Fleet Europe 069

NEXUS COMMUNICATION - FLEET EUROPE #69 - PERIODIC MAGAZINE - MARCH 2014 - DEPOSIT OFFICE LIÈGE X

MARCH 2014 - # 69

Cross-interview Marc Thiollier (Accenture) & Hichem Bardi (GDF Suez)

DOSSIER

2014 Car Manufacturers' Fleet Strategy

MANAGEMENT

BUSINESS

SCOPE

Safety Corner: Are your drivers driving too much?

Face to face with Mike Masterson, CEO ALD Automotive

Premium insight in residual values

SAVE THE DATE: 16 – 18 JUNE 2014, BRUSSELS

JOIN THE 2014 GLOBAL FLEET CONFERENCE ALL INFORMATION ON WWW.GLOBALFLEET.COM/CONFERENCE

ENJOYNEERING SEAT FOR BUSINESS IS NOW ONLINE, BE SURE TO VISIT OUR NEW PAGE.

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Average consumption: 3.2* - 5.9 l/100 km. Average CO2 mass emissions: 85* - 137 g/km. * Available from February 2014 onwards.

Is Europe turning a corner and coming out of recession? There have been signs over the last few months that the clouds hanging over the economy are beginning to clear. With economic data and expert polls presenting a cautiously optimistic outlook there are reasons to cheer, but we are not out of the woods yet. Politicians, economists and business leaders are quick to remind us that challenging times still lie ahead. Fleet Europe’s dossier on the fleet strategy of car manufacturers finds that automakers are more hopeful about the future too. After six successive years of declining sales 2014 is predicted to signal a rise in registrations. And the corporate fleet market is once again an essential ingredient of success in the sales strategy of car manufacturers.

With sales figures set to creep back into the black what else does the future hold for corporate fleets? Last year we predicted that driver engagement would rise up the agenda. This year our crystal ball tells us that alternative powertrains and telematics are all set to become the big issues in fleet strategy. Sustainability too driving change. In September the EURO 6 engine will become the new standard for passenger cars and LCVs, but if sustainability is to move further and faster then new powertrains like hybrids, CNG and electric vehicles need to enter the car fleet equation.

EDITORIAL

We need to start shaping the fleet future

Government policy and taxation will encourage take up whilst infrastructure will facilitate a powertrain revolution.

By challenging the status quo the car fleet industry can be a catalyst for change and co-create the future of fleet. By getting to know your drivers, and how, where and when they use their company car or LCV presents an opportunity to explore how alternative powertrains could deliver efficient and cost effective motoring. Telematic solutions offer an excellent source of fleet and driver information, and can be a huge asset when designing fleet strategy and optimising operational performance. The big challenge however, is employee privacy and a solution is needed if corporate fleets are to realise the benefits of telematics. The time has come to sit down, debate and decide on the way ahead.

To facilitate this discussion and debate other key fleet issues Nexus Communications is hosting the Global Fleet Conference 2014 in Brussels, Belgium from 16–18 June and the Fleet Europe Forum in Hamburg, Germany on 19 November. Save the dates and find out more at www. globalfleet.com/conference and www.fleeteurope.com.

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

Register to the 2014 Global Fleet Conference Be part of a ground-breaking event The Global Fleet Conference is the only conference designed specifically for executives from the world’s largest multinational commercial fleets with global and/or regional responsibilities.

The 2014 edition will take place from in Brussels, Belgium, from June 16 to June 18.

On the other hand we have planned smaller group sessions that will be dedicated to regional approaches, where fleet owners will be able to interact with fleet experts active in emerging markets that are becoming more and more important in today’s car fleet strategy of multinational companies.

This event represents the perfect opportunity for international fleet leaders to share ideas and best practices with their peers, and to benchmark their global fleet strategy.

Register now at www.globalfleet.com/conference!

Global Fleet Conference 2014 brought to you by We have foreseen an exciting 2 days of learning, networking and sharing. On the one hand plenary sessions will tackle key issues in fleet management such as strategy set up, taxation, global reporting, fuel management, insurance, driver behaviour and telematics.

Further information can be found on page 48

Follow us on Twitter Follow the latest tweets of @FleetEurope2012 and connect to the Fleet Europe team: @StevenSchoefs, @CarolineThonnon and @LaetitiaFdz

FLEET EUROPE # 69

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Dicover the fleet management trends for 2014

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CONTENT

MANAGEMENT I

DOSSIER I Car Manufacturers’ Fleet Strategy 2014 MANAGEMENT I

An insight in the organisation, the strategy, the products & services, and the new developments of the main car manufacturers in terms of fleet management.

7-39

I DOSSIER I

Become the next Fleet Europe Award winner.

BUSINESS

Interview with Bart Beckers, CCO of Arval.

41

53

Fleet Europe Awards 2014 in Hamburg, Germany . . . . . P.41

Flashback to the car manufacturers’ fleet strategy . . . . P.7

Cross-interview: Accenture versus GDF Suez

Today’s value of the car fleet market in Europe . . . . . . . . . . P.12

Do you know the 2014 Fleet Management Trends? . . . . P.46

The ABC of the car fleet strategy of today’s manufacturers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.14

Global expertise at the 2014 Global Fleet Conference . . P.48

Tips from the car industry to the fleet community . . . . . P.20 Fleet-owners take the word

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

P.22

An industry of innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.26 New at the Geneva Motor Show 2014. . . . . . . . . . . . . . . . . . . . . . . . . P.28 Understanding each other’s business . . . . . . . . . . . . . . . . . . . . . . . P.30 Focus on a future called Green. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.34 The globalisation of the car fleet industry . . . . . . . . . . . . . . . . . P.38

Steven Schoefs - Chief Editor - Fleet Europe sschoefs@nexuscommunication.be Laetitia Fernandez - Content & Community Editor - Fleet Europe lfernandez@nexuscommunication.be Frédéric Van Vlodorp - Managing Editor fvandvlodorp@nexuscommunication.be Caroline Thonnon - Head of Business Development & Global Fleet Leader cthonnon@nexuscommunication.be David Baudeweyns - International Sales & Business Development dbaudeweyns@nexuscommunication.be Romina De Gregorio - Internal Sales & Operations rdegregorio@nexuscommunication.be Vanessa Digneffe - Internal Sales Support vdigneffe@nexuscommunication.be Jonathan Green - Chief Editor Smart Mobility Management jgreen@nexuscommunication.be

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New: The Fleet Europe Safety Corner . . . . . . . . . . . . . . . . . . . . . . . P.50

I BUSINESS I The ambitions of Alphabet International. . . . . . . . . . . . . . . . . . . . P.52 Bart Beckers (Arval) believes in connectivity . . . . . . . . . . . . . P.53 The Global vision of AXA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.55 ALD International reaches 1 Million milestone . . . . . . . . . P.56

I SCOPE I

I MANAGEMENT I

COLOPHON

. . . . . . . . . . .

Residual Values: Why pay a premium? . . . . . . . . . . . . . . . . . . . . . P.58

Contributors: Tim Harrup, Frank Jacobs, Ally Millar, Jean-François Christiaens and Jonathan Green Special thanks to: Dean Bowkett (EurotaxGlass’s), Maarten Baljet (BF forecasts) Layout: Un pas plus loin - info@unpasplusloin.com

EDITOR

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

FLEET EUROPE

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

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THE END OF THE DARK AGES

THE NEW INFINITI Q50 – LIGHT IT UP Defy convention with the new Infiniti Q50. Beneath the seductive curves purrs a 2.2-litre turbo diesel engine generating 170 PS and 400 Nm, with CO2 emissions from just 114 g/km – helping you achieve the perfect balance of power and efficiency.

·

Integral satellite navigation system Infiniti InTouch infotainment system with dual touch screen Rear parking camera.

·

Find out more at infiniti.eu

Model displayed: Infiniti Q50S Hybrid. Official fuel economy figures for the Infiniti Q50S Hybrid: combined 6.2 l/100 km. CO 2 emissions: 144 g/km.

Category of energy efficiency: C. Also available in 2.2d 6MT and 7AT. Official fuel economy figures for the Infiniti Q50 2.2d 6MT: combined 4.4 l/100 km.

CO 2 emissions: 114 g/km. Category of energy efficiency: A. The average CO 2 emissions of all registered new cars in 2014 amount to 148 g/km.

DOSSIER

I Car Manufacturers’ Fleet Strategy

All roads lead to 2014 In previous years, Fleet Europe tirelessly polled the globe’s major car manufacturers to score the previous year, and chart their strategy for the year ahead – and 2014 is no exception. But there’s an old saying about looking backwards to move forwards – so here we travel from 2010 to the present day and trend four years of change, growth and evolution in fleet.

T

he World Cup football in South Africa, the Wikileaks scandal and Eyjafjallajökull – that volcano. We’ve just left 2010, a year when global fleet grew 8% on 2009, apparently recovering from the economic slowdown of ‘08 and ‘09. It also marked a turning point or two for an industry looking to streamline, expand and adhere to new environmental priorities.

The role of technology in safety techniques and SoS systems was emerging, but the market wasn’t yet steered by the omnipotent power of tech. That would come later. Only market leader Volkswagen made a passing reference to smart-tech and in-car connectivity in our questionnaire. Fair enough, at that time the iPad was barely eight months old.

Total Cost of Ownership, in the grand scheme of things, was still a medium-sized concern. Although some brands – such as Skoda and SEAT – put practical TCO analysis mechanisms in place to address true cost

2010 was the year car fleet business sought to globalise.

DOSSIER

from p. 9 to p. 38 and on the new website www.fleeteurope.com and resale, it wasn’t until after the 2011 experience that makers gave TCO unwavering attention.

In 2010, manufacturers’ focus was on expanding range and tightening service, offering more vehicles to fit client needs across the size spectrum – from individual to LCV, SME and international and streamlining the purchase and service process; a trick which served Citroën and Mercedes-Benz well.

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DOSSIER I Car Manufacturers’ Fleet Strategy 2014

Peugeot, too, signed off 2010 with 200 international agreements in place – up from 33 owing in large part, to the 600 accountable ‘Professional Centres’ which handled the fleet journey from contact and test drive through to finance and sale. While scaling up dealer networks was an essential for fleet newbies Infiniti and SEAT, heavyweights Renault, Peugeot, Jaguar Land Rover, and Volkswagen saw expansion in different terms – the lucrative BRIC markets. BRIC’s potential, and that of the evolving Eastern European markets, were explored in two Fleet Europe guides, published in 2013 (available via FleetEurope.com).

BRIC, Eurasian and even African expansion was partially a response to client requests that fleet coverage extend beyond continental bounds, achieving international synchronicity between providers. One could say 2010 was the year fleet sought to globalise. It was also the year China supplanted the US as the world’s biggest car market, so manufacturers' attention was keenly focussed in the region; and particularly B2B sales.

first fully electric vehicle which went on to win praise for its city-worthiness after launch in 2011.

Into 2011 That seems a good point to move up a year. Arab Springs, Royal weddings, riots, Hurricane Irene and the death of Bin Laden – we’re in 2011 and the Eurocrisis has reversed the resurgence of the car market. Moody’s estimated a decline of 6.2 % - or 13.4 million units.

Spain’s demise was most stark, only managing to match 1993’s sales. From recovery in 2010, to 2011’s slowdown – fleet optimism turned to austerity and, as was obvious from carmakers’ rhetoric, the goalposts changed. While manufacturers were still beavering away in emerging markets (Jaguar Land Rover and Volvo in particular were seeing strong penetration in China) lofty talk of BRIC expansion died down and TCO joined electrification atop the agenda.

Even premium brands were banging the TCO drum as Mazda joined Renault, Citroën, and Vauxhall in saying TCO was the most important issue facing international fleet.

Looking at China By 2010’s end, Volkswagen’s China market grew by over 42%, and their Asia-Pacific market as a whole was up by 121%. Citroën grew their market share in China to 2% of total and 3% of fleet in 2010 while KIA posted a year-on-year sales increase in China of nearly 40%; selling 354,944 units. BMW too doubled their sales in the country.

Lucrative yes, but one thing the Chinese market isn’t – is green. And 2010 was, unequivocally, the year the green movement moved to the top of the pecking order.

Almost without exception, manufacturers saw powertrains, Electric Vehicles and CO2 reductions as the biggest issues facing the industry.

Infiniti, Renault, Volvo and Citroën were poised, in 2011, to release inaugural hybrid or EV models and Peugeot was very excited about its iON, a

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PSA Peugeot-Citroën, Toyota, and Mercedes-Benz recommitted to local service, customer experience and SME acquisition. Mazda, KIA, Volvo, PSA, and Jaguar Land Rover would begin building up operational leasing and rental plans.

Bootstrap tightening and controlling the controllables didn’t thwart commitment to the green cause though, as European Environment Agency (EEA) emission targets (95g CO2/km) for new passenger cars were phased

in in early 2012. OPEL and Vauxhall’s billion Euro investment into alternative propulsion technology culminated in the release of the Opel Ampera/ Chevrolet Volt which trumped established models, including the Ford Focus, to win European Car of the Year 2012.

With the green movement, efficiency drives and blossoming technology – 2011 and 2012 saw smart mobility come to the fore. As new standards on fuel efficiency, safety and emergency response technologies came in, manufacturers acknowledged the importance of built-in tech and third-party devices.

2012 That takes us into 2012, where – despite a dramatic low of 12.5m registrations in Europe – optimism returned to fleet. In 2012, manufacturers’ patience and the collective decision to concentrate on TCO, service and getting things right in familiar markets had paid off. According to an Infiniti spokesperson fleet was now – at the expense of the private market – the key channel; and sales reflected that. Infiniti’s private versus fleet balance was tipping: 40% in 2011, to 55% in 2012 and a predicted 65% in favour of fleet in 2013.

PSA Peugeot-Citroën described B2B as the stable option compared to B2C, and noted extensive B2B sales growth in 2012. Volvo, helped by their V40, broke their own B2B market share records across key Euro markets and Toyota enjoyed a 2% sales increase across the board. Renault B2B share rose to 30% of total, while KIA saw astounding growth of 17 percentage points.

The continuing economic slump in Western and Southern European markets was reflected in stagnant fleet sales, but buoyant economies in BRIC countries, Latin America, Eastern Europe, Turkey, Ukraine, Euromed Africa and the Middle East were compensating.

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DOSSIER I Car Manufacturers’ Fleet Strategy 2014

In 2013 car manufacturers are still talking about service efficiencies, resale value and emerging markets – but smart mobility and the green movement has top-down dominance.

Interestingly, manufacturers didn’t seem to be banging the green drum as enthusiastically as previous years.

Hybrid pioneer Toyota – which had just sold a landmark 100,000 hybrids – described the green cause as less of a movement and more of a staple.

By 2013 it was part of the furniture.

Premium brands BMW, Infiniti, and Jaguar Land Rover – arguably slower to get green – were really shouting about their green push, but market leader (still) Volkswagen led the way in talking up the importance of smart mobility. They stated the importance of securing large international and professional contracts as the nexus point of the adoption of new technologies and in-car connectivity.

And that’s where we’ll leave 2012 – at the dawn of a smart-boom where innovation spiked and manufacturers began loading the chassis with tech, with the power to preside and solve the efficiencies, emissions and TCO questions which marked the previous three years.

2013 and the present day So that about brings us to 2013. In 2013 manufacturers are still talking about service efficiencies, new business, SMEs, TCO, resale value and emerging markets – but smart mobility and the green movement has top-

down dominance, the arbiter of the agenda in an automotive arms race.

For 2014, Mercedes-Benz – whose S-Class was recently crowned Connected Car of the Year – is touting their Digital Drive Style application which allows occupants to stay connected to the road environment and their social circles. They’re also pushing tech-led car-sharing service car2go – which boasts 500,000 customers in 25 locations – and smartphone app ‘moovel’ which synchronises regional transport systems; merging public and private mobility, carpooling, and bike sharing.

Autonomous Driving is being trialled this year by Mercedes-Benz and others, including Renault with their so-called Next Two – a vehicle which allows driving delegation, enhanced safety, and both 4G and Wi-Fi connectivity.

