FOR INTERNATIONAL FLEET & MOBILITY LEADERS
#93
Nexus Communication - Fleet Europe #93 - Periodic magazine - October 2017 - Deposit Office Liège X
10/2017
IMPACTING YOUR TCO IN 2018 MANAGEMENT Discover the 2017 Awards nominees
ANALYSIS Luxury brands in the fleet market
Smart cities are the future p.44
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CONTENT 20 REASONS TO COME TO ESTORIL TCO is probably the most frequently used acronym in our industry. Like last year, our editorial team has unraveled the main pillars of your fleet’s cost structure, with a prediction for 2018 as a bonus. However, after 20 years, the Total Cost of Ownership concept is running on its final legs. The rise of new mobility initiatives and digitization bolsters the transition from a TCO model to a TCM (Total Cost of Mobility) model. A must-attend in this respect is the 2017 Fleet Europe Summit on 5 and 6 December in Estoril, Portugal. The IFMI Session on the first day will focus on taking your fleet management to an international, indeed even global level. That same day, the Remarketing Forum will investigate why selling end-of-term vehicles will change and how this will impact your business. The main theme of the Fleet Europe Forum on 6 December is Uncovering the DNA of the Fleet and Mobility professions of tomorrow. Next to quality content from experts, we offer you networking opportunities in the Fleet Europe Village and the Start-up Café. In the evening, we celebrate the best achievements from our industry with the Fleet Europe Awards, after which we hope to share a moment of joy with you during our 20th Anniversary party. You can now register at forum.fleeteurope.com. Don’t miss out! Steven SCHOEFS Chief Editor, Fleet Europe
5&6 DECEMBER
7 DECEMBER
FLEET EUROPE SUMMIT
Estoril (PT)
GLOBAL FLEET LATAM EXPERT MEETING Estoril (PT)
5-30 DOSSIER 10 Trends impacting your TCO in 2018
New car prices are meaningless...............6 Get a fix on fuel spend .....................................8 Diesel's not dead (yet) ................................. 12 Low interest rates prompt fleet funding review .................................................. 14 Cut the cost of claims ...................................... 16
42 BUSINESS
Connected thy fleet will be ....................... 20 The explosion of the Tax element due to WLTP.........................................................24 TCM is gateway to untapped market ... 26 Fleet Manager, the end is near.................. 28 Disruption and Innovation........................ 30
48 EXPERT
Vinzenz Pflanz, CSO GDPR, the four letters Sixt Leasing «Mobility that concern all of us will change everything»
64 MANAGEMENT The true cost of an accident
INNOVATION
European Start-ups driving smart mobility innovations …………………………………………… 33 An electrifying game of chess ………………………………………………………………………………………………………………………34
BUSINESS
The news shelf ………………………………………………………………………………………………………………………………………………………………… 37 ARI Fleet: open-end lease for lower TCO……………………………………………………………………………………… 40
MOBILITY
“Smart cities are the future”
………………………………………………………………………………………………………………………
44
REMARKETING
Focus on diesel and data …………………………………………………………………………………………………………………………………… 46
ANALYSIS
Luxury brands in the fleet market ………………………………………………………………………………………………………… 51 Bringing luxury to the ranks …………………………………………………………………………………………………………………………54 Let me drive & entertain you ………………………………………………………………………………………………………………………… 56 Look at my company Rolls ………………………………………………………………………………………………………………………………… 58
20 YEARS OF FLEET EUROPE
Attention for Telematics and road safety ……………………………………………………………………………………… 60
MANAGEMENT
Fleet Europe Awards 2017: meet the nominees………………………………………………………………………… 67
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DOSSIER
TCO WILL BECOME TCM IN 2018 STEVEN SCHOEFS Chief Editor @StevenSchoefs
Three constants will dominate the future of fleet and mobility management. Firstly, minimising your fleet’s Total Costs of Ownership will be paramount. In 2018 it will be vital to ensure that every element of the TCO equation is as competitive as possible. Secondly, digitisation is now critically important for monitoring and managing fleet and mobility programmes. Smart, real-time, digitised communication has become the cornerstone of efficient and effective fleet management in Europe. But amid all the big data and connected solutions it’s essential not to lose sight of the individual – your entire workforce, both company car drivers and other members of staff, will have the biggest impact on your TCO, or rather, your TCM (Total Cost of Mobility). Finally, the concept of mobility is rapidly overtaking traditional car-centric views of business travel. Fleet management is transforming into mobility management, a sector where cost-efficiency, connectivity and digitisation are more important than ever.
FLEET EUROPE #93
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DOSSIER
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New car prices are meaningless Jonathan Manning
Depreciation has nothing to do with the official list price of vehicles, so minimise TCO by concentrating on residual values rather than new prices.
Experienced fleet managers can find themselves at loggerheads with purchasing departments when creating new vehicle choice lists. It’s an oversimplification to say that purchasing specialists want to fill their spreadsheets with discounts and acquisition prices, while fleet managers prefer to focus on total cost of ownership (TCO), but there’s no doubt that buying cheaply does not necessarily lead to competitive running costs. If a vehicle suffers higher than average depreciation or proves costly to service and maintain, and upfront price advantage can soon disappear.
Yet official manufacturer list prices continue to influence fleet decision making, a rough benchmark of an expensive or cheap car to operate. Beyond the role of official prices as a basis for calculating company car tax, however, new car prices are largely redundant. They fail to reflect the true cost of acquisition or lease rates and have little bearing on TCO. It’s no secret that discounts and rebates ‘sweeten’ fleet deals, and even in the consumer market a suite of financial offers is increasingly leading consumers to concentrate on the cost-per-month to fund a car, rather than the headline figure in a manufacturer brochure.
CHANGE IN THE COST OF MOTORING IN THE LAST 10 YEARS
PERCENTAGE CHANGE
200%
150%
Cost of living Average wages All motoring Purchase (motoring) Maintenance (motoring)
100%
Petrol & oil (motoring) Tax & insurance (motoring)
50%
0%
JUN 2017
MAR 2017
JUL 2016
NOV 2016
MAR 2016
JUL 2015
NOV 2015
MAR 2015
NOV 2014
JUL 2014
MAR 2014
JUL 2013
NOV 2013
NOV 2012
JUL 2012
NOV 2012
MAR 2012
JUL 2011
NOV 2011
MAR 2011
NOV 2010
JUL 2010
MAR 2010
JUL 2009
NOV 2009
MAR 2009
JUL 2008
NOV 2008
MAR 2008
JUL 2007
NOV 2007
-50%
RAC Foundation (Source: ONS)
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FLEET EUROPE #93
DOSSIER
USED-CAR CORRELATION And when it comes to forecasting residual values, there’s virtually no correlation between what a car costs, either in terms of its list price or acquisition price, and its value as a used car three or four years later, according to Andrew Mee, senior forecasting editor at Cap HPI.
mainstream there are disparities in depreciation between different sectors of car.
“Used car prices are not really linked to new car prices,” he said. “The price one pays on the used car market very much depends on the balance of supply and demand; how many used vehicles are in the market, what the economy is like, and what the appetite is like for people to buy those cars at the best possible price. Residual values are much more linked to supply and demand than the cost of a new car.”
“Where values have fallen most is B and C class vehicles – Opel / Vauxhall Astra, Ford Focus, and Volkswagen Golf, because people are switching from those to SUVs.”
This explains why used car prices in the UK have been declining in recent years despite a buoyant economy and record new car sales. In fact, it’s these highest ever new car sales that are to blame for a steady year-on-year decline in residual values of between 5% and 6%. “There are more and more used cars in the market because of the big increase in new car registrations dating back to 2010 after the recession [of 2008-09]. After all those new registrations come back, it’s deflated used values. New car prices have gone up in line with inflation, but used values have gone down,” said Mee. In real terms, depreciation has actually increased even further because of the gradual improvements in vehicle specification, with the addition of Euro 6 engines, advanced driver assist safety systems and better in-car infotainment. In this oversupplied market, used buyers are getting a better deal than ever. So for a fleet decision maker looking to minimise depreciation, which types of car are bucking the trend?
“SUV values are holding up pretty well, considering the numbers there are in the market. The demand is very much there at the moment; people want to buy them new and used,” said Mee.
A decade after the financial crash is an appropriate time to track the evolution of new car prices, but as the panel shows, comparing like-with-like is a challenge, as is attempting any generalisation across Europe. Prices and model specifications differ from country to country, as do national rates of inflation, especially among countries with their own currencies.
It would be a rare fleet that peppered its choice list with such exotica, but even in the FLEET EUROPE #93
However, compared to the other ingredients within TCO, increases in new car prices have been modest, according to the RAC foundation. This found that new car prices have in real terms been following a long-term decline, down 11% since 2007, while the cost of vehicle maintenance has risen in a straight line, increasing by 38% during the last decade, while the cost of motoring tax and insurance has soared by 162.55% over the last 10 years. “Over time, operational costs have generally risen significantly above the rate of inflation while the cost of buying a vehicle has not increased as much as inflation,” said the RAC.
AVERAGE PRICE (INCLUDING TAX) OF PASSENGER CARS IN THE EU FROM 2013 TO 2015, BY COUNTRY* (IN EUROS) 30,775 29,588 28,870 32,212 27,793 25,533
GERMANY UK
25,360 24,324 23,776 22,960 22,271 21,730 21,471 21,270 20,404 24,599 23,920 23,636 26,626 25,702 24,902 28,365 25,884 26,013 28,889 28,004 27,238 31,813 31,117 32,013 34,481 32,457 30,785 27,597 27,441 27,054 32,259 32,414 31,472 29,897 26,948 24,743 21,553 20,987 19,906 33,024 31,311 30,341 27,987 26,435 25,561
FRANCE ITALY EU-13 SPAIN BELGIUM NETHERLANDS AUSTRIA SWEDEN DENMARK PORTUGAL FINLAND IRELAND
“The types of car that hold their value best tend to be quite rare and low volume,” said Mee. “So sports cars and super cars, like Ferraris, Lamborghinis and Porsches, as well as the big executive cars like the Audi A8, tend to hold their value better than those that are around in higher numbers.”
In the UK, the Office for National Statistics has tracked new car prices against an index that shows a sharp rise in the late 1990s, followed by a gradual decline from 2004, until 2013 when the trajectory turned upwards again.
GREECE LUXEMBOURG EU-28 AVERAGE
2013 2014 2015
39,160 34,005 32,195
SWITZERLAND
41,379 43,079 45,120
NORWAY 0
5,000
10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 COST OF NEW CARS IN EUROS
ICCT ©Statista 2017
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DOSSIER
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Get a fix on fuel spend Jonathan Manning
Fleets should focus on cents-per-kilometre fuel costs, not cents-per-litre pump prices to drive down their fuel bills.
Indeed, fuel management specialist The Mileage Consultancy reports that recent years have seen greater volatility in transaction costs, which it attributes to two main reasons. “Some fuel cards apply a fixed surcharge every time they are used. It can mean an additional €2 per transaction, irrespective of volume purchased or the pump price,” said Paul Hollick, managing director of TMC. PROACTIVITY IS WELCOME Many fleets have switched to other brands of fuel card to escape these charges. “Secondly, fuel retailers are increasingly using predictive-pricing technology to raise or lower their prices automatically during the day in line with peaks and troughs in demand for fuel,” said Hollick.
DO'S 1. Monitor whether business journeys have to be made. 2. Route plan the most efficient route, minimising distance and avoiding congestion. 3. Check drivers’ business mileage claims are accurate and not inflated. 4. Encourage more fuel efficient driving styles, with less harsh acceleration and braking. 5. Select more fuel efficient vehicles, based on actual (not laboratory) consumption figures.
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Forecasts of more stable oil prices for 2017 and 2018 give fleet operators a chance to catch their breath and present an opportunity to implement long-term fuel saving programmes. After recent volatility, which saw crude oil prices crash from $60 per barrel in June 2015 to $26.55/b in January 2016, prices have stabilised this year, creeping up towards the $50/b level. In July, the US Energy Information Association forecast that Brent crude, the international oil price benchmark, will average $51/b in 2017 and $52/b in 2018. This does not necessarily mean static petrol and diesel prices, however, since the combination of national excise duties, taxes, refi-nery costs and retailer margins have a much larger impact on pump prices than the cost of oil (see chart). Industry guidelines suggest a $2 increase in the price of a barrel of oil represents about a 1cent rise in the pump price, but this differs from country to country.
Proactive fleets are now using TMC reporting to identify where this surge pricing is occurring, and directing their drivers to refuel whenever and wherever prices are lower. Chasing cheaper prices, however, misses far greater opportunities to lower fleet fuel bills. “The largest cost savings on fleet fuel always result from reducing business mileage and fuel volume by avoiding unnecessary business travel, preventing drivers from making excessive mileage claims, eliminating poor driving skills, and specifying provenly fuel-efficient vehicles,” said Hollick. “When fleets capture consolidated fuel and kilometrage data, the managers have full visibility over cents-per-litre all the way down to individual driver level, so they can manage mileage and volume effectively. The rule for reducing fuel expenditure is “minimise your fleet’s kilometrage and volume first, then look for opportunities to negotiate a volume-related price rebate”.
FLEET EUROPE #93
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DOSSIER
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Diesel's not dead (yet) Frank Jacobs @FrankJacobs
Diesel is not dead yet. It's still the favourite fuel or both the private and corporate market. But the question is not if that will end, but when – and how you can protect your fleet against the fallout.
with cheap used diesels. This will be good news at least for those buyers looking for vehicles doing long distances away from the city centres – the limited circumscription within which diesels will still outperform other motorisations. DOWNWARD SPIRAL Meanwhile, the downward spiral is well under way. Diesel may still be the most popular fuel, it is no longer the majority's choice. Between 2015 and 2016, diesel market share of new-vehicle sales in the EU-15 fell from 52.1% to 49.9%. And the slide continues: last April, new diesel registrations fell 19% in Germany and 27% in the UK against the same month in 2016.
Both France and the UK have announced to end diesel car sales by no later than 2040. Norway is going for zero-emission vehicles by 2025.
Dieselgate has convinced both governments and the general public that diesel – once promoted because of its lower CO2 emissions – is in fact a worse pollutant than petrol, because of its much higher NOX, NO2 and particulate emissions. RISING TIDE As a result, the tax burden on buying diesels is rising across Europe, and diesels are increasingly banned from city centres (recently even in Munich and Stuttgart, two of Germany's 'car capitals'). The rising tide of taxes and bans will push down demand, which will dramatically reduce Residual Values. And that will make diesels even less attractive. That
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vicious cycle will obliterate the remaining popularity of diesel. MUSICAL CHAIRS The fleet and lease industry – still the biggest fans of diesel because of its economical performance over long distances – must be careful not to be like the loser in a game of musical chairs: left holding large numbers of diesel cars when RVs continue to drop. Because that will cost them dearly.
Most of the slack is being picked up by petrol, which saw its market share rise from 43.5% of all new sales in 2015 to 45.8% last year. Alternative fuels – although heavily promoted as the future – in fact saw their market share decrease, from 4.5% to 4.2%. INFLEXION POINT And yet it may precisely be electric vehicles that will help fleets hedge their bets against the Diesel Danger. A study by investment bank UCB indicates that electric vehicles will have the same TCO as conventional cars by 2018, creating an inflexion point for demand. Higher demand would in turn lead to lower production cost, accelerating the advantages of EVs over combustion-engine cars.
Diesel RVs are already sliding, but it remains an open question whether this slide will continue, or whether there will be a sudden crash. But when they reach their new, much lower equilibrium, the second-hand market will be flooded FLEET EUROPE #93
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DOSSIER
interest rates 4Low prompt funding review Jonathan Manning
Should businesses with cash reserves purchase rather than lease their vehicles, especially as new accountancy rules reveal interest rates on borrowing?
With interest rates at rock bottom and businesses accumulating cash reserves, finance directors are forced to reconsider the decision of whether to lease or buy company vehicles. The risk of rate rises seems minimal after the European Central Bank said in July that it, “expects the key ECB interest rates to remain at their present levels for an extended period of time, and well past the horizon of the net asset purchases.” So with deposits generating no interest in bank accounts, why should fleets pay interest charges to leasing companies when they could use their own money to purchase company cars and vans?
DO'S AND DON’TS • Do examine the interest charges within leases. • Do explore the opportunity to use cash reserves to purchase vehicles. • Do assess the VAT and tax implications of purchasing and leasing company vehicles. • Do consider the opportunity cost of investing cash reserves in depreciating assets. • Do expect leasing companies to compete on the interest rates they charge.
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David Rawlings, director of consultancy BCF Wessex, said, “We are in an economy with some very good businesses, but times are tough, from a sales point of view particularly, but interest rates are low. That means businesses can sit on quite heavy reserves because they can’t find things to do with their money, because if people aren’t buying you can’t produce more.”
IFRS16 The debate will reignite with the introduction of the new accounting regulation, IFRS16, which will oblige companies to show leased assets on their balance sheets. This will include the interest rate and forecast depreciation, bringing greater transparency to lease contracts. The result is likely to lead leasing companies to compete on the interest rates they charge fleets, spelling cheaper borrowing costs. IFRS16 will also make it easier for businesses to compare the cost of leasing with the cost of loan financing, fuelling lease or purchase deliberations. Low interest rates do not, however, mean low inflation, especially in the UK where currency instability is inflating total costs of ownership. The value of Sterling has tumbled against the Euro in the past two years, from about €1.43:£1 in November 2015, to below €1.1:£1 today.
He believes the favourable VAT treatment of leasing will still make it mathematically cheaper than outright purchase, although tax rules vary from country to country.
This is limiting the scope of importers to the UK to offer fleet discounts and rebates, and increasing UK service, maintenance and repair costs due to the rising prices of imported parts. About 80% of replacement car parts fitted to British cars are imported, with almost three quarters coming from EU-based suppliers.
“I do think it’s a question that people should be addressing” said Rawlings. “But for a normal trading company the directors have an obligation to ensure that money is being used in the best way possible, and it probably isn’t investing in non-core activity.”
A new report by consultancy Frost & Sullivan forecasts that service and repair costs will rise by 10% after Brexit if no deal is reached between the UK and the EU, due in part to a World Trade Organisation tariff of 2.5-4.5% on imported car parts.
