Fleet Europe 100 by Nexus Communication

100 10/2018

Nexus communication - Fleet Europe #100 - Periodic magazine - OCTOBER 2018 - Deposit Office X

FOR INTERNATIONAL FLEET & MOBILITY LEADERS

100 THANKS No

100

TOGETHER! This 100th issue of Fleet Europe is proof of your trust, for over 20 years already! You read Fleet Europe, you follow our websites, you attend our events and our trainings.

DOSSIER

ANALYSIS

How to master your TCO in 2019 p.6

The rise of Premium in fleet p.58

To all fleet managers, mobility leaders and partners - old friends and new: THANK YOU! We have many great projects lined up for the future. Together!

MANAGEMENT

THIERRY DEGIVES & CAROLINE THONNON 100 Tips for your Publishers

fleet efficiency p.37

Business is about maximising the opportunities. Every day.

seat.com/ateca

SEAT Ateca Make every day a great day.

The SEAT Ateca, with its Virtual Pedal, Digital Cluster and Wireless Charger, can be a perfect addition to your fleet. Get in touch with us to learn about more SEAT FOR BUSINESS opportunities. Average fuel consumption: 4.5 - 7.0 l/100 km. Average CO2 mass emissions: 118 - 159 g/km.

AS WE TURN 100, CHANGE KEEPS US YOUNG

Your tweets Autovista Group @autovista_group Auto industry could face £5bn tariffs due to ‘no-deal’ Brexit

People who turn 100 are very old indeed. A sobering thought, as I tap out the intro to this 100th Fleet Europe magazine. Fortunately, that number means something else for us: we launched this magazine 21 years ago. That’s young enough to have a promising career ahead, and old enough to drive a company car! The international fleet industry itself is both young and old, too. For our 50th issue, we focused on TCO. That was just eight years ago, but it feels more like a few decades. While TCO is still relevant, there are other great ideas whose time has now come: car-sharing, ride-hailing, connectivity, last-mile mobility, autonomous driving and Mobility-as-a-Service. Add to that the shake-ups in financing and stakeholder involvement within multinationals, and it’s fair to say that European fleet management has radically changed – and rejuvenated – over the past few years. The same applies to Fleet Europe.

26 & 28 NOVEMBER FLEET EUROPE SUMMIT (Barcelona)

That’s why this 100th issue come to you in a revitalised lay-out. The new look and feel has purpose as well as style: it’s a more flexible, more efficient way to bring you the news of our industry – old, young and ever-changing.

ACEA @ACEA_eu Innovation fact: annual EU investment into R&D by the automobile and parts sector has risen by 7.4% to reach an alltime high of €53.8 billion! @Bloomberg The world could install more than a trillion watts of renewable power over the next 5 years

Your Linked In LeasePlan Our new whitepaper says 90% of us charge our EVs at home or office. Europcar Mobility Group Estonia became the first European country to offer free bus travel across almost the whole country. Whit this service, the country hopes to limit fossil fuel consumption and rural depopulation.

76%

of all charging points are concentrated in just 4 EU countries

@StevenSchoefs Chief Editor, Fleet Europe

COLOPHON EDITORS: Steven Schoefs - Chief Editor sschoefs@nexuscommunication.be

SALES & MARKETING: David Baudeweyns - Sales Director dbaudeweyns@nexuscommunication.be

FLEET EUROPE:

Céline Gilson - Project Coordinator cgilson@nexuscommunication.be

Saskia Lannau - International Key Account Manager slannau@nexuscommunication.be

www.fleeteurope.com

CONTRIBUTORS: Tim Harrup, Frank Jacobs, Jonathan Manning, Dieter Quartier, Fien Van den Steen, Mark Sutcliffe, Yves Helven EXPERTS: Philippe Noubel (Nexus Communication), Richard Worrow and Michael Gergen (Dataforce), Erwin Boumans (BDO) PICTURES: ©Shutterstock LAYOUT: Cible - www.cible.be

Daniel Savigny - International Key Account Manager dsavigny@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

@Fleet_Europe

Fleet Europe is published by Nexus Communication SA Parc Artisanal 11-13, B-4671 Barchon (Belgium) T +32 4 387 87 71 Fax +32 4 387 90 63 contact@nexuscommunication.be Fleet Europe is registered and copyrighted trademark. Reproduction rights (texts, advertisements, pictures) reserved for all countries. Received documents will not be returned. By submitting them, the author implicitly authorizes their publication. PUBLISHERS: Caroline Thonnon – CEO & Head of Business Development Thierry Degives – CEO & Managing Partner

FLEET EUROPE #100

Benjamin Uyttebroeck - Journalist buyttebroeck@nexuscommunication.be

Fleet Europe Magazine FleetEurope

TRAVEL IN STYLE. NO MATTER WHAT.

THE ŠKODA SUPERB COMBI 4 x 4. Employees want to travel in style. The CFO wants to travel on a budget. Finally, as Fleet Manager, you can satisfy them both with ŠKODA SUPERB. With class-leading spaciousness and dynamic design this car is stylish yet practical. With minimum operating costs, safety and connectivity features available today, it could be your most eﬃcient employee ever.

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Combined fuel consumption and CO 2 emissions according to the legislation of the concerned country y

BUSINESS 30

Europe welcomes a new car lease player

Sofico celebrates 30th anniversary

INNOVATION 38

Paris s’EV-eille

SMART MOBILITY

6-29

DOSSIER

BUSINESS

“ALD targets 150,000 private lease contracts in 2019”, John Saffrett, ALD Automotive

Smart, sustainable, sexy Oslo

REMARKETING 42

It is finally time for used-car leasing

YOUR TCO IN 2019

eBay Classifieds Group Motors: “The full value chain is moving online”

6 8

There is no price on safety

Fleets need to focus on driving down fuel consumption

MANAGEMENT

What the cost of money means for TCO

Insurance premiums rising sharply

ANALYSIS

18 20

Predict to prevent costs

The impact of taxation and legislation

Luxury Brands with an upward trend in the EU Fleet Market

From operational to strategic fleet management

A customer experience to match the car

How utility became premium

Driver behaviour dictates fleet costs

The mobility transformation

EXPERT

Philippe Noubel

Discover the 2018 Fleet Europe Awards finalists

MANAGEMENT

Be ready for the new stakeholder matrix

58 ANALYSIS

Premium brands in Fleet

THANKS TO OUR ADVERTISERS IN THIS ISSUE

A C O M M O N V O I C E T O W A R D S T H E M A R K E T, PA R T N E R S A N D S U P P L I E R S

The Car Remarketing Association Europe (CARA)

established by key players in the used car market industry The members of the association are from Europe and consist of: • car manufacturers in the Automotive Industry

The two main topics we are working on are: 1. Support ‘correct mileage reading’, this is a hot item, heavily supported

by the European Parliament and local Governments.

DON’T MISS THE NEXT EDITION OF THE FLEET EUROPE MAGAZINE • fleet Management & Car Leasing Companies

2. ‘Transport solution throughout Europe’, transporting vehicles throughout

• used Car Data Providers

Europe can be a risk, especially on VAT. To minimize the risk, we are

• used Car Service Providers

working with relevant partners on a harmonize standard solution.

18.10.17 14:57

To get more information about the association or to become a member, please visit our website www.cara-europe.org

Fleet Europe Directory 2019

Topics: - Analysis of the industry’s major sectors - All your fleet & mobility suppliers with international contact details

WANT TO ADVERTISE IN THIS ISSUE ? Contact David Baudeweyns • Sales Director dbaudeweyns@nexuscommunication.be

VW_GFI_back-wall_300x250cm.indd 1

Release in December

FLEET EUROPE #100

P01446_JLR_Fleet_Europe_Forum_Event_17_50x50cm_Desk_Logo.indd 1

• used Car Auction Companies

DOSSIER

THERE IS NO PRICE ON SAFETY A few weeks ago, Dutch media reported that driving assistance systems lead to more crashes and inflate the repair bill. That called for an interview with Richard Schram, Technical Manager at Euro NCAP - an independent organisation that assesses safety technology and advocates preventive safety. @DieterQuartier

made was that these systems are too complex to use and yet not intelligent enough, while drivers put their faith in them and lose focus.

The conclusions from the report are quite alarming. Are they correct, according to you? “First of all, the study disregards the location and the cause of the accidents. There is no proof that the driver assistance systems were to blame in these accidents. Second, the research only involves private buyers. No comparison has been made between cars with and without ADAS. You mustn’t forget that business drivers travel a lot more than the average consumer and these vehicles typically have ADAS fitted. In any case, there is no denying that the repair bill increases, with all the sensors and expensive materials that need replacing.”

FLEET EUROPE #100

Richard Schram, Technical Director at safety assessment and standard-setting organisation Euro NCAP.

The articles on Dutch media sites were based on the conclusions of a study by Automotive Insiders and Oude Essink Business-Advies. Based on 10,000 damage claims by private customers, it appeared that cars equipped with driver assistance systems were more involved in accidents (24%) than cars without them (13%). Conclusion: instead of avoiding accidents, driving assistance systems lead to more crashes and cause the repair bill to rise dramatically. Another statement

Does this study undermine Euro NCAP’s vision that ADAS save costs and avoid accidents? “Not at all. American, British and German research contradict the Dutch report: Autonomous Emergency Braking (AEB) systems reduce the crash incidence by 30%. This supports our own findings. We make a clear difference between ADAS that are a safety net, such as AEB and lane support systems, which only intervene at the last minute, and comfort-oriented ADAS, such as lane centring and adaptive cruise control (ACC). The latter ones are currently being assessed. Do they have a safety benefit? We think so.”

In which way does your research differ from that of the Dutch study? “Euro NCAP does not primarily look at costs. Human lives and injuries are at the core of our attention. By incentivising OEMs to fit these systems and sensors as standard we are helping to reduce the price and make it affordable for all. Of course, we focus at the major accidents where bodily injuries or even fatalities occur. Part of the Dutch study is about parking damage and minor accidents – that is something we do not cover because there are no real injuries involved.”

With which ADAS does a car have to be equipped to obtain a 5-star Euro NCAP rating? “We do not demand the presence of specific systems. We demand solutions for certain dangerous situations. In 2017, if you had a camera for lane support or traffic sign recognition, but no AEB, it was possible to get 5 stars when you aced all other tests in Safety Assist. In 2018, that is no longer the case. AEB has become a sine qua non – and it has to come standard. In the opposite case, you can get two ratings: one for the model without AEB and one that does have this system as part of an optional safety package.”

“We keep on pushing manufacturers to raise the bar and make their systems more intelligent.” Richard Schram

Autonomous Emergency Braking (AEB) won’t become mandatory before 2022, but OEMs need it already today to obtain 5 Euro NCAP stars.

“I won’t be next year, but around 2022 by the looks of it. The proposal has to go to Geneva before it can be translated into law, which will take a few years. From 2022 on, all newly launched cars will then have to be equipped with Autonomous Emergency Braking. By 2024, all vehicles sold will have to have AEB on board as well. Typically, there is a two-year delay between new models and existing models.”

Are there any other ADAS that you are looking to include in your vehicle assessment? “We are closely following the development of AEB systems. We constantly add new scenarios. We started with very simple ones, in which a car approaches a static vehicle. As the system evolves, we are now looking at how it reacts to cross traffic, or to vehicles that are not directly in the line of attack, so to speak. We keep on pushing manufacturers to raise the bar and make their systems more intelligent.”

OEMs call upon the same suppliers for their ADAS. If the systems are the same, why are there differences in the way cars respond? “I think the answer is twofold. On the one hand, there is the cost element. More expensive sensors can see better.

