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NEXUS COMMUNICATION - FLEET EUROPE #79 - PERIODIC MAGAZINE - OCTOBER / NOVEMBER 2015 - DEPOSIT OFFICE LIÈGE X

OCTOBER / NOVEMBER 2015 - # 79

WOLFGANG REINHOLD, PRESIDENT OF CARA “We need to focus on Transparency and Standardisation”

ROME

THE EUROPEAN CAPITAL OF FLEET MANAGEMENT 18 to 20 November 2015

The current low-interest, low-inflation environment in most of Europe is great for the fleet industry. We have economic growth, low fuel prices and stable residual values.

But this won’t last. Economy is cyclical. A few external factors are likely to impact our business.

How will the ECB and the Fed set their interest rates? Will OPEC, Russia and other oil suppliers turn off the tap? Will China’s economy crash? How strict will new emissions rules be after Dieselgate?

A lot of unknowns, one certainty: the car fleet business will evolve.

Our annual Fleet Management Trends dossier shows how Connectivity and Telematics are becoming an integral part of fleet management. Autonomous and self-driving cars will speed up the change from TCO to TCM. Are you prepared for the fleet management of the future? Find the answer in Rome, on 18 and 19 November. At an IFMI Session on 18 November, the International Fleet Managers Institute

EDITORIAL

As fleet management changes, so should you

will focus on the TCO equation when implementing alternative powertrains. That same day, the second Remarketing Forum will zoom in on Retargeting for ongoing and efficient remarketing. At the Fleet Europe Forum on November 19, high-quality content dovetails nicely with high-quality networking. Main theme for this annual industry highlight is The inevitable transformation of international fleet management. Come for the Networking Village, our biggest yet, and stay for the panel discussion with former International Fleet Managers of the Year and a Car Leasing debate with the CEOs of Europe’s six biggest lease suppliers. In the evening, we celebrate. The Fleet Europe Awards are an excellent occasion to showcase our industry’s achievements and innovations. More on the nominees and the jury in this Fleet Europe magazine.

See you in Rome!

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

Welcome to Rome, this year’s Fleet Capital of Europe

CONTENT

I DOSSIER I

IAA 2015: Tomorrow in your fleet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.6 Low-cost versus Premium

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

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The future outlook of TCO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.16

The pressure on diesel is on . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.20 A look at smart insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.22

Autonomous and self-driving cars: an introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.25

DOSSIER I Fleet Management Trends New developments in today and tomorrow’s vehicle fleet management.

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The TCO equation for self-driving cars . . . . . . . . . . . . . . . . . . . . . . . P.29 The convergence between leasing and rental

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Top 10 Remarketing trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.34 Remarketing and the launch of CARA . . . . . . . . . . . . . . . . . . . . . . . . P.36

Fleet Managers and Fleet Management trends . . . . . . . . . . P.38

SPECIAL I Industry Expert Knowledge Sharing

Tenth anniversary for International Fleet Barometer

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I SPECIAL I Industry Expert Knowledge Sharing: Special Corporate Vehicle Observatory . . . . . . . . . . . . . . . . . . . . . . P.40

I MANAGEMENT I Behavioural change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.45 Discover all nominees of the Fleet Europe Awards

MANAGEMENT I Fleet Europe Awards 2015 Discover all nominees for this year’s Fleet Europe Awards.

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BUSINESS I Interview

Cross-interview with Martin Jahn and Knut Krösche, Volkswagen

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

I BUSINESS I Gero Goetzenberger, Daimler Fleet Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.51 Martin Jahn & Knut Krösche, Volkswagen Group . . . . . . . P.52 Paolo D’Ettore, Nissan LCV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.54 ARI and the transparency challenge . . . . . . . . . . . . . . . . . . . . . . . . . . . P.56

I SMART MOBILITY I The security question and the connected car

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Case Study with Ralf Wessel, AGCO.

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Steve Higgs and the Global Fleet strategy of GM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.62 AGCO Case Study: Balancing regional and national differences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 64

COLOPHON

Virginie Emonts – Assistant vemonts@nexuscommunication.be

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

Contributors: Frank Jacobs, Jonathan Green, Tim Harrup, Dieter Quartier, Jonathan Manning, Frédéric Vanvlodorp, Michaël Vandamme Experts: Robert Boscari (Nexus Communication), Tony Elliott (Nexus Communication), Professor Peter Cooke (University of Buckingham), Graeme Banister (Frost & Sullivan) Cover: ©Shutterstock - Pictures: ©Shutterstock - ©ThinkStock Layout: Hungry Minds - info@hungryminds.be

David Baudeweyns - International Sales & Business Development dbaudeweyns@nexuscommunication.be Sigrid Nauwelaerts - International Key Account Manager snauwelaerts@nexuscommunication.be

EDITOR

Daniel Savigny - International Key Account Manager dsavigny@nexuscommunication.be

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

Céline Gilson - Assistant cgilson@nexuscommunication.be

www.fleeteurope.com - www.fleeteurope.com/shop

Aline Verpoorten - Assistant averpoorten@nexuscommunication.be

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I SCOPE I

SCOPE I

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

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FLEET EUROPE

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 # 79

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DOSSIER

I Fleet Management Trends

For your future car policy The 2015 Frankfurt Motor Show boasted no less than 210 world premieres. The primary focus of Europe’s biggest car show was on connected and automated driving, along with electric mobility and the further optimization of conventional drive trains. But here we take a look at new models that can enter your car policy of tomorrow.

1 - Alfa Romeo Giulia After a 4 year absence from the European D-segment, Alfa Romeo is finally ready to introduce its 159 successor. La Giulia drives the rear wheels and was developed to be a true driver’s car.

3 - BMW 225xe Active Tourer The successful compact MPV gets a plug-in hybrid powertrain based on the 218i’s 1.5 turbocharged three cylinder, which is assisted by an 88 PS electric engine. As its xe moniker suggests, this 225 drives

1 - Alfa Romeo Giulia 2 - Audi A4 Behind its conservative looks Audi’s new D-segment model boasts a lightweight structure (saving 120 kg), a Virtual Cockpit with a 12.3” high-res TFT screen and enhanced engines, the most economical of which (2.0 TDI Ultra) claims an average fuel consumption of 3.7 l/100 km (95 g/km CO2).

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all four wheels, yet it emits only 49 grams of CO2 per kilometre (NEDC).

4 - BMW 7 Series Not your average fleet car, but this Bavarian battleship introduces technology that will undoubtedly trickle down to the lower vehicle segments.

One of its most interesting features is that the driver can exit the vehicle in front of a narrow parking spot and let the car park itself.

2 - Audi A4

3 - BMW 225xe Active Tourer

4 - BMW 7 Series

DOSSIER I Fleet Management Trends

5 - Citroen Cactus M This Mehari inspired crossover concept gives a foretaste of an affordable wear-and-tear proof open sports utility vehicle. The inflatable canvas roof doubles as a tent, while the neoprene seat covers and draining foot wells allows the interior to be hosed down.

6 - Ford Galaxy focusing on even more comfort and usability, the fourth generation of Ford’s 7-seat people carrier is sprinkled with lots of Mondeo dust.

It offers even more interior space, a revamped infotainment system, the latest in active safety technology and more economical powertrains.

7 - Infiniti Q30 The fruit of the partnership between Renault-Nissan and Mercedes, Infiniti’s very first C-segment hatchback is a cleverly camouflaged A-Class. It should therefor feature the same chassis and powertrains, the most modest of which are developed by Renault (dCi).

5 - Citroen Cactus M

6 - Ford Galaxy

7 - Infiniti Q30

8 - Jaguar F-Pace After having showed its face as a support vehicle during the 2015 Tour de France, the feline mid-size XE-based SUV officially revealed itself in Frankfurt. One of its remarkable features is its Activity Key, allowing you to safely leave your keys in a locked vehicle.

9 - Kia Sportage 4 centimetres longer than its popular predecessor, the new Kia Sportage offers more interior space and a bigger boot (491 litres). More importantly, it features enhanced interior plastics, an online infotainment system and the possibility to charge telephones by means of induction.

10 - Lexus RX The model which gave Lexus its credentials in the European premium SUV market shows its new edgy face to the European public. Its more rigid structure provides better handling and improved protection. The new RX also features a full suite of active safety features.

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8 - Jaguar F-Pace 11 - Mercedes GLC As the rectangular shapes of its predecessor (GLK) were not generally applauded, the Swabian carmaker plays it safe with this C-Class derived mid-size SUV. Flawless finish, a greatly improved cabin and boot space, highend safety and infotainment systems.

12 - Opel/Vauxhall Astra This highly anticipated ‘fleet blockbuster’ reveals itself both in its 5 door and Sports Tourer livery and weighs up to 200 kg less. OnStar, Opel’s in-car connectivity and assistance service provides a Wi-Fi

11 - Mercedes GLC

14 - Renault Mégane

12 - Opel/Vauxhall Astra

13 - Renault Talisman hotspot, vehicle remote diagnostics, automatic crash response and stolen vehicle track & trace.

15 - Skoda Superb Combi

13 - Renault Talisman After a career of 8 years, the Laguna dies a silent death and reincarnates in something far more premium looking.

The Talisman goes upmarket and shares much of its technology with

the also reinterpreted Espace, including automated parking and a tablet interface for the connected infotainment system.

14 - Renault Mégane Renault’s mass-market hatchback clearly draws inspiration from its larger siblings Espace and Talisman, with its sharp headlights, four-slat radiator grille and oversized emblem.

This fourth generation sits on a 28 mm longer wheelbase and will be available with the latest in connectivity.

15 - Škoda Superb Combi Volkswagen’s Czech daughter reveals the piano-moving estate version of its flagship model and at the same time introduces its thrifty GreenLine versions. These are powered by a 1.6 TDI producing 120 PS and limiting its consumption to 3,7 l / 100 km, so that its theoretical range increases to 1,780 km.

10 - Lexus RX

9 - Kia Sportage

16 - Volkswagen Tiguan: The second generation of Volkswagen’s compact SUV sits on a 8 cm longer wheelbase and weighs considerably less than the outgoing model. Engines and transmissions are carried-over from the Golf. The sat nav uses live traffic data, the infotainment system is smartphone-enabled. ■ 16 - Volkswagen Tiguan

Dieter Quartier

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DOSSIER I Fleet Management Trends

Low-cost versus Premium: The pincer movement Can new car manufacturers secure a slice of the fleet market at the budget and premium ends of the spectrum?

With the right support and infrastructure behind them, yes they can.

T

here was a time when fleet choice lists were almost as restrictive as Henry Ford’s famous line, “any colour… so long as it’s black.” Company cars were mainstream models from mainstream manufacturers, a parc of small and medium hatchbacks, saloons and estates that satisfied business needs and met driver expectations.

In just a few short years this scenario has fundamentally changed, driven by three principal factors. Firstly, traditional fleet manufacturers have rapidly expanded their model ranges to introduce ‘niche’ vehicles, from SUVs to MPVs to quirky cross-over designs. Secondly, fleet focus on wholelife costs has shown these new model ranges to be highly cost effective. And thirdly, the growth of full service leasing has allowed employers to relax choice lists and allow drivers to select from a broader range of cars with similar lease rentals.

The result is a European fleet market where one-time outsiders now enjoy a substantial foothold. Nissan, Hyundai and Skoda among others have established themselves as fleet players – the Nissan Qashqai has risen as high as fifth best-selling fleet car in the UK, which would have been inconceivable 15 years ago.

The fleet sector is too big for any car manufacturer to ignore.

With no major domestic manufacturer, the UK fleet market may be more open than some other countries, but there’s little doubt that across Europe established market leaders are facing competition at both ends of the spectrum.

At the entry level Dacia is securing significant retail market share, the Volkswagen Group has revealed plans for a new low-cost brand in 2018, and Datsun’s re-emergence in emerging markets raises the opportunity of a return to Europe. At the prestige end of the market, marques like Infiniti, Jaguar, Land Rover and Maserati are actively building fleet services to target corporate customers, including full service lease products via their dealer network.

The Jaguar XE is spearheading the manufacturer’s goal of global fleet sales accounting for 25% of its business by 2020.

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Dacia has a range of low cost vehicles to woo corporate fleets.

Put simply, the fleet sector is too big for any manufacturer to ignore. Dataforce figures for the first half of 2015 reveal that the increase in fleet sales outstripped the rise in private car sales by 11.2% compared to 6.1% across the five major markets of France, Germany, Italy, Spain and the UK. “Fleet customers have become more important and increased their share compared to January-June 2014 in all five markets,” reports Dataforce. “In Germany, France and Italy their share for the first six months was higher than in all previous first half years.”

Pro’s and cons of low cost vehicles • Low acquisition costs mean low finance costs.

• Depreciation from a low starting price is likely to be competitive.

• Many budget cars offer generous room and specifications.

• Low cost brands can make an important statement to customers, especially among public sector fleets BUT • With no trading history, the residual values of new brands are uncertain.

• Drivers may object to unfamiliar brands.

• Fleet support both nationally and at dealerships may not be as well developed as longer established brands.

• Maintenance costs and reliability are uncertain.

The Ryanair example Securing a slice of this business is not, however, as simple as Kevin Costner’s Field of Dreams philosophy, ‘Build it and they will come’. New players have to persuade fleet managers of their vehicles’ cost effectiveness as well as woo drivers. Few drivers are going to object to a Maserati or Range Rover if they can afford the tax bill, but fleet managers still need convincing of the cars’ cost effectiveness. At the other end of the scale, fleets might greedily eye the savings available from low priced cars, but they ignore the remuneration element of a company car at their peril.

There are precedents, however; business passengers have migrated from national carriers to low cost airlines in their millions – Ryanair estimated last year that 25m of its 86m passengers would be flying for business not leisure – and with government and corporate budgets under constant focus, the opportunity to reduce fleet costs will at least be explored.

However, a low acquisition price is no guarantee of a low cost of ownership, which poses a challenge for budget brands. How do they persuade leasing companies and end user fleets that their residual values will be robust? Depreciation from a low starting price will help, but unless there’s a growing dealer network prepared to create demand for secondhand cars, the fleet industry’s residual value risk takers are likely to be anxious.

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DOSSIER I Fleet Management Trends

Controlling supply to meet natural new car demand, rather than buying market share with discounts will help, but it’s a delicate balance. Consumer demand for secondhand models depends to a great degree on awareness, and the shortest cut to getting ‘bums on seats’ is daily rental, rarely the most profitable of sales channels or the ideal strategy for protecting residuals.

From a driver perspective, the good value presented by low cost brands in terms of generous specification and interior space helps to compensate for the unfamiliar badge on the grille. The march of no-frills supermarkets like Aldi and Lidl across Europe proves that consumers are receptive to a value message, albeit with national differences.

As Chris Newitt, Jaguar Land Rover UK sales director, said: “We will make sure that the short-term business for XE and Discovery Sport never goes above 20 per cent of the next year’s volume. The contract hire and leasing market is now very wary indeed of premium manufacturers overpushing volumes and damaging residual values as a result. We are committed to exclusivity - and will bring stability as a result.”

Among premium new players, meanwhile, it’s fascinating to see prestige marques adopt the language and services of mainstream manufacturers as they bid for fleet business.

The dealer network Fleet success will also depend on a dealer network that can supply, service and maintain vehicles at locations convenient to customers. Patchy coverage makes nationwide penetration difficult and is more likely to attract local rather than national fleet business.

But networks will grow - manufacturers like Nissan, Honda, Toyota, Kia and Hyundai were all new to Europe once. In addition, the majority of the new players have a distinct advantage in their ability to cooperate with sister marques.