FLEET EUROPE #93
ADVERTORIAL
CONCEDED EDITORIAL SPACE
Volkswagen redefines the future The Frankfurt Motor Show (IAA) has been an ideal platform for Volkswagen to make the world familiar with its cars of today and tomorrow. The company has made a number of spectacular moves over the past few weeks, and Frankfurt brings them all together. Starting with the cars of today, the new T-Roc makes its debut to the public, and is set to compete in one of the fastest-growing segments in the European market – compact crossover. The T-Roc has been designed as a crossover that combines the dominance of an SUV with the agility of a compact hatchback model and the dynamics of the compact class. Volkswagen is convinced that the new SUV family member will follow the success in the true fleet channel of its bigger brother Tiguan. LOOKING AHEAD Moving further into the future, Volkswagen Brand is taking a major step in electric mobility. The countdown to a breakthrough in electric mobility has started. The year 2020 marks a turning point. Volkswagen is forging ahead into this new era with the development of dedicated all-electric architecture that serves as a platform for a new generation of innovative electric vehicles – the avantgarde I.D. Family. It all begins in 2020, FLEET EUROPE #93
with the compact and visionary I.D. – a four-door hatchback with a large boot lid, soon to be followed by the I.D. CROZZ – an optional all-wheel drive, zero-emission SUV, which will also launch in 2020. With nominal ranges (NEDC) between 400 and 600 km and consequently also long real ranges, electric mobility becomes more attractive for fleet business: for Management, User Choosers, Sales Staff or the classical Pool Cars. Further I.D. concept vehicles will follow, sharing the unique design DNA for electric mobility, combined with the suitability for daily use. ROADMAP E This is all part of a major commitment which places Volkswagen at the forefront of the EV world. The Volkswagen Group is launching the most comprehensive electrification initiative in the global automotive industry with its “Roadmap E”: With this, Volkswagen will be bringing more than 80 new electric models to customers by 2025, including some 50 purely battery-powered
vehicles and 30 plug-in hybrids. That means Volkswagen will have electrified its entire model portfolio by 2030 at the latest. By then, there will be at least one electrified version of each of the around 300 Group models across all brands and markets. This makes Volkswagen the first big mobility group to have put a date on the electrification of its entire fleet. BRIDGE BUILDERS Modern internal combustion engines are part of the picture of the future: as a bridge to the zero-emission era. Conventional and alternative powertrains are not adversaries. And without efficient and clean diesel engines, climate targets won’t be achievable.
MORE INFO www.volkswagen.com
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DOSSIER
5Cut the cost of claims Jonathan Manning
Don’t rely on new technology to avoid accidents and reduce fleet insurance costs the focus is still the driver and corporate policies, say experts.
The law of unintended consequences is gripping the insurance industry as Advanced Driver Assist Systems (ADAS) inflate the cost of claims. Technology such as lane assist and autonomous emergency braking (AEB) should lower the frequency and severity of accidents, but it is also proving costlier to repair. This presents a dilemma for fleet decision makers aiming to cut their premiums – select vehicles less likely to be involved in an accident; or choose vehicles that are cheaper to repair. Thatcham Research, a founder member of the International Research Council for Automobile Repairs, reported this summer that average repair charges have risen by nearly 32% in the last three years, pushed higher by the cost of replacing ADAS parts. For example, a windscreen replacement for a Ford Focus with ADAS can increase by 123%, when estimated calibration costs are factored in, while the equivalent costs for a VW Golf can increase by 78%. ASSISTED AND AUTOMATED As ADAS is introduced to a growing number of new cars, major insurers, including AXA, Allianz, and Zurich, have expressed concern that drivers will be confused between assisted and autonomous systems and think their car are more capable than they actually are. As a result, drivers might fail to recognise incidents when they need to take back control of the vehicle. The insurers are now calling for vehicle manufacturers to make a clear distinction between assisted and automated systems in their sales and marketing. It’s an area where fleet managers will need to concentrate at the hand-over of new vehicles to drivers. David Williams, head of underwriting at AXA, said: “Autonomous Vehicles will
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make our roads much safer, but inappropriate use or marketing of intermediate technology could confuse road users and cause unnecessary accidents.” If ADAS hold out the prospect of an accident-free future, in the the short-term fleets need to remain focused on accident and risk management programmes to limit the cost of insurance. Premiums are rising; up by 11% year-on-year in the UK, according to the Association of British Insurers. One of the contributing factors is an increase in Insurance Premium Tax (IPT) from 10% to 12% this year, still below France (33%), Germany (19%) and Italy (12.5%). But any increase is a prompt to explore self-insurance. By carrying risk themselves, self-insured fleets avoid IPT and eliminate insurer profit margins they would otherwise pay as part of their premiums. But other ‘hidden’ costs need to be factored in, such as the management time absorbed by the administration of claims and repairs. “For larger more complex clients selfinsuring can be a very effective means to enhance cash flow, but it is not without risk,” said Matthew Collins, managing director of Ascend Broking. Likewise, a self-insured retention (SIR) with a larger excess can deliver significant savings on insurance premiums, as well as greater control over the claims adjustment process. “When a claim falls within the SIR, you can decide whether to settle it or contest it in court,” said Collins. “You will have an incentive to control losses since you will be paying many of them using your own funds. Your cash flow may improve. [And] You’ll pay losses as they occur rather than paying for them in advance via insurance premiums.”
FLEET EUROPE #93
DOSSIER
Cameramatics or linking telematics to cameras, is the newest trends in driver behaviour technology.
This type of focus to reduce the cost of insurance has to go hand-in-hand with proactive safety policies to avoid accidents in the first place. SAFETY POLICY Andy Price, practice leader in Zurich’s EMEA Motor Fleet team, said, “Whether a business’s focus is compliance or to protect its people, its assets or its bottom line; managing fleet risk is a strategic imperative.” He added that many companies often wrongly blame their drivers for ‘bad driving’ in the aftermath of a work-related collision, but other factors may be at play. “Management needs to ask, ‘what have we done as an organisation that may have contributed to the collision occurring?’. For example, an employee may be speeding due to an unrealistic meeting or delivery schedule,” said Price. New research by TomTom Telematics reinforces this point, revealing that more than a fifth (21%) of UK companies whose employees drive for work have no road safety policy in place, and just 64% have processes in place to profile the risk posed by individual drivers, based on factors such as driving behaviour or previous convictions. Beverley Wise, director UK & Ireland at TomTom Telematics, said, “By employing technology to monitor driver behaviour and providing drivers with live feedback, supported by targeted coaching and training, it is possible to reduce fuel FLEET EUROPE #93
spend, cut insurance premiums and boost productivity.” Telematics enables fleets and insurers to identify where and why risks are higher, highlighting drivers who exceed the speed limit as well as those who accelerate and brake sharply. A controlled study of 9,000 fleet vehicles by Masternaut, a telematics specialist, found that its vehicle tracking system reduced incidents of speeding by 53%. This reduction was further enhanced by new technology that gives immediate in-vehicle feedback to drivers, rather than waiting for a debrief back in the office. The system beeps when drivers speed or accelerate and brake too harshly, and this instant response reduced incidents of harsh acceleration or braking to an average of 4.2 per hour, compared to 5.7 per hour in vehicles with no in-cab feedback. The decline in speeding offences was even more striking, tumbling from five events per 160km to just 2.35 when in-vehicle feedback was delivered. And in a further application of new technology, linking telematics data to invehicle cameras - ‘cameramatics’ - is driving down accident frequencies even further, influencing driver behaviour and letting fleets defend claims that might not otherwise have been contested. “Images are the most powerful evidence in motor claims,” said Steve Agutter, head of European claims at AIG.
DO'S • Establish and enforce a fleet safety policy, making clear expectations of driving behaviour. • Analyse the cause of accidents to prevent future crashes occurring. Pressures placed on drivers may be to blame. • Identify higher risk drivers through telematics data, and act on it accordingly to coach better driving. • Select vehicles with the latest safety technology to avoid crashes. • Investigate self-insurance or a higher excess to lower the cost of premiums.
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The new XF Sportbrake has everything you need in a business vehicle, including one of the longest boots in the segment and a 1.6 m2 panoramic roof. Our range of Ingenium petrol and diesel engines boasts CO2 emissions starting at just 118 g/km. And we’ve added InControl infotainment providing total connectivity to apps including Spotify, and ingenious technology like Gesture Tailgate, allowing for hands-free boot access. When you consider the comprehensive suite of Advanced Driver Assistance Systems (ADAS) features, including Blind Spot Assist, you’ll realise the XF Sportbrake skimps on nothing and gives you everything for your business needs. jaguar.com/fleet-and-business
Official fuel consumption figures for the Jaguar XF Sportbrake in l/100 km: Urban: 8.5 – 5.6, Extra urban 5.9 – 3.9, Combined 6.8 – 4.5. CO2 emissions g/km: 155 – 118. Please drive responsibly on and off-road.
LOWER EMISSIONS From 118 g/km CO2
HIGHER FUEL ECONOMY Up to 4.5 l/100 km combined
JAGUAR CARE
3 years warranty and service
DOSSIER
6
Connected thy fleet will be Dieter Quartier @DieterQuartier
E-call, cloud computing, Internet of Things: new vehicles are becoming digital and remotely manageable assets. With the arrival of aftermarket dongle solutions, your existing fleet, too, can be linked to smartphone apps and workshop platforms.
Maintenance at fuel-consumption-driven intervals, updates performed at the dealer’s, preventive replacement of components likely to fail, towing after a breakdown when they fail: it will all become a thing of the past. As new cars are entirely digitally controlled and can communicate with the carmaker’s service platform, they can be health-checked remotely, avoid unnecessary part replacement and prevent component failure before a breakdown happens – and get the latest software version installed over the air.
The Mercedes me Adapter, a ‘dongle & app’ solution for Mercedes’ cars built after 2002.
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INSPIRED BY TESLA If there is one brand most people associate with over-the-air updates of a vehicle’s software, it must be Tesla. Owners of a Model S and Model X don’t have to visit the workshop to get the most recent version of their car’s human-machine interface, battery management system or even convenience and advanced safety features. The car’s mega-tablet shows a message as soon as an update is available, inviting the owner to connect to a Wi-Fi network and process the car-improving (or bug deleting) bits & bytes. Other OEMs are catching up – and taking the next step in remote aftersales vehicle management. Diagnostic trouble codes (DTCs), engine performance, emission control, and so on: everything can be read, analysed and rectified while the car is parked and connected to the internet. In theory, the car could even be driving, thanks to the upcoming 5G network. No need for a technician, just a brainy operator employed by the NSC or the dealer – or even ‘just’ a computer. SAVINGS FOR YOUR ENTIRE FLEET The time and cost savings potential will certainly make the fleet manager happy. Only when an over-the-air solution is not possible will the driver have to come in and have his car checked in the workshop. And it’s not just new cars that are concerned. Both carmakers and aftermarket suppliers are developing dongles that you can connect to your existing car’s OBD II port, the onboard diagnostics interface, located in the glove compartment or behind a panel in the dashboard.
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Mercedes-Benz, for instance, has developed a ‘dongle & app’ solution for cars built after 2002. Called Mercedes me Adapter, the device connects the car to the Mercedes me platform. The dongle communicates with the user’s smartphone via Bluetooth and shows e.g. the fuel level, trip information, odometer reading, parking location, and so on. That’s interesting for both the user chooser and the vehicle operator. It also connects the car with the official MercedesBenz workshop within the context of MSR. Ford has also its own dongle solution, called SmartLink, a device co-developed with Delphi and Verizon Telematics that for the time being is only available in the U.S. The related app allows the user to remotely lock and unlock his car, create a WiFi hotspot for 8 devices, and so on. SmartLink connects the vehicle with Ford’s service network, allowing communication when the vehicle reports an issue. XEE: OPEN SOURCE, UNIVERSAL DONGLE The French Lille-based mobility start-up Xee, which is backed by Bridgestone, Total and Cofip, takes an open source approach. Other developers are indeed invited to further enhance the system they have developed, namely a universal dongle, which is suitable for virtually every car that has an OBD II port, and an app. Over 7 million kilometres have already been travelled with a Xee dongle on board. Mobivia, the French group behind independent servicing networks Midas, Auto 5, Norauto and ATU, has tested Xee’s system for a year within their Norauto subsidiary. Now that everything is in place, it will be rolled out in France, Germany, Belgium, Luxemburg, Italy, Spain and Portugal. The data shared with the service centres will enable customer-specific communication. Especially for the biyearly tyre change, the dongle can help prompt customers to come in at different times, avoiding queues and allowing a better workshop planning. DATA SECURITY: A PREREQUISITE Interesting possibilities indeed, but it is plain to see that data security is crucial. And exactly that is the biggest challenge for OEMs and developers. The global market
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for automotive cyber security is likely to grow exponentially – already today, more than 112 million vehicles are connected. The generated data are a goldmine, not only for carmakers, fleet management companies and a plethora of still to spawn service providers, but also for malignant individuals and organisations. Without data security, a car can easily become a terrorist weapon. A whole-car approach is needed. In other words, security must not be seen as an added feature, but a prerequisite, as enlighteningly explained by Malte Pollmann in his article “Making Security a Priority in Connected Cars” (18 July 2017, online, Data Center Knowledge, Industry Perspectives). The CEO of Utimaco, the Aachen-based supplier of cybersecurity solutions, calls for automakers and OEMs to implement practices that quickly resolve detected safety gaps during the process of production and systems development.
CAR FIT PULS: STEERING-WHEEL DIAGNOSIS It might sound odd, but this start up developed a sensor that you stick to the steering wheel and that diagnoses your car on the basis of vibrations. No OBD dongle, no data read-out, just a simple device that interprets high-frequency micro-shivering. The registered patterns are analysed in the cloud and compared to those of other drivers. Automotive NVH science meets artificial intelligence to create the most comprehensive library of vehicle vibration data. The added value of this vibration-analysing platform is that it can detect mechanical problems that are beyond the scope of dongles, such as issues with the brakes, tyres, shock absorbers, steering system, and so on.
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ADVERTORIAL
CONCEDED EDITORIAL SPACE
Taking grip and vehicle safety to the top Jeep has always been a synonym for off-road capability, durability, value-for-money and adventure-inspiring design. The new Compass adds refinement, userfriendliness and, above all, class-leading active safety features, rewarded by EuroNCAP with a 5-star rating.
In an ever more densely populated SUV segment, a legend like Jeep stands its ground by sticking to its core values, but at the same time embracing the latest in comfort, efficiency, connectivity and safety technologies. It is exactly this combination that makes the new Compass a great addition to your company’s fleet: it speaks to the heart of your drivers, whilst ticking all the fleet manager’s boxes in terms of Total Cost of Ownership, fuel efficiency, convenience and accident prevention. A COMPLETE POWERTRAIN OFFERING The beating heart of the new Jeep Compass is its highly efficient powertrain. Two petrol engines and two diesels can be paired to a six-speed manual or a nine-speed automatic transmission. The award-winning 1.4 MultiAir turbocharged four-cylinder petrol releases 140 feisty but frugal horses onto
the front wheels. Its more powerful variant distributes 170 hp and 250 Nm over all-four wheels. The diesel range comprises the efficient 120 hp 1.6 MultiJet II, an engine with a proven track record and CO2 emissions starting at 117 g/km (NEDC), and the equally acclaimed 2.0 MultiJet II. The latter is always mated to Jeep’s sophisticated 4x4 system, but you can choose between the 140 hp model, either manual or automatic, and the range-topping 170 hp model, which comes with the reactive and efficiency-enhancing automatic ninespeed transmission as standard. BEST-IN-CLASS OFF-ROAD CAPABILITY Jeep’s unrivalled know how and field expertise have crystallized into an advanced, intelligent full-time 4x4 system called Jeep Active Drive, which can send 100 percent of available torque to any one wheel when needed. It also includes the Jeep SelecTerrain feature, providing four modes: Auto, Snow, Sand and Mud. This ensures the best four-wheel-drive performance on any surface - on- or off-road - and in any weather condition. Those who want to take their Jeep to inhospitable places or pull heavy trailers can opt for the unstoppable Trailhawk version, which offers almost 2.5 cm more ride height. It is based on the 170 hp Multijet II model and features the advanced Jeep Active Drive Low system with a 20:1 crawl ratio. On top of the four standard driving modes of the Active Drive system, it has a Rock mode, plus SelecSpeed Control and Hill-Descent Control.
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A CONNECTED AND REFINED INTERIOR The new Jeep Compass interior design features refined and yet robust materials that together with the instruments, commands and high-resolution displays create a sense of sophistication, control and wellbeing. The centre console neatly integrates the functional features of the Jeep Compass, including gearshift selection, Selec-Terrain controls, electronic parking brake, engine stopstart controls, climate and volume control knobs, and easily-accessible media charging and connectivity ports. The main human-machine interface of the new Jeep Compass takes the shape of a user-friendly touch screen, which commands one of three new Uconnect systems uniting communication, infotainment and (optional) navigation features. Uconnect 7.0 or 8.4 NAV systems boast a high definition screen with capacitive touch and include new Apple CarPlay and Android Auto (standard on Limited and Trailhawk) functions for hands-free phone, navigation (only on the 8.4NAV system) and voice texting.
to great lengths in terms of driver and vehicle protection. In the event of an accident, a safety cage made for more than 65 percent of high-strength steel plus 6 airbags combined with advanced seatbelts maximize crash performance. But in 2017, that is not enough to receive 5 stars from independent safety assessment organisation EuroNCAP. A maximum
rating can only be obtained when a vehicle comes with accident-avoiding technology (ADAS) as standard. In the EU, every Jeep Compass is equipped with Forward Collision Warning-Plus and Lane Sense Departure Warning-Plus, which combine radar and camera technology to recognise and prevent collisions. And these are just a few of the 70 available advanced safety and security features.
MORE INFO https://www.fcacountryfinder.com/jeep.html
5 EURONCAP STARS DON’T LIE Employee safety is at the heart of a company’s concerns. By choosing the Jeep Compass, you can rest assured: we went
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he explosion of the 7TTax element due to WLTP
Erwin Boumans
Over the last years car taxation is getting more and more on the radar of fleet and mobility managers. Recent developments could make that taxes will become an even a more important element of the TCO of your fleet.