Also, you could either use a front camera or a radar system to detect possible danger, but it is better to have both. The more certainty the car has, the better it can intervene. On the other hand, systems are programmed to perform well on our tests, but in reality, OEMs need to ensure that their systems do not unnecessarily intervene for instance for a pedestrian on the curb. Filtering these things out, that is the difficulty and what distinguishes the OEMs from one another.”

safety consists of three tiers. Crash resistance is the basis. One level up, there is preventive safety, i.e. systems that help avoid accidents by warning and eventually intervening. Comfort systems like adaptive cruise control are a layer on top of that. Whether it is the ACC or AEB that stops the car is irrelevant for safety. What counts, is that the car stops.”

“We are currently investigating whether adaptive cruise control and lane centring have negative safety effects.” Richard Schram

Don’t you think that ADAS make drivers too relaxed, even to the extent that they carelessly look at their smartphone because they have a “guardian angel”? “Not with AEB, because it reacts at the very last moment, hence in a very uncomfortable way. We are currently investigating whether adaptive cruise control and lane centring have negative safety effects. At Euro NCAP,

• Executive: VW Arteon • Large Off-Road: Volvo XC60 • Small Off-Road: VW T-Roc • Supermini: VW Polo • Small MPV: Opel/Vauxhall Crossland X

• Small Family Car: Subaru XV • Small Family Car: Subaru Impreza

FLEET EUROPE #100

Will Europe make AEB mandatory next year?

DOSSIER

FLEETS NEED TO FOCUS ON DRIVING DOWN FUEL CONSUMPTION Jonathan Manning

In the face of rising and unpredictable pump prices, the only viable solution to managing vehicle fleet budgets is to reduce fuel usage. A year of sharp increases in fuel prices has challenged the budgets of many fleets. Hybrid and electric vehicles may hog the headlines, but the highest daily expenditure for many fleets goes on fossil fuels and is likely to do so for many years to come.

Inflationary pressure continues

FLEET EUROPE #100

Looking at the year ahead, Paul Holland, chief commercial officer, FLEETCOR, said fuel prices are affected by a range of factors, but based on futures oil barrel prices he forecasts a ¤0.003/ litre increase. “However, this could change quite dramatically as a result of broader global pressures,” he said. “In addition to the cost of oil, the underlying assumption here is that US$ vs local currencies, margins oil refiners charge, local government fuel duty and VAT/ GST and the mark-up at retail fuel stations all remain unchanged.”

2017

2018

DIESEL (PPL1) PUMP PRICE

2018

The supply-demand equation over the past 12 months has swung firmly in favour of suppliers rather than consumers, with the average pump price across Europe for diesel rising to ¤1.37 per litre this year, from ¤1.19 per litre in 2017. Local taxation has amplified the effect of the increases in some key markets, such as France and Germany.

UNLEADED PETROL2 (PPL1) PUMP PRICE

2017

OPEC’s new long-term forecasts, published in September, sees demand for oil continuing to grow until at least 2040, with no expectation of reaching peak oil demand during that period. Petrochemicals, road transport (especially in non-OECD regions), and aviation are the primary sectors fuelling this demand, according to OPEC.

THE RISE OF ICE FUEL COST IS SIGNIFICANT

FRANCE

1.32

1.55

1.17

1.46

GERMANY

1.35

1.46

1.13

1.28

ITALY

1.48

1.64

1.33

1.52

SPAIN

1.17

1.33

1.05

1.23

1.29

1.45

1.31

1.50

EU AVERAGE

1.35

1.50

1.19

1.37

Source: European Commission Oil Bulletin (1) Price per litre in euro (2) Premium unleaded petrol, 95RON

To combat these inflationary pressures, Holland said fleet operators are looking for ways to lower their overall fuel spend by reducing consumption. This is increasingly achieved by the use of intelligent data collection, cross referencing data and management information gathered by advanced fuel cards. This data helps operators “to closely analyse their fleets, enabling them to detect vehicles that use fuel inefficiently, as well as identifying poor driving techniques that also ramps up unnecessary usage,” said Holland. With taxation on diesel likely to keep increasing the fuel component in fleet total cost of ownership (TCO),

inflationary pressures are likely to continue into 2019, which is influencing fleet vehicle choice, said Thierry Faure, head of sales International Key Accounts, ALD Automotive. “Fleet managers make their sourcing decisions primarily on TCO; the increase in diesel costs will contribute to making the TCO of gasoline and electric vehicles more competitive in comparison,” he said. “We can expect to see more gasoline registrations and a further acceleration in the development of EV and PHEV especially as there are more models offered by OEMs with many launched in 2019.”

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Great leap forward And 2018 marks another milestone, as AlphaCity takes a great leap forward in Business Mobility. No longer limited to BMW and Mini vehicles, it now offers keyless access to a comprehensive range of small cars, premium cars, LCVs and eLCVs from multiple makes – and seamless integration of EVs in a solution tailor-made for your company. Additional services such as charging cards can be added; and AlphaCity is already operating pure EV fleets for some of its customers. Based on the experience operating AlphaCity in Business Parks and hotels Alphabet further enhanced the services, so it is even more flexible. It can now also be used as a tool for Residential CarSharing or as a service offering replacement vehicles - among other options.

Private hire Corporate CarSharing as offered by AlphaCity can be more efficient and cost-effective than mobility alternatives such as rental cars and taxis; although it is a B2B solution, companies can also choose to open the shared cars up for private hire by their employees, with Alphabet providing the platform to process incoming payments. Talking about platforms: AlphaCity’s booking portal is now available in a new look and feel. Moreover AlphaCity is now integrated into the enhanced AlphaGuide app, where users can search for and book shared cars, and check or amend their bookings. AlphaGuide now is Alphabet’s centralised, streamlined and portable tool for both shared and lease cars.

AlphaCity comes with a 24/7 booking platform, but also with a round-theclock drivers hotline, keyless access to vehicles which are fully serviced and maintained by Alphabet for a hassle free experience. That’s why AlphaCity’s new offer is both wider and deeper than before: to enable even more corporate customers to enjoy the benefits of CarSharing via a solution that is uniquely fit for their requirements – saving them both time and money.

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More info www.alphabet.com/ corporatecarsharing

FLEET EUROPE #100

Launched in 2011, AlphaCity has amassed 24,000 corporate customers across 8 key European markets (*), establishing Alphabet as both an innovator and leader in Corporate CarSharing and fleet electrification.

DOSSIER

WHAT THE COST OF MONEY MEANS FOR TCO @Frank_J_Jacobs

The ‘cost of money’ is an important, but oft neglected aspect of TCO. However, as interest and exchange rates enter a period of increased volatility, the fleet industry needs to take a closer look.

In many ways, the financial world is still in a post-crisis mindset. That crisis being the Great Recession, which started in 2007. “Since then, central banks have significantly increased the money supply and reduced their prime interest rates,” says Bruno Colmant, Head of Macro Research at financial services specialist Degroof Petercam. As a result, “short- and long-term interest rates are at historically low levels. Inflation and economic growth remain subdued.” Mr Colmant expects interest rates to remain low for a couple of years at least, throughout the developed world. “This situation may be correlated with the ageing population in those countries, since the propensity to save money (instead of spending it on consumption) increases with age.”

3.5% by 2020

FLEET EUROPE #100

Pascal Serres, economist and founder/ CEO of mobility consultancy Moby-D, concurs. But he also sees movement of a significant nature, albeit mainly across the Atlantic: “Yes, we have been in a long period of low interest rates; but over the last 18 months, they have started going up in the US.” “This is partly the result of Trump’s victory, but also of the near-full employment enjoyed by the American economy. Higher interest rates combat the risk of inflation. They also suggest that the dollar will strengthen against the euro – because interest rate rises are not likely on this side of the pond.”

There is some movement in Europe, but not much. The interest rates across Europe continue to hover at near-zero values. On 2 August, the Bank of England raised its base rate from 0.50% to 0.75%. The LIBOR (the London Inter-bank Offered Rate), the primary benchmark for short-term interest rates around the world, for September 2018 is 2.84%, up from 2.1% in January, but a far cry from the 4.22% at the start of 2008. Following the 2008 recession, the Fed lowered its benchmark interest rate to 0.25%, where it stayed for several years. The US central bank has since gradually raised the rate, most recently on 26 September, from 2% to 2.25%. It signalled further increases, to 2.5% in December, 3% in 2019 and 3.5% in 2020. Mr Serres’s own prediction is in line with that path. “Of course, economists are as bad at forecasting as weathermen – but that will stop neither profession from making more predictions. I offer my prognosis with the required dose of humility.”

Fleet consequences An equally humble projection for the British pound: “It will continue to weaken because of Brexit. The Bank of England will increase rates in support of the currency.” So, in short: rates going up in the US but remaining stable throughout most of Europe. What consequences does that have for the fleet industry?

• Even a slight increase in interest rates in Europe will not have any significant impact on the Total Cost of Ownership for lease suppliers (and their corporate fleet customers).

• Even in the US, higher interest rates will not have a major impact on TCO, as they will correlate with higher levels of inflation. There will not be a change in cost significant enough to justify moving from leasing to purchasing.

• However,

the swing of the lease industry from big corporates and the middle segment to the consumer end of the market (i.e. private lease) will have consequences for interest rates. Not because of the base rate per se, but because this is an intrinsically riskier segment. “The cost of risk for consumer finance could be 200 basis points and more, while it is very low – around 20 basis points – for big corporates. That difference needs to be reflected in the rates leasing companies are charging,” says Mr Serres.

Crystal ball Another variable influencing corporate fleet policies – especially in a regional or global context – are the currency exchange rates. But “it is difficult to make a reasonable forecast,” says Mr Colmant. “Intuitively, I suspect that the US dollar may further depreciate against the euro, whereas the value of the British pound will depend on the as yet unknown outcome of Brexit.”

Currency volatility has a major impact on the cost of business for both OEMs and car lease players.

“Take for instance Volvos, produced in Sweden. They have the Swedish krona, but to all intents and purposes, that currency is firmly linked to the euro. Now, if the euro -and the kronadepreciate against the dollar, that’s a competitive advantage for the cars produced in Sweden that Volvo wants to sell in the US.”

“Inflation in Mexico is at 16%, in Brazil at 20% and in Turkey around 50%. In such a situation, it becomes very difficult to finance an asset. And that is having dramatic effects – especially on the Turkish fleet market, where a number of major fleet suppliers have gone bust, or are heading in that direction.”

Turkey is one of the so-called emerging economies that have recently experienced an economic backslide with dramatic consequences for lease companies and fleet oprators. Mexico and Brazil are in the same boat, also suffering from a major bout of inflation and currency depreciation.

Pascal Serres

EXCHANGE RATES : BRITISH POUNDS /US DOLLAR/TURKISH LIRA VS. EURO (2009-2018)

Economic backslide “Now, take a car produced in Turkey: up to 60% of its parts are imported from Europe. Because of the drop in value of the Turkish lira, that car becomes much more expensive to produce. In this case, there is no competitive advantage anymore.”

“Economists are as bad at forecasting as weathermen – but that will stop neither profession from making more predictions.”

BRITISH POUNDS

US DOLLAR

TURKISH LIRA

1.12

0.83

0.22

2017

1.17

0.95

0.27

2016

1.36

0.92

0.31

2015

1.29

0.83

0.35

2014

1.20

0.73

0.34

2013

1.23

0.77

0.43

2012

1.20

0.77

0.41

2011

1.18

0.76

0.49

2010

1.13

0.70

0.47

2009

1.05

0.71

0.46

2018

Source: XE.com

FLEET EUROPE #100

“We’re in crystal ball territory,” Mr. Serres agrees. That’s not to say that currency volatility can have a major impact on the cost of business for both vehicle manufacturers and vehicle lessors.

