Fleet Europe °098

FOR INTERNATIONAL FLEET & MOBILITY LEADERS

#98 06/2018

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DA UT OM

OT IV

26 PAGES

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ALP

HA

FLEET MANAGEMENT AND LEASING 2018

BET

ARI

• International scope

ARVA

L

• Strategy highlights ATHLON

Nexus Communication - Fleet Europe #98 - Periodic magazine - June 2018 - Deposit Office Liège X

• Future business model

BUSINESS LEASE

BUSINESS Interview Mike Masterson, CEO ALD Automotive

FLEET LOGISTICS

LEASYS

N EPLA

LEAS

ES

MANAGEMENT The impact of WLTP

K

BAN RCI

IC ERV &S

G

T SIX

EN AG ES W IC S LK RV VO L SE IA NC

A

FIN

SIN LEA

Low Emission Zones, Low Overlap p. 52

UE

A ISS EXTR

IAL G C E P S ETIN K R A REM es g

48 pa

CONTENT 5-35

TALE OF THREE TRENDS The outsourcing principle is since more than 20 years embedded in our fleet industry with full service leasing as the dominant funding method for multinational fleets. Still today full service leasing has growth capacity as illustrated in our Dossier.

seat.com/tgi_fleet

The eco way to go longer for less.

TGI by SEAT range.

Leon 5D & ST Ibiza FR.

Natural gas and petrol.

TGI by SEAT brings together two fuels to reduce your environmental impact and your costs – saving you up to 50%* on fuel in gas mode.

SEAT FOR BUSINESS. ∙ Fewer CO2 emissions. ∙ Reduced total cost of ownership. ∙ Free access to low emission zones.

The future of leasing will be impacted by three trends: One, the ever closer relationship between suppliers and end users is converging B2B, B2E and B2C markets, with adapted solutions illustrated by the increasing success of private leasing. Two, flexible and shorter term service offerings will gain attractiveness as the awareness around Mobility as a Service is growing. And these offerings ask for easy and on-demand access and a pay-as-you-use, as confirmed by Konstantin Sixt at the recent Global Fleet Conference. Three, used car leasing will become an accepted solution as illustrated by LeasePlan’s initiative CarNext.com. Used car leasing helps balancing the fleet inventory and supports the healthiness of the used car market, hence residual value setting in a fleet environment that moves within a challenging powertrain context from diesel to petrol, and electric.

These trends will also be at the centre of the programme of 2018 the Fleet Europe Summit, on 27 and 28 November in Barcelona.

You want to be prepared for the future of fleet and mobility management.

Go register at forum.fleeteurope.com.

Steven SCHOEFS Chief Editor, Fleet Europe

DOSSIER Fleet Management and Leasing 2018

No matter who and where you are we move you................................................................. 6 Internationalisation & innovation............ 7 The international scope..................................... 12 Flexibility in the business........................... 20 Sole supply, bundled services and transparency........................................................... 24

Consequences of new regulations............. 26 Leasing companies travelling to mobility................................................................... 29 New Kia Ceed - Exceeding expectations!.............................................................32 A lease to fit the disruption.........................33 Sharing and swapping is in our DNA.........................................................................35

44

58

BUSINESS

ANALYSIS

Mike Masterson, Chief Executive Officer ALD Automotive

Short Term Rental in evolution

64 GLOBAL FLEET CONFERENCE 2018 IN PICTURES

MANAGEMENT

Go low-CO2 and beat WLTP……………………………………………………………………………………………………………………………………… 36

Awards 2018: celebrating supplier innovation…………………………………………………………………………………… 38 Fleet Europe Awards – the President’s view………………………………………………………………………………………… 40 Air Liquide: becoming gradually and ‘naturally’ greener…………………………………………………… 42

INNOVATION

Driving future mobility on 5G………………………………………………………………………………………………………………………………… 47 Pay-per-Use Insurance…………………………………………………………………………………………………………………………………………………… 50

27 SEPTEMBER

IFMI DIGITAL MASTERCLASS Electrification

SMART MOBILITY MANAGEMENT

Low Emission Zones, Low Overlap…………………………………………………………………………………………………………………… 52 Getting ride-hailing on the right track……………………………………………………………………………………………………… 54 The planet of the apps………………………………………………………………………………………………………………………………………………………… 56

* Percentage obtained by comparing a SEAT model with TGI engine while driving in CNG mode to the same SEAT model with a petrol or diesel engine, using official and homologated data of CO2 emissions and average fuel consumption.

SEAT Leon TGI 5D & ST: average fuel consumption 5.7 l/100 km, average CO2 mass emissions 130 g/km. SEAT Ibiza TGI: average fuel consumption 4.9 l/100 km, average CO2 mass emissions 88 g/km.

27 - 28 NOVEMBER

2018 FLEET EUROPE SUMMIT Barcelona

ANALYSIS

Convenience at the core of car rental……………………………………………………………………………………………………………… 60

DOSSIER

WHAT IS IT ABOUT THE NEW OCTAVIA?

BETWEEN TRANSPARENCY, COVERAGE AND FLEXIBILITY

IS IT THE RELIABILITY?

STEVEN SCHOEFS

A transformation is going on in the leasing and fleet management sector. A transformation that complies with changing consumer and society behaviour. Car leasing companies are moving from the classic car lease model towards mobility solutions on a local, a global and a pan-European level. Today’s fleet management and leasing companies see mobility and private lease as strategic pillars for growth, not forgetting the international fleet customer who asks for more contract transparency, a better coverage, increased flexibility in offerings and strategic powertrain guidance based on facts and analyses.

IS IT THE TCO? IS IT THE SAFETY?

Those car lease providers that adapt will get the oxygen that is needed to stay successful in an ever more competitive business environment with Car as a Service and Mobility as a Service as the ultimate goals.

Low total cost of ownership is necessary for your company. But when it comes combined with reliability and safety, it becomes an incredible asset to your car fleet. So it isn’t that nobody knows exactly what it is about the New OCTAVIA. It is that when it comes to benefits, it’s almost impossible to pick just one.

www.skoda-auto.com

Combined fuel consumption and CO 2 emissions according to the legislation of the concerned country y

FLEET EUROPE #96

5

ADVERTORIAL

DOSSIER

CONCEDED EDITORIAL SPACE

No matter who and where you are - we move you MOBILITY MADE BY SIXT

SIXT is probably the only company in the world that can move you from 1 minute to several years. All our products and services are in-house. Made in Germany, moving the world.

USING THE CAR AS YOUR WORKSPACE You need your car in order to get your job done. Sixt Leasing offers you any brand with the highest level of customer-oriented service. Our drivers rated us with a 92% Loyalty Rate and a 91% Recommendation Rate.

GOING ON BUSINESS TRAVELS, IN TIME, IN BUDGET AND IN STYLE… … is the motto of Sixt rent-a-car and Sixt myDriver. Sixt offers you approximately 2.200 stations worldwide with excellent value for money. Users save time and costs through Sixt’s innovative mobility concepts, reporting and invoicing. With Sixt myDriver we managed to deliver the last mile to you. Prices are comparable to taxi cost; however you pay electronically upfront and as such the rate is fixed also when you are stuck in rush hour traffic jams.

FOR ALL FREQUENT TRAVELERS we offer you Sixt unlimited. One single rate for the entire mobility via car. User will receive an unlimited number of rentals per month. No extra costs for airport parking or opportunity costs when taking a new rental at a destination while your company car is parked at the airport.

Seasonal tires, road tax, eco fee and further services included.

6

Growth pushed by internationalisation and innovation Benjamin Uyttebroeck @uytteb

1 Minute

1 Day

6 Months

6 Years

1 Year

INCENTIVIZE YOUR (GENERATION Y)

RE-FOCUS ON YOUR COMPANY’S

EMPLOYEES

CORE COMPETENCE

with our Sixt Mobility as a Service (MaaS) product. It is a flexible mobility budget that bundles the usage and billing of multiple Sixt mobility products – worldwide.

You can use it

while letting Sixt Mobility Consulting taking care of your fleet issues. Whether complete outsourcing or individual services: We know that the greatest benefit for our customers is not created from standard concepts, but of customized solutions. You will benefit from the extensive experience of the Sixt Group in purchasing and sales, claims management and in the control and management of complex large fleets. As Sixt Mobility Consulting can realize cost optimization across all brands for you.

• as company car alternative: MaaS is ideal for company car owners who voluntarily exchange their vehicle for a broader mobility product.

• as incentive: smart solution for the successful recruiting of top talents, motivation of the staff and for a better employer branding.

• as leasing add-on: if a user opts for a smaller category leased vehicle, the savings could be credited to the employee.

• as e-mobility extension: budget can be used as a range extender of electric vehicles.

MOVE YOUR VIPS with our Sixt Limousine Service. Services: airport service, event service, executive service, shuttle concepts, roadshow service.

How do fleet suppliers face the challenges of the future? Each leasing and fleet management company has its own strategy and outlook on the future. We asked the main international companies the same three questions.

1 2

3

What are your principal strategic objectives for 2018?

How do you see the attractiveness of car fleet management and leasing evolve in 2018?

How will the international full-service leasing and fleet management business grow in 2018?

1

1

2

2

ALD plans to continue adapting its traditional full-service leasing offer to include new mobility capabilities which include digital platforms, connected cars, mobility as a service, e-mobility alternatives and multi-modality.

Long-term social trends are moving drivers away from ownership of vehicles towards usage. ALD is expecting to see its private lease fleet grow, in particular through targeted partnerships.

3 MORE INFO

ALD believes that the mobility leasing sector will grow both in the corporate and retail markets sustained by key trends such as strong outsourcing trends, fast growth in new markets and a shift from financing to leasing for personal cars.

about.sixt.com

FLEET EUROPE #98

FLEET EUROPE #98

Alphabet aims to offer tailor-made rather than one-sizefits-all solutions. Alphabet will also focus on its existing innovations: AlphaElectric and AlphaCity, the car-centric options and AlphaFlex, the mobility budget that gives full cost control.

Leasing companies are becoming mobility providers; fleet managers are becoming mobility managers. More and more new and established players are entering the landscape, including tech giants and new start-ups. More omni-channel solutions will be offered and the distinction between private and business usage is blurring.

3

In 2017, Alphabet grew 0.5% more than the overall market growth of 5%. For 2018, they expect to see stable business in key markets with slight growth.

7

DOSSIER

1

ARI aims to continue offering its Open End Finance leasing solutions where remarketing proceeds directly benefit the lessee. The company will also continue investing in reporting and analytics capabilities and Big Data applications to foster predictive analytics and provide actionable insight.

2

ARI expects the fleet management business to remain very attractive but the company sees an unfulfilled need for flexible and transparent solutions, which is why ARI provides flexible products. ARI to Cible: fully flexible products and no damages are charged at the end of contract.

3

With the introduction of IFRS16 which will see all leases added to a company’s balance sheet, ARI expects customers to re-evaluate their funding decisions. They see a trend away from Closed End Full-Service Leasing towards more transparent, Open End Finance Lease with unbundled services.

DOSSIER

1

Arval wants to further develop the strong corporate segment and the growth segments such as SMEs and private lease. The company also focuses on the energy transition and the introduction of WLTP, both requiring substantial efforts in guiding customers to rework their strategy and their car policies. A third objective is the development of digital offers such as Arval For Me, Arval Car Sharing and Arval Active Link (telematics).

2

In their yearly CVO Barometer, Arval notes that all indicators are green for customers and prospects, large fleets in particular. Contrary to what may be expected, large fleets show even more optimism for further growth than SMEs in some of the most mature countries.

3

Conventional leasing and fleet management formulas will continue growing, especially for global fleets. Mobility as a service remains a niche offering, taking off mainly in countries with heavy congestion, a good public transportation network and companies that are CSR minded.

1

1

2

2

3

3

Fleet Logistics is expanding its services, offering solutions for large fleets but also for local fleets with 50 vehicles or more. They are also fine-tuning the one-stop shopping concept and extending the portfolio to include new services in the fields of shared mobility and intermodal transport.

Fleet Logistics sees a move away from a pure fleet management approach to one of mobility management in the next 10-15 years. The conventional leasing approach will be challenged by the introduction of IFRS16 and by the transition towards EV cars.

It remains to be seen how upcoming changes such as the introduction of GDPR, WLTP and IFRS16 or new powertrains will affect the industry. The answer might differ from country to country. In general, Fleet Logistics sees increasing complexity which will lead to increasing customer demand for fleet management services and therefore to a growing market.

LeasePlan wants to lead the way in the trend from ownership to usership and subscription, both for new and used cars. LeasePlan is also working on transforming the company from an analogue business to a fully digitally-enabled business and to support the transition to alternative powertrains.

LeasePlan believes fleet management and leasing will continue to evolve as the subscription economy gains further traction. The industry will also remain focused on the transition to alternative powertrains.

LeasePlan expects solid growth in the sector as companies are moving from insourcing to outsourcing and require expert third parties to enable this.

1

1

1

1

2

2

2

2

3

3

Athlon is working on further growth across the globe, working with strategic partners and through other subsidiaries of Athlon’s parent company. Athlon is also continuing development of new mobility services and products.

Fleet management will become more important as mobility solutions grow. There is also an increasing need for vans. Fleet management at Athlon will evolve into offering a holistic mobility offering, not necessarily only based on a lease car.

3

Less mature markets will grow faster than mature ones but all markets will develop in a positive way. The company also sees growth of companies with mid-sized fleets that organise their lease agreements internationally.

8

Business Lease is working on the transition to a full mobility service provider, in the Netherlands and beyond. The company also wants to strengthen its private lease activities and scale up its business for full operational lease, fleet management and full mobility solutions in Europe.

Business Lease sees a growing but diversified demand for mobility, requiring tailor-made solutions for its customers with a focus on connectivity, smart mobility and alternative powertrains. Demand for fleet management and operational lease will remain high and medium and smaller fleets will increasingly aim for internationalisation.

3

Business Lease is convinced growth will continue for full service leasing and for fleet management. In part, this is attributable to the strong economic development in Europe but there is also a growing trend towards internationalisation.

FLEET EUROPE #98

Leasys’ target is to consolidate the foreign markets where it has already opened and to become the fifth operator at the European level by 2020. Leasys also wants to grow Clickar internationally, the first operator in Italy for sale of used rental/ leasing cars and a brand owned by Leasys.

Private leasing is increasingly becoming a reality in most of Europe, even those countries where car ownership remains very strong. Leasys wants to invest in allowing customers to move easily and to make use of on-demand services.

Leasys believes growth in 2018 will be in line with growth in 2017. The company’s data for the first quarter of 2018 proves this point. In large part, growth is in private lease today.

FLEET EUROPE #98

RCI Bank & Services wants to open new markets to reach a full RCI fleet leasing offering, including a complete set of digital tools. In 2018, efforts will be focused on Latin America, Brazil, Argentina and Colombia in particular.

RCI says that we witness the shift towards TCM (from TCO) gaining ground as a requirement of fleet clients. A new key that the company has seen emerge in 2017 is connected fleet management.

RCI sees room for more growth. It is itself launching new operations in eight new markets (3 in Latin America, 5 in Europe), which will support growth in fleet leasing. RCI expects a continuous +5% growth in fleet leasing.

9

DOSSIER

1

At the start of 2018, Sixt initiated the DRIVE>2021 strategy programme. DRIVE stands for Digitisation, Risk management, Internationalisation and Volume and Earnings growth.

Its aim is to increase the pace of digitisation, to actively improve the risk-return profile, to further promote internationalisation and significantly increase the contract portfolio and earnings by the year 2021.

2

Fleet management departments are faced with the challenge of coping with greater complexity without increasing costs. More and more companies are outsourcing their fleet to an external specialist and Sixt expects there is still room to grow for this market. Leasing companies will have to actively advise companies.

3

Sixt Leasing expects fleet management providers to continue registering solid demand. More and more companies are looking for cost and planning safety in their vehicle fleet management and are therefore counting on the specialised expertise of service providers such as Sixt Leasing and Sixt Mobility Consulting.

1

Volkswagen Financial Services is further developing and strengthening the product portfolio in all markets across Europe but also globally. VWFS is also looking at harmonising and introducing new services to satisfy their customers’ requirements.