Dacia with Renault and Infiniti with Nissan benefit from an existing infrastructure that includes a fleet sales force, the backing of a finance house to fund fleet sales, especially to smaller fleets, and the potential to share a sister dealer network for parts distribution and servicing.

Pro’s and cons of premium vehicles •T hey offer drivers a wider choice in this sector of the market.

• They can be powerful recruitment and retention tools.

• Limited supply means low depreciation.

• Fleet maintenance packages guarantee service and maintenance costs.

BUT • A limited number of dealers can make after-sales support difficult to locate.

• Greater risk on residual values compared to marques with a long history of serving this market.

“From insurance, servicing and depreciation values to fuel consumption and CO2 emissions, our stringent targets ensure our vehicles’ running costs are highly competitive,” says Jaguar Land Rover.

Likewise, Maserati eschews automotive passion for practicality with Maserati Fleet Maintenance, to provide fixed cost maintenance for contracts as long as five years and 160,000km.

Are such measures enough to convince fleet managers that their total cost of ownership rivals established premium brands like Audi, BMW and Mercedes-Benz?

The new entrants certainly seem up for the fight. At the end of last year, Jaguar Land Rover announced a major investment in retailers, corporate sales staff and digital infrastructure to boost its global sales from fleet and business from 17 per cent of sales to around 25 per cent by 2020.

Ken Forbes, Jaguar Land Rover global fleet and business sales director, said the strategy was, “crucial in order for JLR to grow,” after six years of success in the retail market.

There is a clear belief within JLR that business drivers are eager for fresh choices in the premium car sector.

As economies recover, the role of a company car as a relatively low cost form of remuneration to recruit and retain staff favours a fleet policy of wider choice.

Such developments don’t mean that Dacia is about to oust Volkswagen or Infiniti overtake BMW in their respective segments of the market, but will Dacia, Infiniti, JLR and even Maserati appear on more fleet choice lists in years to come? With the right support and infrastructure behind them, the answer is surely yes. ■ Jonathan Manning

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DOSSIER I Fleet Management Trends

The TCO fairy tale coming to an end History shows the fleet market to be cyclical, so where should fleet managers focus to future-proof their operations?

The answer is ‘optimisation through proactive fleet managent’.

I

t will come as little consolation to under-pressure fleet managers that the business environment has rarely, if ever, been so favourable. Interest rates are at an historic low; oil prices are tumbling; discounts on new cars are highly competitive; and the depressed new car market of three and four years ago means a shortage of used cars, boosting residual values. Add into the equation improved vehicle reliability and longer warranties, and it’s almost the perfect scenario for fleets.

Against this background, the question facing fleet operators is which market conditions will change first, and what strategy decisions will future-proof fleet costs for the next five to 10 years. In two of the most significant areas, the prospect of cost increases seems limited. Financial forecasters keep moving back the date of any interest rate rise for both the Euro and Sterling, and foresee only modest increases when rates do go up.

Likewise, a glut of oil is depressing petrol and diesel prices.

In September, the influential global bank Goldman Sachs forecast that in 2016 U.S. crude would fall to $45 a barrel from $57, and Brent to $49.50 from $62, due to oversupply in the market and concerns over China’s economy.

The faltering Chinese economy is also one of the reasons behind the ferocious competition between car manufacturers for European business, expressed in significant fleet discounts. Yet the car fleet industry is notoriously cyclical, which means one, two or even all of these beneficial market conditions won’t last forever. The question is how fleets prepare for when the situation changes.

Look forward One way is to underspend on the fleet budget, so there is a financial cushion in place if inflationary pressures do take hold, suggested Michiel Alferink, Athlon’s vice president international commerce and sales. In this way, fleets, “don’t have to disappoint their employees or their finance department some time from now,” when rising interest costs put certain vehicles out of reach of drivers, or push fleet department budgets into the red. But he also advised fleets to beware of leasing companies offering cut-price introductory prices that will inevitably rise during a contract.

“Our aim is to be absolutely transparent, and to avoid surprises,” said Alferink.

Looking ahead, he recommended that fleets start specifying the very latest driver assist technology on new cars, such as park assist, adaptive cruise control, and even self-parking systems. By avoiding collisions employers avoid both the insurance costs and lost employee downtime, while improving their health and safety practice. “So it’s appealing from all angles,” said Alferink. In a win-win situation, this cutting edge technology will reduce vehicle damage patterns, helping to keep insurance costs at current or even lower premiums, and at the same time increase residual values.

“What you order as an option now will be standard on cars in four years time, which means the residual value will be a bit higher because the car will have the features of a car that people expect in 2019,” said Alferink.

The buyers of second hand electric cars require technology that calculates the future lifespan of the car’s batteries. (c) Transport for London

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Any measures that help to shore up residual values are worthy of investigation, because there are mounting deflationary pressures on used car prices. Not only will

Specifying options like Park Assist on today’s new cars will enhance their residual values. today’s rising new car sales numbers alter the supplydemand balance in the used car market in a few years time, but there’s also the danger that manufacturers will bid to substitute lost sales in China with private car sales in Europe by offering extremely generous discounts and finance packages. This could convert traditional used car buyers into new car buyers, warned Peter Cooke, emeritus professor of automotive management, at the University of Buckingham.

“I can see the depreciation situation changing,” he said.

He also issued warnings about how the accelerating cycle of new car launches makes the forecasting of residual values more difficult.

“Which of those new vehicles coming on the market is going to be good and which is going to be not so good?

Historically if you had a product that’s been popular for three, four, five years, then it’s going to be good in the used car market as well. Now when we’re getting products in that are just going to be there for one or two years, you’re really not having that much time to decide whether that is something for your fleet. The whole concept of risk management is changing,” he said. “Leasing and fleet management is becoming more an exercise in risk management than vehicles management because vehicle reliability is exceptional and most are covered by a warranty.”

Today’s beneficial market conditions won’t last forever.

“The rate of change of models, even compared to 10 years ago, is quite scary,” said Professor Cooke.

By shortening model replacement cycles, manufacturers deny fleets the chance to accrue historical data on demand for a particular car. This in turn makes it far more difficult to forecast residual values.

From reactivity to proactivity At ALD International, however, deputy CEO Pascal Serres sees major opportunities for efficiency improvements in fleet maintenance as the fleet parc becomes increasingly connected via telematics systems. Managing and integrating data feeds from individual vehicles will present a major challenge, but it also holds huge potential for leasing companies and fleets to get on the front foot.

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DOSSIER I Fleet Management Trends

Different external influences - geo-political, economic and technologic - will drive the speed of change in the car fleet business.

The impact of external influences The pace of change in the European fleet market is set to accelerate under the impact of external influences, says Peter Cooke, emeritus professor of automotive management, at the University of Buckingham.

He cautions against seeing Europe as a single entity and instead to focus on individual markets, each facing their own pressures. In a bid to boost employment, national governments will seek to boost the trading prospects of their domestic vehicle manufacturers, suggests Cooke, but how far they can do this within EU fair trade rules is a point for debate.

Likewise, how will manufacturers react to falling sales in the once-booming Chinese economy?

Will excess production be repatriated to Europe?

“What’s going to happen when exports to the Far East are going to be eased back because the Chinese don’t want them any more?” asks Cooke. “Does that mean new car prices will be dropped and if so, in which markets. What’s that going to mean in cross-border trade?”

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Peter Cooke, emeritus professor, University of Buckingham He sees further deflationary pressures as manufacturers move to counter the phenomenal increase in vehicle operating lives (“vehicles are good for at least 100,000 miles (160,000km) plus you are getting increased warranty to protect them”).

“The OEMs are countering that by changing models every year,” said Cooke. “If you are shortening replacement cycles, that could give a leasing company or a major fleet operator all sorts of interesting problems. The whole concept of risk management is changing.”

This is amplified particularly in the field of new power trains, where Cooke is cautious about the prospects for electric vehicles.

“I think electric vehicles are probably the next big stage, but despite massive subsidies that have been available on electric vehicles they are still not taking off in large numbers,” he said. “Will we go through hybrid as the intermediate stage? I’m not sure. There’s a fair number of hybrids around, but have they taken off as much as they might have.”

“The two big issues with electric vehicles is the battery life [range] and more importantly the long-term life of a battery which we really don’t know about, and of course the implications on residual values. What is the true life of a battery? Is it going to change significantly by the way a car is first driven or how often it’s charged or how it’s charged. The technology is moving so quickly and until it starts settling a lot of canny buyers will say ‘we’re not going to buy an electric vehicle’.

“We have got to implement technologies that tell you the continuing life of a battery. So when you buy a used electric car you can plug in something that tells you how many miles or how long the batteries have left,” he said.

No longer will fleets have to rely on manufacturer’s standard service schedules for routine work, when accurate data is available that gives the actual time that maintenance is required.

“If we can control all the information in a car we can have an optimisation of the maintenance costs. We can be proactive, rather than waiting for a driver to call us,” said Serres.

This blackbox technology could also underpin a fundamental change in the way that organisations operate their fleets, moving from a one vehicle per driver model to a mobility solution. It’s an issue that requires deep clarity of purpose.

“Our customers in Europe need to be very clear about their priorities in terms of a company car, and whether it’s a perk car or it’s a car they need just for a job.

Generally speaking it’s a bit of both,” said Serres.

For perk cars, organisations don’t necessarily need to select the cheapest and most efficient cars because these are a form of remuneration. But for cars whose principal priority is as a working tool, there is an opportunity for fleets to work towards optimising the ratio of drivers to cars, in a future where one car per driver may no longer the most efficient solution.

“Customers need to work on optimisation, with several cars for several people and the technology that will allow them to provide a car to someone when he needs a car,” said Pascal Serres.

“For the long term the priority is on mobility, it’s switching from a model where we have one car per driver to a model where we have a pool of cars and a pool of drivers and we have a transportation means and a communication means to make everything work efficiently. We are working on combining the train with the car with the plane, but we must not forget that the company car is an element of salary.” ■ Jonathan Manning

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DOSSIER I Fleet Management Trends

Diesel under a dark cloud Car buyers and corporate fleets have fallen in love with diesel cars, but political backing could be about to come to an end. The diesel emissions scandal with Volkswagen in the US will only increase the discussion. It’s time to find out what’s going on and how corporate fleets could be impacted.

O

ver half of new cars sold in Europe today are diesel. With corporate fleets diesel is by far the most popular fuel choice. It’s a fuel that’s been lauded for its total cost of ownership credentials and held aloft for its low carbon profile.

To promote diesel cars favourable taxation regimes has been created by governments, and rising sales have come as a result. Everything was going according to plan - until now.

What’s the issue?

Questions about the cleanliness of diesel have come to surface - specifically its impact on local air quality. The Mayor of Paris has said she wants to ban diesel cars from the city by 2020. It’s a big statement to make. But don’t think for a moment that the problems are confined to Paris.

Poor air quality in urban areas is a Europe wide issue. It’s estimated to cause 400,000 premature deaths each year.

A policy u-turn could be on the cards. And it could have a huge impact on corporate fleets.

Wasn’t diesel supposed to be the answer?

Diesel was supposed to be good choice for the environment though, wasn’t it?

Road transport is the largest contributor to NOx emissions in Europe, and the second largest for particulate matter; the pollutants that cause poor air quality. Diesels impact on air quality is worse than that of petrol engines and, on top of that, new research suggests that the much talked about carbon benefits could have been exaggerated too.

The future The issue of poor air quality isn’t going to go away any time soon. It’s a big problem and one that the public and politicians are increasingly concerned about.

As cities seek to smarten up transport provision, boost services, cut congestion and improve air quality, expect to see major conurbations curb the use of polluting vehicles through taxation.

Blanket bans on diesel vehicles are unlikely, but you can expect to see minimum standards in the near future. If the car is not clean enough, then it’s going to be allowed in.

Simple as that.

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It almost as if everyone forgot - or choose to ignore - issues about local air quality.

Air quality concerns Diesel is at the centre of a storm. The claims by the industry that modern diesel engines are as clean as petrol cars have come under intense scrutiny. ACEA (The European Automobile Manufacturers’ Association) says that NOx limits for diesel cars have been reduced by 84%, and particulates by 90% over the last 15 years. With the release of EURO 6 standards this September the gap between petrol and diesel is closing fast, so what’s there to worry about?

The numbers aren’t clear cut. A new report by the International Council on Clean Transportation (ICCT), a respected independent body providing unbiased scientific analysis to environmental regulators, concluded that on-road NOx emission levels of modern diesel cars are, on average, about seven times higher than the limit set by the Euro 6 emission standard.

How can that be possible? Well, it all comes down to the testing. EU figures are taken from tests in laboratory conditions, whereas the ICCT based its finding on real world, in use, performance.

Does the difference sound familiar? Fleet managers know all about manufacturers reported figures on fuel efficiency using data obtained in laboratory conditions.

The ICCT figures suggest that the same is happening with pollutants too.

Discussion over what happens when the current testing procedure, the New European Driving Cycle, or NEDC is replaced with the Worldwide Harmonized Light Vehicles Test Procedure in 2017, is going to be intense.

Carbon emissions and climate change Diesels carbon credentials are being questioned too. Whilst diesel has a lower carbon content than petrol, diesel cars, in practice, tend to be heavier and more powerful than petrol vehicles. Added together this has wiped out any potential carbon saving according to European Environment Agency.

The industry counters this by arguing that when like-for-like models are compared, diesels emit noticeably less carbon up to 15% according to ACEA.

The pressure on the environmental friendliness of diesel as preferred fuel is increasing, although its cost efficiency for fleets can’t be denied.

Asleep and unprepared One fleet expert whose been worrying about diesel for some time is Tony Elliot. “It is as if the industry had fallen asleep on the issue,” he says. Having awoken from its slumber it’s quickly set out its stall to defend the modern diesel engine. The Presidents of ACEA, the Association for Emissions Control by Catalyst, the European Association of Automotive Suppliers and FuelsEurope, have written an open letter to the European Commission pointing out that political measures restricting modern diesel engine would undermine existing efforts to cut carbon emissions.

because it has invested so heavily in the wrong technology.”

A new website, www.cleandieseltech.eu, is another part of the PR offensive from the automotive industry to press the positives about modern diesel engines and fuels.

Greg Archer from Transport & Environment, a Brussels based think tanks isn’t surprised at the intense lobbying. He thinks that “the car industry is fighting to keep selling diesel

Any policy decision will have huge impacts for the fleet industry. If legislators start to discriminate against diesel then the TCO equation as we know it will be turned upside down he says.

Dieselgate On 18 September 2015 the United States Environmental Protection Agency issued a Notice of Violation of the Clean Air Act to Volkswagen Group. The OEM had programmed their model year 2009 through 2015 turbocharged direct injection (TDI) diesel engine so that US standards nitrogen oxides (NOx) emissions were met only during laboratory emissions testing. NOx emissions during driving were up to 35 times higher. Dieselgate was a fact. Volkswagen admitted that more than 11 million cars were involved.

The exact scope and impact of Dieselgate is still unclear, but that the scandal will influence the perception of diesel, with both consumers and authorities is crystal clear.

An update on Dieselgate can be found on www.fleeteurope.com

Transparancy please Fleet expert Elliot says there’s an urgent need for transparency. “What’s the truth? We need an open and honest debate, based on scientifically sound facts. Only then can we have a meaningful conversation about the direction of travel,” he says.

“Residual values for diesel will plummet overnight,” says Tony Elliott. The impact on the bottom line of leasing companies could be huge too.

