Fleet Europe °72

NEXUS COMMUNICATION - FLEET EUROPE #72 - PERIODIC MAGAZINE - OCTOBER 2014 - DEPOSIT OFFICE LIÈGE X

OCTOBER 2014 - # 72

DOSSIER

Fleet Management Trends New developments in vehicle fleet management: Tendering, Driver behaviour, Connectivity, Telematics, Fuel Management & Technology.

MANAGEMENT

Manoella Wilbaut (DHL) Quality and efficiency, innovation and consistency

MANAGEMENT

BUSINESS

SCOPE

The nominees for the Fleet Europe Awards 2014

Interviews with the new fleet bosses of Toyota, PSA, and Nissan

View on company car taxation in 2015

JOIN THE FLEET EUROPE EVENTS IN HAMBURG - NOVEMBER 18, 2014: IFMI EXPERT SESSION & FIRST EVER FLEET EUROPE REMARKETING FORUM

- NOVEMBER 19, 2014: FLEET EUROPE FORUM & AWARDS 2014

MORE INFORMATION ON FORUM.FLEETEUROPE.COM

THE NEW SEAT LEON X-PERIENCE WITH 4DRIVE DISCOVER NEW ROUTES FOR YOUR BUSINESS.

For detailed information go to www.euroncap.com

SEE IT LIVE AT THE PARIS MOTOR SHOW 4-19 OCTOBER 2014

TECHNOLOGY TO ENJOY

SAFE DRIVE With its 4 Drive Technology, higher suspensions, and bigger tyres, comfort and safety are assured even in adverse weather and road conditions.

NEW GENERATION INFOTAINMENT Now it’s easier than ever to manage your business, thanks to the touch screen and smartphone capabilities.

VERSATILE AND SPACIOUS The spacious 587-litre boot expands to a surprising 1470-litres to hold all the tools, equipment and products you need to push your business forward.

SEAT FOR BUSINESS

SE AT.COM/BUSINESS Average consumption: 4.8 - 6.8 l/100 km. Average CO2 mass emissions: 125 - 152 g/km.

Hamburg is one of Germany’s most vibrant cities. On November 18 and 19, Fleet Europe will add to the excitement by crowning Hamburg the Car Fleet Capital of Europe.

In all, four events centred on education, best practices and networking will draw the cream of Europe’s fleet industry to the city on the Elbe. We look forward to seeing you there!

On November 18, a session of the highly respected International Fleet Managers Institute will focus on Engaging Driver Behaviour – an essential topic in today’s fleet management. At this IFMI Session, experts and fleet peers will reveal the impact of driver behaviour, and you will learn how to successfully integrate better driver behaviour into your fleet strategy. Over the same day, Understanding the Future Challenges of Remarketing is the banner for Fleet Europe’s first-ever Remarketing Forum. In-depth presentations and panel discussions will guide you through the essential strategies shaping the future of Remarketing.

EDITORIAL

Hamburg, this year’s Fleet Capital of Europe

highlight on the European fleet industry calendar: How to Turn Today’s Car Fleet Management Challenges into Successful Fleet Programmes. We’ll have special attention for Fleet Management in the Nordics, successful Fleet Management Best Practices, a Checklist of Fleet Management Steps for the Future. And there’ll be a flurry of high-level panel debates.

In our biggest Networking Village yet, you’ll have the chance to meet with peers and discover new supplier services and products, focusing on Connected Cars, LVC Management, Corporate Car Sharing and Alternative Powertrains.

Welcome to Hamburg, this year’s Car Fleet Capital of Europe

In the evening, it’s time to celebrate!

The eighth edition of the Fleet Europe Awards is an excellent occasion to showcase this year’s top innovations and achievements by fleet managers and fleet suppliers from across the industry. Read all about the nominees and the jury members of the Fleet Europe Awards 2014 in this issue of Fleet Europe. All info and registration details on forum.fleeteurope.com See you in Hamburg!

Steven Schoefs, Chief Editor, Fleet Europe

On November 19, we invite you cordially to attend the Fleet Europe Forum, where high-quality content dovetails nicely with high-quality networking. The main theme for this annual

sschoefs@nexuscommunication. beTwitter: @StevenSchoefs

Be part of the Fleet Europe Community!

LEARN, SHARE AND NETWORK – IN HAMBURG I FMI training session: Successfully Engaging Dedicated Driver Behaviour – Hamburg (DE) – November 18, 2014 The motto for this session: Save money, save lives, save Join the IFMI training session & Enhancethe your fleet expertise planet.

Keynote speakers, industry experts and fleet managers discuss the importance of driver behaviour in today’s fleet management, with special attention for fuel management, CO2 emissions, driver reporting and safety, and insurance and risk management. Further information at ifmi.fleeteurope.com

Fleet Europe Forum 2014 – Hamburg (DE) – November 19, 2014 The Fleet Europe Forum gathers around 600 European and international fleet decision makers around the theme “Turning today’s vehicle fleet management challenges into successful opportunities”.

You will learn from key-note speakers, discuss with peers and share best practices with the fleet community. Further information and registration details available at forum.fleeteurope.com.

The International Fleet Management Institute (IFMI) provides international fleet managers with ongoing training opportunities.

Are you the manager of a fleet of cars and/or LCVs – and does your job have an international scope? Then the International Fleet Managers Institute (IFMI) is what you need!

Remarketing Forum – Hamburg (DE) – November 18, 2014 The Remarketing Forum will try and identify the most pressing challenges of remarketing and shed some light on how the market will develop within the next 2-5 years. Expert speakers will share their expertise, present new concepts, trends and trials remarketing stakeholders have to face nowadays, and introduce solutions and ways ahead to succeed.

Further information at forum.fleeteurope.com/remarketing.html

With knowledge transfer at its core, the IFMI gives you the opportunity to:

> Participate in professional training to decision makers in international fleet management; > Meet other fleet management professionals to exchange experiences and best practices; > Share creative and innovative thinking in all aspects of international fleet management.

2014 PROGRAMME

> Webinar: The Impact of Engaged Driver Behaviour 11 September 2014, 15:00-15:45 (CET)

Shaping driver behaviour is a key part - and a key challenge - of today’s fleet management. So how exactly do you engage drivers to modify their behaviour to fit various objectives such as cost, safety and the environment? Learn more during this interactive webinar.

> Successfully Engaging Dedicated Driver Behaviour Hamburg, 18 November 2014, 08:30-18:00 (CET)

Motto for this session: Save money, save lives, save the planet. Keynote speakers, industry experts and fleet managers discuss the importance of driver behaviour in today’s fleet management, with special attention for fuel management, CO2 emissions, driver reporting and safety, and insurance and risk management. Special focus on best practice sharing with fleet peers and opportunity to network.

For further information and to register to one of our training sessions, please visit ifmi.fleeteurope.com Organiser

With the support of

Major sponsor

Fleet Europe Awards 2014 – Hamburg (DE) – November 19, 2014 The Fleet Europe Awards represent the highest opportunity for professionals within the fleet industry to get the recognition they deserve for bringing improvement to their company and to the market in terms of fleet management. The Awards Ceremony unveiling the winners will be held after the closing of the Fleet Europe Forum. Further information available at forum.fleeteurope.com

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

FLEET EUROPE # 72

P.3

peugeot.com

BE SURE TO OVERTAKE

YOUR OB JEC TI V ES

FROM 3.3 L / 100 KM

FROM 85 G CO2 / KM

HEAD UP DISPLAY

Best in class of the segment with 85 g of CO2/km and 3,3 L/100 km on the sedan with the Hybrid4 technology.

NEW PEUGEOT 508

CONTENT

I DOSSIER I

The company car: Stars of the new season . . . . . . . . . . . . . . . P.8

What will the fuel of the future be? . . . . . . . . . . . . . . . . . . . . . . . . . . . P.14

Funding: Time to purchase instead of lease? . . . . . . . . . . . P.16 Purchasing of leasing: Where does the fleet manager fit in? . . . . . . . . . . . . . . . . . . . . . . . P.18 Management: Bundling ou unbundling – much to consider . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.20

To bundle or not to bundle: Fleet managers reflect . . . . . . P.22 Tendering: Multi-bidding – as simple as it sounds?

DOSSIER I Fleet Management Trends

New developments in vehicle fleet management: Tendering, Driver behaviour, Connectivity, Telematics, Fuel Management & Technology.

8

. . . . . .

P.26

Multi-bidding : size isn’t everything say fleet managers . . . . . . . . . . . . . . . . . P.28

Driver behavior and its costly tentacles . . . . . . . . . . . . . . . . . . P.30 What fleet managers have to say about driver behavior . . . . . . . . . . . . . . . . . . . . . . . . . . . P.32 Fuel management: Firefighting fuel fraud . . . . . . . . . . . . . . P.34 Here comes the connected car . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.38 Telematics: Data –how to manage it, who owns it, what to do with it . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.40

I MANAGEMENT I MANAGEMENT I Case Study Manoella Wilbaut (DHL)

43

Interview with Manoella Wilbaut (DHL) . . . . . . . . . . . . . . . . . . P.43 Discover the nominees of the Fleet Europe Awards 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.46 A unique opportunity with the IFMI Session in Hamburg . . . . . . . . . . . . . . . . . . . . . . . . . . . P.49

I BUSINESS I

BUSINESS

Interview with new fleet bosses (Toyota, PSA, Nissan)

50

Christel Reynaerts (BMW Group) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.50 Dave Cussell (Toyota Motor Europe). . . . . . . . . . . . . . . . . . . . . . . . . P.51 Elena Delgado (Volkswagen) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.52 Three questions to Cédric Douls (PSA Peugeot Citroën) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.53 Three questions to Olivier Marion (Nissan Europe) . . . . . . . P.55

SCOPE

Company car taxation trends for 2015

56

COLOPHON

Steven Schoefs - Chief Editor - Fleet Europe sschoefs@nexuscommunication.be Laetitia Fernandez - Content & Community Editor - Fleet Europe lfernandez@nexuscommunication.

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 Jonathan Green - Chief Editor Smart Mobility Management jgreen@nexuscommunication.be Johan Verbois - Director of Knowledge Development jverbois@nexuscommunication.be Céline Gilson - Assistant cgilson@nexuscommunication.be Aline Verpoorten - Assistant averpoorten@nexuscommunication.be

I SCOPE I Company car taxation trends for 2015 . . . . . . . . . . . . . . . . . . . . . P.56

Contributors: Jean-François Christiaens, Tim Harrup, Olivier Maloteaux, Frank Jacobs Special thanks to: Erwin Boumans (BDO) Layout: Hungry minds - info@hungryminds.com

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

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

FLEET EUROPE # 72

P.5

Lower costs or higher motivation? Both!

Fleet vehicles and car pool solutions from Mercedes-Benz.

A Daimler Brand

What could be more motivating for employees than a Mercedes-Benz? To facilitate this win-win situation, we provide tailored leasing, financing and insurance conditions which also have a positive impact on running costs. Meaning your days of compromise are over. www.mercedes-benz.com/fleet

The consumption figures relate to the engines (C 180/C 200/C 250/C 220 BlueTEC and C 250 BlueTEC) available for the Provider: Daimler AG, MercedesstraĂ&#x;e 137, 70327 Stuttgart, Germany

market launch (09/2014). Fuel consumption combined: 6.0–4.3 l/100 km; combined CO₂ emissions: 140–108 g/km.

DOSSIER

I Fleet Management Trends - The Company Car

Stars of the new season From October 4th to 19th, the automotive world came together at the Paris motor show, the self-proclaimed “Mondial de l’Automobile”. Here are a few of the major innovations being unveiled in the French capital.

1 - Volvo XC90 After 12 years of good, loyal service, Volvo’s great SUV XC90 is being completely redesigned. The new arrival remains generally faithful to the style of the current model, but there are major technical differences: platform, engines, safety system etc - everything is new and ultra-modern! Particularly noteworthy is the rechargeable hybrid engine offering 400 hp, with a range of 40 km on electric power alone, and CO2 emissions of 60 g/km. Not bad for a beast measuring 4.95 m that can easily accommodate seven adults!

2 - Skoda Fabia Having been given a decidedly more dynamic look, the new Fabia is able to compete more effectively against the Peugeot 208 and other cars like the Renault Clio.

As a cousin of the Polo, it inherits new technologies developed by Volkswagen, such as the recent 1.4 TDI (three cylinders) with 75, 90 or 105 hp in the diesel version, and the modern 1.2 TSI with 90 or 110 hp in the petrol version. The little Czech car is also confirming its ascendancy in the range with the inclusion of new technologies that are rare in this segment, such as an anti-collision radar or head-up display.

3 - Divine DS Having developed into a separate brand name, DS is exhibiting a model in Paris with a promising name: the Divine.

P.8

1 Volvo XC90 This is a compact saloon (4.21 m) with a style that is sporty - and rococo, as can be seen from its reptilian scales! Clearly aiming for the luxury market, the model introduces three interchangeable top-designer looks into its passenger compartment: The Male, combining carbon fibre and shiny leather; Parisian Chic, brimming with full-grain leather, silk and pearls; and Fatal Punk in quilted black leather studded with crystals.

The Divine concept is also equipped with futuristic technology: laser-technology headlights, holographic projection in the passenger compartment, and a digital central rear-view mirror.

2

3

Skoda Fabia

Divine DS

FLEET EUROPE # 72

DOSSIER I Fleet Management Trends - The Company Car

4 Jaguar XE 4 - Jaguar XE Jaguar is about to step on the toes of the BMW Series 3, Audi A4 and Mercedes C Class with its new XE. Making use of lots of aluminium, this completely new model aims to be light and rigid to maximise its roadholding. It will also mark the christening of Jaguar’s entirely new family of 4-cylinder engines, with CO2 emissions falling under the 100 g/km mark from day one. This new saloon is also technologically distinguished by its cool multimedia system and the capability of configuring the car remotely via a smartphone.