Next Two is also vying to take the idea of the mobile office one step further with capacity from videoconferencing alongside emerging geo-sensitive location data. Renault’s Zero Emission range of four EVs (Twizy, ZOE, Fluence Z.E. & Kangoo Z.E.) is updating new developments such as Telematics and connected services via the R-Link dashboard, and more than 100 different driving and assistive applications.

Lastly, for now, comes a company vying to lead the way in connected cars.

Volvo’s 2013 connectivity push included on-board infotainment and navigation systems powered by the cloud and heavy investment in Car2Car Technology which enables vehicles to “speak” to each other; swapping local driving data. Volvo’s premier safety technology – Intellisafe – automatically brakes when cyclists swerve in front of the car and they’ll continue the safety push this year with Animal and Pedestrian Detection in Darkness technologies.

2014 and beyond...

They say all roads lead to here – and here is an exciting place. Those expansion, efficiency and TCO questions viewed as separate problems in previous years could – with smart technology presiding – be tightened and solved in harmony. We’re in 2014 and manufacturers are concentrating on tech as the top down solution to those problem areas of the previous few years – even the seemingly unrelated issues of expansion and TCO are being addressed by tech, in a new automotive arms race. The only question left for now is: what will we be talking about next year? ■

Ally Millar

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DOSSIER I Car Manufacturers’ Fleet Strategy 2014

Now it is time for some good news With European vehicles sales declining year on year there has been little for OEM’s to cheer about in recent times. With the green shoots of economic recovery on the horizon could there be some good news for embattled car manufacturers in 2014? Let's take a look back at 2013 and find out what 2014 could have in store.

The first half of 2013 was not pretty with sales down 6.7% on 2012, but four consecutive months of growth leading up to and including December 2013 saw the market gather momentum. And in December 2013 automakers received the Christmas present they were looking for with sales increasing by 13% over the previous year, and showing the largest monthly increase for almost 4 years. The boost at the back end of last year suggests 2014 could be the year that new car sales across the continent start their long awaited rebound back into the black.

Tough trading conditions continued in 2013 In 2013 the UK was the shining star recording double-digit growth (+10.8%), whilst Spain was a beacon in choppy waters posting an upturn of +3.3% according to figures from ACEA. Amongst the smaller markets there were winners too. Portugal in-

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creased sales by the largest margin (11.9%), and Denmark (6.7%), Poland (6.4%) and Hungary (5.5%) recorded good growth. Let's not get carried away though. The bigger picture was one of decline. Germany (-4.2%), France (-5.7%) and Italy (-7.1%) led the losses in terms of volume, though the most spectacular percentage decline was in the Netherlands which recorded a drop of 16.3% for the year.

Are we on a road to recovery?

The negative figures are set to turn into positives. EurotaxGlass’s predicts total EU27 + 3 EFTA new car registrations will reach 12.65 million, a 2.8% increase on 2013 figures. Amongst the big five Spain will lead the charge with growth of 5.9%, whilst Germany and Italy will see sales increasing by 2.5 and 2.6% respectively. France too is predicted to post sales growth of 1.2% as will the UK at 1.3%. See also Figure 1.

Will corporate fleet sales spur the recovery?

So will it be sales in the corporate fleet market that spur on the market? Calculating true fleet sales is not a simple business due to the varied ways that each country reports its sales mix, but Dean Bowkett, Technical Director and Chief Editor, EurotaxGlass’s Group, believes the corporate fleet market is likely to see an average growth of 1-2% in 2014 at best. He comments, “Whilst total passenger car sales have been weathering a particularly nasty storm since 2008, with the exception of the 2008-09 period fleet sales have not suffered as much with the exception of Spain and as of 2013 Italy.”

EurotaxGlass’s predicts Spanish fleet sales are likely to grow by 1-2% next year, but their market share is likely to fall as private sales grow at a much faster rate. In Germany true fleet sales will see low single digit growth,

Fig. 1: Top selling models in the Big 5 Markets GERMANY

UK

FRANCE

ITALY

BMW 3 SERIES

FORD FIESTA

MERCEDES C-CLASS OPEL ASTRA

VAUXHALL CORSA FORD FOCUS

MERCEDES FIAT PANDA A-CLASS RENAULT CLIO FIAT PUNTO

VOLKSWAGEN TIGUAN BMW 1 SERIES

VAUXHALL ASTRA VOLKSWAGEN GOLF

SPAIN SEAT IBIZA

PEUGEOT 208

FIAT 500

CITROEN C3

FORD FIESTA

VOLKSWAGEN GOLF VOLKSWAGEN POLO OPEL CORSA

RENAULT MEGANE

VOLKSWAGEN GOLF

RENAULT MEGANE

Source: EurotaxGlass’s Group

O

n the face of it 2013 was another depressing year for the European automotive industry with vehicle sales falling for a sixth consecutive year. The headline statistics for 2013 will show a decline in sales of around 2% with new car registrations of 12.3 million. Hidden within the data however, are monthly sales figures that point towards a brighter future.

The boost at the back end of last year suggests 2014 could be the year that new car sales across the continent start their long awaited rebound back into the black.

whilst in the UK and France EurotaxGlass’s predicts that fleet sales are likely to remain flat, whilst in Italy will see growth of less than 1%.

Rising residual values impact TCO Residual values also look good with EurotaxGlass’s predicting that values for 3 year old vehicles will slightly improve in 2014 with an average European wide increase of 0.5% to 1%.

Germany and Spain are likely to see the strongest rise in used car prices up to around 2% in Germany and higher in Spain. In the UK a marginal downturn (-0.5%) is predicted as the car parc of 1-3 year old cars starts to grow, and new car cheap financing and discounting impact used values.

Dean Bowkett adds: “The biggest factor not just for 2014 but beyond is the whole area of Total Cost of Ownership for both the corporate fleet managers and the company car drivers. For the

drivers it is all about the Total Cost of Driving and they want to opt for lower tax incurring cars, i.e. generally lower CO2 emissions. Whilst the corporate fleet managers will be looking at the wider TCO picture including any company tax breaks which are also becoming more linked to emissions.”

With taxation linked to CO2 and the rising cost of fuel alternative powertrains are likely to feature ever more in the mind of corporate fleet managers. “Hybrids are definitely going to lead that change with far greater user acceptance. Pure EVs have their place but consumer fears over range and other factors will continue to hold them as a niche volume player at least for the next few years,” says Dean Bowkett.

“It will also be interesting to see how Qoros will develop. The Qoros 3 winning the NCAP award for 2013 as the safest car tested last year has helped improve its visibility in the market place and with no brand reputation, either good or bad, it may well find a place in a number of company car parks”, he adds. With a more positive mood across the continent automakers will be hoping to see the predications come true and sales move up a notch or two. After all it's been a tough few years. ■

Ones to watch in 2014 So what should we watch out for in 2014? “The corporate fleet world

Jonathan Green

Fig. 3: Fuel Split of new registrations across Big 5 Markets

NEW PASSENGER CAR SALES

2013 ACTUAL

2014 ESTIMATE

MOVEMENT

Germany UK France Italy Spain Rest of Europe Total EU27 + EFTA3

'000s 2,952 2,265 1,790 1,304 723 3,267 12,301

'000s 3,026 2,294 1,811 1,338 766 3,416 12,651

% 2.5% 1.3% 1.2% 2.6% 5.9% 4.6% 2.8%

FUEL TYPE SPLIT (BIG 5)

2011

2012

2013

Diesel

2010

52.8%

56.8%

54.49%

Petrol

43.1%

41.4%

41.87%

Hybrid

0.5%

0.6%

1.21%

Electric

0.0%

0.1%

0.22%

Other, e.g. CNG, LPG 3.6%

1.1%

2.25%

2.21%

100.0%

100.0% 100.0%

FLEET EUROPE # 69

Source: Data IHS Automotive (© IHS Inc., 2013. All rights reserved)

Fig. 2: New Passenger Car Sales

Source: EurotaxGlass’s Group

has always been a mixture of image and cost with the residual value, and hence the depreciation, being the largest single influencing factor on the latter”, according to Dean Bowkett. He predicts that Volvo and Jaguar Land Rover will be brands to watch as they close in on the German premium brands with their strong model ranges, relatively low discounting strategy and a loyal and growing following.

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DOSSIER I Car Manufacturers’ Fleet Strategy 2014

Fleet sales are the way to grow Fleet sales are an important and – if OEMs get their way – growing part of each car manufacturer’s total sales. This overview* presents both aspects of each brand’s strategy: the internal angle, including projects and projections for the future, and the client-faced side, explaining how they want to make more Fleet customers satisfied.

BMW Group Importance of Car Fleet/B2B Sales Corporate sales is an important sales channel for the BMW Group, not only in mature European markets (where they represent 40% of total sales), but worldwide. Over the last years, BMW’s fleet sales have seen steady growth, both for BMW and MINI. Products and Sales BMW continues to build on the great success of the BMW i3 market launch. In 2014 it will also be introducing the series version of the BMW Concept Active Tourer, which opens up a new customer segment for the BMW Group. In Europe, it expects to see the share of fleet sales to be

Infiniti Importance of Car Fleet/B2B Sales In Europe, Infiniti’s fleet channel represents nearly 40% of total sales, so in that sense, its importance is capital. Globally, there is also a tendency to fleet sales increase, so its importance outside Europe is increasing as well. Total sales for non-private channels have reached 60% last year. Among these, 15% are international Fleet sales.

Products and Sales This year will be one of strong fleet sales, due to the renewals of big fleets back in 2010. Even though the

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stable or slightly increase because the company car remains an important compensation & benefit instrument. Outside of Europe, fleet sales will continue to increase because an increasing number of corporate customers focus on a global approach.

Strategy towards Fleet Customers Especially in the fleet industry, a clear commitment to sustainability combined with a focus on Total Cost of Ownership (TCO) has become increasingly important in customers' fleet policies. BMW’s corporate customers recognise and reward the BMW Group’s efforts in the field of sustainability not only when it comes to the Group’s automobiles but also with regard to the whole supply chain

Top Fleet Model - BMW 5 Series

from R&D up to production and ultimately recycling. They also value the BMW Group’s unique combination of fuel efficiency and driving pleasure which arises out of the BMW EfficientDynamics and MINIMALISM technology innovations.

Fleet contact

Dirk Eichstaedt

Head of International Key Account Management dirk.eichstaedt@bmw.de

economy is not showing big signs of recovery yet, the mechanical effect of these renewals will make for a good year. For Infiniti, 2014 marks the arrival of Q50, its D segment car that perfectly fits in one of the biggest fleet segments in the market.

Strategy towards Fleet Customers Even in the era of new technologies, personal contact is still the best way to manage business, Infiniti believes. Being a small player in the market gives it the possibility to approach customers in a much closer and more personalised manner than other OEMs. At the same time, Infiniti is a global brand, now

Top Fleet Model - Infiniti Q50

present in more than 50 counties worldwide having the possibility to offer its products and services in International Fleet agreements as the luxury brand of the Alliance.

Fleet contact

Carlos Montenegro

Corporate Sales Director Europe carlos.montenegro@infiniti.eu

Fiat Group Automobiles Importance of Car Fleet/B2B Sales Generating fleet business means a huge increase in visibility, both in private companies and public organisations. So for Fiat Group, the fleet channel is a key part of a successful strategy. In fact, it represented more than a quarter of total sales in Europe in 2013.

Products and Sales All European and worldwide countries play an important role in providing Fiat Group's products with the best possible visibility and in broadening their appeal across national boundaries.

And, after a very difficult economic period throughout all European markets the Italian manufacturer is able to detect some first positive signals.

It believes that with the improving

Ford Importance of Car Fleet/B2B Sales Fleet share growth is one of Ford’s top strategic priorities to support its European turnaround plan.

Products and Sales Overall, Ford is forecasting small growth for 2014 for the industry in Europe. With the Ford Customer Service Division, it will be working to improve its customer-facing resources, to improve its fleet products (for both

Maserati Importance of Car Fleet/B2B Sales For Maserati, 2014 is the start of its fleet sales. The luxury brand plans to sell ca. 30% of its Ghibli Diesel and circa 20% of its Quattroporte Diesel to the fleet sector in Europe.

Products and Sales Generally speaking, Maserati thinks that the fleet market will be stable in Europe. Entering the fleet market in 2014, the Italian manufacturer plans

economic situation in Europe, car fleet sales will increase.

Strategy towards Fleet Customers Close and direct contact with customers all across the world is essential to satisfy their needs and to maintain a strong, long-term relationship.

Therefore one of Fiat Group's focuses is the organisational structure: beside its International Key Account Management dedicated to corporate customers on an international level, the Group operates through its local structures with national Key Account Managers in 19 European countries.

Each of the National Sales Companies has a dedicated team for companies, LTR and RAC. The national Fleet Managers are able to find the best solution for every mobility need, also for different markets or brands of the group. Apart from having a transversal range with 6 brands, the

Top Fleet Model - Alfa Romeo Giulietta

Group has a brand dedicated to light commercial vehicles: it is able to offer its customers tailor-made solutions for their vehicles, unique customisations and flexibility. It offers the products, the services and the territorial presence in order to be a “onestop shop” in the fleet business. The global dimension of its organization gives Fiat the possibility to support its customers in the whole world.

Fleet contact

Nicola Pumilia

Fleet & Used Cars Fleet Sales Manager, EMEA nicola.pumilia@fiat.com

cars and commercial vehicles) and to roll out more dedicated fleet communications.

Strategy towards Fleet Customers Ford is able to offer its fleet clients a global agreement solution, which it is well placed to deliver, through its Ford and dealer organisation structures across all regions of the world.

Inversely, Ford’s regional managers are assigned to support its global fleet team structure for each region.

Top Fleet Model - Ford Focus

Fleet contact

Barrie Crawshaw

Manager Fleet & Rental Europe bcrawsha@ford.com

to sell about 2.000 units in this channel. It will focus on: starting cooperation with major leasing companies, acquisition of new customers and professionalisation of its dealer network.

Strategy towards Fleet Customers For fleet customers as well as for all other customers, the main ingredients of Maserati’s offer are the high quality of the product, a competitive TCO and the professionalism and reliability of the Sales team.

Top Fleet Model - Maserati Ghibli

Fleet contact

Franco Marianeschi

European Corporate Sales Manager franco.marianeschi@maserati.com

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DOSSIER I Car Manufacturers’ Fleet Strategy 2014

Jaguar Land Rover Importance of Car Fleet/B2B Sales Fleet is a core element of Jaguar Land Rover’s global growth plan. The Group aims to double its fleet sales by 2018. Fleet and B2B sales form a significant share of its total sales in Europe; outside of Europe, the Fleet and B2B share of total sales is a much smaller, but growing proportion.

Products and Sales Within Europe and outside of Europe the group sees modest growth in the fleet market during 2014, driven by recent model introductions and JLR’s commitment to reducing CO2 output

Kia Importance of Car Fleet/B2B Sales Fleet and B2B sales represent a significant opportunity for Kia in Europe and at a Global level. This is very much a growth area for the brand and an area of significant success in recent years with the introduction of the cee’d and Sportage models, which cater for a variety of business/ fleet customer needs. In 2013. fleet sales represented 39% of Kia’s total sales (further specified as 24% longterm fleet, 9% demo and 6% rental).

Products and Sales Kia is investing heavily in new tech-

PSA Peugeot Citroën Importance of Car Fleet/B2B Sales Peugeot and Citroën B2B sales (cars & vans) in 2013 numbered 810,000 worldwide (605,000 in Europe and 205,000 outside of Europe), while total international sales numbered 2,818,000. The group is the number one B2B seller of LCVs in Europe, with over 20% of market share.

Products and Sales The group foresees strong growth in China, development in Russia, South America, Turkey, Algeria and a sim-

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on existing product. Outside of Europe it is building capability in the more developed markets such as USA, but also sees opportunities to grow its fleet business in key emerging markets including China, India and Brazil.

