Fleet Europe °77

JUNE 2015 - # 77

NEXUS COMMUNICATION - FLEET EUROPE #77 - PERIODIC MAGAZINE - JUNE 2015 - DEPOSIT OFFICE LIÈGE X

SPECIAL CAR LEASING

ALL you need to know about the market players · Products · Services · Challenges · Opportunities ·

MEET THE EXECUTIVE Werner Eichhorn, Škoda The start of a new era

SUBMIT YOUR APPLICATION NOW AND BECOME A WINNER!

ADP

The US versus EU fleet equation

MANAGEMENT IN PRACTICE

Sodexo

When Glocal fits the fleet needs

THE NEW SEAT LEON X-PERIENCE WITH 4DRIVE RECOMMENDED BY OUR FLEET DRIVERS

TECHNOLOGY TO ENJOY DISCOVER NEW ROUTES FOR YOUR BUSINESS Designed for business and pleasure, the New SEAT Leon X-PERIENCE adds all-road flair to a model already widely valued both as a fleet vehicle and as a private car. It combines a specific exterior design and exclusive features to perfectly complement an active lifestyle.

SAFE DRIVE WITH 4DRIVE

NEW GENERATION INFOTAINEMENT

VERSATILE AND SPACIOUS

WHAT OUR CUSTOMERS SAY… “I was so impressed with the Leon X-PERIENCE that I would not only buy this vehicle for the fleet, but also for myself.”

Sabine Schussmann - TROST AUTO SERVICE TECHNIK. Stuttgart, Germany

SEAT FOR BUSINESS Average consumption: 4.8 - 6.8 l/100 km. Average CO2 mass emissions: 125 - 152 g/km.

SE AT.COM/BUSINESS

EDITORIAL

An exciting time to be in the business For many years now, corporate fleet managers have been demanding greater levels of transparency from car leasing providers. How much details do fleet managers want, exactly? They’ll tell you they want a complete insight into all aspects of the lease contract. And they want to know how the leasing providers are making their money – and how much. Unsurprisingly, leasing companies are a little unhappy about volunteering this information. They’re taking the main risks. Shouldn’t that also entitle them to make a profit how they see fit? And yet, as you’ll see in our Car Leasing Focus, the industry is investing to meet the continuous demands for more transparency. Data management and reporting are big news, changing driver behaviour is a key topic, and mobility management is moving up the agenda like never before. Engaging with the individual driver is central to save cost and optimise fleet performance. Innovations are challenging the fleet management status quo.

Further in this magazine, the Leaseurope interview stresses the importance for leasing companies to move from today’s car-centric approach to tomorrow’s employee-oriented mobility. Not that Europe’s fleet leaders and suppliers are resting on their laurels. We all know that there is loads of great stuff going on in our fleet community. Just not always in the spotlight of publicity.

But wouldn’t it be great if more people knew about your achievements – at the Fleet Europe Awards 2015? This is your chance to show your peers what you’ve done to move fleet management into the future, and bask in the limelight for a moment or two while you’re at it! There are awards for Green & Mobility, Safety and – much-coveted – International Fleet Manager of the Year. Suppliers aren’t forgotten: the International Fleet Industry Award recognises innovative new supplier services. It’s time to be proud of your achievements and let others know. Enter as a candidate for the Fleet Europe Awards 2015. Go to forum.fleeteurope.com/ awards to find out how!

Be proud of what you’ve achieved and tell others via the Fleet Europe Awards 2015.

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

Enhance your fleet expertise

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? Then the IFMI’s educational programme is what you need to enhance your fleet expertise!

2015 PROGRAMME > Webinar - Diesel or Petrol in Fleet Management: Make the right choice - 10 September 2015 For years diesel has been the preferred fuel of vehicle fleets in Europe, but recently questions have been raised about the possible cost-efficient integration of petrol vehicles.

Learn more about the different fuel types for your car fleet drivers with this webinar. > Full day session - The TCO equation when selecting Alternative Powertrains - 18 November 2015 Experts and fleet managers will share expertise and discuss do’s & don’ts of fleet management, whilst looking at the TCO concept and its evolution, and focussing on the cost structure of your fleet when alternative powertrain vehicles come into play.

Further information and registration at ifmif.fleeteurope.com ifmi.fleeteurope.com Organiser

With the support of

FLEET EUROPE # 77

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The car fleet market in Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.6 The car leasing evolution in Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.12 Car leasing across the globe

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Who’s who in car leasing land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.18 An update on the car leasing presence . . . . . . . . . . . . . . . . . . . . . . . . P.26 The Big 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.31

DOSSIER I Car Leasing in Europe All you need to know about the car leasing industry in Europe: Who’s who, products and services, trends and developments

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Local car leasing players with international flexibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.33 Multibrand versus captive leasing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.35

CONTENT

I DOSSIER I

Remarketing and car leasing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.38 4 Trends that create a new dynamic

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New geography, new target group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.42 Car leasing in Turkey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.44 The next big thing for car leasing

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I MANAGEMENT I MANAGEMENT I Fleet Safety Corner Securing behavioural change in 7 steps

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Fleet Europe Awards for Fleet Managers . . . . . . . . . . . . . . . . . . . . P.49 Case Study with Sodexo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.50 Case Study with ADP Fleet Safety Corner

BUSINESS I Fleet Europe Awards 2015 International Fleet Industry Award looks for innovative industry approaches

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I BUSINESS I Fleet Europe Awards for Fleet Suppliers

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Interview: Werner Eichhorn, Škoda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.58

SCOPE I Technology & Innovation The car as ultimate mobile device

I SCOPE I The car as ultimate mobile device . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.60

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I SMART MOBILITY I The introduction of the Mobility Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . P.65

COLOPHON

Aline Verpoorten - Assistant averpoorten@nexuscommunication.be

Caroline Thonnon - CEO & Business Development cthonnon@nexuscommunication.be

Contributors: Jonathan Green, Eamonn Fitzgerald, Tim Harrup, Frank Jacobs, Frédéric Vanvlodorp

Steven Schoefs - Chief Editor - Fleet Europe sschoefs@nexuscommunication.be

Cover: ©Shutterstock// ©iStock// - Pictures: ©Shutterstock// ©ThinkStock//

Laetitia Fernandez - Content & Community Editor - Fleet Europe lfernandez@nexuscommunication.

David Baudeweyns - International Sales & Business Development dbaudeweyns@nexuscommunication.be Sigrid Nauwelaerts - International Key Account Manager snauwelaerts@nexuscommunication.be Romina De Gregorio - Internal Sales & Operations rdegregorio@nexuscommunication.be Céline Gilson - Assistant cgilson@nexuscommunication.be

Experts: Richard Knubben (Leaseurope), Michael Gergen (Dataforce) Layout: Hungry Minds - info@hungryminds.com

EDITOR

Thierry Degives, CEO & 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 # 77

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DOSSIER

Car Leasing in Europe I Fleet Market 2015

European True Fleets Market shows a remarkable first quarter Welcome to the Car Leasing Focus 2015! To set the scene of the 2015 car leasing situation in Europe, it is good to start with a picture of the Car Fleet Market in Europe. With the support of Dataforce, that is exactly what follows here.

B

efore starting the analysis of the first Quarter 2015, let’s take a quick look in the rear-view mirror. As you can see in the graph (Graph 1) below, 2014 was a very successful year for the True Fleet Channel (commercial registrations without manufacturers, dealerships and Rent-A-Cars) even outmatching the level of 2008 and 2011, the strongest years for True Fleets so far.

And their performance was really remarkable. Across all five markets, the volume was substantially higher than in the previous year and in four out of the five countries, the growth rates for True Fleets were higher than in the Private Market. The only exception was Spain, with a Private Market which performed even slightly better, thanks to the ongoing scrappage scheme.

True Fleet Market Europe by years The True Fleet Market realised a strong growth in 2014 thanks to the remarkable performance of Europe’s biggest car fleet markets.

Also in the first quarter of 2015 the true car fleet market in Europe’s Big 5 Countries continued to expand.

True Fleet Market Jnauary - March 2015

2,400,000 2,600,000 2,800,000 3,000,000 3,200,000 3,400,000

2008

2009

2010

2011

2012

2013

2014 * True Fleet Market Passenger Cars Europe: Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Italy, Latvia, Lithuania, Netherlands, Norway, Poland, Slovakia, Spain, Sweden, United Kingdom

Despite this challenging reference level, the True Fleet channel was able to rise significantly in the first quarter 2015 with an overall growth of 11.5 per cent. The result for Europe in total is closely linked to the Big Five (France, Germany, Italy, Spain and the United Kingdom) since they represent more than 70 per cent of all True Fleet registrations in Europe.

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+

+

+

+

+

9.7%

10.7%

23.7%

30.5%

7.5%

+

12.1%

But the successful start for the True Fleets has also been supported by a variety of further markets, like Denmark (+ 26.6 per cent), Poland (+ 26.0 per cent) and the Czech Republic (+ 19.6 per cent).

Let’s review in more detail some of the countries with an exceptional first quarter 2015: No 1 by absolute volume in True Fleets: the United Kingdom The Market in the United Kingdom is dominated by a tough battle between the “Big Two” Ford and Vauxhall.

Those two brands normally represent between 25 and 30 per cent of all True Fleet registrations. Since 2007 no other brand has been able to rank number one or two. Over the last nine quarters, Vauxhall was in the lead five times and Ford four times. In the first quarter of 2015, Vauxhall raised its registrations by an impressive 20.2 per cent compared to the first quarter 2014 and ranked #1, followed by Ford, Volkswagen, Nissan and Mercedes.

DOSSIER Car Leasing in Europe I Fleet Market 2015

A good portion of Vauxhall’s growth was achieved by the SUV Mokka entering the Top-10 models in 9 th position.

Within the SUV segment the Vauxhall Mokka was only outmatched by Nissan Qashqai ranking number four of all models.

Volkswagen Passat was able to boost its registrations by 44.6 per cent and is the most preferred company car again after several months of the Volkswagen Golf in first place. In March, the Passat even reached its highest volume since July 2011.

Those two models are only the most prominent representatives of a very successful vehicle segment overall: the SUV registrations grew by 38.0 per cent and took the lead for the very first time with a share of almost 25 per cent! This amazing performance is shared across many market players: within the Top-10 SUV models you can find nine different brands; only Nissan appears twice with Qashqai (1st) and Juke (3rd).

For the first three months in total, Volkswagen Golf is number two, followed by Škoda Octavia, which reached the highest number in the True Fleet Market in Germany ever in March. Mercedes C-Class climbed to fourth position with a remarkable growth rate of 89.5 per cent.

Vehicle segments share within True Fleets

Position five and six were occupied by Audi (A6 and A4 respectively). The Top-10 was completed by BMW 3 Series, BMW 5 Series, Volkswagen Touran, and Volkswagen Polo.

The SUV segment rules the new car fleet market in the United Kingdom.

Top 10 models in fleets in Germany Volkswagen Passat overtakes its little brother Golf in the first quarter of 2015.

26% Compact

22% 18% SUV

14% Middle Class

2015 Q4

2014 Q4

2014 Q3

2014 Q2

2014 Q1

2013 Q4

2013 Q3

2013 Q2

2013 Q1

10%

No 1 by volume growth: Germany With more than 178,000 new passenger car registrations in the first quarter 2015, not only outperformed the first three months of 2014 by more than 17,000 units (+ 10.7 per cent): in fact this has been the highest volume ever for a first quarter in Germany!

What are the reasons for this great performance? Twelve out of the Top-15 brands were able to report a volume growth. Market leader Volkswagen was going strong, with an increase of 21.4 per cent extending its market lead over Audi and BMW. With 27.2 per cent, Volkswagen reached the highest quarterly market share since 2011.

Mercedes in fourth position increased its True Fleet registrations by 22.8 per cent. Ford (5th position / + 10.7 per cent), Renault (8th / + 14.2 per cent) and Seat (9th / + 17.0 per cent) raised their volume by double-digit growth rates as well. Another outstanding performance was observed at Porsche, jumping to 14th position with + 55.2 per cent. Especially the SUV models are in vogue at the moment, with Macan in the lead followed by Cayenne.

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Rank Q1/2015

Rank Q1/2014

VW PASSAT

1

2

VW GOLF

2

1

ŠKODA OCTAVIA

3

6

MERCEDES C CLASS

4

10

AUDI A6, S6

5

7

AUDI A4, S4

6

4

BMW 3 SERIES

7

3

BMW 5 SERIES

8

5

VW TOURAN

9

8

VW POLO

10

9

True Fleets Germany

Small

FLEET EUROPE # 77

No. 1 by percentage growth: Spain Spain reported a formidable growth rate (+ 30.5 per cent) for the True Fleet Market in the first quarter of 2015. In March, this segment even scored the highest volume in absolute figures since July 2008.

The fact that the scrappage scheme is still pushing the Private Market (+ 31.0 per cent) is preventing the True Fleets from expanding their share of the market.

Similar to the UK, the SUV segment has achieved a remarkable result with a volume growth of 69.1 per cent and a share of 24.6 per cent. The most popular vehicle segment – the Compact Class – is already in sight.

Nissan’s Qashqai was the most successful SUV model in Q1 followed by a new entry, Citroën’s C4 Cactus and Mercedes GLA.

Although Europe is a patchwork of countries with different business preferences and specific focus areas with regard to fleet management, the European car fleet market as a whole is a nice example of unified growth.

The Spanish Car Fleet Market by segment When it comes to True Fleet registrations in Spain, every car segment is growing. This demonstrates that the recovery is built on strong foundations.

Growth Q1/2015Q1/2014

Share Q1/2015

MINI

+ 23.5 %

2.1 %

SMALL

+ 40.9 %

17.7 %

COMPACT CAR

+ 15.2 %

25.5 %

MIDDLE-CLASS

+ 17.0 %

15.4 %

True Fleets Spain

HIGHER-MIDDLE-CLASS

+ 1.9 %

2.6 %

OFFROAD SUV

+ 69.2 %

24.6 %

MINI-VAN

+ 19.1 %

8.5 %

OTHERS

+ 27.7 %

3.6 %

TOTAL

+ 30.5%

100.0%

Second best vehicle segment were the Small cars with an increase of 40.9 per cent. Renault Clio was shining with + 86.2 per cent and extending its market share within the Small cars to almost 21 per cent. Seat Ibiza gained two positions in the model ranking and a plus of almost 50 per cent followed by Opel Corsa, Volkswagen Polo, Peugeot 208 and Fiat 500L. True Fleet Market Outlook Obviously the fleet business has established itself even better and became even more important for the manufacturers as it now represents 24.1 per cent of all new passenger car registrations across the EU-5 markets in the first quarter 2015 (compared to 23.6 per cent in the previous year).

The main question is whether the True Fleet Markets will be able to sustain this promising trend in 2015. Or will the Private sector regain volume and market share instead? Based on our forecast for the seven biggest European markets, we expect the volume for the True Fleets segment to grow moderately in 2015.

But taking into account a growing Total Market, the result will be a slightly lower share for the True Fleet Channel than in 2014, its record year. The Private Market will recover and should be able to get back to its level of 2013, partly due to pent-up demand.

In Italy and Spain, registrations of True Fleet will increase compared to last year. This holds true as well for the biggest fleet market in Europe, the United Kingdom, despite the already really positive results in 2014 – the best year since 2007 in terms of sales to company fleets.

In Germany, 2014 was a very successful year for the fleet busines too. The very high level of registrations will most probably not be exceeded this year.

With economic tailwinds in Europe gaining momentum and brightening investment conditions, the overall outlook is positive. â–

Michael Gergen Dataforce

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DOSSIER Car Leasing in Europe I Evolution

“We will need to move from cars to mobility” Richard Knubben, Senior Adviser - Automotive Affairs at Leaseurope, tells Fleet Europe about the opportunities and threats facing the European lease industry. He confirms the shift from cars to mobility is taking place and explains how it’s beneficial to the industry. He insists on the role SMEs have to play in the evolution of the leasing business in Europe.

“

In 20 years, we won’t be driving lease cars as we do now”, says Richard Knubben. The Senior Adviser in Automotive Affairs at Leaseurope knows the current business models are bound to evolve as leasing companies are increasingly becoming mobility service providers rather than providers of an automotive asset.

Why is car leasing still important to Europe?

Richard Knubben: Let’s start with the environment.

Leaseurope collects CO2 data from Europe’s major lease providers, comparing them to the CO2 output of all vehicles sold in Europe. We see a significant difference between the lease fleet and the total fleet. The lease fleet is greener - and is greening faster - than the overall fleet. In fact, the positive impact of lease fleets is even greater than the figures suggest, as they’re also included in the ‘total fleet’ figures. But in any case, this proves beyond argument that governments aiming for greener fleets should treat the vehicle lease industry as a partner, not as the enemy: we’re the ones who are always introducing the cleanest cars into the market first. This is of course also related to the second-hand market: in the Netherlands, for example, over 20% of all cars coming up for resale are ex lease vehicles - which generally are very green and very well maintained.

Another angle, increasingly important, is the advisory and service aspect of leasing. For example in helping you choose the right vehicle for your requirements. It used to be that your lease vehicle was a diesel, standard. But that’s not always the best and cheapest option, especially considering the changing tax environment. Lease companies have the expertise that many companies, especially SMEs, may not necessarily have.

transport is not a big thing yet, this will change in the future. Every major lease company has a mobility project, and I can’t imagine that in 20 years’ time we’ll be driving lease vehicles in the same way as we’re doing now.

Why SMEs matter At the global European level (incl. 12 countries: Belgium, Switzerland, the Czech Republic, Germany, Spain, France, Italy, Luxembourg, the Netherlands, Poland, Portugal and the UK), the Corporate Vehicle Observatory Barometer 2014 confirms the trend identified by Richard Knubben from Leaseurope: “SMEs still constitute the greatest potential for growth [for the leasing industry].”

Indeed, in nearly 50% of the cases, SMEs still opt for outright purchase as their preferred method of acquisition. On the other hand, most of Europe’s very big companies (1000+ employees) have opted for operating lease, whereas within big companies (100-999 employees) an equal percentage have chosen operating lease over self purchase – so there is still some good potential there.