The total cost of ownership (TCO) concept was defined by Lisa Ellram in 1995 as “a purchasing tool and philosophy, which is aimed at understanding the true cost of buying a particular good or service from a particular supplier�. This concept allows a.o. fleet managers to assess the direct and indirect costs linked to his/her fleet and is thus extremely important in order to get a realistic view on the actual cost of the fleet throughout the vehicles life cycle (from acquisition to write off). Traditionally taxes have always formed 4% to 5% of the TCO of a passenger car, but in the last couple of years fleet managers have become more interested in this element, considering the ever changing tax environment and the need to keep costs under control. TAXATION ELEMENTS FORMING PART OF THE TCO When determining the TCO different taxes need to be considered. Of course (one-off) registration taxes and (periodic) circulation or road taxes are relevant, but more important are probably the possible non-deductible input VAT and the limitation on deductibility for income tax purposes. The fact that some or all of these taxation elements are increasingly being linked to CO2 in recent years (over 20 jurisdictions in Europe at this moment of which 19 EU Member States), has led to a clear switch in behavior by fleet managers.
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Certain tax benefits that have been introduced to support the sale of zero or low emission vehicles, however, could have a positive impact on the TCO (as these benefits also need to be taken into account when determining the TCO). A fleet manager that did not yet take this into account will most likely be confronted with a huge increase of the TCO of his/her fleet, as gas-guzzling machines became even more expensive, due to heavier taxation. However, this impact may become even bigger. WHAT ABOUT WLTP? From 1 September 2017 new car types sold in the EU will be submitted to the Worldwide Harmonised Light Vehicle Test Procedure (WLTP) before getting their Certificate of Conformity (before they were tested under the New European Drive Cycle standard or NEDC). This new and more robust test cycle for cars will lead to more realistic (and thus higher) CO2 and fuel consumption values. On 1 September 2018 these new WLTP values will become mandatory for all new car sales. It is clear that these new WLTP standards will allow fleet managers to better budget the fuel consumption of his/her fleet. However, you do not have to be a rocket scientist to understand that new, higher CO2 values can have a considerable impact on the taxes due on a car.
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With the introduction of WLTP and the continuing diesel debate, fleet managers need to pay attention to the tax element in their fleet's TCO - otherwise that TCO will see an important increase in the future.
It is, therefore, not surprising that different market players (e.g. ACEA) are calling governments to address the issue of the “negative tax impact” of this new emission standard, whereby the main argument is that the performance of the cars itself is not changing and thus taxation should also remain unchanged. If tax legislation would be adapted (which will most likely not happen before 1 September 2018), it remains to be seen whether governments will be tempted to at least introduce a (partial) tax increase (possibly using the popular mantra “it is the fault of the EU”). Meanwhile, we may see some pragmatic solutions popping up via the use of e.g. comparison tables, but this may only lead to more confusion with fleet owners and private consumers (and thus may effect overall vehicle sales). MID TO LONG TERM IMPACT: PETROL VS. DIESEL AND WHAT ABOUT FULL EV’S? Next to WLTP, also the continuing debate on the future of diesel cars seems to lead to changes in taxation (e.g. in France input VAT deduction on petrol cars will gradually be brought up to the level as it is currently in place for diesel cars – i.e. 80% - in Belgium it is to be expected that by 2020 the tax deductibility will be linked to the actual emission level and no longer to a range) and/or other measures (e.g. Low Emission Zones are being introduced at an enormous pace). Especially, that last element may force fleet managers to also put electric vehicles in the mix, as drivers will not be amused if they can no longer return to their homes or are being financially punished for this when they live in certain cities. And if the majority of your FLEET EUROPE #92
fleet needs to move within an urban area, such measures may also have an impact on the TCO (as these extra charges should normally also need to be included). In addition, some people say that today full electric vehicles could already be cheaper from a TCO perspective (see e.g. Hagman, Ritzén, Sier & Susilo, “Total Cost of Ownership and its potential implications for battery electric vehicle diffusion” in Research in Transportation Business & Management 18 (2016)) and measures increasing the cost of running a diesel or petrol car would thus make a FEV become even more attractive. So like the other main hurdles to get FEV sales off the ground (lack of (public) refueling infrastructure and range anxiety) are gradually being addressed and prices of FEV’s will start to drop once the technology becomes more common, an in-depth analysis of the TCO of the vehicles in your fleet, and in particular
its tax element, may actually lead to a much quicker adaptation of FEV’s than we are currently experiencing. CONCLUSION If fleet managers do not continue to pay careful attention to the tax elements in their TCO calculations, the overall cost of their fleets will most likely increase in the coming years, as the governments’ responses on the impact of WLTP, combined with the continued negative (fiscal) attention for diesel cars, will most likely lead to a higher overall tax cost. Using a well-balanced TCO model, also including all direct and indirect tax costs (and, if available, benefits!) can help you though to respond to the further greenification of car taxation.
THE BELGIAN EXAMPLE Assuming an increase of the CO2 g/km amount of 20 (which is not so farfetched), in Belgium this would imply an increase of +/- 21% in (annual) road taxes and +/- 5% in (one-off) registration taxes for an Audi A4 Avant 2.0 TDi 100 kw (NEDC – 103 CO2 g/km), while for the same car with a 3.0 TDi 160kw S tronic engine (NEDC – 114 CO2 g/km) this increase would amount to almost 28% on road taxes (registration taxes would again be +5%). But the impact will even be bigger when it comes down to the deductibility for corporate income taxes. Today a car with 103 CO2 g/km is deductible for 90%, while only 75% of the costs would be deductible if the same car would all of sudden be considered to have an emission of 123 CO2 g/km. In case of an increase from 114 CO2 g/km to 134 CO2 g/km the deductibility would drop from 80% to also 75%.
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TCM is gateway to untapped market Frank Jacobs @FrankJacobs
The rise of alternative mobility is forcing a rethink on how companies manage their mobility. Using Total Cost of Ownership (TCO) is on the way out. Here's why OEMs are already thinking TCM – Total Cost of Mobility.
TCO factors in purchasing and running costs, and the residual value of vehicles. But as more and more companies integrate mobility options like car-sharing and carpooling, and multimodal solutions like e-bicycles and public transport subscriptions, TCM becomes the more relevant yardstick to measure the cost of corporate mobility. MOBILITY COMPANY Even OEMs are getting that message. Volkswagen for example is transforming the way it interacts with the market, becoming a 'mobility company' rather than just a car manufacturer: “We're aiming to be one of the first to bring TCM to our customers”, says Jochen Schmitz, Head of International Fleets at Volkswagen Financial Services. Hence Volkswagen Group's newest addition to its family of companies. MOIA, launched last December, aims to be the world's leading mobility service provider by 2025. For now, it focuses on in-house development of ride-hailing, car-pooling and other ondemand services.
Lyft and Uber are two famous ride-hailing services in which car manufacturers want to invest as they need new business opportunities in the new mobility environment.
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NO COINDICENCE Another example from another manufacturer: Car2go, Daimler's bid to become a leading car-sharing player; and GM with mobility platform Maven and ride-hailing service Lyft. Other OEMs have similar focus, and that is no coincidence: as car ownership declines, they will be selling more cars directly to providers of shared services – so why not try to set up those services themselves? Car manufacturers are paving their way towards the new mobility equation with the development of new business models – either on their own of via partnerships. OEMs aim to incorporate not
just cars and ownership, but also 'usership' and multimodal mobility. In this new ecosystem, the relationship between fleet customers and fleet suppliers will no longer be measured in TCO, but TCM. To return to the VWFS example: next year, it will roll out a new corporate solution that offers fully integrated mobility management that includes travel management, up to and including booking rental cars, flights and hotels. COST-EFFICIENT There's a reason why OEMs are so keen to take the lead in the switch from TCO to TCM: Total Cost of Mobility is a gateway into a huge, as yet untapped market. Yes, the rise of shared mobility will reduce the impact and prestige of automotive brands. A recent PwC study forecasts that the increase in car-sharing could lead to a reduction in the overall fleet in Europe by 80 million units - from 280 million today to 200 million by 2030. A recent McKinsey study says that no less than 70% of the ridesharing market in the U.S. has not even been accessed. This is why manufacturers are diversifying their business model into a multimodal and even multibrand model, which will obviously have huge implications for the customer side of the automotive business, and more so for corporates than the private market. TCM is a more complex way of dealing with mobility than TCO. But from a customer perspective, its high degree of flexibility holds the promise of being more cost-efficient than the older model.
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9FtheleetendManager, is near Yves Helven
Dear Fleet Managers. We’re approaching the end of 2017 and, let’s admit, it hasn’t been a particularly exciting year in our business. OEM’s have released new models, leasing companies have become bigger, talks about mobility and autonomous cars are all over the place.
But wait. There is something going on in the background and here’s how we will call it : dark processing. It’s the increasing use of “behind the screen” technology and automation in the fleet industry, moving from our desktop computer to mobile phone and ending up in our cars. Let’s take a minute and consider how this will impact our jobs and how we need to prepare ourselves in 2018 to make sure we don’t lose them. First, we need a wake-up call. The world is larger than Europe. Many of the innovations that are being pushed to the markets, such as autonomous driving, connected vehicles, EV’s, … are not driven purely by Old Continent needs, but by the continuous trend for automation & robotics as well as by the increasing urbanisation in Asia and Latin America. These innovations will impact fleet management inevitably, also outside of the regions mentioned before. FREE OF CHARGE Let’s talk about connectivity, the ability of systems to communicate between each other and with cars or drivers. In the old world, the fleet manager is in charge of making sure that her or his clients receive the service they deserve. In that sense, the fleet manager plays the role of the middleman between question and answer, demand and supply, often relying on years of valuable experience. And here’s the thing: similarly to what Expedia has done for travel, fleet technology companies are preparing themselves to propose solutions that cut out the middleman and connect different solutions on one single platform, applying a set of rules, directly with the driver. The employee uses her or his mobile phone to organise journeys, update data, enter
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private mileage... These data are processed and dispatched to suppliers, databases, HR tools, without any human intervention. Fleet Management as such will eventually become free of charge, entirely automated by tech platforms and executed by the supply chain. The tech platforms will make money, not from the user, but from the supply chain, advertising, media, entertainment. One of the results will be that fleet procurement functions will shift from pricing negotiations with OEM’s and Leasing Companies to the selection of the supply chain that feeds the correct mobility solutions to the employees. Volumes will become less important than flexibility of solutions; as it’s relatively easy to create a business proposition that links different transport suppliers, we’ll see, probably for a couple of years, a multitude of suppliers and interesting solutions popping up. The future Procurement functions will be asked to select the correct ones. Gradually, these solutions will consolidate in the same way leasing suppliers have been consolidating over the last years, resulting in the renaissance of the traditional procurement tasks: negotiate deals based on coverage and volume. Human Resources teams are already thinking along with other functions in their companies to understand how employee flexibility can improve profitability. Being able to offer a modern, technology based transport solution to the employee will have a positive impact, not only to the Company’s efficiency, but also to recruitment and retention. Especially the generation of FLEET EUROPE #93
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With connectivity, Fleet Management is entirely automated by tech platforms and executed by the supply chain and the fleet procurement functions shift from pricing negotiations to the selection of the supply chain that feeds the correct mobility solutions to the employees.
young people who are at the start of their careers will be charmed by the up-todate image of their (future) employer. ANTICIPATING THE DOOM SCENARIO Where does that leave us, the Fleet Managers? Is this doom scenario going to make our jobs redundant? Or shouldn’t we be worried at all, because it’s still way ahead of us? The first step is to understand what’s happening inside your own company. Not only the balance sheet and the slide deck at the year-end reception, but especially the challenges that the people on the ground are facing. Talk to drivers who spend a lot of time on the road. Focus on the colleagues who have a direct impact on the results of the Company, such as, but not limited to the Sales teams. Instinctively, they will tell you what’s going on, how the world around them is changing and – here’s the trick - how their customers are changing. At the end of the day, it’s up to your Company to be able to win and keep customers. Now, try to find out how you can make an impact. The second step is to listen to what’s happening on the market. Talk to your leasing companies and preferred OEM’s. Park your hesitations for a second and FLEET EUROPE #93
hear them out : your suppliers have spent lots of time and money researching how they can help you transit from the current model to the future model and will be more than willing to share their findings with you. The main advantage here is that leasing companies and OEM’s are able to mitigate the risks of transition for you, by offering solutions that will help you make the first steps towards the new world. EVERY SOLUTION HAS ITS VALUE Time has come now to socialize a roadmap in which you demonstrate to your stakeholders how Fleet Management can help your Company to grow, become leaner and ready to serve the customer of tomorrow. Focus on easy to implement phases with little impact on the individual employee and propose baby steps first to reduce the risk of failure. You’ll need some successes to ensure buy-in from your stakeholders. Finally, keep an open mind. A lot of the solutions that will be available in the future will sound out of place, not useful or not suitable. However, even for the solutions that you won’t be adopting, you need to understand the technology and the business model. In every solution, there’s a useful learning for you and your company.
You’ll understand quickly that your main task is not to promote a mobility revolution, but to connect, inside your company, different functions and figure out how you, representing Fleet Management, can support with innovation and technology. In other words: connectivity is not only the technology of the future, but also your job in the future!
TIPS AND TRICKS FOR 2018 • Keep an open mind for new technologies • Understand how your Company and its customers are evolving • Reinvent yourself as a key contributor to your Company’s efficiency • Be informed and stay informed • Prepare your fleet for the future
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Trends in Fleet Management innovation Frank Jacobs @FrankJacobs
Fleet Management is not one job, but dozens of jobs bundled up under one label. Monitoring progress in Fleet Management therefore means keeping your eye on many balls. Here's a sample.
> Tire manufacturers Goodyear are trial-
ling an intelligent tire management tool in partnership with Tesloop, a company using Teslas to offer city-to-city rideshares in California. The tool is built on wireless sensors in the tires itself. The sensors measure tire temperature and pressure, and predict when tires need service or replacement. The aim is to minimise fleet downtime – for example by matching up maintenance and repair with the time the Tesla vehicles need to recharge.
> Mobility-as-a-Service (MaaS) might be
translated to corporate requirements as 'fleet on demand', and that is what Mobilleo offers. Enter your travel requirements into the app, and it calculates the cost of the various modes of transport that are available, from company car to public transport and a mix of these and other components. The analytics powering the tool allow fleet managers to assess and analyse total travel costs.
> 'Gamification'
©BP
is the use of game-like competition in a non-gaming context to drive user engagement. The global gamification market is forecast to grow by
more than 48% by 2019 – in part thanks to its increased use in Fleet Management, to boost productivity and improve driver behaviour. One example is Driver Challenge, a driver scorecard designed by d2go for the Geotab Marketplace to motivate fleet drivers. The tool scores driving behaviour via a set of KPIs, both motivating drivers towards positive goals and informing fleet managers of useful trends.
> BP and TomTom Telematics have part-
nered to produce a connected-car product that links fuel transaction info from BP fuel cards with driver behaviour data from the TomTom Telematics Service Platform. By bringing together driver, fuel and vehicle data, the tool is designed to help businesses help save time and money. An app providers drivers with feedback on their performance, and info on fuel station locations.
As these dispatches from the fast-moving Fleet Management front demonstrate, the fields in which advances are being made may be very divergent, but there are two clearly discernible trends that power progress. One: digital tools and platforms are the space in which steps forward are being made. And two: collaboration is the name of the game, with suppliers and/or specialist tech companies coming together to pool their knowledge and resources. On the receiving end of this disruptive innovation, fleet managers need to be equally agile and attentive to changes. To choose and use the right tools from this vast and constantly changing toolbox, they can rely on the opinion and expertise of only one expert – themselves.
To look for progress in Fleet Management, find digital, collaborative projects
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ADVERTORIAL
CONCEDED EDITORIAL SPACE
Implementing your strategy, delivering your savings TraXall International is a multi-country Business Process Outsourcing (BPO) company, specialising in fleet management, administration, consultancy and multi-supplier procurement. TraXall manages in excess of €4bn of customer assets and has a strong reputation for service delivery in each of its growing country markets.
“TraXall delivers great savings for our clients, but our skill is also in translating a global strategy into effective local market delivery, including the management of the local supply chain – legacy or new. We do this through great local people, systems tuned for each market and a flexible approach to our clients’ needs, at every level.” “This ‘Local Management, Global View’ approach results in faster acceptance and understanding, harmonised with global strategy. We like engaged drivers, happy stakeholders and – in addition to great results – that’s precisely what TraXall stands for. That reputation means everything to us… and to our growing client base.”
• TraXall focuses on service excellence. Ross Jackson, CEO of TraXall International, says that it is TraXall’s local market focus that sets his organisation apart from others in the market. “While it generally works well for core strategy, a ‘top down, onesize fits all’ service delivery approach can often derail an otherwise successful strategy.”
• Where there are savings to be achieved, it delivers them, working with clients at global and local levels to ensure efficiencies are realised. • TraXall implements clients’ strategies and mobilises its teams to secure clients’ savings. • Clients’ funding methods (or suppliers) may change over time. TraXall manages this transition, so that its clients’ people feel no turbulence from change, while ensuring best value across any funding/ procurement method.
Ross Jackson, CEO of TraXall International
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• TraXall advises on how local/national government policy impact vehicle choice and selection.
Thibaud Dedier, COO of TraXall International
• Supply chain information and fleet data is consolidated and presented consistently, locally and globally, allowing legacy fleet to be reviewed alongside new – irrespective of supplier. • Fleet administration is effectively managed through people on the ground in each market, using systems built for each market with market-specific driver portals.
Thibaud Dedier, Chief Operating Officer, TraXall International, sums it up perfectly: “We help you to achieve your savings – it’s your strategy and we’re there to help implement it for you and maximise ‘buy-in’. TraXall’s business model is ‘process-driven’ and not ‘asset-driven’, so you can be certain that TraXall will always be protecting your interests”.
TraXall International – Local Management, Global View.
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NEW PEUGEOT 308 8-SPEED AUTO TRANSMISSION WHAT IF YOU REDUCED THE FUEL CONSUMPTION IN YOUR BUSINESS?
NEW 8-SPEED AUTOMATIC TRANSMISSION NEW DRIVING ASSISTANCE SYSTEMS 2020 GENERATION – NEW ENGINES
Combined consumption (l/100 km): from 3.1 to 6. CO2 emissions (g/km): from 82 to 139.