“If I was a leasing company I’d be looking to protect myself against a change in policy today.” he concludes.

Corporate fleets love affair with diesel could be about to come to an end, and with it the principles of the TCO methodology that are used in fleet today. It’s a topic that’s going to run and run, and the impacts on the fleet industry are going to be felt well into the future. ■ Jonathan Green

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DOSSIER I Fleet Management Trends

Insurance:

Spotting danger signs New technology is intervening to stop company drivers from having collisions, and is helping fleet managers to identify higher risk drivers and vehicles.

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mart safety systems are giving fleets an opportunity to make a step-change in their risk profiles and insurance costs. A combination of both passive and active safety management measures holds out the prospect of a double-digit decline in accident figures as well as lower fuel and maintenance costs.

If this new technology initially seemed closer to science fiction than real world motoring, early research indicates its gains could be even more substantial than initially hoped. Simply by specifying autonomous emergency braking (AEB) on all new company vehicles, fleets could cut the frequency of rear-end crashes by 38%. That’s the figure calculated by Euro NCAP and ANCAP (the independent safety bodies for Europe and Australasia) in a study of real world insurance data from five European countries and Australia. AEB uses radar, lasers and optical sensors to identify other vehicles, and will automatically apply the brakes if the driver does not respond in time, in order to avoid a collision. It’s effective at speeds of up to 50kmh, and can lessen the full impact of a crash at higher speeds.

Andrew Miller, President of Euro NCAP said: “Clearly, at this level of effectiveness, low speed AEB is potentially a hugely important active safety technology.”

He would like to see governments take a lead by ensuring AEB is mandated across all new vehicles joining their fleets, and private car drivers are already seeing lower insurance premiums for vehicles fitted with the technology.

Long-term exercise Fleet insurance operates in a different fashion, however, premiums calculated on claims history typically over a three to five year period, with some adjustment for risk management focus. Consequently, it will take time for the full benefits of AEB to filter through, especially with a mix of old and new company cars on fleets.

“If there is a significant proportion of vehicles equipped with this technology in a fleet and that sort of collision is

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common, that is going to show up very quickly on their loss history,” said Andy Price, practice leader EMEA, Zurich Risk Engineering Europe.

He expects the development of the autonomous vehicle, equipped with AEB, lane departure warnings, and even parking and reversing controls, “will help reduce the overall collision rate in Europe plc because it will eliminate some driver errors that would normally result in a collision occurring.”

Price issued a cautionary note, however, of the danger that this new technology might potentially lull drivers into a false sense of security where they start to take greater risks. As driver error remains by far the largest cause of accidents, fleet managers need to remain vigilant to their drivers’ behaviour behind the wheel.

Once again, rapidly developing technology has the capacity to be a useful tool in managing this risk. In-vehicle telematics vary from smartphone apps to GPS-enabled black boxes with accelerometers and cameras to record every metre of every journey, capturing incidents of harsh acceleration and braking and sharp swerves, as well as journey times and driver hours. Dedicated software then allows fleet operators to benchmark driver performance and identify those drivers most in need of additional training.

Driver behaviour centric insurance In the private insurance market, policies are starting to emerge where the premium is based on both the mileage and driving style of the driver, but Price sees little opportunity for a pay-per-mile product for major fleets.

“For a large fleet the loss history is such a significant indicator of the likely risk then there would be no benefit in going down that route,” he said. “But in the future there may be a cross-over between a personal insurance policy and a small fleet policy, for say five vehicles, when it may be attractive.”

The sophistication of telematics may be increasing, but the concept is far from new, and Eric Scrayen, director

Automatic emergency braking detects danger ahead and has the ability to brake a vehicle to standstill to avoid a collision automotive & logistics CEE-CIS region, Aon Risk Solutions, suspects that the market may have already plateaued.

“The majority of the large fleet owners who were convinced of the positive effect of it have already installed it or at least trialled it to see if it benefits them,” he said. “So I do not see any spectacular further developments in mature markets unless the price of telematics goes down.”

What does it mean?

• Autonomous emergency braking: Radar or lasers track the road ahead and apply the brakes to alert the driver or even to stop the vehicle completely, in order to avoid a collision, at speeds of up to 50kph. In a 12-month study of 7000 Volkswagen Golf VIIs, third-party injury claims have proved to be 45% lower than equivalent small family cars, thanks to the new model’s AEB. • Lane departure warning: In-car technology warns the driver if the vehicle is drifting out of its lane.

• Drowsiness detector: Sophisticated monitors analyse a driver’s driving style and if this alters significantly due to fatigue, the system issues an alert.

Any moves among larger fleets to self-insure, however, could see greater openness to telematics, “because from that moment they will be more motivated for loss prevention initiatives,” added Scrayen.

But no matter how smart and innovative the new technology, the fundamentals of an effective fleet insurance policy remain the same, said Scrayen, firstly to avoid claims, and then when they do occur to manage the claims process as efficiently as possible.

“Loss prevention results depend on the motivation of senior management and drivers, firstly through behaviour and coaching (eg. with driving courses or virtual driving courses) ,” said Scrayen. “Secondly, with car policies where driving behaviour is positively or negatively motivated with a bonus or a penalty. Then you have loss prevention initiatives to support such like telematics, track and tracing, automatic braking and driving assistance, and all of these technologies will for sure help.

“Once an accident has happened it’s important to minimise the cost of it with professional claims management and effective accident and repair management.” ■

• Telematics: in-vehicle recorders track a vehicle’s location and speed, as well as incidents of harsh acceleration, braking or cornering, which may be evidence of a higher risk driver.

Jonathan Manning

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ADVERTORIAL I Opel Astra and Opel OnStar

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The new Astra Sports Tourer will follow soon and offer your fleet even more space inside. And on top of this, Opel will offer a foot operated power tailgate, which lets the driver not only open the trunk with his foot movements, but also close it. This in combination with the keyless entry system helps the driver to load and unload his goods without the slightest hassle.

And all this with OnStar The new Astra is the first new Opel launched together with the personal connectivity and service assistant Opel OnStar2. This ground-breaking technology makes driving more comfortable and above all more relaxed.

•2 4-Hour Emergency Call Service •A utomatic Crash Response •R oadside Assistance •S tolen Vehicle Assistance •S martphone App •V ehicle Diagnostics •D estination Download1 •H igh-speed 4G LTE Wi-Fi Hotspot2 Opel OnStar identifies the driver’s language. And privacy is built-in too: a push of the Privacy Button, and the current vehicle location is masked. ■

• OnStar, the drivers personal assistant & guardian angel Driver Wellbeing: • Ergonomic seats with massage function for the driver Driver Experience: • Latest infotainment with up to 8 inch touchscreen, embedded Sat Nav, DAB and Smartphone projection • OnStar in car 4G LTE hotspot for up to 7 devices • Increased interior room, especially rear seat legroom.

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To summarize Stylish, with luxury features and powerful engines the new Astra will amaze your user chooser. Functional, offering maximum safety features together with best in class running costs, the Astra is your perfect choice for your functional fleet. In both cases, with OnStar you can be sure to best care for your employees.

The new Opel Astra: Perfect for business, perfect for leisure, and fun to drive too!

Opel’s wide dealer and service network means that as fleet manager you will have total peace of mind – wherever you are.

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An embedded Opel navigation unit is required for this service.

Please check www.Opel.com for a list of countries currently covered.

DOSSIER I Fleet Management Trends

Increasingly clever cars cause confusion Cars are moving from mechanical objects controlled by humans to mobility solutions managed by super computers.

With big change happening quick-smart, we’ve pulled together a handy guide to help you get to know differences between autonomous and self driving cars.

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ars are set to change more in the next twenty years than they have past hundred and thirty. If you’re completely baffled when you look under a car’s bonnet you’re not the only one. The old days of tweaking with this and playing with that are well and truly over. Today, to optimise a car’s engine, another computer needs to do be deployed to secure the work can be done correctly.

Our cars host an increasing array of smart features and new functionality. Cameras, motion sensors, global positioning systems (GPS) and other types of whizz-bang technology are transforming the humble car into a super-computer before our eyes.

Machines will control everything and human interaction will be unnecessary.

What is it that makes self driving cars possible? A crucial set of components come in the form of autonomous car technology (also known as Advanced Driver Assistance Systems (ADAS)).

Self driving cars and autonomous cars are being used interchangeably when there’s a big difference between the two.

Watch your language Change is coming so quickly, and on such a scale, that the words used to describe the different types of technology on offer are often being used incorrectly. Car manufacturers are increasingly eager to clear up the confusion. They want us - the consumer - to understand what’s going on and where things are heading so we can help to make change happen.

So, let’s press the pause button and take a look at the terminology we’re using to describe the technology that’s in - and coming to - our cars.

Self driving cars and autonomous cars, two phrases commonly used when talking about the evolution of automobile, are being used interchangeably (even by us at Fleet Europe) when, in fact, there’s a big difference between the two.

Say hello to self driving cars So, let’s start by taking a look at self driving cars. The car that does it all by itself. A vehicle equipped with self driving technology will look different to cars that are on the road today. It won’t need a steering wheel. The accelerator, brake and clutch pedals will be redundant. And the handbrake is something that belongs in a bygone era.

Autonomous car technology includes things like lane assistance, traffic jam assistance, adaptive cruise control, parking assistance and pedestrian detection systems.

A self driving car takes these types of features and fuses them with other smart pieces of technology to create the ultimate machine. A car knows where it is, what’s around it and what it needs to do to get from A to B all by itself.

Turning to the autonomous cars Technology that assists or supports a driver do something is called autonomous car technology. Is the difference that exists between self driving and autonomous cars now starting to become apparent? Let’s continue.

When will it be on the road?

Take a look around you and you’ll see plenty of examples of autonomous driving tech, but when will self driving cars come to the streets? That’s the big question.

Well, take your pick from these predictions. ABI Research forecasts self-driving cars will become a reality by 2020 and says 10 million will cruise onto US roads each year by 2032.

Research and Markets reckons ABI research is being a little optimistic. It thinks the first cars will come out in 2025.

IHS Automotive reckons 2035 will be signal the start, whilst Navigant reckons that by the same date 75% of light duty vehicle sales will be self drive. What date do you think it’s going to happen?

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© Daily Republic

of Google cars and you’ve got level 3 summed up. A few cars with this type of autonomous tech are on the roads today in a handful of countries, but don’t think you can buy one. We’re in the testing phase.

The technology in Google’s car with limited self driving automation is reported to cost $150,000.

Autonomous cars look like the automobiles that are on the roads today. The reason for this is simple. It’s because they’re already on the roads. In the future, in certain circumstances, autonomous cars might take over the task of driving completely, but only for short periods. They won’t remove the need for a driver and the car looks pretty much like it does today. There’s a steering wheel, seats face forward and there are pedals for the driver to press.

Where are we now?

Helpfully, the National Highway Traffic Safety administration (NHSTA) in the United States has compiled a formal classification system that’s describes the levels of autonomy and when a car becomes self driving.

Here’s a run-down of what technology is under each classification.

Level 0 is called No-Automation: Do you remember the old days? The time when the vehicle was under the complete control of the driver at all times. Well, this is Level 0.

Level 1 goes by the name of function-specific automation: At this level automation is present in one or more specific control functions. It could be electronic stability control or pre-charged braking systems. If you’re familiar with this type of tech, then you’re already driving an autonomous car.

Combined function automation comes in at Level 2: Moving up a level, at least two primary control functions need to come together to relieve the driver of some responsibility when behind the wheel. Take, for example, adaptive cruise control in combination with lane centring.

This type of tech is again already available in cars in the higher segments.

Limited self driving automation arrives at Level 3: In certain conditions drivers may pass over control to the car, but there’s always someone behind the wheel. Think

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Level 4 is where self driving comes into play: The car does it all - apart from deciding where to go that is. It’s means cars operating on the roads that are both occupied by passengers and unoccupied. It opens up endless possibilities and could turn mobility business models upside down. Today level 4 tech is mostly confined to the test track bar a few pilots, but for much longer?

Commercialisation: The arrival of clever(er) cars Autonomous technology has already proved its worth. If you want to see the evidence just look at how many cars are already fitted with the tech. The price of Level 1 and Level 2 automation is falling and is now starting to move from the premium segments and into mainstream models.

Thilo Koslowski, vice president and analyst at Gartner, believes that the evolution from automated to self driving cars is already well underway. “Significant investments are being made by individual companies and the entire automotive industry to accelerate the pace of innovation and do actual prototyping on public roads,” he says.

Opportunities and Obstacles ost: The tech in Google’s level 3 car is reported to cost C $150,000 alone. Will consumers be willing to pay the price. At that price, it’s a no no. Prices will fall, but by how much? And when?

Software: Navigation and sensors accuracy needs to improve. GPS is good to metres at the moment, but it will need to be accurate to millimetres. There’s no room for error.

Computer says no. Self driving cars will be designed to follow the highway code, but will they be willing to break the rules like human drivers? Google’s car has got stuck at cross roads because it sensors demanded that all other cars must have stopped before it moved. Drivers, eager to get going, were always edging into position. It sent the car’s software into a spin.

Human touch: A self driving car may make a technically safe manoeuvre, but could it cause passengers to have a cardiac arrest! What’s safe and what feels safe are two different things.

Time : If you don’t need to drive just think what else you could do? Hours of productive time suddenly become available, but could motion sickness become a problem?

Everything is optimised: Fuel use, maintenance and driver time are all optimised. A computer will create the perfect - in use - TCO equation. Will it be enough to offset costs in other areas?

A survey by Gartner concluded that of over 6,000 consumers, nearly two-fifths of U.S. and German car owners are interested in purchasing a self driving or partially autonomous vehicle as their next car.

It’s certainly a good business to be in. The global autonomous car technology market is expected to witness a compound annual growth rate of over 10% through 2035, according to Research and Markets.

But is the public ready for high end autonomy and self driving cars? A Gartner survey last year found that of over 6,000 consumers, nearly two-fifths of U.S. and German vehicle owners are interested in purchasing a self driving or partially autonomous vehicle the next time they shop for a vehicle.

Equally as many vehicles owners would even consider giving up traditional vehicle ownership for having ondemand access to getting an autonomous vehicle whenever they need one.

The legal framework for Level 3 autonomous cars and Level 4 self driving cars is moving in the right direction too.

An amendment to the United Nations Convention on Road Traffic, which removed the rule that stated every driver shall be able to control his vehicle, means computers can now take control.

Level 3 autonomous cars have been on the roads in the US for some time. In Europe, France has announced that public testing is coming in late 2015, whilst Germany, Italy, Belgium, Sweden, Switzerland and the United Kingdom are amongst a host of European countries that are busily participating in, or preparing for, Level 3 autonomous car and Level 4 self driving car tech trials and pilots.

Get ready for the future Barclays Bank believes that if all the legal and regulatory issues can be ironed out, and the costs of self driving cars fall, then vehicles sales could fall by 40% as “robotaxis” change ownership dynamics.

The transformative impact that automation and self driving cars could have on car business is now coming into view. With increasing levels of autonomy and the self driving car on the horizon, fleet managers need to keep their finger on the pulse.

The changes that are happening could be about to turn the TCO and fleet management as we know it, on its head. ■

Jonathan Green

The legal issues Accidents happen : Where does responsibility fall if two self driving cars are involved in a collision? The lawyers are going to love taking it on. It’s a legal question that needs clearing up.

Privacy: Who is going to own the masses of data that Level 3 and Level 4 cars spew out? Legions of marketers will want to get their hands it. Government’s too. Personal privacy is a massive discussion we’ve yet to have.