Strategy towards Fleet Customers Jaguar Land Rover’s Fleet strategy is centred on further improving the Jaguar Land Rover fleet customer proposition. The group wishes to work with companies across Europe to help it realise incremental sales performance but more importantly, deliver additional value to its customers. This includes investing in additional resource to support its NSC

Top Fleet Model - Jaguar XF

and central fleet operations, continuing the focus on reducing the TCO of its cars and preparing for the launch of new models in 2015 that will have particular appeal in the fleet market.

Fleet contact

Emil Gaynor

Global Corporate Strategy Manager egaynor@jaguarlandrover.com

nologies to ensure that the business is well placed to service the needs of the increasingly CO2 conscious fleet market, with the business due to launch its first EV Product for the European market in April 2014 – the Kia Soul EV. Strategy towards Fleet Customers Fleet decision makers will continually look to reduce cost and the CO2 footprint of the fleet in and outside of Europe. Kia has a healthy channel mix, with a greater mix of private sales versus the market, resulting in a positive market share for Kia in the retail market. Fleet is an area of opportunity and Kia is making good

Top Fleet Model - Kia Cee’d

progress following what has been a good period in terms of design evolution and brand development, making Kia much more appealing to the company car driver.

Fleet contact

Mark Howlett

Fleet Sales Manager mhowlett@kia-europe.com

ilar market share in Europe (with emphasis on LCVs).

Strategy towards Fleet Customers PSA Peugeot Citroën proposes to the international customers a “one desk” process for both brands Peugeot & Citroën and for all countries.

For all sizes of fleets, the PSA group will reinforce its Business Centre programme, and continue its assessment and training of the B2B sales people. As for service and quality, the main objectives will be to improve organisation, processes, tools with a dedicated team of International B2B

Top Fleet Model - Peugeot 2008

Business Developers. Finally, special attention will be given to the development of telematics solutions.

Fleet contact

Hugues de Laage de Meux Head of International Key Account Sales hugues.delaagedemeux@mpsa.com

Opel/Vauxhall Importance of Car Fleet/B2B Sales On a European level, fleet sales have been extremely important for Opel/ Vauxhall for many years and continue to be so. Fleet sales are also growing in importance at a global level within General Motors, particularly in the Asia Pacific region. Opel/ Vauxhall is the third-largest passenger car brand in Europe having sold over1 million vehicles in 2013.

Products and Sales The market situation for 2014 will continue to be challenging overall but Opel/Vauxhall feel confident that with the excellent product line-up

Nissan Importance of Car Fleet/B2B Sales Fleet sales account for 30% of Nissan sales globally, over 40% in Europe. Fleet is a key pillar of Nissan Mid Term growth strategy, aiming at 8% share and 8% operating profit globally.

Products and Sales Nissan expects the global Fleet market to grow in 2014. The economic recovery in mature Fleet markets, together with Fleet business development in BRICs, is offering new

Renault Importance of Car Fleet/B2B Sales For Renault, fleet sales account for 30% of global sales, and 33.6% in Europe. Renault has been the leader for LCVs in fleet sales in Europe since 1998. In 2013, international fleet sales totaled 792,000 units, of which 59% in Europe and 41% elsewhere.

Products and Sales For 2014, Renault sees these numbers holding steady, or showing a slight increase. In the latter case, the increase is expected to be gen-

it has, and with the new launches it will execute in 2014, the positive sales trend will continue into this year and beyond.

Strategy towards Fleet Customers With Opel/Vauxhall's European footprint, fast and efficient response to all customer needs is assured. The group owns all the National Sales Companies in all European countries so it can ensure that its customers are only ever one telephone call away from solving their issues in any of the countries in which they are present.

Opel/Vauxhall is planning new programmes for the Aftersales part of

Top Fleet Model - Opel Astra

the business and to increase the focus on SMEs. This year it will launch some important models for its fleet customers, including the all new Vivaro commercial vehicle.

Fleet contact

Juan Manuel Sagardoy European Director Pan-European Corporate Sales and Leasing juan.manuel.sagardoy@opel.com

opportunities. In Europe, the objective is to close the gap with private, now reduced from 1,1pp to less than 0,5pp in less than 2 years.

Strategy towards Fleet Customers To enhance Nissan’s relationship with its fleet clients, the brand will keep building on its Corporate Sales organisation, global, regional and national Key Account Managers, as well as its Business Center network (400 dealers in Europe).

Nissan will also renew a third of its line-up in 2014 and extend market coverage, with the launch of a brand

Top Fleet Model - Nissan Qashqai

new C-segment hatchback. Furthermore, new B2B targeted services will be introduced during 2014.

Fleet contact

Olivier Marion

International Fleet sales Manager omarion@nissan-europe.com

erated more outside of Europe than inside.

Renault’s focus will be on Small Fleet Volumes, Key Accounts at International level, and structuring Fleet Sales organisations in new countries.

Strategy towards Fleet Customers Renault’s strong points towards its fleet clients are the fact that it can offer a one-stop shop for global negotiations, a dedicated structure with fleet teams at international and local levels, the flexibility to easily extend contracts to new countries and new

Top Fleet Model - Renault Clio

vehicles requirements, and a consistent VIP treatment, with preferential contact at every level and exclusive invitations to special events.

Fleet contact

Emmanuel Longeard

International Key Accounts Director emmanuel.longeard@renault.com

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DOSSIER I Car Manufacturers’ Fleet Strategy 2014

Tesla Importance of Car Fleet/B2B Sales B2B sales are very important to the overall strategy for Tesla, as it is introducing a premium sedan into the market; the full-electric Tesla Model S. The Californian manufacturer just started the first deliveries in Europe in Q3 2013 - too early to share any meaningful figures.

That said, Tesla is very pleased with the reception it has received in many countries, Norway and Netherlands in particular.

Toyota & Lexus Importance of Car Fleet/B2B Sales 2013 was the third consecutive year of sustainable growth for Toyota Motor Europe in a declining market - with sales totalling 847,540 vehicles. The market share increase was a balanced result of both retail and fleet sales increases.

Products and Sales For the midterm, Toyota aims to grow back to 1 million sales a year.

For this, an increase of its short term rentals is not part of its strategy as Toyota aims for sustainable growth

Volvo Importance of Car Fleet/B2B Sales Corporate and fleet sales are vital for Volvo Car Corporation accounting for over 35% of its global volume. In Europe, the share is higher still, with an average 51%.

Products and Sales All things being equal, Volvo expects to see growth, reflecting its new Drive-E powertrains (where demand currently exceeds production capacity) and the first full year sales of the recently refreshed S60, V60, S80, V70, XC70 and XC60. In addition, the new

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Products and Sales Tesla expects the B2B market to remain stable, as per the recent years.

For the brand, it will actually be an increasingly important sales channel.

Strategy towards Fleet Customers Tesla wants to provide the best possible car at a competitive value (for example, it does not consider after-sales or service to be a source of profit) – that’s the only way it can accelerate the transition to sustainable transportation. Moving forward in 2014, Tesla will focus on the Total Cost of Ownership, highlighting the

Top Fleet Model - Tesla Model S

advantages of driving a full electric car. In addition, focus on team growth, dedicated regional Fleet sales team.

Fleet contact

Davide Ghione

European Fleet Sales Manager dghione@teslamotors.com

in retail and corporate fleet business with a focus on fleet customers benefiting from its competitive TCO. Strategy towards Fleet Customers In 2014, Toyota’s sales will further grow, but growth must be sustainable over the long term. To realise this vision, the manufacturer will reinforce the power of its products and of its brands – Toyota and Lexus – on an ongoing basis. The Japanese OEM aim to focus on core models and localisation of production in Europe and will continue to be a forward-thinking business partner, distinguishing itself in the areas of future mobility solutions,

Top Fleet Model - Toyota Auris Touring Sports

transparent and competitive cost of ownership and its commitment to an overall quality experience for business customers and drivers alike.

Fleet contact

Francesco Di Palma

Fleet Sales Manager francesco.di.palma@toyota-europe.com

V40 and V40 Cross Country are consolidating their appeal to business customers. Volvo is seeing an increase in fleet sales in many markets outside Europe, in particular China.

Strategy towards Fleet Customers Volvo is implementing a new structure and way of working between the central fleet team and its local markets. The Swedish-based manufacturer will also be rolling out the “Volvo way” in terms of communication and relationship with its customers as well as focusing on where it can differentiate from other brands. It is also looking to increase its share of

Top Fleet Model - Volvo V40

small fleet business where we see real opportunities, whilst keeping its position and focus on international and local key accounts.

Fleet contact

Javier Vazquez

Global Accounts Director javier.vazquez@volvocars.com

Volkswagen Group Importance of Car Fleet/B2B Sales Fleet sales are of great importance for the Volkswagen Group, both at a domestic and international level.

This is evidenced by the volumes ordered by its biggest customers.

But for Volkswagen Group, these big clients play an important role that transcends mere sales numbers: after all, they are the ‘triers’ of new technologies, thus helping introduce and highlight the most recent developments in the markets.

Additionally, the feedback Volkswagen Group gets from fleet customers is an important help for the brands, as

Mercedes-Benz Cars Importance of Car Fleet/B2B Sales In 2013, Mercedes-Benz Corporate Sales was one of the fastest-growing channels in the premium segment – not only within Mercedes-Benz Cars, but also compared to its competitors.

Products and Sales Mercedes-Benz see very positive signs in Europe’s recovery and very good perspective worldwide, expecting growth of 4- 5% for the total car market and growth of 7–9% in the premium segment worldwide. The brand expects that fleet sales will at least grow with the market. Outside Europe, where corporate sales keep gaining importance, they should

those suggestions help them finetune the development of their new technologies.

Products and Sales The demand in emerging markets has been on the increase, in general and from fleet customers. But the Western European market has also been making a come-back, especially in the last months of 2013.

This is hopeful, as it may indicate a positive trend for 2014.

Strategy towards Fleet Customers For the Volkswagen Group, the customer is always the focus of attention.

This is why, in addition to its balanced and innovative product portfolio, the brand will also be looking for best

Top Fleet Model - Volkswagen Golf

practices in the Group and in its different markets. It will also adjust its internal processes and IT systems to changes in market complexity. All brands of Volkswagen Group will be helped by an even better uptake of its worldwide customer feedback.

Fleet contact

Ralf Kostrewa

Head of Group Fleet Sales International ralf.kostrewa@volkswagen.de

even outperform the total market.

For its own brand, Mercedes-Benz is optimistic that it can continue to outperform the total market and especially the premium segment.

Strategy towards Fleet Customers Mercedes-Benz is committed to continuing and further evolving in offering tailored solutions to customer-specific requirements with regards to product portfolio, models/engines, product specification combined with downstream products as aftersales service, financing, leasing, fleet management etc.

The car manufacturer sets a clear focus on costumer dedication. It assures a consistent offer of products

Top Fleet Model - Mercedes Benz C-Class

and services with a joint, aligned and focused approach on international, regional or national level depending on the customers’ needs, their regional core areas and their diversion.

Fleet contact

Volker Schneider

International Corporate Sales Manager, Coordination International Key Account Management & International Leasing volker.schneider@daimler.com

Frank Jacobs & Steven Schoefs *Based on the answers from the car manufacturers on the 2014 Fleet Europe Car Fleet Strategy Questionnaire.

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DOSSIER I Car Manufacturers’ Fleet Strategy 2014

Forewarned is forearmed No one knows for certain what the future holds, but we have nevertheless asked the car fleet executives of the OEMs to forecast fleet trends and to share with us their best piece of advice for successful collaboration with fleet-owners.

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hen asked what the ‘next big thing’ is, OEMs’ answers vary, but some recurring trends are outlined: from awareness-raising on CO2 emissions to alternative powertrains and new technologies (such as telematics and driver assistance systems), through internationalization and the integration of mobility solutions within the fleet strategy. About how fleet owners can better collaborate with them, OEMs unanimously preach open and transparent communication, in order to set and reach common goals and build a healthy and long-lasting relationship. ■ Laetitia Fernandez & Steven Schoefs

�. The next big thing in international fleet business �. A piece of advice to fleet owners �. “The future of international fleet business will continue to depend on the two ever-increasing trends; the increasing presence of new technology and the unwavering focus on cost reduction from International Fleet operators. On the new technology topic, the increasing presence of alternative powertrains and new technologies will continue given the continued focus on the lowering of new vehicle CO2 emissions.” �. “There is clearly a trend towards the internationalisation, with the tendering process now incorporating

Mark Howlett - Fleet Sales Manager Europe, Kia

a growing number of countries. With a truly global presence, Kia is well placed to cater for the needs of the International Fleet. Transparency of information and sufficient time to prepare tender responses is key in order to ensure a high quality tender response, as well as a competitive, well considered offer from the OEM.”

�. “The combination of global car fleet management and the merge between fleet procurement and travel management is changing the face of the fleet industry. Integrated mobility solutions will be in ever greater demand.”

�. “Intensify the exchange with your key OEMs

Christel Reynaerts - Head of International Corporate Sales, BMW Group

to ensure that you have the latest information on the product range but also to understand your supplier´s longer term strategy, its values. When you review your policy, make sure to experience the vehicles yourself.”

�. “CNG is the simplest, most economic and most “ecological” solution within all available fuels, and the most appropriate technological choice for a sustainable mobility. We are convinced that the international fleet sector will follow this trend.”

�. “Be open and clear about your needs Enrico Atanasio - EMEA Head of Fleet & Used Cars, Fiat Group Automobiles

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and requirements, because the more information your suppliers have, the better they can satisfy your needs.”

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�. “We believe that the arrival of our new compact car in 2015, the Infiniti Q30, will give a new perspective on C-segment premium cars in the fleet market.” �. “Keeping a healthy relationship with OEMs is key. In the era of new technologies, personal contact is still the best way to manage business.”

Carlos Montenegro Corporate sales Director Europe, Infiniti

�. “Connectivity and telematics have entered the scene, but we will now have to look at how they can improve safety and productivity, and how to make them user-friendly.” �. “We would advise fleet owners to look at the markets, segment and service coverage OEMs can provide them. Another important thing to look at is the TCO and management simplification.”

Jordi Vila-Onses - General Manager Fleet & LCV Corporate Sales Europe, Nissan

Emil Gaynor - Global Corporate Strategy Manager, Jaguar Land Rover

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

�. “We foresee further evolution with small-

�. “There is a clear trend towards smart mobil-

er fleets seeking to acquire vehicles internationally, new OEM players entering the international fleet sector, and closer co-operation between OEMs and leasing companies in international tenders.”

ity solutions, including new ways of conducting business in a fully connected society. Your international fleet policy will reflect companies’ core values – driver wellbeing, corporate impact on the environment and society in general.”

�. “Pre-tender, we advise that customers

�. “When designing an international fleet policy, it's important to maintain a balance between driver choice and supplier consolidation. We would also recommend that fleet policy should be part of a larger mobility vision - which should be embedded within all areas of the organisation.”

brief OEMs on the forthcoming tender. During the tender process, customers should ensure communication channels are open to allow for Q&A. Post tender, customers should actively support implementation of the agreement, especially at market level.”

�. “Autonomous driving and related driver assistance systems is the next big thing. For instance, Mercedes-Benz Intelligent Drive combines technologies which support the driver and make motoring both safer and more comfortable.”

�. “Sustainability and internationalization.

�. “Discussing common goals and achievable solutions for both parties is essential; as is sharing all information and issues in a transparent manner through regular business reviews. This ensures that the agreed terms will be implemented as smoothly as possible.”

�. “We're the only manufacturer to have

�. “We believe CO2 legislation will become

�. “Selling to fleet cars, services, financing AND car-sharing.”

increasingly important around the globe as more governments move to CO2-based car tax systems. On the safety side, in line with Duty of Care, active safety systems will further shape car fleet policies are put together.”

Javier Vazquez - Global Accounts Director, Volvo

Tenders include more and more countries. At the same time, efforts are made to reduce the cost of complexity. We're also working to meet our customers' evolving demands.”

a complete portfolio for all car fleet segments. We also offer global financing and dedicated fleet services: this is much more cost-effective than having to launch queries for each market separately.”

Martin Jahn - Managing Director, Volkswagen Group Fleet International

�. “Ensure that you have full internal coordination (or a top level sponsor) with the countries you wish to deploy, to avoid expending resources.”