2

According to VWFS, car fleet management and travel management will increasingly converge. The TCO perspective is increasingly shifting towards TCM. Nevertheless, the classic car leasing business will remain the main pillar of most fleet management solutions. VWFS expects further growth in 2018.

3

VWFS is convinced the fleet market in general will continue to grow in 2018 and 2019. Growth will probably remain in 2019, with slight ups and downs. For their own business, VWFS is expecting significant growth, especially in markets outside of Germany.

FLEET MANAGEMENT SOFTWARE

1

TraXall will continue its expansion in Europe and South America. The company will invest in IT development to bring further enhancements and efficiencies to TraXall’s fleet management support services, mobility and consulting solutions for the corporate marketplace.

2

TraxAll believes fleet management will evolve because of growing mobility trends and will remain an important component of overall transport/mobility solutions. New pillars will include an increasing number of mobility options which need to be brought together in smarter management systems. This comes with challenges as solutions that are bundled often lead to pricing inefficiency.

3

TraXall believes there will be sustainable growth, particularly within fleets looking to centralise and consolidate. They also expect to see growth in personal leasing options across several markets, resulting in gradual erosion of perk/status vehicles as this becomes more accepted.

10

1

Chevin Fleet Solutions sees a big increase in demand for mobility solutions such as pool car planners, rental booking functions and journey planning tools. Increasingly, the onevehicle-one-user model is no longer the best scenario, which is why Chevin is working on enhancing features such as electronic key box systems for pool car systems.

WE OFFER CUSTOMISED MOBILITY SOLUTIONS WE P ROV I D E A FULL RANGE OF DIVERSIFIED MOBILIT Y SOLUTIONS TO MEET YOUR EVOLVING NEEDS.

2

Chevin believes the leasing market will grow significantly over the coming months while the popularity of vehicle ownership will continue to decline. It’s likely that mobility will become the priority over asset ownership.

ALDAUTOMOTIVE.COM

3

The focus on performance data will become much more important. Data analysis is already key when it comes to measuring operating costs, fuel and maintenance performance, however the emphasis on this is likely to increase to empower procurement decisions.

FLEET EUROPE #98

FLEET EUROPE #98

11

DOSSIER

DOSSIER

THE INTERNATIONAL SCOPE 2018

ALD AUTOMOTIVE

ALPHABET

ARI

ARVAL

ATHLON

BUSINESS LEASE

FLEET LOGISTICS

LEASEPLAN

LEASYS

RCI BANK & SERVICES

ALBANIA

AUSTRIA

BELARUS

BELGIUM

BOSNIA HERZEGOVINA

BULGARIA

CROATIA

CYPRUS

CZECH REPUBLIC

DENMARK

ESTONIA

FINLAND

FRANCE

GERMANY

GREECE

HUNGARY

IRELAND

ITALY

LATVIA

LITHUANIA

LUXEMBURG

FLEET 2017 GRAND TOTAL

/

7329

/

70494

/

4200

5040

/

20584

21242

1528

22041

494743

154785

3819

16642

6564

177207

1610

2182

12629

GROWTH 2016-2017

/

15,2

/

8,6

/

2,9

16,9

/

16,0

5,6

-1,9

-2,0

7,7

5,7

10,5

7,0

310,3

21,8

3,5

18,0

7,8

SUBSIDIARY OR PARTNER

/

S

/

S

/

S

S

/

S

S

S

S

S

S

S

S

S

S

S

S

S

FLEET 2017 GRAND TOTAL

/

x

/

x

/

/

/

/

x

x

/

/

x

x

/

x

/

x

/

/

x

GROWTH 2016-2017

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

S

/

/

S

S

/

Unicredit Leasing/Business Lease (N)

/

S

/

/

S

43506

/

/

/

/

/

/

/

SUBSIDIARY OR PARTNER

/

S

/

S

/

/

/

/

Unicredit Leasing/Business Lease (N)

FLEET 2017 GRAND TOTAL

/

/

/

/

/

/

/

/

/

/

/

/

/

GROWTH 2016-2017

/

/

/

/

/

/

/

/

/

/

/

/

/

22,7

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

184677

/

/

6078

SUBSIDIARY OR PARTNER

/

/

/

/

/

/

/

/

/

/

/

/

/

ARI Fleet GmbH (S)

FLEET 2017 GRAND TOTAL

/

5184

/

58774

/

/

/

/

18390

2937

/

3539

304717

70701

1541

5131

GROWTH 2016-2017

/

9,9

/

11,8

/

/

/

/

11,9

41,3

/

42,5

5,0

4,7

39,0

7,3

/

10,2

/

/

22,2

SUBSIDIARY OR PARTNER

/

S

/

S

/

/

/

/

S

S

/

S

S

S

S

S

/

S

/

/

S

FLEET 2017 GRAND TOTAL

/

1300

/

48500

/

/

/

/

13500

/

/

/

58000

90000

/

4200

2500

21500

/

/

1900

GROWTH 2016-2017

/

9,2

/

-3,1

/

/

/

/

382,1

/

/

/

17,7

0,8

/

3938,5

-58,3

-24,3

/

/

6,7

SUBSIDIARY OR PARTNER

/

Interleasing GmbH & Co KG (N)

/

S

/

/

/

/

Business Lease (N)

/

/

/

S

S

/

Business Lease (N)

Archer Sheridan (N)

S

/

/

S

FLEET 2017 GRAND TOTAL

/

/

/

/

/

/

/

/

13500

/

/

/

/

/

/

4250

/

/

/

/

/

GROWTH 2016-2017

/

/

/

/

/

/

/

/

17,4

/

/

/

/

/

/

21,4

/

/

/

/

/

SUBSIDIARY OR PARTNER

/

/

/

/

/

/

/

/

S

/

/

/

/

/

/

S

/

/

/

/

/

FLEET 2017 GRAND TOTAL

2

3169

24

14327

14

126

144

/

863

1111

14

2846

22701

64107

998

1161

551

15143

16

24

488

GROWTH 2016-2017

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

SUBSIDIARY OR PARTNER

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

FLEET 2017 GRAND TOTAL

/

x

/

x

/

/

/

/

x

x

x

x

x

x

x

x

x

GROWTH 2016-2017

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

SUBSIDIARY OR PARTNER

/

S

/

S

/

/

/

/

S

S

/

S

S

S

S

S

S

S

/

/

S

FLEET 2017 GRAND TOTAL

/

/

/

/

/

/

/

/

/

/

/

/

36000

1000

/

/

/

120000

/

/

/

GROWTH 2016-2017

/

/

/

/

/

/

/

/

/

/

/

/

9,7

589,7

/

/

/

26,8

/

/

/

/

/

/

/

/

/

/

/

Leasys France (S)

Leasys SPA Germany Branch (S)

/

/

/

Leasys SPA (S)

/

/

/

/

/

/

663770

134675

/

5676

11699

163086

/

/

/

SUBSIDIARY OR PARTNER

/

/

/

Leasys SPA Belgium Branch (S)

FLEET 2017 GRAND TOTAL

/

8804

/

13609

/

/

8682

/

11831

GROWTH 2016-2017

/

37,5

/

131,3

/

/

/

/

5,5

/

/

/

104,3

77,8

/

235,5

113,8

145,2

/

/

/

SUBSIDIARY OR PARTNER

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

FLEET 2017 GRAND TOTAL

/

x

/

x

/

x

x

/

x

x

x

/

x

x

x

x

x

x

x

x

/

GROWTH 2016-2017

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

SUBSIDIARY OR PARTNER

/

S

/

Business Lease (N)

/

Sixt Bulgaria Headquarters Tourist Service Rent-a-Car (N)

Sixt Croatia Headquarter A-Anticus d.o.o. (N)

/

Sixt Czech Republic Headquarters SPEED LEASE a.s. (N)

Sixt Denmark Headquarters Mobility Service Danmark A/S (N)

Sixt Estonia Headquarters Transporent OÜ (N)

/

S

S

Sixt Greece Headquarters Lion Rental SA (N)

Business Lease (N)

Sixt Leasing Ireland Autolease Ldt. (N)

Leasys (N)

Sixt Latvia Headquarters Transporent SIA (N)

Sixt Lithuania Headquarters Transporent UAB (N)

/

FLEET 2017 GRAND TOTAL

162

41857

/

43196

1161

2223

11347

/

14703

/

/

/

94031

727600

/

10973

/

81320

/

/

719

-47,7

22,3

/

13,5

210,4

0,2

16,8

/

29,5

/

/

/

13,0

6,2

/

31,4

/

20,1

/

/

/

S

Porsche Lízing és Szolgáltató Kft. (N)

S

S

/

/

Autosdiffusion M.Losch (N)

SIXT LEASING

VOLKSWAGEN FINANCIAL SERVICES

GROWTH 2016-2017 SUBSIDIARY OR PARTNER

Porsche Mobility shpk (N)

Porsche Bank AG (N)

/

Volkswagen D'Ieteren Finance (JV)

Porsche Leasing doo (N)

Porsche Mobility BG, Porsche Leasing BG (N)

Porsche Leasing d.o.o.

(N)

/

ŠkoFIN s.r.o. (S)

LEGEND: TF: Total Fleet 2017 funded and non-funded • S=Subsidiary • N=Network Partner • JV=Joint Venture NOTE: x: Presence in country. But we could not provide you with the numbers of these companies, because they did not complete them in our chart • /: The companies are not present in these countries.

12

x

FLEET EUROPE #98

/

/

/

S

S

*This total includes Belarus & Kazakhstan.

FLEET EUROPE #98

13

The new The A-Class new A-Class with with

Original Originallike likeyou. you.

The new TheA-Class new A-Class fits tofiyour ts tolife your – from life – the fromsporty the sporty designdesign to thetointuitive the intuitive Mercedes-Benz Mercedes-Benz User Experience User Experience (MBUX) (MBUX) with Natural with Natural VoiceVoice Control, Control, innovative innovative touchpad touchpad and the and the new touchscreen. new touchscreen.

And thanks And thanks to thetoseamless the seamless smartphone smartphone connectivity, connectivity, you’reyou’re alwaysalways connected connected to what to what matters. matters.

The new The A-Class. new A-Class.

Just like Justyou. like you. www.mercedes-benz.com/a-class www.mercedes-benz.com/a-class

DOSSIER

DOSSIER

THE INTERNATIONAL SCOPE 2018

ALD AUTOMOTIVE

ALPHABET

ARI

MACEDONIA

MALTA

MONTENEGRO

NETHERLANDS

NORWAY

POLAND

PORTUGAL

ROMANIA

RUSSIA

SERBIA

SLOVAKIA

SLOVENIA

SPAIN

SWEDEN

SWITZERLAND

TURKEY

UK

UKRAINE

TOTAL EUROPEAN PRESENCE

FLEET 2017 GRAND TOTAL

/

/

/

43396

11579

13001

17661

9229

18260*

2874

4069

2065

97894

25575

4363

16077

137983

4630

1431295

GROWTH 2016-2017

/

/

/

22,4

17,5

0,7

16,5

15,2

7,7

27,7

9,3

12,8

9,8

5,6

5,9

5,9

4,1

7,1

9,8

SUBSIDIARY OR PARTNER

/

/

/

S

S

S

S

S

S

S

S

S

S

S

S

S

S

S

/

FLEET 2017 GRAND TOTAL

/

/

/

x

/

x

/

x

/

/

x

/

x

x

x

/

x

/

/

GROWTH 2016-2017

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

S

S

S

/

S

/

/

85300

/

128806

SUBSIDIARY OR PARTNER

/

/

/

S

/

S

/

Unicredit Leasing (N)

/

/

Unicredit Leasing/ Business Lease (N)

FLEET 2017 GRAND TOTAL

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

GROWTH 2016-2017

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

-12,9

/

-7,7

/

/

SUBSIDIARY OR PARTNER

ARVAL

ATHLON

BUSINESS LEASE

FLEET LOGISTICS

LEASEPLAN

LEASYS

RCI BANK & SERVICES

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

FLEET 2017 GRAND TOTAL

/

/

/

36364

/

22402

9781

8104

10975

/

6353

/

102527

4246

11448

22141

161418

/

1057428

/

/

/

4,3

/

19,1

4,1

7,8

12,0

/

5,3

/

15,2

14,2

8,0

16,2

-0,5

/

7,3

SUBSIDIARY OR PARTNER

/

/

/

S

/

S

S

S

S

/

S

/

S

S

S

S

S

/

/

FLEET 2017 GRAND TOTAL

/

/

/

106000

/

5800

1300

3000

3000

/

4600

/

10500

1600

1000

21000

382400

/

781600

GROWTH 2016-2017

/

/

/

-2,1

/

13,5

5,3

/

-7,1

/

1214,3

/

-17,1

12,0

262,3

-6,7

16,6

/

9,8

/

Business Lease (N)

/

S

S

S

Fleetcorp (N)

Lex Autolease (N)

/

/

SUBSIDIARY OR PARTNER

/

/

/

S

/

S

S

Business Lease (N)

AutoPartners (N)

FLEET 2017 GRAND TOTAL

/

/

/

17000

/

7000

/

3000

/

/

5000

/

/

/

/

/

/

/

49750

GROWTH 2016-2017

/

/

/

0,0

/

25,0

/

3,4

/

/

16,3

/

/

/

/

/

/

/

11,0

SUBSIDIARY OR PARTNER

/

/

/

S

/

S

/

S

/

/

S

/

/

/

/

/

/

/

/

FLEET 2017 GRAND TOTAL

1

1

8404

891

1286

1770

950

1074

92

217

74

5517

4383

2517

860

14576

336

170778

GROWTH 2016-2017

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

SUBSIDIARY OR PARTNER

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

x

x

x

x

x

/

/

/

/

/

/

FLEET 2017 GRAND TOTAL

/

/

/

x

x

x

x

x

x

/

x

GROWTH 2016-2017

/

/

/

/

/

/

/

/

/

/

/

/

SUBSIDIARY OR PARTNER

/

/

/

S

S

S

S

S

S

/

S

/

S

S

S

S

S

/

/

FLEET 2017 GRAND TOTAL

/

/

/

2000

/

/

/

/

/

/

/

/

3000

/

/

/

12000

/

174000

GROWTH 2016-2017

/

/

/

33,2

/

/

/

/

/

/

/

/

1700000***

15,5

/

/

/

29,5

/

22,0

/

/

/

Leasys UK Ltd (S)

/

/

/

SUBSIDIARY OR PARTNER

/

/

/

Leasys Nederland B.V. (S)

/

/

/

/

/

/

/

/

Leasys SPA Spain Branch (S)

FLEET 2017 GRAND TOTAL

/

/

/

17783

/

39228

42376

32428

3200

/

6599

6464

80252

13080**

11120

51029

37932

2306

1365629

GROWTH 2016-2017

/

/

/

18,3

/

49,9

294,7

19,9

14,2

/

66,3

48,8

195,0

-13,8

2,3

100,7

31,7

34,4

93,9

SUBSIDIARY OR PARTNER

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

FLEET 2017 GRAND TOTAL

/

/

/

x

x

x

x

x

/

x

/

x

/

x

x

x

x

/

/

GROWTH 2016-2017

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

SUBSIDIARY OR PARTNER

/

/

/

Business Lease (N)

Sixt Norway Headquarters Autoleie AS (N)

Sixt Poland Headquarters Eurorent Sp. z.o.o. (N)

Iberofleeting (N)

Sixt Romania Headquarters New Kopel Romania (N)

/

Sixt Serbia Headquarters AAA-1 RENT d.o.o. (N)

/

Sixt Slovenia Headquarters Anticus d.o.o.