Main Methods of Financing in Europe Self Purchase 1-10 employees

49%

11-99

44%

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Fin. Lease

Op. Lease

13% 29%

8% 30%

9%

18%

3% 100-999

The one-stop-shop aspect of leasing - pay one fee, get a whole range of services - is also important and attractive, as is the multimodal transport solution: get the vehicle you need, possibly in combination with other transport modes such as rail, when you need it. Although multimodal

Car Credit

36%

25%

36%

2% 1000+

28%

19%

51% Source: CVO Barometer 2014

European leasing market on a steady growth path In its preliminary survey of the European leasing market for 2014, Leaseurope found that new leasing business (incl. the vehicle, equipment and real estate segments) in Europe expanded by 8.4% that same year, reaching its highest annual rate of growth in volume since 2007. Growth was particularly important for vehicles with new leasing volumes in this segment rising by 12.4% on 2013.

30%

Passenger cars Commercial vehicles

In 2013 new leasing volumes for passenger cars had kept growing as well, increasing by 5.0% and, according to Leaseurope estimates, European leasing and rental companies had purchased some 6.8 million passenger cars in 2013. Similarly to passenger cars, the commercial vehicle sector also performed well back then, with 5.2% growth.

Regional performance - Automotive sector New business - annual % change (2013/2012)

Cars Leaseeurope (2013)

25% 20%

New business

15%

• 6.8 million units • 129 billion • 36.8% of new car sales

10% Benelux AT & CH

5% 0%

Fleet • 16 million units

-5% Nordic & Baltic countries

-10% -15%

Germany

UK

France

Italy

Mediterranean

CEE

Growth rates are calculated based on a homogenous sample of members reporting & are adjusted for exchange rate fluctuations Source: Leaseurope 2013 Annual Survey

So, another pioneering role for the lease industry?

R. Knubben: Yes, absolutely. Lease companies continue to innovate and develop new service solutions.

Based on Leaseurope’s data and experience, is leasing winning or losing ground in Europe?

R. Knubben: In Western Europe, the standard B2B segment is relatively stable.

Having said that, there is still considerable potential in growing the SME market.

That put a damper on lease growth. Like several other Eastern European countries, Turkey has considerable potential for growth. Whether this growth will actually materialise is dependent on continued market liberalisation and a regulatory framework conducive to economic activity.

We see multibrand lease companies increasingly focusing on SMEs, while their captive competitors are looking towards bigger, multinational companies. Is that your experience as well?

R. Knubben: I can only confirm that SMEs still constitute the greatest potential for growth.

What I find interesting in this context is BMW investing in Alphabet, a clever move because not everybody in need of a car lease wants to, or is in a position to drive a BMW. So if you can have clients choose Renault for instance, why not?

That’s not to say I see other captives buying multibrands. ■

Lease companies continue to innovate and develop new service solutions.

The market appears to be less saturated in Central and Eastern Europe, especially in Poland where there is better economic growth, an older car fleet that needs replacing and a large population.

What about Turkey? As mentioned at our recent Global Fleet Summit in Istanbul, the country has about 2 million commercial vehicles, of which roughly only 10% are leased. That points to a great potential...

R. Knubben: Of course, the Turkish authorities have limited the leasing options for LCVs, because they thought there were too many old commercial vans on the road.

Steven Schoefs & Laetitia Fernandez

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DOSSIER Car Leasing in Europe I Across the globe

Executives upbeat on global leasing market ARI CANADA

LEASEPLAN INTERNATIONAL

Rick Tousaw Sr Vice President and General Manager

Ricardo Fonzaghi SVP International Sales When asked about car leasing and operational leasing in the USA, Ricardo Fonzaghi replies with figures: 11,876,033 vehicles in the national fleet, of which 9,757,764 are company owned, and 2,118,269 leased or outsourced.

“Although the cost of capital has witnessed historic lows since 2009, statistics show that more companies are buying instead of leasing vehicles. Perhaps this is because of the remarketing environment that has been in historic highs since 2011”, he says. And the future? “Interest rates should start increasing and we are seeing now that remarketing values are slowly starting to normalise”, he says. “This should shift some owned vehicles towards to leasing. It is also expected that the convergence of the accounting rules will diversify the leasing methodology from open end to closed end.”

According to the Canadian Finance and Leasing Association, leasing accounts for 39 percent of total Canadian equipment and vehicle asset financing, representing a value of C$13.2 billion. “The leasing business in Canada looks to be stable with moderate growth that

is aligned with that of the economy in general”, says Tousaw, who keeps a careful watch on interest rates and oil prices. “One notable factor is the price of oil; more specifically the decline in the price of crude and its impact on Canada’s resource based economy.” The 2009 recession led to a decrease in the number and value of lease agreements, but the fleet market recovered by 2013 and future growth is predicted to be steadier.

ARIZA DE MEXICO Victor Campuzano Director Sales & Marketing “Leasing in Mexico has increased in popularity since 2013, due to tax reforms that have made it more attractive than buying”, according to Victor Campuzano. Although leasing is growing at a rate of 10 to 15 percent per year, only 17 percent of the total sales of vehicles to businesses were arranged through leasing. “There isn’t any official organisation that can offer information regarding the leasing industry, but we estimate the leasing market be about 500,000 vehicles”, says Campuzano. Vehicle sales in Mexico are up 20% over the previous year, he says, and economic stability has ensured that interest rates are lower and loans are more available than last year.

Bottom line: “Leasing will continue to grow.”

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LOCALIZA FLEET SOLUTIONS Joao Andrade - CEO “The Brazilian car rental association estimates that roughly 440,000 cars are rented or leased in Brazil. This represents around 10 percent of the Brazilian corporate fleet”, says Joao Andrade. He sees good growth opportunities for established market players who possess the necessary local expertise, but he notes that the vast size of the country, the lack of quality standards among service providers and poor road conditions make Brazil a very challenging market. Andrade adds that the country’s clouding economic picture, volatile interest rates and predicted low growth “pose significant challenges and that all this adds an air of uncertainty to new business development“.

Car leasing is more than just a best practice. Or is it? Welcome to our global car leasing tour. We asked leasing professionals in eight developed and emerging markets to tell us how they view the present and what they expect of the future. Our vox pop ranged from Australia to the USA, from Brazil to China, with Canada, Russia, South Africa and Mexico included. The conclusions are as diverse as the cultures and the fleet maturity of the eight countries.

FIFTH WHEEL MANAGEMENT Sergey Zykov General Manager “When you start to talk about leasing in Russia, you will usually hear that leasing is popular and used by many legal entities as a fleet funding method”, says Sergey Zykov. “But if you talk to leading European fleet leasing suppliers, you will learn from them that the market is just circa 40,000 cars, which is slightly over one percent penetration of 3.5 million fleet cars.”

This is because Russia’s legislation and accounting do not recognize the differences between financial and operational leases. “The operational lease market, with a growth of at least 15 percent over the last five years, is the fastest growing funding method in Russia”, says Zykov, who predicts further growth as Moscow has included leasing it its special programme to support the automotive industry.”

ALD FORTUNE AUTO LEASING & RENTING Frédéric Hamain General Manager Leasing in China is “expanding but the country remains a non-mature market”, says Frédéric Hamain, because “many companies simply do not see benefit of leasing”. He estimates that some 30,000 rental and leasing companies are active in the market, and that the size of the national rented and leased fleet is about 300,000 vehicles, while China’s entire corporate fleet would be around 30 million, giving a leasing penetration rate of just one percent. However, the size of the market and the reforms that the Beijing government plans to implement suggest a promising, if challenging, future “considering restrictions in car registration, quick changes in taxes and regulations for pollution”, says Hamain.

EQSTRA FLEET MANAGEMENT Murray Price Managing Director “Leasing in South Africa is mainly a business-to-business transaction”, says Murray Price, who describes the corporate car park in South Africa as consisting of more than 1.2 million vehicles. Leasing makes up 10 percent of the vehicle corporate car park and the size of the overall car park in South Africa is more than 10.2 million vehicles. “We have a positive outlook for the overall fleet management industry”, says Price, but he adds that “to be just a leasing provider is not a sustainable option within South Africa due to the high cost of capital.” As a result, South African companies are expanding deeper into the continent and Price sees real growth in those nations that as yet lack a competitive leasing service provider.

SG FLEET Keith Cormican - Group Executive Sales & Commercial Excellence “As of December 2014, the Australian Fleet Lessors Association showed a total of 544,085 vehicles under fleet management and leasing, of which 332,917 were leased”, says Keith Cormican. Leases were predominately operating leases, at 219,888 vehicles. “Full service leasing, or more commonly known in Australia as a ‘fully maintained operating lease’, is quite an accepted form of fleet funding and management in the Australian fleet market”, he adds. According to Cormican, the Australian fleet market operates with various types of leasing, including operating leases and novated leases, which are mainly finance leases. He sees continued growth: “Companies and governments recognize the value of full service lease outsourcing.”

FLEET EUROPE # 77

P.15

DOSSIER Car Leasing in Europe I Who’s who

Who’s who in the year 2015 Welcome to this overview of the results of Fleet Europe’s annual Car Leasing and Fleet Management survey! On the following pages, we will be exploring the ongoing developments, current strategies, and future projections of the fleet and lease industry’s major players on the European continent.

We couldn’t have done it without the active involvement of the specialists at all the car leasing companies and fleet management specialists mentioned below. They have all been most generous with their time and knowledge. Thank you!

The companies are colour-coded, in order for you to better distinguish the Multibrand lease companies from the Captive ones, and from the Fleet Management companies.

M

ALD International

CEO: Mike Masterson Total number of staff: 4,928 Shareholders: Société Générale Group In Activity since: 1950

Company strategy

“ALD Automotive has operations in 40 countries, displaying the largest direct coverage of any global leasing company. This presence in many markets is a very positive factor for international customers. Our global reach and in-depth knowledge of local markets has allowed us to develop global integration and coordination as well as local flexibility”.

Organisation and network

ALD is continuing its growth strategy, based on its existing network: increasing penetration within the markets where it is present, with a focus on streamlining processes, improving quality of service

P.18

FLEET EUROPE # 77

Who do you want to work with ? Discover the key elements of the strategy and developments of the main international car lease companies in Europe.

and building synergies from its extensive coverage and wide-ranging customer relationships. ALD also aims to further enhance white-label partnerships with OEMs and banking networks.

Products and services

ALD has a dedicated international team nurturing the key relationships and designated interlocutors within each of its 40 affiliates. Their responsibility is to facilitate information flows and develop business with international fleet clients.

An international reporting tool gathers key data for fleets managed by ALD worldwide. As from 2014, data from ALD’s North American partner Wheels has been integrated. In most countries, ALD also has customer portals for drivers and fleet managers.

Evolution of lease business

The leasing business will continue to grow, ALD projects, mainly thanks to countries where the leasing solution is not yet popular in spite of their large domestic automotive markets, and thanks to the penetration of leasing among

SMEs in more mature countries. From a global standpoint, ALD Automotive believes that some cash-rich customers may look again into fleet management, because it allows using alternative funding schemes while still benefitting from the outsourcing of non-core activities.

Specifically in volatile economies, such as Russia or Ukraine, the recent rise in interest rates may also trigger some interest for fleet management solutions, the company believes.

FAST FACTS • Share of international clients: 36%.

• Subsidiaries recently opened “Two subsidiaries opened in Bulgaria and Kazakhstan in 2014. Chile, which opened in March 2015, is the latest.”

• Average CO2 emission 130 g/km.

• Future evolution - Leasing prices: possible upward trend.

- Residual values: overall stable, potentially decreasing.

- Demand for Global Lease Offer: increasing.

M

Alphabet International

CEO: Norbert van den Eijnden, Ed Frederiks Total number of staff: 2,500 Shareholders: BMW Group In Activity since: 1997

Company strategy

“For international clients with more than 1,000 vehicles, we target a harmonised, efficient cross-border fleet solution. To achieve this, our team of experts develops a comprehensive, company-specific programme with local Alphabet offices. As the central point of contact, an International Key Account Manager strengthens our personal approach and ensures one person knows and manages customer needs”.

Products and services

Alphabet aims to provide products and

M

Athlon Car Lease International

CEO: Frans Janssen Total number of staff: 3,900 Shareholders: owned by De Lage Landen/Rabobank In Activity since: 1916

Company strategy

“Athlon thinks globally and acts locally, offering harmonised products and services, reporting and a single point of contact for all our international customers. In these relationships, we acknowledge the global needs of central decision making units and the requirements of local execution”.

Organisation and network

Athlon’s objective is to grow its portfolio by approx. 5% and further develop its

M

Arval

CEO: Philippe Bismut Total number of staff: more than 4,000 Shareholders: BNP Paribas In Activity since: 1989

Company strategy

“Arval will continue to support our International Business Office, specifically structured to handle International Accounts. Its strategy is to continue to acquire, promote and coordinate multi-country business for global fleet management, acting as the central point of contact within Arval for Global

services that fulfill customer’s needs. One example is the Electrification Potential Analysis (EPA): developed as part of Alphabet’s consulting approach, it identifies how businesses can optimally integrate electric vehicles (EVs) into existing fleets.

Alphabet is also developing a new app for comprehensive mobility management. The concept’s goal is to seamlessly network various transport options, from cars, to bus, to train, to airplane. Already available in the Netherlands, and launching soon in Belgium, the European rollout of the innovative Mobility Budget is in the works.

Evolution of lease business Alphabet estimates that full service leasing will remain stable or grow slightly in its core markets. The overall expectation is that the operational leasing market in Europe will expand by about 2-3% per year.

More and more companies want to globalise their fleet management arrangement,

mobility proposition.

Products and services

Athlon Car Lease offers an international reporting tool with the most common data regarding fleet/mobility. Additionally, the company has its mobility consultants who provide in-depth reporting and analytics based on tailor-made requirements. In Europe, Athlon Car Lease offers personalised data regarding driver behaviour directly to the driver and if required to the fleet owner. Based on this data, Athlon provides recommendations which lead to improved road-safety and reduced emission/costs. The company has also built customised propositions for global fleet managers based on the specifics of their background and domestic market (e.g.

US-based services in Europe).

Evolution of lease business

Athlon Car Lease foresees moderate growth and a shift back to re-bundling services. Technology really takes off,

Procurement teams”.

Products and services

Arval can offer its International Clients and Prospects the benefit of its International Account Strategies, Cost Optimisation programmes through its Expert advice, Consulting Missions, International Reporting and Coordination, Consistency of approach and Service Delivery, Full Outsourcing solutions, CSR advice, and Partners within the Element-Arval Global Alliance to ensure greater global coverage. Launched in 2008 and awarded in 2010, Arval Analytics is a powerful web-based decision making application for Arval’s international clients, delivering 24/7 online information. It is designed to aggregate multi-entity and multi-country data, assisting Arval’s customers’ decision

Alphabet claims, but until now, countryspecific legislation and tax laws have obstructed these efforts. The company foresees that harmonisation of European tax rules will have a positive impact on industry growth, driving an international perspective on fleet decision-making and promoting centralisation and streamlining.

FAST FACTS • Share of international clients “Annual customer growth is mirrored by an increase in the number of international framework agreements we sign. In 2014, this increased by 9%.”

• Average CO2 emission 124 g/km.

• Future evolution - Leasing prices: slightly increasing due to interest rate and inflation.

- Residual values: no significant changes.

- Demand for Global Lease Offer: anticipation for growing demand.

it thinks, with online applications and telematics. Athlon believes that the market will shift from a fleet to a mobility management focus. With reference to fleet, it foresees a stronger focus on a full outsourcing approach.

FAST FACTS • Share of international clients: Approximately 25%.

• Subsidiaries opening in the near future Switzerland has been opened recently and Athlon is looking into further expansion in the European region.

• Average CO2 emission Because emissions vary per region and segment, Athlon does not use average global CO2 emission figures.

• Future evolution - Leasing prices: more transparency.

- Residual values: depends on the type of vehicle and region.

- Demand for Global Lease Offer: increasing.

makers at any time in managing, controlling and optimising their fleet TCO.

Evolution of lease business

Full service leasing will continue to be in good shape in 2015, Arval thinks, with its growth forecast to reach 6% in 2015, and its goal: to exceed the 800,000 mark for vehicles leased by the end of 2016.

FAST FACTS • Share of international clients: On average 25%.

• Subsidiaries opening in the near future In June 2014, Arval closed a deal with Sanghai Ba-shi Car Rental Service Co. Ltd., the biggest full-service leasing company in Shanghai, to set up a joint venture that is planned to emerge in the second half of 2015.

FLEET EUROPE # 77

P.19

DOSSIER Car Leasing in Europe I Who’s who

M

Business Lease Group

CEO: Harm Nijlunsing Total number of staff: 325 Shareholders: Autobinck Holding N.V. In Activity since: 1989

Company strategy “Business Lease continuously focuses on providing its customers the best care possible. Our TCO approach and sustainable solutions form the base in delivering our customers added value and keeping them satisfied on a long term.”

Organisation and network Business Lease Group cannot disclose its plans for the near future, but it will say that it has a special interest in the Benelux countries and Central and Eastern Europe region.

M

GE Capital International

CEO: Jeff Immelt Total number of staff: 300,000 (across all GE businesses) In Activity since: 1878 (offering fleet services since over 40 years)

The Business Lease Group slogan is: ‘same cars, better care’. Business Lease aims to distinguish itself by providing partnership and attention. Cars are the same everywhere, so the focus has to be on the customers and their vehicle fleet. The company assists its customers by providing consultancy focused on reducing TCO and CO2. Apart from its online Blue Care Monitor, which enables our customers to monitor driver behaviour, Business Lease has also set up a whole series of supportive activities to minimise the number of accidents, fines, CO2 emissions, excess mileage, replacement vehicles and fuel consumption.

Evolution of lease business

During the past few years Business Lease Group has seen an increasing number of independent leasing companies being sold or simply retreating from the market. Due to volatile economical circumstances or companies forced to return to their core

solution. Expanding through partnerships has helped it to build capability rapidly and allows its customers to benefit from the deep local knowledge of local providers.

Products and services

competences, the company believes consolidation will continue for the coming years. It believes that in the coming years, more and more companies within its markets will embrace fleet management services as a first step towards full service leasing.

FAST FACTS • Share of international clients: “The Business Lease Group customer portfolio currently holds some 130 internationally managed contracts.”

• Subsidiaries opened recently “Besides the acquisition of Masterlease in the Netherlands in 2009, we completed the merger of KBC Autolease in Poland in 2012 and the acquisition of FMS Romania in 2014.”

• Average CO2 emission 133 g/km.