INNOVATION
Start-ups driving smart mobility innovation Alison Campbell
Smart mobility start-ups are driving innovation in the pursuit of better and more environmentally-friendly transport systems. Here we focus on three companies that are changing the face of powertrains and making eBike connectivity a viable fleet option. ADDVOLT AddVolt is a technology company based in Portugal that produces what it describes as a “moving electrical network”. WeTruck is aimed at controlled temperature transport and logistics companies and produces energy from Photovoltaic panels placed on top of vehicles. It also recovers energy from braking and deceleration, which it then uses to power the cooling system.
It all started with founder Bruno Azevedos’s master thesis on regenerative braking systems. The company has been a rising star in Portugal since 2014. The founders have been participating in a Carnegie Mellon University program in Pittsburgh, USA. WeTruck can be retrofit into any vehicles, at any stage in its life and basically saves fuel, reduces emissions and maintenance costs.
RIMAC AUTOMOBILI Based in Croatia, Rimac has been designing electric super cars since its inception in 2009. Determined to shake off the dowdy perception and push the limits of technology in electric powertrains, the Concept-One was launched at the Geneva Motorshow in 2016 and has been making news ever since – not always for the right reason. Calamity-magnet and “The Grand Tour” star Richard Hammond recently crashed the Concept-One at the Hemberg Hill Climb in Switzerland.
COMODULE Headquartered in Germany and with development facilities in Estonia and Taiwan, Comodule.com is positioning itself as the global leader in bicycle and scooter connectivity. The founders came together in Tallinn University of Technology where they built fully electric racing cars. What sets this company apart is that until recently ‘connected bike’ meant communicating with the user’s Smartphone. FLEET EUROPE #93
On a more positive note, it received its first USA test drive in August 2017. An 82-kWh battery powers four electric motors, one in each wheel, and the car has a fully charged range of 205 miles. It carries a price tag of around E1m ($1.2m) and has its own, bespoke infotainment system (the company couldn’t afford the $25m minimum order from suppliers so built its own).
Comodule’s advanced system enables eBikes to be tracked over the GSM Network. Earlier this year, it launched an advanced product combining eBike connectivity with insu-rance to deliver 100% anti-theft warranty. This was done in partnership with Swiss insurance provider Helvetia.
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INNOVATION
An electrifying game of chess Dieter Quartier @DieterQuartier
©Dieter Quartier
At this year’s IAA, production-ready electric vehicles were still largely outnumbered by concept cars in an embryonic stage. Remarkably, three Chinese OEMs moved a daring pawn forward on the immense Frankfurt chessboard.
BMW i-VisionDynamics.
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Those who came to the Frankfurt Motor Show with the expectation to discover a multitude of production-ready electric cars, were in for a disappointment. Tantalising as the home players' concept cars appeared, they were far from mature. The carmakers that had introduced a brand new EV which you can actually order today, decided not to come to the IAA this year. Tesla – probably wisely – chose not to cross the Atlantic and show its brandnew 35,000-euro D-segment model to the European public. To really make an impression, you need a tremendous and for a small OEM unjustifiably high booth budget. Besides, the eagerest of customers have ordered their Model 3 a year ago online – indeed, digital is the way Tesla wants to work.
Nissan revealed the long-awaited successor to the first-generation Leaf a week before the IAA. The new model has unanimously been described as an aesthetic relief (or should we say re-Leaf) from the too eccentric-looking Mk I, while offering a convincing range of 380 km (NEDC). Moreover, the new Leaf introduces comfort and safety-enhancing ADAS for stress-free stop & go traffic. Which makes it even more regrettable that Nissan did not invest in a booth in Frankfurt. Then again, the same remark as above applies here, too. To compete with local EV rivals Opel, BMW, Mercedes and VW and get a sliver of attention at the IAA, you need more than just a few € 100k. THE GERMAN WAITING GAME Which brings us to the big boys of the motor show. The ‘slimmest’ of them all – the brand with the Blitz logo – brought the Ampera-e to the IAA, but that was not a premiere. The Chevrolet-built five-door hatchback made a tremendous impact last year at the Paris Motor Show, with its 500 km + range, but volume restrictions make the car still a very rare sight on European roads. BMW showed an upgraded version of its i3 electric city car on its stand, but the real revelation was the iVision Dynamics concept. If there is one rival it shoots its arrows at, it must be the Tesla Model 3, but unlike the Californian car, the 3 Series-sized Bavarian sports sedan with a projected range of 600 km won’t be seen in the brand’s showrooms before 2021. Allegedly closer to production is VW’s I.D. Crozz concept, heralding a compact SUV FLEET EUROPE #93
INNOVATION
THE CHINESE SURPRISE Three names will probably gain notoriety over the next few years: Wey, Borgward and Chery. They all made a striking entry in Frankfurt, with decent-sized, nicely decorated booths. More importantly, they showcased cars that look ready for a European invasion. Common denominators are a becoming SUV body, a luxury finish, loads of equipment and a full range of electrified powertrains. Indeed, exactly what the European customer wants.
Mercedes EQA Concept.
persuaded Chinese investors (Foton) in 2008 to revive the company. The BX7 – a rather flagrant Audi Q5 lookalike – rolls off the assembly line in Beijing since July 2016 and is the first vehicle to come to Europe. Sales should kick off in its native Germany still this year. Starting in 2019, the electric version BXi7 will allegedly be assembled in Bremen. Talking about an intriguing game of chess.
Wey, the premium subsidiary of Great Wall Motor Company (GWM), let the IAA visitors discover their BMW X3-sized VV7, which is already on sale in China and of which the P8 is the plug-in hybrid concept car. Heralding an all-electric Tesla Model X imitator is the XEV concept, which might reach maturity relatively fast. GWM is indeed investing big money in battery-electric vehicles, which are a must on its home market.
Much closer to a European market introduction, finally, is Borgward. This originally German brand ceased operations in 1961, but the grandson of the founder FLEET EUROPE #93
Borgward BXi7.
©Dieter Quartier
The same goes for Chery, which presented its pre-production Exeed TX. Its powertrains range from mild hybrid (48V) to full-electric. A spokesman said the brand is currently looking to set up a European HQ and R&D centre, probably in Germany, and investigating the possibilities in terms of distribution. Chery hopes to sell its first vehicles in Europe in 2019, which gives them two years to get their model – or even models – type-approved.
©Dieter Quartier
The question everyone asks, is whether Mercedes will beat VW to become the first mass-production brand to get a compact, highly automated and electric hatchback to market. The EQA concept car in Frankfurt looked far from assembly-ready, but in an automotive world evolving as dramatically as it is today, books are better not judged by their cover.
©Dieter Quartier
with advanced autonomous driving skills that will hit the road by 2020. By then, the Golf-sized hatchback model carrying the same I.D. badge will also be available, with the incredibly eye-catching and crowd-pleasing I.D. Buzz following two years later.
Chery Exeed TX.
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ADVERTORIAL
CONCEDED EDITORIAL SPACE
VWFS streamlines your international fleet Who do multinationals turn to when looking to streamline their international fleets? The answer is, increasingly, Volkswagen Financial Services. For VWFS is ideally placed to reduce both complexity and cost – even in the multibrand leasing business. Supporting international fleet managers is both a growing business and a core competence for VWFS, from tender and implementation management to international fleet reporting. LEAD THE MARKET Moreover, the company is determined to lead the market in integrated mobility management, with a growing focus on telematics and the integration of fleet and travel. No customer requirement is too extreme or too wide-ranging, because VWFS possesses a number of qualities and assets that firmly place it in pole position in the international fleet management business. 37 COUNTRIES First of all, with international fleet experts on hand in 37 countries, VWFS's
network of knowledge both runs deep and ranges wide. The combination of diversified expertise grounded in individual markets with internationally harmonised products and processes give VWFS an edge when it comes to mapping out a transnational fleet management concept for their clients. SPECIFIC REQUIREMENTS But the starting point for each such concept is the client, and their specific requirements. VWFS gets up close and personal with their clients – on individual sites, across national borders, and in the wider region. The end result, devised in concert with local experts, is a global mobility solution that is uniquely tailored to those specific, often very local requirements.
DRAMATIC REDUCTION VWFS provides international tender management and international fleet reporting, coordinating all processes and information from a central point – all of which dramatically reduces the time and money their clients spend on admin. For example: centrally managed tools interface with local CRM solutions, giving clients a consolidated view of their International and European fleet in one click. Additionally, VWFS's International Key Account and Implementation Managers are single points of contact who provide clear info and expert guidance on all relevant fleet matters. FUTURE-ORIENTED And just to be clear: VWFS is part of the Volkswagen Group, with all the advantages that this implies – an in-built focus on electric and integrated mobility, among other future-oriented technologies, for instance. But the leasing activities deployed are deci-dedly cross-brand, as per the wishes of the client. This way, VWFS combines the best of both OEM captives and multi-brand suppliers. By working with VWFS, companies can rest assured that their international fleet management services are both run with the efficiency and harmonisation of a centralised approach, and implemented locally, with on-the-spot, individual care in the language and with the knowledge.
MORE INFO www.vwfsag.com
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FLEET EUROPE #93
BUSINESS
The news shelf Steven Schoefs @StevenSchoefs
NEW COO FOR ALPHABET Leasing and business mobility company Alphabet International appointed a new Chief Operations Officer. From 1 September, Melanie Schillinger took charge of the IT, Business Process Management and Operations side of things for all of Alphabet's 19 markets throughout Europe, Australia and China. Melanie Schillinger started her career at BMW Bank in Munich in 1992. For the past two years, Melanie Schillinger has been successfully heading up Finance and Shared Services at BMW Welt, the exhibition centre next to BMW HQ in Munich.
NEW EXECUTIVE ROLES AT DAIMLER FINANCIAL SERVICES Daimler Financial Services has named Benedikt Schell as its Chief Experience Officer (CXO). The company, which is the financial subsidiary of Daimler AG, also appointed Jörg Lamparter as its Head of Mobility Services. Mr. Schell (pictured) is responsible for expanding Daimler Financial Services' digital business models, and for the company's global customer and digital strategy. Mr. Lamparter will be able to put his current experience as CEO of moovel Group to good use as Head of Mobility Services, where he is tasked with expanding the company's mobility services strategy. He oversees the brands car2go, moovel, and mytaxi, and manage the company’s partnerships with Blacklane and FlixBus.
HEAD SWAP AT VOLVO Volvo Cars has announced a leadership switch, with two top executives swapping the Americas and EMEA (Europe, Middle East and Africa) regions. Lex Kerssemakers becomes the head of Volvo Cars EMEA. His role in the Americas will be filled by Anders Gustafsson, who until now was head of Volvo Cars EMEA.
SHELL ACQUIRES EV CHARGING COMPANY Shell has signed an agreement to buy The New Motion, one of Europe’s largest electric vehicle charging providers. The New Motion, active since 2009, is an industry pioneer and operates more than 30,000 private electric charge points for homes and businesses in the Netherlands, Germany, France and the UK. It also operates a network of more than 50,000 public charge points across 25 European countries, with more than 100,000 registered charge cards.
FLEET EUROPE #93
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BUSINESS
LEASEPLAN LAUNCHES 'ANY CAR, ANYTIME, ANYWHERE' LeasePlan has launched a major ‘What’s Next’ campaign that highlights its commitment to become a leader in the transforming mobility landscape, especially when it comes to the fast-emerging 'car-as-a-service' trend. LeasePlan aims to offer its customers 'Any Car, Anywhere, Anytime'. As part of the campaign, LeasePlan is launching a number of innovative products and services. These include 'LeasePlan Click & Drive', aimed at the SME segment; and an end-to-end EV proposition for the corporate segment.
ARVAL OPENS SHOP IN NORWAY Arval is opening a subsidiary in Norway. From November, the lease company's products and services will be available on the Norwegian market, including Arval Active Link and Arval Outsourcing Solutions. Norway is the company's final step in achieving full presence in the Nordic countries. Arval is already present in the Danish and Finnish fleet market since 2012 and in Sweden via the GE fleet and lease acquisition in 2015. Arval's target is to manage 2,000 vehicles in Norway by 2020.
2017… Hans den Hollander
Simon Dransfield
Cisco Systems International B.V.
Jaguar Land Rover
WHO’S NEXT?
Tim Albertsen
Huib ter Braak
ALD Automotive
Arval
UP TO YOU! The hall of famers have selected this year’s candidate. But YOU can decide who will join them.
VOTE NOW 38
More information on forum.fleeteurope.com FLEET EUROPE #93
The world’s most trusted retread solution. We pioneered it. We lead it. We’re moving it forward. World-class quality and reliability from your local specialist.
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BUSINESS
ARI Fleet: open-ended for lower TCO Tim Harrup
ARI Fleet started in mainland Europe in Europe in 2013, having first made an acquisition in the UK in 2011. A fleet management company at origin, they are now starting to offer a new type of leasing for the European market. Managing Director Europe, Majk Strika, outlines the benefits of this approach for customers. Why did you come to Europe? We had identified a gap in the European market for a model that would offer the lowest TCO driven with full transparency and flexibility in fleet management for complex fleets. Historically, there was not a lower cost alternative model available supported by technology that would provide clients with a level of visibility required to make educated strategic decisions.
You are offering an open-ended leasing model, rather than the traditional closed end model… Majk Strika, Managing Director Europe at ARI Fleet
OPEN-ENDED ADVANTAGES IN BRIEF • Full flexibility in contract duration. • All remarketing proceeds to the client. • End-of-contract damage and penalties concept do not exist. • Full visibility on all cost parameters enable educated decisions.
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Today, when a business relies on the traditional full service lease model it misses an opportunity to take advantage of more innovative, cost effective fleet management and financing alternatives that are in the market. Now that’s risky. Instead, smart companies are demanding increased transparency and control, all of which can be provided if the proper technology and lease structure are in place. For many decades fleets were offered an off balance sheet solution. The new IFRS 16 lease regulations will require all leased equipment to move onto a company’s balance sheet in January 2019, making this thinking now null and void.
And this is open-ended, especially where RV’s are concerned? First, there’s the perception that the full service lease model reduces cash flow fluctuations and residual value risk, preventing your organization from realizing a financial loss when a vehicle’s value plummets at the end of its lease term. Full service lease companies are more than happy to take advantage of the fear around residual value as they reap the rewards of resale at the end of the lease term. In actuality, residual value risk is an artificial risk: it’s only a risk if you have no control over when you take your vehicles out of service. A flexible, open lease structure will provide companies with more options to reduce TCO and maximize returns.
What sort of fleets are you targeting? We are targeting companies with complex fleets that consist of cars, LCV’s, fork-lifts, special vehicles and trucks. Companies which always would have preferred the benefits of an outright purchase but were forced into a closed end leasing because of missing financing alternatives in the market. These fleets understand that a vehicle is an essential tool for the running of their business so they need full control and empowerment on all cost sensitive decisions. We are already offering this solution to clients in Germany and the UK today.
Does this mean that fleet services alone is no longer an option? Not at all, we are simply adding an alternative financing solution for clients to our existing ‘pay as you go’ fleet services portfolio. We believe this completes our lowest TCO solution.
FLEET EUROPE #93
The new Vivaro Tourer
BUSINESS LOUNGE Wherever your passengers want to go let them do it the premium way. •
Flexible seating configurations with up to 9 seats
•
Adjustable swivel seats allow face-to-face seating*
•
2 USB plugs and 220-V power socket for passengers
•
Real-time traffic routing with TomTom LIVE services*
Fuel consumption combined 6.1–5.8 l/100 km; CO2 emissions combined 159–152 g/km (in acc. with regulations R (EC) No. 715/2007 and R (EC) No. 692/2008). * The listed features are optional. Availability depends on local market offer.
BUSINESS
Mobility will change everything Steven Schoefs @StevenSchoefs
Vinzenz Pflanz, CSO of Sixt Leasing: “In fact we, Sixt, are an IT company with an added rental service, an added leasing service, an added fleet management service – this is our philosophy. The future of mobility and fleet management will be digitally driven”.
Vinzenz Pflanz admits that his company is entering relatively late in the digital fleet business. “But the great advantage of entering this domain late is that you benefit from the latest technology, which some of those who have been in it a long time may not. This is a family run business, and the family is willing to invest long term. Some others are going down the IPO route with a widely spread shareholding environment. They have to be driven by quarterly results – we don’t, we are long term.”
When will it be possible to get all of Sixt’s services in one place, on one app? “Well our competitive advantage is our local network – we are local in rental everywhere. When it comes to a future which sees people wanting all types of mobility solutions, you obviously start from the portfolio you already have. We offer an app solution, an internet solution where you can book mobility services, but just within the existing Sixt environment. This needs to be developed into a neutral platform, with a different revenue structure. We are working on this and we will kick off with new partners next year. One condition is an open and transparent platform – just because we have Sixt Leasing or Sixt Fleet Management does not mean we won’t list competitors.”
Can disrupters such as Uber become partners?
Vinzenz Pflanz, CSO Sixt Leasing: “In 20 years the insurance business will completely disappear.”
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“They have unlimited possibilities because they are more or less asset-free. Amazon too, is going over the heads of the dealers. So the disrupters are a challenge for the entire automotive and fleet industry. But yes Sixt can partner with them so that we can keep our own niche market and
they can keep theirs. But let’s not dream, they will not all survive, but those which do will be really dominant, substantial players. In 20 years, the insu-rance business will completely disappear, with selfdriving cars and connected safety features making today’s insurance companies outdated. But carmakers and financers, maintenance companies, these will still be here with inter-modal platforms when those disruptors become the norm.”
What is your view of the trend towards the new mobility? “Sixt Leasing is part of one of the largest mobility networks on the planet; the mother company is active in more than 115 markets, mainly in rental. Sixt has a taxi network in place, called “mydriver” and an airline crew transfer service. Sixt has a few leasing markets of its own, but mostly the leasing product is franchised. All our franchises are Sixt branded, so we are a truly international company, despite what is sometimes said. The only brake on extra mobility is that everyone still wants a dedicated company car. What is a strange is the underestimation of the car rental benefits in a corporate environment. With a rental car you can have a great vehicle with none of the problems of leasing – it is totally flexible and can be easily exchanged. As the young generation grabs mobility as they need it, we see a huge opportunity in the expansion of services around our rental expertise.”
