Fleet Europe °91 by Nexus Communication

FOR INTERNATIONAL FLEET & MOBILITY LEADERS

#91

06/2017

DOSSIER CAR LEASING AND FLEET MANAGEMENT

Nexus Communication - Fleet Europe #91 - Periodic magazine - June 2017 - Deposit Office LiÃ¨ge X

20 PAGES

EXCLUSIVE Strategy talk with Tex Gunning, CEO LEASEPLAN CORPORATION

FACE TO FACE Luigi Fanizzo (Epson Italia) / Robert Satiri (Colacem SpA)

ANALYSIS Short Term Rental taking the Mobility lead

Parking Innovation: Park outside the box p.45-46

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CONTENT LOOKING FOR THE NEW BUSINESS MODEL Two trends are transforming fleet management and car leasing in the digital age. One, flexible service offerings are increasingly modelled on usage rather than ownership. And two, the ever closer relationship between suppliers and end users is converging the B2B and B2C markets. All fleet management and car lease players are investing heavily in this new ecosystem. But as LeasePlan CEO Tex Gunning explains in our exclusive interview, the industry should not forget its core business: managing big, international fleets. However, with the rapid transformation in technology, lease and fleet management companies must change their business models now, warns our expert Pascal Serres. In a fast changing competitive landscape the customer will not wait to select the best possible partners to support his future employee mobility strategy. Those changing business models will be central to the Fleet Europe Forum 2017, which focuses on Uncovering the DNA of the fleet and mobility professions of tomorrow. Want to know what to expect from the future of fleet management and car leasing? Go register at forum.fleeteurope.com. Steven SCHOEFS Chief Editor, Fleet Europe

5-31 DOSSIER Car Leasing and Fleet Management 2017 The international presence and strategy of the major car lease and fleet management providers. Strategies and Objectives for 2017........................................................................ 7

Looking for transparency in the Request for Quotation.................... 24

European and global presence............ 14

The role of Local Heroes in International Car Leasing ........................ 28

Eight Fleet Management Faces of the Future ..................................................... 21

REMARKETING

EXPERT

EU-wide Fair Wear & Tear “by 2018”

Pascal Serres on Business Model of Car Leasing

72 FLEET EUROPE AWARDS Michiel Alferink is Jury President 2017

FACE TO FACE

“Safety is paramount”, with Robert Satiri, Colacem SpA, and Luigi Fanizzo, Epson Italia………………………………………………………………………………………………………………………… 32

INNOVATION

Cultivating self-reinvention……………………………………………………………………………………………………………………………… 41

MOBILITY

Innovation in parking……………………………………………………………………………………………………………………………………………… 45

BUSINESS

Exclusive Interview: Tex Gunning, CEO of LeasePlan Corporation…………………48

20 YEARS OF FLEET EUROPE

The Impact of the Digital Revolution……………………………………………………………………………………………………… 52

REMARKETING

28 SEPTEMBER

5&6 DECEMBER

IFMI WEBINAR

Remarketing Forum 2017: Get ready for the Remarketing of the Future……………………………………………………………………………………………………………………………………………………………………… 60

ANALYSIS

Short Term Rental going Mobility…………………………………………………………………………………………………………… 64

2017 FLEET EUROPE SUMMIT Estoril

MANAGEMENT

Between governance and roll-out………………………………………………………………………………………………………………69 Fleet Europe Awards 2017: A celebration of supplier innovation………………………… 73

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DOSSIER

AGILITY REQUESTED STEVEN SCHOEFS Chief Editor @StevenSchoefs

Nowhere is car lease and fleet management more mature than in Europe. Suppliers already have a huge footprint in the region, so better serving the needs of their international clients is an obvious opportunity to expand. This trend will likely lead to more consolidation in the industry, meaning that a smaller number of suppliers will divide the growing international lease and fleet management pie amongst themselves. Amplifying that trend is not just the fact that outsourcing is increasingly popular among smaller companies, but also – mainly – the rise of a new business principle: choosing the right mobility mode for the right occasion. Hence the rise of a wide range of flexible and dynamic new concepts in leasing and fleet management, not just for the user-chooser, but also for employees traditionally not entitled to company cars. But success will require more than a large footprint and a wide range of products and services. To lead the market, lease and fleet management providers must be agile and tune in to the enhanced efficiencies in management, control and communication, by embracing connectivity and digitization – and by responding quickly to the emerging competition from new players in the B2B2E mobility equation.

FLEET EUROPE #91

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Combined fuel consumption and CO2 emissions for the Superb model: 3.8–7.2 l/100 km, 100–165 g/km.

DOSSIER

Strategy 2017 with focus on mobility and connectivity Frank Jacobs @FrankJacobs

How do fleet suppliers face the challenges of the future? Each fleet management and lease company – captive and multibrand – has a different strategy and vision. We asked all these three questions. Judge for yourself.

1 Strategy highlights for 2017? 2 Future business model of the fleet and lease industry 3 Geographical expansion

As part of its overall strategy, which remains to deliver unbundled fleet management solutions for true TCO transparency, ARI is currently finalising an innovative, flexible, open-end financing model to address upcoming changes in International Financial Reporting Standards (IFRS).

2 © Donar Reiskoffer, CC BY-SA 3.0

For ARI, comprehensive data analytics – turning raw data into actionable info – could reshape fleet management within five to 10 years. The company anticipates a wave of advanced driver behaviour management tools, for example. But the main shift it anticipates will be from full-service operating lease contracts to pay-as-you-go models, similar to evolutions in the music industry (why buy the album if you only want the single?).

3 Today's car fleet management companies mark the importance of new mobility patterns supported by technological efficiencies in their strategic outlook. FLEET EUROPE #91

ARI has invested heavily in the UK and Germany over the past years. While it is committed to the European marketplace, it has not opened any new subsidiaries over the past year, and aims to focus on its current network for the foreseeable future.

DOSSIER

Arval is rolling out a number of new and/or upgraded products this year. These are Arval ActiveLink, a bundled offer of a number of telematics solutions that was first introduced in 2015; Arval Outsourcing Solutions, a full outsourcing service already available in 7 mature markets; Arval MidTerm Rental, a successful flexible fleet solution; and Arval Private Lease. The company is also stepping up its efforts in the car-sharing and consulting areas.

As the mobility model shifts from fleet to mobility management, Arval is convinced that 80% to 90% of its business in 2020 will still be centred on the car. The rest will be a range of services for which it seeks to integrate seamlessly with third parties.

Acquiring the GE's European business allowed Arval to enter the Swedish market. And via its global alliance with Element Fleet Management, it recently partnered with RDA Renting in Argentina.

Free2Move Lease is up and running in France and the UK since the start of January, in Germany since the start of March and in Spain since early April. The main strategic objective for 2017 is to launch the business in further key European markets like Italy, Belgium and the Netherlands – and eventually in other regions of the world.

Free2Move Lease can take full advantage of its central position within PSA’s Free2Move initiative to offer its customers a combination of innovative mobility services plus up-to-date fleet management capabilities – by working with PSA’s ecosystem of startups (Car Jump, Travelcar or Koolicar among others). This allows Free2Move Lease to not only offer multibrand operational lease, but also wider mobility solutions such as fleet-sharing, in order to reduce the total cost of mobility.

See 1.

Athlon’s recent acquisition by Daimler Financial Services have given it new prospects on mobility, sustainability and customer experience. The company aims to merge and innovate various propositions to further strengthen and create one-stop-solutions for innovative mobility, at the fingertips of its customers.

As Athlon Car Lease, the company already was involved with electric mobility, the internet of things, flexible business models, disruptive new players like Uber and Google, and other aspects of the ongoing mobility revolution. Its new name, simply Athlon, reflects its understanding that that revolution goes way beyond leasing. Athlon is in the mobility business, and aims to get everyone from A to B – employers, employees and private individuals.

The acquisition by Daimler Financial Services has opened up Austria and the UK, where Daimler Fleet Management is active. But the partnership between Athlon and UK’s Lex Autolease continues. Growing the global footprint is a goal, so new markets are always under consideration.

Business Lease is transitioning into a full mobility service provider, first and foremost in its home market in the Netherlands. The first measures will be implemented this year. The company also sees opportunities in private lease, and is focusing on scaling up its lease and fleet management business in Central and Eastern Europe.

The company foresees a growing and increasingly diversified demand for mobility solutions. In order to offer the mobility mix that allows it to offer its customers the tailor-made solution they need, Business Lease is investing in connectivity, smart mobility and alternate powertrains.

Business Lease has a close eye on the Central and Eastern European region for future expansion, in response to the expansion and demands of its customers.

FLEET EUROPE #91

DOSSIER

The internationalisation of Leasys, FCA's Italian multibrand leasing company is central to FCA Bank's growth strategy. The strategic objective for FCA Bank is to increase its full-service leasing and fleet management business throughout Europe by targeting the true fleet segment, in particular corporate, SME and private customers â&#x20AC;&#x201C; both via direct sales and indirectly via the FCA dealer network.

FCA Bank sees a growing demand for full-service mobility solutions from large fleet and business customers, and for simple, flexible usage models rather than ownership from private customers â&#x20AC;&#x201C; in order to save money and be more environmentally sustainable. Underlining the growing importance of e-commerce, Leasy's private lease products can be purchased from Amazon.

The principal objective of 2017 is to open new Leasys branches in Europe: in Spain, France, UK, Germany and Belgium, and by January 2018 also the Netherlands.

Continuing on the course it started in 2011, Volkswagen Financial Services is further developing and strengthening its product portfolio in all markets across Europe and around the world. The company aims to harmonise existing services as well as introduce new ones, in order to service the needs of its international customers.

Volkswagen Financial Services sees classical fleet management and travel management growing closer together, also thanks to the ongoing shift from TCO to TCM (Total Cost of Mobility). Thanks to new technologies, mobility managers can handle the diverse needs of their drivers and other employees in an increasingly integrated way. Thanks to the growing influence of telematics, leasing contracts may become more flexible, leading to pay-per-use accounting.

In January 2017, Volkswagen Financial Services entered the Turkish market with an extended offer package for fleet customers. Outside of Europe the focus markets are USA and China.

This year, Fleet Logistics has completed a restructuring project, which will provide the basis for the exchange of resources between countries. In the second half of 2017, the company will focus on its IT roadmap, adopting the latest technology, automation and innovation for its IT tools.

Responding to the shift towards mobility, Fleet Logistics is moving from a car-centric to a user-centric business model, which while also include offering other means of transportation will maintain the centrality of the car for corporate mobility. Moving towards that future means tackling a triangle of challenges: processes, IT and organisation. In order to deliver efficiency, consolidation and standardisation to its clients, Fleet Logistics aims to become a leaner organisation.

In March 2016, Fleet Logistics started to provide consultancy-led services in North America and in May 2016 it went live with operational services in Latin America from a hub in Sao Paulo.

Under new management, LeasePlan has updated it strategic three-year plan. Key element: shifting from a multi-local organisation to a fully integrated one. Hence the name One LeasePlan. This means leveraging scale and best practices to enhance service levels.

Although the focus will stay on car leasing and vehicle fleet management, LeasePlan believes that social and technological developments are increasing both the supply of and demand for flexible mobility solutions beyond the traditional lease product. Which is why the company sees growth opportunities not just in the corporate, SME and private lease market segments, but also in mobility as a service â&#x20AC;&#x201C; by partnering with ride-hailing, car-sharing and other shared mobility companies. Telematics will lead to more efficiency, not just in cost, but also in driver safety and sustainability, LeasePlan predicts, which is why it is also pursuing an increasingly digital future.

No.

FLEET EUROPE #91

DOSSIER

The key pillar of RCI Bank and Services fleet strategy in 2017 is to open new markets to a full RCI fleet leasing offering, with a complete set of services. The main region of development will be Latin America: Brasil, Argentina and Colombia.

The new RCI Bank and Services strategy is in line with the ongoing mobility revolution, and will entail the launch this year of a new digital fleet management tool, integrating all TCO data while also featuring connected-vehicle data and geolocalisation features. In parallel, RCI pursues car-sharing and investigates a wide range of new mobility services.

See 1.

ALD International aims to continue being a global leader with a Top 3 position in all the markets where it is present and want to be the benchmark through vision innovations and technologies, becoming an innovative organisation with a strong connected car and telematics competence and a “state of the art” global mobility offer. This year parent company Société Générale will float 23% of ALD to the stock market.

Change brings opportunity for ALD International The company expects an acceleration of new mobility solutions and services, as leasing and sharing become the new norms – with cars increasingly electric, connected and digital.

ALD International continually completes its geographic coverage in line with its client business development needs. This year ALD acquired Merriott Fleet in Ireland and BBVA Autorenting in Spain, and last year there was an expansion focus on Latin America via partnerships with Autocorp in Argentina and Arrend Leasing in Central America.

The company has developed a hub structure for its leasing business to make better use of the infrastructure of its rental business, spread over 115 countries. The company will also continue to optimise its telematics solution, tailoring it for each of its markets. As for leasing, the goal is to flexibilise contracts in time. The Sixt Flexleasing product will be expanded from the Dutch markets to others.

Sixt sees a decrease in status-based usage of vehicles, and an increase in demand for flexible mobility solutions. As such, the company sees investing in online tools and partnerships as essential for survival in the mobility market.

Sixt Leasing closed its Nordic gap by opening in Norway and Iceland. Sixt Mobility Consulting will start operations in the Nordics and Poland, a mainly customer-driven expansion.

Alphabet remains focused on fulfilling individual client requirements via carefully consulted, tailor-made solutions. Last year saw the launch of AlphaFlex, a mobility budget card. This year will see updates to the AlphaGuide app, improving business mobility for fleet managers and users alike.

The one-size-fits-all approach to fleets is a relic of the past, Alphabet is convinced. More and more customers are looking for flexible solutions outside the traditional paradigms. Consequently, leasing companies are becoming mobility providers, and fleet managers are changing into mobility architects.

In January 2017, Alphabet launched in China, as part of Herald International Financial Leasing Company, the BMW Group finance services subsidiary in China.

FLEET EUROPE #91

estoril PORTUGAL

UNCOVERING THE DNA OF THE FLEET & MOBILITY PROFESSIONS OF TOMORROW If the future is today, what will tomorrow look like? An industry in flux creates uncertainty as well as opportunity. At the 2017 Fleet Europe Forum, a panoply of speakers and debaters will focus on both, aiming to minimize the former and maximize the latter.

THIS YEARâ&#x20AC;&#x2122;S SESSIONS: TWENTY YEARS OF FLEET MANAGEMENT, AND NOW? Fleet Europe celebrates its 20th anniversary this year. The industry has changed almost beyond recognition in those two decades. THE AUTOMOTIVE REVOLUTION How will car manufacturers stay relevant and avoid becoming mere commodity suppliers? SUCCESS IN THE NEW MOBILITY GAME As the sharing philosophy takes hold in the automotive world, and with a digitised future increasingly governed by the pay-by-use principle, what are the business models that will help companies not only make money but maximise profit?