• Future evolution -L easing prices: stable.

-R esidual values: stable/slight increase.

-D emand for Global Lease Offer: stable/ slight increase.

outsourcing fleet activities through full service leasing, GE Capital International Fleet Services estimates. It believes full service leasing will continue to evolve and grow. For Fleet Managers, TCO will continue to be a core focus – and GE will continue to focus on offering advanced consultancy services to help Fleet Managers optimise this area of their business.

Organisation and network

As an example of its tailored approach, GE Capital International Fleet Services is now offering globally coordinated consultancy studies to its global clients, where needed. And it already offers iManage, which consolidates data across countries for its Pan-European customers. This comprehensive reporting and analysis tool helps customers monitor and analyse their fleet performance along various dimensions on a real-time basis.

GE Capital International Fleet Services focuses on evolving its coverage to support its customers’ needs for a multi-border

Companies are increasingly focusing on core operations, and thus increasingly

FAST FACTS • Subsidiaries recently opened In addition to existing partnerships in Central and Eastern Europe, GE Capital International Fleet Services has launched partnerships in Denmark, Turkey and Norway in the last 12 months.

• Future evolution Demand for Global Lease Offer: Expected to grow, but at a moderate pace.

Products and services

Evolution of lease business

Company strategy “GE Capital is focused on supporting its international clients – offering a range of services and solutions tailored to international Fleet Management.”

M

Sixt Leasing

CEO: Dr. Rudolf Rizzolli Shareholders: 41.9% of the shares are owned by Sixt SE, the remaining 58.1% are freely floated.

In Activity since: 1967

Company strategy “Our strategy is targeted at achieving further growth and improving profitability.

Our strategy comprises among others: drive profitable growth of Online Retail, establish European footprint of Fleet Management, continue growth of Fleet Leasing and Fleet Management, expand technological capabilities.”

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Products and services

FLEET EUROPE # 77

Evolution of lease business

Sixt Leasing expands its technological capabilities and IT solutions to meet its clients’ demands. Which is why Sixt established a professional car remarketing platform for its fleet management clients.

Sixt’s Multibid-Configurator allows the free configuration and tendering of company cars amongst different leasing companies. In cooperation with a globally operating customer, Sixt Leasing kicked off a pilot project for global reporting in 2014. It gives the customer an online-based tool that brings together the different local data of separate fleets in different countries. This allows flexible management on a global scale. The tool’s functions can be extended to meet individual customer requirements.

Global Reporting is scheduled for roll-out on the market in 2015.

Sixt Leasing thinks that the Online Retail business field offers good opportunities for continuing the successful development of past years in 2015 and thereafter. Both private as well as commercial customers are showing great demand for attractive leasing and financing solutions, the company says.

FAST FACTS • Subsidiaries recently opened “In April, Sixt Leasing announced the foundation of a joint venture with Swisscom AG for fleet management in Switzerland.”

• Average CO2 emission around 125 g/km.

• Future evolution - Leasing prices: stable.

- Residual values: stable.

- Demand for Global Lease Offer: increasing demand.

M

Volkswagen Financial Services

CEO: Frank Witter Total number of staff: 11,305 (5,928 in Germany, 2,803 in the rest of Europe) Shareholders: Volkswagen AG (100%) In Activity since: 1949 (with Volkswagen Bank)

Company strategy “We’re currently harmonising products and processes in the direction of global coverage, supported by fleet systems, live configurator and reporting tools. Another focus is the multi capability and Key Account Pricing.”

Organisation and network Over the past 12 months, Volkswagen Financial Services have opened new subsidiaries in Malaysia and Chile.

M

LeasePlan International

CEO: Vahid Daemi Total number of staff: 6,838 Shareholders: LeasePlan shares are owned by Global Mobility Holding B.V., a 50/50 partnership of Volkswagen AG and Fleet Investments B.V. In Activity since: 1963

Company strategy

“Our key and overriding strategic focus is on delivering the best and most relevant service value to our clients.

Together with the client we define the specific objectives and results that we deliver together through a combination of global fleet experience and local on-the-ground support, using the most relevant technologies available.”

Products and services

As global fleet operators may be at different stages on the path to efficiency,

C

Banque PSA Finance

CEO: Rémy Bayle Total number of staff: 3,000 Shareholders: PSA Peugeot Citroën In Activity since: 1919

Organisation and network

Banque PSA Finance has a dedicated office in charge of international tenders and Clients. The office operates in synergy with the PSA Peugeot Citroën sales

Products and services Volkswagen Financial Services has gone live with its International FleetCARS, generating reports in more than 40 countries.

There is also a linked local reporting in each country in place, which is more detailed and enables the fleet manager to follow up their local fleet.

Evolution of lease business Volkswagen Financial Services sees a stable business with an ongoing recovery in southern Europe and growth in Asia and Latin America. Its full service leasing has growth potential in mature European markets, based on its solid market position and good customer relations.

Other expansion aims are the insurance business, the nearly new cars segment and worldwide fleet management. The company is seeing the activities of independent fleet managers increase slightly, while the

LeasePlan aims to provide support tailored to wherever they are on this journey, delivering added value in terms of cost control and reduction, process and policy optimisation and corporate responsibility.

LeasePlan is also looking to continue focusing on new mobility opportunities, improving driver experience and rolling out new services such as Telematics. From an international business perspective, LeasePlan has dedicated international teams that manage the needs of pan-European and global clients.LeasePlan International provides these international clients with a consolidated International FleetReporting tool providing them with all key insights into their international fleet, including fleet composition, TCO development, OEM overviews, CO2 and risk reporting.

Evolution of lease business

Sustainability, new technology and increased urbanisation and regulation will shape the vehicle leasing industry in the years to come, LeasePlan projects. The company foresees a gradual shift from

departments in order to synchronise and share with the countries concerned the answer for its international key clients.

Products and services INTERPARC is the name of Banque PSA Finance’s new version of its fleet management software solution, which it currently offers in Spain, France and Belgium, and by the end of the year in Germany as well. This tool allows customer to effectively monitor and manage all aspects concerning their fleet, via a system of alerts.

fleet management activities within lease companies remain stable.

FAST FACTS • Share of international clients 34 International Master Agreements.

• Subsidiaries opening in the near future “In China, Brazil, Mexico and other countries where we’ve just started our leasing activities, we will grow faster than in other, earlier markets. In Europe, we’ll focus on Russia and Turkey, countries where we have to improve our offer to full service leasing.”

• Average CO2 emission “CO2 emissions for new contracts at major customers have been reduced by 12% over the last four years.”

• Future evolution - Leasing prices: hard competition.

- Demand for Global Lease Offer and Approach: increasing.

vehicle-based to driver-based services, and an increasing demand for new mobility services, beyond the car. LeasePlan thinks that increased telematics will generate huge amounts of fleet data, and valuable insights and possibilities, while fleet markets in the BRICS countries will continue to expand. According to LeasePlan, global markets will consolidate and their methods of operation will start to converge.

FAST FACTS • Share of international clients just below 30%.

• Subsidiaries recently opened Last February, LeasePlan acquired the remaining 49% in the holding company of LeasePlan Turkey. It now has full ownership of its subsidiary.

• Future evolution - Leasing prices: Minor fluctuations locally, but overall fairly stable.

- Residual values: second hand market remains strong.

- Demand for Global Lease Offer: consistent increase.

Evolution of lease business Connected cars will be the next big thing in the lease industry, Banque PSA Finance believes. It is confident that it will reap the benefits of the efforts of its parent company PSA Peugeot Citroën, which is working hard in this particular field to produce new services and solutions.

FAST FACTS • Subsidiaries opening in the near future No. • Average CO2 emissions 110 g/km.

FLEET EUROPE # 77

P.21

DOSSIER Car Leasing in Europe I Who’s who

C

Daimler Fleet Management

CEO: Gero Goetzenberger Total number of staff: 220 Shareholders: The parent company Daimler Financial Services is a 100% subsidiary of Daimler AG In Activity since: 1960

Company strategy “As part of Daimler we are able to deliver the superior services and products of the Daimler Group to customers worldwide. This is a major competitive advantage we have when dealing with international fleet customers who look for worldwide high-quality fleet solutions.”

C

FCA Bank

CEO: Giacomo Carelli Total number of staff: 1,920 Shareholders: FCA Bank is a joint venture between FCA and CACF (Crédit Agricole Consumer Finance) In Activity since: 2007

Company strategy

“FCA Bank doesn’t have a specific process to handle international fleet clients.”

Daimler Fleet Management is dedicating 2015 to sustainable growth, deepening its business relations with existing customers, acquiring new customers and rolling out in new markets.

Products and services Daimler Fleet Management not only creates appropriate financing and leasing solutions, but also takes care of all fleet-related services such as repairs, tyre replacements, fuel card management or cross-border fleets.

Organisation and network Except in France and Romania, where

FLEET EUROPE # 77

Daimler Fleet Management therefore expects a growing market of Fleet Management services.

product will stay attractive, but the focus

FCA Bank creates a new functional coordination at HQ level and will try to develop the car lease business line, both reinforcing the current direct operations and through an existing external cooperation agreement with ALD.

will shift to service products.

Evolution of lease business This is very much dependent on the coming changes to the international accounting rules, FCA Bank believes.

It thinks that the Full Operational lease

Total number of staff: 2,876 Shareholders: Renault (100%) In Activity since: 1974

“We aim to consolidate and to reinforce the cooperative relations between RCI Banque and the Alliance carmakers’ teams in order to provide our common customers with the best possible offer fully compliant with the needs of corporate clients.”

The company expects stable growth in the car leasing business. Fleet Management Services will get more and more important for corporate customers regarding the requirements of fleet clients.

Organisation and network

In other countries, RCI Banque is in a position to respond positively to international demands for small fleets, country by country.

Company strategy

Evolution of lease business

Because major fleet customers are often interested in operating mixed-brand fleets and issue Europe-wide calls for tenders, Daimler Fleet Management is expanding its portfolio by offering services for the complete fleet of all European customers including non-group

CEO: Gianluca De Ficchy

RCI Banque

brand vehicles, aiming to maximize customer satisfaction.

FAST FACTS • Subsidiaries opened recently “In 2014 we rolled out our full service leasing offer in Spain and fleet management in Austria. In France, we rolled out fleet management in April 2015. In the next two years we plan to have a presence in all relevant European markets.”

RCI Banque has a dedicated organisation for dealing with key account customers, the company’s current strategy is mostly based on SMEs.

C

P.22

Organisation and network

Products and services The organisation of RCI Banque has been designed to match its corporate customers’ needs.

In 2013, a Business Unit Fleet and Services, entirely dedicated to corporate activities, has been created.

Evolution of lease business The company foresees a further rollout of the full service leasing model, which it currently already offers across 15 markets,

In any case, its expectation is that the weight of the fleet business will increase in the coming years, and that Fleet Management services will be very important and key for its business.

FAST FACTS • Subsidiaries opening in the near future “As for its rental business line, FCA Bank is not going to open new subsidies.”

mostly in Europe. RCI Banque has especially high hopes for Brazilian market, in which it sees great potential.

Fleet management will grow in tandem with connected services, a subject on which the company is working closely with the Alliance carmakers.

FAST FACTS • Share of international clients around 15%.

• Subsidiaries opening in the near future “We are currently studying the opportunity of adding new countries to our scope.”

• Average CO2 emission 114.8 g/km.

• Future evolution No major changes with regard to leasing prices, residual values, and Global Fleet Offer demands.

F

ARI

CEO: Chris Conroy Total number of staff: 2,878 (306 in Europe) Shareholders: stock is privately held In Activity since: 1948

Company strategy “ARI is focused on delivering unbundled, transparent solutions that are driven by innovative technology. We believe this concept will be quickly embraced because it gives companies the ability to have more control and a better understanding of their operations.”

Organisation and network ARI is committed to serving the needs

F

Fleet Logistics

CEO: Rainer Laber Total number of staff: > 400 Shareholders: 100% owned by TÜV SÜD In Activity since: 1996

Company strategy “Fleet Logistics is uniquely positioned in the market, as it combines strategic insight, operational know-how and stateof-the-art reporting. The company is set up in a way which ensures that each discipline benefits from the expertise acquired in the other two.”

Organisation and network The main purpose of Fleet Logistic’s present organisation and expanding network is to serve its clients with the highest level of expertise and commitment. The company’s solid IT backbone and proven processes are essential to continue its

of its clients regardless of whether they require fleet solutions on a global scale or options tailored to meet specific in-country needs. All of ARI’s businesses execute and leverage strategies and synergies globally, but meet and exceed regional needs locally with knowledgeable in-country personnel.

Products and services ARI offers ARI insights®, an awardwinning, innovative global reporting solution with an intuitive, user-friendly interface, accessible through a secure connection by fleet personnel in any country.

In so doing, the interface allows companies to capture fleet costs and info – including on maintenance, licensing, compliance and safety – regardless of where the vehicles are located.

worldwide expansion, as is the commitment to offer innovative value-adding reporting and consultancy.

Products and services

Fleet Logistics believes that global reporting and dashboarding is key to design, setup and control effective and cost-optimised fleets. Raw data is fed from supplier and internal databases into one single platform.

Automatic checks and data mappings are completed with manual verification by a team of fleet experts. Information is available online to clients, including graphs, tables and dashboards. If requested, consultants review these and a client roadmap for further optimisation on local, regional or global level.

Evolution of lease business

Fleet Logistics believes there will be continued strong increase of interest in fleet consulting, a trend that will accelerate over the next few years, as fleet decision makers have an even more strategic role in the company, balancing the HR,

Evolution of lease business ARI is predicting that the considerable reduction in the cost of financing will lead many multinationals to begin considering a switch, from leasing to selffunding with a fleet management solution.

As companies start to explore the advantages of unbundling, transparency will increase, as will control over operations.

And ultimately, the TCO will diminish.

FAST FACTS • Subsidiaries opening in the near future “ARI is focusing heavily on its existing operations in the UK and continental Europe.”

• Future evolution - Car Leasing prices: will go up.

- Residual values: remain flat.

- Demand for Global Lease Offer: grow.

Procurement and Finance departments.

FAST FACTS • Share of international clients Fleet Logistics currently has agreements with close to 100 international clients.

• Subsidiaries opening in the near future “We have recently opened offices in Brazil, Turkey, South Africa and Singapore, driven each time by numerous client requests. We’re currently opening an office in Israel and are receiving a high number of requests from the USA.” • Future evolution - Car Leasing prices: increasing discrepancies between countries and suppliers.

- Residual values: more clever strategies will be required to link remarketing with demand and pricing to optimise residuals in the midterm.

- Demand for Global Lease Offer: strongly increasing interest to create global transparency.

FLEET EUROPE # 77

P.23

Company car in the morning.

Team bus in the evening.

The new Touran. With innovative assistance systems.

Your business is a tough job. Enjoy it.

Anyone who is busy with work and family 24 hours a day appreciates every bit of support. The new Touran offers exactly that: its optional assistance systems like Side Assist or Front Assist help you keep an overview during every journey. So you can reach your destination without any stress.

Fuel consumption of the Touran in l/100km: combined 5.6 – 4.4, CO2 emissions in g/km: combined 129–115. Illustr. depicts optional equipment.

www.volkswagen.de

DOSSIER Car Leasing in Europe I Geographical presence Multibrand

AUSTRIA

ALD International

Alphabet International

Arval

Athlon Car Lease International

Business Lease Goup

GE Capital International

LeasePlan

Sixt Leasing

Volkswagen Financial Services

Banque PSA Finance

Daimler Fleet Management

FCA Bank

Nissan Finance/ Leasing

RCI

ARI

Fleet Logistics

P.26

Captive

BELGIUM

Fleet Management

BULGARIA

CZECH REPUBLIC

S=Subsidiary, N=Network Partner, T.F. = Total fleet

CROATIA

DENMARK

ESTONIA

FINLAND

FRANCE

GERMANY

GREECE

HUNGARY

-

-

-

-

-

-

-

-

-

-

-

-

S

S

S

S

S

S

S

S

S

S

S

S

T.F. 5,191

T.F. 63,689

T.F. 1,803

T.F. 13,417

T.F. 2,871

T.F. 13,719

T.F. 1,143

T.F. 24,475

T.F. 342,452

T.F. 131,281

T.F. 3,688

T.F. 5,620

-

-

-

UniCredit Leasing / Business Lease

-

-

-

-

-

-

-

UniCredit Leasing / Business Lease

S

S

-

N

-

S

-

-

S

S

-

N

T.F. 5,527

T.F. 43,260

-

n/a

-

T.F. 1,954

-

-

T.F. 77,869

T.F. 153,275

-

n/a

-

-

-

-

-

-

-

Arval Suomi

-

-

-

-

S

S

-

S

-

S

-

S

S

S

S

S

T.F. 3,079

T.F. 38,357

-

T.F. 11,121

-

T.F. 682

-

T.F. 846

T.F. 210,972

T.F. 25,465

T.F. 1,223

T.F. 3,846

-

Business Lease Czech Republic

-

-

-

-

Athlon France

Athlon Germany

-

Business Lease Hungary

Interleasing & Co Athlon Belgium N

S

-

N

-

-

-

-

S

S

-

N

T.F. 2,000

T.F. 45,559

-

T.F. 8,750

-

-

-

-

T.F. 38,561

T.F. 33,894

-

T.F. 2,850

-

-

-

Business Lease Czech Republic

-

-

-

-

-

-

-

Business Lease Hungary

-

-

-

S

-

-

-

-

-

-

-

S

-

-

-

T.F. 9,300

-

-

-

-

-

-

-

T.F. 3,000

-

-

-

-

-

-

-

-

-

-

-

-

S

S

-

N

-

N

-

-

S

S

-

N

-

-

-

-

-

-

-

-

-

-

-

-

LeasePlan Österreich

LeasePlan Fleet Management

-

LeasePlan Ceská Republika

-

LeasePlan Danmark

Swedbank

LeasePlan Finland Oy

LeasePlan France

LeasePlan Deutschland

LeasePlan Hellas

LeasePlan Hungária

S

S

-

S

-

S

N

S

S

S

S

S

T.F. 33,000

T.F. 50,600

-

T.F. 17,000

-

T.F. 26,000

-

T.F. 20,000

T.F. 94,000

T.F. 86,500

T.F. 12,800

T.F. 9,000

-

-

-

-

-

-

-

-

-

-

-

-

-

-

N

N

N

N

N

-

S

S

N

N

-

-

-

-

-

-

-

-

-

-

-

-

Partnership with Porsche Bank Austria

Volkswagen D’Ieteren Finance

Partnership with Porsche Bank Austria

ŠkoFIN

-

Volkswagen Group Fleet Solutions

Volkswagen Leasing

Volkswagen Bank

Partnership with Porsche Bank Austria

Partnership with Partnership with Partnership with Porsche Bank the importer DNB Austria