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DOSSIER

INSURANCE PREMIUMS RISING SHARPLY More expensive motor policies are leading fleets to take on higher levels of risk in order to cut costs. The combination of several elements is creating a perfect storm for fleet insurance premiums, driving up costs exponentially. Jonathan Manning

vulnerable positions on vehicles). Some countries have also experienced higher hourly labour rates in bodyshops. Moreover, settling personal injury claims has become more expensive, with courts awarding higher payouts for road traffic accident injuries. Some countries, such as Italy, have also seen claims by extended families for the trauma caused by an injury to one of their members.

Solvency issue

Hessel Kaastra leads the insurance division at LeasePlan.

FLEET EUROPE #100

With prices increasing by 50% to 100% in some markets over the past two years (the Netherlands and Poland have been particularly hard hit), fleet managers have no option but to adopt serious risk management strategies to keep costs under control. Shopping around for an alternative supplier is no longer the answer to keeping premiums down. Higher repair costs have pushed up the cost of claims, due to the increasing technologicial development of cars (with much of the most expensive new technology, such as cameras, lasers and sensors for autonomous emergency braking and lane assist, in

And the impact of 2016’s Basel II solvency regulations has really started to bite. These force insurers to maintain more capital to pay for claims, and oblige them to disclose the solvency of each line of business. One line of insurance can no longer cross-subsidise a loss making line, and nor can insurers invest premium income in high return areas to boost their revenues. The result is a need to make a profit from underwriting, which means premium income has to exceed the cost of claims. In a further blow to fleet budgets, the availability of three-year or even five-year fixed premium policies has gone, and when fleets do return to the market for a new policy at the end of the year they will find many fewer insurers competing for their business, said Eelco van de Wiel, managing director of fi insurance.

Under the Basel II solvency regulations, one line of insurance can no longer cross-subsidise a loss making line.

“In some markets there are only three players left when there used to be a dozen,” he said. The result is very much a seller’s market. “There is still a group of old-school fleet owners and leasing companies who buy insurance and leave the claims to the insurer. They are set for a shock when they renew their policies. Premium increases are very steep so a lot of fleet owners are looking for alternatives with their leasing company, insurer or broker to reduce their costs,” said van de Wiel.

Risk management and insurance can’t be dissociated, they are siamese twins within the fleet management strategy.

More progressive fleets, including leasing companies, are already establishing captive insurance operations or introducing a much higher deductible (excess). This self-insurance approach avoids insurance premium tax and cuts out much of the profit paid to an external insurer. It does, however, have to go hand-in-hand with a risk management programme to minimise the frequency and cost of accidents and claims. Eelco van de Wiel investigated 191 different risk management programmes and identified two common factors in successful schemes. Firstly, senior management supported the safety programme wholeheartedly and, secondly, drivers were made aware of the cost of their claims. “It’s not a telling off, but just a factual explanation of the cost of accidents, like a headmaster giving you a school report to show to your parents,” said van de Wiel. “Just by sharing this information fleets achieve a 15% to 30% reduction in claims costs.”

While driver training can be an effective measure, with more than 80% of accidents caused by a loss of concentration, van de Wiel said it’s important for employers to understand what causes that loss before investing in training. “Is the driver too busy, too stressed, does he have bad eyesight, is there a personality trait that explains more dangerous driving?” asked van de Wiel. It’s naturally easier for large fleets to spread the risk across hundreds or even thousands of vehicles, but the threshold for having sufficient vehicles to withstand the cost of individual claims is fluid, said Hessel Kaastra, managing director, LeasePlan Insurance. “If you talk about Own Damage, self-insurance could start paying off from around 500 units per country,” he said. “However, one should not only consider the companies’ capability to absorb certain losses, but also the administration that will come with managing risk in-house. Although accident management [negotiating repair

Eelco van de Wiel of fi insurance

“The most effective risk mitigant is to have a fleet policy in which drivers are charged a deductible if they cause an accident.” Hessel Kaastra

FLEET EUROPE #100

What about self-insurance

DOSSIER

costs with bodyshops and arranging for replacement vehicles] and claims handling [paying bills and recovering costs from at-fault third parties] can be outsourced, this will have a cost and still these outsourced services will need to be managed and supervised by the fleet or risk manager.” As a result, he sees fleets moving both ways in terms of attitude to risk, with some prepared to take on more risk in-house, and others returning to the outsourced risk of more traditional insurance policies. The most cost effective solution is simply to avoid accidents in the first place, and Hessel Kaastra is clear in identifying the safety policies that really work. “The single most effective risk mitigant is to have a fleet policy in which drivers are charged a deductible if they cause an accident,” he said.

PAY-AS-YOU-DRIVE INSURANCE New vehicle-tracking technology is paving the way for insurance policies that adjust their premiums according to the mileage driven. This is starting to appear in the retail and personal leasing markets, but not yet in the fleet sector where premiums are based on claims experience. Fleets considering this type of approach for their drivers should beware that individualising insurance premiums may mean two employees of equal seniority might face very different company car choices with their lease allowance if one drives more miles or has a higher claims record than the other.

“This creates awareness of the fact that the vehicle should be managed as if it were your own. The second best initiative is to identify drivers with multiple accidents and involve them in a discussion on safety and provide targeted training. Telematics is most effective when vehicles do not have dedicated drivers (e.g. delivery vans).

In such instances technology can provide a means of control when traditional ‘driver care’ is lacking.”

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FLEET EUROPE #100

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TOYOTA HYBRID SUVS

ARE EVERYTHING YOU NEED Over 20 years ago, Toyota pioneered the sports utility category with the RAV4, and shortly afterwards introduced the Hybrid powertrain in the ground breaking Prius. Both innovations have enjoyed increasing success over multiple generations.

Toyota RAV 4

In recent years more and more customers have traded up to the practical versatility of an SUV, with strong demand from both private and fleet channels.

Happily, Toyota has the perfect answer to ensure SUVs remain a highly desirable choice within fleet policies. A pair of stunning Hybrid SUVs - and a choice between the urban-chic of the Toyota C-HR or the go-anywhere spirit of RAV4. In both models, Toyota’s self-charging Hybrid technology produces CO2 emissions below equivalent diesel hatchback or saloons – even when tested under the more realistic WLTP regime. Both are quiet, powerful and highly fuel efficient – and can spend up to 50% of the time on electric power alone. The latest Toyota SUV’s benefit from years of experience in SUV design and Hybrid technology. Hybrid components are optimally located to provide a lower centre of gravity and near perfect weight distribution - delivering great

Toyota C-HR

driving dynamics and Hybrid power without compromise. In addition to automatic transmission, both are equipped with standard integrated advanced safety features, such as radar adaptive cruise control; all things considered, Toyota Hybrid SUVs tick all the boxes.

The Toyota C-HR is perfect for agile city driving whilst cutting a striking, sleek image in the rush-hour traffic. Its fourth generation 1.8L hybrid powertrain develops 122hp with CO2 emissions from just 106 g/km WLTP (86 g/km NEDC correlated).

The stylish new RAV4 optimises power and fuel efficiency in all driving situations thanks to the 2.5L Dynamic Force petrol Hybrid, available in two wheel drive with 218hp and CO2 from just 125 g/km WLTP (102 g/km NEDC correlated)*. With a refined, comfortable cabin and extensive load space, this robust SUV is a perfect choice.

Toyota is confident that the Toyota C-HR and RAV4 Hybrids deliver all of the pleasures of an SUV with none of the pitfalls: fuel efficient, cost effective and with low emissions, you can be sure there will always be an SUV for your car policy.

More info www.toyota-europe.com/business-customers toyotalexusbusinessplus@toyota-europe.com https://www.linkedin.com/company/toyota-businessplus-&-lexus-businessplus/

*estimated figures pending final homologation

FLEET EUROPE #100

But, with an increasing number of companies introducing CO2 emission caps for their fleets, together with the uncertainty associated with the changes from NEDC to WLTP, the SUV segment has come under pressure.

DOSSIER

PREDICT TO PREVENT COSTS @DieterQuartier

Now that vehicles are able tell their owner what’s wrong with them in real time, maintenance and repair can be better scheduled and managed. Telematics is critical to enabling predictive maintenance. Predictive maintenance can be an invaluable asset for fleet managers who are looking to avoid costs related to vehicle repairs. “Though coupling artificial intelligence and machine learning algorithms with our 2B engine data points collected per day, we can predict when certain parts are ready to be serviced,” explains Edward Kulperger, VicePresident, Business Development at telematics firm Geotab. “The TCO analysis is on the verge of substantial change. Fleet managers require transparency and control over their operating costs in order to identify required saving potentials. A very promising development is the increasing penetration of telematics and connectivity applications that enable predictive maintenance,” says Sebastian Pfeifle, Partner in Strategy & Operations and Head of the Global Auto Finance Team at Deloitte.

Telematics can be invaluable to avoid costs related to vehicle repairs.

Show me the money

FLEET EUROPE #100

How much you can save by using telematics-based predictive maintenance? “That is a difficult number to quantify, but we are at the tip of the iceberg regarding the ROI of predictive maintenance,” says Mr Kulperger. “At the moment, a partner and fleet management company in the Netherlands integrates our engine data to direct vehicles in need to a repair shop with the hopes of minimising downtime - all while efficiently managing the process and supporting a positive customer experience.” In 2016 and 2017, Deloitte together with a large Australian client developed a predictive maintenance/telematics application. “The impact on variable and semi-variable vehicle costs (e.g. cost for accidents, maintenance, and fuel) were significant, resulting in increased savings over the implementation period,” highlights Mr

Pfeifle. “In total, Deloitte’s fleet transformation programme realised $2.3m in benefits, representing 30% of total fleet expenses of the client.”

Electric and autonomous Soon, the general automotive trends towards connected, autonomous, shared and electric vehicles will increase the relevance of predictive maintenance. “While the depreciation on the vehicle value of combustion engines is around 50% in the first three years, this could increase to up to two thirds for electric vehicles. Cost control over single components is unavoidable. This is especially valid for battery packs,” explains Mr. Pfeifle. “One envisions the day when an autonomous vehicle will never have to be repaired while on the road due to a maintenance issue. Between the data within the connected vehicle, and the

‘self-diagnosing’ AI built into the vehicle itself, the future car will likely be able to automatically connect to an ecosystem that maintains an optimal service level,” Mr. Kulperger reckons.

HOW PREDICTIVE MAINTENANCE CAN SAVE MONEY • Increased control over scheduling and inventory drives down downtime.

• Losses caused by deferred maintenance are reduced.

• Advanced analytics provide insights into the correlation between seemingly unrelated vehicle components.

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DOSSIER

TAXATION MAKES THE TCO PICTURE MORE COMPLEX Erwin Boumans

Knowing that complex taxation can significantly influence the Total Cost of Ownership of the average company car, it is no surprise that the changes in car taxation always have fleet managers asking questions about their fleets and what to do. The taxation elements related to company cars and vehicle fleets When determining the TCO different taxes need to be considered. The registration taxes and (periodic) circulation or road taxes are relevant, but the possible non-deductible input VAT and the limitation on deductibility for income tax purposes are more important. As some or all of these taxation elements are progressively related to CO2 emissions, it led to a clear switch in behaviour by fleet managers.

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Some of the tax benefits introduced and already applied in several countries in Europe in order to support the sale of zero or low emission vehicles, could have a positive impact on the total cost of ownership, taking into account of course that the pure acquisition costs (purchase or lease price) of these environmentally friendlier vehicles may be higher at first sight. However, the increased taxation of more polluting vehicles potentially increased the TCO for already existing fleet cars.