�. “Make sure that you can control and imIan Hucker - Director European Fleet & Commercial Vehicles, Opel/Vauxhall

plement at local level the fleet policies that have been agreed, implemented and reinforced at central level.”

�. “Global telematics data systems, like the one we are launching with Orange Business Services, will have a strong impact on how fleets are managed.”

Olivier Bodet - B2B Director, PSA Peugeot Citroën

�. “Simplicity and efficiency are essential when launching an international tender. Fleet managers also need to have a long-term view on things and to give more weight to the countries in the decision-making process.”

Emmanuel Longeard International Key Accounts Director, Renault

�. “If in Europe public opinion is still heavily driven by CO2 emissions, in the U.S. and Japan the focus is on NOx and PM. With globalisation we believe it is important to start having a balanced approach towards all types of emissions.” �. “We advise fleet-owners to ensure a local connection between the OEM and the customer, and to activate a communication channel to improve the relationship and to achieve shared goals.”

Johan Verbois - General Manager Fleet & Network Europe, Toyota & Lexus

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DOSSIER I Car Manufacturers’ Fleet Strategy 2014

Coming together to create value When the time comes to enter negotiations with OEMs the imagination of buyers is sparked. There’s an opportunity to do things differently and make savings to satisfy the paymasters further up the chain of command.

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e asked three car fleet experts about creating value and building relationships with OEMs.

Tobias Reich, Automotive expert, PA Consulting Group “For fleet directors and CFOs, having a specific long-term strategy for the right type and number of vehicles is vital in reducing fleet costs and CO2 emissions, ultimately contributing to a stronger bottom line. This should be based on understanding the business operating model for distribution of goods and services and adapting a ‘total cost of mobility’ approach, rather than TCO.”

with some of these being part of the same group (e.g. PSA, Volkswagen Group). The preferred partnership model presents Ingersoll Rand with the opportunity to negotiate an upfront discount with each brand on a per country, per model basis. The challenge we have at the moment however, is that no suppliers are able to provide information on discounts for 2014, whilst we need to place orders.”

Tobias Reich Stephan Selis “Recent technology-based solutions allow corporations “It’s a temporary stumbling block to share the costs of company cars that’s inconvenient, but once agreeamongst internal cost centers, or to ments are in place value is created, collect a contribution from employas they give International fleet manees for private use – a good example agers a framework to disseminate is ‘Share Your Fleet’ by PSA and Sixt. information on a country by country This offer allows all corporate users to basis.“ share vehicles via an online portal for professional and private use; it can re“A frustration however can be the duce cost of mobility or fleet volume in quality of discount data. We have a company by more than 30 per cent.” an International Account Manager at each brand which is great, but the discount data at a local level can be better than what we that held centrally obtained. Data is the Travel & Fleet Manager EMEIA, Inkey to better management and this gersoll Rand Corporate is something I’m working with our “Ingersoll Rand has preferred partpartners to improve on.” nerships with 9 brands across EMEIA,

Stephan Selis,

Nick Jones, CGMA, Head of Sourcing – Fleet Xchanging “The best OEMs to work with are those who proactively communicate well. Where the OEM takes the time to understand specific customer needs they can adjust their communication plan accordingly. For the customer there should be no surprises."

Nick Jones "This communication covers both strategic and operational areas.

Strategic considerations range from business updates to new product launches. Operational information relates to areas such as warranty, maintenance, dealer network and vehicle lead times. On a basic level this means the OEM providing manufacturer terms in advance of existing ones expiring. The last thing customers want is vehicles falling outside of bands or incurring more cost than necessary. Support with new model and variant introductions, especially in association with leasing companies pricing is also important to ensure continuity of vehicle selection.” ■ Jonathan Green

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DOSSIER I Car Manufacturers’ Fleet Strategy 2014

The future of innovation is here The future is already here, it’s just not very evenly distributed. That quote by cyberpunk writer William Gibson may be an accurate description of the state of innovation in today’s automotive industry. While some manufacturers pay lip service to the future, others are investing heavily in technology, transforming what were merely cars only yesterday into computers on wheels: miracles of interconnectivity, programmed to save the environment, enhance our lives and improve the management and productivity of your fleet.

T

he future of mobility will be smart, and manufacturers too must prepare for a time when mobility solutions will be the result of a complex equation that includes time, money, fuel, and the availability of transportation alternatives. Most if not all OEMs are at least trialling some ideas for that smart future, but some have a sophisticated and highly developed policy.

than 26,000 registered customers in its first month, January 2014. The scheme’s success ensures its expansion to Rome, Turin and outside Italy later this year. As part of its 7-year Warranty, Kia recently launched a 7-year map update, guaranteeing access to the most up-to-date satellite navigation data for the full duration of the Warranty, a significant benefit for fleet managers and their customers.

One of those is BMW, which Volvo is going for interactivity proposes its Connectedwith Car2Car Technology, enDrive function and related abling vehicles to communiapps as a means of intecate with each other, and with the traffic environment around grating public transport and them - vital information is excar-sharing in the mobility package. Specific applichanged via wifi. In October 2013, Volvo conducted the first cations include ParkNow, ever real-traffic demonstration which locates the nearest of Adaptive Cruise Control with off-street parking space; steer assist, which is preparParkatmyHouse.com, which allows users to rent out valing the way for full autonomous The Drive Kit Plus for iPhone, together with the Digdriving. In 2017, 100 self-driving uable parking spaces; and ital DriveStyle app make it possible to seamlessly inVolvos will use public roads in MyCityWay NOW, a free app tegrate iPhones in the Mercedes-Benz vehicles.

Gothenburg for the world’s first offering information and inlarge-scale autonomous driving spiration for the urban enviproject – which will include autonomous parking as well, a ronment. The brand’s BMWi series will be used to build on technology Volvo demonstrated in the summer of 2013. In these offers, creating a ‘holistic mobility service’.

2013, Toyota premiered the i-Road Electric Vehicle, which includes Active Lean technology to provide a safe, intuitive Fiat’s smart mobility solution of choice is car-sharing, and enjoyable helmet-free driving experience over a range which it is already trialling in Milan as Enjoy, an experof up to 50 km on a single charge. In 2014, the ultra-comiment in collaboration with major domestic companies, providing distinctly red Fiat 500s as shared cars for more pact urban vehicle will be trialled in Grenoble.

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Renault’s Next Two concept leads to an electric car that takes autonomous drive into a new era.

Mercedes-Benz has a two-pronged approach to smart mobility: digitalisation and providing alternatives. Examples in the first category include Comand Online and Digital Drive Style, two technologies enabling communication with the outside world, which together with Intelligent Drive earned the Mercedes S-Class the title ‘Connected Car of the Year’. Another is the brand's collaboration with Pebble, the smart watch maker; Nest, the smart home outfitter; and Google Glass. As for the second category, Daimler Mobility Services has earned a track record in car-sharing with car2go (over 500,000 customers in 25 locations worldwide); has developed moovel (an app brokering connections with different local transportation systems); and recently started park2gether (an app to find a parking spot in urban environments).

Some of the smaller trials include Jaguar’s partnership with Hertz for mobility cars at Lufthansa, providing its employees with mobility on a shorter or longer-term hire basis; PSA Peugeot Citroën’s ‘Share Your Fleet’ mobility solutions in cooperation with Sixt; Renault’s R-Link connected services, with over 100 applications for drivers and fleet managers; Infiniti’s DAS and ALC capabilities, pointing the way towards autonomous driving; and the Opel Insignia’s touchpad in the centre console as the gateway to its infotainment and navigational systems.

The future is connected As the Information Age is upgraded to an Era of Interconnectivity, cars will increasingly be linked to each other, to their environment and, if corporate, to the fleet management, which will measure and if necessary fine-tune driver behaviour.

Launched in January 2014, Volvo’s cloud-based Sensus Connect offers total connectivity to on-board infotainment and navigation solutions.

Among other things, it allows the driver to find and pay for parking from their car, discover new restaurants at their destination, and stream their favourite music seamlessly. Another connectivity project is Volvo On Call, a built-in assistance service that puts you in constant touch with your Volvo, allowing you to check your fuel, heat your car, lock and unlock the doors, track your vehicle and more – all with your smartphone.

The Fiat-Chrysler group has developed Uconnect, now available in the group’s new models, in combination with Fiat Blue&Me. It keeps drivers and passengers connected to the outside world via a 5” colour screen that interfaces with any and all multimedia devices, allows hands-free calling and texting via Bluetooth, provides navigational assistance and information on speed cameras and traffic lights.

Volkswagen is working on car-to-car and car-to-infrastructure systems that will provide early warning of traffic problems, report these problems to the proper authorities, allow communication with others in traffic, improve navigation, and allow the download of information relevant to the driver (e.g.

Google Earth or Google Street View).

Infiniti’s InTouch provides opportunities to stay connected and work while in your car. The system can be loaded with your favourite smartphone apps (and their future upgrades) so they are safely available while driving – including a text-to-speech technology, reading out your emails as they arrive.

Renault recently presented Next Two, a prototype of autonomous and connected vehicle. It includes advanced safety systems and new connected services (via 4G, wifi, etc.) such as videoconferencing, e-ticketing and local information gathering.

BMW sees its growing ConnectedDrive portfolio as a key instrument for corporate cars to reduce cost, emissions and accidents. The Real Time Traffic Information calculates the shortest, most efficient routes, reducing cost.

Intelligent lane departure warning and active cruise control systems increase safety, as do message dictating and text to speech functions. ■ Frank Jacobs

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DOSSIER I Car Manufacturers' Fleet Strategy

Tomorrow in your fleet Once again Palexpo hosts the Geneva Motor Show. This year the show runs from 6 to 16 March 2014. Here is a quick look at some of the many new cars and innovations presented.

1 - BMW 2 Series Active Tourer BMW is unveiling its very first mono-volume in Geneva. This compact model (4m34 long), a direct competitor to the Mercedes B-Class, also includes another major ‘first’ for BMW, because power from the engines (including a new three cylinder petrol unit) will be delivered through the front wheels.

2 - Citroën C4 Cactus With the new and original “Cactus”, Citroën is going back to the basics of comfort and lightweightness, while offering intelligent features. Worth mentioning in this regard, for example, are the "airbumps" - pliable strips containing air pockets, which are standard features in the sides and bumpers.

3 - Peugeot 308 SW Following the launch of the 308 saloon last October, Peugeot is extending its range once again in Geneva with the SW estate model, which is based on the new midsize saloon. Thanks to its length, extended to 4.58 m, the SW version offers a generous 610 l of boot space.

4 - Volkswagen Polo The popular Volkswagen Polo is bringing a major technical redesign to Geneva. Of note are the new 3 and 4 cylinder engines that meet the forthcoming anti-pollution standards. Other features worth mentioning are the inclusion of an active speed regulator (capable of regulating the distance to the vehicle in front) and directional damping.

5 - Jeep Cherokee Jeep's midrange SUV model, the fabled Cherokee, has undergone a redesign. Besides the slight modification in look, of particular note is the inclusion of a 9-speed automatic gearbox in the range, coupled with a 2.0 l 170 bhp turbo diesel engine from Fiat or with petrol engines.

6 - Suzuki Celerio Following the model designed for the Indian market unveiled in Delhi, Suzuki is showcasing the European version of its new city car, the Celerio, in Geneva. Specifically it is offering engines adapted for the Old Continent at the event.

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1 BMW 2 Series Active Tourer

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Citroën C4 Cactus

Opel Adam Rocks

3 Peugeot 308 SW 11 BMW 4 Series Gran Coupé & X4

5 Jeep Cherokee

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Suzuki Celerio

Opel Vivaro

12 - Vivaro & Trafic

They won't be in Geneva but, in the wake of this major show, Opel and Renault will be unveiling the new generation of their jointly-developed utility vehicles - the Vivaro and Trafic. Compared to the previous models launched in 2001, these two future models are more muscular and stylish. They will also boast numerous technical innovations and modernised features. The forthcoming Vivaro and Trafic will obviously still be available in utility and people carrier versions.

7 - Citroën C1 / Peugeot 108 / Toyota Aygo threesome French group PSA and Japanese manufacturer Toyota are continuing on their joint venture and presenting the next generation of their current city cars in Geneva. In addition to a more sporting look, the three non-identical "triplets" have new engines, notably the new PSA group three cylinder models, to provide good driving performance while keeping down CO2/km emissions.

4 Volkswagen Polo

9 Mercedes V Class

7 Peugeot 108

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Renault Trafic

Renault Twingo

8 - Renault Twingo The new Twingo is a physical manifestation of the partnership between Mercedes and Renault, sharing its underlying technology with the new generation of four-seater Smart. The relationship is pushing Renault to fundamentally modify the design of its famous city car: the Twingo is morphing from front-wheel drive to rear-wheel drive!

9 - Mercedes V Class Designed as a people carrier, the new Mercedes V Class stands out from its competitors by its flawless finish, worthy of a luxury car, and large number of features. For example, it will be inaugurating an automated stabilisation system against side winds and will have full LED lighting, inspired by those in the new S Class.

10 - Opel Adam Rocks Opel is bringing a definitive Adam Rocks to Geneva.

It is effectively a combination of the convertible and the mini-crossover. Notable features are the robust look, reinforced bodywork and raised base, plus the large, flexible retractable roof.

11 - BMW 4 Series Gran Coupé & X4 Having lost its two rear doors, the BMW 3 Series has ultimately morphed into the 4 Series coupé.

For the Geneva show, BMW has decided to add two additional doors to the 4 Series, transforming it into a 4 Series Gran Coupé (see photo).

BMW is continuing to diversify its range. This time it's the turn of the X range to welcome a new member - the X4. This is an SUV with a coupé shape that is more compact than the current X6. ■

Jean-François Christiaens

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DOSSIER I Car Manufacturers’ Fleet Strategy 2014

Fleet managers need to tell what is ‘best’ for their business The relationship between fleet managers and OEMs works best when both know, and let the other party know in no uncertain terms, what’s best for their business. Manufacturers, for their part, are confident of the value of their offer, but still see some room for improvement - also from the customers themselves! Fleet managers: this is an invitation to speak your mind!

A lot of manufacturers take advantage of the global scope of their brand to offer agreements to their fleet customers that are equally global. These international fleet agreements (IFAs; a.k.a. International Framework Agreements) often are an essential element of a brand’s sales strategy, as they offer the client simplicity, security and stability through globally agreed product portfolios, financing methods and aftersales options.

PSA Peugeot Citroën, for instance, has 145 IFAs with major fleet customers and the top 6 leasing companies. The resulting international fleet sales represent about 50,000 units per annum.

Volvo has slightly less – about 120 IFAs – but claims to be serving international fleet customers longer than any other manufacturer, since 1986.

The Swedish brand’s IFAs, like those of many other brands, are focused on Asia, Europe and North America – still the world’s three main markets.

With a new Global Fleet organisation and a Global Account team, Volvo hopes to get even closer to its international fleet customers.

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Five years ago, Mercedes-Benz had 50 IFAs – today it has around 280, many of them based in Europe, but not limited to there. This is part of the brand’s ‘Follow the Customer’ strategy, offering products and services to clients as they expand in North America, the BRICs and elsewhere. Nissan currently has 25 IFAs, but intends to catch up, aiming for 45 in 2014 and 100 by 2017.

In 2013, Opel/Vauxhall registered a healthy 14% growth, year on year, in the number of its IFAs, showing the brand’s growing relevance to global companies – and the increased importance of IFAs per se.

Other brands with strong international fleet agreements are Renault-Nissan (more than 100), Fiat-Chrysler (more than 70), and Volkswagen, which has two kinds of deals with its global fleet customers: International Master Agreements (IMAs), cooperation frameworks comparable to IFAs; and International Bonus Agreements (IBAs), offering international fleet customers additional incentives to use VW products in any and all of their local markets.

Manufacturers want the best for their international fleet clients, and these clients want the best from manufacturers. That sounds perfect, but it all depends on the definition of ‘best’.

Main assets But the success of an OEM’s international fleet policy is of course determined first and foremost by the quality of its offer. Few brands have the luxury of a Maserati, which suffices with seeing itself as “the absolute opposite of ordinary – also in the fleet business”.