N

N

N

S

N

-

N

-

S

S

S

N

T.F. 36,200

T.F. 28,356

T.F. 1,161

T.F. 6,013

T.F. 8,387

-

n/a

-

T.F. 59,932

T.F. 619,186

n/a

T.F. 9,116

Banque PSA Finance Niederlassung Österreich

PSA Finance Belux

-

PSA Finance Česká Republika

PSA Financial

-

-

-

Credipar

Banque PSA Finance Niederlassung Deutschland

-

PSA Finance Hungária

S

S

-

S

S

-

-

-

S

S

-

S

T.F. 14,141

T.F. 8,972

-

-

-

-

-

-

T.F. 206,732

T.F. 79,2961

-

-

Mercedes-Benz Financial Austria

Mercedes-Benz Financial Services BeLux

-

-

-

Mercedes-Benz Financial Services France

Daimler Fleet Management

-

Mercedes-Benz Hungária

S

S

-

S

S

S

-

-

S

S

-

S

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

FCA Fleet Services France

-

-

-

-

-

-

-

-

-

-

-

S

-

-

-

-

-

-

-

-

-

-

-

T.F. 33,167

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

N

S

-

N

-

-

-

-

S

S

-

-

T.F. 1,000

T.F. 500

-

T.F. 750

-

-

-

-

T.F. 7,500

T.F. 25,000

-

-

RCI Banque Niederlassung Deutschland

-

RCI Finance

S

-

S

RCI Banque Niederlassung Österreich

Mercedes-Benz Mercedes-Benz Financial Mercedes-Benz Leasing Services Ceská Finans Danmark Hrvatska republika

RCI Financial Services

-

RCI Financial Services

RCI Usluge

Renault Finance Nordic

-

-

Diac / Diac Location / Ovelrease

S

S

-

S

S

S

-

-

S

T.F. 5,300

T.F. 5,000 (including LUX)

-

T.F. 10,100

n/a

T.F. 600

-

-

T.F. 328,200

T.F. 83,000

-

T.F. 1,300

ARI Germany

ARI Belgium

-

-

-

ARI UK

-

ARI UK

ARI France

ARI Germany

-

-

Managed by ARI Germany

S

-

-

-

Managed by ARI UK

-

Managed by ARI UK

S

S

-

-

T.F. 494

T.F. 2,159

-

-

-

T.F. 260

-

T.F. 292

T.F. 2,295

T.F. 30,270

-

-

-

-

-

-

-

-

-

-

-

-

-

-

S

S

N

S

-

S

-

S

S

S

S

S

T.F. 2,656

T.F. 11,235

T.F. 1,234

T.F. 552

-

Within Nordics

-

T.F. 6,319

T.F. 13,059

T.F. 55,819

T.F. 745

T.F. 1,490

FLEET EUROPE # 77

Multibrand

IRELAND

ITALY

Captive

KAZAKHSTAN

Fleet Management

LATVIA

LITHUANIA

S=Subsidiary, N=Network Partner, T.F. = Total fleet

LUXEMBURG

NETHERLANDS

NORWAY

POLAND

PORTUGAL

ROMANIA

RUSSIA

Johnson & Perrot

-

-

-

-

-

-

-

-

-

-

-

N

S

S

S

S

S

S

S

S

S

S

S

T.F. 1,165

T.F. 115,246

T.F. 63 (incl in the RU fleet)

T.F. 1,383

T.F. 1,289

T.F. 10,466

T.F. 26,811

T.F. 9,700

T.F. 9,361

T.F. 12,459

T.F. 8,392

T.F. 18,718

-

-

-

-

-

-

-

-

-

-

UniCredit Leasing

-

-

S

-

-

-

S

S

-

S

-

N

-

-

T.F. 24,688

-

-

-

T.F. 2,371

T.F. 78,419

-

T.F. 12,159

-

n/a

-

-

-

-

-

-

-

-

-

-

-

-

-

-

S

-

-

-

S

S

-

S

S

S

S

-

T.F. 137,938

-

-

-

T.F. 3,885

T.F. 29,580

-

T.F. 15,513

T.F. 5,460

T.F. 6,154

T.F. 7,788

Merrion Fleet Management

Athlon Italy

-

-

-

Athlon Luxembourg

Athlon The Netherlands

-

Athlon Poland

Athlon Portugal

Business Lease Rumenia

Auto Partners

N

S

-

-

-

S

S

-

S

S

N

N

T.F. 6,500

T.F. 12,147

-

-

-

T.F. 1,729

T.F. 103,971

-

T.F. 3,600

T.F. 1,118

T.F. 2,950

T.F. 4,000 -

-

-

-

-

-

-

Business Lease The Netherlands

-

Business Lease Poland

-

Business Lease Romania

-

-

-

-

-

-

S

-

S

-

S

-

-

-

-

-

-

-

T.F. 19,500

-

T.F. 5,100

-

T.F. 3,000

-

-

-

-

-

-

-

-

-

-

-

-

-

-

S

-

-

-

S

S

-

N

S

-

-

-

-

-

-

-

-

-

-

-

-

-

-

LeasePlan Ireland

LeasePlan Italia

-

Swedbank

Swedbank

LeasePlan Luxembourg

LeasePlan Nederland

LeasePlan Norge

LeasePlan Fleet Management Polska

LeasePlan Portugal

LeasePlan Romania

LeasePlan Rus

S

S

-

N

N

S

S

S

S

S

S

S

T.F. 10,300

T.F. 110,000

-

-

-

T.F. 8,310

T.F. 120,000

T.F. 39,000

T.F. 24,300

T.F. 84,580

T.F. 10,463

T.F. 105

-

Sixt Partner Italien Leasys

-

-

-

-

-

-

-

-

-

-

N

N

-

N

N

-

-

-

N

-

N

N

-

-

-

-

-

-

-

-

-

-

-

-

Volkswagen Bank

Volkswagen Leasing

-

Volkswagen Pon Financial Services

Volkswagen Møller BILFinans

Volkswagen Bank Polska Volkswagen Leasing Polska

VW Financial Services

Partnership with Porsche Bank Austria

Volkswagen Group Finanz

Partnership with Partnership with Partnership with importer DNB DNB Aauto-disfusion Losch

S

S

-

N

N

N

S

N

S

S

N

S

n/a

T.F. 55,247

-

n/a

n/a

-

T.F. 51,718

T.F. 15,753

T.F. 8,458

T.F. 3,203

T.F. 11,217

T.F. 4,797

-

Banque PSA Finance Succursale In Italia

-

-

-

-

PSA Finance Nederland

-

-

Banque PSA Finance Russie

-

S

-

-

-

-

S

-

S

S

-

S

-

T.F. 5,748

-

-

-

-

T.F. 5,175

-

-

T.F. 1,742

-

-

Banque PSA Banque PSA Finance Oddzial Finance Sucursal w Polsce em Portugal

Alphabet International

Arval

Athlon Car Lease International

Business Lease Goup

GE Capital International

LeasePlan

Sixt Leasing

Volkswagen Financial Services

Banque PSA Finance

Mercedes-Benz Financial SerMercedes-Benz Mercedes-Benz vices Portugal Mercedes-Benz Financial Leasing Polska – Instituicao Leasing IFN Services Rus Daimler Fleet Financeira des Management Crédito

-

Mercedes-Benz CharterWay

-

-

-

Mercedes-Benz Financial Services BeLux

Mercedes-Benz Financial Services Nederland

-

S

-

-

-

S

S

-

S

S

S

S

-

-

-

-

-

-

-

-

-

-

-

-

-

Leasys

-

-

-

-

FCA Capital

-

-

-

-

-

-

S

-

-

-

-

S

-

-

-

-

-

-

T.F. 80,985

-

-

-

-

T.F. 1,279

-

-

-

-

-

-

ALD International

-

-

-

-

-

-

-

-

-

-

-

-

N

S

-

-

-

-

N

-

N

N

N

N

T.F. 600

T.F. 10,000

-

-

-

-

T.F. 2,000

-

T.F. 3,000

T.F. 4,000

T.F. 1,000

T.F. 1,500

RCI Leasing Romania Ifn

Rn Bank / Renault Leasing

RCI Banque Spółka RCI Banque Akcyjna Oddział Portugal / Renault w Polsce / Rci Gest / Renault Leasing Polska Business Finance

RCI Banque Irlande

Finrenault / Es Mobility

-

-

-

RCI Financial Services

RCI Financial Services

-

S

S

-

-

-

S

S

-

S

S

S

S

T.F. 1,900

T.F. 45,600

-

-

-

T.F. 5,000 (including BE)

T.F. 9,000

-

T.F. 17,000

T.F. 9,200

T.F. 16,000

T.F. 2,200

ARI UK

ARI Spain

-

-

-

ARI Belgium

ARI Belgium

-

-

-

-

-

Managed by ARI UK

Managed by ARI Italy

-

-

-

Managed by ARI Belgium

Managed by ARI Belgium

-

-

N

-

-

T.F. 447

T.F. 1,501

-

-

-

T.F. 53

T.F. 1,596

-

-

T.F. 223

-

-

-

-

-

-

-

-

-

-

-

-

-

-

S

S

N

-

-

S

S

S

S

S

N

N

Within UK

T.F. 11,415

-

-

-

Within BE

T.F. 8,376

Within Nordics

T.F. 1,829

T.F. 1,177

T.F. 365

T.F. 488

FCA Bank

Nissan Finance/ Leasing

RCI

ARI

Fleet Logistics

You will find a more detailed overview of the geographical presence of the main car leasing companies online: www.fleeteurope.com

FLEET EUROPE # 77

P.27

DOSSIER Car Leasing in Europe I Geographical presence Multibrand

Captive

Fleet Management

S=Subsidiary, N=Network Partner, T.F. = Total fleet

TOTAL SERBIA

ALD International

Alphabet International

Arval

Athlon Car Lease International

Business Lease Goup

GE Capital International

LeasePlan

Sixt Leasing

Volkswagen Financial Services

Banque PSA Finance

Daimler Fleet Management

FCA Bank

Nissan Finance/ Leasing

RCI

ARI

Fleet Logistics

P.28

SLOVAKIA

SLOVENIA

SPAIN

SWEDEN

SWITZERLAND

TURKEY

UK

UKRAINE

OTHERS

-

-

-

-

-

-

-

-

-

-

S

S

S

S

S

S

S

S

S

S

T.F. 1,920

T.F. 2,913

T.F. 1,438

T.F. 75,041

T.F. 22,077

T.F. 3,683

T.F. 11,502

T.F. 114,454

T.F. 4,919

36 (incl. in the RU fleet)

-

UniCredit Leasing / Business Lease

-

-

-

-

-

-

-

-

-

N

-

S

S

S

-

S

-

-

-

n/a

-

T.F. 34,507

T.F. 5,264

T.F. 4,044

-

T.F. 139,621

-

-

-

-

-

-

-

-

TEB Arval

-

-

-

-

S

-

S

-

S

S

S

-

-

-

T.F. 4,815

-

T.F. 70,120

T.F. 13,219

T.F. 102,735

-

-

-

Business Lease Slovakia

-

Athlon Spain

Fleetcorp

Lex Autolease Limited

-

-

-

N

-

S

N

N

-

-

-

T.F. 3,650

-

T.F. 7,884

T.F. 1,731

-

T.F. 24,000

T.F. 310,000

-

-

-

Business Lease Slovakia

-

-

-

-

-

-

-

-

-

S

-

-

-

-

-

-

-

-

-

T.F. 3,900

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

N

-

S

S

S

N

S

-

-

-

-

-

-

-

-

-

-

-

-

-

LeasePlan Slovakia

-

LeasePlan Servicios

LeasePlan Sverige

LeasePlan (Schweiz)

LeasePlan Otomotiv Servis ve Ticaret

LeasePlan UK

-

-

-

S

-

S

S

S

S

S

-

-

-

T.F. 6,900

-

T.F. 71,215

T.F. 26,500

T.F. 13,000

T.F. 13,651

T.F. 136,700

-

-

-

-

-

-

-

-

-

Sixt Partner UK Ogilvie Fleet

-

Cyrpus, Macedonia, Malta

N

N

N

-

N

S

N

N

N

N

-

-

-

-

-

-

-

-

-

-

Volkswagen Leasing

Volkswagen Finans Sverige (publ)

Partnership with importer AMAG

Volkswagen Doğuş Tüketici Finansmanı

Brunswick Co 14 5LR Milton Keynes MK

Partnership with Porsche Bank Austria

-

Partnership with Partnership with Volkswagen Porsche Bank Porsche Bank Finanncne Sluzby Austria Austria

T.F. 6,454 Athlon Athlon Sweden Switzerland (exp. mid 2015) S S -

S

N

S

S

N

S

S

S

-

T.F. 2,764

T.F. 2,173

T.F. 4,283

T.F. 18,119

T.F. 15,157

T.F. 10,500

n/a

T.F. 95,239

T.F. 1,615

-

-

PSA Finance Suisse

BPF Pahaş

PSA Finance UK

PSA Ukraine

-

-

Psa Finance Slovakia

-

S

S

S

-

S

S

S

S

-

-

-

T.F. 117

T.F. 9,672

-

T.F. 28,358

-

T.F. 52,178

-

-

-

Mercedes-Benz Financial Services Slovakia

-

Mercedes-Benz Renting

Mercedes-Benz Sverige

Mercedes-Benz Financial Services UK Limited

-

-

-

S

-

S

S

S

S

S

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

FCA Fleet Services UK

-

-

-

-

-

-

-

-

-

S

-

-

-

-

-

-

-

-

-

T.F. 4,767

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

S

-

N

-

S

-

-

-

-

-

T.F. 10,000

-

T.F. 1,500

-

T.F. 25,000

-

-

RCI Usluge

RCI Finance Sk

RCI Banque, Bančna Podružnica Ljubljana

RCI Finance

RCI P.D.H. ŞTI / Orfin Finansman

RCI Financial Services

RCI Financial Services Ukraine

-

S

S

S

S

S

S

S

S

S

-

n/a

T.F. 3,400

T.F. 1,100

T.F. 23,000

T.F. 13,000

T.F. 8,700

T.F. 12,000

T.F. 36,000

T.F. 500

-

-

-

-

ARI Spain

ARI UK

-

-

ARI UK

-

-

-

-

-

S

Managed by ARI UK

N

-

S

-

-

-

-

-

T.F. 1,332

T.F. 478

T.F. 846

-

T.F. 65,843

-

-

-

-

-

-

-

-

-

-

-

-

-

S

-

S

S

S

S

S

N

-

-

-

-

T.F. 4,812

T.F. 7,099

T.F. 1,656

T.F. 898

T.F. 15,692

-

-

FLEET EUROPE # 77

Grupo RCI España Renault Finance / Overlease Nordic

582,958

699,252

614,894

43,800

180,000+

1,023,924

-

1,068,594

N

Banque PSA BPF Financiranje Finance Sucursal en España

1,062,286

412,131

Mercedes-Benz Mercedes-Benz Financial Finansman Türk Services Schweiz

-

120,199

93,350

539,400

108,090

150.000+

Multibrand

Captive

Fleet Management

NORTH AMERICA

S=Subsidiary, N=Network Partner, T.F. = Total fleet

LATIN AMERICA

ASIA/ PACIFIC

AFRICA

TOTAL ROW

TOTAL EU + ROW

462,079

1,524,365

Mexico

S

T.F. 18,486

China

S

T.F. 2,154

Morocco

S

T.F. 7,682

Brazil

S

T.F. 19,072

India

S

T.F. 10,780

Algeria

S

T.F. 2,826

Chile

S

-

Australia

N

T.F. 55,000

Puerto Rico

N

T.F. 1,058

New Zealand

N

T.F. 18,566

South Africa

N

T.F. 30,000

-

-

-

-

Australia

-

-

-

-

-

-

-

N

-

Brazil

S

-

China, India

S

-

Morroco

S

-

25,971

725,223

USA, Canada

N

T.F. 200,000

-

-

-

-

-

-

-

-

-

200,000

814,894

Business Lease Goup

-

-

-

-

-

-

-

-

-

-

-

-

-

-

GE Capital International

USA

S

-

Mexico

S

-

Australia, New Zealand, Japan

S

-

-

-

-

-

-

LeasePlan

USA, Canada

S

-

Mexico, Brazil

S

-

Australia, New-Zealand, India, United Arab, Emirates

S

-

-

-

-

-

1.4 million

S

-

Singapore, South Korea

S

-

Israel, Bahrain Lebanon, Libya, Morocco, Qatar, Saudi Arabia, Syria, Tunisia, United Arab Emirates

S

-

-

154,900

n/a

15,896

1,084,490

USA

N

T.F. 283,766

Canada

N

T.F. 12,689

Alphabet International

-

-

Arval

USA, Canada

Athlon Car Lease International

ALD International

Sixt Leasing

-

-

-

Argentina, Brasil, Costa Rica, Dom. Rep., Guadeloupe, Mexico, Panama, Peru, Puerto Rico, Uruguay,

Volkswagen Financial Services

USA, Canada

S

T.F. 14,178

Brazil, Mexico

S

T.F. 31

China, Japan, Australia, India, South Korea, Malaysia

S

T.F. 1,687

Banque PSA Finance

-

-

-

Brazil, Argentina, Mexico

S

-

China

S

-

-

-

-

-

-

Daimler Fleet Management

USA

S

-

Mexico, Brazil, Argentina, Puerto Rico

S

-

Australia, China, Thailand, Taiwan

S

-

South Africa

S

-

-

-

FCA Bank

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Nissan Finance/ Leasing

-

-

-

Brazil

-

T.F. 6,000

Korea

-

T.F. 1,000

-

-

-

7,000

100,350

Argentina

S

T.F. 300

RCI

-

-

-

South Korea

S

T.F. 11,500

Algeria

S

T.F. 1,500

Brazil Colombia

S S

T.F. 25,000 n/a

50,600

590,000

India

S

-

Morocco

S

T.F. 12,300

N

Japan, China, Hong Kong, India, Indonesia, Kazakhstan, Malaysia, Oman, Pakistan, T.F. 135,000 N Philippines, Singapore, South Korea, Taiwan, Thailand, Australia, and New Zealand

South Africa, Kenya, Nigeria, Namibia, Botswana, Swaziland, N Lesotho, Nigeria, Tanzania, Zambia, Mozambique

T.F. 66,000

2,607,622

2,715,712

-

-

-

-

United States (HQ)

S

Canada

S

T.F. 867,885

Mexico

S

T.F. 28,737

Brazil, Argentina, Bolivia, Chile, Ecuador, Paraguay, Uruguay; Colombia, and Peru

hub in the USA

-

-

hub in Brazil

T.F. 170,000

ARI

Fleet Logistics

-

hub in Singapore

-

T.F. 1,340,000

-

South Africa; UAE S

hub in South Africa

-

You will find a more detailed overview of the geographical presence of the main car leasing companies online: www.fleeteurope.com

FLEET EUROPE # 77

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DOSSIER Car Leasing in Europe I The Big 7

Cautious optimism for future You can read it as an indication of the depth of the past crisis, or of the strength of the subsequent recovery: the fact that LeasePlan this year finally managed to top its 2008 record of 1.39 million vehicles under contract. In light of recent hard times, its optimism – and that of the other of Europe’s Big Seven lease companies – is tempered with caution.