(N)

/

Sixt Sweden Headquarters Nordic Master Car AB (N)

S

Sixt Turkey Headquarters Artı Seyehat Acentesi Tekstil Sanayi Ticaret A.S (N)

Zenith (N)

/

/

FLEET 2017 GRAND TOTAL

1138

/

432

60568

17546

19658

7845

18200

8581

3221

2772

6433

41336

19177

13098

2175

183393

5152

1440017

46,8

/

0,0

21,1

7,1

14,3

-12,5

38,7

37,9

-8,4

7,9

16,6

26,6

4,0

/

9356,5

19,1

42,9

13,0

S

Volkswagen Møller Bilfinans AS (JV)

S

Porsche Leasing SCG doo Porsche Mobility doo (N)

VOLKSWAGEN Finančné služby Slovensko s.r.o. (JV)

PORSCHE LEASING SLO. d.o.o. (N)

S

Porsche Leasing Ukraine (N)

/

GROWTH 2016-2017 SUBSIDIARY OR PARTNER

Porsche Leasing Dooel Skopje (N)

/

Porsche Leasing doo (N)

S

S

Porsche Mobility SRL (N)

LEGEND: TF: Total Fleet 2016 funded and non-funded • S=Subsidiary • N=Network Partner • JV=Joint Venture LEGEND: TF: Total Fleet 2017 funded and non-funded • S=Subsidiary • N=Network Partner • JV=Joint Venture NOTE: x: Presence in country. But we could not provide you with the numbers of these companies, because they did not complete them in our chart • /: The companies are not present in these countries.

16

/

ARI Fleet UK (S)

GROWTH 2016-2017

SIXT LEASING

VOLKSWAGEN FINANCIAL SERVICES

* The figures in this overview are figures from end of December 2017, communicated by the companies themselves.

FLEET EUROPE #98

S

S

AMAG Leasing AG (N)

VDF FILO (JV)

*This total includes Belarus & Kazakhstan. **This Total includes the numbers of all the nordic countries. ***These numbers are based on the results LeasePlan published in its annual report 2017.

FLEET EUROPE #98

17

DOSSIER

DOSSIER

THE INTERNATIONAL SCOPE 2018

NORTH AMERICA FLEET 2017 GRAND TOTAL

• ALD Automotive Covers 43 countries worldwide, with an increasing footprint in LatAm. Figures show strong growth in Southern Europe, with the acquisition of BBVA Autorenting in Spain, and also in Ireland with the acquisition of Merrion Fleet.

• Alphabet Alphabet started activities in China in January last year, focusing on finance leasing at the moment.

• ARI Redirecting its strategy in Europe, focusing now on open end finance leasing in Germany and UK, where before also Benelux, Switzerland and Portugal were focus countries.

• Arval Further expansion into Scandinavia with opening of Norway subsidiary.

Growth in 2017 was fueled by the core markets (France +5%, Spain +15% and Italy +10%), but also new growth in Russia and Turkey.

• Athlon Very strong growth in CEE via its renewed collaboration with Business Lease, continuous growth in UK but decreasing fleet in Russia, Turkey and Italy.

• Business Lease Continuous growth in CEE markets, since many years the core region for Business Lease.

• LeasePlan Active in 32 countries. LeasePlan's main markets are the UK (12%), the Netherlands (11%), Italy, the U.S. and Germany (8% each), France (7%) and Spain (6%).

• Volkswagen Financial Services Steady general growth on an international level, with exponential growth in Central and Eastern Europe.

ALD AUTOMOTIVE

Canada United States

ALPHABET

ARI

Canada United States

LEASEPLAN

Wheels (N) Wheels (N)

212064 1402062

S S

United States

FLEET 2017 GRAND TOTAL

250000

FLEET 2017 GRAND TOTAL Argentina Brasil Chile Colombia Costa Rica Guatemala Honduras Mexico Nicaragua Panama Peru Puerto Rico Salvador

SUBSIDIARY OR PARTNER

500 23991 2337 65 50 3500 800 23731 500 35 528 1500 500

Australia China

/

S S

Australia China Hong Kong India Indonesia Japan Kazakhstan Malaysia New Zealand Pakistan Philippines Singapore South-Korea Sri Lanka Taiwan Thailand

43200

ORIX (N) ORIX (N) ORIX (N) ORIX (N) ORIX (N) ORIX (N) ORIX (N) ORIX (N) ORIX (N) ORIX (N) ORIX (N) ORIX (N) ORIX (N) ORIX (N) ORIX (N) ORIX (N)

Mexico

30667

ARIZA (JV)

Botswana Egypt Kenya Lesotho Mozambique Namibia Oman Saudi Arabia South-Africa Swaziland Tanzania Zambia

S S

Brasil Chile Peru

22448 6950 2947

S S S

Morocco

Donlen (N)

/

1129000

3949 3806

/

S S Absa (N)

/

6307

1 951 563

644 420

EQSTRA (N) ORIX (N) EQSTRA (N) EQSTRA (N) EQSTRA (N) EQSTRA (N) ORIX (N) ORIX (N) EQSTRA (N) EQSTRA (N) EQSTRA (N) EQSTRA (N)

2 945 799

S

1 103 835

/

/

/

1 031 600

/

/

/

49 750

/

Argentina Brasil Chile Colombia Costa Rica Cuba Dominican Republic Ecuador El Salvador Guatemala Honduras Mexico Nicaragua Panama Paraguay Peru Puerto Rico Trinidad Uruguay Venezuela

368 1409 141 93 13 7 6 28 3 31 7 1039 6 9 38 24 6 2 40 17

/

Morocco

61

/

196 967

Brasil Mexico

/

S S

UAE

/

S

/

2696

/

United States

/

S

Australia India New Zealand

S S S

S

115 1 32 26 1 606 199 773 120 44 132 9 271 171 16 209 3 79

/

/

/

/

RCI BANK & SERVICES

/

South-Korea

13365

/

SIXT LEASING

/

/

/ Argentina Brasil Colombia

459 48915 3929

/

Australia China Japan

2026 6208

S S S

Brasil

344

Colombia Mexico

FLEET EUROPE #98

/

/

Algeria Morocco

1254 36572

/ Argentina

VW Credit USA (N)

3943 10207 36000

/

Canada

/

Algeria Morocco South-Africa

TOTAL GLOBAL PRESENCE

/

Australia Azerbaijan Bangladesh China Hong Kong India Indonesia Israel Japan Kazakhstan Korea Malaysia Pakistan Philippines Taiwan Thailand Uzbekistan Vietnam

United States

Autocorp (N) S S S Arrend (N) Arrend (N) Arrend (N) S Arrend (N) Arrend (N) S Arrend (N) Arrend (N)

SUBSIDIARY OR PARTNER

FLEET 2017 GRAND TOTAL

FleetPartners (N) Baosteel (JV) S FleetPartners (N)

LEASYS

VOLKSWAGEN FINANCIAL SERVICES

AFRICA/MIDDLE EAST

55000 3408 11400 25000

LEGEND: TF: Total Fleet 2017 funded and non-funded • S=Subsidiary • N=Network Partner • JV=Joint Venture

18

SUBSIDIARY OR PARTNER

LATIN AMERICA

Australia China India New Zealand

China India

/

BUSINESS LEASE

FLEET LOGISTICS

SUBSIDIARY OR PARTNER

/

ARVAL ATHLON

13000 304273

ASIA/PACIFIC

13000

174 000

/

/ Volkswagen Credit Compañía Financiera S.A. (S) Banco Volkswagen S.A. / Simple Way S.A. (S) Porsche Movilidad Colombia SAS (N) S

South-Africa

2516

1 470 118

/

Volkswagen Financial Services South Africa PTY (JV)

1 464 111

NOTE: x: Presence in country. Dear Readers we could not provide you with the numbers of these companies, because they did not complete them in our chart.

FLEET EUROPE #98

19

DOSSIER

Flexibility rules the lease industry

6

month rental – just in time for his new job

3

day rental – while her lease car is at the workshop

Dieter Quartier @DieterQuartier

Diesel is out, petrol and electric are in. Which solutions does the car leasing and fleet management industry have to anticipate legislation changes, altering customer demands and the subsequent remarketing challenges?

Legislation

Market

Remarketing

With the Leipzig court having issued an official statement on 18 May saying that German cities can ban all but Euro 6 diesels from their low-emission zones, the writing is on the wall. However, the oily fuel is still considered attractive elsewhere in Europe.

In Italy, for instance, sales of diesels have been holding up much better than in other European markets.

In the Netherlands, one in every forty new cars leaving the showroom now does so on battery-power alone. At the same time, plug-in hybrid sales plummeted. The reason is legislation – nothing more, nothing less. Fleet Europe asked lessors and fleet owners how they cope with such variability and advise their clients. More than ever, the answer is flexibility – both from the supplier and the client side.

INDEPENDENT, CUSTOMISED ADVICE That is why ARI Fleet believes in open end finance lease. “It allows you to anticipate and react on changing legislation through early terminations that do not bring penalties with them”, a spokesperson said. “We feel though that in a lot of discussions, different ideologies from different stakeholders lead to diverging opinions and messages.”

A similar echo can be heard at Fleet Logistics. “As an independent fleet manager one of our core benefits is the impartial analysis of the upcoming demands. Within our consultancy unit we are able to create transparency, to interpret the status quo and to develop best-practice methods.

Customers need to get specific answers on their specific fleet demand and even

20

FLEET EUROPE #98

For every need.

We have the perfect rental solution.

We believe in flexibility and mobility at all times. That’s why Alphabet offers tailor-made rental solutions for short- and longterm demands. Whenever you need a vehicle – for a day, a month or longer – AlphaRent provides a wide range of business cars, estate cars, electric cars or even commercial vehicles from your trusted mobility expert.

Get to know more today. www.alphabet.com/alpharent

4

week rental – for his consulting project

DOSSIER

Providing all the elements of the ecosystem around an EV is en vogue amongst new lessor services.

within a customer there is the need for an answer on the different user profiles they might have.”

HELPING CLIENTS TO GO ‘E’ Sixt Leasing is actively advising companies on how they can sensibly increase the proportion of petrol and alternative powertrain cars in their fleet. “Total costs are not the only thing that counts for corporate customers. Ecological aspects like the vehicle’s CO2 and other emissions will play a greater role in the future, along with related aspects such as reputational factors and potential driving bans in inner cities,” the company believes.

Business Lease takes an equally active role in the Netherlands as to electrifying fleets. The company has developed EV software tools to assess the practical and financial feasibility for a client or prospect to make this transition. Finally, it organises a workshop to determine what it takes to accomplish the set goals.

Thanks to its new partnership with Renault, Nissan and NewMotion, Arval is now able to cover the whole EV ecosystem including home and workplace installation, integrated payment solutions and digital services such as consumption tracking and charging point location.

This EV offer is flexible and modular, includes a trial period and features additional services, such as a petrol/diesel vehicle replacement option for short periods. It will be available across Europe in 2018, starting in France, UK, Belgium, Norway and the Netherlands.

CAPTIVES: SURFING ON E-SUCCESS “On EV, we witness a concrete market upward trend, including in fleet demand which is a real business opportunity for RCI as the Alliance is the world EV leader,” an RCI Bank & Services spokesperson stated. The Nissan Leaf and Renault Zoé are both in the European top five, not least thanks to their upgraded battery which now yields 250 to 300 kilometres of realistic range.

RESIDUAL VALUE: WHO DARES WINS Lessors have relatively little remarketing experience with alternative power vehicles. Moreover, consultancies have to walk on thin ice as nobody really knows which way markets, technology and legislation will go. That leads to sizeable pricing deltas between leasing company rates of EVs and hybrid vehicles, fleet management company TraXall remarks, so this area remains important to keep in competition to maximise financial efficiency.

22

The VW e-Golf, too, has been given a jump start with its stronger battery.

Moreover, Volkswagen Financial Services notices an increasing demand for consultancy services related to electric vehicles and their integration into the fleet of their customers. “Therefore, we decided to create a special consultancy programme which will be launched in 2018,” the company said. “Central in this programme will be an analysis of the fleet’s driving profile and the infrastructure of the company.”

TACKLING THE REMARKETING CHALLENGES Most lessors seem to go for a panEuropean multi-channel approach, keeping close tabs on customer demand and volumes. Here too, flexibility and creativity are key.

“While the bulk of our sales go through ALD Carmarket, retail sales prove to be very profitable and we are working to increase our capabilities in that area,” the French lessor said. Finally, the group is developing and promoting its second lease offer, i.e. leasing of used cars.

LeasePlan just launched a pan-European remarketing platform, CarNext.com, which should allow the EV forerunner to maximise resale options. In time, the platform will allow customers to buy, lease or subscribe to the used car of their choice.

FLEET EUROPE #98

DOSSIER

DOSSIER

Sole supply, bundled services and transparency Jonathan Manning

Leveraging fleet purchasing power should make good financial sense, but to avoid hidden costs fleets need to negotiate hard on terms and conditions and unbundle services.

In theory, fleet procurement looks straightforward: channel all purchases through as a single supplier, and use this volume to negotiate maximum discounts and rebates. Not only will this deliver cost savings, but by forging a partnership with a sole supplier, fleets should achieve optimum process efficiency for their back office administration thanks to harmonised reporting and invoices.

This is a view supported by ALD Automotive, which said the combination of its extensive operational network and scale allows it “to purchase and manage vehicles across a wide number of countries in a highly cost-efficient manner. Our clients benefit from this huge scale effect and this maximises savings for them.”

Fleets can shop around for better local deals and establish procurement alliances, although these “risk adding complexity and cost without bringing additional benefit to any of the parties involved,” said ALD Automotive.

But it also leaves open the difficulty for fleet customers of monitoring whether the rentals and terms they negotiate still represent best value 12, 24 or 36 months after they first sign the contract.

24

THE CONSOLIDATED FLEET Software company Infor decided to consolidate its 1,200-plus car fleet into a single supply solution after rapid expansion of the company through acquisitions meant it was dealing with about 25 leasing companies in 15 countries.

Fer Derwort, EMEA fleet manager, Infor, said: “The main reason to look further into the possibility of having just one leasing vendor was because it was a big challenge to our accounts payable team to get everything coded financially. Secondly, the general terms and conditions per country and per lease vendor were also complex.”

This complexity made it difficult to compare prices, terms and conditions, so after a lengthy investigation the company decided to appoint a single lease vendor, Volkswagen Financial Services, and to harmonise its company car policy across Europe. Lease rates, taxes and insurance differ from country to country, but the terms and conditions of lease contracts are identical, as is the eligibility of company car drivers to the same make and model of vehicle.

FLEET EUROPE #98

Harmonising terms and conditions can lead to bigger savings than maximising purchasing power.

Under the terms of the agreement lease rates are recalculated three times per year, while Infor keeps a close eye on general market rates to see the prices available from other potential suppliers, albeit wary of attractive introductory offers.

“I don’t want a low rate, I want the best terms and conditions,” said Derwort.

“For example, the free return of vehicles when they can’t be deployed any more, or lowering the amount of lease charges at the end of lease term.”

He estimates that these standardised, favourable terms and conditions deliver savings of as much as 70%, completely outstripping the savings available from slightly lower lease rates.

HIDDEN COSTS OF LEASING The hidden costs of leasing are going to come to the fore as transparency increases in coming years, said ARI. It believes fleets will move away from the murky world of bundled services into a transparent supply agreement.

“Nowadays it becomes increasingly difficult for customers to understand why they are paying extremely high safety margins and premiums on their lease contracts,” said ARI.

FLEET EUROPE #98

It believes the introduction of IFRS 16, which will force leasing companies to reveal their depreciation calculations and interest rates when lease cars appear on corporate balance sheets, will lead fleets to “reevaluate their funding decisions.”

In this environment, collaborations and partnerships are going to proliferate as tech giants and mobility start-ups jostle with leasing and rental companies to become gateway suppliers to fleets, argued Alphabet.

“We see a clear trend away from Closed End Full-Service leasing contracts and into more transparent, Open End Finance Lease with unbundled services,” said ARI.

“With the creation of the omni-channel customer experience fleet providers are optimising and managing complex customer journeys - from collection of customer data, bundling of services and standardisation of customer communication,” it said.

“With the sheer amount of data available to fleets today through an open model, customers can make informed decisions.

But with the full-service leasing option leasing companies are reluctant to share this as it is their asset. In order to gain the necessary flexibility and save cost on the lease, more and more fleet managers decide to buy an Open End Finance lease and pay their operating costs as they occur without premiums.”

The goal is a seamless customer experience but, as Alphabet added, the challenge for both the leasing industry as well as corporate customers is to find the right balance between standardisation and the necessary customisation to meet the specific requirements of each fleet.

MOBILITY FORCES BUNDLED SERVICES But just as this transparency arrives, so the market appears to be shifting towards mobility services where no single supplier is capable of delivering a complete solution. By necessity this will require a bundling of services, particularly with regards to public transport.