FLEET EUROPE #93
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Kia Stonic - another giant leap forward STATE OF THE ART TECHNICAL FEATURES INCLUDING… • Torque Vectoring by Braking: intelligently brakes the inside wheels to reduce understeer while accelerating around corners • Cornering Brake Control: brakes the inside wheels under cornering to maintain course and enhance driving stability • Straight Line Stability: brakes individual wheels under heavy braking • Hill Start Assist: ideal for urban environments • 7.0-inch touchscreen • Apple CarPlay™ and Android Auto™ • Optional navigation and DAB digital radio • USB ports • Engine range: > 1.0-litre T-GDI petrol (120 hp, 100 hp to come) > 1.25-litre petrol (84hp) > 1.4 litre petrol (100 hp) > 1.6 litre diesel (110 hp) > 6-speed manual gearbox (7-speed auto to come)
FLEET EUROPE #93
Kia is continuing with its surge into the European car and fleet markets, with the new Kia Stonic. This eye-catching and confident compact crossover comes with Kia’s true European design flair, and is the most customisable Kia ever, inside and out. This is also a car right in tune with its times – as SUV’s of all sizes, and compact crossovers in particular, are the choice of more and more Europeans, fleet managers and fleet drivers. Adding the Stonic to the choice of company car drivers puts fleets in line with driver demand, as Michael Cole, COO of Kia Motors Europe, explains. “The Stonic’s segment (B-SUV) attracts buyers from across the spectrum, with 21% of all customers upsizing from a B-segment supermini, and another 15% downsizing from their C-segment family hatchbacks. Cars like the Stonic also appeal to those looking to replace their compact MPV’s. DRIVING PLEASURE The latest technology lightweight petrol and diesel engines are paired with manual transmissions, keeping emissions low and efficiency high. Ride and handling are tuned to maximise driving excitement, with steering and suspension engineered for European tastes. The high-strength steel platform and bodyshell ensure high levels of driving confidence and passenger comfort in all conditions. STRIKING LOOKS The design reflects ‘the simplicity of the straight line’. The result is one of the brand’s most striking cars to date, and it
remains immediately recognisable as a Kia thanks to a series of signature design elements. Kia’s hallmark ‘tiger-nose’ grille has been modernised with a new three-dimensional chrome surround, while wide C-pillars echo existing Kia designs.
The Kia Stonic design reflects ‘the simplicity of the straight line’
MORE INFO www.kia.com/eu
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SMART MOBILITY
Smart cities are the future Frank Jacobs @FrankJacobs
Speaking at New Mobility World, a part of IAA 2017 in Frankfurt midSeptember, Audi CEO Rupert Stadler neatly summarised the direction of all the various strands of smart mobility: “Smart cities are the future”.
Smart mobility is a catch-all term for half a dozen technologies, all racing forward at their own speed. The three main trends are connectivity, autonomous driving, electrification. They can be subdivided and recombined into countless products and services, some complimentary, others overlapping, quite a few offering conflicting solutions. How should corporate fleets – where much of this innovation will find its first practical application – make sense of this kaleidoscopic variety? HELICOPTER VISION Mr. Stadler's helicopter vision was an appealing one: “Cities are the focal point of our economies. London, for example, generates 50% of the UK's GDP. Our cities will be the future of mobility. But for this to happen, we must connect the dots. It is the only way to make the complexities of life work for us”. The Audi CEO pulled a few interesting statistics out of his hat. One concerning those complexities that could turn into opportunities: “About one-third of urban traffic consists of cars looking for parking space. That is a chance for smart traffic management to deliver huge gains in efficiency”. Smart cities require data sharing, which corporates may not necessarily be in favour of. But it can work: Mr. Stadler pointed to Mexico City, where anonymised data sharing has helped create reliable traffic forecasts, which in turn was essential in resolving certain traffic bottlenecks. “The Mexicans have a slogan. They say: Sharing data is as important as donating blood”.
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25TH HOUR A few more visions of the future: no less than 75% of the urban infrastructure of 2050 still needs to be constructed – presenting a major opportunity for planners, suppliers and builders. But AI (Artificial Intelligence) will be the biggest vector of change for mobility: “On average, each of us spends about an hour each day driving. Imagine getting that time back to relax, or to be productive. It will be the '25th hour' of the day, thanks to the fact that our cars will become our personal intelligent assistants”. Tucked away in a separate corner of the vast congress halls housing IAA 2017, New Mobility World (NMW) billed itself as the place where “disruptors and innovators meet with representatives from the worlds of politics and economics”. And indeed, Frau Merkel came to Frankfurt in person to open Europe's biggest motor show, underlining the strategic importance of innovation for Germany's economically crucial automotive industry. SMART AS HUMANS NMW doubled as a mini-conference, with a Forum and a smaller Speakers' Corner from which experts wowed audiences with visions of the mobility of the future. “Artificial Intelligence used in cars today is as smart as a mouse; in 20 years' time, it will be as smart as a human. And that means we can expect vast changes”, said McKinsey partner Matthias Käser, presenting his company's vision on the future of AI in automotive.
FLEET EUROPE #93
But for analysts, the golden future always seems to be 10 to 20 years away. Fleet decision makers have more practical concerns – they're looking for products and services that can benefit their fleet and their company today, not tomorrow. Fortunately, there was plenty of interesting stuff for them sprinkled across the six 'theme parks' at NMW. ELECTRIC MOBILITY The most prominent was Electric Mobility, with companies like ChargePoint, the “Apple of EV charging” and U.S. market leader, bringing its total solutions (from home charging over corporate charging to public and semi-public charging) to Europe. Nextdoor, Urban Mobility, featuring among others BlaBlaCar, who that same day announced the extension of BlaBlaLines, their pilot project for rideshare commuting in France. The Connectivity theme park hosted Saferide Technologies, a comprehensive package protecting connected cars against hacking – out of mischief or for terror, but perhaps also for industrial espionage. In the Mobility Solutions park, TrustedCars. com showcased its online used-car portal with money-back guarantee. In Automated Driving, BestMile proudly presented its cloud platform for operating and optimising autonomous vehicle fleets – the world's first such platform. CARBON FOOTPRINT But there was much more: smart parking solutions by RTB, a surprisingly wide range of products by Segway, the two-wheel electric personal transporter, a carbon-offsetting foundation shipping efficient wood stoves to Madagascar to save local forests and compensate for your carbon footprint, a clever navigation tool by What3Words to find any spot on Earth via a three-word code, a hydrogen-powered race car making the point that electricity is not the only powertrain with a bright future, and so on. Smart mobility, an umbrella word covering half a dozen industries racing in different directions, sometimes feels like the title of that Pirandello play: “Six Characters in Search of an Author”. Fortunately, a FLEET EUROPE #93
As cities are the focal point of our economies, smart cities will be the future of mobility
hands-on encounter with the industry in all its chaotic splendour can help bring a unified theory into focus. SAME ECOSYSTEM As indicated by Rupert Stadler, and as confirmed by Miller Crockart, VP at mobility analysts PTV Group, the city is the place where all these strands can and must come together: “Each company aims to optimise its own vehicle fleet, but it is up to local governments to optimise the mobility environment in which they all operate”, says Crockart. “Cities and corporates are all part of the same traffic ecosystem. They need to talk to each other to move things forward”.
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REMARKETING
Focus on diesel and data Frank Jacobs @FrankJacobs
Chronicle of a Death Foretold, by Gabriel Garcia Marquez, is not about diesel. But the title also applies to the fuel now widely believed to be in terminal decline. Data, on the way up, is the other big factor determining the future of Remarketing.
A recent survey by Autorola in the UK provides some perspective. Even if the fuel preference change proves irreversible, it is not immediately worrying from a remarketing point of view. The average price of the used petrol cars sold in the UK by Autorola has soared to £8,333 (about €9,130) in Q1 2017 – a fouryear high. The average diesel car cost £11,493 (about €12,600). At a difference of just over £3,000 (about €3,465) with the average used petrol car, that is the narrowest price gap ever. POPULAR FUEL TYPE But diesel is far from fatally wounded, the online vehicle remarketers point out. The residual values of diesel cars have also continued to go up – albeit less rapidly than for used petrol cars, hence that narrowing gap. And diesel continues to be the most popular fuel type among Autorola's buyers. Why? In a word: mileage. Over longer distances, diesel remains the cheaper choice even in the UK – where the price difference with petrol are is smaller than in most other European markets. This is borne out by the Autorola survey, which shows that average diesel mileage over the 39 months of the survey was 25,357 miles (40,808 km) compared with 20,348 miles (32,747 km) for petrol. TECTONIC PLATES As diesel continues to be singled out by legislators and local governments for its worse effects on the environment than petrol, its practical advantage in the long run (literally) will defend its share in both the new and used markets.
BCA is investing heavily in Big Data; the increased efficiency could have implications for the switch away from diesel.
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Newer diesel models, conforming to Euro 5 or Euro 6 emissions standards, are very clean when it comes to CO2, NOx and particulate emissions, meaning they should not face the same punitive measures as
older, Euro 3 and Euro 4-compliant diesel models. But fuel is just one of the shifting tectonic plates that remarketeers have to keep an eye on. Another one is Big Data. CHIEF DIGITAL OFFICER Take for instance vehicle auction house BCA, which has recently taken some decisive steps to ramp up its digital activities. In early September, the group created the new function of Chief Digital Officer, appointing Jonny Crowe, a veteran digital entrepreneur, to the role. The move was both an attempt to focus executive oversight of BCA's digital offering, which has grown strongly over the past few years; and a forward-looking move, aimed at driving efficiency, integration and business growth in IT, data science and digital products. Only a few days later, BCA announced a significant expansion of its Big Data capabilities by enhancing its Market Price tool, which is used to set reserve prices that ideally are as close to the actual auction price as possible. Ironically, the rising Big Data trend is likely to have an impact on the other trend mentioned above – the decline in diesel. As the predictive potential of digital technology is brought to bear on the evolution of diesel RVs, the timing and scale of the coming switch will gradually come into focus. But first and foremost, digital innovation can and will be deployed to entice and convince potential end customers. A recent survey of 1,000 car buyers across Europe demonstrated that 89% of those surveyed said they would be more likely to buy a car if they had been able to explore and customize it beforehand, using Virtual Reality (VR).
FLEET EUROPE #93
You think about the sun, the sky and the wind. We’ll take care of your fleet on the ground. With our full-service Operational Leasing, we offer truly tailor-made fleet solutions. At Alphabet, you get the perfect cost-efficient mix of cars and vans from any brand. Add in our hassle-free service options to boost driver satisfaction and keep your fleet on the road 24/7. Driving your business. www.alphabet.com/fleetmanagement
EXPERT
GDPR, the four letters that concern all of us Stijn Blanckaert based on expertise from and information delivered by Koen Claessens and Wim Verbelen of BDO.
In modern society, (personal) data, collected and used by various parties, often even without notification or consent, are what makes the world go round. And the more personal data are circulating, the more our privacy and protecting those data become a concern.
Europe decided to take measures, with the objective of returning the control of personal data to the individual, by imposing strict guidelines to every organization and company involved with personal data, through the new General Data Protection Regulation (GDPR), which will be applicable in all 28 EU member states from the 25th of May 2018 on. Companies who do not comply risk significant penalties, up to 20 million EUR and 4% of world-wide revenues. Clearly, Europe takes this seriously. The regulation defines ‘Personal Data’ as any information relating to a person such as names, ID-numbers, photo’s, email addresses, bank account numbers, social network messages, location data, medical data, IP addresses and so on… Lease companies are a perfect example of companies who collect and maintain personal information related to the employees of their customers (drivers), customer contacts, supplier contacts and their own employees. The collected data include financial and personal driver history data, and are therefore to be considered as critical data. Because of this, the GDPR-regulation will be important for all lease companies. THE DOUBLE ROLE OF LEASE COMPANIES The regulation makes a distinction between controllers and processors. Lease companies are both. On one hand, they process personal data of the drivers. In some cases these data can be sensitive, for example speeding tickets, vehicle accident history or DUI arrests of which the paperwork is received by the lease company, as owner of the vehicle.
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On the other hand, personal data of customer and supplier contacts are collected and maintained by lease companies. In addition, by rendering B2C and B2D remarketing services, administrative information related to the buyer will be recorded. Therefore, lease companies also act as controllers of personal data. Fleet-owners are increasingly asking their service providers questions about the secure processing of their employees’ data, as they are ultimately responsible with regard to their personnel. This need for ‘assurance’ will continue to increase due to GDPR and the penalties related to it. In order to comply and respond to their customers’ need, lease companies will have to demonstrate their reliability regarding data protection. That can be done through certification of GDPR compliance. In the future, such a certification can be expected to become a ‘license to play’. WHAT HAS TO BE DONE BY LEASE COMPANIES TO BE GDPR-COMPLIANT? First, they have to establish a data privacy policy, in which is defined how they ensure that personal data are:
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Fairly and lawfully processed by providing transparency towards drivers
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Processed for specific purposes only, as agreed by the drivers
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Adequate, relevant and not excessive.
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Not kept any longer than necessary.
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Processed in line with the driver’s rights (access, delete, object to distribution, opt FLEET EUROPE #93
EXPERT
GDPR is just the beginning; the future will only bring more new privacy regulations to comply with.
out of marketing, claim compensation for damages, the right to be forgotten).
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Accurate and up to date.
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Not transferred to other countries without adequate protection.
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Kept secure by implementing physical and logical security measures.
AFTER THAT FIRST STEP, GDPR COMPLIANCE REQUIRES COMPANIES TO:
1.
Maintain an inventory (‘data register’) of all personal data they collect, use and manage.
2. Perform
data protection impact assessments (DPIAs) for sensitive personal data, such as bank account details, social security numbers and information related to driver penalties and fines.
3. Implement
‘adequate’ security measures to protect this personal data.
4. Adapt
their contracts with processors of personal data, such as social secretariats and IT service providers, to define roles & responsibilities on personal data protection.
5. Adjust
communication towards data subjects using ‘privacy notices’ regarding the processing and use of their personal data. Fleet owners will have to act as an intermediate in
FLEET EUROPE #93
obtaining these privacy notices from their drivers.
6. Implement
a process for data breach registration and notification. From May 2018 on, they will be required to notify data breaches to the local data protection authority (‘DPA’ – Privacy Commission).
7. Appoint
a Data Protection Officer (DPO), responsible for ensuring GDPR compliance, if the organization has more than 250 employees or handles sensitive personal data, which is the case for leasing companies.
The road to comply with the new rules always starts with a GDPR readiness assessment to identify which steps still need to be taken. The implementation of the action plan that results from the GDRP assessment typically takes 6 to 9 months. Since May 2018, the strict deadline for GDPR-compliancy, is near, the time for action is now! Many car lease companies will have difficulties in finding the required focus, time and skills within their workforce and will decide to outsource the GDPR road-to-compliance and the role of Data Protection Officer, which is –luckilyallowed by the new regulation.
• Personal data, stored and processed in the context of fleet management. • Third parties involved in fleet management (cf lease companies), and whether they are ‘GDPR compliant or certified’, and contracts with these parties. • Communication towards the individuals, car policies (cf privacy notices) and so on... The GDPR-regulation is a perfect example of the way authorities have to adapt the rules of the game to the changes in society. The future will undoubtedly only bring more new regulations to comply with, whether we like it or not.
WHITE PAPER ON GDPR A white paper with a pragmatic approach for GDPR compliance can be found on the BDO website:
As a fleet-owner, you are likely to be contacted in the context of the GDPR program in your organisation, and requested to provide input on:
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ADVERTORIAL
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Lexus SUVs... Leading the Hybrid Charge For nearly two decades we have been pioneering hybrid technology – the combination of a petrol engine and self-charging electric motor working intelligently together to deliver responsive power with reduced fuel consumption. As our technology has evolved, so too has our model range and today we offer Lexus Hybrid Drive across nearly all of our line-up.
NX 300h
MORE INFO www.lexus.eu
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RX 350 F Sport
At Lexus, hybrid technology and SUVs have gone hand-in-hand since the debut of the premium industry's first hybrid SUV; the RX400h back in 2005. Today the RXh continues to receive rave reviews from motoring magazines across Europe. Its stunning exterior and interior design is undeniable, and its handling and performance figures, courtesy of its 306 bhp class-leading hybrid powertrain and Adaptive Variable Suspension, means it isn’t just winning fans on looks alone. The slightly smaller Lexus NXh shares the same DNA. The first thing anyone notices about the NXh is its bold, sleek design: notorious motor journalist Jeremy Clarkson described it as, “…one of those cars that compel you to turn ‘round for another look after you’ve locked them up for the night.” Inside we put the pleasure back into city driving, by applying a blend of advanced technologies and precise craftsmanship in features such as the Mark Levinson Surround Sound System, Shimamoku
polished steel accents, intelligent touchpad and wireless phone charging. Under the hood there’s the same hybrid technology capable of powering the Lexus NXh for over 31mpg combined. The latest generation of Lexus Hybrid Drive not only delivers incredible diesel-beating fuel-economy and pulse-racing performance, but it’s also self-charging, so you’re always ready to go. And there’s the added bonus of hybrid vehicles being exempt from congestion in a growing number of European cities, so you get to drive down fleet running costs whilst your company’s high-fliers can enjoy even the most routine urban trips. Luxury.... Performance.... And economy... Not a combination you’d expect from your average SUV, but then the NXh and RXh featuring Lexus Hybrid Drive are way above average.
FLEET EUROPE #93
ANALYSIS
Luxury Brand in the fleet market Michael Gergen and Richard Worrow
Luxury Brands starting to carve their own slice of the True Fleet Market. That is the result of the latest market analysis supported by data intelligence provider Dataforce.
For the first seven months of 2017 True Fleets from the big seven European Markets (Belgium, France, Germany, Italy, the Netherlands, Spain and UK) are certainly showing good form, with a combined growth rate of 4.4%. This is a very positive result without any doubt. But the general trend for the fleet business is even more impressive in a larger context. Comparing the volume of new passenger car registrations in 2016 versus 2009 True Fleets grew by 44% while the Total Market remained virtually unchanged (- 0.2%).