The forecast: what elements are likely going to increase and their impact FISCAL DEDUCTIBILITY OF CAR COSTS In countries where important changes occurred to the income taxation

system, like Belgium, the impact of the fiscal deductibility of vehicles will of course have a big impact. Nevertheless, the fiscal deductability of all car-related costs will remain unchanged for companies for 2018 and 2019. From 2020 onwards though, the impact of the changes will be seen as the company car cost deduction will need to be determined based on a (new) formula: fiscal deductibility of new and already acquired vehicles = 120% â&#x20AC;&#x201C; (0.5% x coefficient x CO2/km). Thereby, the fiscal deductibility must be a value between 50% and 100%. From 0 to 40 g/km CO2 the maximum of 100% deductibility is maintained, from 140g onwards, the percentage will be 50%. Cars with emissions over 200g CO2/km will be exceptions to the general rule with a fiscal deductibility set at 40%. Employers in Belgium will also need to consider other changes (in respect to social security and benefit in kind taxation) which may impact the TCO of the company cars put at the disposal of their employees.

IMPACT?

These new rules only apply to vehicles ordered from 1 January 2018 onwards. These changes are another step

towards the greenification of company car fleets, but they will not be sufficient. Even with this new calculation method, diesel cars will still be more interesting as the use of the CO2 emissions is the principal criterium with only a coefficient to adapt the outcome. So this correction is expected to remain insufficient for a total switch towards alternative fuels. CAR REGISTRATION AND CIRCULATION TAXES AND RELATED COSTS Some other elements are also likely to increase in Europe. In particular, we will notice an increase of registration tax and annual circulation tax tariffs. For example in France, the supplemental tax for vehicles with high CO2 emissions has been increased. In Germany, a new test procedure for CO2 emissions can result in significantly higher CO2 based vehicle taxes. In Poland, the rates for tax on transportation means will change. In the United Kingdom, the rates of vehicle excise duties will vary and the rates to calculate benefit in kind for the private use of a company car will be amended. In Denmark, the tax due on private use of company cars will increase. The introduction of more and more (Ultra) Low Emission Zones and/or charges for using more polluting vehicles in certain areas will need to be taken into consideration when determining the TCO of a fleet. Alternative

The introduction of more and more (Ultra) Low Emission Zones and charges for using more polluting vehicles will need to be taken into consideration when determining the TCO. transport will also need to receive attention, as part of the workforce is no longer interested in having its “own” company car.

will potentially need to abandon the concept of TCO and evolve into mobility managers, who will need to work with the Total Cost of Mobility.

Erwin Boumans is Partner Tax and Legal Services

All of this will of course lead to additional complications, so fleet managers

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DOSSIER

DIGITISATION FACILITATES STRATEGIC FLEET MANAGEMENT Benjamin Uyttebroeck

@uytteb

The current and often demand-driven trend towards flexible mobility services is made possible by technological developments and digitisation which lead to new products and services but also change the fleet management profession fundamentally.

LeasePlan CDO Michel Alsemgeest: “LeasePlan has several solutions which help fleet managers collect information that not only allows them to know when the car should be brought in for maintenance but also enables them to increase the mobility of their users and reduce the downtime of their fleet.” “Digitisation also increases efficiency in dealing with all partners along the value chain, from insurance up to tyre providers and fitting chains down to the interfaces to order and terminate fuel cards, to manage fuel costs as well as the entire dealer communication,” said Vinzenz Pflanz, Senior Vice President Group Sales, Sixt. Another example is Sixt’s project to set up a fully digitised system to deliver replacement cars in case of a breakdown within sixty minutes wherever you are in Europe, or to combine various tools of transportation by making use of the Sixt Chauffeured Services. Here the client is carried to the next rental station. This service will be available on demand via the Sixt App very soon in some countries.

FLEET EUROPE #100

Strategic role Fundamentally, digitisation changes the fleet manager’s role from an operational one to a more strategic one. “By not having a lot of operational work anymore, the fleet manager can define strategies to optimise the fleet which we can then execute on their behalf,” said Mr Pflanz.

used cars. The company also uses the latest technology to achieve digital cost levels by automating processes using machine learning, artificial intelligence and robotics.

Relationship business “At the end of the day, fleet management is still a relationship business,” said Mr Alsemgeest. Even though digitisation and big data can help his company improve its customer service, people are ultimately responsible for creating and maintaining personal connections. Mr Pflanz agreed: “We still need human capacity to deliver premium services. This will still be the case in the future.”

Data quality Digitised processes produce vast quantities of personal and non-personal data, which need to be managed responsibly to ensure safety of data. This is what Chief Data Officer Xavier Delmotte does at ALD Automotive. “We’re dealing with customer data and we don’t want anyone to have open access to them.” Above all, it’s about data quality. Whatever you want to achieve with data is only possible if you can trust your data, said Mr Delmotte.

Michel Alsemgeest, LeasePlan CDO: “LeasePlan uses machine learning, artificial intelligence and robotics to automate processes.”

FLEET MANAGER’S TIPS • Keep in mind your customer’s individual needs, there is no one-size-fits-all approach.

• Understand what data your organisation needs before starting mining and exporting data.

• Don’t do all at once, but follow a qualitative step by step approach.

• Be flexible enough to deliver the data that is needed to steer and optimise.

LeasePlan has leveraged digitisation to develop its CarNext.com business, a digital marketplace for high quality

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ALL-ELECTRIC KIA E-NIRO DEBUTS AT PARIS MOTOR SHOW The Kia Niro Hybrid and Plug-in Hybrid get a new companion. At the Paris Motor Show, Kia has unveiled the Kia e-Niro, an all-electric variant that completes the eco-friendly Niro crossover range. It combines efficient electric power with the space and practicality of a crossover. The e-Niro will go on sale at the end of 2018. The new Kia e-Niro combines an all-electric, zero-emissions powertrain with crossover practicality, intelligent packaging and an eye-catching design. It has a long-distance driving range of up to 485 kilometres, making it one of the most capable electric vehicles on sale anywhere in the world. The e-Niro occupies a unique position in the global market as an all-electric crossover alongside the existing Hybrid and Plug-in Hybrid Niro variants of which more than 200,000 have already been sold since the Niro’s introduction in 2016 (including more than 65,000 in Europe).

485-kilometre range from next-generation powertrain Matching its sporty crossover design, the e-Niro offers buyers long-distance, zero-emissions driving and enjoyable performance with a next-generation electric vehicle powertrain. A high-capacity 64kWh lithium-polymer battery pack affords a driving range of up to 485 kilometres on a single charge with zero emissions. Plugged into a 100kW fast charger, it takes 54 minutes to recharge the e-Niro’s battery to 80%. Buyers will also be able to specify an optional 39.2kWh lithium-polymer battery pack, with a range of up to 300 kilometres from a single charge. Power is provided to the front wheels through a 150kW (204ps) motor, pro-

The Kia e-Niro features a futuristic and aerodynamic tiger-nose grille with an integrated charging port.

ducing 395Nm torque from a standstill, for acceleration from 0 to 100kph in just 7.8 seconds. The battery pack is located low down in the body, beneath the boot floor, creating a centre of gravity more akin to that of a sedan or a hatchback, ensuring maximum stability and driving enjoyment on winding roads.

Advanced Driver Assistance Systems to support convenience and safety

autonomous driving technology which tracks vehicles in front of the car in traffic and detects road markings to keep the e-Niro in its lane on the motorway. The system controls acceleration, braking and steering according to the behaviour of the vehicles in front, using external sensors to maintain a safe distance. Lane Following Assist operates between 0 and 130kph.

Matching the forward-looking nature of its powertrain, the e-Niro offers drivers a range of Kia’s ‘Advanced Driver Assistance Systems’, supporting the driver in various environments and scenarios to mitigate the risk of a collision. Available active safety systems include Forward Collision Warning with Forward Collision-Avoidance Assist, Smart Cruise Control with Intelligent Stop & Go, and Lane Following Assist. Lane Following Assist is a ‘Level Two’

More info www.kia.com/eu/business

FLEET EUROPE #100

The e-Niro is Kia’s second globally-sold electric vehicle after the Soul EV. The new model made its European debut at the 2018 Paris Motor Show and will go on sale in Europe by the end of 2018.

DOSSIER

DRIVER BEHAVIOUR DICTATES FLEET COSTS Jonathan Manning

Improving drivers’ driving style and efficiency can have a huge effect in lowering TCO. Improving fleet driver behaviour can deliver cost benefits far in excess of the obvious savings in accident costs. The way drivers behave behind the wheel and treat their company car or van has a direct impact on as much as 47% of the total cost of ownership (TCO) of their vehicle. Insurance, fuel and service maintenance and repair account for almost half the running costs of a vehicle; while fleet management, depreciation and finance interest account for 53% of TCO, according to research published by fleet risk and driver training company, DriveTech.

FLEET EUROPE #100

It analysed telematics data from 2,167 vans belonging to the same fleet, investigating the number and frequency of incidents of harsh acceleration, cornering and speeding. The results showed a direct correlation with key areas of expenditure, including tyre wear, fuel use and accidents. Chris Thornton, fleet director of DriveTech, said: “Everyone has this information, but it takes time to put it all together and find that there are some really strong relationships between driving behaviour and TCO.” For example, the higher incidence of maximum throttle (acceleration),

Telematics data on driving style, such as the frequency of harsh acceleration and braking, can identify higher risk drivers.

the greater the number of insurance claims. Across the fleet, drivers with fewer than 100 incidents of maximum throttle per 100km driven had no collision claims, while those who recorded more than 175 incidents of maximum throttle typically had at least two claims. “The research shows that more ‘maximum throttle’ events during each 100km of driving can increase the average claim count from 0.32 to 0.69 per driver over two years - or twice as many – while alongside this the average claim cost increases [by] 2.8 times,” said the report by DriveTech. “This is where tailored driver education comes in. It can change behaviours of those drivers that are most likely to be costing the business a lot, and therefore make savings,” said DriveTech. “With experienced and professional drivers, crashes are more often caused by making poor driving decisions because the driver’s attitude to driving, and behaviour while driving, need changing.” The telematics data also revealed how drivers who recorded more than one incident of harsh cornering per 100km experienced much greater tyre wear, and increased the cost of tyres by 73%, compared to drivers who recorded fewer than 0.25 incidents of harsh cornering per 100km. “Harsh acceleration and deceleration costs directly impacted tyre spend negatively,” said DriveTech.

The range in total maintenance spend was even wider – 160% between lowest and highest – when correlated against maximum throttle events per 100km. And the TCO implications are even more significant when it comes to fuel use, with drivers who revved their engines excessively more than three times per 100km having a fuel cost per mile 166% higher than their colleagues who rarely (one per 100km) revved excessively. The pence per mile fuel cost between best and worst in terms of harsh acceleration was 64%. The use of telematics data speeds up the process of identifying higher risk drivers, but other solutions are available if vehicle tracking systems are not installed. “Telematics allows you to identify the drivers who are likely to be costing you money at the end of week one, rather than waiting until the end of the year when the bills come in,” said Thornton. “But at its most basic a check of driving licences for penalty points [for speeding offences], or an online driver risk assessment can reveal the attitudes of drivers.” In pure cash terms, transforming poor performing drivers into average drivers delivers the biggest savings in crash costs, followed by fuel savings. “You get the best outcomes when you target your interventions,” said Thornton.

FLEET EUROPE #100

DOSSIER

THE MOBILITY TRANSFORMATION @Frank_J_Jacobs

How do you reorient your fleet philosophy from TCO to TCM? You measure the Mobility Profile of your employees and respond to their actual needs. And how do you do that? Four experts offer advice.

“A move from Total Cost of Ownership to Total Cost of Mobility implies that companies no longer assume that mobility is linked solely to a vehicle, be it purchased or leased. The idea is to look at the cost and management of employee mobility, regardless of the means,” explains Lisa Grunditz (Global Company Car Benefits Survey Lead at Willis Towers Watson).