25

DOSSIER

DOSSIER

The consequences of new regulations Stijn Blanckaert

IFRS16, GDPR, WLTP. Three abbreviations that have a solid effect on the businesses of fleet management and leasing companies. Are they ready for the new obligations that result from them?

WHAT IS IFRS16?

IFRS16 is the new lease accounting standard that will be in effect as from January 2019 for all companies that publish under the IFRS-accounting rules.

One of the consequences is that lessees will be required to bring all leases on their balance sheet, including full operational lease contracts that up till now were booked “off balance”. The impact of the IFRS 16-standard can be significant on profit & loss and balance sheets.

ALL AT ONCE Rarely has a similar number of new, important regulations been put in place at the exact same moment. Leasing companies and fleet management service providers not only have to cope with the changes in accounting standards imposed by the IFRS16 regulation, which cause them adapt procedures and methods, but at the same time, their resources are needed to deal with the consequences of the GDPR data protection regulation that has an important impact on their way of processing personal data. And on top of that, the switch from NEDC to WLTP for the determination of fuel consumption and emissions of motor vehicles forces them to assist customers in reviewing entire car policies because of the consequent changes in emission-based taxation.

IFRS16: MIXED EMOTIONS Because the new accounting standard that will come into effect from 2019 obliges lessees to book all leased assets on their balance sheet, leasing companies have to adapt their reporting systems. Alphabet has developed a full communication package to help its customers prepare, including a short animated film to explain the implications.

At RCI Bank & Services, workshops have been organised with the main customers to build solutions together with them, and new tools have been produced to support the new accounting procedures.

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Since the beginning of 2018, lease company Athlon has rolled out a reporting system, available through their web portal, that supports their customers to comply with the new rules.

Sixt Leasing and Volkswagen Financial Services do not expect serious changes in leasing demand, since a majority of companies are accounting on the basis of their local accounting regulations and will not be affected by the reform. Although major international groups following IFRS will have to arrange themselves with the new rules after a transition phase, VWFS points out that market studies prove that balancesheet neutrality is not a decisive criterion for leasing. In a survey by the Association of German Leasing Companies (BDL) among 1,000 company decision-makers in 2015, balance-sheet neutrality is not even among the top 10 reasons for leasing, says VWFS. They are working on different ways to provide their customers with information about their leasing contracts so they can activate them in their balance sheet.

Somewhat contrary to the belief of VWFS, ARI thinks that IFRS 16 is going to change the way international fleets are funded, with the classic Closed End Leasing model with its perceived off balance funding solution advantage set to lose a lot of its current attraction. ARI thinks that many providers of that model which today enjoy serious returns due to the intransparency and

FLEET EUROPE #98

Legislation has become one of the main steering elements of fleet and mobility programmes in Europe.

inflexibility will definitely be challenged in a new environment of much lower margins in the Open End Finance Lease world.

GDPR: PROTECT PERSONAL DATA All European businesses are concerned by the new data protection regulation. Since leasing companies and fleet management service providers process tons of personal data linked to the drivers of the cars, the impact of GDPR on their daily business is not to be underestimated.

Athlon says that because of the nature of their business, most requirements were already in place before the new regulation was drafted. They ensure that they are fully compliant with the new regulation right from its activation.

Within the Alphabet organisation, across the European branches, projects were put into place to enhance transparency regarding Alphabet’s data processing activities, implement compliant operational processes and IT-functionalities and so on.

They also implemented privacy enhancing measures, data minimisation and privacy friendly settings during the complete lifecycle of developing mobility products and services through their dedicated Data Privacy Impact Assessment process.

FLEET EUROPE #98

WHAT IS GDPR? GDPR stands for General Data Protection Regulation. It is the new European regulation that has come into force on 25th May 2018 to ensure that all data protection laws are applied identically in every EU member state. The consequences are that all businesses handling EU residents’ data will have to comply with a set of rules regarding the treatment of these data with respect to the rights and interests of consumers.

At Fleet Logistics, all customers will receive a proposal for a Data Processing Agreement, tailor-made for their fleet management purposes.

For RCI Bank & Services and ARI, GDPR is nothing new. They say these regulations have been a business reality for some time already, and ensure they are fully compliant.

As for what Chevin Fleet Solutions is concerned, the fleet management software company emphasises the need for encrypted password-protected software for the treatment and storage of personal data, alongside a documented consent from each employee for the storage of their data, with the guarantee that these data

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Leasing companies travelling to mobility Jonathan Manning

The short term prospects for full service leasing are strong, but Europe’s largest leasing firms are preparing to add and integrate additional travel options. abandoning offers for traditional clients, we are working on shared mobility solutions. We launched I-share, our corporate car sharing platform and we are going to present U-GO, our P2P (peer-to-peer) platform, designed for car sharing between private individuals.”

New and fast changing regulations make it challenging for fleet managers to predict the costs of their fleet.

WHAT IS WLTP? WLTP, or Worldwide Harmonised Light Vehicle Test Procedure is the new method for determining the official fuel consumption and emissions of cars and light commercial vehicles.

Completed by RDE testing (Real Driving Emissions) it replaces the outdated NEDC test (New European Driving Cycle) in order to have more realistic fuel consumption and emissions values.

are only available to authorised personnel.

They mention the necessity that software systems used by fleet managers that hold personal data meet an official accreditation standard such as ISO 27100 to formally acknowledge that data protection is properly ensured.

WLTP: TAXATION CHANGES ARE INEVITABLE Although the consequences of the new emission and fuel consumption measurement method are indirect, through modifications in taxation based upon CO2-emissions, leasing companies and fleet management service providers are confronted with the need to assist their customers to adapt car policies and TCO-calculations. The effects will be different from one country to another, so each company has to do its homework.

For what Athlon is concerned, every national branch hosts sessions for customers and employees to familiarise them with the topic and how it affects their situation. Alphabet started to inform their customers early about the upcoming challenges with, among others, a dedicated microsite, customer newsletters and so on. Their sales teams also received special training to proactively consult the customers.

Amid the current mania for mobility, the market is in danger of overlooking how efficient the company car itself has proved as a mobility solution.

“Mobility is a vital factor for companies. In order to compete, they have to ensure their employees’ mobility,” said a spokesman for Sixt Leasing.

The complexity of car configurations towards the compliance of CO2 emissions in car policies will only increase, thinks ARI.

New mobility arrangement for business travel.

The merger of traditional company cars into mobility arrangements presents a challenge for leasing companies. The timing of this transition and the investments required are a concern for the boardrooms of lease firms across Europe.

None see an imminent end to their current lines of business, yet all are adding products and services to deliver more complete travel solutions to fleet clients.

A spokesman for Leasys captured the essence of this dilemma: “While not

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“The company car remains a key component of the corporate mobility mix – whether in service fleets, management fleets or as a motivational tool and salary component for staff.”

He conceded, however, that the demands of mobility are growing, and highlighted the importance of fleet management, “as the interface between new mobility service providers such as car sharing or ride-hailing and automotive-related goods and services such as vehicle procurement, tyres and insurances.”

THE GROWTH OF PRIVATE LEASING The digitalisation of business, the development of connected cars and mobility as

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a service, and even the growing popularity of alternatives to four-wheel transport all present challenges for full service leasing.

Yet every threat also creates an opportunity, and as the long term trend continues from the ownership to ‘usership’ of vehicles, so will demand for outsourced mobility solutions, said a spokesman for ALD Automotive.

“We believe that this will offer significant growth opportunities both in 2018 and beyond,” he said.

2020

COMMERCIALISATION OF 5G

270%

GROWTH IN CONNECTED CAR MARKET BY 2022

40%

SHORTER VEHICLE WAIT TIMES AT CONNECTED TRAFFIC LIGHTS

As a result, ALD expects to see a huge expansion of its private lease fleet, boosted by providing white label solutions to car manufacturers and banks. Private leasing accounted for 17% of ALD’s total fleet growth last year, and the company is on schedule to double its private lease fleet from 78,000 vehicles at the end of 2017 to 150,000 by the end of 2019.

Some of the uptake for personal leasing will come from former company car drivers, accustomed to the ease and peace of mind of an all-inclusive motoring solution, but there’s also a growing belief that many fleet drivers will migrate away from an individual car and into mobility solutions.

FROM FLEET MANAGEMENT TO TRAVEL MANAGEMENT Volkswagen Financial Services forecasts a gradual merger of car fleet management with travel management, with a shift in focus from total cost of ownership to total cost of mobility.

“New technologies support this development as they give the mobility manager the opportunity to handle the diverse requirements of his drivers and colleagues who are on a business journey in an integrated way,” said a VWFS spokesman.

Telematics, for example, has the power to challenge the inflexible nature of many current vehicle contracts.

“The real-time ‘pay-per-use’ accounting of these contracts might become possible soon,” according to VWFS, although it still expects traditional car leasing to thrive throughout 2018.

Looking ahead 10 to 15 years, Fleet Logistics is preparing for “major structural changes

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When two trends come together: private lease of electric vehicles is expected to create new business opportunities for lease companies in the more mature markets in Europe.

in the European fleet industry with a move away from a pure fleet management approach to one of mobility management.”

FUNDING REVIEWS IMMINENT It believes the new accounting regulation IFRS16, which will see lease cars recorded on company balance sheets for the first time from 2019, will prompt some larger companies to reconsider the way they fund their company cars.

“Leasing might not be the only alternative in the future,” said Joerg Loeffler, CEO of Fleet Logistics. “With service providers offering a guarantee for residual value as a stand-alone product purchasing of fleet can be more attractive. We will enlarge and improve our offering, and move from a car-centric view of fleet to a driver or user-centric view. This will include other means of transportation.”

A car will still be at the heart of this arrangement, but bundled with other services, too.

“It will be our job, for example, to ensure the driver can park his car at the entrance FLEET EUROPE #98

to a city, and know where to get the right mode of public transport for the rest of the journey. Our vision is to be the truly independent mobility integrator,” said Joerg Loeffler.

Alphabet said mobility on demand is already on the agenda of corporates, coinciding with a blurring of the lines between private and business usage. It predicts the classic company car will be complemented by corporate car sharing, short term rental, taxis, ridesharing and public transport, all delivered via a mobility budget.

The timeframe for these developments depends on external technological developments. Shared mobility, for example, will enter the corporate mobility world substantially, once level 5 autonomous vehicles are on the road, according to Alphabet.

IT INVESTMENTS FOR MOBILITY It is one of a number of leasing firms investing heavily in the technology to deliver mobility solutions.

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Fleet management software specialist Chevin Fleet Solutions reported that it is “already receiving a high volume of requests for mobility functions within our software. FleetWave already facilitates a number of mobility functions including automated electronic key boxes; ride sharing; motor pool services and a booking planner.”

USED CAR LEASING In this shifting mobility landscape, one constant for leasing companies is the need to maximise the residual values of defleeted cars. Richer data on both the usage of vehicles and the prices they achieve in the used car sector is opening the opportunity for end-of-contract vehicles to be leased to a second owner.

Leasys launched Come Nuovo, for the lease of its used vehicles at the start of 2018; VWFS’s Leasingbörse gives VW dealers in Germany access to a selection of second-hand vehicles that are under a year old, along with lease rates for private customers; while LeasePlan intends to add a leasing option to its online sales

platform, CarNext.com, for three-tofour year old ex-lease cars.

The appeal of a well-maintained, secondhand car for a low fixed monthly fee is clear, but Wolfgang Reinhold, chairman of the Car Remarketing Association (CARA), questioned whether leasing companies could offer competitive rentals.

Private lease rates for new cars are attractive because there is a discount on the acquisition price built into the rental, which the customer doesn’t see. This discount is not available for second-hand cars, which means the profit margin has to be made on the interest rate of the finance. Yet with interest rates so low on bank loans, the scope to charge significantly higher rates for leasing is limited, said Reinhold.

“Nobody will pay 6% or 7% interest when you know you can get it from your bank for 3% or 4%,” he said.

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ADVERTORIAL

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CONCEDED EDITORIAL SPACE

New Kia Ceed Exceeding expectations!

A lease to fit the disruption Dieter Quartier @DieterQuartier

The Kia Ceed in its first two versions – marked the launch of one of the most successful adventures in European motoring history: the emergence of Kia as a mainstream, sporty, stylish and high quality brand.

Just over a decade later, the latest edition of the Ceed takes all of the tried and tested benefits of its predecessors, adds a whole host of up to the minute driver and safety features, and wraps them all into an even more appealing, stylish, athletic design.

And like its predecessors, the new model has been designed, developed and engineered in Frankfurt by Kia’s European design, product development and R&D teams. It will be manufactured at the brand’s production facility in Žilina, Slovakia, alongside the Kia Sportage and Kia Venga, and like every other car in the Kia line-up, is covered by Kia’s industry-leading 7-Year, 150,000 kilometre warranty.

Money from the East with knowhow from the West makes interesting new carmakers. Intriguing is also the way they could revolutionise car finance. Are conventional lessors being pushed aside?

Occupying a unique position in the Kia line-up, Ceed is perceived by fleet managers and company cars drivers as the most dynamic and sporty vehicle to drive, while also being one of the most reliable, practical and recognisable. Aided by an expanded product offering, including Sportswagon and the arrival of GT and GT-Line variants, Kia’s C-segment line-up represents the ‘centre’ of the Kia brand.

UNDER THE BONNET:

• 1.0-litre T-GDi: 120 hp • 1.4-litre T-GDi : 140hp • New ‘U3’ 1.6-litre CRDi: 115 and 136hp • Six-speed manual gearbox • Optional 7-speed automatic on diesels

By late 2020, the first ro-ro vessels coming from China should disembark an initial series of Byton production cars onto European quays. The brand will not take the Tesla route, whereby proprietary outlets sell cars directly from the manufacturer, but a hybrid approach. “As with BMW i, the dealer acts as an agent. The showroom will have in-store CI”, explains Henrik Wenders, VP marketing at Byton.

“We are talking to serious partners that are running multi-brand stores. They have the local market knowledge and will operate the business, whereas we make sure we provide the right standards.”

A FEW KEY FEATURES:

• High Beam Assist • Driver Attention Warning • Lane Keeping Assist • Forward Collision Warning • Forward Collision-Avoidance Assist • Smart Cruise Control • Stop & Go • Blind Spot Collision Warning • Rear Cross-Traffic Collision Warning • Smart Parking Assist • Pedestrian recognition • Kia Connected Services • Full smartphone integration • Apple CarPlay™ and Android Auto™

Byton is aiming to be profitable with a classical car business.

compatible.

1. BYTON The next-generation smart device that gives you time to connect, time to relax, time to dream, and simply: time to be. That was how Hong Kong-based Byton is marketing its first model, which could take on the likes of the Tesla Model X and Jaguar I-Pace – for half the money. The new company was co-founded

by Carsten Breitfeld, a former BMW Group Vice President who united automotive brains with a couple of AI wizards from Google and Apple and a few hundred million euros in Chinese capital to create something the world has not seen before.

MORE INFO www.kia.com/eu 32

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It won’t go as far as Lynk&Co, then, with its entirely usage based model? “We are aiming to be profitable with a classical car business. Of course, we are observing the market, and if new service and mobility options come along, we could easily adapt and integrate them. If your own core business is not profitable, however, you are less flexible”, concludes Mr Wenders. Byton was unable to disclose information on their approach to conventional leasing companies and its fleet strategy in Europe, but nothing stands in the way of local partnerships emerging.

2. SAIC SAIC, an acronym that stands for Shanghai Automotive Industry Corporation, opened shop in Europe last year. In Luxembourg,

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Sharing and swapping is in our DNA Dieter Quartier @DieterQuartier

Lynk&Co is in talks with pan-European finance partners for its subscription model.

to be precise, at the heart of the region it wants to conquer. In Europe, SAIC distributes two entirely different products: electric vans, namely the Maxus EV80, and passenger cars carrying the badge of a British brand that went out of business in 2005: MG.

ZS. When MG comes to the rest of the European continent, in 2019-2020, it will position itself as a maker of value-formoney electrified B and C segment cars and SUVs. The business model is likely to be usage-based, in which private lease could play an important role.

who want maximum flexibility and all-inclusive pricing rather than longterm commitments. The contract duration of our subscription model could go from just 1 month to 3 years, with the possibility to swap vehicles up to four times a year, all at an attractive price.”