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DOSSIER I Fleet Management Trends

Autonomous cars and the changing face of the TCO Today the Total Cost of Ownership equation means everything when it comes to demonstrating car fleet value, but whether it’s the right methodology to use in a world dominated by autonomous cars is a discussion worth starting.

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o demonstrate excellence in fleet management there’s no better way of benchmarking performance than using the trusty Total Cost of Ownership (TCO) equation. There’s no ‘one right way’ of calculating the TCO, but there are essential elements that can’t be excluded from the equation. Fuel management, maintenance, insurance and residual values are examples of such elements.

They must be evidenced in the TCO equation if it’s to be considered as best practice.

In the next 15 years autonomy will move up a gear, but tomorrow’s TCO equation will keep pace with the changes,” he adds.

The fluid and flexible nature of the TCO means it’s well equipped to respond to the evolution of autonomous driving and the arrival of self driving cars

The importance of each element is relative. Its significance depends on what is important to a corporation’s stakeholders. But more and more autonomous cars hitting the streets and self driving vehicles on the horizon, will the TCO be able to cope in the future? It’s time to take a closer look.

TCO: The essential elements Fuel management: Attend any serious fleet event and fuel efficiency and driver behaviour will be slap bang in the centre of the agenda.

With the arrival of the rising levels of autonomy this is could be about to change.

Increasingly autonomous cars will see drivers taking their hands of the wheel and foot off the pedal. Athlon’s Michiel Alferink believes this will evolution will start to offer fleets unbeatable fuel efficiency.

What’s happening now You’re not going to wake up one day and find that the roads are packed with autonomous vehicles and self driving cars. “Autonomous driving will not come over night. It will “sneak” into the car via more and more refined driver assistance systems,” says Dr. Christof Engelskirchen, Managing Director, Automotive Intelligence and Consulting, EurotaxGlass’s.

It’s a good point and one that Michiel Alferink, Vice President, International Commerce & Sales, Athlon International, agrees with. He believes the journey towards full autonomy is an evolution rather than a revolution. “Over the past 15 years cars have become increasingly autonomous and the TCO has moved with the times to remain relevant.

“Autonomous driving will sneak into the car via refined driver assistance systems,” says Dr. Christof Engelskirchen of EurotaxGlass’s.

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DOSSIER I Fleet Management Trends

Maintenance: A car that fine tunes its engine automatically, drives itself in the most optimal fashion and books a trip to the garage to get repaired, could slash maintenance costs, fleet administration and vehicle downtime.

Athlon’s Michiel Alferink says autonomous cars could also advise drivers on which routes to take and the best times to travel. This has the potential to reduce distances travelled and, in turn, the costs of wear and tear.

It’s all good stuff, but Mr. Engelskirchen reminds us that the technology needed to for autonomy could lead to increases in service and maintenance requirements in other areas. “With potentially delicate technology to maintain, repair and replace, the costs of maintenance could actually increase,” he warns.

Michiel Alferink of Athlon International believes autonomous driving vehicles will offer fleets important fuel efficiency.

“An autonomous car will not just drive itself to optimise fuel efficiency, but will also fine-tunes its own engine to boost its performance,” he says. The days of educational campaigns to promote fuel efficient driving could soon be over. Eurotaxglass’s Christof Engelskirchen has put some numbers around the saving potential, based on a typical fleet car with a TCO of 10,000 EUR per year.

“Considering that around 15% of the TCO represents fuel costs, and assuming that circa. 25% fuel consumption reduction can be achieved via autonomous driving, 100% autonomous driving would reduce TCO by circa. 400 EUR per year,” he believes.

In the medium-term, even in most optimistic scenarios, Engelskirchen reckons a car would rarely drive autonomously for more than 50% of the time. This means pocketing 200 EUR in savings per car.

Insurance: Insurance costs, which account for around 10% of the TCO, are always in a fleet managers line sight.

Autonomous and self driving cars could confine collisions to the history books. So are we about to see insurance premiums plummet?

No.It’s not that simple. Not all cars on the road will be autonomous to start with. Accidents will still happen and damage to potentially delicate and expensive autonomous tech could mean a rise in premiums. Little knocks could end up having big costs. “It’s conceivable that a bump in a parking lot could see sensors needing to be exchanged and re-calibrated,” says Christof Engelskirchen. Autonomy isn’t available on the cheap. And insurance premiums will reflect this.

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Taxation: Does anyone have a crystal ball handy? How autonomy impacts taxation regimes is unclear. To take increasingly autonomous cars from the drawing board and onto the roads may lead to tax breaks, but they won’t last for long. On the other hand, it doesn’t make sense for governments, that are backing the tech, to penalise such cars by hiking the taxation take.

A situation that’s revenue neutral is a safe bet. But, we’ll have to wait.

Residual values: Another tough topic to tackle. Eurotaxglass’s expects to see small scale adoption of autonomous technologies in the next 5 - 10 years and, during this phase, the new technologies used to achieve automation will drive up prices and lease rates. “Under the assumption of a similarly high % residual value, the loss in value in absolute terms will be higher than that of a comparatively equipped vehicle without these systems,” says Christof Engelskirchen.

If he’s is right, will savings in other areas make up for the shortfall? Well, it all depends on what happens with other the elements of the TCO. What’s next?

The fluid and flexible nature of the TCO means it’s well equipped to respond to the evolution of autonomous driving and the arrival of self driving cars.

The pace of change may move up a gear, but there’s no reason why the TCO equation can’t excel in the future.

Balancing all the different elements of the TCO to find what’s best is what’s done today. It’s how fleet managers earn their money. The TCO equation will do the same in the future too. ■

Jonathan Green

DOSSIER I Fleet Management Trends

The convergence between leasing and rental Fleet and rental companies in Europe are more and more converging on the ‘grey area’ between short- and longterm rentals. They are colonising the area between them with mid-term products. Tim Albertsen, Deputy CEO at ALD International, thinks convergence will increase, but customers should still choose their providers wisely. “They must ask themselves: How flexible do we want to be?”

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our typical rental company will provide vehicles on a short-term basis – daily, weekly or at a stretch, monthly. And your regular lease company will offer long-term contracts, for anything between two to five years. But that neat subdivision increasingly is a picture of the past, as both rental and lease companies are moving in on the increasingly popular 12- to 24-month market with mid-term products. Both sectors are responding to changes in the market – job-hopping, fixed-term contracts and increasing number of ex-pats have swelled demand for vehicles that are available longer than a few weeks, but with contracts running shorter than a few years.

“We see these patterns change in both consumers and corporate clients, mainly in our more mature markets”, says Tim Albertsen, Deputy CEO at ALD International – one of the leasing companies making inroads into the ‘grey area’ between leasing and renting. His past with short term rental speciaist Avis gives him a unique perspective on both sides of the equation.

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What signals is the market sending you exactly?

Tim Albertsen : Customers have a need for products that are more flexible than the ones that are on the market today. One symptom is the fact that carsharing is taking off in a big way among private consumers. As a product, carsharing is closer to the DNA of rental companies than leasing companies.

Tim Albertsen, ALD International: “Companies don’t necessarily want to be tied to vehicles for 3 to 5 years anymore. They want more flexibility.” Hence the existence of mid-term car rental and lease concepts.

How is that?

T. Albertsen : When I was still on the road selling products for Avis, rental products would be negotiated with the Travel department of a company, while products tending more towards leasing would be dealt with by Finance or HR.

That division is still to a large extent in place: rental cars are seen as a part of Travel, leasing cars are seen as part of production and compensation package – hence the involvement of Finance or Human Resources.

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This is why carsharing is closer to rental companies. ALD therefore has no interest to develop carsharing products for private customers. We do offer pool vehicles to some of our corporate customers who want to develop such a formula, and we could do this in partnership with rental companies.

What do you see as a typically fleet-company based approach to mid-term products?

T. Albertsen : Companies don’t necessarily want to be tied anymore to vehicles for 3 to 5 years. They want more flexibility. We at ALD are offering a few tools to provide more flexibility.

For example, in the Netherlands and Belgium, we’re offering Switch, a formula that allows the customer to change vehicles within one and the same contract. In the Netherlands, we’re now offering Choice, a product that allows customers to choose pre-configured cars for periods of 6, 12, 24 and up to 36 months. They can choose to have a bicycle included in that option. They can even choose used cars, and can sign up for shorter periods. It’s all about getting more car for your money.

So there’s space enough for both rental and leasing companies in the mid-term segment?

T. Albertsen : Precisely. Lease and rental companies will continue to bring their different approaches to this new market segment, and there’s plenty of room for them to do so. Also for the OEMs, which are also pushing private leases – an ideal way for them to lock in customers to their brands.

Will this convergence between the rental and lease sectors eventually lead to mergers and acquisitions between rental and lease companies?

T. Albertsen : I think the lines will be blurred somewhat, but they will still be there. Lease companies have large fleets on their balance sheets, and that requires amounts of capital that go way beyond what is necessary or possible for rental companies.

On the other hand, rental companies have excellent location networks – we’ll always need cars at airports, for example – and are great at working with deadlines.

That being said, it would make sense for companies to offer the whole range of options, from short- over mid- to long-term contracts.

And that is what will happen, whether or not via mergers or acquisitions.

A substantial increase in private lease can be expected.

Where do you see the mid-term market going?

T. Albertsen : The urbanisation megatrend points to changes in transport behaviour and transport needs.

Take an urban centre such as Amsterdam: traffic is terrible. So you want a small car. But to go on holiday with your family, you need a bigger one. This points to a bigger role for carsharing”.

“Right now, the corporate sector represents 99% of our business. But we foresee a substantial increase in private lease. This will be something that rental companies, lease companies and manufacturers will be eager to get their share in.

Can you put a figure on the future importance of private lease?

T. Albertsen : I would not at all be surprised if, in 5 to 6 years time, private lease constitutes 20-25% of ALD’s business. That’s a big number, but we’re opening up a whole new market here. If we add up current trends towards multimobility, shorter-duration contracts and more private lease, the total market will be much bigger than it is today.

Last but not least: Will customers be better off choosing mid-term products from lease companies or rental companies?

T. Albertsen : Customers must ask themselves: How flexible do I want to be? For shorter-term products, for example on a weekly basis, they probably would be best served by rental companies. For longer-term ones, monthly and above, I would say they’d get better service and a better price from lease companies. ■ Frank Jacobs

Private car lease in Netherlands doubles In the Netherlands, the number of private lease contracts for cars has doubled in just a year’s time. In 2013, around 8,500 private car lease contracts were signed in the country.

Last year, that figure had climbed to around 17,000.

The figure is expected to increase more than five-fold, to around 100,000 by 2020.

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DOSSIER I Fleet Management Trends

Top Ten Topics for Remarketing Today On 18 November, Rome - the Eternal City - will host the second Fleet Europe Remarketing Forum. These 10 topics will be on everyone’s mind.

The list below was generated during a recent conference call of the Fleet Europe Remarketing Advisory Board. We’ve asked a few of the members to explain the relevance of these items for the car fleet industry as a whole. To manage your car fleet right, you better keep in mind the topics below.

�

Cross-border Remarketing Challenges “Cross-border trading of used vehicles is very complex. The viability of a deal depends on the type of car, the local preferences, the mileage, and many more factors. Different and constantly changing legislation adds even more complexity”.

“Many car lease companies don’t care what happens to their vehicles after they’ve passed them on to the traders.

But the price those traders get for those cars influences their bottom line. And that bottom line is influenced by the opportunities and challenges of cross-border marketing. So clear and simple remarketing rules are also in their favour”.

2

Logistics Optimisation in Remarketing “Logistics is an important part of any product chain, including remarketing. Any European remarketing player needs to be intimately acquainted with the logistics part of his operation, and harmonise his business process accordingly”.

3

Geographic Remarketing Scope in Russia “Russia is a special case – it is the BRIC country closest to Europe, and hence a viable outlet for used vehicles. It is also a country in deep turmoil, with an automotive market in steep decline. Considering the potential importance of the Russian market for used cars, it is crucial to learn more about the timing of an eventual upturn in the Russian automotive market in general, and of its remarketing opportunities in particular”.

4 Since years corporate fleet managers ask for harmonised refurbishment and inspection standards.

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The EC’s view on future regulation and industry outlook “All too often, remarketing professionals are informed of important changes in EU legislation or regulation after the fact. There are so many departments involved in diverse aspects that touch upon remarketing, that it’s easy to lose oversight. Also for them – one can even wonder whether the European institutions are aware that there exists something like a remarketing industry, and if they know how important it is economically. It would be good to have someone from the European Commission discuss the vision on the indstry from the regulatory side – if nothing else to raise awareness of our existence, at least in an initial stage”.

5

9

6

��

Refurbishment standards “Leasing suppliers can have very different standards for refurbishing end-of-lease vehicles across the various countries of Europe. While this may be understandable from a historical perspective, in the light of the opportunities offered by cross-border trade and in view of the importance of transparency, it is important to work towards a transnational refurbishment standard. This will increase the comparability of the vehicles, thus also increasing their value potential”.

Inspection standards “Trust is an essential element in remarketing. To have the knowledge that the car’s reported state matches its actual state. That the odometer indicates the actual mileage. That all defects and damages are accounted for correctly. Lack of that trust currently is a serious deterrent for cross-border trade. That trust can be increased dramatically if stakeholders across the continent could be certain that end-of-contract vehicles across the contintent have been inspected by the same high standards across the continent”.

7

Selling Wrecks “Wrecks are the very last link in the product chain. And for this particular link as well, very specific and very different rules apply across the various countries of Europe. In some countries, wrecks can be sold directly onto the market. In other countries, wrecks may only be sold to certified demolition dealers. Is it worth lobbying for universal standards for this, or should the sector accept these differences and follow the rules, diverse as they are?

It’s a discussion worth having – although perhaps not the very first one”.

8

The Voice of the Remarketing Customer “The coming together of the remarketing sector both in CARA and the Remarketing Forum also presents an opportunity to give a voice to the customers of the remarketing industry – the resellers, traders, dealers.

What are their needs, not just in terms of pricing, but also paperwork, service books, etcetera”.

Residual Value Setting “This is such an important topic that many companies refuse to even discuss it. Rvs are set at the beginning of a multi-year period, in which time a lot can change. Bigger leasing companies deal with this by adjusting their RV predictions every half year, every quarter or even every month. Imagine a €1,000 price swing per used car – not unthinkable – and then multiply that by a fleet of half a million cars: that’s half a billion euros. And yet, these predictions are often uneducated guesses. There is nothing worse than ignorance in action”.

Future Business Models “As in other industries, the development and implementation of online tools and technology is transforming the remarketing sector. Traditional business models will give way to new ones – but on one condition only: they must be able to duplicate or surpass the trust generated by traditional methods. Without proper standards and guarantees, people will still prefer to kick tires in a parking lot rather than click on vehicles on an auction website”. ■

Frank Jacobs

Help shape the future at the Remarketing Forum The second Remarketing Forum, on 18 November in Rome, is your chance to weigh in on the issues affecting the industry, and help shape its future. If you are a remarketing professional with European scope, this is the place to be. Register your attendance here.

See you in Rome! www.forum.fleeteurope.com/programme/ remarketing/presentation.html

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DOSSIER I Fleet Management Trends

Remarketing:

“Let’s get things moving” The European Car Remarketing Association has 24 members so far. Perhaps a few more will join at the trade association’s first meeting, on 17 November in Rome. “Considering the total scope for membership is about 50, we’re doing pretty well”, says Wolfgang Reinhold.