Societal trends Reflecting broader societal trends – flexibility and choice, individual well-being and environmental sustainability – the TCM approach aims to offer a range of mobility options and combinations. But which ones? Work itself can become more flexible, Ms Grunditz points out, with home-working, satellite offices and flexible work schedules taking the edge off the all-or-nothing aspect of the classic 9-to-5 office environment. But to complete the transformation, employee mobility profiling is essential. “Take for example employees in cities like Paris: they may prefer to work from home two days a week and have a ride-hailing or taxi budget, combined with an e-bike, rather than a company car of the average benchmark make and model.”

FLEET EUROPE #100

Silo thinking The most important mental leap to be made by fleet managers – in order to become mobility managers – is to abandon so-called ‘silo thinking’, says Marco Nederveen (Head of Business Development at XXImo). “In real life,

we see examples of travellers staying within the companies’ policy in relation to the hotel budget, but at the same time spending significant amounts in euros to reach that hotel.” “Another example we often see: due to the lack of proper tools and/or policy within companies, reimbursement of parking costs at Schiphol Airport for ¤45 per day is not an issue, while at the same time a ¤5 public transport ticket cannot be booked and reimbursed.” Trust your employees to come up with better solutions – for example by offering them the option to select their own mix of transport modes via a mobility budget, suggests Mr Nederveen. “Change is hard, so it’s better not just to talk about options, but to show your employees how they actually work. Offer pilot projects for alternative mobility solutions, and you’ll see behaviours change.” One important caveat: “In our experience, employees are most satisfied if they are offered mobility alternatives in addition to company cars. If you limit their options – by taking away the car, for example – you’ll have less happy employees.”

Perk cars Developing that point, Pascal Serres (CEO, Moby-D) says it’s a mistake to see TCO and TCM as mutually exclusive: “TCO is about making the company car as affordable as possible. TCM is about improving the mobility of all employees. The former should be part of the latter.”

Even if that involves a radical rethink of the concept ‘company car’: “Mobility is one of the most expensive costs of any company, and that applies especially to perk cars – in my opinion, one of the most inefficient ways to move employees around. They will disappear in the future – or at least, they should.” To be replaced by what? “In the new paradigm, there will still be cars. But only the right cars at the right time and place – via carsharing, carpooling and similar formulas. That’s why a lot of lease companies right now are already developing carsharing schemes.” It’s cheaper than taxis, says Pascal Serres. And cheaper than ‘classic’ company cars: “Car sacrifice schemes, whereby you give up a car for a smaller one, and either a bigger salary or a mobility budget, are ultimately good for corporate mobility, for mobility in general, and for the environment. Even though not all CEOs will be happy to give up their fancy cars”.

The idea behind mobility profiling should be: don’t track cars – track movement. And that requires data and data insight.

So what’s the actual, practical best way to measure employee mobility profiles? “Leasing and fleet management companies are beginning to come up with sophisticated tools for measurement,” says Lukas Neckermann (CEO, Neckermann Strategic Advisors). “The essential instrument is gathering much broader travel data, which includes driving distances, parking opportunities, the usage of rental vehicles, taxis and ridehailing, etcetera. This data can then produce clear guidance, say, to electrify 25% of the fleet. Or offer corporate carsharing, or even mobility cards to a specific subset of the staff.” However, most such employee surveys are still missing an important part of the picture. “Really, it’s the most advanced and progressive companies in which you see the fleet or mobility manager aligned, or sharing responsibility with the travel manager. This is a holistic approach, which also gives you an overview of the usage – and cost – of rental cars, parking, taxis, flights, hotels.”

Some examples of successful mobility profiling exercises:

• “A

London-based company with a sales organisation had up to 40 people driving to and parking at Heathrow airport in their company cars at any given Monday morning. They’re now moving those people back and forth in 8 to 10 shuttle buses.”

• “Instead

of relying on a variety of taxis, rental cars and ridehailing at various destinations, one company struck a corporate deal with Uber. That entire cost now arrives in one collective bill.”

The idea behind each exercise and behind mobility profiling as such, is: “Don’t track cars – track movement instead.” If the result requires a more pro-active approach, and a bigger budget, that may be for the better: “Yes, as a fleet manager, your first responsibility is to manage TCO. But you’re also charged with the health and safety of your employees, and their happiness and loyalty. Even more important: better mobility for the employees means a better process flow – and increased efficiency for your organisation as a whole,” Lukas Neckermann concludes.

• “A

manufacturer needs to organise the movement of tens of thousands of employees every day. Only relying on cars would be insane. They’re using hundreds of buses, they have a bike-sharing scheme on campus and are considering a pilot with autonomous shuttles.”

FLEET EUROPE #100

Essential instrument

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HIGH-TECH FIAT-CHRYSLER CROSSOVERS OFFER A TASTE OF TOMORROW With a whole host of the latest technological innovations and super-frugal new engines, Fiat-Chrysler Automobiles’ stunning new Crossover range has a model to suit every business driver - from the sales department to the boardroom.

The exciting new 500x Combining the unmistakable retro legacy of the much-loved original Fiat 500 with state-of-the-art engineering and technology has proved to be a winning formula for Fiat. The fastest-growing sector of the SUV market is the compact segment and since its launch in 2014, the Fiat 500X has been among the market-leaders. And now, with a choice of super-frugal new petrol engines and the latest tech kit, the new 500X is more desirable and connected than ever before. The extensively revised 2019 range features a whole range of cutting-edge innovations inside and out: from new interiors to smart driver assist technology and a user-friendly touchscreen dashboard display.

New engines The New 500X is the first Fiat model to feature the innovative FireFly threeand four-cylinder Turbo engines – delivering 20 per cent better fuel efficiency from the super-light aluminium power units.

FLEET EUROPE #100

Fully compliant with the new Euro 6/D-TEMP standard, the new FireFly engine range includes a three-cylinder 1-litre and a four-cylinder 1.3-litre unit plus the reliable 110 HP 1.6 E-Torq. The diesel engine line-up of 1.3, 1.6 and 2.0 litre power units have also been tuned to comply with the latest Euro 6/D-TEMP emissions standard, making them the cleanest on the market without compromising performance.

New 500X

Revised exteriors Unmistakably a member of the 500 family, with all the retro charm of the original, the new 500X has evolved in many different areas. Powerful new headlights are complemented by LED signature strips around the sleek new light clusters. The new Urban version features all-new front and rear bumper design, while the Cross and City Cross have new-look protective skid plates to reassert their more muscular attitude.

At the heart of this hi-tech evolution is a 7-inch HD touchscreen which integrates the multiple connected services: navigation, communications, safety and entertainment systems in one user-friendly mission control panel. And with a choice of no fewer than SEVEN stylish Italian interior options, there’s a 500X to suit every individual taste.

Futuristic interiors While the cheeky lines and bold styling of the 500X are rooted in the 20th century, the extensively revised interiors are most definitely 21st century. For 2019, the cockpit has been comprehensively reworked to incorporate a new instrument cluster, steering wheel and a whole suite of driver assist and connected technology.

More info

www.fiat.com

www.jeep.com

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NEW JEEP RANGE This timeless icon of off-road ability and rugged utility may be something of an unconventional choice for business drivers, but conformity no longer commands a premium in today’s entrepreneurial era and driving a Jeep is the ultimate statement of individuality.

Jeep Renegade

Jeep Wrangler

Rugged build quality, unique styling and unrivalled off-road ability have always been the hallmarks of the Jeep brand and for 2019, these timeless Jeep characteristics will be enhanced by a bold new approach to efficiency and connected technologies. The Renegade’s combination of distinctive styling, all-round practicality and off-road versatility – all underpinned by the reassurance of the Jeep brand – has triggered strong growth in FCA’s business sales over the last five years. In May 2018, Renegade was the best-selling Jeep model in the European market with sales up 19.1 per cent compared with the same month in 2017. The significantly revised Renegade range now benefits from a choice of lightweight and super-frugal petrol turbo engines which comply with the latest emissions standards. The Renegade’s diesel engine options have also been refined to meet the new Euro 6/D-TEMP rules without compromising performance. Jeep’s legendary off-road performance is further enhanced with a suite of high-tech driver safety and training aids and new touchscreen displays delivers more connectivity, information and entertainment than ever before.

Jeep Cherokee This innovative new module allows the Renegade to connect with both Apple and Google connected services like music, social media and traffic info to provide seamless mobile connectivity for the networked generation. And the high-tech new Renegade is now one of the smartest vehicles on the road thanks to the comprehensive suite of safety features now available – including Lane Departure Warning, Traffic Sign Recognition, Adaptive Cruise control and Active Emergency Braking.

Cherokee With two diesel engines and a new petrol turbo engine, plus a host of technological and style improvements, the 2019 Cherokee is the smartest mid-sized Jeep to date. The latest incarnation of Jeep’s best-selling all-rounder burnishes its back-country credentials by combining the brawn of rugged construction and peerless off-road performance with sophisticated new on-board control systems. New interiors offer more space and greater refinement and a whole battery

of connected systems enhance the driving experience in both town and city. A choice of touchscreen controls puts a huge range of safety, entertainment and navigation services at the driver’s disposal. Functions include hands-free calling, navigation and textto-talk features for a safe, comfortable and connected driving experience. Other Live services include infotainment: internet music and radio, news and information and navigation with live traffic information.

Wrangler The 2019 model is the most capable Wrangler ever, courtesy of unmatched technical innovation, which includes two new active four-wheel drive systems and a battery of connected systems and services all controlled via a smart new HD touchscreen console. Also new for 2019 are a frugal new turbo petrol engine and a battery of new connectivity options. Available in three existing trim levels: Sport, Sahara and Rubicon, the fourth generation Jeep Wrangler delivers a more modern design yet retains the authenticity and open-air freedom of the original. In fact, you could say that in keeping true to its origins, while evolving to meet the expectations of a constantly connected planet, the new 2019 Jeep range is Born to be wild but bred to be smart.

FLEET EUROPE #100

Renegade

BUSINESS

EUROPE WELCOMES A NEW CAR LEASE PLAYER @CarolineThonnon & @StevenSchoefs

Japan-based company Hitachi Capital Vehicle has existed for more than 40 years and has a solid footprint in the UK and more recently also in the Netherlands and Poland. Now Hitachi Capital Vehicle Solutions is ready to expand further in Europe.

they will ride that storm without being diverted by short-term events.”

How many vehicles does Hitachi Capital operate today?

Nick Salkeld, advisor to the Supervisory Board at Hitachi Capital Vehicle Solutions and Simon Oliphant, head of Hitachi Capital Vehicle Solutions Strategy Division.

FLEET EUROPE #100

Simon Oliphant, head of Hitachi Capital Vehicle Solutions Strategy Division, and Nick Salkeld, advisor to the Supervisory Board, discuss the full service leasing company’s ambitions. “In 2015 our Japanese parents said they’d like to expand their vehicle solutions business beyond the UK,” says Simon Oliphant. “Hitachi has five main regions, Japan being the domestic market, the Americas, Asia, China and Europe, which was really only the UK. I spent the first year doing research, I looked at 48 countries, narrowed it down to 24, visited 18 and prioritised a list of countries.”

S.O.: “We’ve got about 240,000 vehicles under some form of leasing across all five regions. In Europe, we’ve just under 100,000 full-service leasing units in the UK, the Netherlands and Poland. Japan has a very well-developed full-service leasing company, called Hitachi Capital Auto Lease, with just under 100,000 units, and then we’ve got a relatively small full-service leasing company in Singapore. The US is a very different market to Europe. There’s no company car market or culture there, so people tend to privately lease their cars while the big fleet providers mainly provide vans and trucks. For international customers, though, a presence in the US is important.”