This year, SAIC Mobility Europe (the European HQ) is launching a project involving 200 European fleet owners who will try out the Maxus EV80 as part of a leasing agreement. At this moment, the company is unable to disclose any further information, except for the fact that it will be working together with a sizeable partner in Germany. The advantages of the EV80 are its competitive price, 3-year warranty on the vehicle and 5-year/100,000 km warranty on the battery pack. It is filling a niche that is about to expand, with LEZ being introduced. It is available as a 10.2 m³ panel van and as a chassis cab. More models and powertrains are to follow in 2019, when electric Maxus vans should no longer be a rare sight on Western European roads.

3. LYNK&CO Volvo’s connected sister brand launched successfully in its domestic China in November 2017. By the turn of the decade, it will start spreading its electrified crossovers to the European public from Volvo’s Ghent factory in Belgium.

Indeed, the 01 is a technical clone of the XC40, but the way it looks and feels will be different altogether.

Lynk&Co will not have dealerships: customers are expected to subscribe online. Every country will have a few brand stores, called “Offline Stores” - small, sociable brand boutiques in urban districts. Maintenance and repair is likely to be carried out by the Volvo network. As to the subscription product, Lynk&Co is in talks with pan-European finance partners.

As far as MG is concerned: SAIC currently builds 5 models in China, 3 of which are already being exported to the UK: the city car MG3, the Nissan Qashqai rival MG GS and the Mazda CX-3 like MG

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“Connectivity and sharing is built in in the car’s DNA”, says CEO Alain Visser.

“Other brands are developing connected services and sharing as well, but we are the only brand that integrates these capabilities in the hardware of our vehicles. They can be unlocked with a smartphone, opening up a world of interesting usage scenarios.”

As such, Lynk&Co’s subscription model seems to open up interesting opportunities for business-to-employee programmes. The company will also just sell its cars, incidentally. Today, that seems a sine qua non to set foot on Europe’s B2B market. But a lot can change between today and 2020. In any case, convention is not in Lynk&Co’s dictionary.

Volvo’s connected sister brand launched successfully in its domestic China. By the turn of the decade, it will start spreading its electrified crossovers on the European continent. Its USPs? A very flexible, affordable subscription model and built-in sharing capabilities. That sounds like music to the ears of the Mobility Manager – and called for an interview with the company’s CEO, Alain Visser.

Mr Visser, Lynk&Co got off to a flying start in China. It is the right car in the right place at the right time?

China has welcomed Lynk&Co very warmly indeed. Looking at the order intake, we are well on our way to hit the 100,000 mark by the end of the year. Our 01 seems to be in the right spot in terms of market positioning. One the one hand, there is the car itself, which is premium and still attractively priced. On the other, there is its smartphone aspect. That proves to be an attractive proposition to the younger generation.

Alain VISSER, CEO of Lynk&Co

Linked to these capabilities is the fact that Lynk&Co focuses on a usage based business model rather than ownership. “We want to reach out to the young-minded FLEET EUROPE #98

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Smartphone, as in: a monthly all-inclusive fee, different devices to choose from and plenty of apps?

Exactly. Millennials want maximum flexibility and all-inclusive pricing rather than long-term commitments and hassle.

Our subscription model is more than just a private lease. It includes services like pick-up and delivery, cleaning, and lots of other things I cannot disclose just yet.

Moreover, the contract duration goes from just 1 month all the way up to 3 years, with the possibility to swap vehicles up to four times a year, all at an attractive price.

Talking about price: how are you able to keep costs at bay?

First of all, we are owned by Geely, meaning that we can use Volvo platforms and technology. Second, our distribution model cuts out the middle man. We sell our cars online, directly to the end-user. Third, we limit our product offer. The customer can choose from a fixed collection offering different colour combinations, but no flexibility in terms of equipment. All our cars come with a plethora of comfort, convenience and connectivity features.

Connectivity is the largest chromosome in Lynk&Co’s genome. How does it express itself?

Lynk&Co has a dedicated app store for its cars. Thanks to our open application programming interface (API), third-party developers can create and build apps for our vehicles. Furthermore, our cars are always connected to both the internet and a personal cloud for the driver. Last but not least, we have the world’s first in-car share button.

Car sharing is hot in corporate mobility. What is Lynk&Co’s added value?

Other brands are exploring sharing services as well, but we are the only brand that integrates the sharing in the hardware of our cars. They can be unlocked with your smartphone, opening up a world of interesting usage scenarios. Software allows you to easily split the costs based on usage.

If anything, Lynk&Co is the brand that will make sharing easier than ever before.

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Go low-CO2 and beat WLTP

Indeed, depending on the order and production date, a car can fit an employee’s budget or not.

WLTP and RDE are causing serious bottlenecks for OEMs, which are struggling to get all their cars type-approved in time, i.e. before September 2018. The RDE test requires them to take every single model with every single powertrain on public roads for emission assessment.

Moreover, petrol engines now need particulate filters to comply with the latest Euro 6d-temp emission standards, requiring extra engineering and development.

Dieter Quartier @DieterQuartier

Depending on the market, WLTP will cost fleets hundreds, if not thousands of euros per car.

It will be a difficult financial exercise for fleets, but going green and thinking out of the box may keep employees and CFOs happy.

HOW TO COUNTERBALANCE WLTP? As indicated by Athlon Belgium’s WLTP whitepaper, there are a few routes you can consider to soften the blow.

1. QUICK WINS Even more concern arises about the situation in January 2019 and beyond. By then, taxation should be WLTP-based, but this is also member state dependent. If the taxation rules are not adapted to the higher CO2 values, the national treasuries will surely benefit, at the expense of consumers and corporate fleets – something the EU and ACEA desperately want to avoid.

NOT JUST FISCAL COSTS The dreaded cost increase is mainly due to the fiscal impact of the higher official CO2 figures. Next to road tax, also benefit in kind, fiscal deductibility and employer’s contributions are affected. This is of course very market-dependent.

To counterbalance the weight of WLTP, your car policy needs reviewing.

CO2MPAS: SMALL COMFORT The so-called CO2MPAS correlation method, a transitional measure between September 2017 and January 2019, converts the WLTP value to a correlated NEDC value.

The latter is to be used for taxation purposes and should correspond more or less to the true NEDC value, avoiding any competitive disadvantage. However, the WLTP and therefore also the correlated NEDC values are higher than initially expected.

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But there are non-fiscal elements at play, too. The RDE (Real Driving Emissions) test, that should ensure compliance with the Euro 6d-temp emission standards, requires car makers to thoroughly update some of their engines, causing prices to rise.

THE PRACTICAL CONSEQUENCES Thanks to WLTP and the ‘correlated NEDC’, the exact same car can have two different NEDC values, depending on when it was type-approved. A car that is produced in May 2018, for instance, can still have an old NEDC type approval, whereas a car that is built in June 2018 could already have made the switch to WLTP and therefore have a (higher) correlated NEDC value.

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• Choose stock vehicles. Until September 2019, carmakers can sell existing mo-

dels that retain their advantageous NEDC-type approval.

• Extend the current vehicles’ lease term. This should be investigated case by case and is subject to the lessor’s approval.

• Longer lease terms for WLTP cars. By choosing a longer contract duration than today, your monthly rate will come down, partially compensating for the tax increase.

2. EMBRACE THE MOBILITY BUDGET Switch from vehicle budgets to mobility budgets. A long-term mobility vision can no longer be based on CO2 emissions of cars, as these have become an unpredictable variable. Independent from the powertrain of the company car and from the fact that one uses public transport or a bike, policies should be based on TCM (Total Cost of Mobility) instead of TCO. By embracing a mobility budget, employees are stimulated to opt for a smaller car in combination with other, more sus-

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tainable mobility solutions. A smaller car means lower CO2 emissions and could be a solution to compensate for the WLTP effects.

3. SWITCH TO ALTERNATIVE It stands to reason that in the long run, purely electric vehicles will become the norm. Today, however, three major obstacles remain: a limited model offer that mainly consists of expensive cars, a limited range and limited charging infrastructure.

Until prices come down and range anxiety is no longer an issue, it seems that CNG (natural gas) and hybrids are a feasible solution to soften the impact of WLTP. You therefore may want to think out of the box and welcome new brands to your shortlist.

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MANAGEMENT

Celebrating supplier innovation

2 Smart

Mobility Start-Up of the Year: The Smart Mobility Start-Up of the Year Award celebrates start-ups and develop innovative or disruptive products or services for the fleet and mobility industry. Around 10 start-ups will be selected by the jury to present their product to the European fleet and mobility community.

@uytteb

year, Fleet Europe celebrates an industry leader who has contributed over their entire career to the professionalism of and innovation in international fleet management. This year we are celebrating an industry leader from the Automotive and Car Manufacturer community that has brought inspiration and knowledge to the fleet community.

Winner 2017: PARKD

3 International

Car Remarketing Award: The International Car Remarketing Award will be given to an international player in the automotive remarketing sector that has developed an innovative project, product or service in the field of international automotive remarketing operations. We are looking for an innovation that contributes to the efficiency and transparency within the remarketing process, or that contributes to the margin realised on the vehicles.

Benjamin Uyttebroeck

4 International Fleet Hall of Fame: Every

Winner 2017: Tim Albertsen, ALD SA

APPLY NOW Are you convinced that you have helped develop innovative services and products in the field of fleet and mobility management? Apply now for the chance to receive the recognition you deserve.

Send an e-mail to vemonts@nexuscommunication.be.

Winner 2017: RMS Automotive

Who will succeed to last year’s winners? From left to right: Tesla, International Fleet Industry Award, PARKD, Start-up of the Year; RMS Automotive, International Car Remarketing Award; and Tim Albertsen, inductee to the International Fleet Hall of Fame.

If there’s one word that describes the current state of affairs in the fleet industry, it’s transformation. The cars we drive are changing, the way we obtain them is changing, the companies providing them are changing. More than ever, the Fleet Europe Awards go to fleet professionals that stand out.

Legislation and taxation rules have also been overhauled and continue to do be reviewed. Many countries have introduced emission-dependent tariffs and other measures to push fleets towards greener options. WLTP rules are expected to impact OEMs and the vehicles companies select for their employees. And then there’s technology that’s turning mobility upside down in unprecedented ways.

Fleet Europe, the leading international magazine for fleet and mobility management, will reward the most innovative among the mobility suppliers at the Fleet Europe Awards ceremony on the 28 November 2018 in Barcelona, Spain. The

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International Car Remarketing Award will be presented during the Remarketing Dinner on the 27 November.

That is why Fleet Europe is once again looking to select the best of the best in the following categories:

1 International Fleet Industry Award: The jury of the International Fleet Industry Award will be particularly attentive to the impact of innovation, efficiency and TCO on international fleet management as they select the tool, product or service to be granted this award.

The ideal strategy for your fleet Optimize your fleet with Fleet Logistics according to your individual strategic requirements – with the full support of our three core fields: Consulting Operational fleet management Tools

Our fleet services cover the whole life cycle of a vehicle. Whether you need a Green Fleet solution or a complete fleet management solution – we are here for you, in more than 50 countries.

We look forward to hearing from you!

Contact us: Tel.: +49 89 638982-0 E-Mail: info@fleetlogistics.com

We drive our industry

Winner 2017: Tesla

FLEET EUROPE #98

FLEET EUROPE #97

www.fleetlogistics.com

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Fleet Europe Awards: the President’s view Steven Schoefs @StevenSchoefs

Alessandro Pigazzi – Director of the International Business Office at Arval – has accepted presidency of the Fleet Europe Awards jury that will select the best practices of fleet managers.

The Award ceremony will take place on 28 November in Barcelona. A good opportunity to find out what the new Jury President feels about this unique moment in the fleet calendar.

First of all, how do you see the role of President of the Fleet Europe Awards jury?

The Fleet Europe Awards have a valuable place in our industry, and for me the presidency is an honour and an exciting prospect. In fact this year is particularly crucial: diesel shift, CSR ambitions, coming into force of The new testing procedures, embracing new mobility...

this is a real moment for analysing the maturity of the fleet management industry. The Fleet Europe Forum and Awards represents a moment to step back and look at how we are performing as an industry.

Do you as President have a specific message for fleet managers?

Firstly, don’t hesitate to take part. A great time for benchmarking yourself against your peers, for sharing ideas and confronting experts. And of course this is an opportunity to look forward at the challenges to come and how these can be integrated in your long-term fleet strategy.

The process for candidates is somewhat time-consuming of course…

The investment in time is not just for the competition, but for the fleet managers themselves, an analysis of their fleet strategy. I would also advise them to concentrate on the essence of what they want to say, the strong points. The jury will of course help them in any way possible.

And if anyone questions the neutrality of the jury?

Alessandro PIGAZZI of Arval is the 2018 Jury President for the Fleet Europe Awards for Fleet Managers.

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I have participated several times and I can assure them that it is absolutely neutral, going through each dossier step by step. This is a jury made up of experts from our industry. And the sheer size of

the jury guarantees a balance in judgements and in results.

What would you like to see in candidates?

The more concrete the dossier, the better.

And point out the real successes, the KPIs, don’t simply leave them in the graphics. Along with this, emphasise the end result, the gains for the company and the end benefits for the drivers.

It could be you!

On 28 November, in Barcelona, The Fleet Europe Awards Ceremony will celebrate the best of the best in European Fleet and Mobility Management.

These awards are split into 5 categories: ➊ GLOBAL FLEET MANAGER OF THE YEAR ➋ EUROPEAN FLEET MANAGER OF THE YEAR ➌ INTERNATIONAL FLEET SAFETY AWARD ➍ INTERNATIONAL FLEET MOBILITY AWARD ➎ INTERNATIONAL FLEET INNOVATION AWARD During the same night, we will also celebrate a new inductee to the International Fleet Hall of Fame and Smart Mobility Management will crown a new start-up of the year. Moreover, the newest services of vehicle fleet suppliers will be rewarded with the International Fleet Industry Award and the International Car Remarketing Award will be handed out to a solution that brings efficiency in the vehicle remarketing profession.

APPLY FOR THE FLEET EUROPE AWARDS 2018 The 2018 Fleet Europe Awards for Fleet Managers will accept candidacies for following categories: • Global Fleet Manager of the Year • European Fleet Manager of the Year • International Fleet Safety Award • International Fleet Mobility Award Candidates can be individual fleet professionals or entire fleet teams.

For terms and conditions and how to apply, please visit the dedicated website forum.fleeteurope.com/ awards.

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Want to apply? visit forum.fleeteurope.com

MANAGEMENT

MANAGEMENT

Becoming gradually and ‘naturally’ greener

What are your criteria for selecting passenger cars?

We work on a full TCO model, which means we are looking, in general terms, for the lowest cost. Nevertheless, the cars have to respond to the expectations of most of the drivers. The aim is to have more for less money, while taking fiscal issues into account, along with the efficiency of the engine.

Do you have a CO2 emissions policy?

Tim Harrup

At gases supplier Air Liquide, Jean-Louis Roppe is Head of Indirect Procurement Benelux and Manager Indirect Procurement for the North West Europe Cluster (Benelux, UK, Nordics). His approach to vehicle selection is pragmatic.

Jean-Louis Roppe is responsible for managing around a 550 vehicles in the Benelux, split evenly between passenger cars and LCVs. Newly appointed to be Director of the European call for tenders programme for long term car rental too, this adds 7,000 more vehicles and leads to a turnover of over 100 million Euros.

How have you selected your OEMs?

Jean-Louis ROPPE, Head of Indirect Procurement Benelux Manager Indirect Procurement for the North West Europe Cluster

We have a European call for tender every three years – a company such as Air Liquide cannot operate for longer than this without a new call for tender – and Renault won the 2015 edition, so they currently have an exclusive contract for most countries, in particular our home country of France.

In the Benelux, Germany, Switzerland, Austria and some others, there are other brands too including BMW, Mercedes and Volvo. Where LCVs are concerned, our vehicles are exclusively Renault, in all European countries. ‘Renault’ also includes its partner Nissan.

Does this LCV exclusivity cause any problems?

It has been necessary in the past to ask Renault LCV for derogation in certain cases – in particular for our ‘Health’ business line – because their vehicle did not correspond to our exact specification for this usage. These specifications are clearly laid out in our group policy, for transporting gas, for example.

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How do you manage the countries?