Of course the world of company cars is very much in the hands of brands like Volkswagen, Ford, Renault and the German premiums Audi, BMW and Mercedes. The Top-10 brands in 2016 account for more than 70% of the Market. But there are some competitors who were able to achieve some outstanding increases to fleet registrations over the 2009-2016 time period. The Luxury/Premium brands of Infiniti, Jaguar, Land Rover, Maserati and Porsche each more than doubled their registrations and combined scored a massive growth increase of + 255%.
TRUE FLEETS EU-7 VOLUME FOR INFINITI, LANDROVER, MASERATI & PORSCHE
100,000 87,000 80,000
+2 55 %
60,000
40,000
24,500 20,000
In general there are two sides of the coin: on one side there is a market share of certain brands within True Fleets. But on the other side it becomes interesting to take a closer look on the importance of this specific target group within the OEMs. For this analysis we have excluded all registrations from sales channels of a more tactical character. This means removing Short Term Rentals as well as self-registrations on dealerships or the manufacturers from the analysis. So our 100% of the market is the sum of “Private” and “True Fleets” only.
0 2009
FLEET EUROPE #93
2016
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ANALYSIS
COMPARISON PRIVATE AND TRUE FLEETS, JAN-JULY 2017
100%
The graph shows a lot of brands where you might be surprised to learn about the share of True Fleets and its importance. Tesla, Maserati and Infiniti sell more cars to fleets than to private customers, for Lexus and Jaguar it just few in the opposite direction. This keeps them pretty much on the same level as the well-established Premiums of Audi, BMW, Mercedes and Volvo (which are traditionally strong within fleet customers) but far above the average across all brands (35%). In terms of the most preferred models for these brands there is another surprise. In case you expected a Porsche 911, Jaguar XJ or Maserati Ghibli as their top-sellers you would be wrong. With F-Pace, NX, Levante and Macan it’s an SUV model securing the top-seller accolade keeping the emerging trend toward SUV ! highly visible. This is amazing for a type of car which wasn’t even allowed in car policies in many fleets a few years ago.
JANUARY-JULY 2017
90% 80% 70%
PRIVATE 65%
60% 50% 40% 30%
TRUE FLEETS 35%
20% 10%
ALL BRANDS
LAND ROVER
PORSCHE
JAGUAR
LEXUS
AUDI
MERCEDES
BMW
INFINITI
VOLVO
MASERATI
TESLA
0%
TRUE FLEETS EU-7, JAN-JULY 2017, N° 1 MODEL BY BRAND
Q30
F-Pace
RR Evoque
NX
Levante
The question remains whether this trend will move on and if the brands mentioned above will continue their rise. Our forecast shows a growing market share for this group in the upcoming years; especially in fleets. A new generation QX50 from Infiniti, an all-new E-Pace and I-Pace from Jaguar, the Range Rover Velar with its first year of full production, the third generation of Porsche Cayenne which will be introduced
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Macan
Model S
in a few weeks at Frankfurt Motorshow: all of this will certainly help these manufacturers to improve their performance even further over the next few years. In addition their recent success should mean they can rely on a much wider customer base and a much better penetration. Keeping their clients happy and satisfied will be key and open up additional growth potential for the future.
FLEET EUROPE #93
ANALYSIS
Bringing luxury to the ranks Tim Harrup
Luxury cars in fleets: previously the domain of the Chairman only, but now much more widely adopted. Two major fleet managers (one in Italy, one in Belgium) and two luxury brands, tell us what is happening. The desire, we learn from Italy, is to have as wide a range of cars as possible in the fleet, to give a maximum of choice to employees. The luxury brands are now offering cars at prices which enable them to compete with the traditional premium brands in the middle of the ranges, not just at the top of them as was the case before. This means that middle/top management has a wider choice – and as in all domains of business, attracting and retaining staff is an important issue. CLEAN A major company in Belgium finds that the inclusion of luxury models, for both senior and top management, and they fit into the car policy in the same way
as the traditional premium brands. They are also held under the same lease terms as other models – in the case of the company in question, 200,000 km or 60 months. Of interest is the fact that fitting into the car policy also means in terms of CO2 – and it is quite clear that with the new breed of clean engines, CO2 emissions can be at very low levels, no comparison with what was the norm in the past. It is also the case that luxury car manufacturers are able, if they so wish, to tailor the power output of their models to individual markets. At the ‘Italian Fleet Drive’ at Monza earlier this year, for example, Maserati pointed out that their ‘fleet-friendly’ Ghibli was available with
a power output tailored exactly to meet Italian tax regulations. COMPETITIVE Remaining with the technical and financial aspect, Jaguar Land Rover say that they are now achieving excellent residual values and low SMR costs, which translate in to particularly competitive lease rates and low TCO. These vehicles, JLR go on to say, enable individuals and businesses to differentiate themselves from the traditional choice of premium brands. And luxury brands such as JLR are now also investing in fleet experts who deliver fleet and product knowledge to clients. What is in fact happening is that the luxury brands – Jaguar Land Rover and Maserati are two cases in point – are attacking the upper middle sectors because they want a slice of the huge fleet sector in Europe. This may be seen in the same light as the move ‘downwards’ of some of the premium brands in terms of the models they have added to their ranges. The premium brands now offer B/C segment cars, something which would have been unthinkable just a few decades ago. To conclude, the appearance of luxury cars in fleets is not due to a change of heart by fleet managers, but to a carefully thought-out marketing ploy by the brands themselves. It is all part of the move which is seeing more brands wanting a share of more segments.
The entrance of luxury brands in fleets is a win-win: the brands can get a share in new market segments, fleet managers can offer a more attractive user-chooser policy.
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FLEET EUROPE #93
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ANALYSIS
Let me drive & entertain you Dieter Quartier @DieterQuartier
Congested roads, tedious motorway driving, the need for constant communication: there are reasons enough for executive vehicles to transform from driving machines into connected lounges that require less and less driver intervention, as demonstrated by these three Frankfurt premieres.
AUDI A8 1 A car that deserves kudos, not least because it unites three major trends in the automotive industry: electrification, automation and digitisation. Regarding the first aspect, it will be available as a plug-in hybrid. At least as interesting, is that all
1
of its conventionally powered models are equipped with a 48 Volt electrical system, making them mild hybrids. A belt alternator starter (BAS) and a small lithium ion battery allow kinetic energy recuperation whilst braking. This energy can be used to enable the car to coast with the engine off, saving up to 0.7 l/100 km of fuel and cutting emissions. As far as automation is concerned: Audi is the first manufacturer to use a laser scanner together with radar and other sensors to sense the surroundings. The carmaker claims the new A8 can drive completely ‘hands-off’ on divided motorways at speeds of up to 60 kph, making it the first car on the market to offer level 3 autonomy. It is now a matter of making the technology legal – a process that might take some time. Once the regulatory framework is in place, slow motorway traffic will equal productivity behind the wheel. But isn’t the person who needs to be productive sitting in the back anyway? With the mind-boggling amount of functions to be operated aboard this hightech flagship, Audi needed to rethink its human-machine interface. Gone are the dozens of buttons of yore, the dashboard of the new A8 is surprisingly ‘simple’ and easy on the eye, thanks to the flush central display. Indeed, most everything can now be operated by touching the glass of the centre screen. The navigation system learns from your habits, too, for an improved customer experience.
Audi A8
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FLEET EUROPE #93
ANALYSIS
BMW 6 SERIES GRAN TURISMO Bayerische Motoren Werke has long been associated with their ‘sheer driving pleasure’ motto, but it cannot swim against the current. If assisted driving, more comfort and connected services is what customers want in the D and E segment, than that is what the Bavarians will give them, with the risk of chasing away customers to competing brands that indeed emphasize their sportiness, like Jaguar, Alfa Romeo or even Maserati.
2
But these customers would unquestionably never have stepped into a BMW showroom to buy the rather pompous 5 Series GT anyway. The latter two letters stand for Gran Turismo, i.e. a performance and luxury vehicle capable of high-speed and long-distance driving. Justified appropriation of this epithet or not, the 5 has become a 6 in the meantime, to make clear that the car is as least as close to the 7 Series as it is to the 5 Series. It is supposed to be even more of a business lounge, then, which pampers its discerning occupants with space, silence and a soft ride, sitting in their electrically-adjustable, massaging, heated and ventilated seats. The heart of the cockpit is the iDrive system, which includes a touch controller on the centre console and a freestanding 10.25-inch touchscreen on top of the dashboard. Gesture control is also available. BMW Connected is the name of a digital personal mobility assistant, which uses calendar entries from your smartphone for route planning before you even step in. Once aboard, the Microsoft Exchange function allows you to manage your mail account. To make executive life even more comfortable, the adaptive cruise control with stop & go function now offers a smoother operation. The steering and lane control assistant further pave the way to autonomous driving. MASERATI GHIBLI Even the Italian performance limousine-builder par excellence readies itself for assisted and connected driving. As if that is not enough of a shock for the true Maseratisti: Fiat Chrysler Automobile CEO Sergio Marchionne announced in July that all new ‘Tridente’ models launched from 2019 onwards will have an electric motor. However, a
2
BMW 6 Gran Turismo
fully-electric model does not seem in the making. Sticking for now to its conventional combustion engines is the facelifted Ghibli. Actually, it only has one engine on offer that might just fit in the top category of your fleet policy: the 3-litre V6 diesel, which produces 275 hp and 600 Nm whilst posting a 158 g/km CO2 emission figure. That is still relatively high, and unfortunately the redesigned front bumper wasn’t able to improve this number, in spite of the coefficient of drag going down from 0.31 to 0.29. By way of comparison, the BMW 530d (265 hp, 620 Nm) manages a mind-blowingly low 118 g/km.
So, the Modenese have some catching up to do – also in the field of connectivity, incidentally. A first, not to be underestimated step has already been taken, though: the Ghibli is now equipped with an electric power steering system (EPS), which enables the introduction of advanced driver assistance systems (ADAS). The four-door saloon now offers an adaptive cruise control, lane keeping assist and traffic sign recognition. Another interesting addition is the Bosch-developed Integrated Vehicle Control (IVC), which prevents rather than corrects instability.
3
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FLEET EUROPE #93
Maserati Ghibli
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ANALYSIS
Look at my company Rolls Yves Helven
The luxury brands have discovered leasing already a while ago. They’ve been developing products for this lucrative market, knowing that it will help them to continue developing more exclusive high end models. In addition, the shorter life cycle of leasing vehicles is attractive for the brand’s second hand businesses. The trend has now even reached the hyper luxury segment: almost half of the annual US Rolls-Royce sales are leased vehicles. Hence the following question: does it make sense to integrate luxury brands in a traditional user-chooser car policy?
In a time where employee retention becomes a challenge for more businesses, the introduction of luxury brands in the fleet policy can be a plus.
DO’S AND DON’TS • Calculate the impact on your volume discounts • Check if there are options within your existing supply chain to add luxury vehicles • Make sure it won’t hurt your corporate image • Quantify the impact on recruitment and retention
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Before considering, and your leasing partner will confirm, luxury brands are not necessary more expensive, from a funding point of view, than the high-end versions of your mainstream suppliers. They often benefit from good discounts, residual value support and interest from the second hand dealer network of the same brand. The impact on maintenance cost and potentially insurance cost will be the bigger part of the price difference. MULTIPLE IMPACT Introducing luxury car brands will have an impact on the volumes of your mainstream suppliers and therefore also on your discount agreements. Especially in the beginning, when the novelty aspect will appeal, a shift is possible. Therefore, you might consider to enter the luxury brand in a segment or job level that won’t affect your volume deals. Moving forward, if your newcomer is successful and you want to introduce it to additional levels, make sure that you can at least compensate for potential premium losses by negotiating additional discounts where possible.
offering of your existing suppliers (scaling up), in a similar way as entry level badges, such as Skoda, have been successfully introduced in the past (scaling down). This will obviously reduce potential loss of bonuses. Take the time to check with your stakeholders and even with your Company’s customers what sort of impact of a luxury brand might have on the image of your Company. In some cultures, a nice car is a sign of success, in other cultures it raises suspicion about pricing, image or even ethics. Don’t make mistakes here : the cost of hurting a corporate image is always significant. From a HR perspective, luxury brands can have an impact on your recruitment/retention results. Especially in highly competitive environments, such as consulting, pharmaceutical companies and the medical device industries, where differences in benefits are crucial arguments to hire and keep good collaborators. You will only get one chance to introduce a luxury brand successfully in your user-chooser fleet. Therefore, balance the positive and the less positive impacts well. Regardless of the outcome, it will demonstrate your qualities as a Fleet Manager who is willing to think outside the box!
Then there’s always the possibility to focus on the luxury brands that are part of the FLEET EUROPE #93
NEW CITROËN C3 AIRCROSS COMPACT SUV More Space, More Versatility #EndlessPossibilities 12 driving aids Boot volume up to 520 L Citroën Advanced Comfort® Opening panoramic sunroof 90 customization combinations Sliding rear bench seats in 2 parts Grip Control with Hill Assist Descent All values reported are awaiting for final certification. Depend on different versions and different tire equipment. They can possibly be updated over the time. Contact your dealership for further information or connect on www.citroen.com.
COMBINED CYCLE CONSUMPTION FOR NEW CITROËN C3 AIRCROSS: FROM 3.7 L/100 KM TO 5.6/100 KM – CO2 EMISSIONS: FROM 96 G/KM TO 126 G/KM.
THEMA
4
TELEMATICS AND ROAD SAFETY NOT EVERYONE’S CUP OF TEA
ALISON CAMPBELL
Driving is an emotive issue. There’s debate in the industry as to how fleet safety has evolved, if at all. It depends on the type of business and whether vehicles are benefit cars or work tools. The driver mind set is different, and all important.
vehicle data (such as tyre pressure). It is also now an insurance aid and accident logging system, a ‘spy-in-the-cab’ and full-blown fleet performance and safety aid.
Executives with benefit cars think safety is their business and not their employer’s. They don’t respond kindly to driver behaviour monitoring of the sort dished up to professional drivers. Professional drivers, however, who drive vans or HGVs as their day job are open to being monitored as well as adapting and changing behaviour according to fleet safety policy.
According to a survey from the motoring services organisation RAC, 80% of businesses use telematics for safety reasons. The same research indicates that 43% experienced fewer accidents by installing telematics. The conclusion is that this is down to improved driver behaviour. 39% of businesses report lower incidences of speeding since using telematics to encourage better driving. 54% use telematics monitoring of driver behaviour for training purposes.
Why safety policy matters Vehicle and driver safety impacts every stakeholder in a business and has a profound effect on TCO (total cost of ownership) of the fleet. There are laws and regulations throughout Europe governing the responsibility of companies and organizations to keep employees safe – and that includes when they are driving for business. Even if they have an accident that comes down to driver error, the onus may be on the employer to prove that they were adequately vetted and/or their training has been adequate. The European Union has been mandating telematics use in road safety since the early 1990s.
How are fleet owners using telematics?
The adoption of telematics in insurance applications has changed the face of motor insurance and the way people drive in general. More motorists have switched to blackbox insurance solutions, particularly in Italy and Spain, and now insurance companies are introducing a wider range of policy options to reflect the different classes of driver and incentivise safer driving.
Telematics was first introduced in the 1960s by the USA Department for Defence. They were the first to develop GPS (Global Positioning Systems) to track asset location. It has evolved into a tool to track vehicle performance and capture
CELEBRATING
Fleet Europe's 20th Anniversary together with
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FLEET EUROPE #93
2 01 5
Innovation in IoT and M2M-based telematics data management.
20 00
Telematics begins to be used in fleet management.
1992
4-96 199
Development of global navigational satellite systems and the deployment of road transport telematics.
Maastricht Treaty contributes to the establishment of trans-European transport and telecoms networks.
1988
The DRIVE (Dedicated Road Infrastructure for Vehicle Safety in Europe) programme was formally adopted throughout the EU.
1978
201 2
We begin to see manufacturers launching cars with Advanced Driver Assistance Systems (ADAS) build in.
FLEET EUROPE #93
2016-17
Integration of dashcam and telematics technology starts to be used in fleets.
The term telematics was coined in a technology report to the French Prime Minister.
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Nathalie DE VRIES
SENIOR CONSULTANT AT LEASEPLAN
Sees safety as easy to put down on paper but harder to implement in reality: “Some commercial fleets advocate a practice of making the driver responsible for minor damage (dings, scratches and dents), which seems fair enough if it is counter-balanced with rewards for early or on-time deliveries, good driving and positive customer feedback. Rewarding good behaviour rather than sanctioning bad is the more successful option. Plus, telematics is an enabler to monitoring the success of training programmes.
For non-commercial fleets, employees should be encouraged to opt in to safety programmes by demonstrating the power of telematics data for the overall good of the business, and by default, the employee themselves. Gamification (the application of game playing tactics: point scoring, competition with others) can create healthy rivalry and a positive feedback loop, drastically reducing bad driving habits without the need for management to be directly involved.” She says.
“Telematics is an enabler to monitoring the success of training programmes”
Csaba CSISZKO,
PHILIP MORRIS INTERNATIONAL’S GLOBAL DIRECTOR, ENVIRONMENT, HEALTH AND SAFETY
“The emphasis is on helping drivers understand the importance of safety and driver behaviour on the reputation and good of the company”
“Earlier fleet policies put the focus on the driver.” He says. “They were technical and liability driven. The driver was handed a policy document to read when getting a company car, which he was told was a benefit, but here are the rules: - it’s a company asset, you drive it, you misuse it – here are the penalties. The document would include policy on drinking and driving, phone use, speeding and so on. Beyond this, the company didn’t know or have any say over what was happening with the vehicle. Now, they are putting in place supporting environments. The focus is on leadership and role modelling by the company figureheads. The emphasis is on
helping drivers understand the importance of safety and driver behaviour on the reputation and good of the company, how it is perceived by the outside world. In support of that, we have the telematics (blackbox technology, smartphone apps) that records data on speeding, aggressive breaking, harsh cornering and so on. So, companies are doing two things: on the one hand, getting more intelligence on individual driver behaviour, simply by using telematics, the second is moving the context of safety from the single focus on the driver to the company focus.”