Why does Hitachi want to expand?

Where will you expand internationally?

S.O.: “Japan has an ageing, declining population, so if companies like Hitachi want to continue to expand they’ve got to look outside Japan for international and global expansion. Hitachi has got the financial stability and strength to do it.”

S.O.: “Europe is the priority. Customers want us to be able to support them across Europe. We believe we need to be in at least 10 countries to do that. We are in the UK, the Netherlands and Poland, and we plan to be in Germany, Austria, Switzerland, Belgium, Luxembourg, France, Italy, Spain, maybe Portugal. That gives us a credible European offering and mirrors our customers’ presence as well.”

How would you describe the Japanese approach to investment? S.O.: “Japanese companies take a longterm view and stick to their strategy. They are not diverted by short-term events. Trust and long-term relationships are important to them. Even if the market gets disrupted Japanese companies will stick to their strategy,

How quickly will your plans materialise? S.O.: “By the end of our financial year, in March 2019, we hope to have a presence in Germany.

In March

2019 we hope

to have a presence in

Germany N.S.: “That, of course, then gives us the opportunity to expand into Austria and Switzerland.

Will your expansion be based on acquisition? S.O.: “We’re reasonably flexible, but it’s clear we will always be the majority shareholder and the controlling shareholder. Until today we felt we had to do it through merger and acquisition,

because in mature markets, like the Netherlands and Germany, to do it from scratch would take five to seven years and we didn’t have that time. We didn’t have any management or expertise in Europe. We found an opportunity in the Netherlands, Noordlease, and acquired it in early 2017. That was quickly followed up by the acquisition of Lease Visie, which give us scale in the Netherlands.” N.S.: “Our acquisition approach is to look for companies and their people who have been very successful in their own markets, where they’ve been able to compete with a variety of competitors in tough market environments.”

What are your core products?

What are your core products? N.S.: “Long-term rental, short-term rental, flexi-rent – if you’re serious about being a mobility service provider you should be product agnostic. It’s what’s best for the customer that matters, the finance is just a tool. The future for mobility is to be able to offer a vehicle for anything from one day to four or five years and even beyond. Vehicle solutions are very much at the start of the provision of mobility solutions. There’s no reason why companies such as ourselves cannot offer these types of products to all employees within these companies, which widens the market for us and consolidates the relationship with our main customers.”

S.O.: “Full-service leasing, but if you’re a vehicle solutions business you can’t say it can only be this. If, in certain markets, it’s an advantage to do finance lease then we use finance lease so long as it’s coupled with other services.”

S UMMI T 2018

28 November 2018 - Barcelona (Spain)

WHAT’S NEXT IN MOBILITY MANAGEMENT? More information on forum.fleeteurope.com Brought to you by

FOR INTERNATIONAL 31 FLEET & MOBILITY LEADERS

FLEET EUROPE #100

NEW

BUSINESS

SOFICO: CRACKING THE CODE TO THE FUTURE Jonathan Manning

As it celebrates its 30th anniversary, Sofico is preparing for a rollercoaster ride where new technology, products and services revolutionise business mobility. Chess players and software specialists have something in common, it seems; success depends on planning several moves ahead. This approach has helped Sofico survive and thrive for three decades, and as the fleet management software company approaches its 30th anniversary celebrations at the end of October, the future is very much on its mind.

Changes to standard business model

FLEET EUROPE #100

Having grown from four employees and one client in Belgium in 1988 to a business with 250 people, offices in eight countries and customers in 22 nations today, Sofico finds itself at the vanguard of the mobility movement. If the original purpose of fleet management software was to manage assets as efficiently as possible in order to deliver the lowest possible operating cost, its current mission is to use new technology as a catalyst to help its clients create the best travel experience for their own customers. These days, the standard business model of ‘one driver, one vehicle’ faces a serious challenge from a plethora of alternatives that include car sharing, peer-to-peer car hire, ride hailing and bike hire, all integrated with existing public transport. Within the next 30 years even the concept of a ‘driver’ is likely to be overtaken by technological advances that will see driverless vehicles on the road. “The leasing industry has long been relatively conservative,

Gémar Hompes, Managing Director, Sofico

but over the last five years its discussions have moved to be all about mobility and usage, and that is accelerating,” said Gémar Hompes, managing director of Sofico. “It’s why we have this focus on innovation and growth; we want to be the right partner for those companies that will be there to manage those connected and autonomous vehicles.”

Being agile is key Innovation and growth have been part of Sofico’s DNA from the outset. In its very early years the company rapidly expanded from Belgium to the Netherlands then Australia, moves which ensured that flexibility was written into its Miles solutions’ code in order to accommodate local market differences. That same flexibility also ensures it can react swiftly to new trends, such as the blurring of lines between fleet and retail solutions, and between owned and shared vehicles, as well as the integration of multiple modes of transport into a single mobility solution. Hompes said forward-thinking suppliers are already testing the market with new mobility services. “We are seeing a lot of experiments,” he said. “For example, we are setting up a mobility portal for one of our customers that is based on mobility budget management for different modes of travel, like bikes and buses and trains. And with another customer we are creating a product for peer-topeer car sharing.”

Piet Maes, CTO, Sofico

Piet Maes, CTO, Sofico, added that it’s too early to forecast whether a single business model for vehicle usage will emerge. Private vehicle ownership will not immediately disappear tomorrow, he said, and nor is the brave new world of mobility all about personal travel in shared transport. “We will still have custom and utility vehicles for specific and specialist usages,” said Maes. And as for the transition to this brave new world, “being able to adapt and possessing hybrid capabilities will be key. Focusing on just one line of business will become a thing of the past.”

Rollercoaster The one constant is that fleet-owners, whether manufacturers, leasing companies or individual businesses will still have to manage vehicles throughout their working life. Moreover, the development of increasingly connected vehicles will provide even more granular data for analysis and efficient fleet management. “But to be successful in this transformed marketplace will require hybrid, adaptable and scalable systems that are capable of managing the high volume of very diverse lower-value transactions proficiently,” said Maes. “Technology is a great enabler but it never stays still. For 30 years Sofico has primed itself for a future in which core fleet management plays a central role, supporting a host of innovations, new products, mobility services and technology. The next 30 years will be a rollercoaster ride of unimaginable change that will be as challenging as it is thrilling.”

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MAKE FLEET ELECTRIFICATION

AN INFORMED DECISION Electrification is no longer a concept, it’s happening now. Sales of Electric Vehicles are booming as they offer more range and become TCO-competitive, especially in the premium SUV segment. At the same time, they ensure long-term mobility in cities while boosting your company’s image. But what are the building blocks of a successful e-strategy? Today, there is an Electric Vehicle (EV) for every type of employee and every type of business. Depending on the driver profile, you can opt for Hybrid Electric Vehicles (HEV), Plug-in Hybrid Electric Vehicles (PHEV) or Battery Electric Vehicles (BEV), i.e. all-electric vehicles. As Plug-in Hybrid Electric Vehicles (PHEVs), the Range Rover and Range Rover Sport P400e combine a highly efficient petrol engine with a lithium-ion battery pack to offer ultra-low CO2 emissions and a zero-emission range in EV mode of up to 51km. That means they will be allowed to enter today’s and tomorrow’s Low Emission Zones. The all-electric Jaguar I-PACE is a premium performance SUV that offers a best-in-class WLTP range of up to 470km on a single charge thanks to its 90-kWh battery. That is more than enough for most people’s weekly commute. With more than 5,000 DC fast chargers already in European cities and along motorways, customers can comfortably drive long distances, too.

FLEET EUROPE #100

TCO competitive In many countries and cities, tax incentives make a BEV competitive versus equivalent non-electric cars. But there are more elements than just fiscal benefits to make the TCO story add up. A BEV can save up to 50 percent on service and maintenance, 40 percent on utilisation costs and 40 percent on taxation vs. a traditional ICE model.

an EV market, the higher the resale prices. With demand increasing over the next years, EV residual values will continue to evolve in a positive way to a position ahead of diesel/petrol models.

Making e-life feasible A growing number of large corporations are actively pursuing plans to include more EVs in their fleets. A key factor in a successful EV policy is making electric life as easy as possible. Jaguar Land Rover can support Fleet customers all along the EV journey – from charging at home for employees, charging at work with workplace charging offers through best-in-class local partners, to fleet financing.

Are you unsure why you should electrify your fleet? Perhaps you are convinced, but don’t know where to start? Watch the webinar developed with Jaguar Land Rover and gain valuable insights in how to deploy a successful e-strategy while getting all stakeholders aboard.

More info To find out more about the all-electric Jaguar I-PACE, visit jaguar.com/I-PACE

Another major element in the total cost of ownership (TCO) calculation is residual value. Research from automotive consultancies shows that the more mature

BUSINESS

“150,000 PRIVATE LEASE CONTRACTS IN 2019” @StevenSchoefs

ALD Automotive is having an excellent 2018, says John Saffrett, Chief Operating Officer of the Société Générale daughter. “We have excellent geographic coverage, we’re competitive on pricing and we have a high level of service - a combination that is increasingly compelling for large multinationals and has helped to strengthen our position as the European leader.” But ALD Automotive is not blind to private leasing either.

Most of your business is B2B, yet private lease and used-car lease are B2C-oriented. Do you ever see both channels becoming equally important for you? “Our core corporate business retains a significant growth potential in the years to come, so we’re not in any rush to switch our main focus to private lease. But private lease volumes are growing year on year and bring us a new type of client. Our ambition for 2019 is 150,000 vehicles via private lease, and we’re confident that we’ll hit that target with the new channels we’re bringing online now. After that – who knows?”

Is there any area where you had expected more growth? “Everyone in the industry is investing heavily in the mobility products and services of the future. Clients are interested, but few actually take the leap and commit to them for a variety of reasons.” “So via our client advisory board, we’re encouraging a number of key clients to experiment in mobility with us. We create the solution with them, in a way that provides benefits to them and learning for both of us. We’ll focus more

on this type of real-world experiments with clients in 2019.”

How do you evaluate the concept of Mobility as a Service? “Everyone is rightly getting excited about it but it’s been over-hyped a bit, by all of us. Existing businesses are trying to develop mobility offers and position themselves as mobility players – but they already have a business to run which as I mentioned earlier still has significant growth potential. On the other hand, new entrants and tech companies try to create value for investors to buy into – one that will only become profitable a few years down the line and where the focus is not on the profitability of the business model today. And one of the main challenges for these new businesses is they don’t have sufficient customer volume to scale the business and test the model properly.” “Creating a dual-stream business clearly is a challenge – but lease companies are well placed to develop these innovative solutions: we already have a client base that’s interested.” “Right now, we’re still focused on the core, car-centric product. It’s a bit crazy to assume that we’re all going to move to subscriptions in one or two years’ time. What we are seeing, however, is demands for more flexibility in contracts, more pay-as-you-go concepts, more

John Saffrett, COO at ALD: “ALD values innovation. And for me innovation means ‘making things better than they were’. Creating new experiences for clients.”

freedom to terminate contracts easily and switch between cars within the contract.” “Everybody is moving away from fixed contracts with fixed terms to more flexible underlying contracts. That’s why we’re making sure to build those capabilities into all of our products. Look at any large corporate tender right now: it will be pretty demanding on flexibility.”

And will those flexible products also be profitable? “It’s a challenge in the short term to add flexibility without sacrificing some of the revenue from the traditional models but it can be done as we have proved with products such as ALD Choice in the Netherlands and Ricaricar in Italy. But right now, the focus is on developing the capabilities, learning about clients and how they use these services, and adapting the products accordingly.”

How do you see leasing and fleet management evolve in 2019? “There’s still significant potential for

FLEET EUROPE #100

“The key challenge is having the right product and the right digital capability to deliver private lease efficiently and effectively”, John Saffrett says. “And we’ve achieved that, so it’s been a good year in that respect too.”

