleet policy. For contract terminations and replacements, the leasing company has to advise MSD and both deliver the new car (specified as agreed) and collect the old car, on time and at the agreed locations. Servicing, at the right time and at points convenient for the driver, is also the responsibility of the leasing company.

CO2 improvements

Innovation – a structured approach Many companies like to think they are being innovative in their approach to various issues, but in the case of MSD the approach was clearly defined and structured. The catalyst for fleet transformation within the company came in November 2009 when Merck Inc. merged with Schering-Plough, creating the 3rd largest pharmaceutical company in the world. As part of the merger, the company announced to Wall St. that it would seek to reduce costs by $3.5 billion by the end of 2012 – with $1.4 billion of this total through pro-

Discussions regarding CO2 targets beyond 2012 are ongoing within MSD, but are likely to be set at an overall reduction of 3-4g CO2 per annum.

Given this expectation, the company estimates expect that by the end of 2015, average CO2 will be approximately 120 grams per km. This will be a reduction in CO2 of 25% from the 2009 baseline, far exceeding the 10% target set by the company. As an example of the success being achieved, between the second quarter of 2009 and the second quarter of 2012, average CO2 emissions across the entire EMEA fleet had reduced from 159 grams per km to 142 grams per km.

curement-related activities. EMEA Fleet was identified as one of eight sourcing projects to be given priority following the merger being confirmed. A parallel International Benefits Project was instigated at the same time. A Core Project Team was established comprising primarily of individuals from the procurement, fleet, facilities management and HR functions and the relevant members of staff identified. At this early stage the Fleet and Benefits project teams agreed that there was an element of intersection in their projects which would require coordination and agreement during the project lifecycle. Within this early stage initial validation work was carried out to establish the potential benefits of this European project. From this high level review process it very quickly became clear that significant benefit could be obtained by executing the project. A high level business case was constructed and approved.

ation stage, the decision was taken that MSD would channel the maximum amount of business through three regional partners. This RFP had a strong focus on coverage and the ability of suppliers to work under MSD’s proposed fleet operating model and the agreement to operate under tightly defined contracts. The objective of this was to minimise MSD’s exposure to extra costs beyond those set out in initial contract schedules. The RFP for OEM’s included specifying expected volumes for seven vehicle types – small, small premium, medium, medium premium, executive, MPV medium and MPV large classes. OEM’s then responded with proposed discounts and centralised rebate offers which varied depending on whether they would be sole OEM or under a two, three or four preferred OEM’s model. At an early stage of the process it was clear that a single or dual OEM model would not be optimal.

Concrete action Defined action points to ensure that EMEA fleet operations would achieve its part of the cost-cutting operations were identified. CO2 and TCO would become the key parameters in fixed car lists with defined benefit levels per category/staff level in order to ensure future savings would flow back to the business. A drastic reduction in supplier numbers was prioritised, particularly in OEM’s and leasing companies. Due to historically unfavourable terms in many sole supply markets, the decision was taken that for leasing companies there would be dual supply in all markets with over 100 cars with multi-bidding on all vehicles.

Where OEM’s are concerned, the optimal number of suppliers would be established through a subsequent RFP. Within the strategy cre-

Supplier management Following the appointment of Regional Suppliers, Fleet in MSD is now operating under a mature model. There are thus a number of elements which make up the supplier management process: formal local regional and local supplier review meetings – scheduled once per quarter, formal KPI processes to measure supplier performance (see above), annual supplier value management questionnaires enabling key stakeholders to give their view of regional supply partners, supplier staff to give their view of MSD and finally supplier staff to conduct a 360° review on their organisations.

As a result of this structure supplier performance is on an upward trajectory and the company is seeing clear benefits. ■ Tim Harrup

Joe Carreira, Fleet Manager EMEA at MSD, defends with enthusiasm the chosen fleet strategy and explains the key elements of the European car policy.

The total resource involved in running fleet in MSD has reduced by over 80% as a result of the introduction of regional suppliers, consistent business processes and the Global Regional Policy framework and Guiding Principles.

Words from the winner Watch the video interview with MSD at the Fleet Europe Awards 2012, by scanning the QR-code, or by visiting www.fleeteurope. com, and go to Web TV.