Most work a lot harder at convincing international fleet managers that they have what it takes to make a positive difference to their business.

Most echo Ford, which prides itself on its global dealership network as an essential tool to deliver standardised solutions throughout the world.

Tesla, with a more rudimentary network, compensates by offering VIP treatment (and of course the coveted zero-emission Model S).

Sound advice How to move forward? OEMs have a few tips for fleet managers to improve their relationship with them: • Even in the era of new technologies, personal contact is still the best way to manage business.

• Make sure that you (as fleet manager) can control and implement at a local level the fleet policies that have been agreed, implemented and reinforced at a global level.

• Make a strong selection of OEMs, empower the countries, work on the long term.

• Ensure that you have full internal coordination (or a top level sponsor) with the countries you wish to deploy.

• Maintain a balance between driver choice and supplier consolidation: drivers are your internal customers, their satisfaction will lead to a realisation of the policy.

Renault promises both: fleet teams at international and national levels, and consistent VIP treatment at every level. Brands like Opel/Vauxhall and Infiniti explicitly refer to the larger corporations in which they are embedded.

As part of GM, Opel/Vauxhall can offer a 360-degree service to any pan-European or global partner.

Infiniti fuses its ‘personalised’ approach as a small luxury brand with the global presence of the Renault-Nissan Alliance in over 50 countries.

Global contracts offer the opportunity to extend agreements to new countries, new car models, new specifications. Which means that it helps if manufacturers have as wide a range of models as possible.

Fiat-Chrysler, for example, boasts a range of more than 20 passenger car models (covering over 80% of total market demand), and 9 LCV models (covering 100% of the demand up to 2 tons). Needless to say that the LCV sector is very important to Fiat, which is the only OEM with a brand dedicated exclusively to LCV. The manufacturer can offer flexible solutions and customisations for its wide range through more than 10,000 workshops and 19 national networks across Europe.

Mercedes-Benz claims it offers the widest range of vehicle on the market, from smart to S-Class, all of which meet the TCO, emissions, comfort, safety and attractiveness criteria so important to fleet requirements. Plus of course a global

‘one-stop shop’ for multinationals with fleets across the world.

PSA Peugeot Citroën – itself an alliance of sorts – boasts a wide range of cars and vans, 10,000 sales and service points and 2,000 business centres globally, with dedicated International Key Account Managers in France, the UK, Germany and other major countries, dealing for both the group’s main brands.

Kia proudly advertises its broad product line-up – from Soul (soon in EV version) and Optima (also as Hybrid) to cee’d (3-door to Wagon), Picanto and more. Indeed, the brand’s successful coverage of the private retail segment is the main driver to enhance its international fleet business.

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Toyota too offers “one of the most complete” model ranges, from small cars to all-terrain vehicles, complemented naturally with professional fleet teams in all European countries. Volvo stresses its leadership in safety and innovation as important assets for fleet mobility.

Indeed, some re-designs are specifically aimed at the fleet market – as for instance with Jaguar/Land Rover’s models Range Rover Evoque, Jaguar XF and XF Sportbrake.

Relationship Manufacturers want the best for their international fleet clients, and these clients want the best from manufacturers. That sounds like a perfect relationship, but it all depends on the definition of ‘best’.

For the relationship to work, OEMs stress the importance of a few key elements.

Firstly, there needs to be reliable, transparent communication between manufacturer and international fleet customer – both need to agree on a shared vision and strategy, and need to maintain (or adjust) this shared vision in regular reviews.

Only then can the customer’s particular needs be identified correctly, and can the manufacturer tailor-make solutions to fit those needs, on a local and global level.

In surveying the field, international fleet managers should make sure they ask a few pertinent questions of the OEMs. Not just whether their range meets the requirements, but also whether their markets cover the required area (and whether

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they offer the same range across all markets).

can take some steps of their own to improve their relationship with the manufacturers.

The success of an OEM’s international fleet policy is determined by the quality of its offer.

To deliver those solutions, the manufacturer needs a service network that is both locally and globally flexible. In all these steps, a good partnership with the leasing companies is crucial.

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The car manufacturer needs a dedicated service network that is both locally and globally flexible.

Also: What is the comparative TCO for their range, and which products will they be offering to fleet customers a few years down the road? How do they compare to their competitors? And, not incidentally, how exactly do they deal with international key accounts? Will all globally agreed contract clauses also be honoured at a local level?

But international fleet customers

And it all boils down to more and better information: manufacturers are eager to know more about the different car policies, overall fleet composition (size per market and models per segment), and planned renewal/purchase volumes.

This will greatly enhance the ability of manufacturers to make more precise offers. ■

Frank Jacobs

Conception : Chaïkana - Crédits photos : Thinkstock

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DOSSIER I Car Manufacturers’ Fleet Strategy 2014

Different paths to the same green future The future is green. That much, all manufacturers can agree on. But everybody is on a different path to that green future. Some manufacturers are betting on electric, others on hybrids, or CNG, or other solutions.

It will be interesting to see which bet(s) will yield the best result – not in the least for fleet managers.

O

............................................................................ ne driver for change are the EU’s CO2 emission norms for 2015, which most manufacturers are already adapting to, each in such a way that they can claim to be cleanest (in their category), or getting cleaner fastest, or have the most low- or no-emission models... Here as well, it’s up to fleet managers to pick the ‘best result’ most relevant to their company. One manufacturer is already in the future, so to speak. Tesla, the electric-only brand, has the best emissions average – zero! - and thus no need to invest in alternatives, as it “believes in an uncompromising full-electric solution”. On the other end of the spectrum, Maserati’s fleet models Ghibli and Quattroporte (both diesels) have an average CO2 emission of 160 g/km. With some work ahead of it in order to achieve the EU’s emissions target for 2015, the brand claims to be “constantly investing in the improvement of efficiency”.

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At the end of 2013, wordwide sales of Toyota hybrids topped 6 Million Units.

CNG That leaves a lot of room for the other OEMs to range in – both with respect to CO2 solutions and powertrain alternatives. Fiat, for one, is remarkable in its dedication to compressed natural gas as an alternative fuel. CNG is clean, cheap and potentially renewable, the Italian manufacturer claims. For over 15 years, Fiat has led the field in Europe in OEM methane fuel systems, being the only one to offer a range of eco-friendly bi-fuel (methane/petrol) models, such as the 0.9 TwinAir Turbo bi-fuel CNG, awarded ‘Best Green Engine 2013’. Fiat claims its average CO2 emissions have been the lowest of any major European manufacturer from 2006 (137.3 g/km) to 2012 (119.8 g/km), placing it far below the EU’s 130 g target for 2015.

Volkswagen (average CO2 emissions: 134 g CO2) also uses CNG, offering TCO benefits through fuel savings of up to 30% (compared to diesel) and 50% (compared to petrol). But Volkswagen Group also banks on electric mobility, introducing the e-Up!, the e-Golf and the Audi A3 Sportback e-tron – offering plug-in hybrids for customers with ‘range anxiety’.

Zero emissions Ford also has an all-electric model available in Europe: the Focus BEV (Battery-Electric Vehicle). But the American brand will shortly also be introducing hybrid versions of the C-Max and Mondeo in Europe.

Opel’s showpiece in alternative powertrains is the Ampera, its range-extended electric car. The first electric vehicle from a European manufacturer, the Ampera has already been chosen by over 7,700 customers and by now has clocked up over 100 million km on pure electric power since its market introduction almost 2 years ago. In 2012, the Ampera was the best-selling e-car in Europe, and voted Car of the Year. In the Netherlands, Europe’s most important e-car market, the Ampera has

a market share of 40%. In Germany, the only major e-car market in Europe without incentive programmes, its share has grown to 10%, and after a price reduction in September 2013 to 38,300 led to a doubling of orders, looks set to increase.

With more than $4 billion invested in electric powertrains, Nissan is aiming at global leadership in zero-emission mobility. Its Nissan LEAF puts it well on that trajectory: it is the world’s best-selling electric car, clocking up almost 1 billion km since its launch. Next stop: the eNV200, Nissan’s 100% electric medium van.

Renault (with a CO2 emissions average of 115.9 g/km “the European leader in low emissions”) claims to be the only brand offering a range of pure electric, zero-emissions vehicles – four in all: Twizy, ZOE, Fluence ZE and Kangoo ZE. To make this a more affordable option, Renault offers battery lease, which also provides reassurance on battery performance. Its focus on electric doesn’t stop Renault from working with all available technologies towards its Holy Grail: a performance of 2 l/100 km.

In 2014, Kia will launch the all-electric Kia soul, with a lithium-ion battery that can be charged in 25 minutes at a fast-charging station. But the brand will also update the Optima Hybrid, which was launched in 2011.

Hybrids Indeed, hybrids are the way most brands choose to progress on the path to a greener future. But ‘hybrid’ is of course not a single technology, but a catch-all term for a wide variety of options.

Take BMW, which acknowledges that CO2 emissions are an important key performance indicator (KPI) for corporate customers, as they impact directly on their fleet’s running costs. The brand offers 13 BMW and 15 MINI products with CO2 emission values under 120 grams.

The best performer – obviously – is the BMW i3, the brand’s zero-emission electric car. The i3 was launched in November 2013 in Europe, and will be rolled out in the US and other markets from Spring 2014 onwards.

The next BMW with an alternate powertrain will be the i8, a plug-in hybrid ready for delivery to the first customers from May 2014. With this i-series, BMW is developing ideas in electro-mobility on the basis of both existing technologies and on the innovative principles of BMW EfficientDynamics.

Or take Mercedes-Benz, also working on electrification – but using a variety of technologies. The brand’s ‘Road to Emission-free Driving’ leads past optimised combustion engines, and various types of hybrids and electric drives, powered by batteries or fuel cells.

Mercedes’ parent Daimler has 8 emission-free vehicles in its range, like the E-smart and the SLS AMG Coupé Electric Drive. With fuel-optimised petrol and diesel models, hybrids and a plug-in hybrid, the new S-Class combines luxury and sustainability. The S 500 Plug-in Hybrid even achieves 3 l/100 km, with a purely electric range of 30 km and up. The new C-Class will also include a plug-in version, and the B-Class Electric Drive will become available in Europe after its launch in the US later this year. Completing the e-portfolio are the next generation of the smart fortwo electric drive – also as a four-seater – coming up in the next few years. From 2017, the first competitive fuel cell e-car will go into production, in cooperation with Ford and Nissan.

Diesel-electric By 2013, CO2 emissions for Mercedes-Benz’s entire European new car fleet were 134 g/km, 40% less than 1995 – the largest drop of all premium car manufacturers.

With over 50 Mercedes-Benz models emitting less than 120 g/km, the brand is the most efficient one in the premium segment.

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air as energy storage). Average CO2 emissions for the entire group are 116.2 grams/km – but 55% of its sales are of models with emissions of less than 111 grams of CO2 per km.

Now that Volkswagen Group also banks on electric mobility the electrified highway could instantly become much more popular with customers.

Toyota also continues to focus on hybrid, exactly because the system is so modular and adaptable. With its full-hybrid sales in Europe reaching 156,863 units, up 43% year-on-year, Toyota is the clear market leader. In 2013, full hybrids made up close to 20% of Toyota Motor Europe’s total sales, and that share is predicted to increase further in 2014.

Toyota’s fuel cell hybrid vehicle slated for launch in 2015 is the next logical step – one step closer to the ultimate zero-emission car, with hydrogen as the ideal, ultra-clean energy carrier.

With more than $4 billion invested in electric powertrains, Nissan is aiming at global leadership in zero-emission mobility.

The S500 Plug-in Hybrid, presented at 2013’s Frankfurt Motor Show, emits just 69 g CO2/km. Volvo also focuses on electrification and aims to become a market leader in plugin hybrids. Its finest example is the Volvo V60 Plug-in Hybrid, launched in 2012 as the world’s first diesel-powered plug-in hybrid. In 2013 then came the release of the new Drive-E powertrains and the addition of the V40, with emissions from 88 g/km, with more hybrids to follow soon. Thanks in part to its hybrid models, Volvo’s CO2 emissions average across its entire range was 142.2 g/km in 2012 – placing it below its EU target for 2015 of 143.3 g/km three years ahead of schedule.

by 24%, and will reduce them by a further 20% by 2020. Playing a large part in this reduction is the new hybrid diesel-electric powertrain on Range Rover and Range Rover Sport, reducing CO2 emissions by 26%.

With 103.6 g/km, Toyota & Lexus in 2012 posted the lowest fleet-wide CO2 emissions in Europe, putting the group 24.3 g/km ahead of the its emissions target for 2012 as set by Europe.

Considering the huge investments new technologies require, each brand’s individual experiments with alternate powertrains undoubtedly are a passing phase. The future will be one of increase collaboration between brands. As already shown by the aforementioned fuel cell e-car to be produced by Mercedes-Benz, Ford and Nissan.

Most car manufacturers are already adapting to the EU’s CO2 emissions norms for 2015.

Since 2007, Jaguar has reduced emissions of its European models

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Hybrid-air, hydrogen and beyond PSA Peugeot Citroën is now focusing on hybrid diesel, but also electric and hybrid-air (using compressed

Another example is Infiniti’s statement that “[its] current range includes petrol, diesel and direct response hybrid powertrains, [but if] future demand for EV premium cars on the fleet market warrants it, Infiniti can easily access this technology through [its] Alliance [with Renault-Nissan]”. ■

Frank Jacobs

www.citroen.com

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DOSSIER I Car Manufacturers’ Fleet Strategy 2014

One world, many global strategies Most OEMs have a global presence, either on their own strength or through alliances, and consequently have developed global strategies to match the worldwide reach of some of their customers. While many of those strategies will necessarily have similarities, fleet managers will need to examine each carefully to find the ones that best suit the needs and ambitions of their company.

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he differences between manufacturers' global strategies become apparent already in their initial approach of potential global customers – i.e. multinationals with have multiple fleets in two or more of the world's regions.

Global Fleet approach The general issue is the same: provide a single point of contact, but ensure that information and implementation pervade the network on the smallest possible level. This is crucial – and quite difficult to achieve. Some brands opt for a more top-down approach. At Mercedes-Benz, for instance, International Corporate Sales will sit down with the client to work out the best Global Fleet approach across the relevant markets. All requirements and conditions are analysed through an integrated approach by Corporate Sales, Daimler Financial Services and Global Services and Parts to make a competitive offer for an International Framework Agreement (IFA). The International Key Account Manager (IKAM) will then help the client plan, control and monitor the IFA's implementation.

Opel/Vauxhall practices an almost similar approach: a Pan-European Corporate Account team, based in key markets to ensure familiarity with customer demands, will support clients looking for a Pan-European or Global Agreement. Additional expertise then comes from the group's international team of fleet professionals, who will also consult on how the client can derive maximum benefit from the agreement. This approach allows customers to further refine their request for quotation (RFQ).

At Volvo, the single point of contact is the Global Account Manager (GAM), who will develop the tender in conjunction with the National Fleet Managers. After the IFA, Volvo relies on the strength of its processes to ensure international and local implementation. International meetings with the client will establish and review Key Performance Indicators (KPIs), a process that will be repeated at

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national level – often with the GAM in attendance. Simultaneously, a high level of interaction with lease companies and service providers keeps everybody on board to deliver the highest possible driver satisfaction.

How to tender Listening to the OEMs themselves, the tender check list reads like this.

Fleet managers should: • clearly define the objectives of their fleet policy before drawing up the tender, so that it is formulated to benefit them to the max.

• assess the operational, legal and financial implications of their tender before taking it to the OEM. • make sure they have the internal mandate to implement the policy they define in their tender.

• instruct the OEMs about the desired outcome, and to that effect provide them with as much relevant data as possible (re intended number of brands, fleet size by market and segment, change cycle, leasing companies involved, car policies, etc.)

• make sure all requested data is relevant to make a professional decision. Don't overburden the process with too much data!

• provide enough time to allow a professional response, and identify if several rounds of negotiation will be necessary.

• keep in mind the importance (and the difficulty) of keeping all regional and national markets on board during the process.

• not expect the outcome to be one, standardised solution across the globe: accept the fact that a onesize-fits-all solution is neither achievable nor ideal.