BUSINESS

growth, even in mature markets in Western Europe. In some markets, regulations are driving people away from company cars – but they’re moving into private lease. So lease companies must make sure they have the product to catch those people including more structured schemes for companies to manage this trend where appropriate.” “There will be a growing focus on digital to increase the efficiency of our services and the engagement with our clients. Traditionally, lease companies touch drivers 10-15 times during the life of a contract. Creating more touch points will create more opportunities to give drivers a great customer experience.”

Do you think the B2B, B2C and B2E channels will eventually merge? “You’ve got private individuals liking the idea of a single monthly payment for their car – something corporates bought into 30, 40 years ago. That’s fantastic for leasing companies, because fundamentally, the products are very similar.” “What’s different, is that these retail customers have higher demands - they expect a seamless, simple, digital experience. The challenge for our industry is consistently improving on the digital interface with the clients – via an app, portal or other means 24/7.” “You’ll end up seeing an offer or package that will be badged differently in the different channels, offering a variety of experiences but the underlying product will be largely the same.”

Where do you see mobility going next?

FLEET EUROPE #100

“There is no universal definition of mobility, so it’s very important to define what you want to offer. At ALD Automotive, we’ve identified five capabilities – all progressing at different speeds.” “Firstly, expertise in digital and connected mobility is absolutely mandatory. We’ve invested significantly in this area over the last few years and we recently announced a number of partnerships with companies such as Microsoft and Vinli to help us build more muscle here. Secondly, we need to offer travel and payment capabilities to our clients. A third capability is flexibility,

which we are now building into our products. Fourth is about developing mobility products to support electrification and products such as ALD Switch where you can take a contract on an electric vehicle but with a number of days of traditional ICE capability to meet those occasional long range journeys is key to helping our clients learn about the usage and appropriateness of EV for their fleets. And finally, we’ve identified a number of areas where Mobility-as-aService (MaaS) applies and hence our partnership with MaaS Global to learn more and work alongside one of the leaders in this space.” “The most relevant evolutions today are digital and connected mobility – creating a great digital experience for end users and using connected data to create value for clients. But with the increase in new product, electrification will really accelerate next year, and we see increasing interest in corporate and EV based car-sharing as one of the first MaaS applications.”

Which innovative solutions are you working on now? “This year, we’ve focused on some core capacities. On our digital capability, for instance: we’ve developed a fully digital private lease platform in the UK including credit check and e-signature capabilities and we’re now deploying that in more and more countries. You will have seen our recent launch of the platform with Boursorama in France where this platform is helping to accelerate our capabilities in this area. We’re also developing products based on the connected car platform. The first step is mastering data acquisition. The second step is looking for patterns in the data and offering value to your clients based on that data. For example, by offering a much more pro-active service to drivers for maintenance, or when looking for parking spaces and the partnership with Vinli, who are a world leader in this space will definitely accelerate our development here.”

But you’re not quite there yet? “We are getting there but there is so much more to do. But via our strategic alliance with Microsoft, we’re developing a true interactive mobility product in the Netherlands that will be a significant step in the right direction. It’s due to be launched soon.”

Turning to geography, ALD Automotive has strong ambitions in Latin America. How is that going? “We had the ambition to be number one there, and today we are. We’ll build on that further. ALD Automotive is very happy with our partnerships in Latin America, which provide coverage across the entire region. We’re constantly looking to expand our geographic coverage but won’t do crazy deals just for the sake of planting a flag somewhere. The same for Europe, where we have the largest fleet. We’ll only expand when it’s the right thing to do, for us and our clients.”

ALD Automotive has been in Turkey for many years. How are the economic troubles there affecting your business? “We decided about a year ago only to write contracts on terms that we were comfortable with. As that volatility has increased, we see most international providers have followed our example. We’re now seeing some partners and international key accounts coming back to work with us.” “This shows the validity of our model, in which vehicle leasing is backed by a financial institution. That means we are better positioned to ride out economic volatility. It also shows our commitment to entering markets to support our customers in both good times and bad.”

An important market for you is the U.S., where you have a partnership with Wheels Inc. “They’re a great partner for us. We’re always looking for opportunities to collaborate closely, sharing knowledge and experience. For example, we’ve launched a safety product together, and a global fleet reporting platform, aimed at alliance customers.”

ENABLING SMART MOBILITY WITH ACTIONABLE VEHICLE DATA

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INNOVATION

PARIS S’EV-EILLE @DieterQuartier

Even though many OEMs declined the Parisian invitation this year, the Mondial de l’Automobile electrified the public. Home player PSA is finally boarding the (PH)EV train, while most visitors focus on their classics. Here are 10 highlights to remember.

PHEV

THE (HYBRID) ELECTRICS

C5 AIRCROSS 1 CITROËN HYBRID CONCEPT

As the fourth and final member of the PSA SUV quadruplets, the Citroën C5 Aircross gains access to innovations like a suspension with Progressive Hydraulic Cushions. It is also the first Citroën to come in a plug-in hybrid version, previewed by this concept.

DS3 CROSSBACK E-TENSE

The DS3 Crossback replaces the successful DS3, but as its suffix indicates, it moves into the crossover zone. This French Audi Q2 challenger comes with a plethora of ADAS and a digital key to make sharing easier. Last but not least: the E-Tense electric version features a 50 kWh-battery with a 300 km range.

KIA E-NIRO

The GS makes way for the Toyota Camry-based ES – indeed, a frontwheel drive E-segment saloon with a hybrid powertrain. Interesting novelty: the Pre-Collision system can recognise cyclists in the dark thanks to a set of highly advanced sensors.

1. Citroën C5 Aircross Hybrid Concept

5 PEUGEOT 508 SW HYBRID

A double premiere for Peugeot: the estate version of its revamped 508 and its very first plug-in hybrid powertrain. A 132-kW 1.6 petrol engine is combined with an 80-kW electric motor fed by a 11.8-kWh battery, which gives it a 40-km all-electric range.

TOYOTA COROLLA TOURING SPORTS

2. DS3 Crossback E-Tense

The Auris hands the torch back to the Corolla, the name of a car that has topped the global sales charts for decades. The estate version has a longer wheelbase for more cabin space. For the first time Toyota offers two hybrid powertrains, an economic and a more dynamic one.

FLEET EUROPE #100

After the Soul, the Niro is Kia’s second fully electric vehicle. Just like its cousin, the Hyundai Kona Electric, the e-Niro can travel 485 km on a single charge thanks to its 64-kWh battery. The entry-level e-Niro contents itself with 39.2 kWh and 320 km (WLTP).

4 LEXUS ES

3. Kia e-Niro

THE CLASSICS

1 AUDI Q3

The compact crossover gains access to technologies until now the privilege of the A6. Thanks to swarm intelligence cars warn each other of hazardous spots such as fog or black ice, report current speed limits and indicate roadside parking availability.

1. Audi Q3

2 BMW 3 SERIES

4. Lexus ES

Once again, BMWâ&#x20AC;&#x2122;s core fleet model moves up the ladder, both in terms of dimensions and product substance. You can talk to it through an integrated assistant, enjoy the best in the automotive infotainment industry and still indulge in sheer driving pleasure.

2. BMW 3 series

KADJAR 3 RENAULT PHASE 2

The facelifted Kadjar features a redesigned front, enhanced materials in the cabin and a bigger display for the infotainment system. Under the bonnet there is a brand-new 1.3 TCe petrol engine. The diesels now carry the Blue prefix to indicate they are Euro 6d-temp compliant.

This is the Spanish interpretation of the Skoda Kodiaq/VW Tiguan Allspace. Power comes from the brand-new 1.5 TSI or the reengineered 2.0 TDI. ADAS such as Lane and Front Assist including bicycle and pedestrian detection will be standard.

6. Toyota Corolla Touring Sports

3. Renault Kadjar phase 2

4. Seat Tarraco

FLEET EUROPE #100

5. Peugeot 508 SW Hybrid

4 SEAT TARRACO

SMART MOBILITY

SMART, SUSTAINABLE, SEXY OSLO @DieterQuartier

Norway’s political, academic, cultural and financial heart has put itself on the map as Europe’s EV capital. But it’s more than that. It has implemented a comprehensive urban ecology programme to make the city a home for a sustainable urban community.

CO2

AIR QUALITY IMPROVEMENT

EMISSIONS

61%

Today of Oslo’s CO2 emissions is produced by traffic

Promoting zero-emission vehicles by providing

€

• Tax break s

CARS

Easy for people to live and work in the city without using a car by • Improving public transport

• Good provision for

-50%

greenhouse gas emissions by

2030

Climate neutral by

2050

(relative to the 1991 level)

• 2020: No greenhouse gas emissions

pedestrians and cyclists

• Strict norms for the

provision of parking

• Free passage

through the toll ring

• At least 100 extra

public charging stations per year, both in multi-storey car parks and in the streets

FLEET EUROPE #100

from stationary energy use • 2030: Emissions from waste management reduced by at least 80% • 2030: Greenhouse gas emissions from transport reduced by at least 50%

• Free parking

• Good coordination

between rail, sea and road transport for a maximum of freight transported by rail or ship

-20% of cars

PUBLIC TRANSPORT

ELECTRIC VEHICLE

60 NOK =

cost of passing the ring toll both with a diesel car during the rush hour

Increase of the proportion of journeys by public transport relative to the proportion by car by: • Expanding the public transport system with new routes • Improving public transport at night and at the

0 NOK = price for electric or hydrogen-powered vehicles

57%

proportion of (PH)EVs in Norway’s new car sales

17%

weekends

proportion of EVs in Norway’s current fleet

27,000

parking spaces in the city

• Reducing journey times for public transport with priority to buses and trams

including

1,300

Fossil Free public transport by 2020 • 2020: All public transport in the region powered only

with a charger

by renewable energy

Due to the exponential growth in (PH)EV sales, the charging point to car ratio went from 1 charger for 4 cars to 1 charger for 10 cars.

12% 20%

Why Norwegians buy EVs?

77%

64% for the

for the lower operating costs

environmental aspect

62%

for the free toll roads

FOSSIL DIESEL

66%

BIODIESEL BIOGAS (produced by waste)

60% 2025

of the bus fleet electric by

2025: Norway will ban all sales of diesel and petrol cars If all cars in Norway (2.6 million) will be electric only 6% of the national hydropower production

• Since 2012: Test of fuel cell buses running on hydrogen by Ruter (regional transport operator)

• Ruter will also introduce renewable solutions on its boat services on the Oslo fjord

WASTE GENERATION

Walking and cycling are encouraged • Safe and attractive routes • Accessibility and safety for pedestrians,

-25% by 2020

for instance by ensuring high standards of maintenance in winter

by: • Making inhabitants and businesses aware of their consumption levels

Special thanks to Silje Bareksten, Head of Smart City, Oslo Business Region and Sture Portvik, Manager Electric Mobility, City of Oslo.

• Promoting re-use and recycling of materials • Encouraging the expansion of home composting of

FLEET EUROPE #100

garden waste

REMARKETING

IT IS FINALLY TIME FOR USED-CAR LEASING @Frank_J_Jacobs

At the end of September, Alphabet Belgium launched Used Car Leasing – allowing corporates to add nearly-new vehicles to their fleet at lower rates. It’s one of a multiplying range of used-vehicle leasing offers, both in Europe and North America. Is it finally time for the formula to break through? Used-car leasing has some history, notably in the US. However, given the small differential in leasing prices, customers have always preferred new lease vehicles. But now, a more price-conscious customer base, plus advances in technology that allow for online tailoring of the offer, are combining to give the formula a renewed boost.