WHEN? The 6th of December WHERE? At the Estoril Congress Center, Portugal

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DOSSIER THE INTERNATIONAL SCOPE 2017

ALD INTERNATIONAL

ALPHABET INTERNATIONAL

ARI

ARVAL

ATHLON CAR LEASE INTERNATIONAL

BUSINESS LEASE GROUP

FCA BANK

LEASEPLAN INTERNATIONAL

RCI

ALBANIA

AUSTRIA

BELGIUM

BOSNIA HERZEGOVINA

BULGARIA

CROATIA

CYPRUS

CZECH REPUBLIC

FLEET 2016 GRAND TOTAL

6362

64929

4080

4312

17746

GROWTH 2015-2016

11,2

1,2

5,5

32,6

19,1

SUBSIDIARY OR PARTNER

FLEET 2016 GRAND TOTAL

GROWTH 2015-2016

SUBSIDIARY OR PARTNER

Unicredit Leasing/ Business Lease (N)

FLEET 2016 GRAND TOTAL

1400

GROWTH 2015-2016

-32,4

SUBSIDIARY OR PARTNER

FLEET 2016 GRAND TOTAL

4716

52552

16429

GROWTH 2015-2016

14,7

8,1

19,4

SUBSIDIARY OR PARTNER

FLEET 2016 GRAND TOTAL

1190

50067

2800

GROWTH 2015-2016

-0,4

8,7

SUBSIDIARY OR PARTNER

Interleasing GmbH & Co KG (N)

Hertz/ Sheridan (N)

FLEET 2016 GRAND TOTAL

11500

GROWTH 2015-2016

9,5

SUBSIDIARY OR PARTNER

FLEET 2016 GRAND TOTAL

339

GROWTH 2015-2016

-20,0

SUBSIDIARY OR PARTNER

FCA FLEET SERVICES (N)

FLEET 2016 GRAND TOTAL

36565

58412

22476

GROWTH 2015-2016

4,5

6,2

12,4

SUBSIDIARY OR PARTNER

FLEET 2016 GRAND TOTAL

6489

5883

11211

GROWTH 2015-2016

18,2

81,3

8,4

SUBSIDIARY OR PARTNER

FLEET 2016 GRAND TOTAL

GROWTH 2015-2016

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

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

Sixt Cyprus Headquarters Uniwheels Car Rentals Ltd (N)

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

SIXT SUBSIDIARY OR PARTNER

VOLKSWAGEN FINANCIAL SERVICES

FLEET 2016 GRAND TOTAL

310

34231

38057

374

2219

9719

11350

GROWTH 2015-2016

675

-13,7

17,2

523,3

21,9

-20,9

37,2

Porsche Mobility shpk (N)

Porsche Bank AG (N)

Volkswagen D'Ieteren Finance (JV)

Porsche Leasing doo (N)

Porsche Mobility BG, Porsche Leasing BG (N)

Porsche Leasing d.o.o. (N)

ŠkoFIN s.r.o. (S)

SUBSIDIARY OR PARTNER

LEGEND: TF: Total Fleet 2016 funded and non-funded • S=Subsidiary • N=Network Partner • JV=Joint Venture

FLEET EUROPE #91

DOSSIER

* The figures in this overview are figures from end of December 2016, communicated by the companies themselves.

DENMARK

ESTONIA

FINLAND

FRANCE

GERMANY

GREECE

HUNGARY

IRELAND

ITALY

LATVIA

LITHUANIA LUXEMBOURG MACEDONIA

20122

1558

22482

459166

146413

3456

15559

1600

145523

1556

1849

11715

4,8

21,0

-4,2

26,3

7,5

-3,6

9,6

0,0

16,0

4,1

19,7

9,8

Johnson & Perrott (N)

<1000

/ /

Unicredit Leasing/ Business Lease (N)

<1000

35463

11,4

2079

2484

290216

67513

1109

4782

167516

4973

57,7

36,2

4,3

-0,2

10,6

10,2

10,9

13,3

Windsor Fleet (N)

49275

89298

104

6000

28386

1780

21,7

150,8

2,9

94,7

13,2

Hertz/ Sheridan (N)

Merrion Fleet Management (N)

3500

12,9

1157

32831

145

94650

951,8

-20,0

9,4

262,5

11,4

FCA FLEET SERVICES (S)

FCA FLEET SERVICES (N)

Leasys (S)

FCA FLEET SERVICES (S)

Leasys (S)

FCA FLEET SERVICES (N)

30756

22126

111837

105995

19607

11189

17404

116114

9560

9,8

0,6

7,5

7,1

22,5

11,9

8,8

0,1

6,2

7086

324955

75728

1692

5472

66520

945,1

5,3

-9,8

15,8

166,1

11,2

Business Lease (N)

Sixt Leasing Ireland Autolease Ldt. (N)

Leasys (N)

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

Sixt Estonia Headquarters Transporent OÜ (N)

Sixt Greece Headquarters Lion Rental SA (N)

83209

685145

8348

67731

775

10,9

4,8

-24,5

-29,5

-28

Porsche Lízing és Szolgáltató Kft. (N)

Autosdiffusion M.Losch (N)

Porsche leasing dooel skopje (N)

Sixt Sixt Latvia Lithuania Headquarters Headquarters Transporent Transporent SIA (N) UAB (N)

FLEET EUROPE #91

DOSSIER

THE INTERNATIONAL SCOPE 2017 MALTA

ALD INTERNATIONAL

ALPHABET INTERNATIONAL

ARI

ARVAL

ATHLON CAR LEASE INTERNATIONAL

BUSINESS LEASE GROUP

FCA BANK

LEASEPLAN INTERNATIONAL

RCI

NORWAY

POLAND

PORTUGAL

ROMANIA

FLEET 2016 GRAND TOTAL

35448

9851

12911

15163

8011

GROWTH 2015-2016

15,7

0,02

17,3

18,0

-9,7

SUBSIDIARY OR PARTNER

FLEET 2016 GRAND TOTAL

GROWTH 2015-2016

SUBSIDIARY OR PARTNER

Unicredit Leasing (N)

FLEET 2016 GRAND TOTAL

<1000

1600

GROWTH 2015-2016

0,0

SUBSIDIARY OR PARTNER

Boxer (N)

FLEET 2016 GRAND TOTAL

34874

18806

9395

7519

GROWTH 2015-2016

2,3

15,3

-1,6

8,8

SUBSIDIARY OR PARTNER

FLEET 2016 GRAND TOTAL

108243

5110

1234

GROWTH 2015-2016

-0,4

19,7

1,5

SUBSIDIARY OR PARTNER

FLEET 2016 GRAND TOTAL

17000

5600

2900

GROWTH 2015-2016

-13,0

5,7

-6,5

SUBSIDIARY OR PARTNER

FLEET 2016 GRAND TOTAL

1502

131

307

GROWTH 2015-2016

15,5

118,3

411,7

SUBSIDIARY OR PARTNER

FCA FLEET SERVICES (S)

FCA FLEET SERVICES (N)

FLEET 2016 GRAND TOTAL

154996

44944

28179

104065

11338

GROWTH 2015-2016

18,3

4,5

8,4

10,7

3,1

SUBSIDIARY OR PARTNER

FLEET 2016 GRAND TOTAL

15036

26176

10737

27057

GROWTH 2015-2016

150,2

25,1

1,2

28,1

SUBSIDIARY OR PARTNER

FLEET 2016 GRAND TOTAL

GROWTH 2015-2016

SUBSIDIARY OR PARTNER

Sixt Malta Headquarter Fremond Limited (N)

Business Lease (N)

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

Sixt Romania Headquarters New Kopel Romania (N)

FLEET 2016 GRAND TOTAL

432

50026

16379

17199

8964

13126

GROWTH 2015-2016

1250

-56

-71,8

63,5

32,2

111,9

SUBSIDIARY OR PARTNER

Porsche Leasing doo (N)

Volkswagen Møller Bilfinans AS (JV)

Porsche Mobility SRL (N)

SIXT

VOLKSWAGEN FINANCIAL SERVICES

MONTENEGRO NETHERLANDS

LEGEND: TF: Total Fleet 2016 funded and non-funded • S=Subsidiary • N=Network Partner • JV=Joint Venture

FLEET EUROPE #91

DOSSIER

* The figures in this overview are figures from end of December 2016, communicated by the companies themselves.

RUSSIA

SERBIA

SLOVAKIA

SLOVENIA

SPAIN

SWEDEN

SWITZERLAND

TURKEY

UKRAINE

TOTAL EUROPEAN PRESENCE

16962

2251

3722

1830

89157

24227

4118

15186

132516

4324

1304105

-3,4

16,4

13,5

11,6

10,1

6,9

4,7

16,6

7,7

-4,6

14,4

Unicredit Leasing/ Business Lease (N)

3200

97903

0,0

22,0

139566*

CarNet (N)

9802

6033

88977

3719

10603

19050

162265

985412

20,5

6,2

8,7

5,8

8,6

22,3

8,4

7,1

FleetPartner (N)

TEB Arval (S)

3229

350

12665

1428

276

22500

327988

711923

-10,3

44,5

-8,3

27,6

-8,0

10,0

AutoPartners (N)

Hertz/ Sheridan (N)

Fleetcorp (N)

Lex Autolease (N)

4300

44800

-0,3

-2,3

2597

9267

143020

8,2

54,5

14,1

Leasys (S)

FCA FLEET SERVICES (N)

Leasys (S)

5258

8533

93544

29920

11386

22737

185696

1262637

162,9

6,7

14,1

3,2

3,5

26,3

9,9

9,4

2802

3967

4344

27208

15167

10868

25430

28791

1716

704335

25,4

16,7

143,9

4,6

14,5

15,2

26,1

22,0

241,8

11,0

362540

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

Sixt Slovenia Headquarters Anticus d.o.o. (N)

Sixt Sweden Headquarters Nordic Master Car AB (N)

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

Zenith (N)

Sixt Ukraine Headquarters Optima Leasing (N)

6221

3516

2569

5516

32660

18435

154035

3608

1274177

-24,2

192,0

30,3

-21,6

-62,6

3,6

27,8

107,5

-8,1

Porsche Leasing SCG doo Porsche Mobility doo (N)

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

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

AMAG Leasing AG (N)

VDF FILO (JV)

Porsche Leasing Ukraine (N)

NOTE: x: Presence in country. But we could not provide you with the exact numbers of these companies, because they did not complete them in our chart • /: The companies are not present in these countries. *This total does not include France, Luxemburg and the Netherlands as exact figures were not communicated.

FLEET EUROPE #91

DOSSIER

THE INTERNATIONAL SCOPE 2017 NORTH AMERICA FLEET 2016 GRAND TOTAL

• ALD International Covers 42 countries worldwide. Recent figures show growth in Latin America, with a new subsidiary opening in Chile; and growth across Europe, except in the difficult markets of Russia and Ukraine. • ARI Continues its expansion drive across Europe, with growth in Switzerland, Portugal and the UK.

ALD INTERNATIONAL

Canada United States

13027 297258

SUBSIDIARY OR PARTNER

Wheels (N) Wheels (N)

ARVAL

Canada United States

• Athlon Acquired by Daimler Financial Services at the end of 2016. Last year saw remarkable growth in Southern Europe, especially in Italy and Spain; and in Germany – Daimler’s home market.

ATHLON CAR LEASE INTERNATIONAL

United States

200000

Donlen (N)

United States

251269

• LeasePlan Expanded its fleet activities in Russia, where it now manages a sizeable fleet. Also continues to increase its penetration in Greece, also a challenging market, and in its home market the Netherlands.

RCI

206725 1376091

S S

Australia Japan

43200 1129000

Element (N) Element (N)

Australia China India New Zealand

4029 3740

Australia India New Zealand

91874 13238 23562

South-Korea

11927

BUSINESS LEASE GROUP FCA BANK LEASEPLAN INTERNATIONAL

SIXT

Dominican Republic

Sixt Dominican Republic Headquarters Bonanza Rent A Car, S A

Singapore Israel

United States

VW Credit USA (N)

Australia China Japan

• RCI Bank and Services Although volumes throughout Europe are relatively small, RCI has generated considerable growth in Ukraine, the Netherlands, Ireland and Denmark. Outside Europe, Brazil and Morocco were growth markets. VOLKSWAGEN FINANCIAL SERVICES

LEGEND: TF: Total Fleet 2016 funded and non-funded • S=Subsidiary • N=Network Partner • JV=Joint Venture

55000 3316 11641 18566

Australia China Canada United States

• Volkswagen Financial Services Steady growth across several markets in Central Europe and in Portugal, but also some decline in major markets like Spain, Italy and the Netherlands.

Australia China India New Zealand

ALPHABET INTERNATIONAL ARI

• Arval Expanded into Scandinavia last year by its integration of GE Fleet Services. Also entered the Serbian market.

FLEET 2016 GRAND TOTAL

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2349 1767

DOSSIER

ASIA/PACIFIC SUBSIDIARY OR PARTNER

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

LATIN AMERICA FLEET 2016 GRAND TOTAL Argentina Brasil Chile Costa Rica Guatemala Honduras Mexico Nicaragua Peru Puerto Rico Salvador

349 21663 1300 1 4093 104 22621 223 78 1278 161

TOTAL GLOBAL PRESENCE

AFRICA/MIDDLE EAST

SUBSIDIARY OR PARTNER Autocorp (N) S S Arrend (N) Arrend (N) Arrend (N) S Arrend (N) S Canada (N) Arrend (N)

FLEET 2016 GRAND TOTAL

Algeria Morocco South-Africa

3583 8876 36000

SUBSIDIARY OR PARTNER

S S Absa (N)

S S Oryx (N) Oryx (N)

Custom Fleet (N) Arval Jiutong (JV) S Custom Fleet (N)

1 802 243

644420 Argentina Brasil Colombia Mexico

Argentina Brasil Chile Mexico Peru Uruguay

832 117759 3214 31404

19986 6542 2456

Localiza (N) Localiza (N) Localiza (N) ARIZA/ARIFS (JV)

South-Africa

RDA Renting (N) S Arval Relsa (JV) Element (N) Arval Relsa (JV) RDA Renting (N)

Botswana Ghana Lesotho Morocco Mozambique Namibia South-Africa Swaziland Tanzania Zambia

155000

5977

EQSTRA (N)

3202791*

Avis Fleet Services (N) Avis Fleet Services (N) Avis Fleet Services (N) S Avis Fleet Services (N) Avis Fleet Services (N) Avis Fleet Services (N) Avis Fleet Services (N) Avis Fleet Services (N) Avis Fleet Services (N)

1 028 142

911 923 44 800 143 020 S S S

Brasil Mexico

10203 20837

Argentina Brasil

222 31892

S S

UAE

6075

Algeria Morocco

1750 17716

1 676 695

767 842 Companía General de Vehículos S.A. (N) Option Car Rental S.a.r.l. (N)

Sixt Singapore Headquarters Singapore Mobility Corporation Pte Ltd (N)

Barhain Lebanon Morocco Qatar UAE

Sixt Israel Headquarters Kiryat Shlomo Tzrifin (N)

Volkswagen Group Leasing (S) VW New Mobility Services (S) VOLKSWAGEN FINANCIAL SERVICES JAPAN LTD. (S)

745

Sixt Morocco Headquarters France Car (N)

363 485

Sixt Qatar Headquarters (N) Sixt United Arab Emirates Headquarters Gargash Enterprises LLC (N)

Volkswagen Credit Compañía Financiera S.A. (S) Argentina Brasil Colombia Mexico

167 27664

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

South-Africa

1280

Volkswagen Financial Services South Africa PTY (JV)

1 307 404

Volkswagen Financial Services (S)

FLEET EUROPE #91

INTRODUCING THE NEW VOLVO XC60

SAFEGUARDING THE FUTURE OF FLEET Identifying potential risk is invaluable in business, as is an accurate response. The New Volvo XC60 with new-generation City Safety reacts in a fraction of a second – faster than humanly possible – to detect hazards and steer your drivers to safety. It’s one of many world-first and SUV-first advancements designed to keep your organisation moving forward. Discover more by contacting our Global Fleet Sales Business Centre. EMAIL GLOBALFLEET@VOLVOCARS.COM OR CALL 00 46 313258377

Official fuel consumption for the new Volvo XC60 in l/100 km: Urban 9.3 – 5.8, Extra Urban 6.2 – 4.7, Combined 7.3 – 2.1. CO2 emissions 167 – 49g/km. L/km figures are obtained from laboratory testing intended for comparisons between vehicles and may not reflect real driving results.

DOSSIER

Eight Faces of the Future Frank Jacobs @FrankJacobs

Some companies opt for outside executives; others prefer to grow their own talent. But equally remarkable among many lease and fleet companies are the new faces at the top. Some emphasise innovation, others growth. All will be crucial to their company's future.