F

ifty is about the number of companies who are involved in Remarketing on a European level. The CARA Chairman is pleased that the half of those companies his organisation already represents come from across the spectrum: “We have big auction houses like BCA and Manheim, rental companies like Avis and Europcar, lease companies like Arval and LeasePlan, OEMs like Hyundai and Renault. Which is good, because we want to speak for the whole industry. And there are a few more potential memberships in the pipeline”.

Agenda What will the delegates to the first CARA meeting speak about? Put differently, what are the main points Wolfgang Reinhold thinks the association should put its collective weight behind?

“There are a lot of things to discuss; but let’s get things moving by concentrating on a few items first, and then take it from there”.

“First on the agenda are: creating transparencies, and working for the standardisation of inspection (damage) recordings and inspection (damage) reports. As far as the latter is concerned, we first have to clearly define damages and appraisal reports, the so-called fair wear and tear guidelines – in the interest of all parties involved, which is exactly why it is good that our members come from across the entire remarketing spectrum”.

Guidelines CARA also wants to get moving on creating guidelines for importing and exporting used cars across European borders. Coming from a trade association, those guidelines of course won’t be legally binding. But they do represent an advantage over the current situation, where there simply are none. “We will be the first organisation to provide such guidelines, and they will help set standards, raise expectations and promote trade”. Talking about guidelines – various European legislative and regulatory bodies will be prime targets of CARA’s attention. “We want to speak to those

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FLEET EUROPE # 79

Wolfgang Reinhold, CARA Chairman: “There are a lot of things to discuss; but first on the agenda are: creating transparencies, and working for the standardisation of inspection recordings and inspection reports.” responsible for EU Transport policies that relate to our industry. It’s often not easy to find the right body or person.

We also want to support any action that can promote and regulate correct mileage readings. Our sector is of course an interested party in this issue, but there are others, with which we could build a coalition”.

Reinhold doesn’t want to pin CARA down on deadlines for achieving targets. “Let’s just get things moving; at the end of the day, the Board of the association will be held accountable for the progress that will be made”. ■ Frank Jacobs

CARA If you want to know more about the European Car Remarketing Association, please consult the website www.cara-europe.org

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DOSSIER I Fleet Management Trends

A changing world, a changing management It may seem not all that long ago that fleet management became a recognized, professionalized function in its own right – but already things are changing. Maybe not as quickly as the car models we are presented with, but changing nevertheless. How do international fleet managers view the evolving market?

T

o get the answers, we solicited three of the very best.

And it is refreshing to note that they don’t always agree.

First of all, there is the question of low cost brands. Do these have a place in a 21st century fleet? The ‘yes’ opinion follows this logic: company fleets involve both motivational and cost aspects. If the low cost brands fit into both categories, then it’s ok.

There’s nothing wrong with those cars. But companies are tending to spend higher amounts of money on their cars, so people go for the more premium brands if they can.

And the low cost brands themselves are getting more competition from the more premium brands, because these are producing smaller cars too.

However, and equally logically, we are told: there is enough for a fleet manager to do in rationalizing the existing brands, without starting to add any more. The emotion allied to a company car is very important in some countries. So the fleet manager’s role is to rationalize brands as well, often reducing – not increasing – the number of brands. There will tend to have a core manufacturer and one other to suit local tastes, usually a local brand. it would not be easy to try and add a low-cost brand.

And equally pragmatically: The OEMS will need to demonstrate that companies are not sacrificing reliability in exchange for lower prices.

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FLEET EUROPE # 79

Leasing or rental As everyone tries to get a slice of every cake, there sometimes appears to be a convergence between the leasing product and shorter term rental. Is this really happening?

It is not sure there’s a convergence between the two methods. The short term rental companies have a business model whereby they buy cars and then return them to the market quickly – within six months to a year.

There may even be a seasonal effect to this – the summer in Spain, for example. Leasing companies don’t really do this.

And there is clearly a companyoriented business case to be considered: there isn’t really an obvious convergence. There are some business models such as long term renting in the UK, but they are not common in mainland Europe. What is important is look closely at optimal vehicle replacement cycles, and this leads us to go mostly for longer term contracts. We have a lot of routebased and repetitive journeys, so we need consistency.

But there is clearly a need for rental nevertheless: ‘Under six months, we use rental, and anything over this we go for leasing. There are many reasons for this, including insurance and accidents. Rental cars are not a problem in this respect. We use these cars for people coming in from a different country who may not be used to the driving conditions. You pay more for these rental cars, but they are less hassle in such circumstances’.

The question about Telematics There has been more written about telematics than almost anything else. This is one of the most obvious changes to fleet management and driving, because telematics simply didn’t exist not so long ago. But there are clear benefits. Telematics will lower the costs of fleets, in a variety of ways. There will be the ‘Big Brother’ effect at first, and people will drive much better, following the rules more closely, driving as they should. So there will be fewer accidents, fewer fines, less abuse of the vehicle, resulting in lower insurance, accident and fuel costs. The ‘Big Brother’ effect will help, because

Low cost brands, low-cost travel No the comparison is not really valid, , because low cost airline companies have used a disruptive business model. They have looked at the business and done things entirely differently. They look at it as a bus. You buy your ticket, you take little or no luggage, you get shipped in and out as quickly as possible. It’s like a bus or a truck – it has to be used as often and as much as possible. Traditional airlines have shifted towards the low cost – but I think they will have to make up their minds, either at the top or the bottom: if you get stuck in the middle, you’re lost.

Luc Dendievel is Director Fleet EMEA, Johnson & Johnson

“

Ivor Johnson is Regional Fleet Director, APAC, EMEA, Pfizer Global Procurement

“

Richard Tiffany is Procurement Director, Global Fleet & Indirects, Rentokil Initial

“

If a person is here for six months and drives one of our lease cars and has an accident, you have to explain this to the next user of the car.”

For sure like all things the leasing/renting business model needs to adapt to client needs. It is evident that more companies are looking at overall mobility requirements rather than just a company car.”

Telematics is probably the most aggressively marketed product out there in the industry – we receive multiple phone calls every week, from many suppliers in many countries.”

drivers will know that someone can see how they’re driving. This should get rid of the ‘White Van Man’ type of driver on the motorways!

you’ve been, how long you’ve been driving where you were going… The key for fleet managers is using the information and the functions which are already there – I don’t think we need any more functions. Use what we’ve already got.

In terms of things like cars that park themselves, this is phenomenal. The new business models are coming from Google and Apple and the others, who look at things totally differently, and we haven’t had a chance to see this yet.

They are going to totally digitize the automobile industry, and some exciting things are going to come out of it’. In even more concrete terms, there is the belief that they certainly will help with all the traffic jams. But it isn’t going to happen in the next five years, you can’t just suddenly change all the cars on the road. But it will happen. They will greatly aid congestion, improve safety and reduce pollution. ■

There is also the pragmatic view of the purpose of telematics. You have to do something with the data, and then it should pay for itself. If you just buy it and leave it in the vehicle, and don’t use the data, then don’t waste your money putting it in the cars. If you have the right launch and communication strategy and the right intervention strategy if people misbehave, telematics can be very useful.

If you ask the manufacturers they will tell you they can pull the information out of the vehicles, tell you where

It would be great if the telematics were integrated with the car from new and provided some mandatory standard data sets.

Driverless cars This time, we asked our panel to take a look into the future, to tell us something about what would be the biggest single change (apart from flying cars…) that could ever happen: not having to drive cars at all.

‘They look great, and I’m amazed.

Tim Harrup

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INDUSTRY EXPERT

KNOWLEDGE SHARING

“10th Anniversary of the International Fleet Barometer marks a new boost to the Corporate Vehicle Observatory” Alessandro Pigazzi, Director of Arval Consulting and the Corporate Vehicle Alessandro PIGAZZI

Observatory (CVO), sees only benefits for the customer.

The CVO and Arval Consulting are two distinct organizations; each has its own mission and distinctive approach. But they do work in synergy providing added value to the market through a focus on common key industry trends.

strategy. Examples of this could be the support in building from scratch the set of documents composing the company car policy, an analysis of the internal fleet tasks to identify outsourcing opportunities, help in raising the sensitivity on corporate mobility through targeted workshops and analysis. In addition to this, Arval Consulting supports clients on the deployment of telematics solutions and the definition of their OEM sourcing strategy.

In a number of cases, a benchmarking exercise is part of the consulting missions.”

In the end, all that added value goes to our clients, who have access to both platforms simultaneously”.

Is there a synergy between both?

“Yes absolutely. The CVO helps identify current and future trends of our industry, raising knowledge on topics the market may not yet fully recognise. This feeds our Consulting teams when analysing and defining fleet strategies together with clients.

What has made the CVO recognised in the Industry?

Across its years of presence in the industry, the CVO has gained recognition through its expertise brought to the market in an objective way. In the last 10 years, more and more industry actors have joined the platform and it is this richness of expertise brought together and translated to a broader audience, that makes it successful.

How would you describe the CVO? “The CVO can be seen as our industry’s think tank, sponsored by Arval. It is an open, knowledge-sharing platform, delivering information and expert views on fleet industry trends to anyone who wants to be part of this enlarged community: corporate fleet managers, OEMs, service suppliers, Procurement Specialists, fleet lessors, public authorities and media”.

And where does Arval Consulting come into the equation?

“Arval Consulting is a dedicated team of fleet management experts in the broadest sense, operating at international level as well as in the more mature countries. The main objective is to deliver added value to clients and prospects through focused missions in the field of corporate mobility and fleet

Arval Consulting, on the other hand, can feed the CVO with real client cases on a variety of topics, such as the effects of telematics, the real take-up of innovative mobility solutions, etc.

CVO INDUSTRY EXPERT KNOWLEDGE SHARING

That synergy is new, but the CVO isn’t.

“Correct. The CVO was founded in 2002. My team and I head the CVO at Arval HQ in Paris and we supervise the dedicated local teams in the 15 key markets. Beyond the international presence, this geographical coverage allows treating topics that are specific for certain geographies through targeted countries analysis and surveys.

What does the CVO monitor?

“Mobility, safety, alternative energies and fuel, to name but a few of the key industry pillars

that the CVO observes and analyses both at international and country level. All of which translates into one of our main deliverables, the annual CVO Fleet Barometer, which this year celebrates its 10th anniversary”.

What is this Fleet Barometer?

“It’s a fleet trend analysis across our 15 countries involved, via 4,800 interviews with corporate fleet professionals, and as such an accurate observation of the main developments in our industry. The Barometer is composed of a core international section as well as additional country sections tackling local topics.

Starting from next year we will include a specific study for the SME segment.”

Besides the Barometer, what else does the CVO do?

“Across our markets, the CVO produces books, white papers and studies on specific topics. In addition it organises events for clients, prospects, OEMs and lessors.

As an example, in a number of countries, the CVO is currently monitoring on a regular basis the evolution of the diesel engine following the debate

I CONCEDED EDITORIAL SPACE I

on diesel, further fueled by the VW case. Staying in this country, there was an important CVO conference mid-October in Paris linked to the 2015 United Nations Climate Change Conference COP21, with more than 350 participants and topics such as emissions and fuel types for the current and future corporate fleets. We’re also plugged in to the media,

which come to us for reliable sector info and we proactively organise press conferences and participate to articles and press releases. In the end, the advantage of all those who approach the CVO is to have free and open access to knowledge but also to get in touch with external experts who contribute to the various debates. The CVO is therefore an open forum for all those

who want to participate as members of the community.”

How can we join the CVO? “There are several ways for professionals in our industry to adhere, depending on the geographical location, the topic or the initiative of interest. We encourage your readers to stay tuned so to have a view on what is going on in terms of initiatives being

those events or publications.

The easiest way is to have a look at the CVO website www.corporate-vehicle-observatory.com – soon to be renewed – or get in touch with the local CVO representative or with us at international level at the following e-mail address: contact1@ corporate-vehicle-observatory.com.

THE CVO FOOTPRINT The Corporate Vehicle Observatory is the industry’s neutral think tank sponsored by Arval. It gathers intelligence from and communicates information to a wide range of stakeholders. It does this via a continuous, in-depth analysis of automotive and fleet industry trends. This analysis is channeled in:

The annual Fleet Barometer: International and local

Practical Guides and Books

White papers

Keynote Presentations and Events

Website

www.corporate-vehicleobservatory.com

CVO BOOKS Year-round, the CVO publishes special editions with local and/or international focus, on key topics in corporate mobility and the automotive industry.

• Automobile et Mobilité 2015 focuses on the evolving

needs of corporate fleets and the connection between company car and mobility trends (in English or French).

• El informe CVO 2015

provides updates on the Spanish automotive market (cars and LCVs), and on alternative energy and fuel types (in Spanish)

• Un approccio al mondo dei veicoli commerciali

gives an overview of LCVs in the Italian market (in Italian). Also available: an extensive series of books on safety, mobility, LCV series and other key topics.

CVO INDUSTRY EXPERT KNOWLEDGE SHARING

I CONCEDED EDITORIAL SPACE I

THE CVO ANNUAL FLEET BAROMETER • • • •

15 country reports provide detailed local insight and analysis 1 International CVO Barometer analyses key evolutions on an international scale Profound segmentation with split between SME fleets and Large fleets In-depth analysis and Executive Summary

USE OF TELEMATICS

PRIMARY PURPOSE FOR USING TELEMATICS Brazil Europe

EU

BE

CH

CZ

DE

ES

FR

IT

LU

NL

PL

PT

UK

As a vehicle locaror/tracker

51%

20%

14%

12%

* 21%

Reduce fuel consumption 17%

27%

24%

25%

10%

Improve safety of your drivers

16%

15%

13%

30%

10%

Monitor unauthurised use

Base: companies with corporate vehicles = 100%

17% 26%

10%

Monitor driving behaviours

6%

10%

Monitor technical car data to reduce maintenance costs

9%

37%

13% 15% 17%

In the graphs, you can see an example of the historical, cross-border view that the CVO can provide on Telematics. Europe-wide, Telematics use has not substantially evolved. The per-country picture is very interesting, however: in mature markets like the UK and the Netherlands, Telematics monitor driver behaviour and unauthorised use. In Poland and the Czech Republic, on the other hand, it’s used to monitor fuel consumption and technical vehicle data, to reduce maintenance. In Brazil, Telematics is used to track vehicles and improve driver safety.

ALTERNATIVE FUEL Brazil Europe Already in place The next 3 years

*

At least one technology

7% 9%

Hybrid 3% 3% Plug-in Hybrid 1

8%

* 18% 17%

11%

7% 7%

21% 8% 3%

2

CNG (Compressed 3% 5% Natural Gas) 1 3%

6%

4% 7%

Fuel Call Electric 6% / Hydrogen 1 3%

8% 4%

2 1 1

10% 5%

26%

39%

24% 15%

11% 11%

9% 4% 3%

LPG (Liquefied 5% Petroleum Gas) 3% 3% Electric Vehicle 2

8%

26%

21%

12% 9%

13%

25%

23%

Base: companies with corporate vehicles = 100%

Here’s a comparison between Brazil and Europe for alternative fuels in fleets. CVO can compare other countries/regions and provide relevant comment.

*For companies below 100 employees

CVO INDUSTRY EXPERT KNOWLEDGE SHARING

*For companies above 100 employees

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CVO EVENTS This year marks the CVO Barometer’s 10th anniversary, a milestone already celebrated in Italy, Portugal and Switzerland. Here’s what’s going on elsewhere:

• CVO Spain celebrated its 2015 edition of the CVO Barometer

on 16 June. The Spanish Barometer was oriented mostly to local SMEs and entrepreneurs, and reflected the positive market expectations.