Regional differences will occur.

• remember that implementation is just as important as the tender process itself!

China is becoming essential in the car fleet strategy of many car manufacturer. Here the DS Store of Citroën in Beijing.

Other brands choose a more bottom-up approach. At BMW Group, a dedicated IKAM will help a customer set up direct business relationships with subsidiaries and dealers throughout the brand's global network – the International Corporate Sales Team at BWM Group has a more supportive, coordinating role.

The PSA Peugeot Citroën group has a similar IKAM-centred approach. At Renault, the IKAM, dedicated to the client at international level, is seconded by KAMs, who operate at national level, and Fleet Teams, which work at local level.

Kia, which conducts its Fleet business from its European central office, manages global requests on a case by case basis, liaising one or more other regions as the situation warrants. As for Fiat Group Automobiles the group has organised itself into four global operating regions – NAFTA, LATAM, APAC and EMEA – that form the local interface for any customer with global requirements. These regions are distinct, but obviously interact, showing how each brand attempts to find its own balance between the need for local knowledge and global reach.

Emerging markets To know which way the wind is blowing, you could read the weather forecast. You could also stick your nose outside. Manufacturers can do both: guided by analysis and experience, they have a clear idea in which areas

of the world the global fleet segment is growing fastest, and where it will grow fastest in the future.

The consensus is that the main emerging markets are China, Russia, Latin America, India and selected Asian markets. Smaller ones include Poland and Turkey. They still have a ways to go before their fleet sectors reach saturation. Emerging markets today represent 30% of all passenger car sales, but this figure will top 50% by 2030, with most of the growth expected from the small and mid-sized segments. This trend will be a key driver for fleet business development.

As a megatrend, the emergence of these markets is a multi-faceted phenomenon. Some manufacturers report or predict strong growth in outlying markets, such as Argentina and Algeria, or focus on a single emerging one, like Russia or Turkey, or on an entire region, such as Eastern Europe or the former Soviet Union. Others remind us that North America and Europe for now remain the largest, most interesting markets, even if they've reached a level of maturity that doesn't leave room for much growth.

private customers and fleets. Another megatrend is climate change, which will continue to drive green awareness and environmental legislation. This will reward those manufacturers (and fleet managers) who work towards zero emissions, by optimising fossil engines and promoting alternative drivetrains.

A third megatrend is continuing globalisation: as traditional markets mature, the economic focus shifts towards emerging markets – increasing the need for fleet management that transcends the national, and even regional level. Perhaps one day soon, an IFA spanning the entire world will be the rule rather than the exception.

Finally, with increasing complexity comes the desire for more simplicity – global fleets will look for agreements that deliver the highest standard of service worldwide with a minimum of hassle. Manufacturers realise that increasingly better-performing IFAs – transparent, adaptable and with a noticeably positive effect on TCO and the environment (not to mention driver satisfaction - are the way to increase customer loyalty. ■ Frank Jacobs & Steven Schoefs

Global Fleet Future Of course, our changing world will affect the future of Global Fleet Management. One relevant megatrend is urbanisation. By 2030, 60% of the world will live in urban areas, changing mobility requirements, and increasing the popularity of flexible, individualised solutions such as car-sharing – both for

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MANAGEMENT I News CF Roberts opts for Fleet Alliance CF Roberts, one of the UK’s leading providers of electrical and mechanical services to the construction industry, has selected vehicle funding and fleet management specialist Fleet Alliance, to help manage its mixed fleet of 140 vehicles. Following its appointment, Fleet Alliance has now introduced competitive tendering for each new model added to the fleet. Fleet Alliance estimates it will save a considerable six-figure sum on behalf of the client as a result of employing this methodology over the three-year life of the vehicle contracts.

Tesla and AT&T to create

Sofico of Belgium selected by Ichinen Holdings of Japan Ichinen Holdings Co. Ltd has selected the Miles leasing and fleet management solution from Belgium-based software specialist Sofico to manage its fleet of more than 120,000 vehicles on behalf of corporate customers throughout the country. Ichinen has a fleet of more than 61,000 leased vehicles with a similar number under fleet management.

Gemar Hompes, Sofico Managing Director, commented: “Two years ago, we set up a Japanese subsidiary with an office in Tokyo. This local presence demonstrated our strong commitment to the Japanese market”.

connected future Tesla has entered a new multi-year exclusive agreement with AT&T to enable current and future Tesla vehicles in North America with high speed wireless connectivity. AT&T connectivity will power Tesla’s remote engine diagnostics, telematics, and industry-leading infotainment features such as Internet radio, Web browsing, live traffic, weather and navigation, all accessed through the 17-inch touchscreen.

Gemar Hompes of Sofico (left) and Masashi Kuroda of Ichinen (right) congratulate each other on the implemenation of Sofico's Miles fleet management system at Ichinen. www.volkswagenleasing.de/internationalfleet

International Fleet

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

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

MANAGEMENT I Fleet Europe Awards 2014

It’s time to win your Fleet Europe Award

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Last year the Fleet Europe Forum & Awards went to Prague.

More than 600 fleet decision makers witnessed Luc Dendievel (Johnson & Johnson) being crowned International Fleet Manager of the Year. This year’s edition of the Fleet Europe Forum & Awards will take place in Hamburg, Germany, on November 19.

he Fleet Europe Awards are the best opportunity for international fleet professionals to get recognition from their peers. We are retaining our 7 Award categories: 5 Awards go to international fleet managers, one Award to fleet suppliers and the final one elects the new inductee to the International Fleet Hall of Fame.

AWARDS FOR INTERNATIONAL FLEET MANAGERS International Fleet Manager of the Year Award: it rewards the person or team having most successfully developed an international fleet management strategy leading to an optimised TCO. • Previous winners: Raphaëlle Jeanneret, Novartis (2007) - Claus-Peter Krüger, Shell (2008) - Werner Berger, Nestlé (2009) – Bruce MacLaren, Microsoft (2010) – Ivor Johnson, Pfizer (2011) - Joe Carreira & Robert Patrick, MSD (2012) – Luc Dendievel, Johnson & Johnson (2013) International Fleet Green Award: it is given to a company that has successfully implemented a green project for its fleet.

• Previous winners: Akzo Nobel (2007) - Hewlett-Packard (2008) - Bayer (2009) – Nokia Siemens Network (2010) – 3M Europe (2011) – Bayer (2012) – Luxottica (2013) International Fleet Safety Award: it is awarded to a company that has successfully implemented a fleet driven safety project.

• Previous winners: Shell (2008) – BP (2009) – Coca-Cola Hellenic (2010) – Nalco Europe (2011) – Almirall (2012) – Nestlé (2013) International Fleet Mobility Award: it celebrates a company that has successfully implemented a cost-efficient mobility project for its employees.

• Previous winners: Barilla (2009) – Accenture (2010) – 3M Europe (2011) – BNP Paribas Fortis (2012) – Luxottica (2013) International Fleet Innovation Award: it rewards an innovative project in a specific field of fleet management.

• Previous winners: Vodafone (2010) – IBM (2011) - BNP Paribas Fortis (2012) – Capgemini (2013)

“And the winner is…” Apply now to enter the 2014 Fleet Europe Awards, and get a chance to leave your mark on the international fleet management world.

AWARD FOR INTERNATIONAL FLEET SUPPLIERS The International Fleet Industry Award rewards the innovative efforts of car fleet suppliers, with a focus on innovation and cost-efficiency of new tools and/or services.

• Previous winners: Arval (2010) – Mobileye (2011) - TCOplus (2012) – Mobileye (2013)

INTERNATIONAL FLEET HALL OF FAME The International Fleet Hall of Fame award recognizes fleet industry leaders and pioneers who have significantly contributed to international fleet management. Eligible nominees must have at least 5 years of international fleet management experiences and have contributed significantly to the industry.

Share your nominee’s name with Laetitia Fernandez (lfernandez@nexuscommunication.be) by September 1, 2014. Once the list of nominees is put together the Fleet Europe community will have the opportunity to vote for the new inductee to the International Fleet Hall of Fame.

•P revious winner: Tony Elliott (2010) – Gianluca Soma (2011) – Bruce MacLaren (2012) – Pascal Serres (2013) ■ Steven Schoefs

Be a candidate to the Fleet Europe Awards 2014 You can’t win if you don’t enter. Apply now!

For further information, please send an e-mail with your contact details to Laetitia Fernandez (lfernandez@ nexuscommunication.be) or visit www.fleeteurope.com

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MANAGEMENT I Fleet Europe Awards 2014

Finding the right balance The Fleet Europe cross-interview brings together two experienced fleet professionals and gives them the opportunity share their experiences and hopes for the future. For this Fleet Europe issue Marc Thiollier of Accenture and Hichem Bardi of GDF Suez got together in Paris. Here’s what they had a chat about.

S

uccessful international fleet management means balancing a range of complex factors. Is there a shift in certain pre-conceived ideas such as ‘nationalism’ or the way we consider ‘Generation Y’ and its thinking? How do these issues impact fleet strategy? These were just some of the topics that Marc and Hichem discussed.

How is your fleet strategy organised internationally?

Marc Thiollier: “We promote our car fleet strategy internationally but each country has a degree of independence on how it applies this strategy. The strategy is based on environmental protection and employee motivation – which we refer to as engagement. This is very important for professions like consultancy that revolve around people.

Our people are committed and have pride in their work so we try to supply a little ‘plus’ in terms of how they move about. This means that our employees are proud to work for Accenture and they support our car fleet strategy.

This brings me back to our first objective which is respect for the environment. We also offer our employees car choices which motivate them. Finding

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the right balance between cars that motivate employees and respect the environment is our aim.

It is also important to anticipate the fiscal changes which occur quite regularly in different countries. Although there is quite a lot of coherence between European countries there are still differences. We favour short term leasing contracts which offer us the opportunity to react quickly to fiscal changes. This also gives individual countries the freedom they need to react to their own fiscal and employment conditions.”

Hichem Bardi: “Our international fleet strategy is organised in two parts: passenger cars and utility vehicles. As we are in the energy business we need a large number of utility vehicles. We have an international strategy focused on the countries where we have our largest fleets and our policy is driven by the total cost of ownership. This means we pay a lot of attention to product evolution, to advances in propulsion methods and optimising fuel consumption.

These all help us to optimise TCO. We also have a Europe-wide framework agreement for passenger cars

and like Accenture each country has some independence for financial reasons and employee motivation.

A company car that is part of the employee’s benefit package is more important. So in this respect it is a management tool and a balance has to be found between a car that is attractive to the employee, and one that meets CO2 emissions and financial considerations.”

You have both spoken of freedom given to your various national organisations – can you develop this theme a little further, including perhaps car policy?

Marc Thiollier: “Alongside respect for the environment and employee motivation we need to provide our employees with a car that is well equipped and at the right price. To offer an attractive car at an acceptable price we attempt to direct the different countries towards a homogenous group of cars which allows us to undertake volume negotiations for the benefit of our employees.”

Hichem Bardi: “Where cars are involved the different countries have a considerable amount of autonomy within the framework strategy. But, we restrict the number of brands to benefit from

Marc Thiollier

Hichem Bardi

Company: Accenture Sector: Business Consultancy Position: Managing Director, Geographical Services Lead Number of company cars: 12,500 Countries under responsibility: France, Benelux,

Company: GDF Suez Sector: Energy Position: Category Manager Number of company cars: 75,000 Countries under responsibility: Europe Main funding method: Operational leasing

Maurice

Main funding method: Operational leasing

volume discounts. We sign agreements with the manufacturers, which are applicable in all countries, but within these agreements each country can constitute its own car policy according to its own specific situation.”

Staying with car brands, does the perception that ‘in Italy they want Fiat but in France they want Renault still exist’?

Marc Thiollier: “This does exist to a degree, but we also note that certain French cars are more in demand in other countries than in France. The German brands are particularly favoured amongst our employees, and overall it is the brands that offer the best power to environmental performance and those that are developing hybrid and electric cars which will find favour above nationalistic considerations.”

Hichem Bardi: “We find that it is true that in France the French brands are those most often asked for. But

I also agree with Marc that the German brands are very popular with a certain category of employee. In the other countries we also find a demand for French brands, but more for fiscal reasons than any other – this is particularly the case in the Netherlands. And again I agree with the ‘environmental’ point. Certain German brands have succeeded in entering our car policy because of their low CO2 emissions. They also offer good automatic gearboxes which employees like.”

Let us move on to mobility management. Is this concept entering into how you manage your fleets?

Marc Thiollier: “It is no longer possible or reasonable to dissociate car management from mobility management. In the future companies will offer a package to employees rather than simply a company car, and mobility will be the name of this package, although the fact of having a company car will still remain im-

portant in people’s minds. A car as a service, as part of an overall mobility package, will take precedence over the current idea of a company car. We have some pilot projects in terms of packages, car-sharing and so on, especially in the Netherlands and employees are open to the idea.”

Hichem Bardi: “The notion of mobility management as a package of solutions is very relevant in large cities, but we have people operating outside of major conurbations. So our employees remain attached to the notion of a company car. Nevertheless, attitudes are changing and companies will need to begin to offer alternative mobility solutions with the company car being just one element. There will almost certainly be car-sharing. We already offer this in our company, but on top of this trains and planes will be incorporated in the package. I am sure that as time goes on we will go even further in offering complete mobility solutions.”

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MANAGEMENT I Cross interview What would Hichem Bardi like to know about Marc Thiollier’s fleet management?

What is your policy is in terms of ‘clean’ cars, electric, hybrid and so on?

“

We encourage the acquisition of clean cars by our fleets in two ways – by enticing drivers and by putting in place restrictions. We define ceilings which are inevitably linked to the various fiscal considerations and we have a maximum permitted CO2 emissions. Alongside this we try to make clean cars more attractive by allowing drivers to add extra options to the car if it emits, for example, less than 100 grams of CO2. We offer free parking and recharging for electric cars in some countries.”

How do you analyse

Do you negotiate

your costs and

your leasing

what tools do you

contracts individually

use for this?

by country or

“

Cost analysis is mostly done at country level because we do not yet have the tools to harmonise costs at an international level. We are aiming to harmonise our reporting so that we can calculate costs in an efficient, relevant and precise manner between countries and at an international level.”

Generation Y – the key to change Marc Thiollier: “I think we have to beware of what we would put into the mouths of the Y Generation. This generation is no easier to understand than previous generations so we shouldn’t jump to conclusions. But a first observation is that of course this generation is younger, and doesn’t yet have experience of parenthood. And parenthood is often a trigger for wishing to have a car. It is often easier to own a car than to rent one or use trains when you have children and everything that has to be transported with them. But I would tend to say – with a good dose of prudence – that Generation Y, aware as it is about the need to protect the environment, aware of the growing costs of services such as car-parking in cities, is perhaps less attached to the idea of owning a car than previous generations.”

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pan-European?

“

We try to negotiate framework contracts at a European level which translate into application contracts at a country level. The major strategies are defined internationally, including a number of the financial conditions.”

What would Marc Thiollier like to know about Hichem Bardi’s fleet management?

You are an energy company – what is the position of electric cars in your fleet?

“

We are committed to electric mobility and we are encouraging manufacturers (particularly the French ones) to go in this direction in two ways. Firstly we have hybrid vehicles and some electric vehicles in our car policies and have installed re-charging points at our offices. Secondly we have developed an internal car-sharing service and supply this service using electric cars to our clients. We also manage car-sharing service for the city of Angoulême in France and other cities.”

How do you see

Do you encourage

the future of

eco-driving,

company cars in

responsible driving,

our increasingly

and if so, how?

congested cities?

“

The company car remains a considerable advantage for employees and I expect that this will continue.

But as we have already said, the company car will take on a new form. It will become a mobility solution offered by the company but it will not be the only one. People will use several modes of transport, especially in cities.”