TEX GUNNING CEO and Chairman, LeasePlan International

New shareholders, new executive team: LeasePlan's new CEO is Tex Gunning, replacing Vahid Daemi, who retired after more than two decades with the company. In the wake of his appointment, effective late September, a number of high-profile functions have been filled by fresh faces. Tex Gunning has extensive experience in helping large corporations transform to the next phase of growth. For more than 25 years, the Dutchman held executive functions at Unilever, most recently as Business Group President in Asia. He gained additional managerial experience at companies like AkzoNobel, Vedior and TNT Express. As CEO and Chairman of LeasePlan International, Tex Gunning is living up to his reputation as a change manager, already overseeing some dramatic and remarkable initiatives, such as the pan-European partnership with Uber, concluded last February.

FLEET EUROPE #91

BART BECKERS CCO, Arval

As a dynamic executive at the top of an ambitious and powerful firm, Bart Beckers is a man to watch – and listen to. Starting out in 1993 as Commercial Director for Hertz in Belgium, Beckers soon moved on to becoming country director for LeasePlan, first in Belgium then in France. In 2011, he made the switch to Arval UK, becoming group CCO in 2013. Beckers is in charge of business development, the International Business Office, consulting, procurement, insurance, remarketing and strategic programmes – a wide and crucial range of responsibilities, at a company in a crucial stage of its development. In 2015, via its global alliance with Element, Arval acquired GE Capital's European fleet business, adding more than 160,000 vehicles across 12 countries at the stroke of a pen. But growth is not just about quantity, also about innovation, Beckers realises: “Private lease can grow really fast. The technology is here”.

DOSSIER

JOHN SAFFRETT Chief Operating Officer, ALD International

John Saffrett is the new Chief Operating Officer at ALD International. Just a few months ago, he still was Chief Administration Officer, with responsibilities extending to IT support and digitisation, including the development of new solutions for fleet and mobility connectivity. In his new role, he will be responsible for ALD's operational management, across the company's more than 40 markets worldwide, and for its more than 1.4 million vehicles. John Saffrett obtained a BSc in Computer Science from the University of Hertfordshire in 1994 and an MBA in Automotive Industry from Nottingham University Business School in 2004. He was IT director for ALD Automotive UK from 1997 to 2006, joining brokerage group Newedge – also part of the Société Générale family – for a number of executive roles before rejoining ALD Automotive in 2015 as global CAO.

GERO GOETZENBERGER CEO, Athlon International

It was last summer’s biggest fleet news story: Daimler Financial Services acquires Athlon International. The successor company unites Athlon with the fleet management activities of Daimler FS. It continues under the Athlon name, but its first CEO is Gero Goetzenberger, the last CEO of Daimler Fleet Management. He aims to complete the integration by 2018, leveraging the size, expertise, compatibility, partnerships and mobility services of both companies: Athlon, the Netherlands-based multibrand leasing and mobility specialist; and Daimler FM, the captive subsidiary of the German luxury brand Mercedes-Benz. “Our aim is to have the best of both worlds. We aspire to retain what is good from Daimler Fleet Management, and even to broaden that offer. By which we mean: extend the excellence of our captive fleet and mobility services to other brands. But the future is multibrand. That is why we continue under the Athlon umbrella”, says Goetzenberger.

PHILIPPE BELORGEY CEO, Free2Move Lease

Philippe Belorgey is the CEO of Free2Move Lease, a business unit within Free2Move, the new brand launched by PSA to bundle and enhance its mobility services and products – an ambitious and daring move on the part of a manufacturer. The aim is nothing less than to become the preferred mobility solution for its customers, even if that includes expanding the offer from captive to multibrand. Free2Move Lease is an essential part of that ambition. “The Free2Move brand will develop mobility services, some of which we will offer to the corporate sector via the Free2move Lease business unit. You could say we are the leasing toolbox within Free2move”. Philippe Belorgey has had a long executive career for Banque PSA Finance in Brazil, Poland, the UK and at HQ in France, and most recently as CEO for the Asia/Pacific region. He remains ViceChairman for PSA's banking joint-venture in China.

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DOSSIER

JOCHEN SCHMITZ Head of International Fleet, Volkswagen Financial Services

DR. JÖRG LÖFFLER CEO, Fleet Logistics

In November last year, Jochen Schmitz took over the international fleet business from Knut Krösche, who will henceforth concentrate his efforts on large customer accounts in the German market.

As the new CEO of Fleet Logistics, the main priority of Dr. Jörg Löffler is to further the group's internationalisation, as well as expand business operations to include new services.

Schmitz is an economist with a degree from the University of Koblenz. Not yet 40, he can already look back on a long and distinguished career in the fleet management and automotive industries. After various positions at independent fleet management companies, Schmitz in 2010 joined the Volkswagen Group, as Head of Product Management and Head of Retail Marketing for SEAT Germany.

Under the leadership of his predecessor, Rainer Laber, the TÜV Süd subsidiary became Europe's largest independent fleet management services provider. That dovetails with Dr. Löffler's own experience. As former Vice President Corporate Development at Knorr Bremse AG, he is a recognised authority in international business development.

In 2012, Schmitz joined Volkswagen Financial Services, where he took responsibility of the International Implementation Management and Consulting division. From 2014 until October last year, he headed CarMobility Fleet Management, a wholly-owned subsidiary of Volkswagen Leasing in Germany.

FLEET EUROPE #91

Apart from that, he has a broad technical experience, having studied Aerospace Engineering at the Universities of Stuttgart and Toulouse and Business Management at RWTH Aachen University. He was Global Vice President Product Group Efficiency Technologies at Webasto SE, Director Business Automotive at Infineon Technologies AG and Project Manager at Roland Berger & Partner GmbH.

VINCENT PEETERS CEO, Business Lease

Following in the footsteps of Harm Nijlunsing, who led Business Lease for 11 years, Vincent Peeters has a clear vision of where to go next: “We’ve been too modest: we are more versatile than most people, also internally, realise”. Vincent Peeters has extensive experience in the B2B sector and has been Managing Director at Business Lease Netherlands since 2015, will focus on the fast expansion of the Group's innovative services. He aims to leverage the group's strengths in the Netherlands and Eastern Europe to grow to the next level. “We have a well-oiled sales engine for our local and international clients in Central and Eastern Europe. If we further improve on that, I see us moving beyond 50,000 vehicles this year. We also want our Dutch organisation to take the final steps to becoming a mobility consultancy”, says Vincent Peeters.

DOSSIER

The Ideal Request for Quotation Tim Harrup

Calling for tenders/ quotations for a multinational fleet has many advantages – but it is far from straightforward. Fleet managers contemplating this need to consider many aspects before even setting out on the project. Some of the major players on the supply side – those who respond to such tenders – set out their advice for a successful outcome.

In common with any business decision – and launching a cross-border call for tenders is a significant decision, the first place to start is to ask yourself why you are doing this. And of course fleet managers need to make sure that they have a central mandate and are authorized to run a tender on behalf of the different customer countries in the scope of the proposed RFQ. Establish a clear understanding of requirements and what you and your stakeholders want to achieve and define the overall strategy for fleet/mobility with the respective stakeholders (travel, fleet, HR, finance). Ensure you have local knowledge contribution along with up-front buy-in for the project (rather than fighting resistance later). LeasePlan makes all of this perfectly clear: the key to developing and running a successful International Lease RFQ is primarily recognizing your internal stakeholder needs, which in-turn help identify your key strategic fleet objectives. It is then possible to look in a little more depth at the key elements of such an RFQ. It clearly makes sense to define from the start the right balance between key strategic targets: optimizing costs, reducing CO2 footprint, enhancing user satisfaction… And clearly, which are the countries in scope of this lease RFQ? It is probably advisable, believes Free2Move, to set reasonable ambitions on a restricted number of countries where the sourcing leader has the right influence and buy-in. CLARITY That establishes what you are trying to do, next comes communicating your

requirements. This is the data gathering phase which will be instrumental to provide the leasing companies and mobility operators with the right vision of your fleet and mobility requirements. It is therefore essential to obtain from your countries data which is as accurate and reliable as possible. One of the most important factors for the fleet manager, indeed, is to assure is that the way he launches the tender enables him to have a clear and transparent comparison of the different supplier answers at the end of the tender phase. It is vital to be clear, precise and transparent in objectives pursued with the RFQ as well as with the information expected. Detail your strategy and predefine the RFQ process timeline. And define your evaluation criteria in relation to prospective suppliers. A concrete example of the reason why clarity is so important is given by Sixt Leasing: if the customer only asks for ‘tyre management’, company A may only include the replacement of tyres (excluding the tyres themselves) whereas company B may include tyre mounting, balancing, storage and 2 sets of tyres. As such the prices you get for the ‘tyre management’ module are not at all comparable. Business Lease is in full agreement: an international Lease RFQ can only be successful when you really compare apples with apples and leave sufficient space for a lessor to provide solutions which improve the efficiency and TCO of your fleet. Do not forget to create a clear service specification for the whole lifetime of the car, from order to return cost payments in as detailed a manner as possible.

FLEET EUROPE #91

DOSSIER

Launching a cross-border call for tenders is a significant decision, so the first place to start is to ask yourself why you are doing this and what exactly do you want from the tender.

On this point, it may be that it is advisable to address your tender to 1 or 2 major international operators and 1 or 2 national ‘champions’ within some of the markets.

Now that the company has set out all of the parameters, it is time to start looking at what is actually going to happen, and what some of the pitfalls may be. Define a balanced scorecard based on your strategic targets to evaluate RFQ responses. Bear in mind that nothing is free, and a focus on pure price will be at the expense of service quality. Ensure you have clear communication towards potential suppliers with regard to the upcoming RFQ timeline as well as expectations. And allow for questions as well as reasonable submission times since they will improve the quality of offers you receive.

OEM’S FIRST… It may also make sense, believes AstraZeneca, to run an OEM tender before launching a lease RFQ, and to take into account existing OEM discount framework agreements. Brands and models for the lease RFQ could be shortlisted, list and option prices could be defined and delivered to the potential lease suppliers. Carrying out an OEM tender first in order to get better discounts on your brands is clearly something of benefit. There could even be another ‘preliminary’ step in the view of Alphabet: conducting warm-up meetings with potential suppliers to test and refine the strategy.

COUNTRY VARIANCES How standardized a response across all countries is it reasonable to expect? Take local differences into consideration and do not try to find ‘one size fits all’ solutions where these are not beneficial. You are advised to avoid wanting to see one answer for all countries. There are so many different parameters that make it impossible to harmonize everything into one offer (different taxation, different legal matters, differing car prices and equipment, varying demand from end-customers, market-specific RVs, etc.). For this reason, it is probably better to compare offers on a TCO basis rather than individual pricing elements.

This implies using standard templates and requesting full disclosure quotations to simplify comparison of offers. You will also need to define qualitative criteria to evaluate the suppliers responding to RFQ (country coverage, market position per country, references, processes and quality, reporting capabilities, etc.). Next comes the decision on number of lessors needed per country, points out E.ON.

FLEET EUROPE #91

DOSSIER

Effective tenders are always framed with customer needs in mind – just going for the largest possible tender makes no sense. Also, for optimal results, you should allow suppliers enough time to gather the right answers to your questions.

TIPS FOR FREE • Ensure there is clarity and consistency throughout, make your expectations explicit. (LeasePlan) • Define car-policy based on strategic approach taking into consideration existing local specifications. (Alphabet) • The basics should be comparable. (Business Lease) • It is key to obtain the buy-in of your main stakeholders (drivers, country managers, HR, national sourcing teams). (Free2Move) • Try to only compare offers that were created the same day. In theory it could be that one supplier is quoting a vehicle before facelift and the other one the day after the release of a facelift. (Sixt Leasing) • Avoid the urge to quote on every car and every contract permutation, apply the 80/20 rule to manage the volumes of data needing analysis. (AstraZeneca) • Remember, this is just a snapshot, tomorrow you will get different quotes. (E.ON)

BEWARE OF THE BONUS Something to bear in mind is that while you should clearly ask for an international bonus when asking for quotes for more than one market, you need to be aware of lease companies giving you too high a sign-on or loyalty bonus. Procurement managers often tend to accept very high and attractive sign-on/loyalty bonuses because they want to present an immediate saving in front of their superiors. However, keep in mind that lease companies also need to be profitable and that as such, a high bonus up-front will often be leveraged upon vehicle returns. It is perfectly possible to end up by paying more than what was actually gained up-front with a bonus. You may also find it beneficial to plan for sufficient legal capacity to negotiate framework agreements internationally and locally after awarding the RFQ, remembering that the project is only secured with the contract signature.

FLEET EUROPE #91

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DOSSIER

The Power of Local Heroes in Global Fleet Management Yves Helven

Most fleet-owners try to harmonise and consolidate their supply chain as much as possible, for obvious reasons: less suppliers means less complexity and more leverage to negotiate discounts or bonuses. The conclusion could be that the international suppliers have a natural advantage over local suppliers.

However, local heroes can offer you a different set of advantages:

In a nutshell, you’ll need to assess these questions first:

• Do

Price Competitiveness: In mature markets, the local hero is usually the price challenger and, if wisely selected, a valuable partner in a multi-bidding scenario. They can increase the dynamics between the suppliers and push your supply chain to a better level of service at a lower price.

2 Market

Knowledge: a local supplier might offer you a strong connection with the local market, quick updates of tax changes and other competitive advantages. Close links with local dealers and importers can make a difference when negotiating pricing.

3 Coverage:

• In APAC markets like in Africa, working with local suppliers is a necessity. The established suppliers are not present in most of the countries (except India) and you will have to reach out to local suppliers.

• In

Latin America, the international players are represented in the main fleet countries, but the gaps need to be filled by local suppliers. Some of the international players will also propose that you use their partnerships with local heroes, offering you both the advantage of local knowledge and regional integration.

• In

Europe, checking the possible benefits of working with local heroes can be interesting for less mature fleet markets, for example in Eastern Europe.

I need a local hero? If your global or regional supplier is not present in a specific country, the answer will be positive.

• Do

I want a local hero? If you believe that competition (pricing and service) is beneficial for your supply chain, you’ll probably answer yes.

• Can I handle a diversified supply chain? Do you have a fleet team or external fleet manager that can integrate data from local heroes into your reporting and deal with local issues? If you decide to integrate a local hero into your supply chain, you’ll need to answer the following questions. Funding of the local hero. Understanding the funding will help you assess how serious your local hero is about providing leasing or fleet management services. You don’t want your supplier to be fully bank/risk capital funded and you want to see investors that can demonstrate genuine interest in the leasing and fleet management business.

Profit and Revenue. Cash flow and liquidity are essential for a leasing company. Check if your supplier will be able to pay its invoices and is capable of absorbing additional orders.

FLEET EUROPE #91

DOSSIER

Pricing. Local heroes often use lower pricing as a means to attract new customers, but at the end of the day, the upfront pricing needs to be put in perspective of potential recharges during the contract and mileage/damage assessment at the end of the contract.

Contracts and service scope. Make sure the service scope is identical to the service scope of your other suppliers. Check the tyre and maintenance provisions; look at the content of the insurance coverage, especially deductibles, and check whether your local hero is self-funding its repair costs. In less mature countries, it is advisable to check as well whether genuine spare parts are being used and whether your employees can use the OEM service and maintenance networks.

Tools and back-office. Visit your 5 supplier in their offices, ask for a tour and interview the customer service team leaders. Have a look at the tools and systems that are being used. You need to be convinced about the professionalism of your supplier. SLA. Put a service level agreement in place to make sure your drivers will be treated equally, regardless of the supplier.