Andrew PRICE,
ZURICH RISK ENGINEERING UK’S PRINCIPAL MOTOR RISK CONSULTANT
“Safety is something that many orgs have not yet grasped. So, in my mind there hasn’t been an evolution or organisation if you will. Some industries are managing it well, those industries that take health and safety seriously, such as pharmaceutical, chemicals, construction. It’s an easier sell for them because H&S is so engrained in their culture. Many other organisations don’t take it seriously until something happens, such as a major accident. The other difficulty is – who manages it? In some
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companies, it could be the fleet manager, in others HR, Health and Safety board. Whose responsibility it is within an organisation does vary. This is not going to change anytime soon because there is no specific legislation for fleet risk and fleet safety. In the UK, we have the HSE (Health & Safety Executive) and DFT (Department for Transport) joint publication [Work Related Road Safety] but it was published many years ago and is a guideline not legislation.
“Many other organisations don’t take it seriously until something happens” FLEET EUROPE #93
THE FUTURE OF SAFETY AND TELEMATICS Telematics is becoming standardized and cross compatible between vehicles and technology manufacturers. Connectivity and community means motorists and drivers will be able to connect to other vehicles and users on the road in new ways. Historical data will have its place but the future of telematics will be more about prediction and prevention. Beyond tracking the position of vehicles, future telematics technologies will enable them to connect with each other (vehicle-to-vehicle), their environment (vehicle-to-infrastructure), drivers and fleet or line managers. A vehicle that can connect with others and its environment is one that can avoid collisions, or can be driven in convoy autonomously. It can communicate its approach to traffic lights at a junction and request they change (if safe to do so i.e., if no other vehicle is approaching at the same time). This will help speed up journey times and ease driver frustration, which is known to stimulate bad driving. Street lights will come on only when a vehicle passes through, which in turn will save energy. It can not only receive but act on information about driving conditions, traffic, accident black spots and congestion. It can check on the driver to make sure they’re not falling asleep.
SPECIAL
OEMs building safety into cars A significant trend for fleet managers is the growth in OEMs building telematics systems into their vehicles. Many of the major manufacturers are getting in on the act at consumer and commercial levels. The more vehicles that roll off production lines with sophisticated telematics built in, the less expensive it will be for fleets to acquire and utilize the technology. The blackbox, spy-in-the-cab approach is already old hat. Aside for the advantage it gives insurance companies in apportioning blame in an accident, it is tantamount to shutting the stable door after the horse has bolted. Technology is now being deployed to prevent accidents in the first place by providing driver training and traffic avoidance capability. The future of telematics will spawn a variety of mobile apps, software add-ins and hardware products that help construct not only a safer driving experience but a safer environment. Using historical data, in the future we will understand more about patterns of road traffic congestion, road hazards and the realtime effect of weather and this will be fed back to cities so they can build better transport networks and systems for everyone.
The future of fleet safety policy will also be about leadership and role modelling and not punishment and reward.
CELEBRATE 20 YEARS OF FLEET MANAGEMENT WITH US IN OUR UPCOMING MAGAZINES. DON’T MISS: Fleet Europe Directory 2018 – December 2017 The three waves towards Smart Mobility Management
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FLEET EUROPE #93
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MANAGEMENT
The true cost of an accident Jonathan Manning
Repair costs don’t even scratch the surface of the true cost of an accident. So the advice is to look well beyond the tip of the iceberg.
Corporate fleets are at risk of identifying merely the tip of the iceberg when they calculate the cost of a road traffic accident to their businesses. But, as the captain of the Titanic discovered, the real dangers lie hidden. The concept of total cost of ownership is well established as best practice when fleet managers select vehicles, but few apply the same rigour to accident costs. Awareness of the full financial, operational and reputational impact of an accident would persuade far more companies to take safety seriously, says fleet risk management specialist, AA DriveTech. The direct costs of an at fault accident are well known. Firstly, there’s the bill for repairing the vehicle. For insured fleets, this still involves paying an excess; while self-insured fleets have to foot the entire cost themselves. Secondly, there are the medical expenses arising from treating and rehabilitating an injured employee. Finally, there are the costs arising from the third party’s claims, which may extend well beyond vehicle repair charges into increasingly expensive personal injury claims. And remember, every increase in a fleet’s claims history is matched by a rise in its next insurance premium. But these above-the-line costs barely scratch the surface of the true financial impact of an accident, states AA DriveTech. It urges corporate fleet executives to consider the indirect, or hidden, costs of an accident, which can inflate the cost of a claim exponentially. These include:
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> The administrative burden – the after-
math of an accident involves insurance forms, repair estimates, replacement car quotes and even crash investigation. Putting a value on the time this takes managers, drivers and administrative staff is vital to understanding the true cost of a collision.
> Lost employee time – any member of staff
unable to work because of a crash represents a direct cost. While working days are lost, the injured employee must still be paid.
> Lost business – skilled staff are in short
supply, and if an engineer, technician or sales executive is unable to visit clients, then a company will not only be unable to fulfil existing contracts business but also jeopardise future business.
> Recruitment costs – long-term injuries to
key employees force businesses to recruit replacements. The new colleague has to be identified, interviewed and trained, which takes time and money, and it can be months before the new recruit is productive.
> Reputational damage – the brand image of
a company is priceless, and and any negative news stories and photographs that arise from an at-fault accident can ruin a carefully built corporate reputation.
> Legal
costs – failure to comply with corporate legal responsibilities can lead to prosecution in some countries. Defending such cases incurrs significant legal fees. Losing such cases can be financially devastating. FLEET EUROPE #93
MANAGEMENT
The indirect costs of an accident or incident with company cars and/or employees involved can easily inflate the cost of a claim exponentially.
Finally, calculating the amount of revenue a company needs to make in order to generate a profit large enough to cover the total cost of an accident is a sobering experience. As the example in the panel conservatively illustrates, a business may need to generate €72,000 to pay for a €3,600 crash. The company therefore needs to ask itself: “Is it easier to sell €72,000 of products or services, or be more proactive in preventing this collision”. The decision is up to the corporate fleet executive in close collaboration with stakeholders from HSE and Finance.
TRUE ACCIDENT COSTS The independent European Transport Safety Council presented the following example in its Work-Related Road Safety Programme: ITEM OF COST
SAMPLE DATA
OWN DAMAGE COST
€ 1.200
THIRD PARTY VEHICLE DAMAGE COST
€ 1.200
THIRD PARTY INJURY COSTS (E.G. WHIPLASH)
€ 1.200
REPORTED COST OF COLLISION
€ 3.600
TOTAL COST OF COLLISION (INCLUDING HIDDEN COST AT 2 TIMES REPORTED COSTS)
€ 7.200
REVENUE REQUIRED TO FUND A SINGLE COLLISION AT 10% RETURN ON SALES
€ 72.000
The ETSC example is conservative when it multiplies the reported cost of the accident by only two to calculate the total cost, but it makes a powerful point: to cover a €3,600 collision cost, the company needs to generate €72,000 of revenue.
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SEAT: a star at the heart of Abdi Ibrahim’s fleet Turkish pharmaceutical company Abdi Ibrahim spent a lot of effort involving all stakeholders to select a car that best suits their sales representatives’ needs. Safety, quality, technology, TCO and service support were all taken into account. Today, 83 percent of all cars ordered by the company are SEAT much to the delight of the drivers.
Ufuk Güler Indirects Purchasing Manager of Abdi Ibrahim
Discover more at SEAT.com 66
When Abdi Ibrahim decided in 2016 to select a sole supplier for the largest group of employees entitled to a company car, they took the task seriously. A committee of top managers of the HR, Sales & Marketing, Finance and Purchasing departments evaluated the candidates on five criteria. Safety, fuel consumption and technology were top priorities, as Ufuk Güler, Indirects Purchasing Manager of Abdi Ibrahim explains: “With a top score of 5 stars on the EuroNCAP assessment, the SEAT Leon was amongst the top candidates. Moreover, the new automatic DSG transmission combined with the 1.6 diesel engine averages 4.1 /100 km. During our own road tests, we achieved similar results, convincing us even more.” ATTRACTIVE PRICING, SOLID SERVICE Tipping the scales in favour of the new SEAT Leon was the interesting price-quality ratio compared to the other competitors in the segment. “And there is another element”, says Ufuk Güler. “The last five years, the SEAT Leon became very popular on the Turkish market, increasing the average resale prices. This has had a positive effect on the lease rates.” Pricing is one thing, but service is equally important. “SEAT has overall service loca-
tions in Turkey. This is very critical for us, because the cars are the main tool for us to reach our customers. Any problems or delays are inacceptable for us. Together with our leasing partner, SEAT always offers a solution.” HAPPY DRIVERS Another crucial aspect in the decisionmaking was connectivity. “SEAT Full Link technology for smartphone integration is easy to use and allows our employees to drive much more safely”, adds Ufuk Güler. “On average, a sales rep drives between one and three hours to reach his destination, so the driving experience has to be satisfying, to say the least. Thanks to the new Leon’s improved look & feel, our employees really enjoy being on the road.” In fact, they are over the moon. “Our team is a very young one. Because of the dynamic lines and the popularity of the car in the young/mid-aged population, they were very excited. Once they got into the car, they were amazed at the technology and quality of the car. SEAT also prepared a video tutorial to explain how to use the technology in full. After a couple of weeks, we received a lot of thank you e-mails from our employees…” A car well chosen, then!
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Discover the 2017 Awards nominees Tim Harrup & Steven Schoefs @StevenSchoefs
This year, the most prestigious of awards in the fleet industry – the Fleet Europe Awards – are coming to Estoril, home to Portugal’s famous racing circuit. Below, we invite you to take a look at the nominees in the five categories.
AWARDS FOR INTERNATIONAL FLEET MANAGERS
This year, five different Award’s categories for fleet managers reward the international fleet managers who have implemented new and innovative solutions and management improvement to the industry:
The European Fleet Manager of the Year goes to the person or the team with European responsibilities having most successfully developed an international fleet management strategy leading to an optimised TCO in line with corporate strategy.
The Global Fleet Manager of the Year rewards the person or the team, managing a fleet at global level (in at least two continents) and having most successfully developed a global fleet approach.
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ALEXANDRA MELVILLE SMARTMOBILITY I 2017
The International Fleet Mobility Award goes to a company which has successfully implemented a green project or initiative in efficient alternative mobility for its fleet.
ROLE: Global Category Lead, Accenture SECTOR: Consulting Activities RESPONSIBLE FOR: 12,500 vehicles “We embrace innovation and are creative in our way to manage our fleet and our mobility. Our leadership and sponsor is very supportive of any new program we can implement on environmental friendly solutions, or new ways of mobility.”
MICHAEL BIEGER International Fleet Safety Award recognises a project or programme that improves the safety of the drivers and limits incidents and accidents related to the vehicle fleet, whilst taking into account cost optimisation.
ROLE: Sr. Director, Global Fleet Management, ADP SECTOR: Human Capital Management RESPONSIBLE FOR: 2,250 vehicles “We have implemented a truly global approach that’s collaborative and leverages the best global practices while being sensitive to local country laws, customs and business practices.”
FRANZ FEHLNER The International Fleet Innovation Award will reward a project in specific field of fleet management if the jury decides that this initiative stands out in the field of innovation and can be an inspiration for fleet management optimisation on a wider scale.
ROLE: Head of International Fleet Management an Services , Allianz Technology SE SECTOR: Finance RESPONSIBLE FOR: 28,000 vehicles “We transformed our fleet programme from a fragmented operating model to a bundled hub/spoke model which leads to increasing volume and huge cost savings. Beside this effects we have implemented a fully outsourced service model on a global level.”
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ADRIANA HOLBAN
CATY RATCHFORD
ROLE: Global Buyer, Heineken
ROLE: Global Fleet Manager, PespiCo
SECTOR: FMCG
SECTOR: Food
RESPONSIBLE FOR: 18,000 vehicles
RESPONSIBLE FOR: 90,000+ vehicles
“Our fleet management is fully embedded in the Company Strategy and is addressing Heineken’s values and strategic behaviours. It is not only a holistic program, but also an outstanding example of integration of corporate social responsibility within the safety and sustainability area.”
“We have a comprehensive strategy focusing on Capability, Reliability and Sustainability at both Global and Country level and this approach delivers World Class Results.”
MARKUS FALK ROLE: Head of Global Car Fleet, SAP SE
TANYA ROBERTS ROLE: Global Sourcing Manager Fleet SECTOR: Science & Technology RESPONSIBLE FOR: 4,500 vehicles “We have set up a Car Policy which is very attractive and well balanced for the employees, taking into consideration Environmental Awareness, Budget and Verities of car models.”
MICHAEL POHL ROLE: Sr. Procurement Engagement Manager Fleet, Microsoft Corporation
SECTOR: High Tec RESPONSIBLE FOR: 22,000 vehicles “We have introduced an E-Mobility Programme to reduce carbon emissions, with a policy to offer the choice of rail card, car or car without fuel card.”
JÜRGEN FREITAG ROLE: Senior Director Global Commodity Fleet, Siemens AG SECTOR: Power Generation; Healthcare, Industry, Dicital Factories RESPONSIBLE FOR: 48,000 vehicles
“We´ve developed a global reporting platform, which enables us to analyse and report out all relevant data to different audiences in the right format.”
“We developed a Global Fleet Guidance paper called “The Global Fleet Standard” which describes the major company goals and the essential Global Fleet approach and as such gives orientation to the regional Human Resources and Supply Chain Management departments.”
PRACHI MISRA
LEE WARNER
ROLE: Sourcing Director, NCR
ROLE: Global Fleet Manager, Unilever
SECTOR: Consumer Transaction Technologies
SECTOR: FMCG
RESPONSIBLE FOR: 2,400 vehicles
“We bring our vision into the local markets, whether this be from a safety standard with our MoMo (Motor on Mobile Off Safety Policy) or Zero Accident targets to the USLP zero carbon emissions by 2030 pledge. We are empowered to embrace new technology to improve the experience and protect our most important assets: ‘the driver’.”
SECTOR: IT RESPONSIBLE FOR: 9,800 vehicles
“We have a holistic approach towards fleet management, with all stakeholders involved (HR, Legal, Operations, IT and Filed), and we have successfully implemented a Telematics programme to steer driver behaviour and optimise cost-efficiency.”
PETER SZELENYI ROLE: Global Fleet Category Manager, Novartis
RESPONSIBLE FOR: 13,500 vehicles
Michiel Alferink, Vice President International Sales, Athlon International Andy Leeden, Global Category Manager, AstraZeneca Daan Bieleveld, Mobility Manager, Royal DSM Selçuk Gündoğdu, Fleet Manager, Vaillant Group Christoph von Meyer, Head of International Corporate Sales, BMW Group Wolfgang Stahl, Director European Fleet, Opel/Vauxhall Europe Ralf Kostrewa, Manager Volkswagen Group International, Volkswagen Group Stefan Herbert, Senior Manager International Corporate Sales, Mercedes Benz Mark Howlett, Fleet Sales Manager Europe, Kia Olivier Gaudefroy, Vice President Corporate Sales and Used Cars, Renault Alessandro Pigazzi, Director of International Business Office, Arval Arnd Martin, Managing Director, Fleet Logistics Vinzenz Pflanz, CSO, Sixt Gavin Eagle, Managing Director, LeasePlan International Jeremy Cleary, Head of International Sales - New Business, ALD Automotive Carsten Kwirandt, Head of Marketing and Business Development, Aphabet International Edward Kulperger, VicePresident, Business Development, Geotab Caroline Thonnon, CEO & Business Development, Nexus Communication Steven Schoefs, Chief Editor, Nexus Communication.
KIM STENBERG
SECTOR: Pharmaceutical
ROLE: Head of Global Fleet Procurement, Vestas Wind Systems A/S
RESPONSIBLE FOR: 30,000 vehicles
SECTOR: Energy
“The speed of transformation from ground zero to the current level of fleet management maturity is relatively unique in the pool of similar size and complexity multinational, multi-divisional corporates such as Novartis.”
RESPONSIBLE FOR: min. 5,000 vehicles
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THE 2017 JURY MEMBERS
“We are in the middle of a transformation process for Fleet. Fleet will work on a strategic level and be responsible for sourcing, selecting, negotiation, setting up the fleet supply chain, setting KPI with both CMT Fleet and with vendors or other stakeholders.”
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INTERNATIONAL FLEET INDUSTRY AWARD
With this category the achievements and innovative solutions of the fleet suppliers will be celebrated. The International Fleet Industry Award recognizes the project from the fleet industry which most helps international fleet managers to achieve their goals (TCO, sustainability, mobility, HR, fuel and CO2 reduction…). Here are the nominees for 2017:
ALLIANZ AUTOMOTIVE With Flexible solutions for New Mobility providers & Autonomous shuttles Allianz Worldwide Partners is working with major Car-and Ridesharing provi-ders globally to develop and deploy require highly flexible and customercentric insurance solutions which reflect and cover their actual risk. Allianz has also set up a worldwide program to provide coverage for fleets of autonomous driving shuttles.
ALPHABET INTERNATIONAL
year in the Netherlands, My Benefit Kit fully integrates HR and mobility. Athlon's new My Benefit Kit allows employees to spend a monthly mobility budget on all mobility options chosen by employers from the range offered by Athlon.
FREE2MOVE LEASE With Free2Move Connect Fleet Free2Move Connect Fleet is PSA multibrand connect fleet management offer. Whatever the fleet size, connected fleet management solutions are becoming a major requirement for the companies that wish to better control the costs of their fleet and optimize their activity.
LOJACK, CALAMP GROUP With LOJACK® CONNECT LoJack offers globally high return on investment to Renting and Fleet companies by reducing the cost of theft, the cost of ownership and allowing innovative value added services. LoJack combines a stolen vehicles recovery solution in cooperation with Police forces utilizing the best performing Radiofrequency technology with a suite of telematics solutions.
MOBILITY TECH GREEN
In the middle of 2017 Alphabet implemented a new tool to support Fleet Usage Optimisation (Mobility Consulting Tool), aiding fleet managers by providing fleet analysis using real data analytics and simulating future scenarios for fleet optimisation with Electrification and Car sharing. With the new Mobility Consulting Tool, Alphabet can simulate future fleet scenario for fleets with facts and figures based on real usage pattern.
With e-Colibri Carsharing technology
With Total Fleet In April 2017, Arval, launched Total Fleet, developed to answer an increasing demands of its clients – whatever their geography or their size are - working with several fleet suppliers, to simplify Fleet Managers reporting task and bring greater data standardisation and transparency across their markets and partners.