I have externalised fleet management for the Benelux to an outside company (Dragintra Fleet Services). The other countries are managed locally. It is my intention to analyse the possibility of externalising fleet management – ideally to a single company – in the other countries too.

Do you have specific interior fit-out for the vans, and does this cause any issues?

Not as such, because as we work on a full TCO model, we are auto-regulating where CO2 is concerned, and indeed emissions have come down by 14 points in two years.

In reality, most car drivers like to have a well-equipped car, and so to remain within their budgets they tend to opt for smaller, more economic engines and use the spare cash for options. So the reduction in CO2 emissions come down ‘naturally’.

And the choice of powertrains?

We are in fact moving towards making the fleet greener, so even for vans, which are traditionally diesel, we are moving

We do have a fit-out, which is relatively standard for the industrial usage, though more complicated for medical use. We have just placed a large order for LCVs and we are going to have them fitted out. This will be done by specialist companies rather than by the manufacturer. We always try to recover the interior fit-out from a vehicle leaving the fleet, and re-use it in a new vehicle. This is not always possible if we change brands, of course. But the fit-out is simple in most cases, so re-use is often possible.

towards petrol for certain uses – those vehicles which cover very little mileage.

For example, on the Antwerp BASF site we have vans which only drive some 10 km a day. We had problems with the diesel vans here, because they do not like such small mileage – so we have moved to petrol.

This leads on to hybrids, electric…

We have ordered an electric vehicle for a site near Liège, because here the van drives a maximum of 100 km a day for two days of the week. This is a Nissan e-NV 200 - 40kWh. We have found that some electric vans do not have the range capacity that is theoretically claimed, especially if carrying a load. And on the motorway they seem to consume the power very rapidly. They are, however, very agreeable to drive.

For hybrids, our criterion is a maximum of 20,000 km per year, and not for sales functions. Over this mileage the petrol cost becomes too high, and using them therefore negatively impacts on the TCO.

We have some hybrid passenger cars and we have ordered some full electric.

The company has taken the decision to get rid of all diesel vehicles by 2025 and to continually make the fleet greener.

It is now three years since your last call for tenders…

Yes, and I have just launched a new RFI whose aim is to select those manufacturers which will be invited to tender. It is not certain that current suppliers will win again, of course.

Will your call for tender of this year include alternative powertrains?

Yes, but the timing is really not ideal. This is indeed our year for the call, but with so many new electric models and other alternative technologies announced from a number of OEMs, we are not going to be able to see the full picture straight away.

But as this domain is moving so quickly anyway, this is an inherent problem which will probably be with us for some years.

www.internationalfleet.com

International Fleet

How do you finance the vehicles?

We are under full service leasing except in Belgium, where I have extracted insurance, road-side assistance and the fuel card from the leasing contract. I have found it to be financially advantageous, for example, to contract with Total for the fuel card, and to self-insure our ‘own damage’. We have two leasing companies in the Benelux (ALD and Alphabet), and a total of four when the other countries are added in.

So the leasing company carries the risk for the RVs of your fitted-out vehicles too…

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 international fleet solutions can be found at www.internationalfleet.com

This is the case, but contractually, the vehicle has to be handed back in the same condition as that in which it was delivered, so the interior fit-out has to be removed.

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BUSINESS

BUSINESS

Aiming for 2 million vehicles in 2020 @StevenSchoefs

It's been a year since ALD Automotive went public. And it's been a good year, says Mike Masterson, reviewing the annual figures for 2017 and looking forward to even brighter days.

“Less than four years ago, we marked our one-millionth car. This March, we passed the 1.5-million mark. That's because our fleet growth is accelerating, from about 7% per annum up to 2011, to 9.8% last year. So it's not just achievable, it's something we have already delivered. That's why ALD has risen from being a mid-range player to leader in Europe”.

Mike MASTERSON, Chief Executive Officer ALD Automotive

ALD'S MIKE MASTERSON LOOKS FORWARD TO GROWTH IN A VARIETY OF GEOGRAPHIES AND SEGMENTS

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“As for individual segments, our corporate business continues to grow strongly: by 7% last year. The penetration of service leasing in the corporate sector is increasing, so there is plenty of growth potential”.

“Nearly 20 years ago, we were a first mover in partnerships, and we’ve developed a lot of expertise in this area, creating win-wins with our partners – banks, manufacturers, mobility providers, insurers, electricity providers – both financially, and in service delivery. That’s why our partnership business – a maturing segment, with huge coverage – still managed to grow by 14% last year. In private lease, we experienced

“I would think that this helps to balance the portfolio. As does the fact that we're increasingly reselling to individuals, exporting more – 20% and rising – and also developing private lease, some of it as second lease of used vehicles.

How important is the market of second leases for ALD? “It's about channels, really. One important channel are our big corporate fleets, where we've been offering both new and used cars within the same car policy. We're currently offering this with selected customers in Western Europe, and it's proving very popular. Obviously, there's a big market opportunity to offer this product to non-corporate drivers of a given customer company, and we're already testing that in a number of cases”.

Steven Schoefs

At the presentation of your annual report, you said ALD aims to add another 8 to 10% to its fleet size this year. Is that really achievable?

As the mix of diesel and petrol cars and their alternatives varies per country, does that give you flexibility in terms of remarketing?

40% growth last year. So that’s also clearly an opportunity”.

We feel optimistic about the business in the upcoming years and we're comfortable with our 8 to 10% annual growth prediction. We're aiming for 2 million vehicles in 2020 and 3 million in 2025 of which 1 million will be in B2C".

How important is the international angle in your corporate segment?

“Very important, and still growing. On the one hand there are corporates that add markets and outgrow local arrangements.

And on the other hand there is a trend towards sole supply – often a partnership for up to 30,000 cars across 15 to 20 countries.

Because of our scale, we can handle that”.

Diesel sales are under pressure in Europe. Will the share of diesels in your fleet drop?

“The strength of this industry is the heavy rotation of our fleets. By the end of 2019, we'll only have Euro 6 diesels. But ultimately, it's about finding the best solution for the customer, based on TCO and what the driver needs. So we're not betting for or against diesel”.

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Another thing on everyone's minds are the possible effects of WLTP. What do you think the impact of the new European vehicle test procedures will be?

“Difficult to say, since the rules in each country in terms of the impact of WLTP on registration tax are not yet very clear, even at this late stage. But overall we're hopeful WLTP will produce credible CO2 figures, which will benefit the entire industry. It's just that the transition will be difficult, particularly between coming September and September next year, when there will in effect be two CO2 ratings for each model”.

Will WLTP speed up the transition to alternative powertrains in fleets?

“Yes, if linked to a CO2-based scrappage plan. On its own: I'm not so sure”.

Is ALD actively pushing for the introduction of EVs in customer fleets?

“Our EV segment is growing rapidly. We've had positive experiences with Residual Values. The main holdup is delivery time on the product itself. And if you can't get the product, you can't do much”.

ALD today has a presence in 43 countries. Where's next?

year, when we took over BBVA Autorenting.

That leverages our scale and generates synergies – for both parties. Two: growing our country coverage, as we did last year by acquiring Merrion Fleet in Ireland. Now we're looking to get a few things done in South America, both in existing markets and new ones. We're in South America to be a leader, in all markets. So we're looking for opportunities in markets where we're not in the Top 2 or 3, and in new countries.

Also in Asia and North Africa, by the way”.

This June marks the first anniversary of your IPO. A reason to celebrate?

“Well, we're really in a sweet spot with our structure at the moment. We still have the support of our main shareholder (Société Générale – ed.), we have bond programmes, securitisations, we have the Group funding... Our competitiveness has been hugely enhanced by the IPO. We also think it brings us closer to the market and to investors. But the fundamentals of our corporate strategy and culture remain the same. The 9.7% growth we had last year is testament to that”.

9,7%

OVERALL GROWTH IN 2017

7%

CORPORATE BUSINESS GROWTH IN 2017

Other players may also be interested in an IPO. Will that become unavoidable in the industry?

“It will become a trend but not a necessity, I think. We've been the first largescale leasing company to go public, and as such we've provided an education to the investor community. Anyone who comes after us will have an easier job because of us. If others now follow, that would further improve the visibility of the leasing product”.

40%

Final question on mobility: BMW and Daimler recently announced that they would join forces on mobility services. Do you foresee that over time they could become a competitor for fleet management solutions?

TARGET:

PRIVATE LEASE GROWTH IN 2017

3 MILLION CARS IN 2025

“Yes. But we're looking at a huge market.

We currently have about 16% of the corporate full service leasing market. If we had a million private leases by 2025, we'd still only have 2% of that market. So there’s plenty of room. And there will still be a need for someone to manage all those vehicles. That's a huge opportunity for us, and it outweighs the competitive pressure”.

“We're looking at two scenarios. One: bolt-on acquisitions, as we did in Spain last

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INNOVATION

SAVE THE DATE 27 / 28 NOVEMBER

barcelona SPAIN

For more information, please visit forum.fleeteurope.com

Alison Pittaway

The summit is ‘the event’ of the year where we have the best opportunity to meet with our partners, network with our peers and join plenary sessions to learn about the market. This is a really high ROI event and I’m very happy to see it growing every year.

“

“

Peter Szelenyi of Novartis European Fleet Manager of the Year 2017

Driving future mobility on 5G, but we're not there yet According to a report from Counterpoint Research, 5G equipped vehicles will be commonplace by 2022 – but we aren’t there yet.

While 3G brought web browsing and data communication to the smartphone, 4G delivered greater capacity and higher speed. 5G will provide wireless connectivity for a range of new applications such as wearables, smart homes, traffic safety and control, critical infrastructure, industrial processes and ultra-high-speed media delivery.

Commercialisation of 5G is scheduled for 2020. Telecoms providers are already showcasing automotive applications to demonstrate capabilities, such as low latency.

Ericsson says radio access technology is a

fundamental component of 5G, required to support mission-critical applications, such as autonomous vehicles.

5G capability is a prerequisite of vehicle-to-everything (V2X) communication, allowing cars to communicate with the cloud, each other, traffic lights, road signs and smart city systems. 5G technology, plus the new infrastructure it enables through a combination of local and wide area connection, is what will enable autonomous vehicles to drive safely, navigate and even be operated remotely if necessary.

5G Automotive Association- 5GAA-created in September 2016.

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DOSSIER

DOSSIER

Autonomy that is built into cars today is programmed to require minimal connection to the internet in order to function. Maps and algorithms are preloaded, which means network speed is not a limiting factor. However, it will be as IoT, V2X and smart city technology become ubiquitous.

For self-driving cars to safely navigate the streets, they need to communicate with one another, traffic signals and passengers. Cars equipped with 5G-powered mapping will see and react to their surroundings instantaneously and vehicles will alert other vehicles to accidents ahead, thus lessening the possibility of pile-ups.

SMARTER, SAFER CITIES By combining cloud technology with real-time video and analytics, cities will better manage everything from the electric grid to traffic patterns. Intelligent streetlights could direct cars to empty parking spaces, for example, and cities could track and reduce energy usage,

Cars equipped with 5G-powered mapping will see and react to their surroundings instantaneously and vehicles will alert other vehicles to accidents ahead.

DEMONSTRATING LOW LATENCY In partnership with Telefonica, Ericsson demonstrated the low-latency of 5G at Mobile World Congress in Barcelona 2017 using a remotely driven car located on a race track 70km from the show.

270%

GROWTH OF THE CONNECTED CAR MARKET BETWEEN 2018 AND 2022

Counterpoint Research predicts that between 2018 and 2022 more than 125 million cars with in-built cellular radios will hit the roads. That statistic represents a 270% growth in the connected car market.

In 2016 car manufacturers and technology mobile players created the 5G Automotive Association to develop solutions for autonomous vehicles using connected technologies, such as Cellular Vehicle to Everything (C-V2X) communication.

The association, initially formed by global vendors Ericsson, Huawei, Nokia and Qualcomm, technology firm Intel and automotive giants Audi, BMW and Daimler, aims to provide an alternative to rivals such as Apple, Google, Lyft, and Uber, who are working to launch driverless mobility services in the next three years.

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HOW CAN FLEET MANAGERS LEVERAGE THE POTENTIAL OF 5G? Built-in cellular can help boost navigation and provide entertainment and infotainment options, in-car wifi, remote diagnostics and automatic software updates alongside connections to the emergency services. It also helps enhance fleet management systems and facilitate cost cutting, improved safety and compliance.

The EU’s eCall mandate, which requires all new cars to have the capability to dial Europe’s universal 112 emergency number automatically after an accident, has helped drive the connected market in Europe.

Car rental company AVIS plans to make its whole global fleet (500,000 vehicles) connected by 2020, citing benefits such as agent-less car pick up.

AUTONOMOUS DRIVING Connected vehicles will facilitate the next-generation of mobility. 5G is necessary to power self-driving cars. For autonomous vehicles to smoothly travel through a city, it has to rely on low latency that enables it to accurately “see” its surroundings.

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improving air quality and reducing pollution.

SMART TRAFFIC MANAGEMENT Smart traffic lights will connect with cars on the road using 5G to enable improved traffic flow. Carnegie Melon University and Pittsburgh in the USA tested the use of smart traffic lights resulting in a 40% reduction in vehicle wait time, 26% faster commute overall and 21% decrease in emissions.

SMART SENSORS Cars are already equipped with a number of sensors. Lidar sensors send out a pulse of light and measure the reflective return to determine the distance between objects. This generates a precise 3D map of the vehicle’s surroundings.

5G IN FLEET MANAGEMENT The primary bearing the impact of 5G will have on fleet management is in monitoring vehicle performance and driver behaviour and thus managing in-life costs and driver safety.

THE POTENTIAL TO RETROFIT 5G IN OLDER CARS It may be possible to retrofit older fleet vehicles in the future to enable some 5G information and connection services but not autonomous driving. Ford’s recent announcement of its SmartLink service demonstrates the possibility and commercial value of equipping older vehicles with more modern connectivity.

5G relies on wireless spectrum, or airwaves, for its speed and power.

Governments manage spectrum allocation, and there simply aren’t enough high-powered spectrum allocations to deliver 5G in every country.

Without the necessary bandwidth, 5G’s potential could be compromised so governments need to allocate sufficient spectrum as soon as possible, so that industry can begin new network deployment and make universal 5G-powered services a reality.

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FLEET EUROPE #98

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INNOVATION

INNOVATION

Increasing appetite for pay-per-use insurance Alison Pittaway

Pay-per-use insurance goes very well with the changing consumer behaviour in mobility: people want to pay for what they are using. The solution gains attractiveness and seems a perfect fit for those employees who need comprehensive cover but only drive a little.

Car insurance has changed little in 50 years.

Now, a raft of start-up companies is offering a range of options that keep pace with the innovations in car technology, such as telematics integration, to offer great choice and flexibility for policy holders.

There’s no doubt insurance needs to change in line with evolving mobility requirements, such as car-sharing and short-term rental schemes. More flexibility is needed in terms of coverage (what is covered and what isn’t) and policy duration - including adjustable short-term, temporary and pay-as-you-go (PAYG) or pay-as-youdrive (PAYD) insurance.

PAYG is primarily aimed at young people, typically those under the age of 25, who would otherwise be priced out of the insurance market. However, pay-per-use - or pay-how-you-go (PHYG) (as referred to by InsureTheBox.com) - goes one step further.

WHAT IS PAY-PER-USE INSURANCE? Pay-per-use insurance is aimed at drivers who typically journey less than the average 7,500 miles per annum or who drive mostly on weekends or for a few short journeys a year.

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In the UK, start-up company By Miles launched the country’s first pay-per-mile car insurance policy in 2017. It is specifically aimed at low-mileage drivers. The company records every journey using a matchbox-sized telematics device plugged into the on-board diagnostics port under the steering wheel. Data from it logs every mile driven and at what time of day and automatically sends it back to the system.

Drivers can stay informed of the cost of each trip through a smartphone app and are billed at the end of each month.

InsureTheBox claims PAYG is not cost effective for users if they only use their vehicle once or twice a week. As with PAYG, their PHYG insurance policy relies on a black box installed system so that the number of miles driven can be monitored. It’s a milesbased policy which offers an even lower cost alternative for low-mileage drivers.