C

rises are opportunities, and the economic storm that shook the world from 2008 until recently was no exception. In the lease industry, it led to large customers defleeting their portfolio, but also to SMEs getting into full service leasing as a way to refocus their resources on their core businesses.

Consolidation among lease companies accelerated, with those that remained targeting expansion efforts at markets that outperformed the mature European ones.

Future ambitions So far, so general. But each of Europe's Big Seven lease companies of course has a slightly different take on the situation, depending on its current market position, and its future ambitions.

After its post-2008 dip, LeasePlan started growing again by 2011. Quite wisely, it focused on SMEs, international fleets and developing markets. Except that one of them was Russia – of course, that country's current geopolitical troubles were unforeseeable back then. Other expansions – Canada, Italy, Turkey – would prove less unfortunate.

SMEs will be the engine for further growth of full service leasing, the lease companies agree.

Supplier landscape ALD Automotive is not quite there yet, but it is catching up fast to LeasePlan's big number: from 917,000 units in 2011 to 1.1 million cars and LCVs at the beginning of this year. ALD counts on its large direct coverage, especially in those large automotive markets where the leasing solution has yet to achieve widespread popularity, to continue to exceed market growth.

In the BRICS of course, but also Eastern Europe, Kazakhstan, Mexico and Turkey.

Each of Europe’s Big Seven lease companies has a slightly different take on the current situation, depending on its future ambitions.

And its focus on the other BRICS (and Mexico) is more in line with the general expectation that economic growth and a maturing fleet market mutually reinforce the demand for fleet management approaches that can lower TCO. LeasePlan's vision for the future is of corporate mobility that is no longer vehicle-centred, but driver-centred (i.e. including other transport modes than the car).

One of ALD's specialities is seeking out markets with an 'empty supplier landscape', which helps explain why international fleet customers represent 40% of its worldwide fleet. But its global credentials are also boosted by its alliances with Wheels (from North America) and FleetPartners (Australia/New Zealand).

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DOSSIER Car Leasing in Europe I The Big 7

Modest objectives Despite its more modest objectives – 800,000 vehicles leased by the end of 2016, up from just over 600,000 in 2008 – Arval is no less ambitious than its bigger rivals.

Anticipating that companies will increasingly be seeking integrated solutions and full outsourcing offers, Arval is offering an equally wide range of formulas to fit those diverse and wide-ranging needs, from an International Business Office (for clients wanting an international approach), over Arval Consulting (offering analysis, expertise and advice) to Arval Smart Experience (a suite of four online tools and social networks).

As with others, Arval is counting on swift progress in emerging markets to make up for the sluggish growth in the mature ones.

180% increase At the end of March 2015, Alphabet managed more than 555,000 cars, an increase of 180% in just five years.

Enormous progress, of course partly thanks to the company's takeover of ING Car Lease. But Alphabet has also rolled out an attractive suite of solutions aimed as increasing efficiency and lowering TCO, with among others AlphaElectric and the Mobility Budget.

While keeping an eye on the BRICS, Turkey and on the Asian markets, Alphabet is realistic enough to acknowledge that its European markets will remain dominant for now. Especially since the gradual harmonisation of EU tax systems will facilitate internationalisation and centralisation and streamline decision-making, thus stimulating growth.

Greener fleets Although it has its own subsidiaries, Athlon more than other lease companies bases its expansion strategy on cooperating with network partners, like Lex Autolease in the UK or Fleetcorp in Turkey. The company is a strong believer in greener fleets, which it promotes via its Cleaner Car Contracts, which underline the value of hybrid and electric vehicles, and in the coming shift from ownership to usage, which will be mirrored in a movement from fleet management to mobility management.

Athlon is committed to following its customers to new markets, but also seizes opportunities wherever its parent company De Lage Landen is present. The future of the fleet industry will be both more centralised and more globalised, because of trends toward increasing complexity and flexibility, Athlon thinks.

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7 Fast Facts • W ith a total fleet over 1.42 million (2015), LeasePlan remains the biggest full service leasing company in the world.

• A LD Automotive has operations in 40 countries, the largest direct coverage of any lease company.

• A rval’s objective is to exceed the 800,000-vehicle mark by the end of 2016.

• V olkswagen Financial Services prides itself on its ‘captive triangle’ with VW brands and dealers.

• M ore than other lease companies, Athlon Car Lease International bases its expansion strategy on cooperating with network partners.

• A cquiring ING Car Lease in 2011 propelled Alphabet into the lease company Top 5.

• W ith large operations in North America and Asia, GE Capital has a strong global presence.

Solid status For its part, Volkswagen Financial Services too is concentrating its growth efforts on the markets where its parent VW Group is present – 40 in all, worldwide. The company aims to exploit growth potential especially in mature markets, where its solid status and good customer relations give it an edge, and especially in the insurance, nearly new car and worldwide fleet management segments. VWFS hopes to increase its fleet business in its home market of Germany, trough its fleet management company CarMobility.

Last but not least, GE Capital offers the usual panoply of dedicated teams, specialised consultancy and sophisticated software packages with the added bonus of its worldwide coverage, on the back of its multitentacled parent, General Electric. It remains to be seen whether GE's announced sale of most of its lease business will affect its ability to deliver the 'global' goods.

Especially since the company itself remarks that its clients are trending towards global tenders, and demanding global support. ■ Frank Jacobs

DOSSIER Car Leasing in Europe I Local Players

Leasing is a national activity too The world of leasing doesn’t just function at an international level, with companies operating in a wide range of countries. This year, alongside the companies largely covered elsewhere in these pages, we are also focusing on those companies which are mostly involved in their national markets.

Who are they? What sort of products and services do they offer? Who are their clients? What sets them apart from the others? How are they organised and what sort of fleet size do they have? A few responses within a gallery of portraits of these nationally-focused players in a number of countries.

KBC AUTOLEASE

PARCOURS

Fleet: 60,000 vehicles

Fleet: 45,285 vehicles Saskia Raymaekers, Manager Marketing & Sales Support KBC Autolease, a subsidiary of a major Belgian bank, is only active in B2B with 2,977 in Belgium (N° 2) and Luxembourg. “Around half of our clients employ 1-15 people”, indicates Saskia Raymaekers, Manager Marketing & Sales Support. “But it is the 267 clients who employ more than 300 persons which account for almost half of our fleet”.

The company provides classic leasing products (financial leasing with services, renting with services, full service operational leasing) including the various component parts: finance, maintenance and repairs, summer and winter tyres, insurance, own risk, replacement vehicles, road tax, fuel…

The future is in particular the car/bike or even scooter (on test) mix and then a genuine mobility budget.

Frédéric Taillardat, Marketing Manager For more than 25 years this French company, independent of any bank or motor manufacturer, has been growing in France and across Europe and now has some 2,200 clients in its home market (including a few in Belgium, Luxembourg, Spain and Portugal). “What sets us apart”, explains Frédéric Taillardat, Marketing Manager, “is a network of 21 agencies, operational entities at a human scale offering all of the services under one roof: sales, deliveries/returns, invoicing/accounting, operation, technical platform, mechanical and bodywork, used car sales”.

Proximity, simplicity and reactivity are the key-words of this multi-brand operation. “We are ideally organised to be a suitable partner for SMEs, our main target group, and for large accounts (Bouygues, DHL…)”. Alongside these classic service offerings, Parcours provides made to measure ‘outside contract’ elements. The company also stands out for its services such as ‘while waiting’ cars and information management.

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DOSSIER Car Leasing in Europe I Local Players

VOLKSWAGEN LEASING (PART OF VOLKSWAGEN FINANCIAL SERVICES)

Fleet: 14,000 vehicles

Fleet: +/- 1 million Employees Germany: 750 Branches Europe: 28 (2013 figures)

Sandra Tuimil, head of the French-speaking Swiss branch

Marcel Küch, Leasing Specialist Strategic and Key Accounts, Volkswagen Leasing

AUTO-INTERLEASING SA

Number 2 in its market, Auto-Interleasing SA is the only Swiss leasing company independent of any bank or brand. “Our company”, indicates Sandra Tuimil, head of the French-speaking Swiss branch, “is capable of offering everything involving car mobility from our three sites at Muttenz, Dietikon and Nyon”.

The German arm of the multi-national leasing giant Volkswagen Financial Services deals with both fleet and retail customers, retail customers. It provides both financial lease and operational lease, with elements such as maintenance and repairs, tyre services, insurance, fuel cards and fuel management, fine management, radio tax, taxes in general, reporting.

Auto-Interleasing SA offers complete and made-tomeasure services for international companies, along with SMEs. “Some businesses do not believe that their fleet is large enough to turn to leasing, but we are able to let them benefit from the prices and conditions granted to large fleets”.

The car leasing and fleet management services specialist in Germany also offers direct to driver communication within special departments, and can also offer salary sacrifice models.

Its modular management system enables different elements to be combined, and encourages the provision of different services together: reporting, financing formulas, fuel management, maintenance, tyre supply, road taxes, insurance, accident management…

Being a captive leasing specialist, the company has built a dedicated captive triangle, which is unlike any other leasing company. This collaboration supports quality services, ease of use for drivers, competitive pricing.

Additionally, during the financial crisis the leasing specialist maintained its financial standing while some other leasing companies had difficulties with refinancing.

The human aspect is always at the centre of the reflections of Auto- Interleasing SA, in order that the management of a fleet of vehicles is as diverse as the needs of its users.

The future is set to see the rollout of reporting tool in different countries, and harmonization of products in the different countries. ■

Frédéric Van Vlodorp & Tim Harrup

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DOSSIER Car Leasing in Europe I Captives and multibrands

Spot the difference “Every disadvantage has its own advantage”: that famous saying by Dutch footballing legend Johan Cruyff also applies to the divergence between multibrands and captives. But there are also a lot of synergies between both categories of lease companies. No wonder – they both fight for a share of the same market. Just from a slightly different angle...

P

erhaps the term ‘captive’ should be replaced with something else. It conjures up negative images and associations. And of course, it does describe a lease company that is quite literally ‘bound’ to a single manufacturer, to the exclusion of other brands.

In Alphabet’s case, it’s BMW. Banque PSA belongs to PSA Peugeot Citroën. Daimler Fleet Management is linked, via its parent company Daimler AG, to the MercedesBenz brand. RCI Banque acts for the Renault-Nissan Alliance. No points for guessing where the professional sympathies of Volkswagen Financial Services might lie.

“Superior services” Potential customers could be deflected by the prospect of having to limit themselves to the product range of a single manufacturer. But in the logic of the captives themselves, that argument is successfully stood on its head.

Being part of a manufacturing group provides a captive leasing company with the ability “to deliver the superior services and products of our group to customers worldwide”, in the words of one captive.

“This is a major competitive advantage when dealing with international fleet customers who look for worldwide high-quality fleet solutions”.

Keen on connectedness Captives generally struggle to match the breadth and depth of their multibrand competitors’ offer, especially over multiple markets. But of course they leverage their access to the manufacturers in compensation. Technology is an interesting field in this respect, especially with telematics and the connected car becoming increasingly relevant. Captives can and do exploit their position closest to the manufacturers to offer connected services in a more integrated way than their non-captive competitors.

such as repairs, tyre replacements, fuel card management and cross-border fleets – for all of which it is eminently placed, by virtue of its connection to a manufacturer.

The blurring of the differences between captives and multibrands is good news for the customer.

Flipside And indeed, the captive leasing company is able to craft the appropriate financing and leasing solutions, but ideally also takes care of all fleet-related issues

The flipside to this is that multibrand lease companies indeed have the advantage over captives in that they can easily offer the services and products of any brand, so their customers don’t need to deal with multiple lease companies to service a mixed-brand fleet.

Furthermore, the multibrands, which have traditionally concentrated on big, international companies, are now turning to SMEs - the captives’ preferred hunting ground – for growth.

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DOSSIER Car Leasing in Europe I Captives and multibrands

Captives and multibrand leasing companies fight for the same market share – just from a slightly different angle.

All-brand captive Of course, two can play at that game. Captives are increasingly turning to larger companies for custom. And abandoning their single-brand character.

Alphabet profiles itself, somewhat self-contradictorily, as the only “all-brand captive”, as it offers products and services irrespective of their manufacturer origin – i.e. BMW or not.

• T he ongoing trend towards centralisation of fleet management on a global level, driven by corporate targets like cost savings, harmonisation and process optimisation.

Daimler Fleet Management also mentions that it is expanding its portfolio by offering “services for the complete fleet of all European customers, including non-group brand vehicles, to maximise customer satisfaction”.

• In mature markets, SMEs will drive growth, while international companies will pioneer (or continue) growth in emerging markets.

In these instances, the tables seem to have turned on the multibrand leasing companies: now it is they who have the competitive disadvantage... at least on paper.

What counts for the customers, is the mix of services and solutions offered by the lease company, whether pure captive, all-brand captive or pure multibrand.

Industry trends What complicates this point is the fact that lease companies, captives and multibrands alike, are aligning their offers according to largely similar projections and predictions of where the fleet industry is trending towards. The main ones being:

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FLEET EUROPE # 77

• T he continued growth of the full service leasing model, in emerging markets but even, to a lesser extent, in mature ones.

• T he increasing harmonisation of European tax systems, and the beneficial effect this will have on the industry from an international perspective; • T he shift from services centred on cars to those centred on drivers, with a wide range of mobility solutions added to the mere company car.

The blurring of the differences between captives and multibrands is good news for the customer: as both categories enter into direct competition with each other, the end user should obtain more service and better prices. ■ Frank Jacobs

ADVERTORIAL I RCI Banque

A one-stop-shop for fleet customers RCI Banque SA is a 100% subsidiary of Renault SA which head office is located near Paris, France. A Fleet and Mobility Business Unit is entirely dedicated to corporate activities, with the aim to keep meeting, day after day, the needs and expectations of fleet customers with their one-stop-shopping approach.

T

he fleet market is a major driver in the development of RCI Banque, notably through an asserted international presence and complete product coverage.

RCI Banque SA provides finance for the sales of Renault Group brands (Renault, Renault Samsung Motors, Dacia) throughout the world, and for the Nissan Group (Nissan, Infiniti, Datsun) primarily in Europe, Russia and South America.

Innovative finance services The group’s mission is to support the Renault-Nissan Alliance brands by proposing a full range of innovative finance options and services to their customers. In addition to addressing the retail customers and dealers, RCI Banque offers innovative financing and service solutions designed for corporate vehicle fleets of all sizes.

RCI Banque group’s organization has been designed to match this segmentation, and a Fleet and Mobility Business Unit is entirely dedicated to corporate activities.

For Corporate Customers, which include SMEs, craftsmen, shopkeepers, rent-acar companies and multinational firms, RCI Banque offers fleet financing and full service fleet management solutions.

For Corporate Customers, which include SMEs, craftsmen, shopkeepers, rent-a-car companies and multinational firms, RCI Banque offers fleet financing and full service fleet management solutions.

One-stop-shopping approach Not only are RCI Banque’s products and services dedicated to supporting the sale of vehicles of the Renault-Nissan Alliance brands (PCs as well as LCVs), but the group also supports the manufacturers’ strategy in a permanent concern to control residual values.

The fleet market is a major driver in the development of RCI Banque.

Global coverage The B2B contract portfolio managed by RCI Banque around the world reaches nearly 600,000 vehicles, and their ambition is to maintain the 2014-2015 growth rate, aiming at a 10 percent increase by the end of the year.

RCI Banque operates in a large number of countries (25 in total), mostly within Europe but also in South Korea, not to mention countries with a strong growth potential for the near future like Turkey, Morocco and Brazil.

RCI Banque’s main challenge with regard to leasing companies is to be able to offer the corporate customer a range of financial solutions and services adapted to their needs, in terms of mobility and taxation.

This global strategy, based on a one-stop-shopping approach, bears the advantage of integrating the delivery of the vehicle, its financing (credit, leasing and long term rental) and the provision of services. The single point of contact for the client is the carmaker network.

In short, RCI Banque’s ultimate goal is to keep meeting, day after day, the specific needs and expectations of their fleet customers. ■

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DOSSIER Car Leasing in Europe I Remarketing in Europe

Cooperation and standardisation become key

Lease suppliers are facing an increasingly complex and challenging remarketing market, which requires closer cooperation within the industry, across the supply chain.

Remarketing is an integral part of fleet management: the value of used vehicles impacts all players in the supply chain, and even the end customer. Lessors, with the intent to reduce their losses and optimise their processes, are ready for what the future holds. Here’s a glimpse at how they see things.

A

couple of months ago, Jean-Laurent Paris, Managing Director of global used vehicle management specialist DEKRA, told Fleet Europe that “the remarketing process itself [is changing]. Most of the resale happens online, not only via e-auctions, but also via telesales and other channels.”

This trend is definitely confirmed by lease suppliers, who aim to play their part in this field. Whilst ALD aims to focus on optimising their sales tool to market their returned vehicles on the most favourable markets at the most favourable time, LeasePlan International acknowledges that technological developments will have their impact on the remarketing processes, where the latter will become more automated.