With the support of

FLEET EUROPE # 63

P.47

Management I International Fleet Safety Award

The Safety Pills of Almirall No-one who attended the Fleet Europe Awards ceremony in Cannes in November will forget the sheer joy of Almirall’s Espiri Carrasco when she heard her name announced as winner of the International Fleet Safety Award. Here, we take a look at the Almirall approach to this vital issue.

T

he programme benefits from the crucial support of the whole company, as witnessed by the fact that the corporate team for Safety, Health and the Environment, along with the Global Sourcing Department, have joined up to work together on the campaign: safety on the road, aimed at bringing down the number of accidents and incidents involving Almirall personnel.

Espiri Carrasco says that Almirall, an international pharma company based in Barcelona, works on what she describes as ‘zero accidents with leave of absence’ as another way to care for people’s health and wellbeing. This is an ongoing objective. To get the message over to drivers, the safety on the road campaign brings together the health and safety messages with the duty of care of drivers.

Awareness and communication Safety on the road is thus an awareness campaign aimed at the entire sales force and adapted to each country. Almirall has now direct presence in Europe, Mexico and Canada through 13 affiliates while its medicines are currently in over 70 countries around the world. Therefore, Almirall has designed an extensive communication plan for the campaign, which includes presentations at the cycle meetings with specific details such as accidents or incidents incurred by the sales force in the specific country in question. Examples of the consequences of high

accident and incident rates include high insurance and maintenance costs (United Kingdom), extensive time off work (Mexico). These consequences can affect Almirall’s business as well as the health of its employees. The campaign is visual as well as in print, with videos and not forgetting the occasional touch of humour.

Safety pills One of the most innovative aspects of the Almirall safety campaign is the use of what it calls ‘safety pills’. These are of course ‘virtual pills’ in the form of e-mails, but they remind company car drivers of some of the potentially dangerous factors which can affect safety on the road: the wearing of safety belts, the use of mobile phones, GPS, excessive speed, alcohol, medicines (real ones!), distance from the car in front, driving on roundabouts. These ‘pills’ are sent out on a regular basis, and the message is reinforced within the company newsletter.

Implementation & Control By the middle of 2013 the safety campaign will have been extended from the original 3 countries, (Spain, the UK and Mexico), to another 7 territories: (Italy, France, Germany, Switzerland, Austria, Nordic countries and Poland).

The campaign has been very much welcomed by the sales force, and for those employees who have already been at a campaign launch, they were surprised and impacted by the acci-

Espiri Carrasco of Almirall : “By the middle of 2013 our safety campaign will have been extended from the original 3 countries - Spain, the UK and Mexico - to another 7 territories.’’

Company name: Sector of activity: Fleet manager: Job title:

Almirall Pharmaceuticals Espiri Carrasco Global Sourcing Category Manager, Sales, Marketing and Corporate Services Countries covered:12 Total cars: 1,200

dent and incident figures. The management in each country is committed to and supports the campaign, acting as ambassadors of this project. There have been monthly reports established in these areas of health, safety and environment and there are also reporting tools for controlling accident rates. ■ Tim Harrup

Words from the winner

Watch the video interview with Espiri Carrasco by scanning the QR-code, or by visiting www.fleeteurope.com, and go to WEB TV, Forum & Awards 2012.

With the support of

FLEET EUROPE # 63

P.49

Management I Purchasing & Procurement

6 Tips for your fleet procurement strategy The economic mood across Europe remains gloomy. Governments are cutting on spending; consumption is undermined by a general lack of trust in future prospect.

N

evertheless In difficult time, one should always remember that between and 40% and 60% of sectors keep growing and that people are more willing to take daring decision as they feel the burning platform under their feet. So uncertainty means both risks and opportunities.

Purchasing is more than a cost reduction brigade

Stakeholder’s needs change.

Stay connected

Stay alert

Purchasing is more than a cost reduction brigade The temptation is high to position purchasing solely as a cost reduction arm. This might help with gaining further credibility in tough time. But at the same time, you need to show that it is the right time too to size new opportunities while keeping an eye on the total cost.

Stakeholder’s needs change. Stay connected Make sure you revisit your stakeholder needs on a regular basis. In times of uncertainty, market conditions, volumes and needs can change fast. You need to be in the loop so you can advise stakeholders on opportunities or on the implication of their decisions. More importantly, listen to the pain points of your stakeholders… if you find something that will help remove them… you will gain true credibility.