Remarketing network. Check where and how the end-of-contract cars are being sold. A solid remarketing network means a better guarantee for price consistency and more control over end-of-contract costs. A supplier with a weak remarketing network is

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If you are well prepared, there are arguments in favour of including local suppliers into your fleet network.

taking a risk on pricing and liquidity and might see its funding cost go up. Invoicing. Is your supplier capable of providing you with an invoice format that won’t slow down your accounting team? Can they deal with cost centre changes in a quick and efficient manner? Are credit notes issued separately or netted? Not all questions are crucial, but it’s best to be prepared.

integrate various new solutions into their product range? Make sure you don’t select a supplier that projects you back into the 20th century. In conclusion, if you are well prepared and if your company can absorb the workload related to a diversified supply chain, there are many arguments in favour of including local suppliers. Preparation is, as always, the key factor for success.

Innovation. Can you expect your local hero to modernise your fleet management and introduce new technologies? What is their opinion about mobility and are they prepared to

International Investor (TII). It has a fleet around 23,500 vehicles in a range of brands and models, providing operational fleet leasing services to more than 4500 national and multinational companies. In 2010, Fleetcorp is engage with the Athlon Car Lease International network, and manages services, repair and maintenance, taxes, insurance follow ups, and replacement vehicles, while avoiding the risks associated with second-hand cars and fleet management. Fleetcorp has launched the industry’s first mobile app, iFleet, facilitating

access to 24/7 roadside assistance solutions via mobile phone, pioneering an innovative vision in the industry.

The new Golf Estate. If you are looking for more space to improve your business trips, you’ll find it inside the new Golf Estate. With generous room for your legs and your luggage paired with a wide range of optional assistant systems and connectivity features, the Golf Estate gives you all the right reasons to invest in your fleet.

We make the future real. Fuel consumption of the Golf Estate in l/100 km: combined 5,4–4,0, CO2 emissions in g/km: combined 132–103. Illustration depicts optional equipment. 30 FLEET EUROPE #91

www.volkswagen.com/golf

Time to invest in a real estate.

FACE TO FACE

Safety is paramount Tim Harrup

Robert Satiri of Colacem SpA and Luigi Fanizzo of Epson Italia took time out from the Italian fleet community’s Company Car Drive in Monza in May, to talk to Fleet Europe and to each other about what makes for successful national and international vehicle fleet management.

Just thirty kilometres or so from Milan, Monza may be a small town, but it is world-famous for its Formula One racing circuit. The Italian Grand Prix is among those most eagerly awaited every year, and the fact that it is held in the land of Ferrari, Maserati, Lamborghini… certainly adds to the exotic reputation of the event. For those who are already looking forward to this year’s race, it is on September 3rd. Being in the north west of the country, Monza is also in the beating heart of Italy’s automotive industry, making this location all the more judicious.

FLEET EUROPE #91

LUIGI FANIZZO

ROBERT SATIRI

COMPANY Epson Italia (Printing, Imaging and Scanning) FUNCTION Fleet Manager NUMBER OF CARS (PC AND LCV) IN FLEET 90 NUMBER OF COUNTRIES 1 IN FLEET MANAGEMENT SINCE 1990 REPORTING TO Senior Facilities & Procurement Manager EMEAR MAIN FUNDING METHOD IN EUROPE Operational leasing DO YOU HAVE AN INTERNATIONAL CAR POLICY Yes DO YOU HAVE AN INTERNATIONAL GREEN/MOBILITY POLICY No

COMPANY Colacem SpA (Cement production) FUNCTION Head of General Services NUMBER OF CARS (PC AND LCV) IN FLEET 600 NUMBER OF COUNTRIES 6 IN FLEET MANAGEMENT SINCE 1997 REPORTING TO General Manager MAIN FUNDING METHOD IN EUROPE Long term renting DO YOU HAVE AN INTERNATIONAL CAR POLICY Yes DO YOU HAVE AN INTERNATIONAL GREEN/MOBILITY POLICY More precisely we have a travel policy

FLEET EUROPE #91

FACE TO FACE

STRATEGY AND TCO

How would you describe the main elements of your fleet strategy?

and partnership in Epson, which helps in this respect.

LUIGI FANIZZO Standardization is an important factor for an international fleet, and we always try to implement the same procedures in every country, the same steps within our processes. But this is not always easy because of differing customs and legal requirements – so there will always be parts of a policy which are not the same. We therefore allow some autonomy for local fleet managers.

R. S. We organise some driver training too, with attention mostly on safe driving habits. We share results with drivers. We use reporting information to establish a level of best practice. This scan be explained to drivers who are not in the mid-range of best practice.

ROBERT SATIRI For us, maintaining a good level of TCO and the rationalization of brands and models are key. A small number of brands and models is the aim. Attention also has to be paid to the local market because there are national differences in terms of car usage – private use… We take into account, for example, that in a country like Canada they need 4-wheel drive cars, which isn’t the case in Italy, or that it is difficult to find spare parts outside certain circuits in Tunisia.

Coming back to TCO, which is the element of this that can make the most difference? R. S. For me, the leasing and fuel costs are most important. If these are kept under control, TCO remains low. I think that maintenance and other elements are of relatively low importance in the TCO equation. L. F. For me, there is only one right answer: the most important element is residual value. Next comes the monitoring of fuel consumption, so we have installed a dedicated fuel card management across Europe.

What about the impact of drivers? L. F. Well, you can’t neglect driver behaviour. We pay attention to drivers by holding training courses every six months, and we look at the reports on driving style and habits. R. S. We share information on best practice, best habits in the car, with drivers. You’re right, driving style has a substantial impact on TCO. L. F. Implementing some form of incentive such as prizes for the best drivers is something we are looking at. This is both for safety and for keeping our vehicle fleet in good condition. We have a high sense of community

Do telematics come into the picture? R. S. At the beginning of our telematics experience, we had some issues with drivers, but for us driver safety is very important, so we present telematics as an opportunity for increased safety. This aspect has certainly helped with accep-tance of telematics. The system can also lead to lower insurance premiums. L. F. We don’t use telematics of our own at the moment, but we get our reports from the car leasing company. This is how we are able to monitor deviations from the norm. Our leasing companies automatically provide cars which have the system included.

What were the biggest problems you encountered in implementing your car or fleet policy? R. S. The issues come from different local customs and usage, making it sometimes difficult to impose one standard. But we always try to come back to our low TCO philosophy, and low CO2 emissions, sometimes by providing pool cars for sharing at some of our factories. Commitment from the Board is very important in avoiding problems.

What will be the next step in improving TCO? L. F. Our next step will be an increased downsizing, but always with attention paid to safety. R. S. We are expecting to see technological innovations such as electric cars to become cheaper. So, if we can get low-priced electric cars and low-priced electricity, we can improve on the TCO. We also believe that technology in terms of connectivity will help reduce TCO.

FLEET EUROPE #91

FACE TO FACE

MOBILITY MANAGEMENT

Do you see a change in the future of the company car?

What could your lease companies and OEM’s do better?

R. S. Yes, because I think mobility will change in the near future. We are trying to move towards inter-mobility, where people can move around by train and aeroplane, along with car-sharing. We don’t know exactly what future mobility will look like, but we try to stay with the changes as they come.

L. F. I would like to have better reporting for all issues which can damage the fleet. I would also like better transparency in lease contracts for elements which can affect economics… modification possibilities and opportunities to improve safety. In cars, I would like to see more lumbar support offered – people work in their cars now, and this option should be in all cars, even medium range.

L. F. We will plan mobility actions for the future around reducing emissions, so we may introduce electric cars for use in the city. This will together with the positive impact on CO2 and corporate image, bring an overall increase in the quality of how our people move, I believe.

Let’s move on to benchmarking your fleet performance… L. F. After so many years in vehicle fleet management, I have a wide network of contacts to talk to. I attend conferences with other fleet managers, I look at best practice, and I arrange formal or informal meetings, assuming that you would know it all is a bad mistake. R. S. I compare what I am doing in fleet with other activities such as procurement management and others which are very close to fleet management. I don’t believe sitting in a sort of ivory tower is the correct way to keep up with fleet and mobility management.

Back to safety: how do you deal with ‘use of smartphone’ etc. in the car? L. F. We do not allow this, and we are trying to find a system which will block use of the phone when in the car. We are very specific in our car policy about non-use of the phone – this is made very clear to each driver. We also always elect models with ‘business’ packs such as navigation, so that phone use in the car is not necessary. R. S. Use of smartphones is forbidden by us too, and the cars are fully equipped in terms of connectivity, making smartphone use not necessary.

FLEET EUROPE #91

R. S. I would like more transparency in insurance costs and accident management. On the safety side, I would like to see automatic blocking of smartphones. Drivers are more interested in nice things to have and don’t necessarily look at safety features. So, these should be standard.

What is the achievement you are most proud of? L. F. I arrived at Epson at a time when all the cars were owned. So, I am really proud of having created a vehicle fleet here which is in line with modern trends and brings added value for both the company and the drivers. R. S. I have implemented a single cost control system in all countries which was a huge step forward in our fleet management. We can now compare data across countries, and take the right decisions based on correct comparisons.

Is the role of the fleet manager going to change in the future? R. S. Yes, and it is going to change very quickly too, because new mobility requirements will call for skills which are not always found within traditional fleet management. The fleet manager will be a fleet, travel, mobility manager, so he or she will need more skills as the responsibilities will lead to more complexity. L. F. I also think that the role will include other elements, it will be even more multitasking, and I agree that this is going to happen very quickly. But it will also be an exciting transformation of our role.

FACE TO FACE

TIPS & TRICKS LUIGI FANIZZO

ROBERT SATIRI • Make sure you have the necessary knowledge to create your vehicle selection: try out all types of cars, all powertrains, the different equipment levels…

• Make sure you pay greatest attention to issues of safety and cost

• Share all information with your stakeholders and drivers

• Working with different countries can be challenging from cultural and procedural points of view. Know how to approach and listen to users, but always keep the company’s interests at heart.

• Understand local specificities”

• Find a good way to say ‘No’.”

WHO’S WHO

Purchasing Manager.

Building a list of cheap and environmentally friendly cars. Having paid in advance a supplier that in the meantime has failed and could no longer deliver the car. I resolved differently but it was tough. He was a friend. Travel, drive cars, ski, sailing ... too many passions!

IF YOU WEREN’T IN FLEET AND TRAVEL BUSINESS, WHAT WOULD YOU PROBABLY BE DOING PROFESSIONALLY? WHAT IS THE FIRST THING ON YOUR TO DO LIST FOR THIS YEAR? WHAT IS THE BIGGEST MISTAKE IN CAR FLEET MANAGEMENT YOU HAVE MADE?

WHAT IS YOUR PASSION OUTSIDE OF THE FLEET AND TRAVEL BUSINESS?

Working in Sales Department.

Searching for saving areas, review car policy in order to reduce emissions. Order a wrong car model.

I like to travel, I love good food, and meeting with friends.

In Italy sea (Sicily) and mountain (Dolomites); around the world Europe (French), America, Australia…

WHAT IS YOUR FAVORITE HOLIDAY DESTINATION?

Seaside.

Lancia Delta.

WHAT IS THE FIRST CAR YOU HAD?

FIAT PANDA in 1987.

I always try to deal with everybody and many inspired my life and my business, because I think that sharing knowledge and experiences is the true richness of everyone.

WHAT PERSON YOU ADMIRE THE MOST OR IS/WAS AN INSPIRATION TO YOU, AND WHY?

My father. A great worker and a good family father.

FLEET EUROPE #91

FACE TO FACE

The Face to Face interview took place at the legendary race circuit of Monza in Italy.

“We are moving towards the intermodality of mobility”, says Robert Satiri of Colacem.

To improve driver behaviour and increase driver safety, Luigi Fanizzo is looking how to implement some form of incentive.

Telematics, for many fleet managers a difficult topic, but not for our two fleet managers from Italy.

FACE TO FACE EPISODE 8

Both Robert Satiri and Luigi Fanizzo ask for an increased lease contract transparency in order to be able to identify new cost saving areas.

#92

Discover our new Face to Face interview with two international fleet managers.

Tim Harrup | PICTURES: Gennaro Speranza PRODUCTION SUPPORT: Céline Gilson (organization)

FLEET EUROPE #91

ADVERTORIAL

CONCEDED EDITORIAL SPACE

Maserati shakes up the company car world Maserati entered the Corporate Sales Market in 2013 – a real first for the Italian car manufacturer with its over 100 years of history.

Its entry didn’t go unnoticed, thanks to the launch of two highly successful saloons: the Quattroporte, now in its 6th generation and the Ghibli, the company’s first executive saloon. Both are available with a 3-litre V6 Diesel engine capable of 275HP (250HP for the Italian market). Ferrari-built petrol engines are also available: a 3-litre 350HP V6 and a 410HP version for the Ghibli, a 3-litre 410HP V6 and a 3.8 litre 530HP V8 for the Quattroporte. Intelligent all-wheel drive technology is also available on both Ghibli and Quattroporte in the SQ4 versions, coupled with the 410HP petrol engines. LEVANTE – AN SUV WITH SOUL In 2016 Maserati unveiled its first SUV, the Levante. The Levante embodies the soul of Maserati, and symbolises the absolute height of Italian design. A unique, innovative SUV, combining spaciousness with coupé lines, while maintaining a proud link to the Maserati tradition.

Named after a wind, in pure Maserati tradition, the Levante has further boosted corporate sales, thanks to its high degree of versatility: a luxury SUV, with state of the art performance on and off road and extremely user-friendly. The Maserati Levante is available with a 3-litre 410HP V6 petrol engine (Levante S) and with a 275 HP (250 HP in Italy) 3-litre V6 Diesel engine. CONNECTIVITY AND SAFETY Now featuring across all the Maserati MY17 range, the Maserati Touch Control 8.4" touchscreen provides effortless control over the on-board equipment and features. Fine-tuning the climate control, accessing iPhone or Android smartphones, setting a route on the sat nav, or selecting the perfect soundtrack for your journey are only a tap away, and the screen mirroring functionality is compatible with Apple Car play and Android Auto. The Maserati MY 17 range incorporates the latest driving assistance systems in order to keep drivers and passengers safe at all times: forward collision warning system, blind spot alert and rear cross path detection, lane departure warning system and adaptive cruise control… A CAR FOR ITS TIME With such an appealing car line-up, more and more customer groups are now thinking of Maserati as a company car, thanks to its unique mix of exclusivity and competitive price positioning. The 3-year/unlimited mileage warranty and maintenance packages, combined with an increasing number of dealerships in all the European countries mean that corporate buyers can enjoy total peace of mind.

Maserati Ghibli MY17: A shot of Italian style in the company car park.

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Maserati Levante MY17: When the heart says Maserati but the head says SUV.

How important is Europe in this? Europe plays has a central role in our growth and development plans, not only in terms of overall volume but also with specific reference to fleet business. For the majority of European markets, diesel is still the key volume driver, also for Maserati, although we are seeing increasing opportunity with gasoline beyond the traditionally strong gasoline markets such as Switzerland. Diesel power was introduced in Maserati with the launch of the Ghibli in 2013, and a diesel engine is now offered across the Quattroporte and Levante models as well, giving us a very strong product offering.

GIULIO PASTORE General Manager Maserati Europe

What are your worldwide sales targets for Maserati? Our worldwide target remains around 70k units in 2018. Since we began this phase in our development, our sales have already increased dramatically; from 6.300 units in 2012 up to 42.100 units in 2016. As each year has passed we have seen significant year on year growth, mainly due to the introduction of new models into new segments, most notably the Ghibli sedan in 2013 and the Levante SUV in 2016. In addition we have added new drivetrains, diesel and 4x4, both for our sedans as well as SUV (standard per Levante petrol and diesel), and we have expanded into new sales channels, particularly fleet in Europe. FLEET EUROPE #91

What can you tell us about future products? Last year with MY17 we introduced a series of Advance Driver Assistance Systems across our sedan and SUV models, as well as infortainment and connectivity, and there will be further developments this year in this important area. MY17 also saw a restyling of our Quattroporte model, with the introduction of two distinct trim levels, the sportier GranSport and the more luxurious GranLusso. This has been a great success and we envisage extending this trim strategy to other models in the future. For 2018 we have recently announced the introduction of the 430 hp V6 gasoline engine in right hand drive for the UK to complement the existing 275 hp diesel engines (which is also available as a 250 hp version for the Italian market).