Jean-Laurent Paris. “But if they fail to handle the total product stream well, they will lose money on used vehicle management.”

Closer cooperation between stakeholders Hence Fleet Logistics’s insistence that lease suppliers are facing an increasingly complex and challenging remarketing market, which requires closer cooperation within the industry, across the supply chain. And they add than even more clever strategies will be required to link remarketing with demand and pricing to optimize residual values in the mid-term. It therefore seems that not only do lessors have to be ready for the online evolution of the remarketing business, but they also have to speak with one another to align processes. LeasePlan’s proposal to focus on the further standardisation of clear and transparent return processes therefore makes perfect sense.

If suppliers fail to handle the total product stream well, they will lose money on used vehicle management.

From ‘tyre kicker’ to ‘tyre clicker’ This shift from ‘tyre kicker’ to ‘tyre clicker’ is also highlighted by Sixt Leasing AG, who will expand their technological capabilities and IT solutions to meet their clients’ demand. It’s undeniable; technology has an increased relevance in the complete process from order to servicing to remarketing, as is highlighted by Athlon Car Lease International, who also believes that a change in car taxation (e.g. hybrids), increased focus on fuel consumption, and environmental consent will impact the future values of end-of-contract vehicles.

“In the contracts between lease companies and their customers, there is strong focus on profit”, insisted

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Which is why, in November 2015, Nexus Communication (publisher of Fleet Europe) and its partners will introduce the Car Remarketing Association (CARA), meant to be a single voice, defending the sector’s common interests: to lobby European legislators, aiming to make cross-border trade as transparent and easy as it should be; and also, to self-regulate: pooling information, setting up standards and norms. ■ Laetitia Fernandez

DOSSIER Car Leasing in Europe I Future outlook

4 Trends to watch out for Car fleet management has been evolving slowly over the past 10 years. Yes, in Europe, fleet management outsourcing is now the norm and procurement people have taken over the strategic fleet management role. Taxation is CO2-oriented and impacts on the car model selection. And, where possible, multinationals and suppliers have streamlined their organisation to profit from a centralised volume maximisation approach. But fundamentally, nothing has turned the business around or pushed it further. This could change in the near future though, as we identify a new dynamic in the market.

W

e share with you 4 trends that we believe could have a key impact on the international fleet business and car fleet industry.

1

Thirdly, companies specialised in fleet management have settled in Europe and are expanding their activities on an international level, promising more service flexibility, transparency and contract clarity to the end customer.

The situation could get back to this. First of all, bankowned car lease companies have to apply stricter financial rules with Basel 3, and make sure they have enough of a buffer and funds aside should a new financial drama occur. So the return on investment, from the car leasing company’s point of view, becomes less attractive.

On top of this, driver behaviour is directly linked to sustainability and safety, and fits right into the CSR and Health & Safety policies that more and more international companies have implemented – and that their internal clients have to comply with –, including on the supplier’s side. Car lease companies will therefore have to take into account the driver behaviour element in their clients’ cost structure.

Pressure on operational leasing with multinational clients Some 40 years ago, in the mid-1970’s, car leasing and the outsourcing fleet model still had everything to prove. Companies preferred to acquire a car fleet with their own money and manage it internally, and they would only look to outsource some services if, black on white, it was more interesting for them: i.e. cost-friendly. The popularity of car leasing, and of operational leasing in particular, was driven by the fact that it was an off-balance sheet product, interesting for multinationals and US-headquartered companies.

Secondly, the off-balance sheet character of operational leasing in Europe might change since new IFRS Accounting rules with regard to the leasing product are in preparation. Consequently, every type of leasing should be treated according to the same accounting principle as if one was purchasing an asset with cash: meaning as an on-balance sheet item for the client.

When this becomes the rule – and rumour has it that it could be the case by the end of this year – one of the

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biggest advantages of operational leasing for multinational companies will disappear.

FLEET EUROPE # 77

2

Driver behaviour Driver behaviour is already on the agenda of many an international fleet manager. This trend can only increase in the years to come, as the industry realises that working on driver behaviour impacts dramatically on a fleet’s cost structure – driver behaviour is said to amount to 15% of the total cost of use.

We are convinced that the services, products and tools in this area will gain in importance and flexibility, that they will become less expensive to use and implement, be more widespread in the near future, and that car lease suppliers will integrate driver behaviour as a core service in their product offer – provided they want to remain successful.

Car fleet suppliers will have to help clients to set up efficient telematics programmes; they will guide the client in the communication and roll-out process in order to eliminate possible conflicts with, and obstructions from drivers and work councils.

3

Telematics More than anything, in fleet management telematics is the talk of the town. This comes as no surprise since everybody is convinced of the added value telematics brings with regard to route optimisation, driver behaviour and employee productivity. But the reluctance linked to privacy issues and the non-acceptance by work councils and HR departments in various countries – and within many companies – is still patent.

4

Less benefit and user-chooser cars in fleet The time when you could choose a new job, holding a brochure of your beloved future company car in your hands, might not be gone, but the pressure is definitely on. Legislation is examining the role and advantages of company cars with a focus on the benefits of the private use of the company car.

Car lease companies will have to take into account the driver behaviour element in their clients’ cost structure.

But there is no way back.

Telematics will reach Europe more significantly. The advantages and implications in various fields of fleet management and employee productivity are so widespread that, in the years to come, telematics will become more integrated. First with pure worktool fleets, but then also with benefit and user-chooser fleets – although with some delay.

Car fleet suppliers will have to help clients to set up efficient telematics programmes; they will guide the client in the communication and roll-out process in order to eliminate possible conflicts with, and obstructions from drivers and work councils.

In the war for talent, the company car remains a weapon of choice to convince the potential future employee, but its importance is declining in various business sectors as the power of HR and of the employee is shrinking. This has been the case since the arrival of procurement profiles as fleet management leaders, with their vision on cost cutting and cost control.

If you couple this with the CSR element and the wish to maximise fleet efficiency with driver behaviour and telematics, it will become less and less attractive to have a user-chooser fleet. ■

Steven Schoefs & Tony Elliott

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DOSSIER Car Leasing in Europe I New and Emerging Markets

New clients to drive full service leasing progress Full service leasing still has significant growth potential, even in Europe – but especially in the BRICS and other emerging markets. However, it’s the SMEs, not the big corporations that will generate most of the increase, the lease companies themselves predict.

A

s the economies of the BRICS (Brazil, Russia, India, China, South Africa) are expected to expand – yes, also Russia’s: most observers agree that its current economic crisis, deep as it is, will prove to be temporary – the total demand for fleet purchasing will increase, even if in the first stage mainly from multinationals located in those markets.

Maturing sectors But there is also a relative driver of the demand for full service leasing: the fact that these economies and fleet sectors are not only growing, but also maturing. And not just the BRICS: Australia, Mexico, by extension the rest of Latin America, and especially Turkey keep cropping up on the (wish) lists of emerging economies with serious growth potential for full service leasing, as are Eastern Europe and the Asia-Pacific region, which in the

midterm could generate significant fleet management optimisation needs.

Tax harmonisation But none of the lease companies is neglecting the mature markets of Western Europe, where the leasing sector could grow by as much as 3% per annum over the next few years. Recovery is one reason for this growth, but the ongoing harmonisation of European tax rules is also bound to have a positive impact on industry growth, by promoting centralisation, streamlining and an international perspective on fleet decision-making.

Enduring attraction The inherent reason why the concept of full service leasing still has legs, is its enduring attraction to (mature) customers: from consolidated invoicing and simplified

Although most growth potential for car leasing is outside of Europe, the industry suppliers believe that in Western Europe as well, car leasing can continue to grow by up to 3% per annum.

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budgeting over the outsourcing of risks associated with the management, insurance and maintenance of a fleet to what is perhaps the central attraction: it allows companies to focus on their core businesses.

is fierce and customer expectations are high – at least partial explanations, they think, for the fact that an increasing number of independent leasing companies have retreated from the market. Consolidation will continue in the sector, is the expectation.

Price competition is fierce and customer expectations are high.

That being said, some lease companies see a shift in their customer profile, away from the larger customers, who are ‘structurally defleeting’. The projected moderate growth in Western Europe for full service leasing is expected to come from SMEs.

Continuing consolidation The economic crisis has made everyone suspicious of positive predictions, and lease companies are understandably wary of the projected growth for full service leasing. They understand that price competition

As global markets move closer to each other in terms of the way in which they manage their fleets and work together, and with Europe on the closed-end side and the US using open-end products, it will be interesting to see which model the BRICS and other developing markets developing markets will choose to emulate.

Interesting times! ■

Frank Jacobs & Steven Schoefs

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 international fleet solutions can be found at www.volkswagenleasing.de/internationalfleet

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DOSSIER Car Leasing in Europe I Focus on Turkey

Outsourcing and operational leasing gaining ground TOKKDER, the Turkish Auto Leasing and Rental Companies Association, estimates that last year the operational leasing market accounted for 236,000 contracts in total. The association remains optimistic and forecasts equal growth (10-15%) for 2015, while some of its members are more prudent and estimate a growth of 6-10%. The Turkish market is opening up to outsourcing as acceptance increases and lease suppliers improve organisation.

O

n an estimated total corporate vehicle market of 2 million cars, the share of operational leasing accounts for a little more than 10%. Full service leasing isn’t yet Turkey’s preferred funding method, with an impressive 90% left to convince. However, steady growth has been recorded of recent, and figures have even doubled since 2010, when a mere 117,500 vehicles were under full service leasing contracts. When it comes to cars purchased by operational leasing companies that are members of TOKKDER, a similar increase was recorded, from 53,500 in 2010 to 90,000 in 2013, and nearly 105,000 units in 2014. This means the full service leasing sector accounts for 17,6% of the total new car purchases in Turkey.

Increasing success Companies are beginning to understand the customer benefits – business efficiency, tax benefits, services, human resource saving, time saving, risk protection in remarketing… Large corporates know this, so the focus is on SMEs. Competition is tough, however. Fleet customers are working both with the international and local lessors.

The important thing in the decision-making process of the fleet customers when selecting the leasing company to work with is the service quality and the lease rate.

Overriding obstacles The current economic uncertainty and the elections that have taken place this year in Turkey – which mean corporate clients get more cautious and prefer to delay important decisions until they know exactly what governance and policy will be in place. This might hinder the rise of operational leasing. And the latter will take place mainly as the pool of new customers increases and as leasing companies aware of this potential focus on market development, thus overriding obstacles.

Top 10 Car Leasing Companies 13.0%

INTERCITY DERINDERE

9.9%

HEDEF

9.7%

AVIS

9.5%

ÇELIK MOTOR

9.5%

FLEETCORP

7.7%

LEASEPLAN

6.9%

TEB ARVAL

6.5%

GARANTI

6.0%

ALD

5.0% 16.6%

OTHERS International players

Source: TOKKDER, 2015

rates, combined with restrictions imposed by the Banking Regulatory and Supervisory Agency toward credit transactions, make operational leasing increasing interesting compared with purchasing and finance leasing.

The share of operational leasing accounts for a little more than 10%.

The popularity of the different funding methods is also closely related to economic and legal conditions. The increase in exchange and interest rates, and in passenger car SCT

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Finance leasing has lost its appeal to car fleet customers due to VAT adaptations and only seems attractive when dealing with commercial vehicles as these can’t be leased for now – but TOKKDER is lobbying to change this. Additionally, since the interest rates for loans are lower for the operational leasing companies than for private persons, lower monthly lease fees become more attractive than the cost of purchasing.

Another factor that fosters operational leasing growth is SME sales. Big local and international companies have found their way to outsourcing and car leasing, but SMEs and

Quality matters Today, Turkey counts around 3 million companies with less than 9 employees. Nevertheless, the car leasing penetration with SMEs is increasing. Whereas in 2013 the average fleet per customer still was around 7,5 cars, by 2014 this had decreased to 6,6 cars, which means there are now just over 33,100 clients who have opted for operational leasing. To ensure quality, customers need to provide feedback to the lessors on the service quality and express their expectations in terms of services. Those leasing companies that can provide their customers with brand new services will have a competitive advantage in the market. International fleet customers and larger customers are focused very much on quality – SMEs’ expectations are lower, but these are growing as well. From the perspective of customers the most important thing is the contract being concluded, and everything should be included in this contract, no matter whether it is from an international or a local company. Quality matters! ■ Laetitia Fernandez

© Shutterstock

companies outside the big Turkish cities still haven’t realised what operational leasing’s potential represents. Hence leasing companies are focusing on this huge segment.

To ensure quality, customers need to provide feedback to the lessors on the service quality and express their expectations in terms of services.

For operational leasing requests, please contact:

www.fleetcorp.com.tr

+90 212 323 5454

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DOSSIER Car Leasing in Europe I The future of the fleet business

The next big thing in 11 quotes Fleet Europe asked leasing and fleet management suppliers what the “next big thing” will be for the fleet industry. One trend stands out: the increased use of technology, and in particular of telematics and data, will have great impact on fleet management and TCO reduction. Let us see what else they have to say on this, and other trends the future of fleet holds.

We foresee, among other things, more international policies, with more complex and fast-moving emerging fleet markets getting on the map; further focus on reducing the real cost of mobility and acting on driver behaviour; and product and service innovation allowed by technology that will bring our business much closer to the B2C environment.”

“ Athlon Car Lease International Michiel Alferink - VP International Commerce & Sales

We believe that connected cars will be the next big thing in the near future. We are therefore working hard in order to capitalise on these opportunities so we will be capable to provide our clients with developed services through this new technology.”

“ ALD International Stéphane Renie - Sales & Marketing Director

Thanks to smart data, today we know more than ever how people get from here to there.

Our challenge, and our opportunity, is to use this information intelligently to develop individual mobility solutions that fulfil the needs of our customers.”

“ Banque PSA Finance Remy Bayle - CEO

“ Alphabet International Carsten Kwirandt - Head of Marketing and Business Development

Transparency is critical to truly understanding how well your fleet is or isn’t operating and is absolutely crucial to lowering your TCO. Smart fleets and smart fleet managers should demand that their partners work with them so they can gain true insight into their fleet’s operations through data and data analysis.”

One world means one vision on fleet. But multiple realities mean multiple local fleet tactics on how to get there. We see most value in increasing trust levels between all fleet suppliers, especially when it comes to data sharing and combining strengths to offer an integrated solution to customers.”

“ Fleet Logistics International Vinzenz Pflanz - Chief Commercial Officer

“ ARI Majk Strika - Director of European Sales

Labour relationships are more flexible and our relationships will increasingly be managed with the private individual/employee for cars and LCVs. We see the market moving from a pure B2B focus towards a B2C and even B2E (Business to Employee) focus.”

A big trend will be the focus on the driver rather than the car and his or her needs; thus there will be more focus on driver education and behaviour as the route to further drive down costs leads through increased safety, optimising fuel usage, and increasing usage of alternative mobility products.”

“ GE Capital International Lakshmi Moorthy - Fleet Marketing Leader

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DOSSIER Car Leasing in Europe I The future of the fleet business There is an increasing convergence of vehicles, technology and the data generated by their usage. We foresee a shift from vehicle-centred to driver-centred services. The demand for mobility solutions will continue to increase beyond traditional lease products.”

“ LeasePlan International Jose Luis Criado Managing Director

Significant changes are taking place in the international fleet business as more sophisticated technology is introduced in the cars and connected services are used more widely. Fleet managers and leasing companies will indeed have to consider new car usages and mobility schemes.”

“ Sixt Leasing AG Dr. Rudolf Rizzolli - CEO

In order to bring the reduction of the overall CO2 emission within fleets to the next level we need better support, or other campaigns from the governments.” ■

“ RCI Banque Dominique Prieto - Fleet Director

Telematics solutions are gaining in importance and offer big opportunities. A telematics box in the car transmits service and journey data and increases transparency. The technology could avoid downtimes with intelligent fleet management strategies and reduce fleet costs. Besides this we will see the integration of smart driver apps.”

“ Volkswagen Financial Services Markus Leinemann - Head, Int. Key Account Management

Laetitia Fernandez & Steven Schoefs

How do we achieve global transparency about our fleet cost?

Which acquisition method is most suitable for our car fleet?

Which suppliers and partners should we use?

How can we set up a centrally managed fleet model across Europe?

How do we integrate broader mobility to our fleet?

How do we ensure best in class service to our drivers?

How do we benchmark against comparable fleets?

We Have The Answers.

Call Fleet Logistics today on: +32 2 600 72 22 or send an e-mail to: info@fleetlogistics.com P.48

TURNING YOUR FLEET STRATEGY INTO REALITY ACROSS THE GLOBE FLEET EUROPE # 77

MANAGEMENT I Fleet Europe Award 2015

Benchmark your fleet management efforts Have you ever wondered how your work compares to your peers? Have you ever pictured yourself being acclaimed by 600 international fleet stakeholders for your achievements? This could become reality, by entering the Fleet Europe Awards 2015 (Rome, 19 November). So apply now!

T

he Fleet Europe Awards represent the highest opportunity for international fleet managers to get the recognition they deserve for bringing new solutions and management improvement to the market and to their company.

driver behaviour. It rewards a project or programme that improves the safety of the drivers and limits incidents and accidents related to the vehicle fleet, whilst taking into account cost optimisation.

INTERNATIONAL FLEET MANAGER OF THE YEAR AWARD This is an award that recognises the person or the team having most successfully developed an international fleet management strategy leading to an optimised TCO. This Award category looks at the complete and overall vehicle fleet management approach.

INTERNATIONAL FLEET INNOVATION AWARD This award rewards an innovative project in a specific field of fleet management (car policy, implementation, green, mobility or safety approach, driver satisfaction,…). A project can be rewarded if the jury decides that an initiative of the fleet managers applying for the Fleet Europe Awards 2015 stands out in the field of innovation and contributes to fleet management optimisation on a wider scale. ■

From this year on, the prizes to be awarded will be segmented in order to take into account the size of your vehicle fleet. The jury will reward best practices related to the International Fleet Manager of the Year Award in two different levels: the person or team with responsibility of 1,500 vehicles or more in at least 3 countries on the one hand (category Large Fleet), and the person or team with responsibility below 1,500 vehicles in at least 3 countries on the other hand (category Medium Fleet).