5 - Opel Corsa The Opel Corsa has already been on our roads for more than 30 years! Although the outline of the fifth generation remains fairly faithful to that of the current model, the front aspect is designed to be decidedly more modern. Among other things, the Corsa retains the characteristic “comma” from the other recent Opels on its sides. On the other hand, everything is new as regards the chassis. In the diesel version, there is the current - but modernised - 1.31 CDTi offering 75 and 95 hp. In the petrol version, the entirely new generation of 3-cylinder, one-litre turbo engines offering 90 or 115 hp is worth noting. The plan is to launch this new model on the market by the beginning of next year.

P.10

Opel Corsa

6 - Land Rover Discovery Sport Since the launch of the Evoque, Land Rover has set sales record after sales record. And sales are expected to grow even further with the launch of a completely new model in Paris - the Discovery Sport. Although intended to replace the ageing Freelander, this model is actually designed to mirror the experience offered by the Evoque.

The new multi-arm rear stance, for example, offers a pretty impressive clearance of 34 cm! For less demanding customers, the Discovery Sport will also be offered in a two-wheel drive version with more modest CO2 emissions (from 119 g/km). Unlike the present Freelander, the Discover Sport is also available in a 5+2-seat version.

7 - Hyundai i20 As it continues to pick up market share in Europe, Hyundai is taking on the most popular segment in continent with its new generation of the stylish i20. Its wheelbase has been extended by 4.5 cm, giving a bit more room for the rear passengers. Hence, like most of its rivals, the i20 is going beyond the symbolic 4 metres in length. Its boot can now accommodate more than 320 litres in volume.

Another appreciable detail is that the new version of the i20 can be fitted with a large sliding panoramic roof, where preferred, and a handy reversing camera.

6

7

Land Rover Discovery Sport

Hyundai i20

FLEET EUROPE # 72

5

Together with some hard work to lighten the vehicle (the Air 2 L model weighs an additional 100 kg less than a C4-Cactus, or a mere 865 kg!) and refined aerodynamics, this technical approach enables a drastic reduction in fuel consumption of about 30%, while benefitting from more sustained performance.

8 Citroën C4-Cactus

8 Peugeot 208 Air 2L 8 - Citroën C4-Cactus and Peugeot 208 Air 2L French group PSA is continuing its foray into the very promising field of pneumatic hybridisation.

Two models based on the Citroën C4-Cactus and Peugeot 208 benefit from this, demonstrating an average fuel consumption of less than 2 L/100 km. PSA’s HYbrid Air technology is based on the combination of the PureTech 82 hp three-cylinder petrol engine, an energy storage system in the form of compressed air, a unit comprising two hydraulic pump engines, and automatic transmission using an epicyclic gear train.

9 - Volkswagen Passat Alongside complex hybrid technologies, a new system of “simplified” electric turbocharging is being developed.

The Volkswagen group will shortly be introducing diesel engines boosted by electric compressors. In practice, the supercharged air coming from the traditional turbo can be accelerated by an electric compressor if the pressure proves to be insufficient. The main advantage of the system is that the inertia of a turbocharged engine can be reduced and gaps in acceleration in low gears can be avoided. This technology will shortly be available in the new Passat which Volkswagen is exhibiting in Paris. Their 2.0 TDI will then be able to offer up to 272 hp! n Jean-François Christiaens

Catering for every taste The popularity of SUVs seems endless, looking at the numerous versions being unveiled in Paris. There is a model for every taste, size and wallet: the Kia Sorento, BMW X6, Mercedes MLC, Lexus NX, Toyota C-HT, Honda CR-V, Suzuki Vitara - even the Renault Espace, which will be unveiled in Paris, is converting to SUV mode by adopting a slightly higher chassis.

9 Volkswagen Passat

FLEET EUROPE # 72

P.11

Hyundai i40

Big on quality. Small on costs.

A spacious interior, impressive build quality, agile handling and many smart solutions including Intelligent Lighting make the i40 a great place to spend valuable time. And with a new generation of engines and transmissions delivering low fuel consumption, the i40 is the ideal travelling companion for your employees. Your finance department will love it too, thanks to the low cost of ownership. A true win-win situation. The Hyundai i40. Get on board.

Combined Fuel Consumption for i40 Wagon: 4.3 - 7.7 l/100 km, Combined CO2 Emissions 113 - 179 g/km. and conditions. For taxi or rental usage model specific restrictions apply. For more information, visit

3.1 Brand Signature

The 5-year unlimited mileage warranty is valid in all EU member states + EFTA. Warranty is subject to local terms www.hyundai.com/eu

DOSSIER I Fleet Management Trends - The Company Car

What will the fuel of the future be?

Although petrol and diesel engines will always have a future, they will increasingly be combined with electrical energy. As a result, hybrid models are on the increase, but not all of them are cost-effective yet.

T

he experts all agree: the future will be “multifuel”. The market will be shared between several technologies, but none of them will be predominant in the near future. The internal combustion engine still has some life left in it, whether it runs on petrol, diesel or alternative fuels such as the new generations of bio-fuels or natural gas (CNG). However, alongside the traditional engine, hybrid and electric propulsion units are also being developed (plug-ins especially), along with the anticipated longer-term arrival of the electric car, powered by hydrogen via a fuel cell.

The combustion engine is not dead Diesel and petrol will continue to flow into the tanks of our cars for a few more years. According to Martin Winterkorn, Chairman of the Board of the Volkswagen group: “The internal combustion engine still has great potential for development. Since the beginning of this century, we have reduced the fuel consumption of our TDI and TSI engines by more than 30%, and I am sure that we can improve that cost-effectiveness by about another 15% by the year 2020.”

What about purely electric cars?

Vehicles powered by electricity alone are struggling get off the ground, not only because of their high price, but also because of their limited driving range (on average 150 km in practice) and their extremely long recharging time (about 10 hours from an ordinary plug).

Having said that, the range on offer keeps growing.

Among the latest arrivals are the Nissan e-NV200, the Kia Soul EV, the Mercedes Class B and the VW e-Golf.

Renault has also announced that it will be developing a new small electric car for French group Bolloré, which started up the «Autolib» car-sharing system in Paris.

P.14

FLEET EUROPE # 72

Among alternative fuels, natural gas (CNG) is becoming increasingly popular in Europe, and the range of models on offer has been growing each year.

Various techniques make it possible to improve the performance of traditional combustion engines, such as downsizing (reducing the cylinder capacity of turbocharged engines), partly cutting low-load cylinders, developing vehicles that freewheel when going downhill, and the stop-start system, which automatically switches the engine off when the vehicle comes to a halt.

The plug-in hybrid is on the march!

Although different types of fuel will continue to share the roads in the years to come, there is, however, one technology that seems to be very much in vogue at the moment: the plug-in hybrid.

This is a hybrid vehicle (combining a petrol or diesel engine with an electric propulsion unit), but with the special feature that its battery can also be recharged from an ordinary wall socket. These new hybrids have a more powerful battery, making it possible to drive about 50 km on battery power alone, compared with less than 5 km in the case of the traditional hybrid.

The Audi A3 e-Tron Plug-in hybrid, a technical clone of the VW Golf GTE, can drive 50 km on electric power alone.

Over the last few months, the range of plug-in hybrids on offer has continued to grow, both in the luxury segment (Porsche Panamera and Cayenne S E-Hybrid, Mercedes Class S500 plug-in hybrid), and in the midrange (Audi A3 eTron, Mitsubishi Outlander PHEV, Toyota Prius Plug-in, Volkswagen Golf GTE, Volvo V60 Plug-in).

Even prestigious British manufacturer Bentley has announced that it will be converting to this technology: “By the end of the decade, we want at least 90% of our production to be available in plug-in hybrid versions,” declared Wolfgang Schreiber, the owner of the brand.

Somewhat less dramatically, Mercedes announced the arrival of a C-Class Plug-in Hybrid, while Volkswagen will also be marketing its new Passat in a 211 hp 1.4 TSI Plug-in Hybrid version, making it possible to drive 50 km on electrical power alone.

A cost-effective technology?

The plug-in hybrid is proving to be so interesting because this technology makes it possible for CO2 emissions to be greatly reduced (by up to 70%) in normal conditions. That’s something that will also please car-fleet managers...

a cost - partly due to the impressive on-board lithium-ion battery, which means that rechargeable hybrids remain significantly more expensive than traditional hybrids. For example: the Volkswagen Golf GTE (211 hp, 35 g/km of CO2) is priced at about €37,000, compared to a little over €30,000 for the Jetta hybrid (170 hp, 95 g/km of CO2) and just a little over €20,000 for a Golf 1.6 TDI 90 hp.

Of course, the high price of the plug-in hybrid is partly compensated for by lower fuel consumption compared to vehicles with traditional combustion engines (unless you often drive on motorways), and by being able to recharge the battery at the lower night rate (and potentially with “green” electricity). But overall, the plug-in hybrid is not yet cost-effective for traditional use.

This technology is still something for the trend-setter rather than the rational manager of a car-fleet. The same goes for the hydrogen-powered car, which is already being tested in captive fleets, but still has some years to go before being put on the market - as much because its price will be very high as because the public recharging infrastructures supplying the hydrogen are practically non-existent in Europe. ■

But is the plug-in hybrid really cost-effective for the fleets? Not entirely, because this technology does entail

Olivier Maloteaux

Special tyres for «eco» vehicles You’ve probably noticed that the tyres of the latest «eco» vehicles are particularly high and narrow (e.g.: 155/55 R19). This is a new trend that is growing. This shape, which is associated with the high pressure and technological materials used, makes it possible for air resistance and the rolling resistance coefficient to be greatly reduced. This has a positive effect on fuel consumption. On the other hand, of course, the road holding when cornering is not as good as that of wider tyres...

FLEET EUROPE # 72

P.15

DOSSIER I Fleet Management Trends - Funding

Time to purchase instead of lease?

Are the glory days of operational leasing ending?

The International Accounting Standards Board (IASB) will change how lease cars are accounted for on the balance sheet. That may indeed spell a return to prominence for Fleet Management and Outright Purchase.

C

ast your mind back to the mid-1970s, if you can.

People had flowers in their hair and flares on their trousers. And purchasing was the preferred way to get a company car. Fleet management was popular, operational leasing (operational leasing) wasn’t.

Rear-guard battles And then the UK government lost a landmark court case against the leasing sector: lease cars could be taken off-balance sheet, reducing a company’s assets and thus enhancing its return on asset. Starting in 1977-’78, this decision opened the door for the sudden, total and enduring popularity of operational leasing. But now the IASB, aiming to be consistent with its own Conceptual Framework, wants to put operational leasing effects on-balance again. “There are still some rear-guard battles over whether printers and copiers should be on or off the balance sheet, but the battle over lease cars is lost”, an expert observer of the issue notes. The slow-moving process has no end date, but change will come.

Push and Pull But how big will the swing away from operational leasing be? Rather than wait for the answer, some lease companies – GE, ALD and Arval, to name a few – are already offering Fleet Management products, in position for the future pull away from operational leasing. But there are also a few more immediate factors pushing operational leasing customers away. Firstly, the banking crisis of 2008, or rather, its regulatory fallout. If you’re a bank-operated lessor, stricter rules on the balance between equity and risk (to avoid another financial meltdown) mean that the bank has to charge a higher price, pushing lease customers towards alternatives to operational leasing. Very large multinationals, for example, will have access to funds that

P.16

FLEET EUROPE # 72

Operational leasing offers ease of administration, easy budgets and more money. allow them to purchase their corporate vehicles ‘cheaper’ than they could lease them. But that is short-sighted: the profit margin often is exactly that – marginal – and disappears when other factors are taken into account, like the fact that the company then has to assume risk (for maintenance, repairs, etc.) and pay a fee for fleet management.

But there is another push: the suppliers’ lack of transparency, and the customers’ resentment about hidden costs.

Again, there is more to this than meets the eye. Purchasing departments want to maximise immediate profit margins, knowing full well that this pushes costs further down the line – to when contracts need to be changed (e.g. because mileage has been exceeded). One company prioritised an immediate savings of €2.5 million over a projected extra cost of €15 over the total duration of the contract.

Inherent advantages So – why is operational leasing probably going to survive and thrive, even with the new IASB rules? Because operational leasing has a few inherent advantages, that are independent of whether lease cars are on or off the balance sheet: •E ase of administration. Just sign a bank order for, say, 48 consecutive months, and all worries are taken care of.

• Easy budgets. As most costs are fixed, the risk of budgetary surprises is limited.

• More money. operational leasing releases credit lines, which can be used for the core business.

“But because operational leasing has always sold itself in the last few decades, sales people have forgotten how to pitch these advantages”, says the observer. ■ Frank Jacobs

DOSSIER I Fleet Management Trends - Funding

Purchasing or leasing: where does the fleet manager fit in?

Fleet managers are called upon to carry out many tasks, involving men and machines. Men because drivers want to be happy, and machines because the cars selected have to be fit for purpose. Then there’s the third dimension – finance. Some of the most experienced fleet managers outline the issues.

W

hen it comes to selecting the best method of acquiring vehicles, fleet managers find themselves in a situation which is not, in the real sense of the term, anything to do with fleet management. All large companies have a purchasing department and a finance department.