Supply Markets: Look beyond the obvious!

During difficult time people are often ready to embrace new ideas. So, when looking at your supply markets, look into the potential new entrants, substitution opportunities and emerging business models. This might be the right time to lead a coalition ready to take daring steps Things change fast: Understand the dynamics along the full value chain Too often we focus all our attention on our main suppli-

P.50

FLEET EUROPE # 63

Anticipate

Supply Markets: look beyond the obvious!

Develop scenarios for the next three years

Understand the dynamics along the full value chain

Change: It is your time to take the lead...

Transform

ers. If you look beyond the obvious and try to understand how their customers behave, how their markets evolve, how reliable their key suppliers are, you could find useful hints that will help you to stir future exchange or negotiations.

Action planning? No! Develop scenarios for the next three years Never satisfy yourself with a unique, straightforward action plan for the next 12 month. Look ahead and build scenarios for the next 3 years. This will help you to seize more opportunities, to remain agile if something goes wrong. It is also usually well appreciated by your business partners if you come up with options… and engage them in the decision making process.

Change: It is your time to take the lead Uncertainty calls for change…. So be ready to lead some transformation. Make sure you understand well your stakeholders. Intensify communication. Insist on the result expected, on the rationale for change and on what it means for people. Make sure that issues are not buried under the table… It is the right time to show leadership. ■

Hervé Legenvre, PhD Executive MBA Director, EIPM Nicolas Posson, Senior Buyer Fleet BNP Paribas Fortis Executive MBA student at EIPM

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

Organised by

International Fleet Managers Institute

29

Get a clear insight in the do’s and don’ts for a successful fleet management With a focus on: > Do’s and don’ts in setting up a harmonized car policy > Do’s and don’ts in analyzing and monitoring the TCO > Do’s and don’ts in launching a tender > Do’s and don’ts in setting up and executing an RFI and RFQ > Do’s and don’ts in using taxation as a fleet management enabler > ...

With the support of

May 2013

Van der Valk Hotel

Brussels Airport

Registration Early bird*: 525 EUR 1st participant: 595 EUR 2nd participant: 550 EUR *early bird registration until 29th April 2013

www.fleeteurope.com/ifmi

Major sponsor

by

FLEET EUROPE # 63

P.51

BUSINESS I News People

1

2

ALD Automotive Netherlands has appointed Frank Alofs (1) as Operations Director. Frank Alofs is replacing Michel G. Dashorst, who recently left the company.

The Opel Supervisory Board named Dr. Karl-Thomas Neumann (2) Chairman of the Management Board of Adam Opel AG, effective March 1, 2013. In addition, GM appointed Dr. Neumann president of GM Europe and GM vice president.

Michel Van den Broeck (3), Managing Director LeasePlan Belgium, has been appointed new chairman of Renta, the

3

4

Belgian Federation of Car Leasing Companies. Erwin Ollivier (Athlon Car Lease) is vice-chairman of Renta and chairman of the of Long-term Renting department.

CarsOnTheWeb has designated Pieter Behets (4) as new Country Manager for Belgium. Behets, who was the first employee on the payroll of CarsOnTheWeb back in 2005, has to strengthen the position of CarsOnTheWeb as market leader in Belgium. Since 2008, he has been serving as Operations Manager.

Arval launches Smart Experience On March 27, Arval will launch Smart Experience, a new Last but not least, Arval drivers are challenged to take fleet management service to drivers and fleet managers part in an ecodrive competition, accessible via Facebook that is tailor-made for today’s cutting-edge communications and open to non-Arval drivers. But fleet managers too tools - tablets and smartphones - and will get a lot of care. Assuming that all for input via social media. 40 Arval fleet managers will soon have the use customers will be ‘test-driving’ the new of a tablet computer, Arval will provide concept from April. Smart Experience them with the tools to practice their will be firstly implemented in France. profession in a consistent and nearBy the end of 2013, Smart Experience continuous way. Tablet and online access should be rolled out across the rest of to a dedicated dashboard will allow fleet Europe. Smart Experience provides the managers to take decisions even faster, driver with all available information on and to anticipate developments in their their vehicle: keeping them informed fleets even more closely. An added on both the frequency of servicing and advantage: fleet managers will be able the specifics of the car lease contract; to communicate even more directly providing a smartphone application with their drivers. In the spring, Arval to all on-board documents and data will also start a LinkedIn group for fleet on fuel consumption; keeping track managers. Completing the social media of fines and driving style. This body of picture is Arval’s very own Twitter feed vehicle-related info is supplemented (#ArvalSmartXP_FR). This new Smart Philippe Bismut, CEO of Arval, is with editorial content about company Experience service will be offered for convinced that Arval Smart Expecars, road safety, car policy, etc. The free to Arval clients, so there will be no rience will give a new and interacaim is to provide Arval drivers with impact on the monthly lease rate of the tive dimension to the relationship comprehensive background to their car, client. More on www.fleeteurope.com supplier-fleet manager-driver. their contract, and driving in general.