In InsureTheBox’s case, the black box collects additional driving data such as time of day, type of roads and how the car is being driven (how the brakes and accelerator are used). This data is available to both insurer and policy holder through the company’s customer portal. After an initial period of information gathering, the data gets turned into Bonus Miles that rewards good driving. Drivers can earn up to 100 extra miles a month for safe driving.

THE BENEFITS Once the telematics black box is installed, it provides a springboard for additional valueadds, such as engine and performance monitoring and fault code diagnostics.

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Pay-per-use insurance answers the need for solutions based on individual lifestyles and behaviours. The concept allows drivers to access the insurance they need when they need it.

But the primary benefit often doesn’t arrive until policy renewal time, which is usually the standard twelve month period. By that time, the insurer has acquired an accurate, data-based picture of the driver and their driving habits and will then (so they claim) be able to offer truly tailor-made car insurance for the following year.

SAFER DRIVING Tests have shown that drivers modify their behaviour positively once they know they are being observed.

Furthermore, after an initial period, they begin to see the benefits of better, safer, calmer driving. So, any insurance policy based around telematics integration is going to yield positive results in this respect, which is a strong point for fleets. As to whether or not it will deliver the huge premium cost savings promised, well that’s debatable - some drivers have won where others have lost, which is not good for fleets.

That said, there are many additional benefits fleets can derive from telematics data (such as accurate mileage, fuel

FLEET EUROPE #98

efficiency, driver behaviour), so the technology itself is worth the investment in that respect – although perhaps not if it’s tied to a pay-per-use insurance policy.

CAN PAY-PER-USE WORK FOR FLEETS? Fleet-owners or managers must deploy stringent cost control and financial management so the biggest disadvantage of pay-per-use insurance for fleets is the unpredictability of the cost. Because it is use-based, it’s extremely difficult to determine how much the cost will be at the end of each month.

Secondly, most policies are based on an estimated number of miles and the cost is tied to that. Fleet managers may be tempted to underestimate this number to achieve a lower cost and end up paying excess mileage charges which are more expensive.

law states that vehicles must have minimum insurance cover (3rd party) even if they are parked up. The only exception is if they are parked on private land and are registered with the vehicle licence authority as off the road (in the UK this is referred to as a SORN - Statutory off Road Notification).

This means that, in addition to the cost of pay-per-use insurance, drivers or fleet owners considering such policies will have to factor in the cost of a basic form of minimum cover that means they’re legally compliant when vehicles are not being driven.

For fleets, pay-per-use insurance can be unnecessarily restrictive and costly. As it is aimed at low-mileage driving, unless a vehicle spends over 80% of its time parked up, which most fleet vehicles don’t, it will not be a cost-effective option.

ARE THESE POLICIES FULLY LEGAL? There is another thing to bear in mind and that is that some pay-per-use policies do not cover vehicle owners’ full statutory legal requirements in EU countries. EU

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EXPERT

Low Emission Zones, Low Overlap Fien Van den Steen

Low Emission Zones (LEZ) are on the rise. From the Ultra LEZ in London (2019) to the non-existence of LEZs in many eastern European cities, the variety is remarkable.

ONE DIRECTIVE TO RULE THEM ALL The variety of LEZs is remarkable considering the overall European Air Quality Directive of 2008. The implementation resulted in a variety of national and even local regulations. Several member states do not even comply with the Directive, which forced cities to set up own air quality rules, for instance by introducing LEZs.

Congested street in London, 2017.

200 DIFFERENT LEZS Europe counts 200 active or planned LEZs, with all a unique set of norms regarding the allowed cars, however Euro 6 diesel cars are everywhere allowed. On top of that, every city has its own policy regarding exemptions and/or retrofitted cars. Moreover, while some LEZs apply for all vehicles and at all times, some LEZs only apply for specific categories of vehicles, and/or at specific times. The same variety is seen in the affected zone, and in the controlling and enforcing mechanisms.

Transport & Environment (T&E) analysed that despite the absence of a specific EU-wide framework for LEZs, some countries do have a national framework, while other countries hinder cities in their local air quality policy, which sometimes results in juridical matters, such as in Germany, where cities recently obtained the right to ban diesel cars, except for Euro 6.

BEYOND LEZ Since diesel-powered vehicles are high emitters of nitrogen oxides, together with the failure of the automotive sector to address this problem, additionally several cities are about to ban diesels altogether. The city of London will even take all its measures together and create an Ultra LEZ in 2019.

In a nutshell, various European cities are taking different roads to reach the same goal: improve air quality. So before getting on the road, make sure your vehicle applies with the specific regulations of the particular city.

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FOR INTERNATIONAL FLEET & MOBILITY LEADERS

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FLEET EUROPE #98

SMARTMOBILITY

Getting ride hailing on the right track Tim Harrup

Ride hailing in a corporate environment is a growing mobility option. But it brings with it a number of questions to be answered. There is not yet an ‘accepted’ approach but the advantages of ride hailing surpass the obstacles.

Some very experienced fleet and mobility managers outlined the situation. Firstly, the use of a ‘disruptive road transportation supplier’ means the company can track both the car and the driver, and the passenger.

To the question of whether the use of these services is authorised, one response was ‘we allow it but don’t actively encourage it’. In another case: ‘Everything is allowed based on a common sense rule.’

Where the issue of accidents is concerned, the feeling is that this can be handled more efficiently than in case of traditional road transport (taxi) because you have much more visibility on data and facts. It was stated that in the area of Corporate Social Responsibility, two of the major ride-hailing suppliers – Lyft and Uber – were able to demonstrate better vetting than what would be provided by taxi companies.

The opinion of one of our experts is that that ride hailing companies like Uber, MyTaxi (Germany) or Taxi 19123 (Warsaw) are actually safer than just taking a taxi from the side of the road. This is because you have to register for the service, both for the driver and the customer.

NO FORMAL POLICY As the whole domain of ride hailing is relatively new, companies do not yet appear to

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have formalised the policy in a major way.

It was stated in one case that employees are allowed to use the services although it has been decided not to conclude a corporate agreement with ride-hailing companies. Employees are thus free to use them as they use any other taxi company. In another case, licensed taxi services are preferred, with ride share as an alternative to licensed taxis. However, as the maturity of the service varies so significantly between cities and countries, the traveller remains responsible for assessing the safety of such a service. Travel policies tend to cover when a taxi expense will be reimbursed, but do not state which taxis to use.

SAFETY MATTERS Speaking from experience gained in a multi-company context by a recognised expert, ride hailing should be safer in cases of accidents because not only do they need to adhere to local/city taxi regulations but in the case of Uber, it also restricts the age of the vehicle, and undertakes (supposedly) driver licence and criminal checks.

So in case of an accident, the vehicle should be structurally safer and have had the appropriate personal accident insurance and other regulatory checks made which have been verified by the ridehailing service.

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Ease of use and contract transparency are two major benefits of ride-hailing, also in a corporate environment.

In various cases the approach is that employees are encouraged to use the safest and most economical mode of transportation. Companies almost invariably insure their employees on business trips anyway, and so the issue of mishaps is covered in a general manner. In some countries, we were told, the ride-sharing companies compare favourably to getting in a taxi from a rank where you have many stories of personal safety, such as being kidnapped for your wallet and luggage.

THINGS TO AVOID As with any corporate issue, the advantages are sometimes balanced by disadvantages. One expert old us that, particularly in countries/cities which are considered potentially dangerous, if the vehicle looks ‘dodgy’, don’t use it and get another one. Use your common sense and be wary. And don’t rely on just one service. Even the most widespread of ride-hailing companies are not in every country or every city.

Clients can indeed contribute to safety in this environment, by providing real-time feed-back on the behaviour of the driver through rating them after each ride.

However unpleasant it is to have to say this, the advice is that if you are a woman, take extra precautions with regard to your personal safety and tell people where you are going.

SEEKING COST-EFFICIENCY One of the biggest advantages of ride hailing is that there is a consolidated statement at the end of the month where you can see all the rides of each individual traveller. Another benefit of using some of these services is that the expense goes immediately on your corporate card and you have a receipt for the trip. So it’s an accurate audit for your expense report.

What’s more, in most cases they are cheaper than traditional taxi companies.

The major ride-hailing suppliers also have quite a large footprint so the client company can consolidate and make this spend category visible.

FLEET EUROPE #97

undertake, it is advisable to take the time to check the identity credentials of the car and the driver in case of problems.

In conclusion, this is an emerging domain, and at the moment the issue of employee safety is higher on the corporate agenda than any ideological concerns. ‘Common sense’, one of our experts said, and this is probably where we are right now.

On the practical side too, and this time adding to the tasks the traveller has to

WITH MANY THANKS TO… • Andy Sacha (car fleet guru) • Adriana Holban and Reyes Gonzalez Jannon (Heineken) • Geert Behets (UCB) • Montse Empez Vidal (Applus) • Peter Szelenyi (Novartis) Our experts are well-known in the industry, and among them they have a number of Fleet Europe Awards sitting on their desks.

55

SMARTMOBILITY

The planet of the apps Benjamin Uyttebroeck @uytteb

APPY PARKING Up to 30% of traffic in congested cities is made up of motorists looking for a parking space. This is especially true in cities where on-street parking is badly managed. That’s something the Appy Parking team wants to do something about. Once downloaded on a smartphone, the app tells motorists where they can find a parking space. It includes a payment option. The app’s Parking API can be integrated into any fleet management or vehicle OEM system to tell vehicles when and where they can park. It can return both spatial mapping (zones, polygons and points of interest) or text-based data that can be easily embedded into existing PDAs or shown as part of the driver’ itinerary.

At the moment, the app is only available in 11 large British cities but expansion to other countries is likely.

The mobility industry would not have evolved the way it has if it wasn’t for technology changing our modes of transport and the way we manage them. Here’s a list of three new apps that can make life easier for motorists and cyclists.

Appy Parking lets you find and pay available parking spaces.

VELO-PASS Traxio, the Belgian mobility sector federation, has launched an app for cyclists.

Velo-Pass is a system that allows cyclists to register their bicycle in a national database, making it easier for bikes to be returned to their rightful owner if they get stolen.

Participating bike shops can stick a tamperproof QR code to the bike so it can easily be identified. The system is voluntary but large numbers of local authorities and universities are participating in its promotion.

Other services can be added to the system, such as owner information, charging details for electric bikes and many other IoT applications. It is a Belgian system but adoption of similar systems in other countries seems likely.

Yespark is an app that helps motorists find a place to park in underground car parks.

YESPARK Finding a parking space in cities is no easy feat. At the same time, owners of large residential buildings with underground car parks notice that their car parks are largely empty, sometimes for many years. Why not combine both facts? That’s precisely what the French app Yespark does. It is an app where car owners and owners of underground car parks meet.

On average, Yespark parking

56

places are 30% cheaper than conventional car parks, which makes it attractive for motorists. At the same time, it’s an extra revenue stream for residential buildings.

Velo-Pass is available for iOS devices and Android.

At the moment, the service is only available in France in over 300 municipalities through an iOS or an Android app. The company is looking at expansion to Germany and the UK. Velo-Pass is an app to register you bicycle and deter thieves.

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FLEET EUROPE #98

57

ANALYSIS

ANALYSIS

Rental companies ready for mobility revolution Jonathan Manning

Expertise in short-term hire, flexible fleets and investment in innovative technologies has put rental companies in pole position to capitalise on Mobility as a Service.

The development of Mobility as a Service has prompted daily rental companies to invest in a flurry of new transport ideas. In these early days of a travel revolution, it’s premature to pick the winning concepts, but these alternatives to fixed car ownership are already challenging the business models of short term hire companies, including the types of vehicles they run, where they are stationed, and how they synchronise with other modes of transport.

NEW APPROACHES TO MOBILITY Caroline Parot, Chief Executive Officer of Europcar Group, said the company, “is pursuing and accelerating its transformation as a global provider of mobility services. Our aim is to become the preferred mobility service company for our customers, offering an attractive alternative to vehicle ownership with a wide range of services ranging from vehicle rentals to chauffeur services, as well as vehicle sharing and peer-to-peer rental services.”

Europcar anticipates double-digit growth prospects in the mobility ecosystem by 2025, and has been at the forefront of incubating new ideas at its Europcar Lab; acquiring the digital car-sharing company Ubeeqo, which operates in eight major European cities; buying E-Car, the electric car club; and taking a stake in peer-to-peer car-sharing enterprise, SnappCar.

Gary SMITH, managing director of Europcar UK Group

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“We are investing in businesses that are already exploring and developing new approaches to new mobility,” said Gary Smith, Managing Director of Europcar UK Group.

“The Europcar Lab studies mobility market usages as well as identifying other businesses that could complement the core Europcar service. By recognising the need for business travellers to have more flexibility when it comes to choosing the right transport solution for each journey, our customers can access a suite of different options, including car rental by the hour, the day, the week, or offering chauffeur service, car sharing for businesses including carpooling, and peer-to-peer car sharing for consumers.”

Internationally, Europcar has launched Global Driver Services, which allows our customers to book a ‘chauffeur’ for the first and last kilometres of each business trip, and introduced Drive & Share, a merger of car hire and sharing, to Germany and Denmark - customers have access to a long term rental car for their own needs, but on days when they don’t require a car they can share it on SnappCar and generate revenue.

This type of seamless link with other transport providers will become more important as customers expect their travel to be as swift and slick as the apps they use to arrange it.

INTEGRATING MODES OF TRANSPORT Enterprise, a partner of the Whim MaaS app in the UK, is, “expanding our network to complement other MaaS providers, for example, by placing rental cars at rail hubs across Europe and developing broader mobility solutions for our corporate customers,” said Ben Lawson, Head of strategy and product development, UK & Ireland at Enterprise Rent-A-Car.

FLEET EUROPE #98

“Our business model was founded on delivering mobility where our customers live and work. This means that we can be close to other forms of mobility as MaaS evolves, so we see MaaS as an opportunity for Enterprise to deliver more streamlined on-demand mobility, through apps and other technology-driven services.”

The flexibility, convenience and accessibility of short term rental means car hire will remain a vital part of any multi-modal mass transport solution, including as a standalone option for business travel, argues Lawson, although he also sees it, “increasingly featuring as part of multi-modal journeys, such as employees taking a train and then picking up a car for the final part of the trip.”

Securing a role in this future involves not only an investment in network locations, but also in IT solutions.

“We have booking tools to ensure the choices employees make are consistent with corporate travel policy and are the best choice within a defined framework,” said Lawson.

ADJUSTING FLEETS FOR MOBILITY The move to become mixed mobility providers is also leading rental companies to adjust their own fleet structures. Rather than operate independent fleets for short term hire, long term hire and car clubs, as well as taxi or chauffeur drive services, rental companies are wrestling with how to achieve the operational efficiencies of relying on a single fleet to supply their different mobility options.

Vinzenz Pflanz, Senior Vice President Group Sales - Sixt SE, said: “The next step of evolution is that one car fits all purposes.”

The challenge lies in reconciling the fleets of small, often electric cars of urban car clubs with the larger petrol or diesel powered cars offered at airports.

FLEET EUROPE #98

On the other hand, the flexibility of a multi-vehicle offering is one of the trump cards of a mobility solution. Drawing on personal experience, Pflanz highlighted a recent week when his use of Sixt Unlimited, a mobility scheme where the user is simply guaranteed access to a car wherever they are in the world for a fixed monthly budget, proved both practical and cost efficient.

“I rented an Opel Corsa for the 20km drive to the office, hired a van over the weekend to shift some stuff, and then had a VW Sharan for a family birthday,” he said. The result was the right car for the right journey, and a net saving of €605 in cost and tax, compared to running a BMW X5 4.0 as a company car.

RIGHT CARS IN THE RIGHT PLACE And it’s not simply the type of car available to rent that is at issue. So, too, is its location.

In the world of on-demand, rental companies will have to divorce themselves from their traditional structure of fixed locations.

Zipcar, a subsidiary of Avis Budget, this year launched a ‘floating’ car-share network across London, where users do not have to return cars to specific parking bays.

Vinzenz PFLANZ, Senior Vice President Group Sales - Sixt SE

Jonathan Hampson, general manager for Zipcar UK, said: "Car clubs traditionally operate from dedicated fixed bays, but what Zipcar Flex enables is for more Londoners to make smarter transport decisions and experience how much more convenient and cost-effective car sharing is compared to ownership."