So when the fleet manager sets out to obtain vehicles for the company’s staff to use in their tasks, he or she is clearly encroaching onto someone else’s domain. A mixed fleet of just a hundred cars is worth – at sticker price – something in the region of two to three million Euros. No company spends that sort of money without looking at all the options.

Luc Dendievel of Johnson & Johnson, International Fleet Manager of the Year 2013, emphasises the fact that a fleet manager cannot work in isolation, and points out that the fleet manager may not even have the full picture: “It is very important to talk to your finance department: sometimes they have a point of view that you don’t necessarily recognise.

The internal cost of funds may not be the same as the cost out on the market, so the finance department has to be involved.”

Janos Kis of Coca-Cola Enterprises also takes a ‘wide angle’ view: “Another issue is the fact of the change to leasing accounting standards, which may have an impact on the leasing or purchasing decision.

P.18

FLEET EUROPE # 72

Janos Kis, Coca-Cola Enterprises.

Fer Derwort, Infor.

It is probably a good idea to make decisions as though these new accounting standards were already in place It is probably a good idea to make decisions as though these new accounting standards were already in place – don’t wait for a surprise one day.

In any case the finance department should be able to give guidance.”

And finally, an ‘administrative’ point with a financial repercussion, made very clearly by Fer Derwort of Infor: “Where manpower and manpower costs are concerned, purchasing is

more time-consuming than leasing – this is an important point”.

It is quite clear that the final decision on how to acquire vehicles probably won’t be made by the fleet manager. But when the fleet manager takes an overall view, as those we have quoted here do, everybody’s task will be easier. ■ Tim Harrup

It… is about action not reaction.

ARI is known and trusted by fleet management decision-makers worldwide to minimise risk and control costs. It is about keeping drivers safe. Using data. Presenting it through alerts, trends and driver performance profiles. The result is a world with safer drivers, less accidents, costly repairs, vehicle downtime—and exposure to risk. It is about fleet management success. Moving the needle, and the bottom line.

Learn more about ARI’s professional fleet management services: 0844 8000 700 www.arifleet.co.uk

DOSSIER I Fleet Management Trends - Management

Bundling or unbundling – much to consider As the fleet management industry has matured to the position it finds itself in now, it has gradually added more and more services to the ‘lease package’. Then came the question of whether this really is a good thing.

Let’s look at the current thinking of top international fleet managers when it comes to finding the right place in this puzzle.

T

here are quite a number of elements to the bundling question, and almost all fleet managers talk firstly of transparency in the contract. One view which clearly demonstrates the cyclical nature of the issue is that everything should be unbundled because this gives total transparency.

When elements are bundled fleet managers have often found themselves in a position where they have no visibility into what the costs actually are, and so bundling, it may be felt, can be a tool for suppliers to hide additional margin.

Suppliers have to make a profit, but this has to be a transparent profit, particularly as suppliers and clients both wish to work together in

a partnership. An element such as tyres will often be in a bundle, but looking at tyres, list prices against retail prices very often don’t bear up, as all fleet managers know, which would imply unbundling.

But is it cost-effective to take tyres out of the bundle and do all the administration? Probably not. Having to manage tyres alongside a leasing contract is likely to represent too much administration. With a decentralised fleet it is difficult for a fleet manager to look after everyone and take care of individual vehicles’ tyres – when cars move between employees for example.

The time question If there is a single ‘raison d’être’ which led to the development of

An element such as tyres will often be in a bundle, but list prices against retail prices very often don’t bear up.

P.20

FLEET EUROPE # 72

Bundling brings easier identification of the fleet issues through centralised reporting.

bundling, it is this: bundling is an option which enables a fleet manager to negotiate the whole lease contract with one person. However, if he or she unbundles some of the items this may lead to saving money. It also implies renegotiating, for example, insurance premiums on an annual basis. The same goes for tyres and maintenance – the fleet manager may have six or seven people to negotiate with.

So, especially at an international level, it is often felt better, in terms of administration time, to have one supplier at a local level. Different companies allocate differing numbers of staff to fleet management, and this also affects the unbundling question. If there is no internal team able to manage the complexity of unbundling, it will be an enormous challenge.

A few words of wisdom “It is very clear that the fleet has to be managed in a way which is good for the company. This means that the fleet is cost-efficient, but the drivers have to be happy too.”

“Total transparency is needed in the elements you unbundle.

Otherwise you get into arguments and it can be like squeezing a balloon – you think you’re making it smaller, but it’s getting bigger somewhere else…”

“Unbundling items other than insurance is probably not a good idea because it is likely to make the fleet manager‘s life too complicated.”

“Leasing companies know their business. Transparent bundling is a bit like unbundling, but using the same supplier!”

“If you do want to unbundle, can you analyse the benefits, and how do you measure them? Do you even have a base-line to manage them against?”

Identification Alongside the pure administration of the fleet, unbundling may lead to another problem allied to what is now recognised as a crucial element of fleet management – driver control.

Bundling brings easier identification of the fleet issues through centralised reporting. Managing by exception, finding the cowboys, is not so easy in an unbundled situation. It can take a lot of time to administrate an unbundled situation.

Insurance There is a general view that insurance is one of the elements which is more likely to be unbundled. But if a company has an international fleet, it can be very costly not to know what is at stake. In Italy for example, VAT is paid on the insurance element within the bundle, but then it is also paid on the bundle as a whole – so

the company paying double VAT. This can ad up to a substantial extra cost for a fleet of thousands of vehicles.

This issue can be summed up as one of individual needs, very much depending on the type of fleet. A company needs to look at which parts of a bundle can be easily taken out and provide monthly cost savings.

It is therefore likely that a mix of bundling and unbundling will be the right answer, so long as the internal management costs are not too high.

It is often the same basic question: are you saving money on one side but spending it on another…? In the end, when considering what to do, and just as with so many business decisions, the right answer is probably somewhere in the middle.

Full bundling is very convenient although, it is understood, companies are likely to pay a premium for this –

“With a big fleet, and especially if it is spread over a number of countries, unbundling is probably not the answer.”

“Unbundling fuel is relatively common as it is easy to measure.”

but some of them are willing to do this for the convenience and the service provided. ■ Tim Harrup Editor’s note: Fleet managers have very busy lives, and we are grateful to the following for taking the time to share their thoughts with us: Luc Dendievel of Johnson & Johnson, Fer Derwort of Infor, Lutz Hansen of Bayer, Janos Kis of Coca Cola Enterprises, Tiziana Maniezzo of Dalkia, Karin Meersman of Johnson Controls, Chris Tinajero of Ericsson, Giovanni Tortorici of Barilla.

FLEET EUROPE # 72

P.21

DOSSIER I Fleet Management Trends - Management

To bundle or not to bundle: Fleet managers reflect When they are considering the type of operational lease they want, fleet managers have a lot on their plate.

Virtually everything to do with keeping the drivers in the cars and the cars on the road, can be ‘built-in’, or bundled, as the industry calls it. So how do you decide… some key players share their insights.

T

here are so many options available in a ‘full operational lease’ that the real question in the domain of bundling or unbundling is which items you should unbundle. Lutz Hansen of Bayer is very sure about one aspect: “Insurance is clearly an area for unbundling, but tyres and maintenance are elements which should be left in the bundle. This is because especially with the captive leasing companies – and I see a trend towards captive leasing – they receive better prices from their manufacturers.”

P.22

Transparency Another key question is whether bundling means handing everything over to the supplier (the leasing or fleet management company) without having any view on costs – in other words, losing transparency.

Karin Meersman of Johnson Controls has found a logical ‘middle way’: Just because you bundle, it doesn’t mean you can’t negotiate each item of the bundle with your leasing supplier – you can still obtain good rates in this situation too.

You don’t just have to negotiate on the overall contract price. Bundling in an unbundling way, I call this!”

proportion of cost of sales. I believe that for these fleets absolutely everything should be unbundled.”

out of it too. So if you do unbundle, you have to make sure you don’t squeeze somebody’s margins down to zero”.

The financial question takes on a new dimension when work-related vehicles, such as service vans, are being considered. From the other side of the Atlantic, Chris Tinajero of Ericsson, reminds us that vehicles are not just a stand-alone cost in themselves: “Unbundling is almost a requirement for vehicles which represent a direct

Partnership And completing the financial question, Luc Dendievel of Johnson & Johnson reminds us that in a client-supplier relationship, both sides are in business: “It has to be remembered that the partnership has to be mature, and when people provide you with a service they have to be able to make money

There is a lot for our fleet managers to think about. Along with time saved (or not), the question of money and the transparency of the chosen system, would appear to be uppermost in fleet managers’ minds when deciding how much to (un)bundle. ■

FLEET EUROPE # 72

Chris Tinajero, Ericsson.

Lutz Hansen, Bayer.

Unbundling is almost a requirement for vehicles which represent a direct proportion of cost of sales

Tim Harrup

DOSSIER I Fleet Management Trends - Tendering

Multi-bidding – as simple as it sounds?

Multi-bidding for cars or lease prices may mean different things to different people. Our top fleet managers, whose views are distilled here, are very aware that the situation of the fleet, its make-up and its geographical spread will strongly influence how they approach this issue.

F

leet managers often preface what they have to say about any given topic by pointing out that the best place to start is by understanding exactly how your fleet is made up now, and what the target is in terms of cost saving and having control over the fleet. To achieve this, a matrix which shows what type of drivers the company has and in which counties will usually be helpful.

In considering multi-bidding, with this information at hand the fleet manager can add the third dimension – which leasing companies in the country in question offer the car/services which fit in? A different leasing company in different countries for the same car brand may be the answer. The same car

from different leasing companies may sound illogical, but it can save money. The competitiveness of a given leasing company often depends on the country they are quoting for. And appointing a fleet management company to ensure all of this happens smoothly and at lowest cost may also be a solution.

Market conditions Certain markets may have embraced the multi-bidding route less than others. But here too, the opinion is expressed that even if customers seem to be stuck in a non-competitive leasing environment, it is advised that they go for the multi-bidding route nevertheless. Market conditions may even be influenced by time. For example, experience has shown that rates can increase over time and even the

Fleet managers need to work with partners who understand the business of the customer as well as their own business.

P.26

FLEET EUROPE # 72

time of year can have an impact. At the beginning of the year a supplier may be hungry for volume and offer very competitive rates – but later in the year when the volume is no longer an issue, higher rates may be quoted.

However, whatever the time of year, there are always good rates available on the market and multi-bidding is likely to bring these out.

Residual values The residual value element is now recognised as having a very large impact on TCO. This factor tends to argue in favour of the multi-bidding route. There is often a huge difference between residual value estimates from lease companies and this has a direct impact on the competitiveness of their bid. This varies from brand to brand depending on the time. If a lease cost varies by as little as EUR 20 a month but a fleet has thousands of vehicles… At least three bids should ensure that the bidders are competitive for each vehicle.

Within the same context, it is recommended not to allow the fact that a fleet manager may have suppliers in place stop him or her from keeping the suppliers attentive. It is probably still a good idea to ask for offers from a number of leasing companies in these circumstances. This ensures that the companies remain competitive, quoting against a set list of vehicles specified by the fleet manager.

And multi-bidding within a specific market will ensure a fleet manager obtains the best deal from the local

A few words “Leverage is created by the overall volumes.”

“Once you have selected your suppliers, this doesn’t mean you can’t challenge them. You can still negotiate with them and they need to understand that you are keeping an eye on them.”

“Competition is always good and interesting results can be obtained. You can benefit from market dynamics.”

“With larger fleets, multi-bidding is a must, as it enables you to compare rates. You can make sure you get the best package in terms of TCO.” When it comes to management cars, a lot of companies have userchooser policies and multi-bidding may not be time-effective. dealerships in the basic car price, and also obtains the lowest lease price. This argument suggests that multi-bidding is to be favoured, but on a local rather than a global level.

policies and multi-bidding may not be time-effective. The type of lease contract may also impact on the decision. Multi-bidding would seem to be a natural route for operational

The competitiveness of a given leasing company often depends on the country they are quoting for

Fleet segments Depending on the types of vehicles in a fleet, multi-bidding may be more or less appropriate. If a fleet contains a large number of work-related vehicles (such as vans), but only a relatively low number of passenger cars, the following may be the case: for the vehicles which are in some way related to the business of the company, multi-bidding is a must.

When it comes to management cars, a lot of companies have user-chooser

leasing contracts which are bundled.

But in an unbundled environment the multi-bid route may not be ideal, and would most probably be extremely time-consuming.

Understanding the business Having started by saying that fleet managers need to understand their fleets, there is another similar point to conclude. Managers then need to make sure they concentrate on exactly where they want to opt for

multi-bidding. Is it just in one or two countries, or everywhere…?

They have to know the ins and outs, and, importantly, they need to work with partners who understand the business of the customer as well as their own business. And when the choice is made, even if it goes in the direction of staying with one or two suppliers for each market, this doesn’t mean fleet managers can’t prepare an RFP for all countries.

Another point which will have a long term impact on the effectiveness of multi-bidding (or not) is whether the fleet manager is able to measure results, which is not easy, when you are measuring against something you didn’t choose. ■ Tim Harrup

Editor’s note: Fleet managers have very busy lives, and we are grateful to the following for taking the time to share their thoughts with us: Luc Dendievel of Johnson & Johnson, Fer Derwort of Infor, Lutz Hansen of Bayer, Janos Kis of Coca Cola Enterprises, Tiziana Maniezzo of Dalkia, Karin Meersman of Johnson Controls, Chris Tinajero of Ericsson, Giovanni Tortorici of Barilla.