P.52

FLEET EUROPE # 63

New Škoda Octavia becomes more than a fleet outsider For a number of years Škoda has been making serious inroads into the fleet market. The new Octavia is set to improve this performance even more. The model is some 9 centimeters longer than its predecessor with a longer wheelbase, and is slightly wider. These new dimensions provide extra room and comfort for passengers compared to the previous model. Under the bonnet a range of eight different engines is available, four diesels and four petrol versions. The all important CO2 emissions start at 89 grams with the 1.6 TDI Greenline version. Inside, a number of driving and safety options are on offer. These in particular include ‘Adaptive Cruise Assistance’: the system maintains a pre-defined speed as with traditional cruise control, but also The new Škoda Octavia can mark a new era in fleet uses radar to maintain a set distance with the car in front, business for the Czech brand. braking and accelerating as required. Fatigue detection, road-sign recognition… the technology is all available in the new Octavia. The work Škoda has put into ensuring that the new Octavia meets all fleet and driver needs has been reflected in the residual value forecasts of specialist EurotaxGlass’s. Taking two of the top 5 markets as examples (Germany and Italy), the 1.6 TDI has significantly improved its residual values’ performance compared to the previous model, and is forecast to be in either first or second position compared to all main rivals. More on www.fleeteurope.com

MyLeasePlan Launched in France LeasePlan France has launched a new web-based platform, called MyLeasePlan, that puts the driver at the center of the service approach. LeasePlan France is the third country that has implemented the communication platform, after the Netherlands and the UK. MyLeasePlan is a communication tool that can be used by drivers as well as fleet managers to ensure that every step in the process of a lease contract is managed as efficient as possible. So, if the car policy of the driver’s company allows it, LeasePlan drivers in France can now be informed about every step that is linked to the lifecycle of their lease vehicle, from the selection of the new vehicle, the date of delivery, over maintenance information, damages and fuel consumption to the end-of-contract procedure. The tool also includes a partner network of LeasePlan preferred suppliers. According to LeasePlan the roll out of MyLeasePlan to other contries will further continue.

MyLeasePlan is a dedicated environment designed for the driver allowing LeasePlan to manage people as opposed to a licence plate number.

Hyundai and ALD to strengthen white label partnership LeasePlan France has launched a new web-based platform, called MyLeasePlan, that puts the driver at the center of the service approach. LeasePlan France is the third country that has implemented the communication platform, after the Netherlands and the UK. MyLeasePlan is a communication tool that can be used by drivers as well as fleet managers to ensure that every step in the process of a lease contract is managed as efficient as possible. So, if the car policy of the driver’s company allows it, LeasePlan drivers in France

can now be informed about every step that is linked to the lifecycle of their lease vehicle, from the selection of the new vehicle, the date of delivery, over maintenance information, damages and fuel consumption to the end-of-contract procedure. The tool also includes a partner network of LeasePlan preferred suppliers. According to LeasePlan the roll out of MyLeasePlan to other contries will further continue.

FLEET EUROPE # 63

P.53

BUSINESS I Athlon Car Lease

Let’s go electric with Tesla Model S Ugly. Expensive. Uncomfortable. User-unfriendly. The electric car has been called many unflattering names. But Tesla Motors is changing all that: its e-cars are trendy and cool. And now Athlon Car Lease is teaming up with the Silicon Valley-based manufacturer to offer the new Tesla Model S to its European customers.