Is the fleet market in Europe also a target? The fleet market in Europe is growing, and Maserati is taking advantage of this opportunity to add to our retail business. Today over 25% of Maserati sales in Europe are fleet related. Up until last year Ghibli was the best fleet performer, but so far this year Levante SUV is accounting for 50% of our total fleet sales in Europe, demonstrating the appeal of SUV to a business as well as retail audience.

Why is Maserati a good choice for fleets? A Maserati is about the choice of the individual. And this is as true in fleet as it is in our retail business. Maserati offers an alternative to the usual executive fleet brands, and can act as an incentive or reward for high performing individuals. At the same time, Maserati is more attainable than you might think. Within Maserati we refer to the concept of â&#x20AC;&#x153;Affordable Exclusivityâ&#x20AC;?, which sums this up well. We can also offer attractive financing options with strong residual values and competitive SMR costs. We were also very proud to win the Firmenauto Award in 2015 with the Ghibli in Germany. So, between the Ghibli, Levante and Quattroporte we have a distinctive range of cars to satisfy the needs and desires of your senior management team, right up to the CEO.

Meeting the mobility needs of global organisations

Through our dedicated international account teams, we provide high-quality, international fleet management solutions for many of the world’s largest organisations. We also offer tailored consultancy services on topics including cost optimisation and sustainability. For more information on how we can help you meet your organisation’s global mobility needs, visit www.leaseplan.com.

What’s next?

leaseplan.com

INNOVATION

Cultivating self-reinvention via start-ups Dieter Quartier @DieterQuartier

Connected, autonomous, shared and electric: those are today’s buzzwords in Carland. But how do ‘old schoolers’ turn innovative? By fostering internal and external creative power.

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Selling cars as such will soon be obsolete. Carmakers, lessors and other traditional players in the automotive space appreciate that. Those that take a proactive approach are trying to work out new business models, customised and connected services, different customer retention models, et cetera. But in doing so, many of them realize it is very hard to break free from their own traditions, from internal culture, from the way they have been doing things for years and years.

On top of that, developing new services and products in a conventional corporate context is incredibly time and budget consuming. What OEMs and automotive service providers desperately need to adapt themselves to New Mobility, is a full-blown selfreinvention. That is why traditional players ‘insource’ unbridled creativity, flexibility and responsiveness by creating proprietary innovation labs, incubators and accelerators for start-ups. These also allow for a multitude of innovations to be tested in the field, backed by the sponsor’s own resources.

INNOVATION

FRANCE:

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3000 START-UPS IN ILE DE FRANCE

RENAULT: FROM PARIS TO TEL AVIV In March, French automotive group Renault announced it would be opening its third Open Innovation Lab, in its home country’s capital city. The OEM already had such start-up fostering facilities in Silicon Valley and Tel Aviv. The goal of this innovation lab is to find new ways of working together and of getting around, uniting Renault’s own teams, newbies and external partners. Importantly, ‘Renault Innovation Lab - Le Square’ is conceived as a laboratory for experiments that opens up its ecosystem to the outside world.

ALD: FOSTERING INNOVATION WITHIN Four years ago, French fleet management and leasing company ALD Automotive realised it needed to fundamentally revise the way it carried out its business, if it wanted to anticipate future mobility developments by trying out new approaches. That is why in 2013 it created an Innovation Lab, with locations in France, Italy, the UK, Belgium, the Netherlands and Luxemburg, with the goal to empower employees to develop innovative ideas that sprout from regular customer interaction, and to foster a pioneering culture.

“Renault has been building vehicles for more than 100 years. However, our industry is evolving at such a rapid pace that we have to be at the forefront and constantly innovate, focusing on new technologies, connected cars and EVs. We must define the future of mobility to be able to offer our clients the best possible service,” a spokesman said. Renault selected France as a location because it boasts 228 start-up incubators and 49 accelerators. Île de France has more than 3,000 start-ups.

Working with six hubs means things get done and that products are developed much quicker, while staying close to the customer and flexible to adapt. When a new idea arises, it is put to the test on a market. “If it works, it can become a strategic competence for the entire group. If it only fills a particular need in one country, it will remain in the lab and be industrialized in that country”, said ALD’s John Saffrett in an interview with Global Fleet last October. One of the mist recent examples of this innovation approach is the launch of a chatbot pilot to support driver communication with a customer in Poland.

EUROPCAR: OPPORTUNITY-SPOTTING The short-term rental business is equally eager to play a leading role on tomorrow’s mobility market, which is moving towards ride-haling and car-sharing – at least in metropolitan or densely populated areas. BMW an Sixt have been partnering for six years now, with the DriveNow project. They were not the first OEM-rent-a-car partnership, though. In 2008, Daimler teamed up with Europcar to create he one-way point-topoint car-sharing programme Car2go. These partneships enable the collection of interesting information for the development of new services. But Europcar also created its own Lab, designed to “foster innovation and enhance customer mobility”. The Europcar Lab unites a group of experts designing and prototyping new solutions and monitoring market opportunities. Such an opportunity came in the shape of Ubeeqo, a French start-up specialised in B2B car sharing of which Europcar became a majority stakeholder in 2015. Ubeeqo recently launched an innovative, subscription-free offer to promote car-sharing amongst corporates.

PSA: OPENING THE GATES To respond to technological, environmental and social challenges, PSA is structuring its work around open innovation. With this approach, it wants to leverage a broad range of opportunities, such as the reduction of development costs, the detection of new trends, and the acceleration of innovation processes. According to the automotive group, open innovation serves to pool knowledge, know-how and R&D risks with a wide range of internal and external partners. One of the development focuses is human-machine interfaces – an area in which the Peugeot 3008 has demonstrated its makers ambitions. In this context, PSA has created an open innovation community with Mov’eo. It invites individuals, research institutes, schools and SMEs to enter their ideas, granting them direct access to the group’s experts and promising a quick follow-up. Indeed, speed is of the essence in a world that will look entirely different five years from now.

FLEET EUROPE #91

Sheer Driving Pleasure

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premium-class features

opel.com Fuel consumption combined 8.7–4.0 l/100 km; CO2 emissions combined 199–105 g/km (according to R (EC) No. 715/2007). Picture shows optional equipment. Availability depends on local market offer.

SMART MOBILITY

Park outside the box Dieter Quartier @DieterQuartier

The cost and availability of parking is a growing concern for fleets. However, there are clever solutions at hand to avoid frustration, hefty bills and loss of time.

Amazingly, cars spend 85 to 95 percent of their time being parked, either at home, alongside the road or in a public or private car park. In times of congestion, pollution, rising costs and increasing lack of space, that sounds pretty absurd by any standard. On top of that, companies are spending billions in direct or indirect costs related to parking – from providing infrastructure themselves to downtime caused by searching for a place to park all the way through to parking fee management and fine administration. And things are not getting any better. Some city councils are considering a workplace parking levy in a bid to cut traffic congestion, for instance. Fortunately, we live in creative, trouble-solving times which stimulate out-of-the-box thinking and entrepreneurialism. Both start-ups and established tech companies offer clever solutions to a problem that is basically one of supply and demand, and of a lack of realtime information. TOMTOM ON-STREET PARKING Dutch portable and integrated navigation device manufacturer TomTom expands its existing off-street (parking garage) information service with an on-street version (kerbside). Using gps data, it determines where drivers are looking for parking places

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and at what times of the day. This information provides drivers with the probability of finding a parking spot on a street level, as well as the average search-time for a spot. TomTom also publishes pricing and restriction information where available. According to the company, the service also helps reduce congestion in cities and thus lower CO2 emissions, and enables cities to better understand and manage street parking inventory to improve urban mobility. The service is available in 25 cities across Europe, with further geo-expansion to follow. AIRBNB-STYLE PARKING Another solution resides in residents letting out their driveway or even garage Airbnbstyle. This informal way of parking adds thousands of parking spots in every metropolitan area. And it makes good sense, both for proprietors and users. The former, when they do not need their private parking spot, typically during working hours – because they are out to work themselves – can put it on the market and earn some extra cash. The latter benefit from convenient, less expensive and guaranteed parking. In the U.S.A., several initiatives exist already – there is Roverparking, Spotter, ParqEx, et cetera. In Europe, the shortterm private parking spot rental business is

Both start-ups and established tech companies offer clever solutions to a problem that is basically one of supply and demand.

TIPS AND TRICKS

Promote multimodality and try to avoid travelling all the way to the office or a business appointment by car. There are many routeoptimising apps available.

Flexitime and homeoffice are equally recommendable to reduce parking costs and time spent in traffic or looking for a place to park.

Switch to electric cars or plug in hybrids. They often have dedicated parking spots, which most of the time are available.

still developing. Still, there is one European company takes the concept one step further, i.e. beyond citizens opening up their driveway: the UK-based JustPark. It claims to unlock over 200,000 previously underused spaces, owned by private persons, businesses, and even existing car parks, providing cheaper, more convenient parking to over 1 million drivers across the UK. KAZAKAR: I LEAVE, YOU BREATHE The concept of French start-up KazaKar consists of telling other community members that the on-street space you are occupying is about to become vacant. When the function “I’m going back to my vehicle”, is activated, the KazaKar app calculates the time it takes for the user to go back to his vehicle and informs the KazaKar community. The information is transmitted to the drivers who are looking for a parking space in the near area. Interestingly, this self-proclaimed ‘Waze of parking” takes into account the size of the vehicle – which avoids a user arriving in a BMW 5 Series at a parking spot that is suitable for a Fiat 500. As with any community-based system, all depends on the size of the community. On the plus side: it is free and requires a minimum of smartphone literacy. On the downside: you cannot “reserve” a parking space that is about to become free. First come, first serve. PARKU: BOOKABLE PARKING SPACES If that is a drawback, then bookable off-street parking is perhaps the better option for you. Based in Berlin and represented in Switzerland, Austria and the Netherlands, ParkU offers an all-in-one parking app featuring reservable parking spaces as well as information on more than six million

6 44 6

parking spaces in more than 30 countries across Europe. Rental periods range from 30 minutes to 6 months. The app delivers real-time information on parking options and features a booking function, offering drivers a guaranteed parking space. Thanks to up-to-date information on availability and occupancy, as well as details on location, distance, opening hours, tariffs, payment methods and amenities of parking spaces, car park options can be compared quickly and easily. PARKOPEDIA: A PARKING WIKIPEDIA “Find parking charges, opening hours and a parking map of all car parks, street parking, pay and display, parking meters and private garages”: sounds interesting and comprehensive, London-based start-up Parkopedia’s own description. It lists over 40 million parking spots around the world, helping you find the closest and cheapest parking in over 6,000 cities across 75 countries and telling you if there are spots available. That indeed saves valuable time, but unfortunately, not all parking garages are equipped with sensors. Apple (iOS maps), BMW, Coyote, Ford, Garmin, GM, Jaguar, Land Rover, Peugeot, TomTom, Toyota, Volvo, Volkswagen: they all support Parkopedia. Apart from the added value for their customers, there is another good reason to do so: Parkopedia is investing a lot in machine learning and autonomous parking without the use of GPS – in an underground or multi-storey car park, there is no coverage. In short, car makers need a partner like this to allow their vehicles to navigate autonomously to a free parking space.

FLEET EUROPE #91

www.volkswagenleasing.de/internationalfleet

International Fleet

As a European market leader with many years of experience in implementing fleet solutions, we are a reliable partner and assist our clients with a diverse range of high quality products and services. Further information about international fleet solutions can be found at www.volkswagenleasing.de/internationalfleet

BUSINESS

Mobility is nice, but our focus is on leasing and fleet management Caroline Thonnon & Steven Schoefs @ CarolineThonnon & @ StevenSchoefs

“We are keeping to our core business: managing large vehicle fleets”, says Tex Gunning, CEO of LeasePlan Corporation. “We’ve been doing that for 50 years, and very successfully too. And we are going to do it even better and be more competitively than before.”

Tex Gunning has a mandate for three years as CEO of LeasePlan Corporation. During this period he will lead the company to a fully integrated organisation with a dedicated focus on the international customer.

Since his appointment in September 2016, we had been chasing Tex Gunning for an interview. Eight months later he finally welcomes us into his office in Almere, the Netherlands.

a multi-local organisation, with the great advantage that you are in very close proximity to your customers and you create an enormous entrepreneurial spirit country by country.

“Following the sale of LeasePlan to a consortium of investors, finalised in March of last year, we indeed observed a publicity stop. Why. Simply because when you come in as a new shareholder and a new management team, you don’t yet have a story to tell”, explains Tex Gunning. “To begin by allowing people to answer questions that they can’t really answer is a bad idea, not just towards your customers, but also towards your employees and your investors. But we are now eight months into this new adventure and we believe the time has come to share where we are in our thinking”.

But there are limits to that model; you don’t always build best practices in all countries, because there’s no operating model where best practices are being discussed, and no leadership model where best practice is being leveraged in all countries. So, you end up with 32 IT systems, 32 ways of doing pricing, 32 ways of running a business.

What were your first impressions of LeasePlan when you arrived in September last year? “We saw a very good company, but one that was still stuck in a classic operating model; you start in one country, and you are a local company. Then you open in another country and you become a multi-local company; then you launch in another country and you are a multi-multi local company. LeasePlan has a history of being

Because LeasePlan has been extremely successful over the last 15 years, growing and growing, with more cars on the road – more than 1.7 million – plus a very healthy balance sheet, and profitable even in the ‘black swan’ scenario of 2007-08-09, there was little incentive for the existing management team to challenge the status quo and take the additional risk that you have to take to lead a company to its next stage of development.”

How do you plan to change this? “My emphasis is to bring the company to its next stage of development as a fully integrated organisation that is even better able to deliver a service to our customers. FLEET EUROPE #91

BUSINESS

And this under the new One LeasePlan umbrella. There is no other way but to create that integrated organisation via e.g. one SAP system, one way of purchasing, one set of processes, and create one fully integrated organisation.”

What’s your timescale for this integration?

When you expand internationally, will it be through organic growth or acquisition? “It depends on local circumstances, and on the quality of businesses and their price and availability. These decisions will be taken ad hoc; they are not strategic intends upfront.”

“We have started and within the next two to three years this will be finished.”

How do you see the shape of the industry changing?

You have decided not to open the LeasePlan’s Asia hub in Malaysia after all preparations, does this mean a scaling back of the company’s global ambitions?

“Throughout my career in every industry I have seen conglomerates being broken up, people specialising, and then specialists consolidating. The vehicle lease market is very fragmented and is no different. There will be more consolidation and I can tell you we will be part of it.”

“We have stopped expanding into Asia, not because we don’t want to be there, but because getting our house in order is our top priority. We need to improve our service and to become more cost competitive. LeasePlan has to focus firstly on Europe, home to most of our turnover and most of our customers. But we also follow our customers to the United States, Mexico, Brazil and India. The moment that these businesses get a certain scale, get a certain rhythm, we can say: okay, we can take a bit more risk here or a bit more risk there. We will return to Asia when we have done the work we have to do.”

How will you serve clients with fleets in Asia? “For the time being we will find a solution for the customer with a local company.”

What operational changes have you made to serve international clients? “International customers are an extremely important part of our portfolio. We have now fully integrated LeasePlan International into our European organisation, which is where our main international customers are. Under the old business model, our international customers had their own dedicated organisation, but lower down in the organisation. We have now elevated it to the top of the organisation. Our COO Marco van Kalleveen’s team look after Europe, and I take the rest of the world, so I talk to all the international customers in the US, Mexico, Brazil and India. We have to give them the attention they deserve. The number of international customers will only grow, so we are creating far more dedicated teams, and Marco and myself will be far more engaged with international customers.” FLEET EUROPE #91

How is LeasePlan changing its product portfolio? “The focus of the company has not changed: large customers with large fleets are our top priority. We believe the corporate market will continue to grow. The financial lease market will evolve more and more into a operational lease market. Why is the operational lease market interesting? That has to do with what we call the profit pool of a car, which is over the full life-cycle of a car. We own the car, and therefore we own the life-cycle of the car, and consequently we thus own the whole value chain of the car. I’m convinced that will continue to happen. Businesses should stay very close to their core. There’s no sexy story here, we’re not going to offer scooters or bikes, we are staying where our core is and sticking with what we have been doing for 50 years.”