FLEET EUROPE # 72

P.27

DOSSIER I Fleet Management Trends - Tendering

Multi-bidding: size isn’t everything say fleet managers Multi-bidding may seem obvious – whether involving leasing companies or OEMs – but fleet managers have to consider the cost question and the spread of their fleets. Three top managers tell us how they approach the issue.

T

he question of competitive pricing is at the basis of the concept of multi-bidding.

But on the other side of the coin, where do volume discounts fit into this picture?

They may be considered to be only for large fleets, but Lutz Hansen of Bayer does not believe this to be the case. “If you look at a smaller fleet, it is usually best to stay with one vendor, because you can generate some volume for him – even as a small fleet – and be a valuable customer. This puts you in a better negotiation position when it comes to replacing the vehicles in your fleet”.

In other words, volume is not a finite concept, it depends on the context of the supplier, and fleet managers – especially if they have different sized fleets in different countries – need to bear this in mind.

Tagging along There is an opposing view, though, as expressed by Karin Meersman of Johnson Controls: “Where leasing companies are concerned, international companies can save money by having global policies. The small countries can benefit by being tagged along with bigger ones”.

This view would suggest that smaller fleets will find a better deal by taking advantage of the global purchasing power of their mother company than they could by going alone – however important their deal may be to a local supplier.

This approach does come with conditions too: in order to opt for a

P.28

FLEET EUROPE # 72

Luc Dendievel, Johnson & Johnson.

Karin Meersman, Johnson Controls.

To opt for a global contract, fleets have to find suppliers who have the same global reach as themselves global contract, fleets have to find suppliers who have the same global reach as themselves. And this is obviously not necessarily the case when small fleets are to be found in far-flung corners of the globe.

Keeping control Whichever system is best for a fleet, the process doesn’t end when the lease contract (or car purchase agreement) is signed. Luc Dendievel of Johnson & Johnson warns against allowing erosion to

happen: “Controlling the contracts over the years is vital – otherwise the benefits you originally obtained will slide away”.

It seems clear that as in most aspects of fleet management, there is no simple answer to this question, and certainly no ‘right or wrong’ answer. Each fleet is different, each country is different. ■

Tim Harrup

C O R P O R A T E

S A L E S

FOR THOSE WHO DESERVE THE HIGHEST REWARDS

MASERATI QUATTROPORTE AND GHIBLI High achievers are uncompromising individuals, demanding cars that reflect their status and success. Maserati now answers their needs in the form of the Quattroporte and Ghibli, two masterpieces of Italian design and craftsmanship. V6 and V8 petrol engines and a new diesel V6 power the range-topping Quattroporte – the epitome of all that is desirable in a luxury saloon. The stunning new Ghibli comes with two twin-turbo petrol V6 units and an epic 3.0 V6 diesel that produces 275 HP yet manages to emit just 158 g/km of CO2. Quattroporte and Ghibli: two powerful new fleet possibilities from Maserati.

The Maserati Ghibli range starts at € 54.934 excluding VAT, while the Quattroporte range starts at € 79.700 excluding VAT. For more information or to request direct contact please email corporate.sales@maserati.com QUATTROPORTE DIESEL - DISPLACEMENT: 2987 CM3 - FUEL CONSUMPTION: (COMBINED CYCLE) 6.2 L/100 KM - (URBAN CYCLE) 7.8 L/100 KM - (EXTRA URBAN CYCLE) 5.2 L/100 KM - CO2 EMISSIONS: (COMBINED CYCLE) 163 G/KM - (URBAN CYCLE) 206 G/KM - (EXTRA URBAN CYCLE) 137 G/KM. GHIBLI DIESEL DISPLACEMENT: 2987 CM3 FUEL CONSUMPTION: (COMBINED CYCLE) 6 L/100 KM - (URBAN CYCLE) 7.8 L/100 KM - (EXTRA URBAN CYCLE) 4.9 L/100 KM CO2 EMISSIONS: (COMBINED CYCLE) 158 G/KM - (URBAN CYCLE) 206 G/KM - (EXTRA URBAN CYCLE) 129 G/KM The data can not refer to the models represented.

www.maserati.com

DOSSIER I Fleet Management Trends - Driver behaviour

Driver behaviour and its costly tentacles The insurance industry spends an annual GBP 2.2 bn, processing over 792,000 claims for commercial fleet insurance - or “the tip of the iceberg” according to Masternaut CEO and Chair Martin Hiscox.

So how do we get to grips with driver behaviour?

C

onsider your fleet car. If properly maintained, it’ll do what it’s supposed to every time. It’ll turn left and right, it’ll accelerate and brake.

The most unreliable component in a car is the human behind the wheel – us, drivers, are the weakest link.

A business need Most in the business accept there’s a need for more education and support in driver behaviour. Tackling the obvious safety concerns is a big part of it, but obvious too is the relationship between good driving and lower costs.

With telematics the driver knows what the manager can see: when you know that someone is watching you, you will try to be safer.

“A driver with a heavy right foot,” Franck-Olivier Bizot of Sanofi told Fleet Europe, “is not only going to burn a lot more fuel, but is going to be less safe on the road – for himself, his passengers, other road users. And that’s before we even think about the cost of damage.”

In January 2014, Fleet Europe joined forces with GE Capital to get to grips with general Euro fleet policy. Of those who participated, 61% said that influencing driver behaviour is pivotal in achieving business objectives and 41% are looking to reduce damages and accidents by influencing driver behaviour. Yet, less than half (48%) the companies surveyed have a behavioural change programme.

While Telematics will play a key role in driver behaviour, education, feedback and accountability, Arval estimates just a fifth of companies with 100 or more employees currently use such systems to monitor driver behaviour.

P.30

FLEET EUROPE # 72

Telematics and driver behaviour So before the rush, and there will be a rush, influential road safety charity Brake published best-practice guides for fleet managers when it comes to using telematics in driver behaviour. Brake’s whitepaper considers the effectiveness and worthiness of tech products built to monitor driver behaviour. And solutions are many.

Garmin’s fleetTM 660 and 670 are two Android-based hubs enabling a fleet manager to integrate his or her existing third-party applications and capture intricate data on a vehicle’s status. The units have navigation support and use a gyroscope to record and analyse driver behaviour. British surfacing and repairs company Ferns Surfacing installed TomTom’s Active Driver Feedback system, which feeds data back to drivers in real time.

Reported this year, driver speeding at Ferns fell by an incredible 95%, while harsh steering and braking dropped 65% - all in just three months.

Speaking of eyes, Mobileye is a specialist system based on cameras and sensors that detects all road elements, individually and simultaneously. And it’s fully accountable, as Mobileye Russian GM Roman Ferster told Fleet Europe: “the driver knows what the manager can see, and this is a very important psychological issue: when you know that someone is watching you, you will try to be safer.”

We’ll address the Big Brother question in a sec. But consider that telematics presiding over driver behaviour means data – and that brings its own costs and concerns.

Data revisited This year, feet management software company Fleetmatics – which provides clients with driver, fuel, and location data – announced they’ll sell driver behaviour data to the highest bidder. Turn to our our article about Data, it’s a lucrative avenue.

So employers asking workers to subscribe to more scrutiny and accountability have to be able to return the same transparency, and clearly define where the parameters are, and what’ll happen to driver data.

Yes, telematics systems could help cut fuel usage and CO2 emissions by at least 15% apiece but it’s reliant on the driver. And if they’re not on board, the whole thing’s moot.

Ensuring the tech is there to help is a message Accenture’s Alain Duez relayed to Fleet Europe in August: “the objective is not to locate our people at all, but rather provide them information helping to improve their daily behaviour.”

Training, not just telematics Throwing technology at the driver is one thing, but sound systems means ongoing training and feedback. AXA’s Drive Pro measures physical driving (acceleration, braking, and speed) as part of an overall Driver Care smartphone system which has a feedback mechanism to

Extensive driver education and training has time and cost implication which skews the TCO model further. provide useful advises once the trip is over and the driver is looking at his driving results. For companies in new cultures or locations where road behaviour is quirky or unique – a simple talk could make the biggest difference.

A legitimate employer concern with educating staff is that it’s an investment that won’t have time to mature. Staff attrition means drivers will take expensive training and knowledge with them to the next employer. And that goes down as a

A driver with a heavy right foot is not only going to burn a lot more fuel, but is going to be less safe on the road Safety Management Russia, a training organisation in Moscow, told us that Unilever reported ten times less in total damages following a safety and behaviour course.

Danone reported a 40% drop in accidents after a similar talk.

Plenty of companies and organisations conduct driver training programmes – the big lessors, rental giants, consultant firms, and even manufacturers are in on this action. But extensive education and training has time and cost implication which skews the TCO model further. Firms who send drivers on courses have costs over and above the implementation of technology – and it means days off the job.

big waste when the whole point is finding efficiencies.

Still, doing nothing simply isn’t an option. Experts believe driver behaviour represents as much as 30 40% in the TCO equation. Arval’s Head of Consulting, Denis Ferault, puts that figure at 45%. From safety to speed and SMR, the tentacles of driver behaviour are found in most areas of the P&L sheet so it’s just about the most important improvable area in the fleet. What this means is, it’s one to get right, technologically, financially, educationally – and with your drivers on-side. ■

Ally Millar

FLEET EUROPE # 72

P.31

DOSSIER I Fleet Management Trends - Driver behaviour

Driver behaviour – what fleet managers have to say Driver behaviour has come to be recognised as a vital element in fleet management for at least two reasons: cost and safety. Some top fleet managers tell us how they approach this question.

T

hese two issues are linked, not self-exclusive, as Giovanni Tortorici of Barilla points out, while also highlighting something which seems illogical: “The attitude ‘It’s not my car so I can drive it however I want’ is likely to cost the company money. But obviously this is not a simple matter.

And it is not logical that drivers do not take care of items such as tyres – they are putting their own lives at risk if they don’t keep them in good condition and at the right pressure.”

ROI Driver training, whatever form it takes, costs money – money for training programmes, the cost of having drivers off the road (whatever their function) while they receive training… And all companies are looking for a return on investment.

So how should this be measured in the case of driver training? Luc Dendievel of Johnson & Johnson explains: “The ROI from driver training comes both financially and in terms of safety, and the two are intrinsically linked. When people drive better, they are safer and they are saving the company money. This type of driving is usually better for the environment too”.

Penalties A number of companies have elected to encourage good driving by imposing penalties, having found that making the driver financially liable for poor behaviour can help to bring costs down. It has even been suggested that another way to encourage good driver behaviour is to penalise

P.32

FLEET EUROPE # 72

them if they incur end of contract costs, by giving them a lower grade car next time… And on the other side of the coin, good drivers could become eligible for an upgrade!

It is not logical that drivers do not take care of items such as tyres – they are putting their own lives at risk The ultimate sanction The issue may not simply be a matter of putting all fleet drivers through training courses, however.

And to illustrate just how vital driver behaviour is, Chris Tinajero of Ericsson has a drastic suggestion: “It is really a matter of establishing policies to manage poor driving behaviour. It’s not just training the driver to be good, it’s about pulling people out of vehicles for bad driving behaviour. Don’t let them drive any more”.

Giovanni Tortorici, Barilla.

How can all this be summed up? It is very clear that the cost of accidents and wear and tear on a vehicle are key components of the TCO. Along with these are insurance costs and fuel costs. Driver behaviour needs programmes and needs time and money. But it has to be remembered that in many cases the car is a vital tool for the driver, and his safety is at stake. ■

Hamburg, 18 November 2014 Join the IFMI session for international corporate fleet managers on Driver Behaviour. Further information at ifmi.fleeteurope.com.

Tim Harrup

www.citroen.com

DS 5

NEW BLUEHDi 180 HP ENGINE 4.4 L /100 KM* – 114 G OF CO2 / KM*

POWER – LOW FUEL CONSUMPTION AND LOW EMISSIONS ARE NOW POSSIBLE

180 HP for only 4.4 l /100 Km* and 114 g of CO 2 / Km*: DS 5 offers the opportunity to drive without compromise. Its new BlueHDi 180 EAT6 engine, with automatic gearbox, meets the latest Euro 6 standard. Elegant and respectful to the environment. DS 5 is a car out of the ordinary.

CRÉATIVE TECHNOLOGIE

* On DS 5 BlueHDi 180 EAT6 automatic gearbox with 17’’ alloy wheels, combined consumption.

CONSUMPTION (L/100 KM) AND EMISSIONS OF CO2 (G/KM) OF DS 5 BLUEHDi 180 EAT6: 5.1 TO 5.2 (URBAN), 4.1 (EXTRA-URBAN), 4.4 TO 4.5 (COMBINED) AND 114 TO 118 G OF CO2 / KM

DOSSIER I Fleet Management Trends - Fuel Management

Firefighting fuel fraud LeasePlan reckons fuel is 33% of a fleet’s running cost, but such a big ticket commodity often means trouble.

Millions of Euros are lost every year to increasing complex fuel fraud – but is technology aiding the thieves, or providing a solution?

F

uel – it’s the blood of the industry, and a bloody expensive business. From bad apple drivers to organised criminals, fuel card fraud, fake miles and dilution of product, there’s inventive ways to make rogue money from fuel.

Even three or four years ago, managers commonly managed fuel in a comparably basic, manual way.

Best-practice was a retrospective analysis of what had been pumped, when and where – not what vehicle was filled or the mileage it then recorded. Telematics is changing that.

Telematics GPS, sensors in the tank, and omnipotent management tools are letting managers hold fuel policy up to greater scrutiny, by filling in the gaps in real time.

The Royal Institute of Navigation estimates that the global Advanced Driver Assistance Systems market will be worth EUR 100 bn in two years – and fuel fraud fighting’s a big part.