CASE STUDY SANOFI: From Fleet to Mobility Pharmaceutical company SANOFI has initiated in 2015 in France a campus for up to 3,000 people with an average of 2,400 people working in the campus every day and commuting from three separate sites. The organisation of this new site, with High Environmental Quality standards, concentrates the most innovative solutions, both in terms of work organization and employees’ mobility.

• CVO Italy held a press conference to celebrate its 10th Barometer,

Arval Consulting was selected to assist SANOFI to build their plan to optimise employee mobility. A consulting mission was started and also the CVO was involved internally to provide content and figures.

•

The Arval Consulting Mission provided SANOFI with a three-stage plan and the following deliverables:

which reflected an increasing interest in extended mobility services, shared-use vehicles and tailor-made consultancy.

In view of the 2015 United Nations Climate Change Conference, COP21 which takes place in Paris in November, CVO France (OVE - Observatoire du vehicule d’entreprise) organised an event on October 13th focusing on fuel consumption and energy types.

Additionally, Arval France organises a CVO Matinée every two months, allowing select groups of Clients to discuss recent trends with the CVO Director.

More info: www.corporate-vehicle-observatory.com

JOIN THE CVO ROUNDTABLE & EXPERT PANEL –

20 NOVEMBER IN ROME

• Challenge

and complete solutions related to mobility highlighted by SANOFI in previous analysis: Validation and prioritization of short term actions, appraise needs through Arval Consulting tools, analyses of car-sharing solutions and potential savings.

• Identify earnings and

benefits based on a benchmark with similar experiences conducted by other companies: Analysis of the governmental and regulatory environment, identification of priority actions to facilitate the transition to the mobility plan, knowledge sharing with industry players.

• Deliver

SANOFI a structured implementation plan, based on selected best practices either in France or at international level: Provide a future vision of the corporate mobility evolution, analysis of the impact of these developments on SANOFI, overview of mobility tools to be implemented to realise the program.

On 20 November, the day after the 2015 Fleet Europe Forum, the CVO and the International Fleet Barometer land in Rome for a Breakfast Meeting. Get first hand information on current fleet management trends, with regard to Corporate Mobility, Telematics, Alternative energies and Fuel types and much more.

This session will be animated by an expert panel with the participation of: • Prof. Ing. Fabio Orecchini, Director of the Center for Automotive Research and Evolution; • Mr. Lukas Nekermann, Consultant, Entrepreneur and Author of the CVO Book «The Mobility Revolution»; • Mr. Bart Beckers, Chief Commercial Officer Arval.

DON’T MISS THIS OPPORTUNITY & REGISTER TODAY ATTENDANCE IS FREE

• • • •

Date : 20 November 2015 Timing: 8:30 – 11:30, including a Q&A at the end of the session Location: Sheraton Roma Register today at contact1@corporate-vehicle-observatory.com CVO INDUSTRY EXPERT KNOWLEDGE SHARING

I CONCEDED EDITORIAL SPACE I

MANAGEMENT I Behavioural Change

Hello.

I’m the fleet manager Working behind the scenes to manage assets is one way of securing savings, but today car fleet managers need to get to know drivers if they’re going to make a big impact on the bottom line.

T

he most important topic in fleet management at the moment is behavioural change. Its importance in the Total Cost of Ownership (TCO) equation won’t come as a surprise to regular readers of Fleet Europe. We’ve dedicated plenty of column inches to the importance of behaviour change strategy and policy, and what a communication plan should look like to encourage driver engagement over the past few years.

There’s lots of good guidance, but one topic that’s rarely been touched upon is the importance of ensuring that, as a fleet manager, you are known to your drivers.

Fleet management has become increasingly strategic. It has meant more time in the office and less time in the field. Take, for example, the outsourcing of maintenance.

Once this led to day-to-day interactions with drivers.

Today, this role has all but disappeared.

As the opportunity for face to face interaction diminishes are fleets paying the price when it comes to trying to change driver behaviour? There’s lots of talk about getting to know your audience and understanding what makes them tick, but there’s a distinct lack of discussion about whether drivers actually know who their fleet manager is.

There’s a subtle, but very significant difference.

Behaviour change strategy and communication plans are policy documents that need to be implemented by people.

There’s a argument that’s doing the round that says change only comes if people actually know who it is that’s asking them to make a change.

It’s nice to meet you So, how about getting out there and meeting the men and women behind the wheel? I know. You’re under-staffed, and under pressure. There’s an inbox of emails to get through. It makes the task of introducing yourself to every driver seem impossible.

Take advantage of new technology and combine it with good, old fashioned, conversation.

Well, it’s time to get creative. With e-mail, text message, social media and so many other types of electronic communication there’s lots of avenues to explore. But don’t forget that it’s good to talk too. Face to face presentations and e-webinars offer ways to reach out to drivers, whether they’re located in nearby offices or working from home.

Take advantage of new technology and combine it with good, old fashioned, conversation.

It takes time to build relationships, but relationships, as we know from strategic engagements with fleet suppliers, are what deliver results.

So, get out there and let fleet drivers know who you are and what you do.

Get it right and the changes will come. ■

Jonathan Green

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MANAGEMENT I Fleet Europe Awards 2015

Discover ALL nominees!

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On November 19, the international fleet community will get together in Rome for the celebration of the Fleet Europe Awards 2015. Here are this year’s nominees – and among them the future winners! here are five Award categories related to corporate vehicle fleet managers who have successfully developed and implemented specific fleet management strategies:

The International Fleet Manager Award of the Year 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. Category Large Fleet for fleets above 4,000 vehicles in at least three countries. Category Medium Fleet for fleets up to 4000 vehicles in at least three countries.

The International Fleet Green Award is given to a company that has successfully implemented a project

that supports eco-friendliness and sustainability in line with the overall company strategy.

The International Fleet Safety Award is given to a company that has successfully implemented a project that enhances driver safety.

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

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

The 2015 nominees Montse Empez Vidal and Luisa Amate Comesaña Role: Chief Purchasing Officer and Group’s Fleet Responsible, Applus Sector: Services.

Responsible for: 4,500 vehicles

“We have entered the competition to achieve recognition that can be used internally, to continue with our project and to get the assessment of the best fleet experts of the world.”

Mariano Tristan Role: European Fleet Project Leader, Eli Lilly.

Sector: Pharmaceutical.

Responsible for: 4,000 vehicles

“After several years working in the area this year we present a project that we consider could be interesting and inspire other Fleet Managers.”

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Sven Nicolaysen Role: Head of Car Fleet Management, Deutsche Bank.

Sector: Finance Industry.

Responsible for: 10,000 vehicles

“We believe in a global approach in car fleet management. With an ambitioned IT infrastructure a professional management of several countries can lead to operational and financial advantages.”

Christian Lindskov Alsø Role: Head of Group Fleet Management & Procurement Excellence, ISS world Services.

Sector: Facility Services.

Responsible for: 17,750 vehicles

“We have built a central lead organisation with both responsibility and accountability anchored at group level, a project which has significant impact not only on our own business, but for the market place in general.”

Romain Trébuil Role: Purchasing Manager L‘Oreal.

Sector: Cosmetics/Beauty.

Responsible for: 10,501 vehicles

“It’s an opportunity to benchmark our strategy and achievements with our peers.

Getting an award would be a certification to validate our roadmap.”

Laura Gobbis Role: Fleet Procurement Manager, Luxottica.

Sector: Production and distribution of glasses and sunglasses.

Responsible for: 1,300 vehicles

“Thanks to a strong governance and policy integration, we are in a non-stop innovation mode on mobility tools and services to maintain sustainability and cost efficiency.”

Pim De Weerd Jean Zermati Role: Group Fleet Manager, Orange.

Sector: Telco.

Responsible for: 33,000 vehicles

“We share the conviction that major ‘fleet management’ changes in the coming years will be through a transition from possession to use-based needs.”

Role: Global Commodity Manager, Phillips.

Sector: Technology.

Responsible for: 13,000 vehicles

“We have developed a successful implementation of a Global Fleet Policy including reduction of OEM’s in Europe, carbon footprint reduction and an innovative approach to improve fleet management.”

Marcel Hendriks

Scott Millar (representing the P&G Team) Role: Purchasing Associate, Europe CarFleet, GVA Relocation, Procter & Gamble.

Sector: Consumer Goods.

Responsible for: 5,800 vehicles

“We believe in the spirit of learning new things and sharing for potential re-application by other members of the Fleet Europe community.”

Geert Behets Role: Head of Global Travel & Fleet Management, UCB Pharma.

Sector: Pharmaceutical.

Responsible for: 2,973 vehicles

“Our Fleet Program has now been fully rolled out in more countries and the benefits are becoming clear: better cars than with previous program, lower TCO, strong compliance and buy-in.”

Selçuk Gündoğdu Role: Group Commodity Buyer Fleet, Vaillant Group.

Sector: Heating & Cooling.

Responsible for: 4,000 vehicles

“We want to promote and showcase the focused and dedicated ethos of Vaillant Fleet Management with our commitment to maintaining driver satisfaction and safety whilst driving down costs and environmental impact.”

Role: Principal Program Manager, SAP. Sector: IT. Responsible for: 8,000 vehicles

“The transformation we have been able to achieve in the car fleet area in the last two years is a nice success story not only in the automotive space but also from a project management perspective.”

Philippe Brunner Role: Global Procurement Manager Travel & Fleet Services, Unilever.

Sector: FMCG Responsible for: 12,500 vehicles

“We have developed our project to maximise efficiencies by taking interdependencies between policy, management and procurement with the goal to enhance driver safety, sustainability, compliance and commercial aspects.”

The 2015 jury for Award categories for Fleet Managers

Karin Meersman, Corporate Fleet Manager EMEA, Johnson Controls | Knut Krösche, Head of International Fleet, Aftersales & Used Car, Volkswagen Financial Services | Erik van der Werf, International Sales Director, Athlon Car Lease International | Stéphane Renie, Sales & Marketing Director, ALD International | Alessandro Pigazzi, Director of Consulting & CVO, Arval | Vinzenz Pflanz, Chief Commercial Officer, Fleet Logistics | Ciprian Suta, Pan European Corporate Sales & Leasing Director, Opel/Vauxhall Europe | Martin Jahn, Managing Director , Volkswagen Group Fleet International | Hans-Georg Lutz, Senior Manager International Corporate Sales , Mercedes-Benz Cars | Adrian Porter, Director Fleet Sales & Remarketing, Hyundai | Jean-Pierre Mesic, Vice President Corporate Sales, Renault | Michael Dana, Senior Manager Fleet - Fedex Express Europe, Middle East, Indian Subcontinent & Africa, FedEx | Csaba Csiszko, Director EHS, Philip Morris International Switzerland | Graeme Banister, Director of Consulting, Automotive & Transportation, Frost & Sullivan | Stephane Chesnel, Head of International B2B Development, PSA Peugeot Citroën | Thomas Schröder, Global International Account Director, LeasePlan International | Caroline Thonnon, CEO & Business Development, Nexus Communication | Tony Elliott, Global Fleet Expert, Nexus Communication | Steven Schoefs, Chief Editor Fleet Europe & Global Fleet |

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MANAGEMENT I Fleet Europe Awards 2015

Last year’s winners of the Fleet Europe Awards. The 2015 winners will be announced on 19 November in Rome. Be there!

Car fleet suppliers honoured Next to the Award categories for International Fleet Managers, we also celebrate the car fleet supplier industry.

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

2015 nominees ALD Automotive

ALD Automotive

The Miles Consultancy Limited

With ALD ecodrive

With My ALD

“ALD ecodrive is a mobile app designed to help drivers asses their driving behaviour.”

“My ALD is the customer portal designed for drivers and fleet managers.”

with TMC Mileage Capture, Audit and Control

ARI Fleet

Chevin Fleet Solutions

With Transparent Fleet Management Model

“This model is single-source fleet management solutions that streamline fleet operations, and create long-term value for our customers.”

Moovel With car2go

“It is the first carsharing system in the world without fixed rental locations.”

TomTom Telematics With OptiDrive 360

“OptiDrive 360 is the tools European Fleet Managers need to take fleet efficiency to the next level and have a positive impact on reducing CO2 emission.”

Aon With Protected Cell Company

“The PCC (Protected Cell Company) brings a solution for the fleet owner to manage the fleet risk alternatively and more cost effective as compared with a traditional transfer to insurance markets.”

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With FleetWave Mobile

“FleetWave Mobile provides a simple-to-use and cost effective solution for field workers or remote personnel to collect and transfer data to a centralized system.”

Sixt Mobility Consulting With Sixt Global Reporting

“Sixt Global Reporting = Reliable information – tailored to the client – global fleet intelligence”

Wollnikom With DriversCheck

Offering a highly flexible and customizable solution for fulfilling the legal obligations in fleet management within the framework of owner liability”

Geotab With GO7

“GO7 is an end-to-end telematics solution which offers fleet innovation in its security, reliability and scalability.”

“TMC Kilometrage Capture, Audit and Control provides unprecedented visibility over car and light/heavy commercial vehicle journeys, fuel consumption, reimbursement claims and CO2 emissions.”

Xgear With XGear platform

“XGear is a predictive analytics platform for vehicles; delivering real-time actionable insights to drivers & enterprises for preemptive car maintenance and performance optimization”

The 2015 jury for the International Fleet Industry Award

Gregory Bech, EMEA Category Manager Fleet, Johnson & Johnson | Hans den Hollander, Manager Car Fleet EMEAR, Cisco | Pim De Weerd, Global Commodity Manager Leased Cars, 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 & Global Fleet

International Fleet Hall of Fame 2015 Last but not least the new inductee into the International Fleet Hall of Fame will be announced. The International Fleet Hall of Fame Award recognizes vehicle fleet industry leaders and pioneers who have contributed to the international fleet management profession throughout their career.

Simon Dransfield

Ian Hucker

Christian Steiner

Role: General Manager, Fleet & Business Europe, Jaguar Land Rover

Role: Executive Director Sales, Opel/ Vauxhal Europe

Role: Head of Corporate Mobility Services, BMW Group

The nomination is in recognition of the major strides made by both Jaguar and Land Rover to relaunch their brands in the fleet business, not just offering a whole range of appealing models but also a totally updated fleet policy.

Simon Dransfield and his team are major drivers of that effort in the European fleet sector.

Ian Hucker has been the ‘face’ for the brand’s European fleet customers for a number of years. The success of his fleet efforts has proved instrumental in Opel/Vauxhall’s overall succes in Europe.

And that in turn was an important part of the growth of parent group GM, after traversing a difficult period some years ago.

Christian Steiner successfully contributed to the development and awareness creation of alternative mobility for car fleets and car fleet drivers as head of the mobility division at BMW Group. With his support initiatives in car sharing like Drive Now and integrated multimodal mobility were launched.

Philippe Noubel Role: Deputy CEO, Arval

Philippe Noubel has initiated various new fleet projects at Arval.

He was the driving force behind the launch of Arval’s International Business Office for international clients, he contributed to the development of services in Remarketing and he set up a strategy for new and emerging car fleet markets.

Mike Masterson Role: CEO, ALD Automotive

As CEO of ALD Automotive, Mike Masterson guided his company to a successful European and international expansion with a current presence in 40 countries and a strong cross-Atlantic partnership with Wheels.

VOTE NOW for the 2015 International Fleet Hall of Fame Award!

The voting system is open to the entire automotive and fleet industry. You have until November 1, 2015 to vote for your favorite nominee.