WHO IS TEX GUNNING Tex Gunning (1950, Dutch) joined LeasePlan as Chief Executive Officer last September. Prior to joining the company, he was CEO of TNT Express, guiding its merger with FedEx. His previous posts include managing director of the Decorative Paints Division of AkzoNobel, and CEO of Vedior. In his early career, he spent 25 years with Unilever, rising to Business Group President in Asia.

Where do you see the future of private leasing? We expect it to grow very fast, because consumers like subscription models and are accustomed to them. The OEMs will play a very important part in the private lease market because it’s a way to sell cars, and some large lease companies will play an important role through white labelling. Large fleet management is a core competence which is quite difficult to step into and to replicate, whilst the private lease market everybody is competing everybody. With everybody competing, commodity pricing could set in very quickly so margins could be under threat. In our perception the private lease market is very different from the corporate market, which is truly service delivering.”

BUSINESS

How do you see LeasePlan’s partnership with Uber developing? “As a technology platform, Uber needs cars on the road, and for the time being that will be cars with drivers. But they don’t want to own the asset base, so someone has to own and manage these cars. It’s our strategy to sit with the technology companies and the regulators as a three-way partnership and say, ‘what will the city of the future look like, and what will be the role of cars?’ Somebody has to buy those cars and put them on the road. Those companies that will be ready will be those who learnt to live with the regulators, who learnt to live with the technology companies, which have a cost base that is competitive, and which have experience of managing large fleets competitively. That is who we are.”

How will mobility solutions evolve? “I still believe people will commute in their car. I understand when people say that cars are only used 4% of the time, and that’s true at the moment, but that doesn’t make a difference whether it’s an autonomous car or not. If it’s autonomous, yes you can send your car on the road but there will be nobody on the road because everybody is working between 9 and 5, and you will not make any money. People love to talk about mobility and mobility as a service. If you make a flexible fleet that’s normal efficiency advice you give to customers and then you put a mobility banner on it. But should we tell our customers to analyse all of their employees to see who can take a bike to the station, then catch a tram, then take whatever, then in the office they can drive one of the flexible cars that’s available…? If that’s a mobility strategy I don’t think we should go anywhere near it. We are fleet managers. Large corporates don’t want to have the hassle, the risk or the financing of running large fleets. They outsource that to companies like ourselves.”

But you do offer corporate car sharing? “Yes, we do. Car sharing works only in certain cities. People in the centre of Amsterdam do not own cars not because they don’t want a car but because they can’t afford cars. Would they go for car sharing? No. They go on bikes, they go on public transport, if there are autonomous

Tex Gunning on the private lease boom: “Large fleet management is a core competence which is quite difficult to step into and to replicate, whilst the private lease market everybody is competing everybody. With everybody competing, commodity pricing could set in very quickly so margins could be under threat.”

cars they go in autonomous cars. In certain cities, like San Francisco, people might drop the second car and use a car share to go shopping twice a week. In Paris, where a lot of people go out of town at the weekends, car sharing makes sense. In Holland, there is no culture of wanting to drive to the countryside at the weekend. The success of car sharing is very dependent on local circumstances. So, I believe car sharing will be limited. It will be an Airbnb type model, but will not be a main way of mobility and will never replace the current car use.”

Final question: Are you planning to play an active role in the larger fleet community? “As a CEO, you have to find the right balance between your role in the industry and your primary role, which in my case is running LeasePlan. So, I will be out in the industry and I’m certainly open to attend your Fleet Europe Summit in December, but let me be clear: it’s not my goal to attend all events or to be on the cover of every magazine. That might be nice for my mother in law, but not for LeasePlan.”

WHY LEASEPLAN Approached to see if he would be interested in running LeasePlan, Tex Gunning went online to investigate both the company and what was happening in the industry, “and my wife looked at her computer and said, ‘wow, wow, this industry is just changing so dramatically’. And that made it very interesting,” he says. The disruption caused by new engine technologies, autonomous vehicles and the prospect of completely new players entering the OEM space makes the automotive industry, “totally, utterly exciting,” says Gunning. Add into the mix the disruptive influence of companies like Uber and Lyft on the public transport arena, and the transformative impact of the information and digital revolutions, “and all business models are going to have to be reinvented in the next 5 to 10 years,” he adds. “LeasePlan is an extremely nice company with a very nice culture, is very successful, works in the automotive industry which is being totally disrupted, works in the mobility space, which is being totally disrupted, and which has to be reinvented to bring it to the next stage of its development. As a CEO you don’t always get dealt this deck of cards.”

FLEET EUROPE #91

THEMA

THE DIGITAL REVOLUTION

IT STARTED WITH A FLOPPY DISK FRANK JACOBS AND STEVEN SCHOEFS

If your memory reaches back 20 years, then you are old enough to have seen the world change more fundamentally than it ever has. The internet has transformed the fleet business beyond recognition, as it has wider society. And you probably remember how it started: with a floppy disk. By the mid-1990s, the first digital applications – for example by Interleasing (now Athlon) - were making their way into the mainstream of the fleet and leasing industry. Typically, these were communication and eporting tools for customers or simply documentation of contract details, provided on the aforementioned floppy disks. There was very little interactive, or indeed online, about these first electronic applications. The next logical step was to provide these and other tools online, eliminating the floppies and giving customers 24/7 access to the functions, including for example the opportunity to file requests for tenders. Interactivity increased, as did the autonomy of the customer. Even in those early days, just before the new millennium, the mutual benefits were clear: the internet enabled better customer service, while suppliers were able to save on time and staff. This win/win powered the further development of online fleet management. It is almost strange to imagine now that some fleet customers criticised the digitisation of the fleet business, fearing that it would lead to an overkill of reporting and, that would enable suppliers to 'hide' behind a wall of data, leaving clients to interpret the data themselves. However, increased competition between suppliers and increased assertiveness of fleet customers have quashed any fears of this happening.

The next big leap would occur about a decade after the year 2000, when the rapidly maturing online ecosystem made the transition from desktop to smartphone, providing easier access to a growing range of functionalities and in doing so fueling the demand for ever more applications – not in the least by and for the driver, now no longer the faceless end of the product line, but an increasingly central hub for the strategies of both fleet managers and fleet suppliers. Considering that the USP of lease and fleet management companies is to unburden their customers, they could not have wished for a more ideal tool than the internet, which allows them to both bundle disparate services as well as modulate them according to individual requirements, and use Big Data to create efficiencies where none were possible before – today and tomorrow. Today, the digital, online aspect of fleet management has become a standard, and indeed indispensable part of the job, for both suppliers and customers. The internet has made it possible to address multiple suppliers simultaneously, and internationally, and to get a single overview of fleets in different markets. This has generated considerable cost efficiencies that have become essential for the commercial success of all parties involved, making the digital revolution an integral part of current and future business models. Over the next twenty years, the internet will continue to transform the industry, doubtlessly beyond recognition. Funny to think that it all started with those funny, already outdated floppy disks...

CELEBRATING

Fleet Europe's 20th Anniversary together with

FLEET EUROPE #91

2017

All industry players are investing heavily and/or collaborating with specialists, in preparation for a wave of new mobility solutions, powered by the internet.

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ds om 2003 Fr

Also the main car manufacturers start developing dedicated fleet websites to inform and communicate with their customers.

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Lease and fleet management companies understand the importance of the internet with regard to customer service. The digital tools are now provided online, giving customers and end-users around-the-clock access to the functionalities, which now also include e-billing.

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The increasingly sophisticated and interactive online applications are now also offered on smartphones, tablets and other mobile devices, both increasing ease of use and raising the demand for more applications.

id-1990s

FLEET EUROPE #91

Lease and fleet management companies, like Interleasing (now Athlon) start providing their customers with digital tools, e.g. reporting and contract specifications, distributed at first via diskettes.

Michel CLAUS,

FORMER CEO OF ATHLON CAR LEASE BELGIUM

“The digitisation of fleet management has had a profound effect on the efficiency and productivity, right across the industry. Not just for lease and fleet management companies, but also for corporate fleet managers and the end users, the drivers”. “Some figures to illustrate this: between 1995 and 2010, the average productivity at lease companies has increased by 50 to 100%, with the average number of contracts per employee rising from 100 to between 150

and 200. On the other side, digitization has allowed customers to reduce the staff of their fleet departments by up to 30%”. “Strong competition between lease companies made sure the gains in productivity were largely passed on to the customers, with lower pricing in turn contributing to the growth of the industry. So: the internet has had a win/win effect on the industry, increasing both the quantity and the quality of our business”.

“The internet has had a win/win effect on the industry”

Michael POHL,

SENIOR PROCUREMENT ENGAGEMENT MANAGER AT MICROSOFT FLEET

“Digital developments have proven critical for us to have accurate and transparent data and reporting in our international fleet programme. Our decisions, our conversations with stakeholders and our negotiations with suppliers are now driven by hard facts, and thus more successful – from financial accounting to meeting our CO2 emission targets”.

“The next challenge is just around the corner”

and maintenance needs; but we do reflect on the balance between data gathering and ensuring that privacy standards are met”. “The next challenge of digitalisation is just around the corner: autonomous driving, mobility solutions and the Internet of Things – and the high investments related to them”.

“In-car devices and telematics help us to receive correct info on mileage, fuel

Bart BECKERS,

CHIEF COMMERCIAL OFFICER AT ARVAL INTERNATIONAL “The internet has had a growing presence in the fleet industry since the late 1990s, but the real acceleration happened only four, five years ago, when we started making the switch from desk-bound internet to mobile applications – meaning that drivers and fleet managers can be online anywhere and anytime”. “The internet has allowed us as an industry to replace manual calculations

with algorithms and become much more productive. As a result, leasing companies have actually become IT companies. We are as good as our software – which is why lease companies invest massively in IT”. “Smaller players, unable to invest as much as their bigger competitors, may lose out. As a result, further concentration in the industry seems more than likely”.

“Lease companies have become IT companies”

FLEET EUROPE #91

A DIGITAL FUTURE WITHOUT LIMITS Considering the unprecedented rise of online fleet management over the past twenty years, who would want to make any predictions? If the future has any limits, nobody today is quite sure where they will be. But the approximate outline of tomorrow's challenges and opportunities is easier to grasp. As the complexity and cost of further advances rises, it seems clear that the major fleet companies with the deepest pockets – perhaps filled by IPOs – have a pole position when it comes to the investments required to innovate and remain ahead. The increasing scope and acceptance of telematics is sure to create an explosion in vehicle-related data. The challenge will not be simply to collect this information, but to create filters that are able to sift this vast mountain of Big Data for nuggets of actionable information, on fuel usage, predictive maintenance, driver behaviour, etc.

SPECIAL

Big Data will also be increasingly relevant as a source for improvement of more traditional functionalities such as claim management, and as an engine driving forward newer mobility applications such as car-sharing, ride-sharing, multimodal transport, etc. Much of these functions are still device-based, but voice recognition will eventually remove the need for handheld devices, and reduce the interface between driver and fleet management to an interactive conversation with a digital voice. The focus of fleet management will shift to is interaction between supplier and end user, powered by blockchain technology – reducing or even eliminating the need for intermediary service providers.

personal information about the drivers, the related issues of data privacy, data encryption and data deletion will become increasingly relevant – and controversial. But perhaps the biggest change will come from the breakthrough of the autonomous car. Perhaps around that time, all industry players will operate on a shared, sophisticated and flexible online mobility platform, allowing for the easy management of the variety of short-, medium- and long-term rental formulas that will have blossomed in that new mobility ecosystem. That sounds like a future worth working for. But that is overlooking one problem with our fast-changing world: predicting the future means limiting it.

But progress also brings new problems, including the issue of data protection. As increased efficiency will come to depend more and more on

CELEBRATE 20 YEARS OF FLEET MANAGEMENT WITH US IN OUR UPCOMING MAGAZINES. DON’T MISS: Fleet Europe °92 – August 2017 Survival of the smartest: evolution of powertrains and other automotive technologies Fleet Europe °93 – October 2017 Embrace safety and telematics by enhancing driver behaviour Fleet Europe Special – November 2017 Fleet Management in Benelux and France: The retrospective on a fleet management innovation Fleet Europe Directory 2018 – December 2017 The three waves towards Smart Mobility Management

And more articles on our website www.fleeteurope.com

together with :

FLEET EUROPE #91

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REMARKETING

EU-wide Fair Wear & Tear “by 2018” Frank Jacobs @FrankJacobs

It's not often that a Lenin quote applies to the vehicle fleet industry: “Trust is good, control is better”. However, everyone does agree that Fair Wear & Tear needs EU-wide guidelines. Good news: it's happening.

For all their focus on Total Cost of Ownership optimisation, fleet managers often lose sight of the risks associated with the end-of-lease process. Yet by one estimate, as many as two thirds of all returned lease vehicles in the UK incur some extra charges because of wear and tear that exceeds the 'fair' measure. Similar figures apply throughout Europe. AGREED DEFINITION These charges hinge on the agreed definition of what is 'fair' wear and tear – the amount of depreciation that can be expected for any given vehicle at the end of its lease cycle and for which the customer should not be charged – and what isn't. Despite the fact that these extra end-of-lease charges increase TCO and decrease profitability, they often come as a surprise: fleet customers too often assume that all end-oflease costs will be borne by the fleet supplier. And of course the guidelines on acceptable damages are often unclear, or even

contradictory, especially in a multi-supplier context or from an international perspective. EXTRA INCOME Some customers may feel this state of affairs is to the advantage of, and therefore perpetuated by, the suppliers, to rake in a bit of extra income at the end of the lease process, when the customer is most at unawares. Nothing could be further from the truth: even though many fleet suppliers maintain guidelines of their own, all would prefer a fair wear and tear standard that levels the playing field across companies, market segments and international borders. “POSITIVE IMPACT” Fleet suppliers agree, our survey shows:

• Business Lease points out that “industry standards of any kind are always to the benefit of transparency, and ultimately towards the customer”.

• Free2Move

Lease believe that “any harmonisation of the end-of-contract refurbishment costs process at European level between the leasing stakeholders will have a positive impact on our business”.

• “The end of contract period can deliver unwelcome surprises for fleets, with high repair costs. A new fair wear and tear standard would harmonise processes and expectations”, says Fleet Logistics.

• “With return standards missing in many The guidelines for a European wide accepted Fair Wear and Tear policy are ready, they only need final fine-tuning. FLEET EUROPE #91

countries, an internationally accepted fair wear and tear standard would bring incredible transparency”, according to Sixt Leasing. But: “The practice could

REMARKETING

be complicated by the fact that different countries have different damage acceptance levels.

“THESE GUIDELINES ARE NOT NEW” Lease stakeholders will not be too surprised by the fair wear and tear guidelines set up by CARA, says Wolfgang Reinhold: “They are not new, in fact, most have been around for at least 20 years. And they correspond at least 80 to 90% with those used by the different stakeholders independently”.

• “Good standards play a vital role in the relationship between the leasing company and the customer, whether that customer is the buyer of the second hand-vehicle or the original lessee who is returning the vehicle”, observes LeasePlan. EUROPEAN COMMISSION Europe-wide standards for fair wear and tear is precisely what CARA, the European Car Remarketing Association, has been working to achieve. In close coordination with the European Commission and with Leaseurope, the association has been formulating a single set of guidelines. “Remarketing already is a thoroughly European business, with thousands of used vehicles bought and sold across national borders every day”, says Wolfgang Reinhold, president of CARA.