In March, GE Capital Fleet Services launched their Fuel Guard Reports product where a Garmin navigation device marries a telematics system and gives clients rich location and tracking data to identify fuel fraud quickly and easily.

Similarly, telematics provider Tracker – responding to client feedback – recently coupled their fuel card information with location data enabling businesses to detect fraudulent fuel activity.

Israeli technologists Mobileye install sensors in the fuel tank, complementing their main product offering of camera-powered universal driver awareness.

P.34

FLEET EUROPE # 72

There are weaknesses in fuel card systems which have long been exploited – so robust systems are coming The system has already brought a 10% fuel savings boost to pharmaceutical giant Johnson & Johnson – whilst simultaneously legislating against fraud.

Onto leasers ALD, whose award-winning ProFleet and ProFleet2 telematics systems let fleet managers monitor how much fuel goes into a vehicle, as well as how much comes out in terms of mileage. The data is cross referenced with charges put on company credit or fuel cards to nail fraudulent activity at source.

Drivers These advanced fuel reporting systems do have advantages for drivers – the admin headache of paper receipts, claims and report sheets is being retired in favour of speedy, automatic expenses systems and some managers opt to financially reward drivers who play by the fuel rules.

But packing technology into a car, and holding drivers up to greater scrutiny, are controllables. Fraud by its very nature is not. There are weaknesses in fuel card systems which have long been exploited – so robust systems are coming from the top down as the industry fights back.

DOSSIER I Fleet Management Trends - Fuel Management Shell’s fuel card is backed up by a Shell fraud team charged with staying up-to-speed on country-specific fraud trends and pressing the alarm on any suspicious transactions in real-time.

Fuel Cards It’s no revelation to say that the world likes to pay by card. CapGemini’s latest World Payments Report says that almost one billion cashless payments are made each day and fuel cards are just as susceptible to abuse as ordinary credit cards.

At the petty end, chancers can seize on sloppy card practices – such as not covering up pin numbers. And at the more high-tech end, there’s card cloning and hijacked accounts to contend with. But the fuel giants are ready. With its PLUS Fuel Card, BP lets managers define what is a legitimate spend and subsequently runs every transaction through security filters; alerting managers by SMS or email to any rogue activity.

One better, Shell’s euroShell fuel card – which makes around 260 million annual transactions worldwide and is endorsed by LeasePlan – recently built enhancements

into its Real Time Detection technology, which pinpoints any use outside the pre-defined parameters.

drivers are reported and held to account for stepping outside the rules.

The Shell card is backed up by a Shell fraud team charged with staying up-to-speed on country-specific fraud trends and pressing the alarm on any suspicious transactions in real-time. The Shell Card Online management tool enables fleet managers to block cards per individual, or in bulk, in an instant.

Progress As ever, when tech gets more sophisticated, so do the fraudsters. But as fuel’s such a vital component of the TCO equation, suppliers and fleet leaders are taking no chances. In the little time that telematics and fuel cards have had to make their mark and drive down fuel and fraud related costs, the difference is already being noticed on fleet managers’ balance sheets.

Vehicle tagging In some less mature fleet markets, fuel card technology is yet to conquer, but that hasn’t stopped creative solutions to stay ahead of the fraudsters.

In Turkey, a vehicle tagging system electronically connects cars with the petrol pump and alerts the fuel provider’s systems to the fill-up, showing which station, which car, which client, and how much. A leakage alarm system legislates against siphoning off any fuel. Again, the technology allows companies and their fleet policy to determine and define what a legitimate fill-up is, and what’s not. If the system is suspended at weekends,

Shell’s 2014 Fuel Matters study found that 58% of 200 fleet managers say better fuel card information management systems have been key to making fuel savings, while 64% of managers say telematics solutions have helped them save over 5% in the fuel equation.

We’re at the stage now where there are few excuses left for omitting a tech-savvy fuel management operation, given the ubiquity of even off-the-shelf solutions. ■ Ally Millar

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

DOSSIER I Fleet Management Trends - Connected car

Here comes the connected car Hollywood always gets it right. Knightrider’s K.I.T.T., the Batmobile, BTTF’s Delorean, and even Herbie – for decades, creatives have packed fictional cars full of life, computers, and connectivity for the audience’s delectation. But it’s sci-fi no longer, and the fleet industry’s preparing to strap in for a new journey.

W

ithout guns or time-travel capability, postercars of films gone by will soon drive our roads - suped-up, connected and buzzing with life. Here’s a look at what’s ready to revolutionise your fleet.

What are makers doing?

The 2014 Consumer Electronics Show in Vegas is a good place to start. It was an automatic and autonomous eye-opener; for sci-fi fans as much as auto enthusiasts. Audi’s A7 Autonomous grabbed headlined with its lasers, radar and cameras, distance-detection, speed-limit ID and advanced Audi’s connectivity systems – its kit that’s already powering new Audis.

High-speed web access allows A7 drivers to access news, traffic information and weather reports in real time. Couple that with beefed up web-access and a navigation system that’s powered by Google Images, Earth and Street View, and we’re looking at serious fleet efficiencies.

Parking tech and Cross Traffic Alert; warning drivers reverse parking of oncoming danger. Such innovation offers an excellent safety aid for driver and fleet.

Renault’s R-LINK will soon sit in all ranges and models.

It’s already in the New Clio, Captur and Scenic and users are impressed with the 50 compatible apps, enhanced navigation, and entertainment services. It all smacks of an enticing, enlivening and enveloping experience for fleet drivers on those long journeys – and it’ll pack a punch on the TCO. Continuing with infotainment, Volvo reckons that Getting to your destination safely is essential. But getting there in a good mood is important too. So their Sensus system – which is coming as standard in all cars as of next year – enables in-car web-browsing, video and even music discovery. For the fleet manager looking to offer a new fleet driving experience, there’s that and a moral boost with Volvo.

Having these applications

at the touch of a button will revolutionise transparency

Suppliers and Smart Wars Many more manufacturers have cool new kit, but it’s not just them getting in on the actin. Tier-one suppliers and tech specialists are mapping next-steps for the connected car – with fleet in mind.

and accountability

Of course, it’s not just Audi. BMW has pumped $100m into mobility and tech solutions, and their self-driving M235i Coupe proudly sat at CES. The German manufacturer’s ConnectedDrive system offers a technology packet full of services and apps designed to benefit driver, and thus fleet manager, exponentially.

Ford too has a new Focus which includes an updated SYNC connectivity system based on voice-commands and an 8-inch colour touchscreen. The US giant has a PreCollision Assist system that complies with most world safety standards, and packs in hands-free Perpendicular

P.38

FLEET EUROPE # 72

Bosch is tackling fleet problem areas like fuel consumption, emissions, transparency and reporting with its On Board Diagnostics (OBD) system. OBD processes and sends data to fleet operators alongside helpful usage statistics. Future car specs do now sound more like tech specs – so sticking with our Hollywood sci-fi theme, here’s Smart Wars.

BMW’s ConnectedDrive system offers a technology packet full of services and apps that will benefit fleet and driver alike.

As in the smartphone world, Apple and Google are vying to be in-car Operating System kings. Carplay by Apple lands later this year and already has the support of Audi, Abarth, Alfa Romeo, Chrysler, Dodge, Fiat, Jeep, Mazda and Ram. In practice, drivers sync a fifth-generation iPhone with the system which wires into the car’s controls. Maps, music and infotainment – operated by Apple’s Siri voice tech – are in play for drivers to get the most and the best of their journey; with Apple’s characteristically easy interface.

But where there’s an Apple OS, there’s usually an Android – and Google’s ready for a fight. With GM, Honda, Hyundai and chip providers NVIDIA on-side, there’s a lively lobby behind Android to ensure it becomes the premier connectivity platform in cars, boosting navigation, entertainment and information via the Google applications we all know and love.

Data middlemen For the fleet manager, having these applications at the touch of a button will revolutionise transparency and accountability. For the driver it’ll augment the on-road experience. But before we get too enthused by the scope of connection, infotainment and fingertip tech, it requires a consistent data link, as does the promise of instant analytics reports and in-car communication tools. We need data and telecoms middlemen to plug it all together.

Just as software giants and manufacturers are forming cooperative partnerships, they’re also involving the telecommunications lot to ensure a sound data pipeline.

Tesla has already contracted Telefonica (O2, Movistar, KPN) in Machine-To-Machine (M2M) connectivity for the Tesla Model S in most of Europe enabling the flow of incar infotainment, navigation, music, web browsing, and remote vehicle diagnostics data.

Orange is firmly in bed with Renault and Nissan and with connection giant OnStar, Opel cars will be a travelling Wi-Fi hotspot, enabling quick access to apps and data for up to seven devices. This means provision of a ‘third place’ for fleet drivers, whilst passengers will have access to a workplace while they move – the appeal to fleet managers here, is considerable.

Next steps please The connected car, from the outset, seems a complex issue but manufacturers – to their credit – seem to be working on partnerships that’ll ensure a finished product for drivers and fleet managers to jump in and use – and not have to worry How To...

Yes there are unknowns around cost, and any network black spots. We don’t yet know how definitively TCO will change, and thus how ROI will scale with all the extra kit and training.

Though unanswered questions remain, fleet managers will get answers soon. Just like a Hollywood movie, we’ve paused at a cliffhanger moment… but the drama won’t stop here. ■ Ally Millar

FLEET EUROPE # 72

P.39

DOSSIER I Fleet Management Trends - Telematics

The quest for data Telematics-mix, the connected car. With it flows valuable data linking car to car, car to cloud, and car to company – but big questions lie in waiting like: what improvements will come as a result, who’s entitled to the data and what will they do with it?

N

athalie de Vries, LeasePlan data whiz, recently told Fleet Europe: “In ten years time we probably cannot imagine a life without (telematics)”. And telematics means data – lots and lots of data.

Managing the data Telematics’ dynamic datasets may spell an end to fleet waste. Properly measured data will lead performance, policy and best-practice. Safety and efficiency will shoot up, downtime and costs will come down. The bottom line – and the TCO equation – won’t know what’s hit it.

Having a vehicle’s every move sent to a server for monitoring and performance scrutiny means pure driver, vehicle, fleet and business accountability. Yes, companies might have to employ specialist analysts and systems to filter and manage the figures – but the investment should come to outweigh the costs.

We’ve barely scraped the surface of telematics and there’s a business case throbbing with potential. It could cut fuel usage and CO2 emissions by at least 15% apiece.

Proactive maintenance diagnostics means less vehicle downtime. Greater productivity means more scrutiny of overtime. GPS and time-tracking could see parking and speeding fines challenged. Insurance costs will come down, and if drivers are smart they can present professional safety records to reduce personal premiums.

Telematics could cut fuel usage and CO2 emissions by at least 15% apiece and thus have a legitimate claim on some of the data that comes out. But isn’t it the driver’s data? Within the legitimate employer data lies personal info: music choices, app choices, phone calls, email keywords and so on. What if drivers don’t want their tastes and habits splashed around? This is where it all gets a bit juicy...

So what they’ll do with it?

The car might embody freedom and privacy, but the Internet – the other partner in this marriage – doesn’t.

Telematics-powered cars means data aplenty which, of course, will benefit employers. But let’s not be naïve enough to think it stops there.

Until a test case hits court, data is probably destined for anyone but the driver – and the companies in question

Who owns the data?

It might sound good for all parties. But there’s a more subtle cost. Picture a driver getting ready for the work day. He opens his leased company Volvo with a smartphone app. He gets in and syncs the Android-powered stereo (and Facebook and emails) with his Samsung Galaxy S5 before starting the engine and letting the telematics system do its thing.

It’s not just the employer who claims ownership of the data. All of Volvo, the lessor, the employer, insurer, app provider, telecoms provider, black box company, Google, Samsung and the email client have pumped money in –

P.40

FLEET EUROPE # 72

Visit shop.nexuscommunication.be

FIND OUT MORE IN THE SMART MOBILITY TELEMATICS GUIDE

When it comes to telematics, companies might have to employ specialist analysts and systems to filter and manage the data – but the investment should come to outweigh the costs.

may well come to sell it. That’s how it works online – things are only free because the data we give is so lucrative. Make no mistake, Google, Facebook et al sell us for billions, and advertisers pay top dollar.

Financial institutions want more data to base lending decisions. Brands want demographics and psychographics to reach more appropriate customers, and publishers want to identify who’s reading so they can optimise their advertising inventory.

When connected cars are on the roads en masse, there’ll be bigger and fatter data than Silicon Valley’s finest can procure. Travel patterns, behavioural habits and entertainment preferences are any advertiser’s wet dream, so the data owners (including employers) will have a hard time turning down cheques from the highest bidder – and yet more driver data goes spinning into the commercial machine.

Litigators are likely preparing their arguments for when this all hits the courtroom. And it will. No-one’s doubting the power for good of telematics on the road and in the company accounts. But that’s the practical, not the philosophical, and it’s here where things get tasty. ■ Ally Millar

18 November I Grand Elysee Hotel I HAMBURG

Successfully Engaging Driver Behaviour & Awareness The International Fleet Managers Institute (IFMI) provides international fleet managers with ongoing training opportunities. Are you the manager of a fleet of cars and/or LCVs – and does your job have an international scope? The International Fleet Managers Institute (IFMI) is what you need!

With knowledge transfer at its core, the IFMI gives you the opportunity to: > Participate in professional training to decision makers in international fleet management; > Meet other fleet management professionals to exchange experiences and best practices; > Share creative and innovative thinking in all aspects of international fleet management.