T

he Tesla Model S is so new that it will only start rolling off the assembly line this March for the European market, and will hit the streets end of Spring. Athlon has reserved 150 of Tesla’s sporty limousines, and almost all of those have already been spoken for. “Back in 2010, I approached Elon Musk, the CEO of Tesla Motors, to explain how electric cars fit with our concept of sustainable and efficient mobility”, says Kenan Aksular, Program Manager CSR & Mobility at Athlon Car Lease. “Ultimately, the goal was to integrate the Model S in our lease offer. But at that time, that model’s launch was still so far off that we opted to offer leases on the Tesla Roadster instead. Meanwhile, we continued working on a ‘Tesla Lease Powered by Athlon’ for the Model S. We officially announced and launched that concept at last year’s Geneva Motor Show. From March last year, we were able show off some US production models to our top 200 customers in Western Europe. As a result, we’ve signed a significant number of orders.” €72,000 So, how expensive will the Model S be? In December 2012, the target price for Tesla’s newest e-car was set at €72,000 in Western Europe. A tidy sum, but still, a lot cheaper than its predecessor, the Roadster. And more to the point: at that price, the Tesla Model S is competitive with the BMW 5 Series, the Audi A6 and A7, and the Mercedes-Benz E-Class.

“We’re well prepared for price comparisons”, confirms Kenan Aksular. “Which is not all that obvious, as everything about the Model S is brand new. Unlike most car manufacturers, Tesla builds its cars from scratch, and while that is exciting, it also makes pricing a bit challenging. How to calculate the resale value, maintenance costs, etc.?” Conversations between Tesla and Athlon on this subject have been ongoing for over a year. “We’re jointly negotiating the lease proposition, and having creative solutions to remarket or release the vehicle. After their first lease, we’ll offer the Teslas for a second, full re-lease. After a mere 120,000 km at 48 months, a car - and especially an electric one - still

P.54

FLEET EUROPE # 63

The Tesla Model S seats 7, according to the manufacturer. Athlon Car Lease believes e-mobility is the future, and is proud of its partnership with Tesla.

has enough spark for a second life”. That second life can be with a B2B customer, but also in a B2E (Business to Employee) arrangement or even a B2C (Business to Consumer) formula, with financing provided by Rabobank or De Lage Landen, Athlon Car Lease’s financial parent companies.

Ticking boxes Among Athlon’s target group for the Tesla Model S lease are the CEOs and board members of trend-setting companies.

But the target also includes consultants, the self-employed, and basically anyone in the business community who wants to combine sportiness with eco-friendliness, and would like to reap the financial or fiscal benefits of electric driving. At present, Athlon manages over 1,000 electric cars (out of a total fleet of 240,000 vehicles). “We believe in e-mobility as an alternative for the future, and Tesla ticks many of the boxes. Its Model S is an affordable executive electric car that can easily compete on comfort, fuel consumption and range with the best of the cars powered by ‘conventional’ fuel.” “Tesla’s Model S avoids all the usual pitfalls of electric mobility. It’s a beautiful car, and a limousine, so it’s quite spacious. It has a normal range of between 375 and

480 km, while work is being done to complete a network of fast-charging stations, which will reduce the batteries’ charging time and enhance user-friendliness. Thus, all major obstacles to electric driving have been overcome. Actually, the contract under which we’ll offer the Model S will also allow the driver to opt for another car better suited for a specific period say, the annual holiday trip.”

Apple stores As special as the Tesla brand and its Model S are, they are not alone at being exceptional. The distribution model and servicing arrangement also set them apart in the automotive world.

Distribution is done without importers or dealers. There is only a European HQ in the Netherlands, from where the cars are shipped to the Tesla

stores, or directly to the end customers. Those Tesla stores are on a par with Apple stores, both conceptually and geographically. Tesla stores too are located in urban centres instead of on ring roads or in industrial zones.

Maintenance is arranged separately, either at a distance, in a Tesla Service Center, or by a Tesla Ranger, who visits the driver to perform the service.

“We opt for the full service package”, says Kenan Aksular. “This means: the complete full service leasing package, including Ranger Service, providing us with a perfect overall picture of usage and costs”. Unfortunately, it’s still unclear what the price tag for that package will be. “We offer Europe-wide pricing, just like Tesla Motors does in retail, but there will be differences country by country, based on each country’s own fiscal landscape”.