“This trend will only increase, especially as the market is becoming more harmonised from a regulatory perspective. The same should also apply for fair wear and tear”. But CARA is mindful of the cultural differences that underpin the various markets within the EU. That's why the fair wear and tear guidelines will only pertain to a uniform measurement of damages – not to which ones will be chargeable, or how much that charge should be. That will remain up to the individual parties to agree among themselves. “The guidelines are ready, and only need a final fine-tuning; if all stakeholders remain on board, we will be able to sign off on them at the General Assembly of CARA in December in Estoril. That means they will probably be able to go into effect in 2018, pending the necessary procedures of the European Commission”.

A COMMON VOICE TOWARDS THE MARKET, PARTNERS AND SUPPLIERS

The European Car Remarketing Association (CARA) has 5 clear deliverables: • Have a clear and common return process throughout Europe ‘fair wear & tear guide lines’ • Guidelines of European Import and Export regulation of used cars • Transport solutions throughout Europe • Support ‘correct mileage reading’

To get more information about the association or to become a member, please visit our website

www.cara-europe.org

• Actively lobbing for the right need in our industry

FLEET EUROPE #91

ADVERTORIAL

CONCEDED EDITORIAL SPACE

I want Athlon to be the number one universal mobility provider With Athlon’s acquisition by Daimler Financial Services, new horizons have opened in mobility, sustainability and customer experiences. And as the group’s CEO, it’s Gero Goetzenbergers’ task to merge, innovate, and communicate all at the same time. The new CEO talks more extensively about the opportunities the new combination offers for professional mobility in Europe.

ATHLON-CEO GERO GOETZENBERGER

When asked what he thinks will be his prou-dest achievement with regards to the largest acquisition Daimler Financial Services ever made (1.1 billion euros), Gero Goetzenberger is brief: ‘When we’ve brought together two worlds, without customers noticing anything other than ultimate satisfaction and seamlessly uninterrupted service delivery. We melted together two companies with an impressive track record in innovation. Daimler does remarkable things: the moovel mobility platform app, car2go as the leading car FLEET EUROPE #91

sharing provider and myTaxi as the leading taxi app, for instance. Similarly, Athlon introduced market changers such as the mobility card for professionals, the electric scooter and private lease for consumers, as well as mobi-lity solutions like Car2Use, Mobility Budget and FlexDrive. Athlon is also actively involved with start-ups. It cooperates with Startup bootcamp, helping startups get to the market faster by offering them their knowledge and network. It brings organisations and startups together and accelerates innovation. At this moment, we’re investigating the various propositions to further strengthen them and create new, one-stop solutions for innovative mobility. As a matter of fact, this potential was one of the main reasons for Daimler Financial Services to acquire Athlon in the first place. With its focus on customer value, innovation and genuine sustainability, Athlon is the right choice.’

‘We’ve achieved a lot already, but that is no guarantee for the future’

narios and visions, I still see an important role for the automobile. Often, the car is still the best option, although in a much more diverse way than we are used to. As one of the top brands in the market and as an undisputed thought leader, it’s our task to analyse trends and translate them into services and concepts with clear customer value. Strategically, this is even more important than creating short term advantages in efficiency, procurement and commercial power – the things every merger or acquisition should bring.’

‘There is no one-size-fits-all approach to markets’ The aim is clear: to be the nr.1 choice as an independent mobility provider. ‘There is no one-size-fits-all approach to markets. We must adopt to changing circumstances and questions and provide a consistent product in ways that fit our customers’ needs.’ As a leading market player in Europe, sharing best practices, pioneering new concepts and offering international solutions for multinational companies are key to holding market share. ‘No one knows what the future holds in all its details’, end Gero Goetzenberger. ‘So it is essential to team up and to connect the best brains and networks both within and outside our company. That includes customers as well. Since I started working with Athlon, our customers have confirmed my view that cooperation is essential. That’s an ongoing challenge.’

‘Also digitalisation is a very important topic. We want to provide mobility at your fingertips. But within all different sce-

REMARKETING

Get ready for the Remarketing of the Future Frank Jacobs @FrankJacobs

In the next few years, the remarketing industry will change - not gradually, but fundamentally. That change is the subject of the fourth edition of the Fleet Europe Remarketing Forum, on 5 December in Estoril, Portugal. The automotive industry is currently undergoing a rapid, massive transformation. Driven by technology advances and cultural shifts, the industry is moving towards a shared, connected, post-fossil and autonomous future. CHANGE DRIVERS Remarketing is subject to the same drivers of change, and its future too will look a very different from its present. The outlines of a few major disrupting trends are already visible. For one, the growing importance of online platforms in remarketing vehicles, and the resulting growth in cross-border remarketing. Or the mounting regulatory and fiscal pressure on diesel, still the preferred fuel for fleets – but for how long? And the growing popularity of usage versus ownership, leading to different consumer behaviours and remarketing patterns. Mirroring the megatrends in automotive, the massive changes in remarketing amount to a paradigm shift that will

At the upcoming Remarketing Forum in Estoril, a panoply of experts will inform you about creating efficiencies in the new dynamism of remarketing. Save your seat via http://forum.fleeteurope.com

confront remarketing professionals with a lot of challenges in the coming years. These challenges – and the opportunities they create – are the subject of the fourth annual Fleet Europe Remarketing Forum, which will take place in Palacio Hotel in Estoril, Portugal on 5 December, as tradition has it, one day before the annual Fleet Europe Summit and Awards. INDUSTRY EXPERTS The future challenges and opportunities of remarketing will be examined in a number of carefully honed sessions, featuring industry experts.

• The

opening session will provide a general overview of the current and future regulatory, economic and geopolitical situation, and its potential impact on remarketing.

• The second session will delve into a few key challenging areas in which progress has been made, including cross-border trade issues and fair wear and tear guidelines; and others that need more attention, including mileage fraud,

pan-European logistics solutions and EU lobbying.

• The third session will focus on new B2C and B2E business models, fuelled by the progress in online remarketing, and their current and future impact on the business.

• The fourth session shines a light on the shift away from diesel, the rise of alternative powertrains, and the impact of both on residual values.

• In the final session, the focus is on innovation – and inspiration: the nominees for the International Remarketing Award will offer insight in their own business, and will share which other innovators in remarketing fascinate them. FIRST REMARKETING AWARD The Fleet Europe Remarketing Forum will end with the presentation of the very first International Remarketing Award to one of the candidates who presented their cases in the final session.

FLEET EUROPE #91

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EXPERT

From Corporate Leasing to Global Mobility Over the past five years, Full Service Leasing (FSL) has had the fastest growth in the corporate car registration market, worldwide. FSL also appears to be a great opportunity for the private market, as demand for alternative models of mobility grows. Does this mean that leasing is the panacea to sell cars in the future? If so, what are the consequences for leasing companies, Rent a Cars and OEMs? PASCAL SERRES, GLOBAL FLEET EXPERT

FSL FOR CORPORATE CLIENTS HAS BEEN A FAST GROWING AND PROFITABLE BUSINESS SO FAR FSL has been very popular in Europe and has financed a growing portion of new car registrations. The share of FSL among new car registrations reached over 50% in both the UK and the Netherlands. It also represents over 30% of corporate fleet registration in Southern Europe. FSL has progressively replaced purchase, financial lease and allowed a complete outsourcing of fleet management for corporate businesses. Outsourcing has represented a win-win for corporations and leasing companies, which have enjoyed a profitable business since 2009. LeasePlan and ALD both reported around 20% after tax return on equity in their published accounts three years in a row (these results are based on a combination of financial and service margins, leveraging on 10-15% equity). Arval doesnâ&#x20AC;&#x2122;t publish accounts, but its profitability is assumed to be comparable. BMW (Alphabet) and Mercedes (since Athlon acquisition last year) are also very profitable. Other manufacturers have limited market presence and operate mainly in

their home country or through white label agreements with independent lessors. As a consequence, the market has been somewhat oligopolistic. In Europe, five or six players (Lease plan, Arval, ALD, Alphabet, Athlon and VW finance) are competing on the international corporate market, while manufacturers concentrate leasing activities for SMEs through dealers. In all cases, FSL is a profitable activity and competition remains limited. Notwithstanding, the competitive landscape is changing rapidly, as it is being disrupted by the development of private lease and more flexible solutions made possible by telematics applications and the generalization of smartphones.

PRIVATE LEASE AND FLEXIBLE PRODUCTS ARE CHANGING THE COMPETITIVE LANDSCAPE Demand for private lease is being boosted by marketing campaigns that encourage customers to enter leasing schemes, thus generating immense opportunities and risks. Private lease offers huge potential for leasing companies in a context where FLEET EUROPE #91

EXPERT

With the rise of shared and connected mobility services, a new constellation of partnerships can be expected.

consumer finance captives have a dominant position, but in most cases donâ&#x20AC;&#x2122;t have the capacity to offer FSL company services. However, FSL companies are not used to dealing with private customers. OEMs and independent lessors are preparing to compete for this new market segment and the leasing business will likely take a greater share of new vehicle registrations. This is a sensitive situation for car manufacturers, as this model will likely cannibalize existing sales (consumer finance). Lessors, on the other hand, may loose their white label agreements and compete on the corporate market with manufacturers. OEMs will likely have no other choice than to enter as fast as possible on this market and heavily invest into product development to compete against specialized leasing companies, which will also have to invest in new products to remain ahead. Web quotation tools and smartphone applications, low cost FSL, flexible mileage and flexible contract length will also be necessary to address the private market.

NEW OPERATING MODELS ARE UNDERWAY TO ADDRESS THE COMPETITIVE LANDSCAPE The connected car is making flexible lease, car-sharing and car exchanges a reality. All actors in the mobility area are aware of this and working on it: FSL companies, manufacturers and Rent a Cars. The objective is to offer drivers, whether private or corporate, a vehicle for every situation and recycle cars among different drivers. These new products are already threatening the traditional Rent a Car business: FSL companies and OEMs have started to manage their own fleets and invest in car-sharing applications. This would seem paradoxical at first, given Rent a Cars are

FLEET EUROPE #91

the most sophisticated businesses (central booking, complex price structure, usage management), but at the same time, they are very much under threat. FSL companies are moving toward shorter term leasing (6, 12, 18 months) and some Rent a Car companies are extending the term of possession to up to 24 or 36 months. In both cases, they are moving toward a required management of assets across different drivers and/or customers. At present, they start to compete on a marginal portion of their business, but may progressively become competitors rather than partners. FSL companies are offering pre-delivery cars and already own fleets. Car sharing for private or corporate clients is becoming a battlefield for independent FSL companies, Rent a Cars and obviously manufacturers. Some of them are developing their own platform; others are buying start-ups like Europcar with Ubeeqo for instance. The distinction between corporate and retail markets will fade away and manufacturers may have to adapt their selling price policy in the near future. As car owners will no longer be car users and the retail market potentially disappears, users will subscribe to mobility solutions rather than lease a car. A report from RethinkX forecasts that on-demand autonomous electric vehicles owned by fleets will serve 95% of all US passenger miles travelled by 2030. It might be exaggerated, but the transition to a new world of mobility (car-sharing, multimodality platforms, etc.) is underway and all existing actors need to innovate and adapt in order to remain relevant. As new players emerge, we may see a new constellation of partnerships develop, while exponential technology accelerates the pace of change.

FULL SERVICE LEASING:

50%

OF NEW CAR SALES IN UK AND NL

30%

OF NEW CAR SALES IN SOUTHERN EU

FORECAST:

95%

OF US PASSENGER MILES = ON-DEMAND, ELECTRIC AND AUTONOMOUS BY 2030

ANALYSIS

Mobility matters, the car rental evolution Jonathan Manning

As business and private drivers seek to hire cars for as little as an hour or as long as a year, daily rental companies are having to adapt to the fast changing demands of the mobility market. And that’s exactly what they do, opening up new opportunities for corporate customers.

“Mobility? We have been a mobility company for 100 years!” said Chris Rusden, senior vice president sales, Hertz International.

doing, can you use your brain, can you use your leverage, can you use your resources and your contacts to replicate that and do it better?”

Echoing the frustration of actors labelled as ‘overnight successes’ after years of hard work and preparation, so the car rental industry must bristle at the idea that mobility is a novel concept. Meeting customers’ needs for travel by providing vehicles for a day, week, month or longer, at thousands of convenient locations, has been the USP of daily rental companies since their inception.

A prime example is the recent partnership announced between Hertz Europe and Blacklane, a global professional driver service. This offers Hertz customers the option of a professional driver, along with their hire car, in more than 250 cities and 500 airports worldwide, a sort of uber Uber that removes the stress of driving in unfamiliar cities and countries.

At last, however, the dots of integrated mobility solutions are joining, creating opportunities as well as threats for rental companies. Car clubs, car sharing schemes and ride hailing services all borrow some of the DNA of traditional car hire. NOT THE NEXT KODAK “These entrepreneurial mobility companies test us,” said Chris Rusden. “Mobility has really changed in the last five years. Our industry has to be able to demonstrate that we can be relevant for the next 100 years, or we will simply be seen as the next Kodak. The challenge for Hertz and our industry today is: can you watch what the market is

Chris Rusden added that ride hailing firms, such as Uber and Lyft, have yet to have any impact on car rental demand, but they are influencing customer expectations and forcing rental companies to review their approach to the market. The ease and simplicity of Uber’s ride booking app, and its all-in-one charging capabilities, are setting new benchmarks. Interestingly, both Hertz and Avis are partners with Uber, seizing the opportunity to participate in the supply side of the mobility industry by providing Uber drivers with access to cars for periods as short as an hour up to long term rentals.

FLEET EUROPE #91

ANALYSIS

Hertz Europe has developed a partnership with Blacklane, a global professional driver service , to offer their customers the option of a professional driver with their hire car and remove the stress of driving in unfamiliar places.

COST OF MOBILITY The ethos of ‘Right Vehicle, Right Place, Right Time’ is how Europcar captures the mobility zeitgeist. “Our goal in the last couple of years has been to be much more open-minded about the range of transport solutions that will work best for an organisation – public or private sector,” said Clive Forsythe, corporate sales director, Europcar UK Group. “It’s not just about daily rental. We need to encompass car use by the hour, ride hailing, chauffeur drive and even the integration of public transport as part of the journey.” A series of acquisitions in the mobility field have strengthened Europcar’s position: it owns a majority stake in car sharing specialist Ubeeqo; has bought the electric car club business, E-Car; and has taken a minority stake in Wanderio, a web application that calculates the best transport solutions from point A to point B, allowing travellers to compare, combine and book tickets for trains, flights, buses and airport transfers. “The key is to address the specific needs of organisations that need to provide mobi-lity solutions for their employees,

FLEET EUROPE #91

providing an innovative approach to business car-pooling, encompassing fleet and traveller management,” said Forsythe. “It makes no sense to have a fleet sitting in a car park ‘just in case’ an employee needs a vehicle. But, equally, business users can’t be left without transport when they need it.

SAVVY MOBILITY TECH Daily rental companies are investing heavily in cutting edge mobility ideas. The Europcar Innovation Lab, for example, both studies mobility market usages and identifies other businesses that could complement the core Europcar service, said Clive Forsythe, corporate sales director, Europcar UK Group. Meanwhile, Hertz sponsors the DRIVE Innovation Center in Israel, which promotes the development of technology for smart mobility.  Michel Taride, group president of Hertz International, said: "We will be collaborating with start-ups and entrepreneurs on defining real-world applications for their ideas for smart mobility including car rental, and providing them with the opportunity to pilot their initiatives.” One current area of research is how customers will want to experience travel when autonomous vehicles arrive, with the option of vehicles set up as mobile offices, gaming consoles or virtual ‘malls’ for a spot of retail therapy. “All these people will be driving around in autonomous vehicles with free time. How do you capture their free time?” asked Chris Rusden, senior vice president sales, Hertz International.

ANALYSIS

With the purchase of the electric car club business, E-Car, Europcar intends to address the need for providing an innovative approach to business car-pooling, encompassing fleet and traveler management for companies.