For further information and to register, please visit ifmi.fleeteurope.com Registration: EUR 595 excl. VAT Note that your IFMI registration grants you free access to the Fleet Europe Forum & Awards (19 November) Organiser

With the support of

Major sponsor

ADVERTORIAL I OPEL CORSA

The New Corsa – Even More of a Fleet Treat!

Twelve million Corsas can’t be wrong! That’s how many units Opel sold in the three decades since launching this model, popular with private buyers and fleet owners alike. So look out for the 5th generation Corsa, on Europe’s streets by the end of 2014. The sporty update is even more of a treat for fleet managers and their drivers!

T

he New Corsa ticks all the boxes that matter for corporate mobility. Yes, its design is top-notch and its style is

superb. And yes, the levels of comfort and pleasure are high. But also: the Opel brand’s reliability is essential in guaranteeing good TCO as well as sizeable RV. And of course, the car’s low CO2 emissions fit well with your overall corporate strategy. And last but not least – the New Corsa has a decidedly premium touch.

Award-winning Take a peek in the New Corsa’s high-quality cabin: sleek, modern and stylish. The cockpit’s clean design is centred on a trend-setting

driver control centre and instrument panel fascia. The optional IntelliLink infotainment system’s 7-inch colour touchscreen is ideally placed on the centre stack, between driver and front passenger. Award-winning and compatible with both Apple and Android, Opel’s infotainment system can be operated by voice command.

Bluetooth and Siri Eyes Free complete the in-cabin touch-free technology. A range of apps can be installed, both for business – the navigation tool BringGo, for example – and for pleasure – such as TuneIn, the internet radio app. ■

Safe, Safer, Corsa

Pocket powerhouse

Driver safety is of paramount importance to fleet managers. Which is why Opel has provided the New Corsa with a few safety features normally found only in larger cars – most notably Advanced Park Assist and Side Blind Spot Alert. So: no more bumps and scratches when parking your car, and no more near misses when overtaking on the motorway!

On the exterior, the bi-xenon headlamps with LED daytime running lights and cornering light are more than an expression of Opel’s excellent eye for style. They’re equally impressive for their improved range, brightness and colour intensity – combined with lower power consumption and longer service life.

The all new 1.0 ECOTEC Direct Injection Turbo engine is part of Opel’s major powertrain offensive.

This ultra-modern pocket powerhouse is the only 1.0-litre 3-cylinder production engine with a balance shaft. That enables the New Corsa to set a new class benchmark for low noise, vibration and harshness as well as high driving comfort.

The stats: • 66 kW/90 hp • 85 kW/115 hp • 170 Nm of torque from 1,800 rpm • Fuel consumption from 4.3 litres per 100 km • CO2 emissions from 100 grams per km Other engine options: • 1.2 petrol, 51 kW/70 hp • 1.4-petrol, 66 kW/90 hp • 1.3 CDTI, 55 kW/75 hp • 1.3 CDTI, 70 kW/95 hp These engines provide fuel consumption from 3.2 litres per 100km and CO2 emissions from just 85 grams per km.

P.42

FLEET EUROPE # 72

MANAGEMENT I Manoella Wilbaut, DHL

The ways to innovation in Logistics are diversified The name, red and yellow livery and vehicles of logistics company DHL are familiar sights across the world. This business sector clearly requires a clever use of fleet. Head of Global Commercial Developments, Automotive Sector, Manoella Wilbaut, based in Brussels, confirms DHL is always looking to innovate in its fleet and Logistics practices to ensure the quality level is high.

You wish to be innovative in your fleet. How does this work in practice?

Manoella Wilbaut: We are focusing on developing the use of alternative vehicles. These vehicles will enable us to both reduce our operating costs and our environmental footprint while improving the quality of the service.

We are thus trying to reach that goal by introducing different technologies. One way is through alternative power sources, but we are also testing more aerodynamic vehicles as well as the use of telematics. We are willing to implement pilots in various regions to better understand and cope with local specificities and

Sustainability, the DHL philosophy In its publication ‘Wheels in Motion’, DHL has this to say: “By 2050 the world population will reach 9.5 billion and the number of cars on the road is estimated to soar from 800 million today to 2.5 billion. This may sound good for the world economy, but not so much for environment conservation. Having a sustainable approach is no longer an option. It is our responsibility to work together and develop a solution that will lead to a better future for our society.”

Manoella Wilbaut’s Fleet Card Company: DHL Job Title: Head of Global Commercial

Developments / Sustainable Mobility Program Director, Automotive Sector Sector of operations: Logistics / Transport Number of employees: 450,000 + Number of vehicles: 85,000 + Geographical reach: Worldwide requirements. We are progressively increasing our focus on the most relevant innovations – usually starting with just a handful of vehicles and moving up. When something makes sense and has been completely validated, it will be further deployed across the network.

Are most of your vehicles utility vehicles?

M. Wilbaut: We have a great deal of utility vehicles of course, but with more than 450,000 members of staff worldwide, we also have a substantial fleet of passenger cars. Even though passenger fleets are very important, our first priority remains the utility vehicles, because this is vital to us. A truck is an expensive and important asset for us since it is one of the cornerstones of the logistics business. We must make sure to minimize the downtime of those assets in order to deliver our services with best in class quality and cost.

It is then very important for us to have vehicles which are best suited to the job they have to do. It is equally important that those vehicles are used correctly.

FLEET EUROPE # 72

P.43

MANAGEMENT I Manoella Wilbaut, DHL

Does this mean you pay attention to driver training?

M. Wilbaut: Yes, and this goes beyond just driving the vehicle correctly. Our personnel have to feel part of the company, feel a sense of belonging. This is especially true because logistics is really a ‘people’ business.

You can have the best equipment, the best tools in the world, but if they are not used enough or properly, they are useless.

So, we carry out a fundamental training process whereby each person feels that he or she is an ambassador for DHL and its brand. This is especially noticeable when looking at the dedication our people show to cope with unexpected events and proactively suggest concrete alternative solutions. This philosophy is also shared of course by the various people involved in fleet management at DHL, but also with our vehicle manufacturer partners.

Do you have traditional training courses for drivers?

M. Wilbaut: Yes, we provide training for drivers, but not only. We also include the personnel who work in our hubs and the people involved in our operations in general. This is due to the fact that these people are involved in every stage of the value chain. We realise that it is too easy to focus just on the person who uses a particular tool – the van driver for example – while paying attention to a much

P.44

FLEET EUROPE # 72

You can have the best equipment, the best tools in the world, but if they not used properly, or not used enough, they are useless wider audience provides better results. This means that everyone understands what we are trying to do; there is a sort of common base, and common values. When we have these common values, then we can come with more technical training sessions – typically in eco-driving and safety.

Once again, this all adds up to the company’s culture we wish to spread through every one of our employees.

Formula E Ken Allen, CEO DHL Express, states: “DHL is committed to the same future as Formula E. With our global environmental protection program GoGreen, we have already started to integrate e-mobility into our business.”

Manoella Wilbaut adds: “Formula E is one part of a much broader DHL program called Sustainable Mobility aiming at developing Sustainable Logistics Solutions and Industry Best Practices for our customers now and in the future. Through the program we aim to foster collaboration with the Mobility actors (OEMs, Sector Organizations, Research Organizations, Local Authorities etc.). A special attention is given to City Logistics. Our message to the industry is clear: green is about quality and efficiency, about innovation and consistency and green is sexy!”

Can you measure the results of the training courses?

M. Wilbaut: Yes, we always measure them because if we can’t, it makes no sense to deploy them across the network. Because there are costs involved, it is important to explain how the choices made will help, and to what degree. We particularly measure the impact on CO2, the impact on safety, and of course, the impact on costs. Where eco-driving is concerned, we have seen an improvement in fuel consumption which goes hand in hand with an improvement in safety. Better using the vehicle means using it more safely and efficiently. I put it like this: what is good for the environment is also good for safety, and they are both good for the business.

Returning to vehicles, there are electric light commercial vehicles on the market. Have you tried them?

M. Wilbaut: Yes, we have 300+ electric LCVs in our fleet.

These are deployed for diversified purposes but especially for urban logistics. Our 300 electric vehicles represent a very good start, but only a small proportion of our fleet.

This is not due to lack of interest, but just to the fact that currently, the infrastructure is lacking and technical elements still need to be adapted. We are willing to introduce more environment friendly vehicles in our fleets. We also believe that we must support other initiatives that are likely to foster green vehicle adoption worldwide.

Is this why you are involved in Formula E? M. Wilbaut: Yes, on 13th September, Beijing hosted the first inaugural event of the Formula E (new FIA Championship, the world’s first fully-electric race series). DHL is Founding Partner and Official Logistics Partner of the Formula E. For all ten race locations worldwide, DHL will ensure that all racing cars, spare parts and lithium-ion batteries are delivered safely and on time while incorporating the most efficient and green technology and processes available.

Do you insist on ‘green’ electricity?

M. Wilbaut: Taking into account the origin of the energy we use is important while we insist on reducing our environmental footprint – driving an electric car might actually have a negative environmental impact depending on local energy mix. As a company we must accommodate both environmental and cost impacts. What are the benefits for us, our clients, our partners…? We have to remain pragmatic in our choices – totally green electricity would be our desire, but it is obviously not yet always possible. Accordingly, we follow the best possible route in each circumstance by doing the best we can and selecting the best alternative.

Do you use fleet management companies?

M. Wilbaut: We have partners in a number of domains allied to the fleet, but an enormous amount is done internally. This is precisely because our fleet operations are a part of our core business. We obtain support from our partners but we do not outsource anything which is genuinely our core business. We draw a comparison with an engine manufacturer – he can outsource many other things but not the design or the final assembly of the engine.

Manoella Wilbaut, Head of Global Commercial Developments, Automotive Sector: “Our personnel have to feel a sense of belonging.”

And finally, how do you communicate with your drivers?

M. Wilbaut: We believe in the communication coming from the source which is the closest possible to the person receiving it. We have corporate channels of course, but we wish the various team leaders diffuse the information too. Sometimes, when information comes from a too distant source, people don’t feel involved. So, local information sources are fostered. ■ Tim Harrup

FLEET EUROPE # 72

P.45

MANAGEMENT I Fleet Europe Awards

Discover the nominees On November 19, the international fleet community will get together in Hamburg for the celebration of the Fleet Europe Awards 2014. Here are this year’s nominees – and among them the future winners!

T

here are five Award categories related to corporate vehicle fleet managers who have successfully developed and implemented specific fleet management strategies:

The International Fleet Manager Award of the Year rewards the person or team having most successfully developed an international fleet management strategy and implemented an efficient car policy, leading to an optimized TCO.

The International Fleet Green Award is given to a company that has successfully implemented a green project for its fleet.

The International Fleet Safety Award is given to a company that has successfully implemented a safety project for its fleet.

The International Fleet Mobility Award is given to a company that has successfully implemented a project that focuses on enhancing mobility within the company while offering original alternatives and optimization of the use of the car.

This International Fleet Innovation Award rewards a project that stands out in the field of innovation or novel approach in a specific field of fleet management (car policy, implementation,, tools, green approach, etc.).

The 2014 nominees Franz Fehlner Role: Head of International Fleet, Allianz.

Sector: Finance. Responsible for: 18,200 vehicles.

“Our strategy is to deliver the best services & conditions with maximum process harmonization and savings for the whole group.”

Ronny Van den Driesch Role: Audit & Vehicle Manager, Carglass.

Sector: Automotive. Responsible for: 250 vehicles.

“Our drivers have to be satisfied with their vehicles. They drive safe, functional, high-quality and environmentally friendly vehicles.”

Chris Tinajero Role: Global Category Manager, Ericsson.

Sector: Communication Technology. Responsible for: 16,700 vehicles.

“In a fast moving and growing market, each category must be focussed on fast delivery.”

Barna Kato Role: Indirect Services Sourcing Manager EMEA, Eaton.

Sector: Power Management. Responsible for: 2,500 vehicles.

“Fleet and fleet related services impact the image of Eaton both as business partner and employer.”

Michael Dana Role: Senior Fleet Manager EMEIA, FedEx International.

Sector: Express Freight. Responsible for: 7,800 vehicles.

“We have ambitions to implement “Connected Car” solutions throughout our fleet via telematics solutions that mirrors our company’s vision of a networked society.”

“Our fleet is 100% self-owned since 2002, and we have a centralized fleet management strategy since 1975.”

Fer Derwort

Role: Strategic Buyer Fleet, ThyssenKrupp.

Sector: Technology and Steel Industry. Responsible for: 20,000 vehicles.

Role: European Fleet Manager, Infor.

Sector: Technology. Responsible for: 1,000 vehicles.

“Our fleet programme is simple, clear and provides satisfaction for the employee in combination with the cost-driven fleet strategy.”

P.46

Kristelle Torrent Role: Global Lead Buyer Fleet, Atos International.

Sector: IT. Responsible for: 7,300 vehicles.

FLEET EUROPE # 72

Chung-Uh Alex Han

“We have the whole responsibility to manage the worldwide fleet, set up strategies, make the costs transparent and steer the fleet requirements over the whole vehicle life cycle.”

Karen Ramsden

The 2014 jury for Award categories for fleet managers

Role: Senior Procurement Manager Car Fleet Management, Oracle Corporation.

Sector: Software. Responsible for: 6,723 vehicles.

“We aim to provide a cost effective, well-managed car scheme to aid recruitment and retention within EMEA as part of the company’s wider benefits package.”

Csaba Csiszko Role: Global Director Environment, Health & Safety, Philip Morris International.

Sector: Tobacco. Responsible for: 25,590 vehicles.

“Fleet safety strategy is part of our overall global Operations/PMI Strategy which is reviewed annually at the Senior Management level.”