Kenan Aksular, Athlon Car Lease

Tesla Motors Established: 2003 Headquarters: Palo Alto, Silicon Valley, California Models: Roadster, Model S, Model X Model S: offered with three battery options (40 kW - 235 hp - 310 Nm, 60 kW - 302 hp - 317 Nm, 85 kW - 362 hp or 416 - 325 or 443 Nm), rear-wheel drive As soon as more is known about those prices, you’ll read all about it on Fleet Europe. ■ Steven Schoefs

FLEET EUROPE # 63

P.55

BUSINESS I TomTom Business Solutions

Fleet management as a complement to in-car navigation Perhaps you remember that particular kind of travel stress: ahead of a trip you’d worry about finding the right way, having the correct road map. But about 10 years ago, in-car navigation systems replaced physical maps. TomTom was a pioneer in this field, and remains a leading player in a fast-growing market. But TomTom has been complimenting its navigation tools with a fleet management offer.

T

omTom consists of 4 business units. Firstly, Consumer Products, centred on TomTom’s navigational tools, which were launched in 1996. Secondly, Licensing, formerly known as TeleAtlas, which develops digital maps. Thirdly, a unit providing OEMs with tailor made navigation systems. And lastly but not leastly, Business Solutions, which was started in 2004 after the acquisition of a German telematics company. Today, 225 out of TomTom’s total 3,500 employees work for the Business Solutions unit. About 240,000 vehicles are equipped with TomTom Business Solutions applications. These are mainly in Europe, but also in South Africa and China. Plus, TomTom recently signed a partnership with LoJack in the U.S. On time, in time By combining navigation tools with data applications, TomTom Business Solutions has produced a steady stream of applications for professional use. Data reporting, work order preparation, detailed timekeeping, intelligent traffic monitoring: these are just a few of the many applications available. “We aim to register and analyse as much data on the driver and the vehicle as possible, and then to relay all this data to the customer’s back office”, says Jeroen Groenendijk, Sales Director Benelux & Nordics. The link between a TomTom black box, athe navigation system and an online application provides a continuous communication between the vehicle and both the driver and the company.

“The data we provide, relates to driving style, fuel consumption, but also vehicle location and time use. This allows the company to monitor elements like speeding, CO2 emissions, and wear and tear of tires; it also helps determine whether a driver will meet the day’s planned schedule. Plus, TomTom’s traffic and congestion news help the driver to choose a faster route, saving precious time”.

Motivation TomTom Business Solutions helps its customers to compile management reports, through real-time reporting to both the companies and their drivers. Follow-up is provid-

ed by WEBFLEET Reporting, a user-friendly web interface for corporate clients. The interface allows a fleet manager to rank certain parameters in order of importance to the company. This permits a clear communication towards the drivers in function of those parameters - and an immediate overview of the degree to which the drivers are respecting them. Apart from instant data reporting like this, customers can also expect to roll out data on a specific period in time, making certain trends visible. “We don’t just focus on the negative. We also highlight positive elements, because that’s more motivating. To get results, you need to involve the drivers actively in the new policy, and even allow them a share of the cost savings”. ■

New app to simplify business registration mileage

TomTom Business Solutions has just launched WEBFLEET Logbook, an app for iPhone and Android that helps drivers and businesses reduce mileage claim administration and creates reliable logs to help with tax compliance. The driver selects whether a journey is for business, personal or commuting purposes, and validates journey information on his mobile device. This app works in combination with the in-vehicle TomTom LINK tracking device, which records trip data. Company trip records are simultaneously updated in TomTom’s WEBFLEET management system.

Steven Schoefs

P.56

FLEET EUROPE # 63

SCOPE I News On the road to Hydrogen growth in UK

The UK wants to push lowemission vehicles like fuel cell cars. In London, mayor Boris Johnson has even announced to examine the creation of an ultra low emission zone in the city center, allowing only zero or low emission cars during working hours.

Over one and a half million hydrogen powered vehicles could be on UK roads by 2030 according to a joint UK Government-industry study published this week.