Individually, each of these new products and services represents a compelling offer for business travellers. Fleet managers, however, will have the responsibility of determining which combination of services can provide a viable, cost effective alternative to a company car for different employees, while HR executives will have to gauge the employee appeal of a package of mobility solutions compared to the long established recruitment and retention appeal of a company car.

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ANALYSIS

ANALYSIS

Convenience at the core of car rental Jonathan Manning

Convenience lies at the heart of a suite of new products and services from Europe’s major rental companies.

Convenience over reservations, access to vehicles, benefits such as satellite navigation and wifi, and even the opportunity to offset the carbon emissions of the vehicle rental are all now available to fleets and their drivers.

The development of smartphone technology has changed the short-term rental landscape, with hire firms creating apps that allow drivers to control their bookings with the tap of a screen.

Want to change a reservation, choose a different car, find a courtesy bus at an airport or simply know the location of the nearest car park or filling station? The Avis mobile app holds the answers. Need a business receipt to claim expenses? The app does that, too.

Arthur Orduña, chief innovation officer, Avis Budget Group, said: “Our vision is to create an experience where all aspects of the customers' rental — everything they need, want and could possibly ask for — is available at the touch of a button on the Avis app.”

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Keyless entry to vehicles is one area for development, with Avis equipping a trial fleet of cars with Continental’s key-as-aservice technology.

"In the evolving world of shared mobility, smartphones are fast becoming the gateway to on-demand services," said Ralf Lenninger, head of intelligent transportation systems business unit, Continental. "With our Key-as-aService technology for connected cars, we are expanding our offerings in the market and enabling a seamless mobile solution for consumers.”

A wide range of new hire services is making corporate mobility ever more easy for business travellers.

Let’s take a look at some of the latest developments.

Hertz Connect – free mobile 4G wifi and international calls.

ratings by 20%, and with the company heavily committed to a fleet of connected vehicles, having already added 6,000 Peugeot, Citroen and DS models to its European operation and planning a further 5,000 later this year, the firm promises an even better customer experience.

More than 360,000 customers use the app, which has increased customer satisfaction

FLEET EUROPE #98

CHAUFFEUR DRIVE SERVICES INCREASING One area of common development among a number of short-term rental companies is the offer of a chauffeur drive service.

No longer confined to the realms of CEOs, the use of a chauffeur (in reality a taxi but a more luxurious car), offers business travelers peace of mind when in an unfamiliar city or country. Last year Hertz announced a partnership with chauffeur company Blacklane, Sixt has mydriver and at the start of 2018 Europcar launched Europcar Global Driver Services for first and last trip kilometres.

Sheila Struyck, managing director of Europcar’s New Mobility Business Unit, said: “Allowing customers to book chauffeur transportation simplifies travel planning and will allow them to feel completely relaxed when travelling.”

Interestingly, Global Driver Services is available in three service levels: economy, business and first class, while Sixt also has both a limousine and shared ride service to complement mydriver, indicating that there are chauffeur drive options to meet every budget.

MANAGING MOBILITY BUDGETS This is just one area where Sixt is investing as it bids this year to offer its clients

FLEET EUROPE #98

Software is the new wheel of the automotive industry. Almost nothing turns without them. ©Continental Picture.

a wide range of mobility options from a single source.

CEO Erich Sixt said the company will think much more in terms of mobility budgets than selling individual products.

"At the end of the day, the customer doesn't really mind whether he is using a rental vehicle from Sixt Rent a Car, get into a car-sharing vehicle from DriveNow, the myDriver transfer service or Sixt Limousine Service, as long as it gets him quickly and conveniently to his destination,” he said.

ONE-WAY CAR SHARE Convenience is central to the Zipcar’s new floating car-sharing service in London. Where most car clubs oblige customers to return vehicles to specific parking bays, Zipcar Flex allows for one-way journeys within what it calls the ‘Zipzone’, 235 square kilometres of the UK capital, where drivers can drop off a car at any one of thousands of parking spaces.

Jonathan Hampson, general manager for Zipcar UK, said: "Zipcar Flex enables more Londoners to make smarter transport decisions and experience how much more convenient and cost-effective car sharing is compared to ownership.”

He added that the service could significantly improve key issues like air quality and congestion by avoiding the ‘empty’ journeys of taxis and ride hailing firms as they seek passengers.

FREE SERVICES And for fleets with truly green credentials, Hertz has launched a carbon offset programme, in partnership with TerraPass, that enables corporate customers to purchase carbon offsets to neutralise the environmental impact of their rental. Carbon offsets support projects that reduce greenhouse gas emissions, such as landfill gas capture, clean energy and forest management projects.

And to celebrate its centenary, Hertz Europe has launched free, mobile 4G wifi for qualifying car rentals from more than 200 locations across Belgium, France, Germany, Italy, the Netherlands, Spain and the UK. The offer includes free international calls of up to 30 minutes a day, a translation tool, and city guides, delivered via the Hertz Connect portable device.

For fleet managers the challenge will be to reconcile the ease and benefits of this wide range of new rental services within the constraints of controlling mobility budgets.

61

ANALYSIS

ANALYSIS

THE LOCATIONS AND SERVICES OF CAR RENTAL MAJORS AVIS BUDGET GROUP

HERTZ

EUROPCAR

SIXT

149

130

105

90

10,2

3300

2200

9900

627,113

633,900

248,500

114,300 [plus 132,900 lease vehicles]

1.9 million

Avis, Budget, Zipcar (car pool)

Hertz, Dollar, Thrifty and Firefly plus Donlen (leasing and fleet management), Blacklane

Europcar, InterRent, Ubeeqo and Goldcar

Albania, Austria, Azerbaijan, Belarus, Belgium, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Faroe Islands, Finland, France, Georgia, Germany, Gibraltar, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Lithuania, , Luxembourg, Macedonia, Malta, Montenegro, Netherlands, Norway, Poland, Portugal, Romania, Russia, Serbia, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Turkey, Ukraine, United Kingdom

Albania, Andorra, Austria, Azerbaijan, Belgium, Bulgaria, Cape Verde, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Georgia, Germany, Greece, Hungary, Iceland, Ireland, Italy, Kosovo, Latvia, Lithuiania, Luxembourg, Macedonia, Malta, Moldova, Montenegro, Netherlands, Norway, Poland, Portugal, Romania, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, Ukraine, United Kingdom

Albania, Armenia, Austria, Belarus, Belgium, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonias, Finland, France, Georgia, German y,Greece, Hungary, Iceland, Ireland, Kosovo, Italy, Latvia, Lithuania, , Luxembourg, Macedonia, Malta,Moldova, Montenegro, Netherlands, Norway, Poland, Portugal, Romania, Serbia, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Turkey, Ukraine, United Kingdom

Albania, Armenia, Austria, Belarus, Belgium, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Georgia, Germany, Greece, Greenland, Hungary, Iceland, Ireland, Italy, Kazakhstan, Kosovo, Latvia, Lithuania, Luxembourg, Macedonia, Malta, Moldova, Monaco, Montenegro, Netherlands, Norway, Poland, Portugal, Romania, Russia, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, Ukraine, United Kingdom, Uzbekistan

Albania, Armenia, Austria, Belgium, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, France, Georgia, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Lithuania, Luxembourg, Macedonia, Moldova, Montenegro, Netherlands, Norway, Poland, Portugal, Romania, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, United Kingdom

Rent Smarter

Hertz One

Europcar Oneway

One-Way Europe Car Hire

One-way car rental

LUXURY CAR RENTAL

Avis Select Series

The Dream Collection

Europcar Selection

Sixt Luxury / Special

Exotic Car Collecion by Enterprise

LONG-TERM CAR RENTAL

Avis Flex

Hertz 28 Days+

Europcar Long Term / Advantage

Long Term Rental and Sixt Leasing

Enterprise Month or More, Enterprise Flex-E-Rent (for commercial vehicles)

WIFI

TravelTab Adventurer

Hertz Connect

APP

Yes

Yes

Yes

Yes

Yes

Avis Chauffeur Drive

Hertz Chauffeur, Blacklane

Driver Service

Sixt mydriver

Avis Delivers

Pick up and Return

Deliver & Collect

Delivery and Collection

Enterprise rental offices will pick up customers, but do not deliver vehicles

Zipcar (rent by the minute, hour or day)

Hertz 24/7 (hourly rental for vans); Hertz 24/7 Pool Fleet (replaces a fixed pool fleet)

Ubeeqo Hourly Hire; SnappCar (peer-to-peer rental)

Sixt rides (shared rides, taxis, on-demand ride services), Sixt Unlimited (alternative to a company car - a hire car wherever you are in the world)

Enterprise Car Share, Rideshare by Enterprise, Enterprise Car Club

Jonathan Manning

Hire companies have the fleets, scale and coverage to provide comprehensive mobility solutions across Europe.

COUNTRIES WORLDWIDE

180

ENTERPRISE

(Avis 170, Budget 120, Zipcar 7)

LOCATIONS

11,000 (Avis 5,500, Budget 1,550)

AVERAGE GLOBAL FLEET SIZE 2017 (VEHICLES) BRANDS

EUROPEAN COUNTRIES

Enterprise, Alamo, National

SERVICES ONE-WAY RENTAL

CHAUFFEUR DRIVE DELIVERY AND COLLECTION MOBILITY SERVICES

ANNUAL REVENUE (IN BILLION $)

62

8.8

8.8

FLEET EUROPE #98

2.4

FLEET EUROPE #98

2.31

(2016)

22.3 63

GLOBAL FLEET CONFERENCE

Dataforce Managing Director Marc Odinius proved once more his company’s extraordinary expertise in analysing and interpreting dry data and using them to predict market trends in terms of powertrains, car body styles and carmaker popularity.

All mobility leads to Rome

Bruno Colmant, head of macro research and executive board member for Bank Degroof Peterca, kicked off the first day of the conference with a talk about the macro-economic outlook of the near future and a look at how this could impact the vehicle fleet and urban mobility industries.

Benjamin Uyttebroeck @uytteb

However many potholes they contain, all roads lead to Rome. But what vehicle should you use to get there? How should it be powered? Should you own, lease, rent or share it? Over 300 industry leaders discussed these and many other topics during a highly successful Global Fleet Conference, held from 28 to 30 May in the Eternal City of Rome.

READ ALL ARTICLES ON THE 2018 GLOBAL FLEET CONFERENCE ON OUR WEBSITE.

Mike Antich (Editor and associate publisher, Automotive Fleet) led a first panel debate in which fleet managers Ralf Wessel (ACGO, pictured on the left), Jean Paul (Aramark, pictured in the middle) and Patricia Friedel (Johnson&Johnson, pictured on the right) talked about safety, sustainability and the differences between markets.

16 of the 25 Latin America Advisory Board members attended the meeting in Rome to discuss opportunities for further development on the challenging but promising Latin American market.

“I would like to have EVs everywhere, but in many cases it’s already a big challenge to get fuel to our vehicles,” said Lukas Nel of the worldwide relief organisation World Vision International in an enlightening presentation on the difficult contexts his organisation has to operate in, often in places devastated by natural disasters or other catastrophes.

Global Fleet Chief Editor Steven Schoefs interviewed Konstantin Sixt of the namesake company on the future of fleet management and on ways to avoid paying for a car on days you don’t actually need it.

A breakout session focused on Latin America. “Take time to learn about the region you want to do business in. Not only the culture and current practices, but the economy, interest rates, infrastructure, and available technologies,” said Rodrigo Monroy (Abbvie).

Alessandro Pigazzi (Arval), Norman Din (Wheels Inc), Michiel Alferink (Athlon), Rick Tousaw (ARI) and Gavin Eagle (LeasePlan) had a panel debate on the future of fleet management, moderated by Steven Schoefs, Global Fleet Chief Editor.

The Global Fleet Managers Club was created to offer fleet managers across the globe a forum where they can meet, learn, ask questions and share best practices. Its 40-odd members met for the first time in Rome, the start of many more meetings and initiatives in the future.

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After a bus tour through the historic city centre of Rome, the participants were taken to the luxurious Palazzo Naiadi for a rooftop dinner accompanied by local music.

FLEET EUROPE #98

Steve Higgs (GM), Dennis Rachow (Jaguar Land Rover), Eric Feunteun (Groupe Renault), Olivier Ferry (Hyundai Motor Europe) shared their insights on the powertrain evolution.

FLEET EUROPE #98

David Omodei (Microsoft) gave a presentation on the transformation from fleet to mobility with the support of technology.

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Don’t miss the next edition of the Fleet Europe Magazine

GLOBAL FLEET CONFERENCE

“Countries are in different phases: emerging versus growing versus mature. The number of suppliers increases with the maturity and so does the tendency to go for operating lease,” said Reggie Cabal, CEO and Managing Director at ORIX Australia and New Zealand during the dedicated APAC session.

Light Commercial Vehicle Management

TOPICS: • News from the industry • Impact WLTP on the TCO • Purchasing of leasing?

• Alternative last mile • Remarketing • Connectivity in the services

Want to advertise in this issue ?

Contact Master YourDavid Journey, Baudeweyns Whatever The Season Sales Director Adriana Holban, Global Category Leader Fleet and Travel at Heineken International and winner of the International Fleet Safety Award 2017, explained how her company had introduced telematics to increase safety and decrease fuel consumption.

“You can have the best strategy, if the people don’t buy in, you are nowhere. We need to establish a global community, driven by collaboration,” said Juergen Freitag, Head of Global Fleet Management at Siemens AG and winner of the first Global Fleet Manager of the Year Award 2017.

HIGHEST R ANKED L ABEL FOR WET GRIP

dbaudeweyns@nexuscommunication.be

The coffee breaks and lunches provided plenty of opportunity to network and to get to know each other’s peers in a more informal setting.

Alexandra Melville, Global Category Expert for Car Fleet and Mobility at Accenture and winner of the International Fleet Mobility Award 2017, stressed the importance of flexibility in mobility management: “It’s no cookie-cutter solution.”

“There is enough flexibility in our model to leave no country behind, taking into account different levels of maturity,” said Peter Szelenyi, Global Fleet Category and Regional Travel Category Manager at healthcare company Novartis.

Best-in-class Wet Grip

Qualified Snow Performance

Superior Wear Life

EU label grade “A”, the highest ranked label for wet grip

Certified 3 Peak Mountain Snow Flake marking (3PMSF)

Offering the same mileage as our premium summer tyres

Thanks to our advertisers in this issue NEW

Bridgestone Europe For your nearest Bridgestone Authorized Dealer, visit our website www.bridgestone.eu

COLOPHON EDITORS Steven Schoefs – Chief Editor sschoefs@nexuscommunication.be Céline Gilson – Project Coordinator cgilson@nexuscommunication.be Benjamin Uyttebroeck – Journalist buyttebroeck@nexuscommunication.be Christine Germain – Editorial Manager cgermain@nexuscommunication.be CONTRIBUTORS Stijn Blanckaert, Tim Harrup, Frank Jacobs, Jonathan Manning, Alison Pittaway, Dieter Quartier All work and no play makes Jack thirsty. The swimming pool area of the hotel where the conference was held was the perfect setting for a relaxing reception for all participants to make or renew acquaintance with their peers.

Pictures: ©Shutterstock

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FLEET EUROPE #98

FLEET EUROPE #98

Layout: Cible - www.cible.be

SALES & MARKETING David Baudeweyns – Sales Director dbaudeweyns@nexuscommunication.be

Laura Petit – Sales and Marketing Assistant lpetit@nexuscommunication.be

FLEET EUROPE

Saskia Lannau – International Key Account Manager slannau@nexuscommunication.be Daniel Savigny – International Key Account Manager slannau@nexuscommunication.be Vincent Degives – Marketing Manager vdegives@nexuscommunication.be Virginie Emonts – Sales and Marketing Assistant vemonts@nexuscommunication.be Aline Verpoorten – Internal Sales Assistant averpoorten@nexuscommunication.be

ADVERTISEMENTS SEAT (2), ŠKODA AUTO A.S. (4), Sixt (6), ALD Automotive (11), Daimler AG (14-15), Alphabet (21), Renault (23), Kia Motor Europe (32), Bridgestone (37), FleetLogistics (39), Volkswagen Financial Services (43), Enterprise (49), Hyundai Motor Europe (68)

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I care about choice.

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