Patrick Havranek Role: Head of Fleet Management DACH, ISS Facility Services.

Sector: Facility Services. Responsible for: 1,400 vehicles.

“We make sure we get the best cars at the best rates whilst determining they emit the least CO2 and are rightsized.”

Karin Meersman, Corporate Fleet Manager EMEA, Johnson Controls | Luc Dendievel, Directory Category Team Fleet, Johnson & Johnson | Andrzej Sacha, Global Fleet Solutions Manager, Nestlé | Hans den Hollander, EMEAR Car Fleet Manager, Cisco | Robert Patrick, Global Fleet Procurement Director, Merck | Knut Krösche, Head of International Fleet, Aftersales & Used Car, Volkswagen Financial Services | Erik van der Werf, International Sales Director, Athlon Car Lease International | Stéphane Renie, Sales & Business Development Director, ALD International | Jose Luis Criado, Managing Director, LeasePlan Internationational | Alessandro Pigazzi, International Consulting Director, Arval | Vinzenz Pflanz, Chief Commercial Officer, Fleet Logistics | Christel Reynaerts, Head International Corporate Sales , BMW Group | Ian Hucker, Director European Fleet, Opel/ Vauxhall | Martin Jahn, Managing Director , Volkswagen Group Fleet International | Hans-Georg Lutz, Senior Manager International Corporate Sales , Mercedes-Benz Cars | Adrian Porter, Director Fleet Sales & Remarketing, Hyundai | Cédric Douls, Head of International Corporate Sales, PSA Peugeot Citroën | Jean-Pierre Mesic, Senior Vice President Corporate Sales, Renault | Caroline Thonnon, Partner & Business Development Leader, Fleet Europe & Global Fleet | Tony Elliott, International Fleet Expert, Fleet Europe & Global Fleet | Steven Schoefs, Chief Editor, Fleet Europe & Global Fleet |

Honoured suppliers There is also an Award for the efforts of the vehicle fleet suppliers.

The International Fleet Industry Award highlights innovative approaches, tools, products or services of the international fleet industry.

2014 nominees Vulog & Valeo

Dragintra

TomTom Telematics

with BlueSharedAccess

with Mobicells

with WebFleet platform

“A Smartphone application to create a seamless, intuitive, and more convenient user experience in car sharing.”

“Mobicells supports companies in the implementation and operational and strategic management of durable employee mobility projects.”

“The openness of the platform brings new functionality for end-customers and drives open innovation.”

Delta Tech with WinFlotte Business Intelligence

TCOPlus

“A dashboard module to analyse KPIs and data online, in a simple and dynamic way.”

with Fleet scan for alternative powertrains

TecAlliance with TecControl

“A new approach combining a mobility mapping tool and a powertrain TCO calculator and scenario simulator.“

“A platform for calculation, analysis and optimisation of vehicle running costs”

Chevin Fleet Solutions

Athlon Car Lease with FlexDrive

“The vehicle you need when you need it.”

with FleetWave 2.0

“FleetWave is designed to manage geographically dispersed fleets over the globe”

The 2014 jury for the International Fleet Industry Award Alexandra Melville, Procurement Car Fleet, Mobility, and Car Rental, Accenture | Hans den Hollander, EMEA Fleet Manager, Cisco | Janos Kis, European Fleet Category Manager, Coca-Cola Enterprises | Michael Pohl, Category Manager - Auto Category Management, Microsoft | Pim de Weerd, Sourcing Specialist, Philips | Cristina Ivan, Global Fleet Director, HP | Richard Tiffany, Global Fleet Director, Rentokil | Serge Ruytjens, EMEA Strategic Sourcing Manager, Corning | Ben Varey, Global Category Manager Travel & Fleet, SGS |

Hall of Fame The International Fleet Hall of Fame Award recognizes fleet industry leaders and pioneers who have significantly contributed to the international fleet management profession.

VOTE NOW for the International Fleet Hall of Fame Award!

The voting system is open to the entire automotive and fleet industry. You have until November 3, 2014 to vote on http://forum.fleeteurope.com in the category ‘Awards’

MANAGEMENT I Training

Optimised driver behaviour equals optimised fleet performance Of the different entries on a vehicle fleet’s cost sheet, so many are directly or indirectly impacted by the behaviour of drivers. There’s fuel consumption, accident management, insurance, and car wear and tear – to name just a few. To locate the savings, the best-practice and to uncover the efficiencies possible with a strong and sound driver behaviour training and education programme, the IFMI will meet in Hamburg on November 18 and share with us their experience and expertise in what’s a vital area in a fleet’s success.

T

he insurance industry spends an annual EUR 2.8bn, processing over 792,000 claims for commercial fleet insurance - or “the tip of the iceberg” according to Masternaut CEO and Chair Martin Hiscox.

The theme: Successfully engaging driver behaviour and awareness. It’s a full day’s training session, only for corporate fleet managers, that’s built around case studies and hands-on experience from international fleet managers – those whose driver behaviour programmess are delivering real and tangible results.

Starting at the beginning, IFMI presenters talk the audience through the vital stages of driver behaviour – from installation to evaluation. From programme set-up to getting buy-in and commitment from company stakeholders, setting a baseline, defining the KPIs – and ultimately, ensuring staff engagement and motivation translates into real savings on the balance sheet.

There’ll also be a special emphasis on the relationship between fuel and driver behaviour as we look at new powertrain vehicles, helpful technology and taxation.

The session will conclude with a practical outlay of the tools and guidelines that’ll help you make the most of a

Driver behaviour, it’s not just about the driver and his car, it’s about your fleet management optimization. rewarding journey into driver behaviour. Knowing that driver behaviour is directly linked to more than 40% of your vehicle fleet’s TCO, this session is without a doubt an unmissable opportunity to get ahead in the race towards more cost-effective fleet management. Register now on ifmi.fleeteurope.com ■ Steven Schoefs

IFMI, 13 years of training IFMI (International Fleet Managers Institute) is a collaboration of Fleet Europe with a select number of industry leaders: ALD International, Athlon International, Arval, BDO and LeasePlan International, with the support of Toyota Motor Europe.

For 13 years, IFMI has been organising seminars and webinars for corporate vehicle fleet customers, zooming in on the latest sector trends. Are you an international fleet customer. You can become an IFMI member. As an IFMI Member you have free access to premium content such as analyses, IFMI presentations, and webinars.

Visit http://ifmi.fleeteurope.com

FLEET EUROPE # 72

P.49

BUSINESS I Christel Reynaerts, BMW Group

BMW ConnectedDrive optimizes TCO, CO2 emissions, Safety BMW has been making greater inroads into corporate car fleets for some years. Along with its image and model line-up, connectivity is an important feature. Head of International Corporate Sales Christel Reynaerts explains the advantages.

“

Connectivity is a key instrument and a hot topic in the fleet industry today and with ConnectedDrive, BMW is spearheading when it comes to apps and services covering safety and office functions, and also driver assistance.”

There has been connectivity – ConnectedDrive – in BMW cars for around forty years. What have been the main changes during this time?

Christel Reynaerts: The principal remains the same – we want to connect the driver with the outside world, in a way which is useful to him. What has changed is that

Christel Reynaerts, Head of International Corporate Sales BMW Group.

P.50

FLEET EUROPE # 72

the technology we use has totally evolved. For example, we now operate with a SIM card which is permanently installed in the car.

This is a really important feature because in the case of an accident, it enables an automatic emergency call to a BMW operator – a specially trained BMW employee who ensures that all the necessary rescue measures are deployed. This happens even if a driver is unable to make a call by himself because he may be unconscious for example. The systems in the car mean that the operator not only knows where the car is, but knows how many people are in it, and how severe the accident was.

Does ConnectedDrive also have an impact on TCO and CO2 emissions?

Ch. Reynaerts: Yes. There is our advanced traffic information system which we call ‘real time traffic information’. This ensures that the driver can take the quickest and most efficient route according to the traffic situation– even if it is bit longer. This has a direct impact on both costs and productivity, and reduces the CO2 emissions that traffic jams cause.

Our cruise control is also equipped with Stop&Go. Another feature of ConnectedDrive, concerning safety, is what we call ‘Intelligent Lane Departure Warning’. Out cruise control is also equipped with Stop&Go. I would therefore sum up the basic advantages of ConnectedDrive as being in terms of cost, CO2 emissions and safety. These advantages come

alongside our ‘EfficientDynamics’ programme, which sees us continually optimizing the efficiency of our engines, both petrol and diesel, and that sees improved aerodynamics too, for better TCO. Lightweight construction is another point on which we work hard, and which is seen in our electric cars – i3 and i8.

The brake energy recuperation system also brings down costs. The i8 is not primarily a corporate vehicle for us, but it is an important flagship precisely because it includes new technologies which radiate out to the rest of our portfolio.

Which models are the most important in fleet at the moment?

Ch. Reynaerts: The 3-Series remains our top seller into fleets.

After that is the 5-Series – these two constitute the fundamentals of our fleet sales. And in some countries, our X-Drive line-up is popular in fleet too. We have of course been extending our model range, in particular with the launch this year of the 4-Series Gran Coupe, the 2-Series Active Tourer, and, later this year, the MINI 5-door hatchback.

These three models enable us to compete in fleet segments where we did not have a presence before, and are totally in line with customer requirements. I would add that the electric i3 is also proving popular with fleet managers looking for the ultimate in ‘green fleet’. ■ Tim Harrup

BUSINESS I Dave Cussell, Toyota Motor Europe

Continued growth with surge in hybrids Dave Cussell, General Manager Fleet & Network at Toyota Motor Europe (TME), is seeing green – both in terms of financial success and creating a cleaner, more sustainable world.

T

he numbers speak for themselves, with Mr. Cussell noting that 2013 was the third consecutive year for growth at TME, with sales totaling 847,540 vehicles. A high percentage of those sales can be attributed to hybrids.

The first half of 2014 has also been very strong for TME with new attractive products such as Aygo and Yaris.

The challenge with fleet, especially as it relates to hybrids, is providing “the right level of product with the right customer support.” He added that Toyota has a distinct advantage when it comes to meeting customer expectations because it is the world leader in hybrid vehicles. “Our knowledge and experience is second to none.”

Toyota has sold more than seven million hybrid-powered cars over the past 20 years and is so confident in its technology, which is supported by the addition of an electric motor and battery pack, that it uses the technology to power its Le Mans racing vehicle. In 2014, Mr. Cussell said Toyota’s reach is further extended by the launch of the new hybrid Auris Touring Sports sedan, with very low CO2 emissions – just 84g/km.

First hydrogen fuel cell car?

Toyota has no plans to slow its pace in hybrids, with 15 new or renewed hybrids expected globally in the 2014-2015 timeframe.

“As our customers gain more experience with the technology they discover many benefits besides just CO2,” he explained. In addition, the car manufacturer plans to introduce its first hydrogen fuel cell car to Europe next year. This vehicle is particular exciting, said Dave Cussell, because hydrogen can be produced from a wide variety of primary energy sources, including solar and wind power.

No matter the fuel type, Dave Cussell emphasized “our plans are both ambitious and realistic,” with much of the focus on supporting local implementation. Toyota’s “big advantage” in the European market, he stressed, “is the breadth and depth of my teams experience in both fleet and network. This team is remarkably dedicated with unbelievable energy. I don’t think there is anything we cannot do if we think it’s the right thing to do.” One tool the team has in its back pocket is its strong partnership with Toyota’s captive financing arm, Toyota Financial Services (TFS).

Cussell revealed that Toyota and TFS are “working on a number of fronts that will increase our value proposition to fleet customers.”

Dave Cussell, recently appointed as General Manager Fleet & Network of Toyota Motor Europe.

BusinessPlus As a table stake, Toyota also continues to bank its reputation on high quality. “Toyota has always been renowned for quality,” he explained, “with our proven low breakdown record and award-winning quality, reliability and durability across the range of our vehicles. We were recently named ‘the world’s most valuable automotive brand’ for the second year in a row,” he added.

Much of the sustained momentum could be attributed to Toyota’s unrelenting focus on branding, with Dave Cussell noting that “we have recently launched our new pan-European fleet brand, ‘BusinessPlus,’” to help “galvanize fleet teams across Europe.” He explains that this initiative is targeted to key markets in Europe where TME can support “breakthrough plans,” especially in some regions, where “our hybrid story still needs to be demonstrated.”

All of these efforts are wrapped around Toyota’s emphasis on “rethinking and streamlining processes,” says Dave Cussell, an area that he is intimately acquainted with given his previous position leading Toyota’s Global Knowledge Center. The goal is to apply the principles of the Toyota production system to fleet management sales and marketing.

Ultimately, Dave Cussell hopes that all of these strides will encourage corporate clients to add more to their fleet. Their choices, he says, can “have a massive impact on society” and “affect the future sustainability of the world we live in.” ■

Steven Schoefs & Caroline Thonnon

FLEET EUROPE # 72

P.51

BUSINESS I Elena Delgado, Volkswagen AG

Staying ahead of the game with new Passat Volkswagen is maintaining its leadership position in the True Fleet market in Europe with 276.000 cars registered up to July 2014; this represents an 8.3% increase compared to 2013 and a total market share of 13.7%. Head of International Fleet, RaC and Used Car Sales Europe, Elena Delgado, explains how the German giant is so successful in fleet.

T

he Volkswagen Golf and Polo are of course regular features at the top of European model sales list.

But the great attention paid to satisfying fleets, and the important new Passat, also play major roles in Volkswagen’s success.

“With our initiative in fleet business we are contributing to the Volkswagen Strategy 2018”, says Head of International Fleet, RaC and Used Car Sales Europe, Elena Delgado. “One of the main objectives is high customer satisfaction. A focus on customer wishes and preferences are the starting point for developing innovation. We involve fleet customers from the beginning of the development of our new products.