Vote now by visiting www.fleeteurope.com

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BUSINESS I Daimler Fleet Management

Success via Customer Centric Fleet Management Gero Goetzenberger, Head of Daimler Fleet Management, is a happy man. This year he has overseen Daimler Fleet Management (DFM) go live in France, Switzerland, Poland and the Czech Republic. An increase in coverage that has seen the number of countries on the firm’s books jump to eleven. And the fleet ambition reaches beyond these countries.

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here has been the small matter of rebuilding the European offer of DFM and honing in on the market segments that offer opportunities in the hypercompetitive fleet business. It’s been a busy time, but one that has been worth all the effort he says. “We are constantly developing. We can’t stand still.” Whether the fleet is small at 20 or significant at 3,000, Gero Goetzenberger tells us DFM has the structure to adequately respond.

There’s dedicated sales teams and service centres in place to serve different markets. It’s all part and parcel of what Gero Goetzenberger calls “customer centric fleet management”. “Customers like our product, our process and trust our people and services. Daimler Fleet Management aims to support them wherever their fleet is. Consistency and quality is something the firm is focusing on, already in the short term.”

SMEs and large fleets are equally important Daimler Fleet Management offers smaller clients a full range of fleet management services. “We’ve invested in a sales force and services specifically for this segment, and with a supportive local dealership network we’re able to provide the best solution for the customers’ individual needs. They have other needs than large fleets and they deserve another approach which we are ready to give,” says Gero Goetzenberger. Why the interest in the SME? “Well, it’s a growing segment with customers actively approaching us and asking for support,” says Goetzenberger, “so we decided to open up to it.”

Germany is traditionally the firm’s strong market, but besides of Europe it has customers in other parts of the world too, such as Australia, Singapore and South Africa. And of course the company is looking at China too, confirms Goetzenberger.

In fact, there is already a Daimler Financial Services’ leasing company in the world’s largest car market.

What about being captive or multi-brand? Once again it’s the Gero Goetzenberger mantra of ‘the customer is in the lead’. “We felt the need for a complete and wider offer. Two to three years ago customers started asking for other services because we were performing so well. We are ready to serve

Gero Goetzenberger, Head of Daimler Fleet Management: “No one should ignore the trend towards mobility.” them.” DFM offers the full range of multi-brand services, but stays of course first and foremost the captive of the Daimler brands.

The future “No one should ignore the trend towards mobility,” Gero Goetzenberger warns. He believes that the relationship with the car is changing amongst the younger generation.

“Today’s city dwellers are looking at flexible mobility solutions – such as mobility cards – with greater levels of interest than they have ever done”. DFM offers corporate car sharing and has integrated car2go and mytaxi from Daimler Financial Services into its offer to meet the needs of customers.

But hasn’t mobility been talked about as the next big thing for some time? Gero Goetzenberger acknowledges this: “There were gaps in the mobility ecosystems. The connectivity needed was not in place,” he says. Taking a look around the recent IAA Motor Show in Frankfurt those gaps are being filled. “The missing pieces are coming together. Cars are becoming connected, and connectivity leads to mobility.” ■ Steven Schoefs

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BUSINESS I Volkswagen

Relationship between Volkswagen’s fleet division and its captive lessor ‘unaffected’ by LeasePlan sale Will Volkswagen Group’s sale of its stake in LeasePlan affect its relationship with its captive lessor, Volkswagen Financial Services? No, affirm Martin Jahn and Knut Krösche, both head of International Fleet – Jahn at Volkswagen Group, Krösche at Volkswagen Financial Services. Growth and change are coming nevertheless, they reveal.

Gentlemen, how important is fleet for your business?

Martin Jahn : Fleet represents about a third of Volkswagen Group sales. In Europe, more than two thirds of fleet sales are realised through car leasing. So it’s important to have a strong leasing arm, also for fleet leasing. Volkswagen Financial Services is one of our preferred partners, together with all main leasing companies. For us, it’s important they develop a full-service leasing capacity in Europe and around the world”.

activities at Volkswagen Financial Services, the time has, in our opinion, now come to hand LeasePlan over to new investors.”

Knut Krösche : “One of our main rules is to support Volkswagen Group brands wherever they are present, also in fleet matters – whether it’s financial lease or full-service lease.

Volkswagen Financial Services has always been a bit hard to pin down. What are you: a captive or a multibrand company?

K. Krösche : Let’s say we’re a multibrand captive. We’ll never forget our roots, and our captive business is still our main focus. But in international fleet business, you simply have to have multibrand capability. We started building ours three years ago, and we want to get to a share of 15-20% of other brands in our portfolio.

Volkswagen Group no longer is a shareholder in LeasePlan. Will that affect its attitude towards Volkswagen Financial Services?

M. Jahn : I don’t see why. LeasePlan was always managed independently from its shareholders and therefore, internal competition or cannibalism was not an issue. With the expansion of Volkswagens own fleet management

Martin Jahn, Managing Director of Volkswagen Group Fleet International.

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K. Krösche : “Agreed. Our working relationship with Volkswagen Group will not change. But for the outside world, it is now very clear that we are the financial services provider for the Volkswagen Group – also with regard to the fleet business. And that clarity is an advantage for us.

How are you going to attain those percentages?

K. Krösche : Since we’ve just started with this, there will be growth. It’s important we get our customers to recognise

Knut Krösche, Head of International Fleet, Aftresales and Used Car at Volkswagen Financial Services

they have the multibrand option with us – for now, too few know this.

Volkswagen Group already is the most important OEM for fleets. So what’s next?

M. Jahn : Our strategy is to cover all segments and markets, to our customers’ satisfaction. Product is one part of the answer, and we have excellent products in terms of drivability, and TCO. Coverage is another. Our coverage is fantastic in Europe and very good in South America, where we would like to expand.

Markets like Russia and China are though but we keep selling cars and servicing our clients, although we realize that these markets will stay challenging for quite some time. In North America, we’ll improve our coverage in 1 or 2 years, when we’ll bring at least 2 major products onto that market.

How important is Europe for you?

K. Krösche : We have 38% business in Europe without Germany, with Germany it’s more than 60%. But we see growth outside Germany, especially in Europe, not just in large fleet business, also in medium and small fleet business. Of course, in Brazil or Russia we face the same problems and challenges as the brands themselves: if they aren’t selling, we as captives experience that as well.

How do you feel about electric mobility?

M. Jahn : We have a very good range now, but there is less customer interest than predicted. So it would be good if governments would step up with infrastructure and incentives, like in the Netherlands and Norway. After all, they pushed the development of EV and CNG mobility. ■ Steven Schoefs

Russian gambit, Turkish delight Will things get better soon in Russia?

M. Jahn : It’s very simple: Russia will remain a problem as long as the oil price stays under $100. The current crisis is not the result of the war in Ukraine or the sanctions. The money just isn’t there anymore. But we remain committed to Russia and will continue to produce cars there, even if unfortunately with little prospect of profitability.

You’ve re-entered Turkey. What are the challenges there?

K. Krösche : The Turkish market is actually growing, and is doing quite well. The market is challenging because the price level is lower than Europe. But it is a promising and dynamic market where we expect positive development further on.

BUSINESS I Nissan

“Europe is crucial for Nissan’s LCV ambitions” On 1 September, Nissan Europe launched a 5-year, 160,000-km warranty on all its Light Commercial Vehicles.

That unique offer is just one element of the brand’s plan to focus on Light Commercial Vehicles sales growth, explains Paolo D’Ettore, Nissan’s brand-new Chief Marketing Manager for LCVs in Europe.

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Our Alliance with Renault aims to become the world-leading LCV manufacturer by 2016. As Nissan, we have consistently sold more than a million LCVs every year since 2011. They represent 20% of Nissan’s global sales. Europe has a crucial role to play in our ambitions because of our strong industrial footprint here. Since 1980, our plants in Barcelona and Avila have produced over 3 million LCVs, for Europe and beyond”.

Where do you see growth opportunities?

“There is growth on a global scale. Also in Europe, after years of stagnation. Over the past 5 years, Nissan has focused on growing its passenger car sales. Our challenge now is to replicate that for LCVs”.

How? “We have a number of strong points. Firstly, our product line-up. We are virtually the only manufacturer offering anything from small, car-derived vans over pickups to trucks, like the 3.5 and 4.5 ton NT400 Cabstar and the 7.5-ton NT500. The latest addition is the NP300 Navara, presented at IAA Frankfurt. It is the new benchmark for the pickup segment in Europe”.

There’s also your extended 5 year/160.000 km manufacturer’s warranty.

“That’s the second element. Customer clinics around Europe learned that such a warranty was the preferred option of several offers we proposed. The warranty is a unique offer on the European market, delivering peace of mind to our customers”.

“Thirdly, we’re upgrading dealer standards across Europe, aiming to provide attractive sales and after-sales services, once again based on customer feedback. That’s what we’re doing now, but there is more to come – watch this space!”

How has the organisation itself changed to support these growth ambitions?

“We’ve created a new Director for LCVs in Europe function.

Ponz Pandikuthira will take the lead on all things LCV, from sales and marketing to the financial aspect”.

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“Our extended LCV warranty across Europe 5 Year/160,000 km - is a unique offer on the European market, delivering peace of mind to our customers”, says Paolo D’Ettore, Chief Marketing Manager for Nissan LCV in Europe.

Does your sister brand Renault play a part in your LCV ambitions?

“The Alliance generates a lot of synergies, in manufacturing and in expertise. But from a commercial point of view, Renault and Nissan remain independent from each other. But we do believe that there is plenty of space on the market to allow us to jointly become the world’s leading LCV manufacturer”.

What can we expect for electric powertrains?

“Fleet customers increasingly focus on the green angle. We have two strategies for this. First, improving the technology on conventional powertrains to reduce emissions and improve fuel efficiency. The Navarra is a good example: with an emission of 167 grams of CO2/km and fuel consumption of 6.3 l/km, it’s best in class”.

“The second axis is our pioneering zero-emission EV technology, as used in the Leaf, at 200,000 units sold the world’s best-selling electric vehicle. We’ve extended zero-emission technology to LCVs, offering the e-NV200”. ■ Steven Schoefs

BUSINESS I ARI

The transparency challenge North American fleet management specialist ARI has launched European operations with a strategy of giving fleets total visibility of the cost of running a vehicle – in contrast to the closed books it sees among full service leasing companies.

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We entered Europe in the UK almost four years ago with our first acquisition and we have made four acquisitions in continental Europe over the last couple of years” says Mark Bryan. “Our focus is on the major economies in Western Europe and building an operational presence there and we are very pleased with our progress so far”.

“We are providing full service, maintenance and repair authorisation; full vehicle remarketing capabilities; as well as acquisition and supply chain capabilities. In the UK and Germany, we offer fully unbundled service offerings where clients can partner with us for all or some of those services. Our plan is to be fully operational in six Western European countries in the next 18 months and we will continue our European expansion from there”.

We will bring a transparent, flexible open end lease funding option, along with unbundled fleet management services to fleets who enjoy the benefits of finance leasing or outright purchase today.

Majk Strika, Managing Director Europe

How many vehicles does ARI operate?

Majk Strika : We manage over 1.2 million vehicles globally.

What is driving the growth of ARI? Mark Bryan: We see a growing demand for an alternative approach to full service leasing with more transparency and more focus on TCO. Full service leasing is going to be a viable option for the foreseeable future, but we think it’s more geared to risk mitigation. We come to market with a solution that offers a lower TCO. We perform the same activities as a leasing company, but instead of getting a fully bundled number, we are going to pass through the expenses on the vehicle as they occur.

Will ARI move into the vehicle funding market?

Henning Schick: ARI will not enter into this particular financing model.

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Mark Bryan, Senior Vice President European Operations

Henning Schick, Director Sales Europe

What’s wrong with full service leasing?

M. Strika: The first hurdle is the limitation on asset types: the typical players are limited to some asset types where we offer a holistic transparent service methodology to all vehicles in a fleet covering forklifts, over transporters, passenger cars, LCVs and heavy trucks in a one stop shop.

The second is that it is not TCO optimal.

There is a misperception among customers that they have a risk they need to outsource. They think that they cannot manage it so they hand it over to the full service leasing companies. But they are not aware of the premium they pay or the risk they really want to avoid. We just want to come with an alternative model and tell customers, your risk portion is X, you can manage it to Y, and the price for this is Z. Whereas the lease companies tell them, here is the full service lease price and don’t worry about any of the commercial terms.

What we provide to end customers is exactly what leasing companies do internally for the cars they own and lease out to clients. They themselves operate a pay-as-you-go model so they make sure that they would never spend more on vehicles than they charge to clients and on top make margins in that loop.

This is what we do for our clients: we give them the transparency, our expertise and networks to make sure their fleet spend will be reduced to the minimum. We cut out all hidden margins. ■ Steven Schoefs

SMART MOBILITY I Connected car technology

A cause for concern The rise of the connected car is causing great excitement, but concerns over cyber-security could be about to cast a long, dark shadow over their adoption. Fleet Managers and corporate fleet suppliers are on the edge of managing not only cars but also e-security.

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he connected car will soon to become the norm rather than the exception on Europe’s highways.

Hitachi - the Japanese electronics giant predicts that 90% of vehicles will be connected to the internet in some form or other by 2020.

Whether it’s pushing automakers to do more to bring connected cars to market, or being the first movers in adopting cutting-edge connected car technology, fleet professionals are playing a pivotal role in the evolution of the connected car.

Connectivity is causing a stir in fleet circles for good reason too. Connected cars offer fleets fresh opportunities to make cost savings, optimise driver performance and change how a business utilises its vehicle assets.

was forced to issue a voluntary recall, affecting 1.4 million vehicles in the United States, after security researchers demonstrated how a Jeep Cherokee could be hacked into via its internet connected infotainment system. Charlie Miller and Chris Valase, the researchers behind the breach, broke the news in tech magazine Wired. The pair took control of the dashboard, steering, transmission and brakes of a Jeep that was being driven by a Wired reporter.

Around a month later Miller and Valase shared a platform at the Def Con hacker conference in United States and revealed some of their secrets to other security experts.

With regard to connectivity and security, automotive needs to benchmark itself with more complicated giants like aviation.

Big opportunities exist, but beware of the risks There’s certainly a lot to get excited about, but fleet managers also need to exercise caution. Connected cars are far from risk free. Cybersecurity and hacking are big topics of conversation. High tech, internet enabled controls present numerous access points for unscrupulous individuals to break into a car’s operating system and cause chaos.

Frost & Sullivan’s Automotive & Transportation Research Manager, Praveen Chandrasekar believes it’s critical that the auto industry fully understands the threats and takes action. “Cyberproofing the electronic control unit (ECU)loaded, modern-day smartphone on wheels is crucial for OEMs who are gearing up to introduce level two and three automation and connected features.” said Chandrasekar in a Frost and Sullivan webinar recently.

Cars come under attack A number of high profile security breaches have raised awareness of the risks in recent months. Fiat Chrysler

When Fiat Chrysler announced the Cherokee recall, Miller cheekily tweeted: “I wonder what is cheaper, designing secure cars or doing recalls?”

I think we all know the answer to that.

Fiat is not only automaker that’s in the dock. Volkswagen has also found itself at the centre of a media storm. Bloomberg broke the news that Volkswagen had spent the past two years trying to suppress expert research that claimed thousands of its cars were at risk of electronic car hacking.

Bloomberg says Volkswagen had been granted an injunction by the United Kingdom’s High Court in 2013 to prevent the publication of a research paper that identified a weakness in the Radio-Frequency Identification (RFID) transponder chips used by the company.