Produced by the UKH2Mobility project the study provides a ‘roadmap’ for the introduction of vehicles and hydrogen refueling infrastructure in the UK. The key findings of the report are: •U p to 10% of new car customers will be receptive to fuel cell vehicles when first introduced • I nitial uptake of FCEVs will progress as models make their way on to the market and the fuelling network matures.

•A coordinated network of hydrogen refueling stations will need to be established, focusing at first on national trunk routes and heavily populated areas.

•T he roadmap shows that FCEVs could reduce UK annual total vehicle CO2 emissions by 3 million tonnes in 2030.

•A basic initial network of Hydrogen Refueling Stations is required to encourage early adoption: Phase 1 of the project estimated the total finance needed to be around £400m to 2030.

E-scooters and e-bikes with Athlon Athlon Car Lease is starting the full service leasing of electric bikes and scooters in the Netherlands. This full service leasing structure includes insurance and maintenance. According to Athlon, the Dutch market is asking for new and CO2-friendly alternatives to the traditional company car. Armand van Veen, Managing Director Athlon Car Lease in the Netherlands: “E-bikes and e-scooters fit into our line of EV solutions. Solutions that enable customers to save costs, the environment is relieved and parking problems can be solved.”

New UK tax rules encourage smaller cars The new tax thresholds to come into force in April in the UK in terms of CO2 emissions are likely to have the effect of persuading company car drivers to opt for lower emitting models. Currently, companies can set part of the purchase price of a car against tax. The main benefit comes when the car’s CO2 emissions are lower than 160 grams per km. However, the authorities have announced that this limit is being decreased to 130 grams. Maximum benefits are currently for cars emitting less than 110 grams, but this too is to fall, to 95 grams.

Daimler, Ford and Nissan in Fuel Cell initiative Daimler AG, Ford Motor Company and Nissan Motor Co, Ltd., have signed a unique three-way agreement for the joint development of common fuel cell system to speed up availability of zero-emission technology and significantly reduce investment costs. Each company will invest equally towards the project with the aim of launching the first affordable, mass-market FCEVs as early as 2017.

Start of Airplus Car Rental solution Airplus, the payment solution provider, has launched a corporate Car Rental Solution which is accepted by leading car rental companies around the world. The card enables car rental expenses to be handled via a centrally billed lodge account providing corporates with greater visibility of their car hire spend. A traveller can make a booking via the Airplus Company Account directly with any booking channel, including directly with the car rental company or using a self booking tool. Airplus cites some of the key benefits of the solution as the creation of a single invoice that can be used for claiming VAT, automated processes reducing costs and increased visibility of spend.

Airplus gets connected to the Car Rental business.

FLEET EUROPE # 63

P.57

30th May 2013

Van der Valk, Brussels

Timing: 09:00 17:00: Conference & Breakout sessions 19:00: Cocktail Reception 20:00: Awards Ceremony 21:00 23 :30: Gala Dinner

Forum Integrated Mobility Management: Time to go Mobile

Awards One buyer and one supplier award

Audience: Mobility, fleet, travel, purchasing, HR, facility managers, suppliers and partners.

Further information, programme and registrations at www.smart-mobilitymanagement.com/sme For further information and details about Smart Mobility Awards’ applications, please contact Jonathan Green: jgreen@nexuscommunication.be

Scope I Mobility Infrastructure

Electric cars & charging terminals across the globe From the United States of America to Germany and China, the whole world is searching for new and efficient solutions in developing electric vehicles and in building up the right infrastructure of charging stations and other necessary services. That doesn’t seem to be an easy exercise if we look at the different initiatives around our globe.

The United States of America The US have created an “Innovation Hub” which brings together scientists, engineers and industry representatives to manufacture less expensive, more powerful batteries. With President Obama’s government having bailed out General Motors, the development of the Chevrolet Volt enjoyed a major boost. And the objective of one million electric vehicles as from 2015 is currently not up for discussion. The USA have first launched the EV Project, a sort of “cluster” on a country-wide scale, before then launching onto the larger world network for recharging electric vehicles.

China China has announced a plan that will enable it to reach a total of 5 million electric and hybrid vehicles between now and 2020. But there are only a dozen or so different models available, and

just 16,000 charging terminals were installed in 2011. The city of Chongping has only 1,450 sockets for 30 million inhabitants! At this point, the objective of 400,000 charging stations by 2015 looks a difficult one to achieve, as just 5,600 electric cars were sold in 2011.