So it all comes down to having the right management information to give us and our customers the insight to allocate the right transport solution for the user’s need. And that should include insight into the drivers: how easy it is made for them to share the cars, how ‘eco-friendly’ they drive, etc.

SEAMLESS PROCESS This booking platform must also automatically direct employees to the most cost effective and accessible mode of transport, added Bewley. "The technology which employees use to book each trip is essential. It needs to reflect the fleet or travel policy,” he said.

We can offer dedicated car sharing vehicles, in an organisation’s car park and ready to use by authorised drivers, for business or private travel. And that means a customer’s own fleet size can be reduced by sharing vehicles rather than owning or renting them. It can also minimise budgets spent on taxis and mileage allowances.”

“Then the fleet manager needs to ensure those options are used, either by policy compliance or clear guidance of options.”

This highlights the trend of fleet departments moving towards a ‘total cost of mobility’, said Adrian Bewley, head of business rental UK & Ireland at Enterprise. "When companies adopt this approach, suppliers work with them to analyse and plan out their requirements and provide bespoke transport options that best suit the range of journeys required,” he said. “For example, offering rental on demand (car club) alongside the rental mix as another option for shorter trips enables companies to move away from grey fleet and pool cars. Having one integrated booking platform to select your journey type is key, to give the necessary flexibility.”

A partnership between car club pioneer Zipcar and facilities management company Vertas offers a prime example of how a flexible approach to mobility can transform a fleet’s travel plans. Vertas now operates no company cars, but has a pool fleet of 88 vehicles accessible to 1,100 drivers. The cars are fitted with Zipcar’s Local Motion system, which gives keyless access and lets fleet managers track the vehicles via GPS, monitor reservations, manage drivers, and capture essential data. “Vertas has experienced huge time saving for drivers and admin support as well as higher vehicle utilisation with multiple bookings per car per day,” said a Zipcar spokesman. “Keyless access to vehicles has helped reduce grey fleet usage and mileage claims as drivers find it easier to book and collect a pool car than use their own.”

FLEET EUROPE #91

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MANAGEMENT

Between governance and roll-out Tim Harrup

Structuring an international fleet management system is not the same as organising a national system. There are far more people to take into account, along with local customs, preferences and business reality…

“Strong cooperation with HR, Procurement and the key business representatives is key”, says Antal Palmai of E.ON.

FLEET EUROPE #91

The first element to consider, as Antal Palmai, Head of Global Category Management of E.ON points out, is to analyse how fragmented the fleet may be across the countries, and whether you have the internal resources for local input. If not, is the fleet management already being outsourced as much as possible? Andy Leeden, Global Category Manager of AstraZeneca and winner of the Intenational Fleet Manager of the Year Award 2016, also believes in first things first. Establish a clear understanding of requirements, and what you and your stakeholders want to achieve. There must be some clear overall guiding principles for fleet that support wider business objectives.

“A global fleet policy is almost impossible, but a global fleet strategy that sets direction and priorities for the countries is a must”, according to fleet expert Andy Sacha.

Fleet expert and former global fleet manager Andy Sacha even raises the question of whether a global fleet policy is possible at all, saying that a lot of the decision making is still localised or regionalised; there is no global fleet policy, he says, (even though it is talked about a lot) but a global fleet strategy that sets direction, guidelines, guidance, priorities for the countries. Central Governance decides on these, but local Governance implements and feeds back. CATERING FOR NEEDS This leads on to the central question of how to implement the strategy. And once again, the wider picture is highly relevant. A lot will depend on the governance set up in the multi-national company, and it makes sense to mirror

Andy Leeden, of AstraZeneca: “Establish a clear understanding of requirements, and what you and your stakeholders want to achieve”

MANAGEMENT

add services – these can be key differentiators. And finally, set realistic timelines for supplier responses and results analysis – it always takes longer than anticipated. Antal Palmai however, has a different approach which he describes as a unique point of view. He considers the fleet market as a spot market both when it comes to OEMs or leasing. Actual targets vary by supplier and region – he says you might even experience that an affiliate of a leasing company in country X wants to increase margin, whereas in country Y margin may be sacrificed to boost the fleet size managed. The same goes for OEMs, he points out. On top of that lessors have different RVs and maintenance cost assumptions for the same models, and the different lifecycle of the competing models results in different ‘best buy’ offers from time to time. So for bigger fleets (and FM resources available to manage multiple supply, he believes believe spot buying is the right thing to do.

The governance team needs to include stakeholders of all important business departments.

this so you can align to key stakeholder groups, says Andy Leeden. Given the differing maturity and requirements for fleet globally, he also favours a regional approach engaging regional leadership in procurement, finance and HR. Antal Palmai says that for bigger international fleets he would recommend having a dedicated Fleet Director with a regional/local team. He believes, however, that while smaller fleets could be easier bundled to a region, bigger fleet countries like the UK or Germany need dedicated staff. Strong cooperation with HR, Procurement and the key business representatives is also key, and it makes sense to formalize it and to make it regular. Fleet Governance needs to have an appropriate structure to meet the needs of the organisation and culture. For Andy Sacha, despite his scepticism, there is the reality that fleet governance needs to cater for both centralised and de-centralised organisations depending on the organisation and the associated complexity of both. For fleet, he says, it is important

to have a senior sponsor. Who this may be will depend on the size of the organisation; big multinationals should identify someone one level down from the board. For smaller companies, a board member might be possible. And in the case of fleet, this person will most likely be a finance person depending on the fleet size, even though the car policy itself is likely to be in the HR function. UNDERSTANDING SUPPLIERS The next issue to be addressed is how to organise tenders and other supply-related services. Andy Leeden looks at the concrete action points. He advocates giving suppliers sufficient information so they can understand the opportunity and objectives, using standard templates and requesting full disclosure quotations to simplify compari-son of offers. He is also pragmatic, and his advice is to avoid the urge to quote on every car and every contract permutation, but instead to apply the 80/20 rule to manage the volumes of data needing analysis. He also believes it to be important to include opportunities for suppliers to be able to demonstrate innovation and value

KEY LESSONS Our experts have some final words of wisdom for international fleet managers, based on their extensive experience. • Establish a vendor strategy to identify your wider supplier panel (globals only, regional players, local champions…) • The Governing Board should consist of representative of Finance, HR, HSE, Tax, and Operations (purchasing). • The characteristics of a good governance model include: authority, know-ledge and transparency, acceptance by the group/company, KPI setting and reporting • Decide on the number of lessors needed per country • Negotiate them with your supplier panel and try to agree on comparable terms with all

FLEET EUROPE #91

SMARTMOBILITY I 2017

On December 6th, the European car fleet community will come together in Estoril (Portugal), with no less than 800 fleet professionals to get insight in new trends impacting the international fleet and mobility management profession. Fleet Europe will set up a dedicated Start-up Café, giving all start-up companies the opportunity to communicate, meet and promote their new business development via a cluster of booths, information desks and a networking area.

WILL YOU BE THE START-UP OF THE YEAR? This year again, Fleet Europe will present an award to the best start-up from the fleet and mobility industry. We are thus looking for candidates: start-up companies developing innovative product/ service in the fleet & mobility world. Join the process, fill the application form and get your company on the list with last year’s winners: > Weproov, the app that guides drivers to compile a full vehicle condition report

“Our award validated our business model in the eyes of the fleet and mobility world”

> Spiri, the revolutionary on-demand carpooling service powered by electric vehicles

Alexandre Meyer, Co-founder Weproov

> Assisto, the mobile app which enables drivers to file CASCO (Casualty and Collision) on their phone

Apply now and be our next winner! More information on forum.fleeteurope.com

FOR INTERNATIONAL FLEET & MOBILITY LEADERS

MANAGEMENT

You don't need to be big to be a winner Steven Schoefs @StevenSchoefs

“The Fleet Europe Awards are unique in the industry. The members of the jury make a conscious effort to step outside their own commercial preferences and interests. As a group, their aim is to objectively select those candidates who present the best fleet or mobility initiatives. And those don't need to be huge initiatives, huge ideas or huge projects. You don't need to be big to be a winner”. So says Michiel Alferink, Vice President International Sales at Athlon. And he would know, because he is the Jury President for the 2017 Fleet Europe Awards, which will be presented in Estoril (Portugal) on 6 December 2017. Michiel ALFERINK is jury president of the 2017 Fleet Europe Awards for Fleet Managers.

SAVE THE DATE AND REGISTER The Fleet Europe Awards jury will accept candidacies for the 2017 Fleet Europe Awards categories until 15 September. The nominees can be individual fleet professionals or entire fleet teams. For terms and conditions and how to apply: forum.fleeteurope.com/awards.

Why would fleet and mobility managers feel the need to participate? “The Fleet Europe Awards are a great platform for fleet and mobility managers – not always the most visible links in the corporate chain – to showcase their initiatives, share and benchmark them with their peers and advance the collective know-how of the wider fleet and mobility community”.

What's in it for the candidates themselves? “The jury's questions and feedback, and the exposure to the projects of other candidates, will help them reflect on and improve their own project – whether they win a prize or not. And the Awards give their company a chance to put a spotlight on their projects and innovations. Of course, it's always nice if you do win the prize itself!”

What's your message to potential candidates? “Don't underestimate your own initiatives, ideas and projects. A lot of fleet and mobility managers out there are probably achieving results that they don't think are so special. Results on cost, for the environment, concerning employee safety or satisfaction. Well, your good results may be more extraordinary than you think. And like I said, you don't need to be big to win”.

What kind of candidates and projects are you looking for? “Innovation. The courage to go where no one has gone before. Dare to be different, dare to differentiate. Results, implemented. And, if possible, projects with an international dimension”.

A last word of advice to fleet or mobility managers asking whether they should participate? “The jury members are tasked to be objective. But if you know one of them as a business contact, don't let that stop you from approaching them to ask about the Awards and how to participate. The more candidates, the better for the Awards!”

FLEET EUROPE #91

MANAGEMENT

Awards 2017: a Celebrating supplier innovation Céline Gilson @CelineGilson

‘Challenging’: that is the key word to describe the fleet and mobility industry of today, not least from the perspective of international suppliers. Client demands have changed from previous years: if once it was enough to provide company cars for entitled employees, mobility requirements these days comprise an entire suite of solutions – with the company car only one of many options for the safe and timely mobility of employees. On top of that, government rules and regulations are getting more restrictive, pushing customers to review their policies and suppliers to offer greener products and services. And finally, there is the growing supply of – and demand for – technology that offers cost-saving analysis of driver behaviour, that increases safety or that helps turn the car into a four-wheel office. This trend is pushing suppliers to develop increasingly advanced solutions, but it is also pulling new players into the industry. All this adds up to a business model that is in the midst of radical transformation. Only suppliers able to adapt to this change will be able to survive beyond the next few years. Fleet Europe, the leading international magazine for fleet management, will recognise and reward the most innovative among the suppliers at the Fleet Europe Awards Ceremony, on the 6th December in Estoril (Portugal).

FLEET EUROPE #91

Who will succeed to XXImo, winner of the Fleet Industry Awards 2016, WeProov, first winner of the Smart Mobility Start-up Award 2016, and Jose Luis Criado, International Fleet Hall of Fame 2016 ?

That is why Fleet Europe is once again looking to select the best of the best, in the following categories: 1. INTERNATIONAL FLEET INDUSTRY AWARD The jury of the International Fleet Industry Award will be particularly attentive to innovation, efficiency and TCO impact as they apply to international fleet management when selecting the tool, product or service to be granted this award. 2. START-UP OF THE YEAR The Start-Up of the Year Award celebrates start-ups that are based in Europe and develop innovative and/or disruptive products and/or services for the fleet and mobility industry. Around 10 start-ups will be selected by the jury to advocate their project in front of the European fleet and mobility community. 3. INTERNATIONAL REMARKETING AWARD BY FLEET EUROPE The International Remarketing Award will be given to an international actor in the

automotive remarketing sector, having developed an innovative project, product or service standing out in the field of international automotive remarketing operations. We are seeking for an innovation that contributes to the efficiency and transparency within the remarketing process, and/or contributes to the margin realized on the vehicles. 4. INTERNATIONAL FLEET HALL OF FAME Every year, Fleet Europe celebrates an industry leader who has contributed over their entire career to the professionalisation of and innovation in international fleet management. Each fleet manager with more than 5 years’ experience is eligible for this award. If you are convinced that you have helped develop innovative services and products that have contributed to the growth in professionalism and overall stature of the fleet management industry, please apply now for the chance to receive the recognition that you deserve.

estoril PORTUGAL

REMARKETING AS WE KNOW IT WILL CHANGE Is it really the end of remarketing as we know it? We cannot say for sure but what is certain is that the rapid, massive changes that are transforming the automotive industry as a whole will also have a profound effect on the automotive remarketing sector. The 4th edition of the Fleet Europe Remarketing Forum will delve deep into subjects that will prove crucial to the future of the sector. Combining networking opportunities and content for the different stakeholders within local and international remarketing: OEM’s, leasing and rental companies, residual value experts, auctioneers, dealers and traders.

AMONG THIS YEAR’S SESSIONS: 1. THE BIGGER REMARKETING PICTURE: the economic, geopolitical and technological evolution, and its potential impact on remarketing. 2. PRESENT AND FUTURE REMARKETING CHALLENGES: cross-border trade and vehicle mileage fraud. 3. B2C AND B2E: BUSINESS MODELS OF THE FUTURE: new technology is making the rise for new business models unavoidable. But not everybody is convinced of the direction. 4. TO DIESEL OR NOT TO DIESEL: clarifying the blurring diesel picture and the impact on residual values and remarketing. 5. INNOVATION AND INSPIRATION: the nominees for the first-ever International Remarketing Award will give insights into innovation in remarketing.

WHEN? The 5th of December WHERE? At the Palacio Hotel, Estoril (Portugal)

REGISTER NOW Register by October 20 with the code ‘Aumacon2017’* and enjoy due the media partnership with Aumacon upon an additionnal discount of a 100¤ on the early bird rate. (* : Code to be filled in when registering through the event portal http://forum.fleeteurope.com/practical-information/registration-fee.html)

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FOR INTERNATIONAL FLEET & MOBILITY LEADERS

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CONTRIBUTORS Tim Harrup, Yves Helven, Frank Jacobs, Jonathan Manning, Dieter Quartier

Aline Verpoorten – Internal Sales Assistant averpoorten@nexuscommunication.be

EXPERT Pascal Serres (Nexus Communication)

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ADVERTISEMENTS SEAT (2), ALD Automotive (4), ŠKODA Pictures: ©Shutterstock AUTO A.S. (6), Daimler AG (12-13), ©ThinkStock - LeasePlan Volvo (20), Alphabet International (27), Fleetcorp (29), Volkswagen AG (30-31), Layout: Cible Maserati (38-39), LeasePlan International contact@cible.be www.cible.be (40), BMW Group (43), Adam Opel AG (44), Volkswagen Financial Services (47), SALES & MARKETING Nissan Europe SAS (51), Peugeot (56), David Baudeweyns – International Car Remarketing Association (58), Key Account Manager dbaudeweyns@nexuscommunication.be Athlon International (59), Citroën (61), Enterprise Holdings (67), Groupe Daniel Savigny – International Key Renault (68), Hyundai Motor Europe (76) Account Manager dsavigny@nexuscommunication.be Cover: Cible

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Moving on in business.

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Fuel consumption in l/100 km for the All-New Hyundai i30 Wagon range: Combined 5.8–3.6 l/100km, CO2 emissions 135–95 g/km. The fuel consumption and CO2 emissions figures are preliminary. This means that the figures displayed are approximate and collected before official obtainment of the EU type approval for the All-New Hyundai i30 Wagon. Definitive figures were not available at the time of printing. The Hyundai 5-year Unlimited Mileage Warranty applies only to Hyundai vehicles that have been originally sold by an authorised Hyundai dealer to an end consumer and as set out in the terms and conditions of the warranty booklet.