Corporate customers need special and individual attention. We continuously work on professionalizing our

Elena Delgado: “Corporate customers need special and individual attention.”

P.52

FLEET EUROPE # 72

The new Volkswagen Passat, following on from 22 million sales. fleet sales organization at importer as well as dealer network level. The implementation of Business Centers with dedicated staff is one example of how we are doing this.”

What about the environmental and cost questions?

Elena Delgado: Fuel consumption and CO2 emission have been improved in order to decrease cost per km and to meet ambitious car fleet policies. And of course, also our electric models like the e-up! and the e-Golf as well as our first Plug-In Hybrid, the Golf GTE are very important to balance the CO2 emission level of our customer’s fleet. Together with Volkswagen Financial Services AG we offer our customers in some countries attractive service and maintenance packages. All these parameters are the basis of our best in class TCO.

What are your main challenges and how will you meet them?

E. Delgado: A major challenge for our industry will be to adapt even faster to the changing needs of customers. International fleet managers in Europe are mature customers with very complex demands and very clear targets. Another challenge we are experiencing is the growing price pressure in the fleet market derived from the difficult economic environment. We want to remain faithful to our principles and not come to the market with aggressive tactical conditions that would destroy our excellent residual values.

How important is the new Passat for your fleet business?

E. Delgado: Since the launch of its first generation in 1973, more than 22 million units have been sold

BUSINESS I PSA around the world. As the New Passat is a very important model for us, we would like to make it the second Volkswagen brand pillar behind the Golf. We believe in the success of this car and that we will make even more sales compared to the Passat B7 in the first year. To achieve this target, we opened for order at a relatively early stage in the launch to create awareness and boost sales early on.

What will be next in terms of product and technology, interesting for corporate clients?

E. Delgado: Volkswagen is always trying to address specific fleet needs.

For the first time, there will now be a Passat with a plug-in hybrid drive system, to be launched in 2015. This model will be offered with the potential to travel 50 km on battery power alone, and with a maximum range of around 1,000 km. We are also working on safety assistance systems and interior roominess that both represent best in class functionality. ■ Tim Harrup

The new Passat in key facts • Reduced fuel consumption • Increased leg- and head-room • More luggage space • LED rear lights with distinctive horizontal tail light signature that switches into vertical when the car brakes • In conjunction with Dynamic Light Assist, one of the two LED headlight options automatically adjusts the beam for maximum illumination of the road without dazzling other traffic • Optional Active Info Display replaces the instrument cluster with a fully configurable interactive 12.3-inch TFT display

3 QUESTIONS TO...

CÉDRIC DOULS, Head of International Corporate Sales at PSA Peugeot Citroën As the new Head of International Corporate Sales at PSA Peugeot Citroën, Cédric Douls aims to generate 50% of the Group’s sales outside Europe by 2015. The Economics master, with previous experience at Toshiba and GE Fleet Services before joining PSA in 2009, wants to achieve that goal by positioning the Group’s brands as key OEM partners for international corporate customers.

What are your goals as PSA’s new Head of Corporate Sales in Europe?

Our products already are desirable, enjoyable and benchmarks in TCO. I want to position our brands as the key OEM partners for international corporate customers. How? By offering best quality of service, relationship and consultancy. I also want our B2B teams to anticipate changes in the Fleet Business, via intense cooperation, nationally and internationally. And from my position at HQ, I will stay close to our Network and Countries, as they are the source of major info and new ideas.

Last but not least, I want to strengthen our position in all our six regions – Europe, Eurasia, Middle East/Africa, Latin America, China and ASEAN, and Asia-Pacific – and hit the target of generating 50% of our sales outside Europe by 2015.

So how are your fleet sales so far this year?

Despite continuing challenges in a lot of European markets: quite good, actually. In the European countries of the G-10 group, Peugeot is up 6% and Citroën 6.5% for the year up to August, compared to the first 8 months of 2013. Globally, our Group is up 6.2% in the G-10. We have our strong products to thank for this: the Peugeot 308 – the European Car of the Year – and the Citroën C4 and the Grand C4 Picasso.

• BlueMotion version with 95 grams per km

How do you see the future of corporate fleet management in general, and for PSA in particular?

I think we’ll see major changes in mobility, connected cars, fiscal policy and a move from International to Global. We’re still at the beginning of those stories. Which is great, because I consider them opportunities, not threats. ■

• Front Assist system with City Emergency Braking

Frank Jacobs

• New 2.0 litre bi-turbo TDI developing 240 hp • Best-in-class residual values

FLEET EUROPE # 72

P.53

BUSINESS I Nissan Europe

BUSINESS I News People

3 QUESTIONS TO...

OLIVIER MARION, Nissan Europe

Nissan is trying to carve out a larger slice of the European fleet market. Olivier Marion, who joined Nissan Europe a year ago and is now head of Corporate Sales gives us an insight.

What is your background in the automotive sector?

I have spent around twenty five years in the automobile industry with PSA, GE and Nissan starting in the UK and holding a number of positions in sales and marketing. My fleet experience comes mainly from Peugeot and Citroën where I was lately Business Development Manager for Southern Europe and South America. I also spent some time with GE Capital Fleet Services as Pan-European accounts Manager. This experience has given me a wide vision of the fleet market both from the car manufacturers and the leasing companies’ point of view, which is extremely useful. After a year in charge of leasing and key accounts sales at Nissan Europe I am now corporate sales general manager.

How is Nissan doing so far this year?

Nissan is in a strong growth phase regarding fleet volumes and we expect to finish this year in the area of 4% share of the European market.

We are aiming for 5% in 2016, and this is part of our Power 88 strategic plan. This global plan name reflects our will to reach a worldwide market share and an operating profit of 8% by 2016. With all the Nissan fleet team we are living really exciting times, launching four brand new vehicles this year. We’ve just had also Juke restyled. As you know, the new models are Qashqai, X-Trail, Pulsar, and a very important electric LCV, the e NV200. This last model is designed to ensure we keep our leading position in the EV world. Many fleet clients have already shown their interest for e NV 200 and our pre-orders campaign has reached its target one month in advance.

What is your strategy towards fleets?

What we have done over recent months at Nissan is to introduce strong selling arguments for the fleet sector. An excellent illustration of this is the CO2 level of the Qashqai – it now starts at 99 grams per km which is quite remarkable for a crossover. The Pulsar is even lower, starting at only 94 grams. We are taking great care to anticipate the needs of fleet clients with our TCO strategy and standard equipment strategy. Another illustration of this is the fact that we are offering more and more business editions of our cars to meet fleet customers’ expectations. On top of this, all our country corporate sales teams report directly to the local Nissan MD, showing that we consider fleet sales as important as private. ■

At Opel/Vauxhall, Ciprian Suta has been appointed to the position of Pan European Corporate Sales and Leasing Director, reporting to European Fleet Director Ian Hucker.

“My objective is to build on the already excellent relationship we have with our corporate clients and focus on making Opel/Vauxhall the manufacturer of choice for the corporate customers,” he commented.

The Board of Directors of Europcar and Eurazeo, the majority shareholder of Europcar, appointed Philippe Germond to the position of Chief Executive Officer and Member of the Board of Directors from October 1st. “I will commit fully to pursuing its drive toward transformation with the goal of making Europcar into a key mobility player attentive to the changing expectations and needs of its customers,” explained Germond.

Bruno Ancelin has been named Executive Vice President, Product Planning and Programs of the Renault group from 1 October.

He will join the Renault Executive Committee and report to Thierry Bolloré, Chief Competitive Officer.

On the same date, Jean-Christophe Kugler will become Senior Vice President, Chairman of the Eurasia Region, taking over from Ancelin in this position.

Read more at www.fleeteurope.com

Tim Harrup

FLEET EUROPE # 72

P.55

SCOPE I Taxation

Company car taxation trends for 2015 Company cars have been one of the most favourable tax incentives for many years. Even now that the calculation base for the benefit in kind on the part of the beneficiary tends to increase and higher environmental taxes apply, most vehicles purchased are destined for the fleet industry. Here are a few emerging trends throughout the EU. Shift from labour taxes towards environmental taxes The 2014 Eurostat report on “Taxation Trends in the European Union� points out that labour taxes currently remain the major source of tax revenue in the EU. However a steady shift towards consumptions taxes and taxes on capital can be established. In addition, more and more EU countries are considering the degree of pollution as a basis for taxation.

Taxation of company cars is affected by both labour tax measures and environmental tax measures and are therefore closely looked at by national legislators.

Especially Belgium, in its attempt to come up with new budget saving measures for the next government, is likely to focus on the possibilities to introduce heavier taxes on polluting vehicles.

But the persisting focus on labour taxes is still reflected by the fact that the majority of the EU countries take into account the purchase price (catalogue value) or the usage cost of the company car to assess the benefit in kind on the part of the employee in relation to the private use he makes of the vehicle.

Emissions-based company car tax systems The 2013 edition of the annual European Taxation Guide, produced by Nexus Communication, points out that about 20 EU countries introduce tax schemes that are CO2-inspired. This is strengthened by the introduction of new EU carbon emission limits of 130 g/km by 2015 and 95 g/km by 2020.

Reducing CO2 emissions of the fleet appears to pay off most in countries like the UK, France, Spain, the

P.56

FLEET EUROPE # 72

Reducing CO2 emissions of the fleet appears to pay off most in countries like the UK, France, Spain, the Netherlands and Belgium.

Netherlands and Belgium. Registration taxes in these countries are linked to CO2 emissions.

Along with this trend, growing numbers of countries (already some 15 member States) offer incentives in relation to low carbon-emitting electric vehicles.

For instance, Belgium still assesses and taxes fringe benefits at a rather low level on the part of the beneficiary, however excludes expensive and highly polluting vehicles.

Electric vehicles Electric vehicles (EVs) came into circulation as a response from the automotive industry to governmental pressure to increase in fuel efficiency for cars, trucks and buses.

Some Member States provide for tax incentives specifically for EVs. The incentives range from subsidies for purchasing EVs, special allowances for company purchases, exemptions from road taxes and reduction of the taxable value of company cars to calculate the benefit in kind for personal income tax purposes.

For example, the UK provides for a waiver of road tax and company car tax, as well as a 100% allowance on purchased EVs. In Germany, the calculation basis for the benefit in kind of a company car on the part of the employee is reduced by means of a reduction of the taxable value of the vehicle.

Nevertheless, despite the fact that EVs lower CO2 emissions on the road, they do consume electric energy. In addition to that, as the number of EVs sold grows, so

Fleet managers can already produce significant savings in fuel costs by lowering CO2 emissions by only 10g does the risk of losing indirect taxes and special fuel taxes. Governments must find a balance in pushing EV sales via tax incentives and gaining tax revenue from other types of cars.

That is why some countries already start limiting those tax incentives for EVs to certain extent. The UK, for instance, puts an end to the 100% ‘First Year Allowance’ for company purchases of EVs by April 2015.

And Germany is also gradually reducing the lump sums for the calculation of the benefit in kind, until they are totally phased out in 2020.

Europe’s No. 1 Remarketing Company.

BCA offer a complete service to support our customers through the whole vehicle remarketing lifecycle.

Services - Inventory management solutions - Consultancy & training - Appraisals & valuations - Valeting & repairs - Transport & logistics - Analysis and reporting

Sales Channels - Online - E-auctions - Telesales - Field force - Physical auctions

• • • • •

50 centres across 11 countries Over 1 million vehicles sold across Europe Over 300,000 vehicles sold online Over 1 million vehicles transported Over 100,000 active buyers

Helping to make business easier. bca.com FLEET EUROPE # 72

P.57

SCOPE I Taxation

As the number of EVs sold grows, so does the risk of losing indirect taxes and special fuel taxes.

Belgium’s pilot project on a tax friendly ‘mobility budget’ In Belgium, a pilot project was launched in 2013 with the so-called “mobility budget”.

This mobility budget is meant to be a tax-friendly budget, which the employee can spend to different means of transport. This would allow him to freely spend the budget to the use of a company car, bicycle and/or public transport (bus, train).

Some 25 companies have participated in the original pilot project and already other companies started testing the mobility project on their own initiative.

That is why tax incentives for EVs and for the electricity used to power them are likely to be available only for a limited period of time. However, at this point, it is hard to say whether this will be an actual trend also in other EU Member States in coming years.

New composition of fleets will enhance significant savings Given the new trends in taxation of company cars, a smart tax efficient fleet strategy becomes of major importance.

Fleet organisations may want to have a double focus in the next few years: • Modify their fleet, offering “green cars”, selecting cars with low carbon-emitting (electric hybrid) engines.

Fleet managers can already produce significant savings in fuel costs by lowering CO2 emissions by only 10g; • Take into account the mobility profile of their drivers: distance driven, areas they drive (urban, non-urban, or highway) in order to compose a tailor-made fleet for their customers.

P.58

FLEET EUROPE # 72

By now, certain political parties are in favour of developing tax legislation to make this mobility budget appealing. Athlon Car Lease Belgium has, based on currently existing tax legislation, introduced its “Railease” product together with the Belgian rail road service (‘NMBS’).

Railease offers businesses the possibility of an extended remuneration package whereby, besides providing a company car, they can also provide a budget for railroad transport, without additional charges. The driver chooses the means of transport according to his needs of the moment.

This means that fleet organisations may want to be open not only for a new composition of the fleet they are offering. They might also want to extend their activities in offering lease contracts that include different means of transportation besides company cars. ■ Erwin Boumans BDO