INTERNATIONAL FLEET GREEN & MOBILITY AWARD This award is presented to a company that has successfully implemented a green project or initiative in efficient alternative mobility for its fleet. As Green issues and Mobility issues are so closely interlinked, the organisation has decided to merge these two categories into one and the same Award category. The green and/or alternative mobility project combines ecofriendliness with employee productivity and Total Cost of Ownership optimisation.

Laetitia Fernandez

Get the recognition you deserve: Apply now!

If you are a fleet manager with international responsibilities, and if you and your company have optimised the fleet management policy and processes, you are the ideal candidate for this year’s Fleet Europe Awards.

Apply now!

INTERNATIONAL FLEET SAFETY AWARD This award is presented to a company that has successfully implemented a driver safety project, within the framework of the CSR strategy and with a focus on

Send an e-mail with your contact details to Steven Schoefs, Chief Editor (sschoefs@nexuscommunication. be), to receive the application form.

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MANAGEMENT I Case Study Sodexo

Getting the balance right The world leader in Quality of Life Services, Sodexo serves 75 million customers each day in 80 countries. Over the past decades the group has developed a complete offer of services based on an expertise in over 100 professions. To help Sodexo’s men and women to deliver the best quality of service, Sodexo operates a large fleet including both LCVs and passenger cars for many usages from delivering meals, operating technical maintenance, ensuring buildings security or meeting with clients on sites.

T

he company has recently overhauled its fleet management, with a focus on achieving an optimal balance between central and national responsibilities at European level. Senior European Buyer Didier Julien explains the new system.

The central structure also defines and monitors two central documents: the Standard European Framework Car Policy document with mandatory section and customisable sections at national level and the Standard European Framework Driver Policy document mandatory in all countries.

For some time, Sodexo has been considering how best to optimise its fleet management, with many countries involved (10 countries in Europe with a fleet exceeding 100 cars and LCVs). Until 2015 it had some umbrella agreements with some leasing companies and manufacturers. But most purchasing and fleet management activities were nationally managed. Last year the Group started a European project, involving Supply Management, HR and Finance to optimise its fleet cost and process, and to define the best organisation between European level and national level.

The result of this project was the establishment of a new portfolio of European leasing companies and manufacturers, along with fleet management best practices, guidelines and tools to be implemented. Sodexo also instigated a European framework car and driver policy.

Central responsibilities Since January 2015, Sodexo has been implementing a more centralised model with the main responsibilities split between Europe and the different countries.

In terms of purchasing & supplier management, the central organisation is responsible for negotiating and monitoring framework agreements, supporting local negotiations, and tracking data and supplier performance. It is also involved in fleet management by defining best practices and supporting implementation, and in leading specific projects on fleet cost optimisation.

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Sodexo has three preferred Europe-wide leasing companies, and the contract agreements include interest rate mechanism, pricing mechanism, standard commercial terms, and standard service level agreement.

Senior European Buyer Didier Julien explains: “On the crucial point of the car policy, the countries define and update catalogues in coordination with HR & Finance.”

THE SODEXO FLEET IN EUROPE Sodexo Fleet in Europe Over 6,000 cars & LCVs

Share of LCVs 40%

Countries with more than 100 cars & LCVs 6,000

Manufacturers and cars Sodexo now has European contracts with three manufacturers representing five brands and targets a majority of the orders with the five European brands. Exceptions are made for premium status cars and specific vehicles such as gas-powered ones. In terms of actual models, each country is encouraged to set up a closed catalogue. The width of the choice depends on local HR policy.

National input The individual countries are also responsible for specific tasks within these areas under European guidelines.

In the purchasing domain, they manage vehicle selection & multi-bidding, manage and negotiate quotations (request, analysis), and control invoices.

The green element Committed to enhance environmental best practices within its whole supply chain, Sodexo has set an emissions limit at European level of 120 grams of CO2 per km for any car in the 2015 catalogues, except for family 7-seat car models. This limit will be revised each year to consider available models.

The central structure defines and monitors two central documents: the Standard European Framework Car Policy document and the Standard European Framework Driver Policy document.

And when it comes to fleet management, the countries check with central policies, manage daily fleet operations in relation with drivers, leasing companies and/or fleet management companies. The individual countries also monitor leasing contract yearly updates and lead specific national fleet cost / process optimisation. On the crucial point of the car policy, the countries define and update catalogues in coordination with HR & Finance.

The leasing policy Sodexo has three preferred Europe-wide leasing companies, and the contract agreements include interest rate mechanism, pricing mechanism, standard commercial terms, and standard service level agreement.

In practice, at national level each country has one to three leasing companies from the preferred three, depending on the local fleet size.

The objective is to do better. For example in France, one third of the cars listed in the new policy emit no more than 100 grams of CO2 per km. The company is also encouraging eco-driving to reduce both fuel cost and pollution.

Within this context, a pilot is being conducted in Sweden to value the benefits of using telematics systems to help drivers self-assess and modify their driving behaviour, in order to reduce environmental impact and improve their safety.

Sodexo also has some 100% electric vehicles but, based on the diversity of usages, it is challenging to find drivers whose usage may be compatible with such vehicles.

At Sodexo Headquarter near Paris, 3 shared cars dedicated to Sodexo employees are available in the car park under the building for very short-term rental (from one hour) managed by a specialised company. ■ Tim Harrup

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MANAGEMENT I Case Study ADP

600,000 clients, 60,000 employees, 2,300 vehicles Headquartered on the East Coast of the USA and active worldwide, ADP describes itself as “a global provider of cloud-based Human Capital Management solutions that unite HR, payroll, talent, time, tax and benefits administration.” When all that is turned into facts and figures the results are impressive: 600,000 clients, 60,000 employees, $10 billion in revenue.

T

he numbers that Michael Bieger deals with form part of that ADP statistical mosaic. An 18year fleet veteran, he is the company’s Senior Director of Global Procurement. “We have a mix of a sales fleet, almost exclusively so in North America, and one based on sales function and employee level in Europe”, he says. “At slightly over 1,000 vehicles in Europe and 1,200 in the US, it is perhaps among the smaller of the global fleets.”

Dealing with the trans-Atlantic divide It is said that Americans are the products of a transient, egalitarian, individual culture that rewards risk-taking, while Europeans belong to a traditional, expert-elitist culture that prefers security: secure job, secure healthcare and secure retirement. In his job, Michael Bieger deals with both sides of the trans-Atlantic divide.

“A major difference between the US and Europe, from an operational decision standpoint, is that in the US the Fleet Department makes the decisions on vehicle manufacturer and model”, he says. “These can change yearly depending upon the economics of the market. The car is first and foremost a tool for doing business with the drivers having little say in the decision.”

In Europe, however, he finds that fleet drivers have more influence and input. “Because of this, the process of change involves more people in the decision and this lengthens the decision time of any process markedly.”

Interesting times With his trans-Atlantic outlook, Michael Bieger is well positioned to notice emerging fleet trends. The industry seems to be going through a period of uncertainty

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Michael Bieger, ADP: “I stumbled upon Fleet Management almost 18 years ago through a lucky series of events and have stayed in the industry for its camaraderie, its people, and the excitement that surrounds the automotive industry.”

regarding support for fleets, he feels. “Several major players, both globally and in the US, have, and are, weighing their options in regards to staying in the market”, he says, pointing out that Element Financial Corporation, the Toronto-based equipment finance company, bought PHH Corporation’s North American fleet management business for $1.4 billion in cash last year. “GE has announced their desire to divest by 2018 and until recently LeasePlan was also courting buyers”, he adds.

Just as all Americans are not cowboys and not everyone thinks that McDonalds is haute cuisine, there is no single European culture and not everyone you deal with will be the same.

If you are seeking common ground do so in the fact that we are all ‘car people’.

He then poses this rhetorical question: “Is this a result of continuing pressure by companies to move to adopt the open-end product with residual risk exposure being borne by the client, as is prevalent in North America; a model that has inherently lower margins than in the rest of the world?” His answer: “I don’t know, but these are interesting times to try to steer a fleet’s book of business to the correct lessor, when four years out (from a lease term perspective) your original leases may end up with someone entirely new.”

Cat and mouse and carbon What Michael Bieger calls “the moving targets of individual national CO2 taxation thresholds” present one of the most challenging changes in the fleet industry. “It is an eternal game of cat and mouse”, he says.

“As fleets utilise the best vehicle option for their company and employees in reduced taxation levels, countries lower those very thresholds”, he observes. This is done, he believes, “ostensibly to reduce emissions (from a socially responsible viewpoint) or, (from a cynical viewpoint) to keep government revenue high. Just viewing the recent news with France’s concern with diesel and the Netherlands lowering its thresholds, points to the need to be ever vigilant in this area.”

Hope for the future How to does Michael Bieger view the state of global fleet management? “I see a strong industry that continues to be profitable, though it is beginning to experience

The ADP fleet ADP has a total fleet of 2,300 vehicles of which 1,099 vehicles spread across 12 countries in Europe with the bulk of vehicles being in four countries: France, The Netherlands, Italy and Germany. The company uses four preferred lessors ALD, Athlon, GE, and LeasePlan, and four manufacturer groups: BMW, Daimler, PSA Group and Volkswagen Group.

3 best practices Michael Bieger cites the benefits of transparency, the knowledge that can be interpreted from data and the need to support a company’s clients, as best business practices, not just for the fleet industry but for any industry.

• T ransparency, especially in regard to costs, and the exact drivers of those costs, is much more attainable west of the Atlantic than it is elsewhere, but it is moving in the right direction.

• D ata is readily available throughout the globe though on occasion it must be obtained through multiple systems from some suppliers.

• S upport for clients (Customer Service) is a universal win for all the companies I have had the pleasure of dealing with.

some challenges to its traditional model of business”, he says. “I see those that can best adapt to the changes being pushed by their clients as emerging successfully in the future. Whether those winners will be local more nimble providers or the big global players remains to be seen”, he adds.

Bieger dreams of the development of a single, truly global leasing company that can provide the same service, using the same systems, with the same management reporting structure, and a single P&L that allows for a central budgeting. “Right now”, he says, “lessors attempt to show a single face to the customer, but behind the scenes, the reality is local company needs by country. No one that I know of is there yet. If I am wrong please tell me!” ■

Eamonn Fitzgerald

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19 November I Sheraton Hotel I ROME

The not-to-be-missed international fleet management event

Save the date: 19 November >

LEARN - Fleet Europe Forum

The Fleet Europe Forum provides all delegates with high level and engaging information, market insights and analysis that lead to value creation in corporate fleet management. >

NETWORK - Fleet Europe Village

Networking is at the heart of new business opportunities. Delegates have the possibility to meet and discuss with suppliers and vehicle fleet peers in the Fleet Europe Village. >

BE INSPIRED - Fleet Europe Awards

The Fleet Europe Awards recognise the finest corporate fleet management practices with an international scope.

Participate in the Fleet Europe Awards to benchmark your fleet management and get recognition from international fleet experts! We have 3 Award categories for international fleet managers: International Fleet Manager of the Year (Large Fleet +1,500 vehicles & Medium Fleet up to 1,500 vehicles), International Green & Mobility Award, International Fleet Safety Award.

Fleet suppliers can compete with a new product or service in the category International Fleet Industry Award. And we will elect the new inductee to the International Fleet Hall of Fame.

Become a winner at the Fleet Europe Awards 2015: send an e-mail to Steven Schoefs, Chief Editor, sschoefs@nexuscommunication.be For more information, please visit forum.fleeteurope.com

WWW.FLEETEUROPE.COM

MANAGEMENT I Fleet Safety Corner

Getting smart about fleet safety Company car drivers regularly drive too fast and take more risks than other road users. In the European Union, United States and Australia, car crashes are responsible for between one quarter to over one third of all work-related fatalities. And, in Western Europe, company car drivers are up to 50% more likely to be involved in a collision when compared to other car drivers.

W

ith statistics like these you’d expect occupational health and safety professionals to be all over corporate fleet management like a rash. In reality, the situation is very different.

Academic researchers have found that work-related driver safety is not seen as an operational priority in organisations. “Why the lack of interest?” you may be wondering.

Well, with drivers working outside of the office walls an ‘out of sight, out of mind’ attitude all too often prevails.

Fresh focus on fleet safety With forward-thinking fleet professionals pressing the importance of safety in the TCO equation the sales pitch is thankfully getting simpler. And with savings from procurement starting to dry up, there’s a bigger focus than ever on the ‘in-use phase’ of vehicle costs.

The next frontier for best practice fleet management is firmly focussed on how drivers behave behind the wheel.

This new agenda is not only shining a light on dangerous driving practices and raising awareness of the corporate risks of vehicle use, it’s also showing the sceptics that fleet safety and financial performance are intrinsically linked.

Take safe and fuel-efficient driving for starters. Not only has it been shown to reduce collisions and lead to calmer, less stressed drivers, but it also can lead to falls of 10% or more in fuel consumption. With fuel accounting for anywhere between a quarter and a third of the TCO equation anything that takes a chunk out of the fuel bill has to be of interest, doesn’t it?

With fewer collisions because of better driving behaviours there are more savings to add into the equation too. It’s been

Securing behavioural change in 7 steps Set the scene What’s the fleet safety situation like today and why is it important? Pull together key stakeholders to create a storyboard showing the opportunities and risks, how the issues impact the organisation and what the future could look like. An evidence-based report showing the benefits is what’s needed to get senior management engaged.

1

Get a champion Making safety central to company culture and getting it to permeate the organisation at every level is what counts when trying to create meaningful cultural change. Secure a senior management champion safety, and safety will start to get embedded in company culture straight away.

2

Establish clear lines of ownership Whilst the champion takes responsibility for fleet safety at a strategic level, day-to-day delivery falls to those with the delegated authority to make change happen. Who are they and how do they influence the fleet and safety agenda? Identify stakeholders, and create clear lines of ownership with structures to show who is responsible for what.

3

Understand your audience Changing behaviours isn’t simple. What motivates people to change depends on a multitude of factors. Get to know your audience, consult with behaviour change experts, and you’ll start to understand what influences your drivers in no time.

4

Get the message out It’s time for the fleet safety conversation to be taken out of the office and onto the road. It’s how drivers respond to your initiatives that matters after all. Launch pilot projects to test your ideas, monitor the results and start planning for full scale implementation where there are successes.

5

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MANAGEMENT I Fleet Safety Corner

estimated that each at work car collision costs, on average, R 700 in driver down time, rental costs and insurance excesses. Then there are lower maintenance costs from less wear and tear. The euros and cents to be saved are starting to mount.

It appears that progressive fleet managers are concentrating their energy on behavioural change. Not just for the opportunities it presents to optimise fleet safety, but for the financial rewards and environmental gains that are on offer too. It’s a win-win scenario offering big returns, but changing driver behaviours isn’t an easy affair.

Identifying areas for driver improvement, investing time in behaviour change techniques and training, and then implementing measures that motivate drivers to change requires a great deal of time and commitment. There will be difficulties along the way and the returns may not come immediately, but with what’s on offer, isn’t it about time you took a closer look at what behavioural change could do for your fleet programme? ■

Measure performance Show stakeholders that the plan is working with clear key performance indicators. Keep on monitoring performance, reporting results and supporting drivers during the process of change.

Humans have a terrible habit of going back to their old ways really quickly. Long term support is often required. Walk away too early and all the hard work you’ve put in could be undone.

6

Start again You’re just at the start of the safety journey. The lessons learnt from experiences so far will be useful in the future. Focus in on the new opportunities, keep on sharing results and continue to communicate with stakeholders on how optimising fleet safety supports the delivery of other business objectives too.

7

Jonathan Green

Cars are the same in every country.

So we deliver care. Romania, here we are.

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You can lease the same cars everywhere. That’s why we added ‘care’ to our offer. Care for you, care for your fleet. The car for you, the hassle for us. Our philosophy works. We prove it in the Czech Republic, Hungary, Poland, Slovakia and The Netherlands, where we just won the title: most customerfriendly leasecompany. Now it’s time for Romania: with love from Business Lease. www.businesslease.com

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BUSINESS I International Fleet Industry Award 2015

Give your fleet management solution the visibility it deserves Are you an international fleet supplier? Do you have a ground-breaking, innovative tool, product or service available to help international fleet managers improve their fleet management and meet their goals? Then the International Fleet Industry Award is made for you!

C

an you make a difference by improving cost management, sustainability, mobility, and reporting – to name only a few – for fleets? Give your fleet management solution the visibility and publicity it deserves at international level by entering the International Fleet Industry Award competition.

The International Fleet Industry Award is open to all innovative projects developed by the industry that enable international fleet managers to achieve their goal or improve their fleet management at international level.

ASSESSMENT CRITERIA The jury, composed by international fleet managers and Nexus Communication team members (see below), will assess the degree of innovation and cost-efficiency of the tools, products and/or services that enter the competition, based on the following criteria: • The positioning of the innovative project towards its competitors; • The degree of innovation of the tool, product or service for the international fleet market; • The efficiency of the tool, product or service on the management of the fleet at international level;

• The level of implementation of the innovative tool, product or service in the market; • The impact of the innovative tool, product or service on TCO reduction/control; • The further developments of the tool, product or service.

Based on their evaluations, the jury members will vote for the best new tools, innovative products and services designed to help international fleet manages achieve their goals.

HOW TO APPLY Visit our dedicated website forum.fleeteurope.com/ awards, and download the application form which you will return to Steven Schoefs, Fleet Europe’s Chief Editor (sschoefs@nexuscommunication.be) by 4 September 2015.

Upon approval of your application, the organiser will send back the Award questionnaire and all relevant documentation for the constitution of your dossier – to be completed and sent back by 10 September 2015. The final nominees will be narrowed down to the 6 best projects, which will be defended in front of the Jury via video conference (mid-October). ■ Laetitia Fernandez

MEET THE 2015 JURY MEMBERS Michael Dana , Senior Fleet Manager, FedEx Express EMEA -

International Fleet Manager of the Year 2014 Gregory Bech, EMEA Category Manager Fleet, Johnson & Johnson Hans den Hollander, Manager Car Fleet EMEAR, Cisco Pim De Weerd, Sourcing Specialist, Philips Antal Pálmai, Head of Global Category Management HR, Travel and Fleet, E.ON SE Michael Pohl, Sr Procurement Business Partner Fleet, Microsoft Ben Varey, Global Category Manager – Travel and Fleet, SGS Caroline Thonnon, CEO & Business Development, Nexus Communication Steven Schoefs, Chief Editor, Fleet Europe

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BUSINESS I Škoda

“The start of a new era for Škoda” Does Werner Eichhorn have the best job in the world? Fact is, there’s never been a greater moment to do Sales and Marketing for Škoda. The all-new Superb adds a generous dash of sensuality to the ‘Simply Clever’ brand.