ATHLON With My Benefit Kit In Germany Athlon has introduced My Benefit Kit. A revised version of the Mobility Budget that was launched last
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With Autopilot Tesla Autopilot is an increasingly capable suite of safety and convenience features that make personal transportation safer and more enjoyable. Since September 2014, Autopilot hardware has come standard in all Tesla vehicles, and Tesla has continued to refine and enhance the Autopilot system since its features were first enabled in cars in October 2015 via over-the-air software updates.
TOMTOM TELEMATICS With TomTom EV Service The TomTom dynamic Electric Vehicle (EV) Service is a new service for drivers of electric vehicles. It has been developed to help EV drivers to make informed decisions about when and where to charge their vehicles, reducing range anxiety. It provides real-time availability for charging points, as well as other essential information such as opening hours, payment methods, plug types and more.
VALEO COMFORT AND DRIVING ASSISTANCE SAS With Mov’InBlue
With Mobility Consulting Tool (MCT)
ARVAL
TESLA INC
e-Colibri allows companies to reduce their fleet budget by managing their self-service vehicles via three elements: M2M e-Colibri box which is installed directly in the vehicle; e-Colibri softwares composed of two services: a fleet management system for operators and a booking platform for employees; and finally e-Manager, the mobility companion app.
NEWMOTION With The Group Charge App & Automatic Reimbursement y As demand for electric vehicles grows, NewMotion has designed, built and supported smart charge services for home, at work and on the road. The system creates solutions for fleet owners who are electrifying their fleet to improve utilization of their charge points, as well as allowing them to remove complexity of mileage claims by completely automating the process. Along with this, the Group Charge App helps companies and their employees optimize the utilization of the company’s charge points.
Mov’InBlue is a technological enabler providing a white-labeled, end-to-end solution, leveraging the highly secured Valeo InBlue® smart key technology.Through a simple touch on your smartphone’s screen, you can open your vehicle offline thanks to Bluetooth technology and gather vehicle data (fuel level, mileage, alerts...).
THE 2017 JURY MEMBERS Maaike van Emmen, Fleet Manager Europe, G4S Europe Daan Bieleveld, Global Mobility Manager, DSM Geert Behets, Head of Global Travel, Meetings & E Fleet, UCB Hans den Hollander, Fleet Manager EMEAR, Cisco Fer Derwort, European Fleet Manager, Infor Pim De Weerd, Global Commodity Manager Mobility, Philips Selçuk Gündoğdu, Fleet Manager, Vaillant Group Ben Varey, Global Travel and Fleet Manager, SGS Antal Palmai, Head of Global Category, E.ON Steven Schoefs, Chief Editor, Nexus Communication.
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REGISTER NOW 6 december 2017
estoril PORTUGAL
LEARN, NETWORK AND BE INSPIRED, BE IN ESTORIL On December 6th, the European car fleet community will come together in Estoril (Portugal). No less than 800 fleet professionals will gather to get insight on new trends impacting the international fleet management profession. This year again, the forum will be the not-to-be-missed session for all European fleet professionals.
AMONG THIS YEAR’S SESSION • Reshaping the sustainable fleet and mobility professions • Uncovering the DNA of the fleet and mobility professions of tomorrow • How to capitalize in the transforming fleet and mobility business landscape • Identifying the sustainable business model in the new fleet and mobility constellation
WHY YOU NEED TO BE THERE The Fleet Europe Forum is forward-looking, but firmly fact-based, with contributions from experts from inside and outside the industry. Yet the event is also greater than the sum of its presentations, debates and networking opportunities: this is where fleet and mobility customers and suppliers become a true fleet and mobility community, to the benefit of all present.
WHEN? The 6th of December WHERE? At the Estoril Congress Center, Portugal
REGISTER NOW On forum.fleeteurope.com
Brought to you by
FOR INTERNATIONAL FLEET & MOBILITY LEADERS
MANAGEMENT
SMART MOBILITY START-UP AWARD CARPAY-DIEM SMARTMOBILITY I 2017
For its second edition, the Smart Mobility Start-up Award is once again highlights start-ups based in Europe and developing innovative and/or disruptive fleet and mobility services. Here are the innovative companies which have entered the competition:
AMBER Fleet management has never been so efficient, environmentally friendly, and easy for both the fleet manager and the user. Drive Amber’s electric BMW i3s on demand, using the Amber Mobility app. The intelligent mobility platform can predict when and where you’ll need a car, and by mid-2018, they’ll be driving themselves right to you.
AUTOAID GMBH Autoaid presents a new open telematics platform, which provides easy and versatile access to connected car data for fleet management. The solution consists of an OBD-II dongle with mobile data transmission, and of a corresponding data cloud with an API and a web portal. Readouts such as fuel level, mileage, error codes, and service intervals are just a few examples of what becomes possible.
AVRIOS INTERNATIONAL AG Avrios is the first company taking a truly platform based approach to fleet administration. It has components of both, a fleet management software company and a full service leasing company. Software is the tool which is used to digitally provide services around fleet management.
CAPTE Capte has developed a complete IOT platform for solving transportation issues, including hardware, software and connectivity. It strongly believes that transportation companies, leasing companies as well as their clients and other companies that own a fleet should not be bothered by installing multiple devices on their vehicles to perform different operations.
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This is a platform allowing any mobile app or connected car to activateany fuel pump and manage the payment from inside the car. When the car arrives at the fuel station, the smartphone (or car display) automatically switches on and asks for the nearest pump number. The driver is then invited to take fuel. When he places the nozzle back, the transaction receipt appears on the screen.
CGON LTD CGON took the electrolysis technology used in nuclear submarines and developed it into an on-board on-demand hydrogen generator, which reduces the emissions by up to 80% and improves fuel efficiency by up to 20%. The device works with any diesel or petrol engine.
CHANGEMYCAR In over 100 interviews with lease car drivers and their employers, it transpired that they have one problem in common: to be stuck in a long term lease contract. A lease contract for one car for 5 years…that feels like owning! Why not switch a couple of times per year to the car that you need that moment?
CLICKMECHANIC ClickMechanic is an online marketplace for car repair which locates and provides quotes from vetted mechanics quickly and simply. For car owners, it brings newfound convenience and reliability, as well as the confidence that they are getting the best price when hiring a mechanic. ClickMechanic is also a source of ongoing leads for independent mechanics and garages. As such, it promotes the growth of smaller businesses.
organize shuttles between employees or between participants of an event thanks to: a mobile app, a semi-automated interactive map and a social control of the alcohol consumption of the drivers.
CROWDCARCHECK CrowdCarCheck tells you when you should replace one of your cars or which ones you are better keeping. In other words it knows in what phase of its lifecycle the car is (Brand/Model/Type) at how many kilometres are on the clock, what costs will be necessary for repairs or services, and combine this with the value loss of the car.
DRIIVEME
DriiveMe connects renters willing to manage their fleet of cars and drivers willing to travel between cities. To balance their fleets, car rental agencies need on a daily basis to move their vehicles. Today, to answer this issue, car rental companies use carrier trucks. To help them control their costs, Driiveme offers them the opportunity to move their vehicles by individuals in the form of 1€ rent.
FAST2DRIVE fast2drive.com - the search engine for leasing vehicles - is the first European comparative tool for operational leasing vehicle offers. It compares in just a few clicks the prices of more than 2,500 offers available in Italy from over 30 websites.
HAL24K HAL24K delivers operational and predictive intelligence for Smart cities and Smart enterprises. It combines advanced data science techniques – such as machine learning and deep neural networks – with modelling, analysis and visualization through its SaaS-based HAL24K Dimension platform.
COMMUTY Commuty is a mobility suite for companies. Mobility has to be part of the companies’ strategy to stay alive.To help them in this process, Commuty provides them with various modules to fit their needs in an allin-one user-friendly app’. It involves their employees from the start.
COVEVENT CovEvent is a road safety and carpooling service for event organizers, corporations andsponsors. It makes it very easy to
IDEOS CONSULTING Based on any current situation (fleet status, power train mix, CO2 emissions, fuel consumption, accidents records, current mobility…) and settings of quantitative objectives (TCO reduction, targeted energy mix, CO2 capping, manufacturer consolidation, driver behaviour improvement, alternative mobility mix…) the system automatically produces best fit scenarios.
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KOWO SPRL
SAFERIDE TECHNOLOGIES LTD.
Kowo is a Belgian carpooling company founded in April 2016, and officially launched in May 2017 at the Febiac (house of the automobile) with the mission to offer companies a solution that will address several issues: cutting costs on company cars and fuel, decreasing the need for car parking spaces at work, lowering the CO2 emissions.
SafeRide’s vSentry™ software suite provides commercial fleets and private vehicles with an intelligence-based multitier cyber-threat protection, from the vehicle critical operational core through to the connected vehicle intelligent application layer. It is supported by an intelligent cloud-based security facilitation layer to provide security and value-added services.
PICKMEUP NV PARKD is a patented pending payment solution for vehicles, allowing them to autonomously pay for a parking session. This results in convenience, time- and cost savings for the driver and company. When the driver parks on a city-defined parking spot, the Parkd device will detect that the driver turns the engine off and is no longer moving. It then starts a parking session for this user and forwards the corresponding license plate to the city-server.
OPTIBUS Optibus is the world’s only real-time optimization solution for transportation and fleet operators. Using the Optibus platform, any municipality or private operator can plan, control, and operate every vehicle and driver in the city in realtime to deliver better transportation for passengers.
PARKEAGLE BV Parkeagle has developed a smart parking solution that consists of three main components: 1) parking sensors which detect parked cars and share parking availability; 2) an app for smartphones and in-car navigation systems, to provide parking availability and guidance to individual car drivers; 3) cloud services to provide occupancy data and services to customers.
POMP POMP has created the fuel station of tomorrow: mobile, clean and safe. It empowers clients to never have to go to fuel stations again and to have a modern refueling experience, by delivering fuel where they are. It has developed a compact fuel station (fuel tank + MID distribution unit) that fits in a compact utilitarian vehicle that enables access to customers everywhere.
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SD-INSIGHTS
THE 2017 JURY MEMBERS Dave Cussell, General Manager Fleet & Leasing, Toyota Motor Europe Olivier de Wasseige, CEO, Internet Attitude Vincent Degives, Marketing Manager, Nexus Communication Caroline Thonnon, CEO & Business Development, Nexus Communication
A vehicle can be a risky working environment. Distraction, fatigue or a busy working schedule increase the risk of an incident or accident. SD-Insights supports employees in their driving performance by providing a digital driver training service. This results in better safety aware drivers, improved driving performance and reduced risk of an accident by 25-40%.
SHARONOMY SA (CARAMIGO) CarAmigo is the first peer-to-peer car rental marketplace in Belgium, Bulgaria and among the first to launch in Portugal. We connect car owners with people who need a car. A car owner can recoup part of his car expenses by sharing his car with others, in all confidence as CarAmigo screens all drivers and provides full casco insurance.
SAS SMART GREEN BATTERIES SAS Smart Green Batteries proposes the missing link to boost electric mobility development for fleet & mobility industry on a global scale: a network of fast/ ultra-fast autonomous renewable electric stations.
TAXIFY OÜ The company develops and operates the Taxify mobile application, which allows people to request a taxi or private hire driver from their smartphone. Once the rider has confirmed the pick-up location, requested a ride and the driver has accepted, the rider can see the driver’s name and car details. After the ride is finished both driver and rider can rate each other.
NUMADIC Numadic is a unified supply chain tracking and management platform. The company designs and manufactures intelligent sensors and trackers that pair with analytical dashboards to increase supply chain visibility and automatically surface operational anomalies.
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INTERNATIONAL CAR REMARKETING AWARD
This year, Fleet Europe will also highlight and recognize an important part of our industry: the Car Remarketing sector. The International Car Remarketing Award will be given to a player in the automotive remarketing sector which has developed an innovation that contributes to efficiency and transparency within the remarketing process, and/or contributes to the margin realized on the vehicles. Here are the 2017 nominees:
ALD AUTOMOTIVE BELGIUM With Flexpertise End of contract assessments have been identified as one of the key reasons for poor customer satisfaction in leasing. Flexpertise takes care of this by disconnecting the assessment from the end of contract. Assessments are done about one month prior to the end of contract, whenever the driver wants. This represents a triple win: for the driver, for the fleet manager and for the lease company.
AUTOBID
REEZOCAR
With Autobid.de app
With Second Hand Car Leasing
The new Autobid.de App simplifies and improves remarketing strategies for dealers by facilitating market access, making selling and buying as convenient as possible, anywhere and anytime. The app is available in 22 languages and allows for direct participation in auctions that reach up to 25,000 commercial buyers across Europe. The Autobid.de App offers full bidding functionality, and includes a bidding agent to bid simultaneously on vehicles in more than one auction.
Reezocar is an innovative service that allows companies using long-term rentals to have a new opportunity to remarket their stock. This is done by developing leasing offers for used cars from their stock at attractive rates.
DAT CONSULTING With Remarketing Health Check Many brilliant remarketing ideas never gain traction within organisations. DAT Consulting aims to provide a fresh look at automotive remarketing, identifying the constantly evolving key issues that impede the success of remarketing efforts. The company's Remarketing Health Check aims to improve the efficiency and profitability of remarketing strategies by unlocking the remarketing knowledge and skill held within an organisation.
GT MOTIVE With GT Mobile Check
ALD AUTOMOTIVE With QIGO Launched as a pilot in Denmark, QIGO is a 100% digital platform for used-car shopping that removes uncertainty about vehicle quality by being fully transparent (with high-resolution, 360° images), adds personal service (such as needs-based browsing), and provides doorstep delivery (including a 14-day return policy).
The application allows users to perform an end-of-contract inspection/damage calculation, using the correct VIN of the vehicle and the full technical database of GT Motive. Additionally, the user's own remarketing business rules can be applied. The tool also works offline, with the final calculation made when back online.
AUTOROLA With INDICATA
ASTON BARCLAY With Aston Barclay Buyers App Aston Barclay's Buyers App allows buyers to bid in real time at auctions across the UK, leave proxy bids on vehicles, access credit and receive notifications from their auction activity. By bridging the gap between physical vehicle auction and the mobile space, the app revolutionises the way buyers and seller communicate.
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INDICATA is the next generation of business intelligence and market insights software for the management of used vehicle inventories. Unlike any competitor in the market, the web-based platform provides a unique solution for improving used vehicle profitability and helping to protect residual values within the automotive industry and related sectors. INDICATA is currently live in 13 European countries, from Turkey to the UK, and actively scans and analyses data in each market. It has a market coverage of 98% in each country market, 2400 dealer advocates worldwide and scans 6 million cars every day.
RMS AUTOMOTIVE With RMS Automotive Inventory Management Solutions Many large vehicle inventory owners are burdened by disparate, inefficient and complex systems to manage their stock. RMS Automotive transforms this previously disjointed remarketing process for remarketers worldwide, via its modular inventory management software that reduces risk and maximises return on investment.
THE 2017 JURY MEMBERS Pierre-Olivier Bard, Remarketing Director, AVIS Group EMEA Wolgang Reinhold, Chairman Car Remarketing Association Ingo Schlosser, Director Online Sales Europe, BCA Europe Morten Holmsten, Global Sales Director, Autorola Marcel de Rycker, Managing Director, International Warranty Services Roland Gagel, Vice president Field Services, SGS David Baudeweyns, Sales Director, Nexus Communication Luc De Moor, Industry Expert, Nexus Communication
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INTERNATIONAL FLEET HALL OF FAME
The International Fleet Hall of Fame Award celebrates industry leaders who, during their careers, have contributed to the professionalism of the international fleet management profession. This year, the latest entrants to the Hall of Fame met in Paris in early September to screen all the international decision makers of the industry and select the ‘crème de la crème’ of the candidates. Here are the 4 nominees for this prestigious and unique recognition:
TIM ALBERTSEN
HANS DEN HOLLANDER
Group Deputy CEO, ALD Automotive
Manager Car Fleet EMEAR, Cisco Systems International
HUIB TER BRAAK Director of the Europe & Mediterranen Area, Arval
SIMON DRANSFIELD General Manager Fleet & Business, Europe, Jaguar Land Rover
VOTE NOW FOR YOUR FAVOURITE INDUCTEE forum.fleeteurope.com/awards/international-fleet-hall-of-fame The results will be announced at the Fleet Europe Awards Ceremony the 6th of December.
COLOPHON
Fleet Europe Taxation Guide 2017 The best tool to decide on the right taxation choices for your corporate fleet. All you need to know is in this guide!
> Available now trough shop.nexuscommunication.be
EDITORS Steven Schoefs – Chief Editor sschoefs@nexuscommunication.be Céline Gilson – Project Coordinator cgilson@nexuscommunication.be CONTRIBUTORS Stijn Blanckaert, Alison Campbell, Tim Harrup, Yves Helven, Frank Jacobs, Jonathan Manning, Dieter Quartier EXPERT Erwin Boumans (BDO) Michael Gergen & Richard Worrow (Dataforce) Cover: Cible Pictures: ©Shutterstock ©ThinkStock - Dieter Quartier Layout: Cible contact@cible.be www.cible.be
Julien Domken - International Key Account Manager jdomken@nexuscommunication.be Saskia Lannau - International Key Account Manager slannau@nexuscommunication.be Vincent Degives - Marketing Manager vdegives@nexuscommunication.be Virginie Emonts - Sales and Marketing Assistant vemonts@nexuscommunication.be Aline Verpoorten - Internal Sales Assistant averpoorten@nexuscommunication.be Laura Petit - Sales and Marketing Assistant lpetit@nexuscommunication.be
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www.kia.com
For those who like to stand out.
The new Kia Stonic. For those who can’t get enough of life. The new Kia Stonic’s muscular design was made for those who make each ride an adventure. Sharp, aerodynamic lines and a bold grille add to your individuality. LED Daytime Running Lights with striking LED side repeaters get you noticed. Several colour combinations for the interior and exterior let you customise your own car. The new Kia Stonic – for those who can’t get enough of life.
The Kia 7-year/150,000 km new-car warranty is valid in all EU member states (plus Norway, Switzerland, Iceland and Gibraltar), subject to local terms and conditions. Fuel consumption (l/100 km)/CO ² (g/km): urban from 4.9/127 to 7/158, extra-urban from 3.8/99 to 4.6/106, combined from 4.2/109 to 5.5/125.