The car manufacturer argued that publication of the paper could lead to vehicles being stolen. After long negotiations with the researchers, Flavio Garcia from the University of Birmingham in the United Kingdom, and Roel Verdult and Baris Ege from Radboud University in the Netherlands, Volkswagen allowed the paper to been published on condition one sentence was redacted.

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SMART MOBILITY I Connected car technology

Anything that’s connected to the internet is at risk from the dark arts practiced by hackers. Also connected fleet vehicles.

It turns out the academics had found a way to hack the Megamos Crypto transponder which is used in brands Audi, Porsche, Bentley and Lamborghini, as well as in Volvos, Hondas, Fiats and Maserati models.

It sounds far-fetched, but didn’t the concept of the connected car sound fanciful just a few years back? High tech crime is on the rise. It offers criminals the chance to make big money.

Cyber-crime is on the up Criminal gangs are taking advantage and getting increasingly tech savyy to steal cars. In London, United Kingdom, keyless car theft accounts for a staggering 42 per-cent of stolen vehicles. Criminals use a key-cloning system to gain entry and, once inside, are able to drive away in seconds.

Get ready According to Frost and Sullivan’s Chandrasekar the automotive industry needs to acknowledge the increasing risk of security and benchmark itself with more complicated giants like aviation if it’s to meet the challenge. “The rest is all about working with IT and cyber security specialists to use their expertise,” he says. Fleet managers, a valuable source of insight and information, also have a role to play.

Is there a patch to solve the problem? It appears not. The police advise investing in good, old fashioned steering and gear stick locks. And you thought high tech solutions were always the answer, didn’t you?

With in-car connectivity becoming increasingly commonplace we’re going to more and more fleet vehicles exposed to hackers. “The connected car is already a reality, and in-vehicle wireless connectivity is rapidly expanding from luxury models and premium brands, to high-volume midmarket models,” says James F. Hines, research director, Gartner.

Corporate espionage Car hacking may open up other challenges for fleet managers to contend with. Corporate espionage is one. Just image how valuable data is on where sales teams are travelling or whom senior managers are meeting could be to a company’s competition. Hackers could also stop fleets dead in their tracks and attempt to exhort money.

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Anything that’s connected to the internet is at risk from the dark arts practiced by hackers, and fleet managers could soon be called on to manage e-security. The big question is: Are you ready to respond? ■ Jonathan Green

Top tips It’s good to talk: Tech moves at pace, so get engaged in the conversation before you get left behind. Reach out to your peers and speak to suppliers to get a sense of what’s happening.

Ask the experts for advice: You’re not an expert in internet security, so talk to stakeholders that are.

Take action: Put together a plan and take action. The connected car tech won’t wait for you. Be ready to respond.

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SCOPE I GM Global Fleet Strategy

“GM offers you the right combination of cost-efficiency and ease of management” As one of the world’s biggest car manufacturing groups, General Motors can offer services that you wouldn’t necessarily associate with an OEM. Like GM’s uniquely global approach to fleet management. “It makes sense to leverage our presence in over 160 countries to service our international clients”, says Steve Higgs, Global Fleet Development Director at GM. GM has has a Global Fleet team in place since 1998, to provide a one-stop shop to its international clients. The approach mirrored GM’s own internal organisation, says Higgs: “We already had a global purchasing team. So why not let our customers also benefit from our global presence?”

What are GM’s Global Fleet goals?

“Of course, sales and volume are key.

But our Global Fleet strategy goes far beyond that. Internally, it allows us to detect best practices and share initiatives and leverage that knowledge in developing markets”.

“For the customer our Global Fleet strategy translates into ease of mind in terms of fleet contacts and into cost-efficiency via multiregional deals. On top of that, we also give advice and share knowledge on issues that are important to our customers, such as car policy, taxation, etc”.

How many clients do you have of an international or global calibre?

“It’s in the neighbourhood of 50.

Of course, that implies that there are still plenty of opportunities out there. We believe that Global Fleet management still has a bright future ahead – as multinational companies continue to seek the right combination of cost-efficiency and ease of management. And that combination is exactly what we offer”.

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Steve Higgs, GM’s Global Fleet Development Director: “If you want a global partnership, you need someone who can supply you globally.”

Steve Higgs’ advice for fleet managers looking globally “The first point is that customers shouldn’t think that the approach that they’re used to from their own culture is going to work everywhere else. You need to have an open mind. Vehicles may be used in a completely different way from region to region”.

“The second point is that you have to have a regional buy-in from within your corporate group. So you need a European, North American, South American, Asia-Pacific input. If not, the global approach is not going to work too well”.

“The third point is that it’s not all going to get done in the first year. It’s going to take a lot of time and a lot of work. It’s best to tackle the countries that want to do this first, and the others will gradually fall in line. Don’t dictate from the centre and expect everyone to comply. Change is not always easy to people. So demonstrate that leveraging buying power will ultimately be to their advantage”.

“Fourth point: work with local suppliers wherever you can. Not just because of taxation, but also for speed of delivery. You don’t want to pay extended leases because you can’t get the replacement vehicle in on time”.

“And finally – if you want a global partnership, you need someone who can supply you globally.”

The new Opel Astra family seems the right fit for Opel’s fleet strategy in Europe focusing on the user-chooser and the small business segment.

Opel fleet sales are up 10% in Europe Opel’s fleet sales this year are 10% up over last year. “That success is responsible for much of our overall market share growth in Europe”, says Ian Hucker, Executive Director Sales Europe for GM’s main European subsidiary.

Ian Hucker sees two elements to that story: “A lot of Europe’s recovery is fleetdriven. Our product line-up is in a really great position to benefit from that.

Second element: we’ve initiated a commercial vehicle growth strategy a year or so ago, and that’s starting to pay dividends. Our new products are sellling spectacularly well”.

Fleet now represents roughly half of Opel’s business in Europe, and that share could even increase. “Let me put it this way: it’s a great time to bring the new Opel Astra to market”, says Ian Hucker. “Making an impact in the user-chooser segment and the small business segment: that’s where we see our future growth happening”.

GM has regional fleet directors.

How do you define their regions?

“We work a bit differently from most other multinationals. Our North American region comprises the U.S., Mexico and Canada, South America is focused on Brazil and Argentina and neighbouring countries, with a subdivision for Central America – Panama, and others. Europe is both east and west for us. China is so big that it’s a region on its own. All the rest is GM International for us: AsiaPacific, the Middle East, Africa and even Australia. That’s a pretty big region, but most countries are low-sales countries”.

Your regional approach doesn’t match the traditional per-continent approach. Why? “Because it matches our internal structure at GM. However, we always work to match the customer structure. My global group handles the internal communication and process between GM’s internal structure and the customers”.

If I’m an international fleet manager in Europe and I have global requirements, who do I talk to at GM? “First, your local account manager.

Then, the European regional group.

And then my team. I get involved early, to understand the nature of

the customer’s global need. But I’m not senior to the regional fleet directors. I just facilitate.“All global programmes work from the bottom up: local to regional to global. Without the support of all the customers, the local and then the regional managers, a global programme will not work. But the benefits of leveraging procurement and single points of contact are great”.

Does global fleet management as such still has a future?

“We’re witnessing a gradual change in global corporate culture. Global fleet managers are increasingly reporting through to Procurement. HR also has an input, but Procurement are beginning to have the final decision. OEMs and other suppliers need to be aware of this and make sure that Procurement are happy. But it’s fleet managers, at the end of the day, who are responsible for ensuring that their drivers are happy with the vehicle they’re driving. GM always tries to work with all parties involved”. ■ Steven Schoefs

GM Global Fleet Discover GM’s Global Fleet structure on globalfleetdirectory.com

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SCOPE I Case study AGCO

Balancing regional and national differences Ralf Wessel is in a relatively unique position. Having started his career in his native Germany, he then moved over to the United States to take on the global fleet of agricultural company AGCO. This puts him in a position to comment not just on how European countries differ among themselves, but how they differ from other regions too – especially the United States.

The AGCO fleet is not especially large in global terms, but it covers vast areas of the world. The company has vehicle fleets in North and South America and in Europe, but also in Australia and New Zealand, South Africa, Russia, China…

“We work through a global leasing provider, although when you are in as many countries as we are, global is never totally global”, says Ralf Wessel. “There are restrictions in some countries, China in particular.

So in some countries you have to be somewhat creative to find the right solutions. Our leasing company has direct contact with drivers in most countries in Europe, and elsewhere too where it is appropriate. They handle re-ordering, supply, any technical issues”.

And can he organise global contracts?

“Where manufacturers are concerned, we have benefit vehicles and job-allocated vehicles. For the joballocated vehicles, we only use two manufacturers and we have regional contracts because we are not quite big enough to have global contracts”.

In the largest European market, Germany, the car really is seen as a status symbol.

Do you have local or regional fleet managers reporting to you?

Ralf Wessel: Yes, there are a total of five of them. There is someone in Europe, in South America, in China in Australia and someone in South Africa. They all report to me on fleet-related issues.

to the car, at their own cost. They may want leather seats for example, rather than the fabric seats which come with the model involved. The value of the options they can put in the cars is limited to 20% of the value of the car. We do not allow options to be added in North America.

Europe is notorious for its variety of markets and for its different national preferences. Being based in the US, how do you see these differences?

R. Wessel: There is a difference in the way we operate in Europe compared to, for example, North America. The cars are pre-configured to certain standards in every country, particularly where safety equipment is concerned. But in Europe, drivers are allowed to add personal options

Do you find a lot of differences in Europe from one country to another?

R. Wessel: I think the biggest differences in European countries surround the expectations of the driver and the status that a vehicle brings. In the largest European market, Germany, the car really is seen as a status symbol. Drivers want the biggest, the best, the meanest vehicle they can get, whereas this is not such a big deal in other European countries. And the drivers in Germany are willing to pay the extra money from their own pay-checks in order to project this type of impression to others.

About AGCO AGCO is a global leader in the design, manufacture and distribution of agricultural equipment. AGCO supports more productive farming through a full line of tractors, combines, hay tools, sprayers, forage equipment, grain storage and protein production systems, seeding and tillage implements and replacement parts. AGCO products are sold through five core equipment brands, Challenger®, Fendt®, GSI®, Massey Ferguson® and Valtra® and are distributed globally through a combination of approximately 3,100 independent dealers and distributors in more than 140 countries. Founded in 1990, AGCO is headquartered in Duluth, GA, USA. In 2014, AGCO had net sales of $9.7 billion.

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How do you deal with the question of national local brands in European countries?

R. Wessel: We look at the vehicle configuration, and when we consider the benefit cars, we always allow a

“In Europe, drivers are allowed to add personal options to the car, at their own cost”, says Ralf Wessel, Manager Global Security, Global Fleet and Corporate Facilities. “In North America adding options is not allowed.” regional manufacturer to be included in the offering. For example, although our main brand in Europe is German, we allow a French manufacturer to be included in the list in France. But we only allow one local manufacturer per country, the drivers cannot choose from a range of different local brands.

The ‘green’ issue is very important in Europe, but generally considered to be less so in other markets, including North America. How do Ralf Wessel and AGCO approach this subject?

The answer is that in Europe the fleet is entirely diesel, with relatively small engines. In North America the demand for high powered smaller gasoline engines has increased – AGCO is therefore utilizing Ecoboost technology in many of its existing vehicles choices. Recent news also raised the question if some of the diesel vehicles are really as clean as they claim to be. There is also the fact whereas diesel fuel in Europe is often similar in price – and in some countries substantially cheaper – than gasoline. In North America it is even more expensive than gasoline

and has been for a long time. These facts combined - makes going green on a Global basis with diesel a difficult task. But what Ralf Wessel is doing in North America is to move towards some of the smaller sized, modern and efficient petrol engines.

There is a current review to see how CO2 emissions limits could work within the fleet.

we organize training ourselves for all of our North American drivers, including DoT compliance for those concerned. In As part of AGCO’s ongoing safety initiative - every North American driver’s driving record will be checked on an annual basis.

Current restriction and European privacy laws make these checks in Europe impossible.

Staying with the green and safety issue, do you organise driver training?

R. Wessel: Yes, we do. In Europe there is the insurance question and corporate social responsibility, but in North America the regulations in this domain mean that driver training is an absolute ‘must’. So

In an effort to combine the need for ongoing training and in consideration of the uniqueness of each country - AGCO is working on global driver training modules which will be launched through its own university. ■

Tim Harrup

The Fleet Identity Card Name : AGCO Sector of activities : Agricultural equipment Headquarters : Duluth, Georgia, USA Fleet manager : Ralf Wessel Job title : Manager Global Security, Global Fleet and Corporate Facilities Number of vehicles : 2,200

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SCOPE I News Gruau targeting international growth LCV manufacturer/coach-builder Gruau is expanding its international ambitions. It wishes to see business outside of its home territory France, account for some 40% of its turnover. It is therefore embarking on a path of joint ventures and partnerships to create business in Germany, the UK, Russia and Brazil.

Jean-Baptiste Pivard, Purchasing Manager for L’Oréal Nordics.

L’Oréal appoints Fleet Logistics The Nordics division of cosmetics company, L’Oréal, has appointed fleet management specialist Fleet Logistics to manage its fleet of 380 vehicles in four Scandinavian countries. Fleet Logistics is responsible for all aspects of the L’Oréal Nordics fleet management in Denmark, Norway, Sweden and Finland - from vehicle acquisition employing its multi-bidding solution to select the most attractive acquisition costs for each new vehicle added, up to driver support.

Corporate car-sharing at LeasePlan

Arval launches Mobility Link

Italy is one of the countries where LeasePlan is currently piloting a corporate car-sharing solution it intends to further roll out across Europe next year. Taking full advantage of existing car-sharing technology, LeasePlan Italy is applying the lessons learned by private initiatives and applying them to the B2B environment. At present, the lease company is piloting a solution in-house, aiming to expand the pilot to clients within two months, and to go live soon afterwards. In a first stage, LeasePlan Italy is putting the solution to work within individual companies; eventually, it can also work for multiple companies sharing one and the same vehicle fleet.

Arval has presented Arval Mobility Link in the Netherlands. With this new digital platform, that is compatible with the fleet management portal My Arval, the car leasing company offers clients in the Netherlands a tool to not only follow and manage the company car drivers but the mobility package of all employees. With this platform, developed in collaboration with Mobility Concept, Arval enters the world of the Mobility Budget. The goal is to go live at the end of the year and to soon roll Mobility Link out to other European countries, like Belgium and Luxemburg.

Ubeeqo expands with Danone Ubeeqo, part of Europcar, has expanded the applications used by its client Danone, within the context of its corporate mobility concept. The food manufacturer has equipped all of the vehicles at its Paliseau site, in the Greater Paris region, with on-board telematics.

Frank Witter new CFO of Volkswagen Group

Frank Witter, new CFO of Volkswagen Group.

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Frank Witter has been appointed new Chief Finance Officer of the Volkswagen Group. Witter was the former CEO of Volkswagen Financial Services. He started working for Volkswagen Group in 1992, and has been CEO of Volkswagen’s captive leasing and financing subsidiary since 2008.

Ian Hucker, new Executive Sales Director at Opel Europe.

Promotion for Ian Hucker at Opel Ian Hucker, currently Opel’s Director European Fleet, has been appointed as Executive Director Sales for Opel Europe. In his new role, Ian Hucker will be responsible for sales throughout Europe (excluding the UK, Germany and Russia) in both retail and fleet.