“

We have had a number of projects within our subsidiaries. Up to now we have had local initiatives, but we are going to instigate a more global approach now with follow-up, so that all of the group can benefit. We are looking to undertake a centralised, long term policy in this area.”■ Tim Harrup

Generation Y – the key to change Hichem Bardi: “We can already observe that this generation has new ‘consumption’ habits in terms of cars but I agree that they are still in the first phase, the pre-family phase. In the large cities this generation is very attracted by car-sharing and they don’t necessarily need to have their own car. But along with the question of the future family, it shouldn’t be forgotten that for many people the car is a passion too!”

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MANAGEMENT I Trends 2014

On safari to find the future of fleet Having just got settled into 2014 what trends are going to force fleet managers to sit up, take notice and make changes to their fleet strategy? We asked Jonathan Green to forage about and tell us what has caught his eye.

O �

n an African safari you want to see the big five; a lion, a leopard, a rhinoceros, a buffalo and an elephant. Here’s my take on the big five that are set to get fleet teams going in 2014.

The Lion: Big data is going to get even bigger If the lion is the king of the savannah then connection is the king of the corporate jungle. The Internet of Things has arrived and the automobile is now a connected device. Fleet managers in 2014 will be exploring how OEM tech adds value to the TCO equation, before going under the hood to see if additional telemetry kit could be an answer to their fleet challenges.

In corporate fleets EV will be inching there way in too. The value created by electrification will become increasingly visible in certain situations and suppliers will focus in on engaging fleet managers. Why the leopard? Sparks are going to fly with the inaugural Formula E racing season which starts in September 2014.

The arrival of big data is enabling business leaders to look at the big picture and they will increasingly want to know how the fleet management function supports corporate strategy in a holistic way. Connection offers fleet professionals an opportunity to tap into bucket loads of new information and plug data streams together in the search for smarter ways of working. Be prepared for a debate though. Discussions about data privacy is going to be loud and drawn out.

3

The Leopard: Sparks to fly on Electric Avenue An increasingly popular address in 2014 will be Electric Avenue. Automakers haven’t been investing billions in e-mobility for the fun of it. The electric vehicle (EV) market, from pure EV’s, plug in hybrids to hybrids, is going to spark up big style. The Internal Combustion Engine (ICE) is not going on the scrapheap; only a fool would predict that. The EV however is going to settle into niche markets and cement itself into them. It will then push on helped by rising consumer confidence, the cost of fuel and cities demanding action on air pollution.

The upstart creating waves is the TCM – the Total Cost of Mobility. The TCM explores the rationale for travel with the aim of building a total workplace solution utilising all modes of mobility and optimising smarter ways of working. Frost & Sullivan predicts that this year we will see offices being developed in city outskirts and tech hubs so workers avoid long commutes to city centres. It’s this type of evolution that supports the TCM agenda.

2

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Car sharing, taxis and public administrations present OEMs with decent opportunities for volume and offer the added benefit of exposing consumers to EV tech. And we should not forget that other niche market; China McKinsey Director Gordon Orr in his now famous annual 2014 predictions said: “I’ll point out that the coming months are also likely to see another effort to create a real Chinese electric-vehicle market. The push will be centred on the launch of the first vehicle from Shenzhen BYD Daimler New Technology.” China’s not a bad niche market.

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The Rhinoceros: Is it time to re-visit TCO? Listen carefully and you can hear voices whispering whether the TCO is still up to the job. It’s a handsome model that has served fleet buyers and procurers well over the years, but times change.

Some voices are suggesting that all the TCO model needs is a good polish to bring its shine back, whilst others advocate a complete overhaul.

There are big forces shaping the future of fleet. Can you spot them and are you ready to take action?

One thing is for sure: TCO is like a 5 ton rhino. It solid, sturdy and it has a point. If the TCM wants to challenge the TCO for the top spot then it better be ready to prove its worth.

4

Water buffalo: An increased focus on behavioural change All this talk of tech, processes and performance could mean we forget about people. People identify the opportunity for change and then make the change happen. Data, connection and machines just provide the framework for change.

2014 will see fleet managers getting closer to line managers and drivers in the quest to better understand business needs and realise TCO improvements. Suppliers too, from leasing companies to OEMs, will be connecting with corporate drivers as customers. It’s an interesting evolution. The people agenda means listening and communication skills will be the order of the day in 2014, and fleet professionals will be presented with more opportunities to get involved in corporate strategy. Behavioural change is hard work. People, like the water buffalo, are tough beasts that like to do things their own way.

5

The elephant in the room The elephant in the room is employee wellbeing.

Why? Costs associated with obesity, stress, depression and other forms of mental wellbeing are rising, but it’s a topic that we find uncomfortable to talk about.

Maybe that’s why it is a problem in the first place? Times however are changing.

The Economist reports that Google offers a course called “search inside yourself”, but it's not just companies in Silicon Valley taking a mindful approach to business.

Rupert Murdoch the media mogul, Ray Dalio from Bridgewater Associates and Bill Gross of PIMCO, two of the biggest names in money management, are practitioners of mindfulness.

Corporate fleet managers are not going to be asked to become Zen masters, but understanding the negative impact of too much travel on employee wellbeing will rise up the agenda. Do you know how much time do your drivers spend on the road? With work pressure and congestion it’s easy to see how stress levels rise behind the wheel. The average commuter spends a massive eight days a year simply stuck in traffic. It’s enough to make anyone’s blood boil.

Over to you Predicting the future can be fun, but you can end up looking like a fool. Hopefully I’ll be back next year to see whether the predictions have come true, but in the meantime what do you think? Let us know in the discussion room of Fleet Europe – www.fleeteurope.com. ■

Jonathan Green

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MANAGEMENT I 2014 Global Fleet Conference

Join the 2014 Global Fleet Conference The leading thinkers in the global fleet business will be coming together in Brussels, Belgium, between 16 and 18 June 2014 to discuss and debate the opportunities and challenges of managing corporate fleets on a global basis.

T

he 2014 edition of the Global Fleet Conference comes to Brussels, Belgium from 16 to 18 June 2014. A two day agenda of intensive learning and networking is planned with topics including: global fleet strategy and implementation; taxation and regulation; effective fleet management in emerging and high growth regions, and optimizing global fleet reports.

SHARE WITH YOUR PEERS These topics and more will be at the heart of an education programme which has been designed by buyers for buyers, and will be led by pioneering corporations sharing their experiences alongside the leading lights in the automotive and fleet management industry.

With plenary sessions, round table discussions and one to one meeting opportunities, conference attendees will benefit not just from the breath of the agenda, but the array of different learning environments.

LEARN FROM ESTEEMED EXPERTS Renowned fleet experts and award-winning international fleet managers will deliver their insights in a programme designed by the Nexus Communication and Bobit Business Media teams, in collaboration with the Global Fleet Advisory Board – a team of internationally recognised fleet leaders.

CONNECT WITH THE BEST The programme allows for exclusive networking opportunities. You will be able to discuss and exchange ideas with fellow executives from around the world, and to meet and consult with international fleet suppliers who will offer you guidance throughout the day.

MEET THE ADVISORY BOARD To assist in developing the content for the conference, Bobit and Nexus have assembled a Global Fleet Advisory Boards consisting of fleet managers who manage the fleet operations for major international corporations.

On 16 June, the Advisory Board will meet to give further insight into the following conference topics: global fleet strategy set-up, reporting, fuel and risk management.

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For further information on the conference and to secure a seat, please visit www.globalfleet.com/conference. ■ Laetitia Fernandez

PRELIMINARY PROGRAMME AT A GLANCE DAY 1 - TUESDAY 17 JUNE 2014 08:45 09:00 09:20 10:15 10:45 11:15 12:00 13:30 14:30 15:00 17:15 17:30 18:15 19:30

Opening of Global Fleet Conference Day 1 Global fleet management survey – results How to set up a global car fleet strategy and a global fleet team Coffee break Decision making in fleet management at global, regional and local levels Case study: Compliance successes when having developed a global fleet policy Lunch The quest for global reporting Coffee break Emerging fleet markets : Meet the experts Coffee break Case study: Global fleet management across different continents Wrap up of Day 1 Cocktail reception & official Global Fleet Conference dinner

DAY 2 – WEDNESDAY 18 JUNE 2014 08:30 08:45 09:30 10:15 11:00 12:00 13:15 14:00 14:30 15:00 16:00 17:00 17:15

Opening of Global Fleet Conference Day 2 Different fuel management options at global level Insurance & Safety Management at a global level Case Study : Safety and Driver Behaviour Networking: Meet the suppliers Lunch Telematics, an opportunity Essentials on company car taxation around the world Coffee break Funding your car fleet around the world – today and tomorrow The way forward: A look at the future of Global fleet management Wrap up of Day 2 and closing remarks End of Global Fleet Conference

MANAGEMENT I Fleet Safety Corner

A ticking time bomb behind the wheel Welcome to our latest feature: The Fleet Europe Safety Corner. In this feature we’ll be exploring the fleet and driver safety issues that are important to you. In this first feature we take a look at the time drivers spend behind the wheel.

A

friend of mine usually whines at me once a year about his company’s decision to send him on a driver training course. He considers it a waste of time and protests to senior managers that he could be making money for the company, instead of being trained on something he already knows how to do. When we met the other month he’d had a change of heart. Why, I wondered?

It turns out that the Head of HR had called to ask a question. A few years back an employee of the company had been involved in a serious car accident and was in a critical condition in hospital. The police contacted the company and the task of informing the next of kin fell to the Head of HR. “Would you like to make a telephone call like that?” the Head of HR asked my friend before adding, “We have an annual driver training programme so I hopefully never have to make a call like that again. So, does that answer your questions for this year?”

My friend’s protests were put sharply into perspective.

“Who would want to make a call like that?” he asked me.

Who indeed? The sad reality is lots of people have to make a call like this every year. As fleet managers the task of calling a loved one could fall to us. It’s a sobering thought.

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Every year thousands of people die on Europe’s roads, and an even greater number are seriously injured. In 2011 the European Commission reports that more than 30,000 people died on Europe’s roads. And for each death there are an estimated 4 permanently disabling injuries such as damage to the brain or spinal cord, 8 serious injuries and 50 minor ones. (1) From a legal perspective, corporations have a duty of care to employees and members of the public. Fall foul of the rules and hefty fines and brand damage can result. It is no surprise then that safety is an essential agenda item in a fleet manager’s in tray.

Safety first There’s a lot to consider too. From putting in place measures to ensure that the driver is licenced and competent, through to maintaining a vehicle in a roadworthy condition. Fleet and driver safety is a tricky business and ticking all the duty of care boxes can be an administrative headache.

With increased corporate awareness of duty of care and road safety, improved business processes and smarter technology, organisations are better equipped than ever to promote, support and enforce fleet safety policies.

The Fleet Safety Corner is Fleet Europe’s way of playing a part in the safety discussion and supporting our industry identify, exploring and finding solutions to road safety issues. By sharing our collective fleet experiences, disseminating best practices and exploring challenging areas together, we’ll find ways of making corporate fleets and the roads just that little bit safer.

OEMs have excelled at making ever safer vehicles with all sorts of technology gizmos to keep drivers, other road users and pedestrians safe. On the admin side of the house, automated driving licence checking in many EU states has eased the burden. The big safety challenge now comes when vehicles are in the hands of drivers.

Moral and legal obligation to act There are moral and legal reasons for promoting fleet safety and ensuring minimum standards. Driving for work is likely to be either the highest - or at least a high risk area for most corporations.

One area that is rarely talked about during fleet conferences and events is how long is spent driving, and at what point does time behind the wheel pose a ‘duty of care’ risk? In the event of accident could company be found culpable for asking someone to drive too much?

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

Time behind the wheel There’s no regulation on the amount of time that a company car driver can spend behind the wheel, but adopting this position in fleet policy is unlikely to satisfy detectives investigating a company after a driver has been involved in an accident.

There’s lots of evidence to show that tiredness and traffic accidents go hand in hand, so pleading ignorance is not going to wash. For drivers of road haulage and passenger transport vehicles rules exist for maximum daily and fortnightly driving times, as well as daily and weekly minimum rest periods. These rules, among other things, establish that: • Daily driving period shall not exceed 9 hours, with an exemption of twice a week when it can be extended to 10 hours; • Total weekly driving time may not exceed 56 hours and the total fortnightly driving time may not exceed 90 hours; • Daily rest period shall be at least 11 hours, with an exception of going down to 9 hours maximum three times a week. Daily rest can be split into 3 hours rest followed

by 9 hour rest to make a total of 12 hours daily rest; • Breaks of at least 45 minutes (separable into 15 minutes followed by 30 minutes) should be taken after 4 ½ hours at the latest. (2) Do these guidelines provide a reasonable framework for a company car driver? They present a starting point for a discussion.

As no one driver is the same, is it possible to devise a policy and establish driving time limits? Should the amount of time a driver spends behind the wheel commuting be considered as part of the equation too?

It’s tricky territory on which to establish a policy position, never mind monitoring and enforcement.

Laws are different across Europe so not one rule fits all, but a UK court case back in 2006 presents an interesting case to work off. A Judge found that an employer could be found liable if the employer causes or permits a worker to drive when tired.

to drive when too tired, the employer can in my view, in principle, be held liable”.

The Judge noted, when passing judgement, “[that] there was a failure [by the company] to carry out a risk assessment about the risks of driving long hours, or indeed give any serious thought to the risk.”

That judges finding was not challenged on Appeal.

The amount of time drivers spend behind the wheel is a topic we need to talk about. Perhaps it's time to start the debate about what best practice fleet safety policy could look like in this area? One thing is for certain: time is of the essence. ■ Jonathan Green SOURCES (1) http://ec.europa.eu/transport/ road_safety/specialist/statistics/ index_en.htm (2) Source: http://ec.europa.eu/ transport/modes/road/social_ provisions/driving_time/

The Judge said, “If it is established that the employer, by an unsafe system, or by instructions given to the employee, in fact causes an employee

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BUSINESS I Alphabet International

“We don't want to remain number four” “Our merger with ING Car Lease required some time and effort, but we still managed to grow our business at the same time. Now the merger is complete, we're releasing all that extra energy onto the market”, says Norbert van den Eijnden, joint CEO of Alphabet International. The company is aiming for long-term growth of up to 7% p.a., confidently above market average.

“

2013 was a great year. We've completed our merger in France, the UK and Italy, after finishing the process in our other markets”, says Norbert van den Eijnden. “We started the year with a fleet of 500,000 vehicles, and ended it with 536,000. In 2011, before the merger, both companies had 430,000 cars. Not many competitors can say they've added 100,000 cars over the past three years. And our profit is accordingly healthy”.

How is Alphabet heading into 2014?

N. van den Eijnden: “We've stated before we don't want to remain number four. We're concentrating our investigations on the BRICT emerging markets. And I'm sure we'll expand into other markets or make an acquisition as the opportunity arises. As for market growth, there are positive prognoses for the UK and Poland. And there'll be an end to the negative market development in Spain, Italy and the Netherlands”.

How is Alphabet preparing for the mobility issues of tomorrow?

N. van den Eijnden: “One big trend is the migration into megacities.

This is already changing mobility priorities. In my day, I couldn't get my driving licence fast enough. Today's graduates don't mind taking trains or planes – it gives them more time to spend on their mobile device.

Sharing has become more important than owning. So the need for cars will become more flexible, both for

private individuals and fleet drivers.

That's the whole story behind AlphaCity, which is up and running in 8 countries and more to follow. Electric mobility is still in its infancy. By the end of this year, we'll only have a few thousand EVs. Some think e-mobility will never break through.

But we're approaching a tipping point, faster than many realise.

In 10 years, a large chunk of our fleet will be electric. That's why we're investing sustainably in AlphaElectric”.

Where are you on blackboxes and other telematics issues?

N. van den Eijnden: “I've been involved in attempts to analyse driver behaviour since 1994.

The privacy problem has only increased since then. As far as I can interpret the law, you can't track anything without driver consent, which limits the technology's applicability. On the other hand: cars are getting smarter all the time – as in our parent company BMW's Connected Drive technology. But that still leaves the question of what to do with those data up to the company itself”.

Where do you think the fleet sector as a whole is headed?