“We expect it to attract a lot of new customers”, says Eichhorn. Especially in the fleet segment – a huge and growing chunk of Škoda’s sales.

Mr. Eichhorn, how important are corporate fleet sales in Škoda’s strategy?

Werner Eichhorn: Very important, and increasingly so: the share of fleet sales in Škoda’s global total rose from 41% in 2013 to 49% last year. This is because of our strong focus on fleet strategy development, helping our dealer network formulate fleet sales arguments. But the main reason is that our corporate clients are very impressed with Škoda – not just by the TCO studies for our new models, or Škoda’s high level of service support, but also by the strong residual values offered by our cars. And of course by the fact that our models fit the car policies of our fleet customers. Škoda is referring to its all-new Superb as a turning point in its history. How important exactly is it for the brand – and for its fleet sales?

W. Eichhorn: The all-new Superb is the start of a new era. The new Superb is our fleet ambassador – our fleet flagship. We sold our previous-generation Superb to no less than 80% of our fleet customers. So we’re confident that the sales of the new Superb will also be heavily oriented towards fleet.

More than that: we think the new Superb will be a game-changer on the fleet market. It’s a giant step forward, in both technology and design. The feedback we’ve received so far is tremendously positive. We expect the new Superb to attract a lot of new customers, especially from the upper segments. Škoda had a great 2014. How will you repeat this success in 2015?

W. Eichhorn: Last year, for the first time in our history, we sold over 1 million vehicles. That was yet another milestone in our model campaign. That model campaign continues in all markets. We recently launched the third-generation Škoda Fabia and Škoda Fabia Combi across most European markets, and in the months to come, we’ll be launching the new Škoda Superb.

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We realise that the economy remains challenging in some markets, and we do expect some headwinds. But with our fresh model line-up and with our production capacity fully available for our new models, so far we managed to stay successful.

Still, specialists expect the European car fleet to grow only slightly this year. Specifically, what are your forecasts for Europe?

W. Eichhorn: The short-term prognosis for Europe is indeed that the recovery in the demand for passenger cars will continue at a moderate pace. In Germany – Škoda’s main European market – we expect a slight increase in demand. Sales in the rest of Western Europe will likely reflect the regional economic situation, so we anticipate a slight year-on-year increase. The same also goes for Central Europe.

This seems to be the year of the SUV. Will there be a Škoda SUV soon? And which other segments will you be investing in?

W. Eichhorn: The central plank of Škoda’s growth strategy is our model campaign – which is both the most far-reaching ever in our history, and well on course to be successful in equally historical terms. As part of that ongoing campaign, it’s possible to envisage extending our SUV range above the current Yeti. We’re also looking forward to the successor of the Roomster. But those are subjects for later.

Let’s turn to connectivity and autonomous driving. How are these buzz words actually driving the business of manufacturers like yourself?

W. Eichhorn: One thing is certain: the automotive business is changing rapidly. Gone are the days that the car was a product of mechanical engineering alone. Today’s customers expect a product delivering a complex mix of services: basic transport, but also the joy of driving; low costs and low environmental impact, coupled with high levels of safety; and last but not least, up-to-date

Werner Eichhorn, Škoda Member of the Board for Sales & Marketing: “Our new Superb is a giant step forward, in both technology and design. We think that the new Superb will have a long-term positive effect on our image and will attract new customers to our brand. ”

entertainment, infotainment and online services on board. We at Škoda understand that we must continue to adjust our company, our processes and our products to the customer changing demands.

How are you doing that?

W. Eichhorn: We started doing this a few years ago, with the new Octavia. It was our first model based on the Volkswagen MQB modular system, which allowed us to introduce a wide range of assistance systems. In 2014, the new Fabia introduced another batch of brand-new solutions – and at an affordable price. And now we have the new Superb, top of its range not just in terms of size and power, but also for infotainment, connectivity and assistance systems.

The trend is clear: solutions introduced in higher segments are being made available in models with a more attractive price-value ration. For example: from June 2015 onwards, virtually all Škoda models can be equipped with Smartlink and Smartgate connectivity infotainment radios, which will enable Simply Clever connections between smartphone and car. ■ Frank Jacobs

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SCOPE I Technology & Innovation

The ultimate mobile device is the car Electric and autonomous-drive technologies are reducing the automotive industry’s barriers to entry. Inspired by Tesla, the visionaries of Silicon Valley are preparing to challenge and disrupt a business based on steady evolution.

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he Code Conference at Rancho Palos Verdes in California near the end of May brought together some of the best-known names in the digital world to discuss the impact of new technologies on businesses. Brian Chesky, CEO of Airbnb, was there and so was Evan Spiegel, CEO of Snapchat.

Also present was Apple’s senior Vice President of operations, Jeff Williams.

During a question-and-answer session with participants, Williams was asked about what Apple might do with the legendary reserves of cash it has built up over the years. Audience member: “Are you guys going to do something with your $100 billion or are you just going to keep buying back shares?” Jeff Williams: “Well the car is the ultimate mobile device, isn’t it?”

For all those who want to believe that Apple has a top team of automotive designers and engineers hidden somewhere in its headquarters at Cupertino, that short, enigmatic response was enough to convince them the company is working on a revolutionary vehicle. Moreover, industry analysts who follow Apple point out that it has a tradition of dropping hints about future products.

In 2013, Tim Cook, the company’s chief executive, spoke about wearable technologies at an event organised by the same team behind the Code Conference. “I think the wrist is interesting,” he said. “The wrist is natural.” A year later, Apple presented its Watch to the world.

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Eric Schmidt, Executive Chairman, Larry Page and Sergey Brin, CEO and Co-Founder, respectively, of Google in a self-driving car.

The Google fleet of SUVs uses Android Auto While the “Apple Car” is a rumour, the Google Self-Driving Car is a fact. A quick Internet search shows that the information giant began to develop its own autonomous vehicle in 2009 and it had the prototype assembled by Roush Enterprises, a supplier of automotive engineering services based in Michigan, which fitted it with technologies from Bosch, Continental and LG. Later, the Google project team equipped a range of different cars with self-driving software, including the Audi TT, the Toyota Prius and the Lexus RX450h, a hybrid crossover SUV. But

by May this year, the Google fleet had been reduced to one marque and it now consists exclusively of Lexus SUVs. May was an important month for the Google Car in many ways. Early in

the month, the project team presented data collected from tests it had been conducting in the US. “Over the six years since we started the project, we’ve been involved in 11 minor accidents (light damage, no injuries) during those 1.7 million miles of autonomous and manual driving with our safety drivers behind the wheel, and not once was the self-driving car the cause of the accident”, says Chris Urmson, director of Google’s self-driving car initiative.

Given the world’s appetite for sensationalism, those 11 accidents became instant headlines, which meant that the other important automotive news from the search engine received far less attention when it was delivered in San Francisco on 28 May at Google I/O, the annual developer conference. It consisted of two words: Android Auto.

SCOPE I Technology & Innovation The platform war inside the car Five minutes into the two-hour keynote address, Google’s Senior VicePresident of Products, Sundar Pichai, said, “Android Auto: We announced this last year as an open automotive alliance… Volkswagen just announced this week its entire line up for 2016, in Europe and North America, will be based on Android Auto.”

Pichai added that the Hyundai Sonata had become the first car to integrate Android Auto and he said that Chevrolet would offer Android Auto compatibility in 14 models.

For those unfamiliar with the product, Android Auto is a telematics standard that works by projecting an Android smartphone onto an incar display after the device has been plugged in via USB. It offers drivers control over telephony, SMS, apps, web search, navigation and music playback. While the interface can be used with a touchscreen display, voice command is emphasised to ensure safe driving.

Funnily enough, Apple CarPlay does all that, too, but with devices running the iOS operating system. The infotainment platform shows content from a driver’s iPhone on the dashboard and Apple lists carmakers such as BMW, General Motors, Honda, Fiat and Ford as “committed partners”. Oh, and the Hyundai Sonata also comes with CarPlay

A titanic struggle for the future of the automotive industry lies ahead.

installed. These are the early days of the in-car platform wars and no one is quite sure who is going to win, so alliances are prudent and exclusive partnerships could be dangerous.

in 1995 to 73 percent in 2014. In other words, when the information technology market is saturated Google can be a player in transport, for which there will always be demand.

OEMs and the coming titanic struggle Right now, it is in the best interest of automakers to offer both platforms to customers as they try to figure out how to deal with the threats posed by Apple and Google, who have made no secret about wanting to embed themselves intimately in people’s lives.

Longer term, CarPlay and Android Auto will allow drivers to sidestep the dashboard and instantly access their own media and navigational settings in shared cars by connecting directly to the two platforms with their devices. Advantage Silicon Valley.

Reports that Apple was recruiting engineers from Tesla for an electric car project named “Titan” began to emerge late last year. Since then, the “Titan” codename has appeared in numerous news outlets such as The Financial Times and Bloomberg.

In Greek mythology, the Titans were gods of amazing strength so Ford, Mercedes-Benz, Toyota and all, you have been warned. A titanic struggle for the future of the automotive industry lies ahead.

Why are the nerds and the geeks so interested in the car industry? One can imagine executives at legacy automakers asking that question in the hope that the challenge might go away. It will not, and here’s why: The population penetration of mobile phones grew from 1 percent globally

Fleet managers and drivers will need to follow these developments carefully because if the world’s most valuable brand believes that the car is the ultimate mobile device, a lot more than the internal combustion engine will be phased out in the coming years. ■ Eamonn Fitzgerald

Patent watching: Ford With the developed world making the transition to a “knowledge economy”, it pays to keep an eye on patents and other forms of intellectual property, such as copyrights and trademarks. The Ford Motor Company unveiled a “Smart Mobility Plan” earlier this year to take company into the future, and recent patent applications show that autonomous vehicle design is part of that strategy.

Patent application number 20150137564 published in the US in mid-May describes a Ford vehicle with two rows of bench seats that face each other while in autonomous mode, rather like the seating arrangement in the futuristic Mercedes-Benz F015 autonomous concept vehicle.

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Patent application number 20150137564 illustrating a Ford vehicle with two rows of bench seats that face each other while in autonomous mode.

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SMART MOBILITY I Mobility Plans

User manual for company mobility plans Whether voluntary or obligatory, mobility plans are established at company level and involve the entire staff.

These plans represent a well thought-out strategy and their objective is a change in behaviour. We take a look round at best practice with specialists in this domain.

T

he phenomenon is becoming generalised.

More and more companies are being persuaded to design and put into practice a mobility plan. Some go it alone, others prefer to call on specialised enterprises.

“A large fleet of vehicles or a lack of parking spaces often constitute the catalyst for starting”, observes Grégory Falisse, a mobility expert at Traject, a Belgian firm specialising in mobility management. “The legal and regulatory constraints allied to, for example, building or building extension permits, are also motivating factors for companies”, adds Giorgio Giovannini, Director-General of Mobilidée, a Swiss enterprise based in Geneva, which also has a location at Grenoble in France, and an expert in drawing up mobility plans.

Guillaume Lucas, director of the mobility Inddigo, a sustainable development advice and engineering company with a presence in the major cities of France, completes the picture with: “A move to new premises or a new geographical location also pushes companies towards looking at mobility”.

The experience of these experts demonstrates that there is no ‘typical’ profile nor specific sector which is more likely to have a dynamic approach towards mobility. It would appear, however, that a company size of 200 or more employees is generally suitable for obtaining meaningful results.

The stages “The study phase is essential”, underlines Grégory Falisse. “This approach generally involves three departments within the company: facility management, environment and human resources. To which should ideally be added representatives from communication, legal and an ordinary member of staff. It is not necessary to cross all the t’s and dot all the i’s. And it is also important to set up action quickly – quick wins – based on a relevant diagnosis which is as light as possible.”

According to Guillaume Lucas (Inddigo), “the real cost of business travel is often poorly appreciated by companies.”

The usage level of a vehicle fleet is an essential element for good management.

Guillaume Lucas For Guillaume Lucas, a thorough, reliable and objective diagnosis is based on several elements: making use of all available data (where the personnel lives, the number of trips, the offering in all modes of transport), undertaking studies and enumeration (mobility, parking), observations on the ground (accessibility to sites) and listening carefully (talking to the management, services, social partners…).

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SMART MOBILITY I Mobility Plans

A parking space has an economic value ; therefore, it is an asset to the company.

Giorgio Giovannini year. And by reallocating the spaces each year according to demand, the company is obliging its workforce to regularly face up to their own mobility problems.”

Current trends “Electric bikes, remote working and shared mobility, which reflect similar practices such as music, houses, in our society, are much favoured by companies”, observes Grégory Falisse.

Giorgio Giovannini (Mobilidée): “A mobility plan has to evolve, it is a change process to be nurtured daily.”

A mobility plan needs to be scalable ; it’s a change process that needs to be nurtured on a daily basis.

Nevertheless, te study phase is decisive. Such a plan is set up for an extended period of time, with requirements from the HR and Finance departments. This needs to be highlighted as much as possible.

A range of actions A programme of action points will result from all this, which may include a wide range of propositions: ride sharing, car sharing, dynamic car-parking management, bikes, public transport, shuttles, remote working… Putting them into operation usually depends on the location, the means made available, the objectives and also the company culture.

“It is important to set frameworks, incentivising or not, for the members of staff, and which include the notion of equity”, explains Giorgio Giovannini, quoting the example of a parking space. “I start from the principle that it has an economic value: it is therefore of benefit to the company to use it as such, by making it payable, for example.

These revenues provide the means to set up alternative services or subsidies for those staff members who do not benefit from a parking space. When you think about it, offering a parking space is a form of subsidy to car drivers. If it is worth  100 per month, it is important to compensate the non-drivers to the tune of  1,200 a

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Amongst the latest trends, Guillaume Lucas also points to company groupings. “Bringing together needs and issues leads to collective approaches. To make this a reality, it is often necessary to negotiate with a local administrative body and/or an association of companies.”

Giorgio Giovannini has observed the same phenomenon for the past 3 or 4 years: “This idea of zonal grouping provides the critical mass which is sufficient to generate economies of scale.”

The usage level of fleets Companies with large fleets represent a specific profile in terms of company mobility. “They bear witness to large differences with regard to their level of maturity in the domain”, remarks Guillaume Lucas. “It is, for example, of no use offering a sharing platform to a company which does not know its travel profile.” And he goes on to explain that a large number of companies have a very limited vision on the usage of their vehicle fleet:

How much does it cost?

This is clearly a fundamental question which generates many responses! There is one observation which everyone shares: the financial aspect should not act as a barrier to setting up a mobility plan. Everything depends on the objectives and the action points to be put in place. Providing parking spaces for bikes, for example, cannot be compared to setting up an internal bus shuttle! The budget has to be in relation to the savings generated (reducing investment in parking infrastructures, decrease in the car fleet…)

Electric bikes, teleworking, and ride-sharing are popular with companies.

Grégory Falisse “The usage level is a vital factor. What is the usage schedule? How can we get past the annual mileage which is sometimes very low? How can we manage peaks with alternative modes (car-sharing, bikes…)? A reflection on all this can also involve the engine types of the fleet. Who is driving? When? For what purpose?

An overall mobility plan will require recourse to management software systems (ride-sharing and multi-modal platforms, data processing software etc), developed internally or already available on the market.

Within this context, what should we make of multi-modal solutions offered by the leasing companies? “There are increasing numbers of them but they are not always compatible “, observes Grégory Falisse. “They are thus not always understandable for mobility managers.”

Evaluation is indispensable All of the evaluation indicators are not necessarily translatable into financial terms, but the numerical data is quantifiable. “Take for example the number of parking spaces saved, accidents, absence from work or time saved by not being in traffic jams, or inter-company travel”, indicates Grégory Falisse, for whom the final indicator is modal spread.

“The real cost of business travel is often poorly appreciated by companies”, observes Guillaume Lucas. “It is a cost centre to which few of them react, although the

Electric bikes can get things moving The success of classic bikes obviously depends on the location of the company (a largely flat environment) and the culture of the company (for example in the Netherlands, bikes are part of everyday life). By contrast, electric bikes represent an effective alternative to the car, is the experience of our contributors. They attenuate issues relating to distances and topography, making them more suitable for a wider range of staff members. This mode of getting around is currently the subject of many company trials.

Grégory Falisse (Traject): “This change process is in fact about changing people themselves.” potential savings are numerous: avoiding unnecessary travel, better sizing of budgets, a more thorough follow-up of contracts, less time wasted, less fatigue…”

And there are advantages which are difficult to evaluate, such as company image, the ability to recruit and the impact on health.

The human factor The greatest lever for setting up a company mobility plan is probably the personnel… “This is in fact a change process within the human being”, indicates Grégory Falisse. “A mobility plan requires assistance in the change of behaviour”, adds Giorgio Giovannini.

Communication therefore plays a determining role in order to make the reasons behind these measures understood, measures which are as positive as they are coercive. Generally, great use is made of the classic channels of the company, and of campaigns launched by the public authorities.

It is obviously clear that positive indicators also play their part in convincing the more sceptical, which is why the effectiveness of the measures has to be proved. ■

Frédéric Van Vlodorp

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The new Hyundai i30 and i40

Business travel redefined.

The striking new Hyundai grille signals a significant upgrade in the world of business travel. Both cars offer refined performance from engines that deliver an optimum balance of power and efficiency. There’s also the availability of a 7-speed dual-clutch transmission, heated and ventilated front seats, Bi-Xenon headlamps and other user-friendly technologies.

Factor in low cost of ownership, and even your finance department will appreciate the upgrade. The Hyundai i30 and i40. Expect more.

Hyundai i30: Fuel Consumption 3.6 - 7.3 l/100 km, CO2 Emissions 94 - 169 g/km. Hyundai i40: Fuel Consumption 4.2 - 7.5 l/100 km, CO2 Emissions 110 - 176 g/km.

The 5-year unlimited mileage warranty is valid in all EU member states + EFTA. Warranty is subject to local terms and conditions. For taxi or rental usage model specific restrictions apply. For more information, visit www.hyundai.com/eu