Japan Japan was the first country to offer tax incentives for those looking to buy clean vehicles. And their share of “low-carbon” cars is already greater than any other country worldwide, with objectives ranging from 20 to 50% of the fleet by 2020 (of which 30% hybrid engines) and up to 70% by 2030.

Although it must be said that the economic slump and the Fukushima disaster have somewhat slowed progress in this respect. The Japanese plan does, however, forecast 2 million terminals in 2020.

There are many country-based initiatives regarding the ‘electric’ infrastructure but what approach will convince the end-user? The answer seems to be blowing in the wind. Here the Autolib’ initiative in Paris.

Israel Launched by the Israeli businessman Shaï Agassi, the Better Place standard battery swap system has not yet managed to enjoy the success envisaged, mainly because batteries have not yet been standardised, making for connection problems when swapping. Israel now numbers a total of 21 swap stations and 2,000 charging stations, and other stations continue to be opened throughout Europe, like in Schiphol Airport (the Netherlands).

FLEET EUROPE # 63

P.59

And in Europe?

Germany Germany has set itself the aim of being “the number 1 country of the electric car”. But the objective figure (one million electric cars in 2020) may yet be reduced. The federal government has made the decision to continue tax incentives (no tax) until 2014 and to promote the electric car in eight pilot regions. Plenty of new models are also expected, to be launched by the German manufacturers over the next two years: fifteen, in fact.

With BMW entering the market in 2013. Finally, the country has cleared 4.4 billion euros to aid manufacturer research into batteries, electric motors and the charging infrastructure.

England England exploited the London Olympics as a chance to make itself Europe’s capital city of reference; the terminals installed enable the electric cars of the official Olympics fleet to be recharged. But the crisis has reared its ugly head here too and objectives have been reduced, forecasting just 1,300 charging stations over the next year, in lieu of the 7,500 initially envisaged.

Scandinavia The Nordic states are well ahead in the production of non-fossil electricity, as indeed it also is in the development of electric cars.

In Norway, a city like Oslo already offers 3,500 charging stations and measures such as exonerating electric vehicles from city tolls, allowing them to park free of charge and the right to travel along bus routes. All this in addition to the complete exoneration from VAT. Denmark and Sweden have also developed incentive policies; Copenhagen, which is striving to become the world’s “zero emissions” capital has welcomed the Better Place battery swap system.

France On October 12 2012, the European Investment Bank (EIB) and Vincent Bolloré, CEO of the Bolloré Group, signed a loan contract for 75 million euros for the development and use of an open shared use service of electric vehicles in Île de France. As part of its Autolib’ project, the Bolloré Group has released 1,750 electric vehicles for use, spread out over 710 stations: As of today, 38,800 subscriptions have been sold, of which more than 13,600 are premium annual subscriptions. October also saw the Bolloré Group launch the Bluecar hire for private customers and electric mobility offers coupled with photovoltaic electricity storage solutions. ■

P.60

FLEET EUROPE # 63

Electric France in figures • 36 º Bolloré accounts for 36% of all electric vehicles registered in France in the first eight months of 2012, thanks to the Autolib’ system (electric vehicles for hire in Paris).

• 4000 º This is the new maximum ecological bonus in euros granted for hybrid vehicles in France (and a maximum of €5,000 for rechargeable hybrids).

• 7000 º This is the new maximum ecological bonus in euros granted for electric vehicles in France (up to 30% of the purchase price).

• 60 000 º The number of electric vehicles that should have been registered in France in 2012 according to the forecasts established following the presentation of the electric vehicle development plan

by Jean-Louis Borloo in April 2010. The reality is probably close to 5,000.

Germany has set itself the aim of being the number 1 country of the electric car, but the objective figure of 1 million electric cars in 2020 may be reduced

Philippe Martin

www.volkswagenleasing.de/internationalfleet

International Fleet

As a European Market leader with many years of experience in implementing fleet solutions, we are a reliable partner and assist our clients with a diverse range of high quality products and services.

Further information about fleet solutions in Europe can be found at www.volkswagenleasing.de/internationalfleet

Toyota Auris Range.

Choose the way you drive your business forward.

• Available in two body types • Hybrid, diesel, petrol engines