N. van den Eijnden: “In spite of the attention for emerging markets, 83% of all lease contracts are still concluded in the 7 biggest markets in Europe. So those traditional

markets will remain crucial. Some European markets are less consolidated than others, so we'll pay attention to those – we don't want our position there to deteriorate as other players consolidate. We think it will be increasingly important for multinationals to have uniform offers for their international fleets. Our recent merger has enabled us to harmonise our products and processes – a much more difficult exercise for companies with national roots and long histories”.

“Emerging markets are gaining importance, but you have to realize that 83% of all lease contracts are still concluded in the 7 biggest markets in Europe”, says Norbert van den Eijnden of Alphabet International.

So, will you break into the Top 3 this year?

N. van den Eijnden: “In terms of financial volume, we are already there.

This is because we're financing so many premium cars. Not just BMWs, but also Audis, Mercedes, Volvos and Land Rovers for instance”.

Caroline Thonnon & Steven Schoefs

BUSINESS I Arval

“Connected cars are the next big thing” Bart Beckers has managed fleet companies in three markets: LeasePlan in Belgium and France, then from 2011 Arval in the UK. As Chief Commercial Officer for the BNP Paribas subsidiary, his job now is to apply his business instincts on a group-wide level.

What's your main target for the next two years?

B. Beckers: “I am in charge of two strategic group projects. One Arval is about harmonizing our full service leasing activities with a particular focus on the customer and driver journey. Equus is about standardising our IT systems across our key geographies; this project will take another 3 years. But my key focus today is all about BNP Paribas telling us: You've weathered the financial crisis very well, 2013 was a great year. Now grow some more! So growth is our main focus for the next years – not just in units, but also in our service offering.”

in my first talk with Arval in 2010.

Already then I was assured that Arval would be allowed to grow in the BNP Paribas Group, and this has been reaffirmed in our Strategic Plan Horizon 2016, which also points to our global ambitions”.

What is Arval Smart Experience and why is it important for Arval?

B. Beckers: “Arval Smart Experience is our latest service for connected fleet management with a focus on the driver that we are rolling out throughout the Arval network. If we're always happy to meet with our clients, talk with them over the phone, some customers and particularly our drivers are more and more comfortable using their smartphones and social media. And even if your relationship with us is via the Internet, we'll still keep it one-to-one. That's key to Arval Smart Experience – more efficient and intelligent, but without sacrificing customer intimacy, one of the pillars of our corporate philosophy”.

Which new markets and countries is Arval focusing on?

B. Beckers: “Operational leasing is going well in Brazil – a market with a rapidly increasing maturity. In Turkey, besides the international players, you have a few typically local hybrid companies, originating from the short-term rental business, but classic full service leasing formulas are gaining ground. Russia is also growing very well. And besides our geographic growth ambitions, there are the cross-selling activities with our parent BNP Paribas, as well as our continued investments in the SME segment in the more mature markets”.

Only a few years ago, it seemed every car leasing company was up for sale. Is Arval (and its alliance with PHH) sustainable?

B. Beckers: “Arval is not for sale! (laughs) I asked that same question

What are your expectations for 2014?

B. Beckers: “As companies get confident again, I am particularly keen to see this being translated in additional units on our existing fleets after a few years of contraction particularly in the large fleet segment”.

What is the main difference between Arval and other international car leasing companies?

B. Beckers: “We're a little more nimble than some of our international competitors. We maximise that positive difference by centring small,

Arval COO Bart Beckers’ advice to fleet managers: “Work with full service fleet partners, so your operation can benefit from the upscaling of your partner's systems and mechanisms on a supra-national level, whilst taking advantage of a genuine one-stop-shop offering.”

individual account teams around each corporate client. That client-centred approach has allowed us to win Best Leasing Company for eight years in a row in the Netherlands, for example, and this is a typical component of what we have aimed to put in place across the entire network through the One Arval project”.

What do you think is going to be the Next Big Thing in the industry – and why?

B. Beckers: “BNP Paribas has an innovation lab in the US, literally next to Google. They're feeding us with information, also about connectivity.

We're convinced that Connected Cars will be the Next Big Thing. Watch this space!”. ■ Caroline Thonnon & Steven Schoefs

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BUSINESS I AXA

Towards a smart, global insurance solution “Assisting fleet managers obtain the lowest Total Cost of Ownership, while improving the employee mobility experience”, says AXA, as the company presents its corporate fleet solutions for 2014. The insurance and assistance specialist believes that – via its network of fleet solutions – it has the remedy for greater cost management and budgetary control for fleet leaders looking to drill into the complex business of insuring and managing their vehicles.

D

etailing their products for the year ahead, AXA is vying to be the insurance provider of choice for new fleet clients the world over – joining the 750,000 worldwide fleet customers already on the books. “Partners” as AXA calls them. “Usually the relationship between fleet managers and their service providers is complex and far from a partnership,” says Fabrice Lock, Deputy General Manager at AXA Assistance. The AXA offering promises to be an easy, one-stop-shop solution to fleet and mobility management. Via three AXA entities – AXA Assistance, AXA Corporate Solutions and AXA MATRIX Risk Consultants – clients access a network of products that services that begin at a tailor-made quote – and continue with accountable and helpful data management.

“Think Glocal” For the sake of ease, costing is handled at a central point whilst account queries and claims management are all handled locally. AXA’s international expertise enables them to burrow into the economics and politics of the client's region of interest – and where possible to suggest the most cost-effective and tax-efficient solutions relative to that area. It's part of their “Think Glocal” philosophy.

“Driver behavior is not about simply fitting a telematics system to a vehicle and taking data from it, it is more how you can effectively improve driving behaviour by making drivers aware of their driving and providing

them with concrete, simple and efficient actions for improvements,” Fabrice Lock says.

From monitoring and encouraging change in driver behaviour, to smart mobility access on-the-ground, the AXA approach is, again, wide-ranging and multi-pronged. Their “AXA Drive Pro” measures physical driving such as acceleration, braking, and speed as part of an overall Driver Care system which has a feedback mechanism to provide useful advise once the trip is over and the driver is looking at his driving results. It's part of a smartphone application which also assists in a practical way, by offering geo-sensitive information, and trip and travel advice.

Road to Mobility Away from in-car tools – AXA is going to roll in a smart mobility, enabling access to local mobility options – like public transport, bikes, rental cars, and even air travel – including an intuitive mobility booking service. As the driver gains assistance in-car – and smart mobility options outside – a fleet reporting mechanism feeds managers activity logs, expense data and even TCO calculations in real-time. And it's this immersive service that's AXA tells us the true ROI comes from – products that provide better and safer habits, offer mobility solutions and drive down claims, premiums and hassle for the fleet manager.

Last thought goes to the AXA MATRIX Risk Consultants system which brings an extra tier of authority and account-

Fabrice Lock, Deputy General Manager at AXA Assistance.

“Assisting fleet managers obtain the lowest TCO, while improving the employee mobility experience is our motto.” ability for managers faced with problem drivers. Via AXA MATRIX Risk Consultants, any drivers that show unsafe driving or are a general concern from driver reports are flagged and insurer turns educator – as a dedicated risk consultant is on-hand to provide improvement plans and detail the need for driver training and education to plug any gaps. ■

Steven Schoefs & Ally Millar

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BUSINESS I ALD International

� Million vehicles can’t be wrong Car leasing and fleet management specialist ALD Automotive has just presented its year figures for 2013. It was a good year with an average car fleet growth of 6%, what means that ALD Automotive has successfully reached the target of passing the 1 million milestone. Mike Masterson, CEO of ALD Automotive gives Fleet Europe an in-depth interview on all elements of his business touching on 2013's success, BRIC, car leasing & management, and the future of the mobility.

“

2013 was a very good year”, says Mike Masterson. “We're seeing that our strategy decisions from the last few years pay off – like the focus on partnership-business and investment in new products and service quality. We saw balanced growth of 6% in full service leasing, and in fleet management.”

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in both cases we lead the industry.

Globally, manufacturer partnerships represent about 15% of our funded fleet.”

Looking forward, what do you hope and expect for 2014?

M. Masterson: “Southern and Eastern Europe is stabilising and global full-service leasing, outside of Western European markets, will grow. For ALD Automotive, we're entering the new year with a big order bank, new customers, and momentum on our side.

The crisis brought a period of consolidation, but we're again ready for new markets – specifically Belarus and Bulgaria – and projects in South America, North Africa and Asia.”

In terms of cold hard figures, can you elaborate on your 2013 growth?

M. Masterson: “Vehicle numbers in the fleet rose 5.6% last year, breaching the 1m (1,008,840) mark in a successful December. At present, the majority (949,697) of our vehicles are in Europe – primarily France (315,572), Germany (123,378), Italy (170,620), UK (97,313), Belgium (63,339), Spain (49,779), and the Netherlands (24,605).”

Mike Masterson, CEO of ALD Automotive doesn't believe operational leasing works for every customer, but neither does he think that of fleet management.

To what do you attribute your success?

M. Masterson: “We're a mature group that's able to provide the same quality of service across our 37 country-network – our solutions are tried and tested. We're stabilising in Europe and doing well in BRICs and emerging markets. In China we grew 33%, Brazil 43 % and Mexico 67 %. Another factor is our growing portfolio of manufacturer partnerships and bank partnerships;

In South America, why aren't you leading with Wheels, your US partner?

M. Masterson: “We're present in those countries because it's our philosophy and strategy to follow customers – in order to provide global solutions all across our networks; that's why we're there and that's why we'd like to develop further in South America and Asia. Wheels has its own interests in

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Mexico – it's our only overlap – but we're in close contact with them to collaborate on managing best-practice for international customers.”

Do you believe that there will be further consolidation of companies and structures?

M. Masterson: “I think so – we've seen it with a few UK SMEs. It's very difficult to be competitive on a single-market basis without scale. National players are starting to see that.”

Is it realistic to earn a living in Europe by offering only fleet management services today?

M. Masterson: “We don't believe full-service leasing works for every customer, but neither do we think that of

BUSINESS I Total

fleet management. We have more than 250,000 fleet management contracts in Europe – more than any competitors – and we believe in providing the service packages best suited to customers.”

Do you don't think one approach will come to dominate?

M. Masterson: “No, I don't. The benefits of full-service leasing are too many. Fleet management means finding solutions, residual value guarantees and risk given the economic environment.”

How do you see the evolution of the mobility mix?

M. Masterson: “We've spent significant time and money investing in mobility products; and they're attracting some customers but, for now, uptake and conversion is low and we're not in the business of pushing customers to a product that doesn't suit.”

Do you think that time will come where corporates will switch to other modes of mobility?

M. Masterson: “If it's a yes or no question, I think it will – but I couldn't estimate when. The development of EVs – and normal engines for that matter – is improving rapidly and new budgets are being allocated for mobility options; but the appetite is slower than anticipated.” ■ Steven Schoefs

Tips for Fleet Managers Mike Masterson says, customers should: • Look at their relative purchasing power – it's here they can benefit from the scale economies of major lease companies • Seek consultancy, it's another cost but there's definite value in it • Try to benefit from a global procurement strategy. International customers who understand the cost-bases involved can see greater fleet agility and service across a wider network.

Fuel your fleet services Total is an instantly recognised fuel supplier in Europe. Stefaan de Ganck, Head of Commercial Development for Total fuel cards in Europe and Fabrice Pochet, Head of Transport and Large Accounts, tell us how Total serves fleets.

How important are fleets for Total?

Fabrice Pochet: They are at the basis of several activities of our Total Marketing & Services business because we can develop services such as the bulk delivery of products – to clients’ own petrol pumps for example. We can also Stefaan de Ganck (left) and Fabrice Posupply lubricants to the managchet (right) ers of these fleets. We also supply services via our network of staof all these elements which helps tions. Some ‘gas’ activities may also reduce fuel consumption. be of interest to certain clients. Then there is of course the fuel card activity. We have services for light vehicle Does this include analysis of driver and utility vehicle fleets. behaviour?

Stefaan de Ganck: Via the fuel card we provide reporting on the distancStefaan de Ganck: Our fuel card seres driven by the vehicle and we can vices are available all over Europe compare the distance to the fuel and are specifically for a B2B clienused. We can also give an estimation tele. The two types of fleet Fabrice on the CO2 emission. We provide the mentioned are handled separately.

The first are passenger cars normally data both to the fleet manager and used by sales forces, management or to the card holder if this is what the after-sales services, while the second client wants. In this way we compare are trucks and commercial vehicles. the drivers behaviour with the standards quoted by the car manufacturer and even with the results of his colStaying with consumption, what leagues in the same fleet, showing would your top tip be to a fleet manwhether he is in the green zone, the ager for reducing fuel consumption? orange zone or the red zone…

Fabrice Pochet: We have defined a policy of ‘consume better’ which What are your relationships with we relay to our clients. This is in the the leasing companies? form of recommendations which inFabrice Pochet: They form part of volve both the behaviour of the user our partners with which we work in (the driver) and the maintenance of order to supply our fuel cards to vecertain key elements of the vehicle. hicle fleets. The leasing companies We also recommend a certain numprovide and manage a number of ber of products we have developed services to clients. This can include which help in this, such as fuels with ordering a fuel card at the same time additives which lead to a reduction in as ordering a car, for example. ■ fuel consumption. Certain specific lubricants also provide better fuel consumption. But it is a combination Steven Schoefs

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SCOPE I Fleet Market & Residual Values

Why pay a premium?

Despite significant incentive programs such as discounts, bonuses, tax advantages, finance and leasing incentives, the demand for new cars has not yet returned to the level that the automotive industry was used to and it seems questionable when, or even if, it will.

C

ar makers look for the right tactics in order to boost their sales figures.

A key focus is on the product itself. Offering exactly the right product can obviously be the basis for success. Just think of the Nissan Qashqai, a car that combines the advantages of the Compact segment (Golf) and the Compact SUV segment (Tiguan) and, due to its huge popularity, ended up being called “Qashcow”.

Creating the optimal proposition implies that many different factors need to be handled well: design, equipment, innovation, quality, finish, warranty, crash tests results … the list is endless. The major factor, however, cannot be changed that easily: the image.

Desirability The image (or: desirability) is one side of the coin. How much the customer is willing to pay for the product is the other. If one particular car is more desirable than its direct competitors, the customer is willing to pay a premium. Premium cars are not necessarily better when it comes to the factors mentioned earlier, but they are usually more expensive ones.

In the used car market the better performance of premium cars becomes most obvious. The used car

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In Europe the used car values of the Porsche 911 are higher than those of the Corvette.

values of the Porsche 911 are higher than those of the Corvette. Even if you convert these into percentages the Porsche will show higher values and “win” the comparison.

percentage values being roughly on the same level, the new car buyer loses significantly less money when buying the SEAT Alhambra than with the Volkswagen Sharan.

At BF Forecasts we like to take a different view of the traditional ranking of residual value performance. From the perspective of a car owner, the percentages are not that important – you lose money, not percentages.

The percentages confirm the image of a model or brand, but the monetary loss is more relevant.

Eventually, both factors will be at the basis of a successful product – a strong image and an attractive pricing proposition. Buying a car is indeed an emotional decision and who does not like to drive a premium car?

Economic difficulties can accelerate the process of people becoming more critical and cost-sensitive.

Let´s have a look at an interesting article we published in Spain together with “Renting Automoción” in October 2013, called “Gigantes de Valores”. In the article we are looking for the cars with the best residual value performance in each segment.

It will be easier, and more common, to make a decent TCO calculation, taking into account the forecast monetary loss, costs for extra equipment, warranty conditions, related taxes (incl. BIK), fuel consumption under realistic conditions, insurance costs, as well as costs for maintenance and repair.

In the C-segment, the Volkswagen Golf, Mercedes-Benz A-Class and Audi A3 occupy the podium – at least when it comes to the percentage ranking. The picture looks different when the focus is on the lowest possible depreciation measured in Euro.

Two SEAT’s and a Citroën take the lead and there is no premium brand in sight. Another meaningful example is apparent in the Van segment.

Again it is a SEAT spoiling the Volkswagen victory. With residual

The growing importance of TCO confirms that it is right to substitute the RV percentages with real monetary depreciation. This offers a level playing field for each brand that is listed in the “Gigantes de Valores” monetary ranking, which are not necessarily Premium brands. ■ Maarten Baljet BF Forecasts

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