New generation

FLEET EUROPE #100

One example of successful specialisation in used-car leasing is a recent US startup called Fair. The company is growing fast by offering used-car leases online to a new generation of customers. Fair’s tool shows consumers only cars they can afford on a monthly basis. In Europe, used-car leasing has been embraced by a number of lease companies, who are using it as an additional channel to process their own end-oflease vehicles. It’s a timely move, dovetailing with evolutions in technology and behaviour: up to 90% of prospective used-car buyers research vehicles online, and 30% of all customers make their purchasing decision online.

Digital marketplace Biggest example to date is CarNext.

The used-car lease model gives leasing companies the opportunity to better spread the risk on residual values and is attractive for private and business customers seeking fast availability and attractive pricing. com, a pan-European digital marketplace for high-quality used cars launched in 2017 by LeasePlan. Customers have access to LeasePlan’s off-lease vehicles via purchase, subscription or lease. “With 250,000 vehicles coming out of our Car-as-a-Service business each year – mainly from corporate fleets LeasePlan is the number one reseller of high-quality 3- to 4-year-old used cars in Europe,” says Ewout van Jarwaarde, Managing Director at CarNext.com. “Because we’ve typically been the sole owner of the car, we can guarantee the history and quality of the car and can therefore determine the right price for the car.”

300% growth As with new vehicles, the used-vehicle market across Europe is undergoing a paradigmatic shift, from ownership to usership, and eventually subscription, according to Mr Van Jarwaarde. CarNext.com’s used-car leasing business grew by 300% in the second quarter of 2018. The initial demand for the service – which the company is dubbing Used-Cars-as-a-Service

(or UCAAS), is coming in particular from SMEs and private lease customers. “With CarNext.com, we’re making services developed in our primary market available for the used-car market,” says Mr Van Jarwaarde.

USED-CAR LEASING: FOUR TAKEAWAYS • The used-vehicle business has a bad rap – and that’s a business opportunity for transparent used-vehicle leases.

• Pickier customers, technological advances and a flood of offlease vehicles are all factors in the emerging success of the formula.

• For lease companies, used-car leasing can be an interesting additional channel to repurpose used vehicles.

• While growth appears to be strong, experts warn that the credit risk is greater than with standard corporate leases.

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HYUNDAI: IN THE FAST LANE TO LEAD ECO-MOBILITY Hyundai is the leader in future mobility. As the only manufacturer to offer four different electric powertrains, the company brings affordable eco-mobility to the roads. Since 2009, the company has launched six electrified models and will introduce 18 more globally by 2025.

Hyundai IONIQ Hybrid, Plug-in Hybrid and full-electric - a unique lineup of three different electric powertrains.

With the IONIQ line-up we have entered completely new territory. Launched in 2016, it is the first car to offer three different electrified powertrains in one body type. Today, Hyundai is at the forefront of offering affordable cars with alternative powertrains. Over the last year, the IONIQ has found a home in the cityscape of Amsterdam and is highly appreciated by the locals for its use as a car sharing model. We are currently working intensively on developing our new generation of green cars. In 2018, we introduced the Kona Electric with its outstanding range

of around 500 km*. It has been recognized as a real game changer, as it is the first fully electric subcompact SUV on the European market. Another important feature is the fuel cell. As early as 2013, our first fuel cell electric vehicle went into series production - no other carmaker had ever done that before. The ix35 Fuel Cell is currently sold in 18 countries, and we’ve found particular success in Europe, where the car counts for over 70 per cent of the fuel cell market. At CES 2018, Hyundai launched the New Generation fuel cell vehicle NEXO, our technological flagship. The NEXO provides a driving range of 666 km*, 35 per cent more than its predecessor, and an increased fuel cell efficiency of up to an additional 60 percent. By 2025, we will launch an industry-record total of 18 new models, including hybrid, plug-in hybrid, purely battery electric and fuel cell electric vehicles. We believe that eco-cars offer us a route into fleet business. We currently view

*based on WLTP regulations.

the long ranges, short refuelling and short downtimes offered by fuel cell as the main advantages – namely for taxi, bus or LCV fleets. Amongst others, we have partnered with the “hype” taxi fleet in Paris, the largest fuel cell taxi fleet worldwide, with 60 ix35 FCEV. Another promising eco-technology, especially for fleets, is the mild hybrid powertrain system. Our new Tucson is the first Hyundai model to offer a highly efficient mild hybrid 48 V powertrain, significantly reducing fuel consumption.

More info Sustainable Mobility Meet Hyundai Motor’s eco car line-up

FLEET EUROPE #100

The future belongs to green technologies. This also applies to any kind of mobility solution. Hyundai Motors had already begun to develop green cars as early as 1979, and in 2011 we entered mass-production. In Europe, the ix35 Fuel Cell was our first eco-car. Today, we are the only manufacturer to offer a choice of four alternative powertrains. That makes us one of the largest vehicle manufacturers with the broadest model range in the eco segment.

REMARKETING

“THE FULL VALUE CHAIN IS MOVING ONLINE” Benjamin Uyttebroeck

@uytteb

You know eBay as the online auction site where you can buy and sell just about anything. But eBay also owns some of the largest online classified sites in the world. Alexander Prinssen, Director Motors, Global B2B Sales & Marketing Strategy eBay Classifieds Group, answered three questions.

Read our full interview with Alexander Prinssen on www.fleeteurope.com.

1. How does eBay stand out in the field of online remarketing?

2. What can be eBay’s role in the fleet market?

3. How do you see the future for online car classifieds?

We have a global footprint with very strong vibrancy and over 400 million Motors related visits per month worldwide. This traffic enables us to help car dealers in developing their online sales channels and to reach millions of potential buyers.

Today, an increasing number of leasing companies see ways to optimise their resale values by using new remarketing channels such as online or their own stationary retail stores. We offer our expertise in this field in connecting them with consumers on a global level.

Ultimately, the whole buying journey will be digitised, including financing and insuring the vehicle. Buying new cars will move online, too, but more progress is needed to help consumers experience the look and feel of a car and to make car buying easier and more convenient than it is today.

A C O M M O N V O I C E T O W A R D S T H E M A R K E T, PA R T N E R S A N D S U P P L I E R S

The Car Remarketing Association Europe (CARA)

established by key players in the used car market industry The members of the association are from Europe and consist of:

The two main topics we are working on are:

• car manufacturers in the Automotive Industry

1. Support ‘correct mileage reading’, this is a hot item, heavily supported by the European Parliament and local Governments.

• fleet Management & Car Leasing Companies FLEET EUROPE #100

• used Car Auction Companies

2. ‘Transport solution throughout Europe’, transporting vehicles throughout

• used Car Data Providers

Europe can be a risk, especially on VAT. To minimize the risk, we are

• used Car Service Providers

working with relevant partners on a harmonize standard solution.

To get more information about the association or to become a member, please visit our website www.cara-europe.org 44

ADVERTORIAL

CONCEDED EDITORIAL SPACE

FLEET ELECTRIFICATION BY VOLKSWAGEN The whole automotive industry is undergoing major change processes and a lot of new players are entering the stage of mobility - enlarging the range of product and service portfolios and creating innovative mobility offers related to e-mobility. possible and most comprehensive consulting regarding future mobility requirements and personalized support for our customers about the integration of e-vehicles into their fleets. The consulting itself will focus on the five main pillars:

Volkswagen’s planned electric line-up. about the battery health after some years? How to adjust car policies for a smooth integration of e-vehicles? How to handle benefits in kind? And what kind of charging infrastructure will I have to set up for my pool cars? An important and hot topic raising a lot of challenging questions. That’s exactly what our MEB Fleet Consulting is targeting at.

Complex conditions

Reduce complexity by agile consulting

In order to reduce CO2 footprints we all need to integrate alternative powertrains into our fleets. This much is clear. But which vehicles from a fleet can be replaced by electric vehicles? Will the range be sufficient for the users? What

At the end of 2017 we have started the development of a holistic and unique mobility consulting approach in which our customers as well as our markets have been involved from the very beginning. The concept provides the earliest

Since we have the goal to always provide the latest information and material as a basis for customer individual solutions, the consulting will consist of several meetings supplemented with analyses phases. This new kind of agile cooperation with our customers and markets will help us to install a new quality into our business partnerships which will enable all involved parties not only to keep step with the fast changes of mobility requirements but even to shape the future of mobility.

More info

VOLKSWAGEN MEB FLEET CONSULTING

Contact the Volkswagen MEB Fleet Consultants:

INFORMATION MEETING

“THE BIG PICTURE” OF E-MOBILITY

DRIVING PROFILE BASED CONSULTING

• Introduction I.D. family

•

E-mobility trends

•

Clarification of requirements

•

Fleet analysis and identification of BEV potential based on mobility profiles

•

Scheduling of consulting meetings

Info on I.D. family, charging, policies, driving profiles, mobility services, TCO

•

Telematics & fleet management services

•

Needs analysis

•

Policy consulting

•

Planning of concrete setup

•

TCO consulting

•

Charging infrastructure consulting

sebastian.riffel@volkswagen.de ruediger.pahlmann1@volkswagen.de denis.hrdina@volkswagen.de

Sales Europe MEB Fleet Consulting Team

iulia.sterpu@volkswagen.de

FLEET EUROPE #100

As part of this transformation process, we as Volkswagen are planning to be the world’s leading provider of e-vehicles in 2025. Therefore we are about to launch a new product family – based on an innovative platform (Modularer E-Antriebs Baukasten – MEB) completely designed around the battery and starting with the series version of the I.D. at the beginning of 2020.

• Fleet analyses with focus on users’ driving profiles • Charging consultancy with focus on how to setup charging infrastructure onsite companies’ premises • Integration of all relevant topics from leasing to taxation • Policy consulting focusing on necessary adjustments • Supplementary mobility offers to perfectly fulfill users’ requirements

EXPERT

A FLEET MANAGER’S JOB USED TO BE SO EASY Philippe Noubel

Only a couple of years ago, a fleet manager’s job was easy. It was about optimising costs and ensuring procurement efficiency. Today, with the advent of new technology, new regulations, new CSR concerns, that’s a far cry. At the same time, the job has never been more exciting.

20 years ago Fleet policy optimisation means cost optimisation. In terms of company car needs, the goal is to minimise costs including rent payments, fuel costs and taxes. Procurement efficiency is key and the technical solution is straightforward in a vast majority of countries: diesel cars are the solution.

10 years ago Philippe Noubel, Expert, Fleet Europe

Today, fleet managers are expected to live by CSR policies that limit previously generous car policies. Large diesel SUVs, for instance, are no longer considered to be politically correct.

FLEET EUROPE #100

A car policy is a very visible and sensitive part of any CSR policy, which is why companies aim to be best in class in this domain. Hence the need for fleet managers to contribute to issues such as the global fight against pollution and climate change. Such requests have become more or less standard in large companies but coming up with an adequate answer is an increasingly complicated matter. Why has it become this difficult? What explains the huge increase in complexity? Let’s have a look at fleet management history.

CO2 emissions dictate the car-related CSR policies. Good news: diesel cars are efficient on fuel. As a consequence, they are efficient on CO2 emissions, they are warmly appreciated on the used-car markets and are given preferential treatment in terms of taxation. Diesel cars are still the solution. If you want to follow the hype you can complete your fleet with some hybrid cars – that is, if you are not really interested in their real consumption or CO2 emissions when used on highways.

Today What are our main concerns to protect our planet? It’s still about CO2 emissions, but there is more. Pollution levels in cities are an increasingly controversial topic as more people are aware of the need to protect our health. Moreover, CO2 emissions aren’t only about pollution, it’s also about global warming.

Two concerns and two targets which are not only different, but which can also be at odds. Diesel is good from a point of view of CO2 emissions but questionable in terms of NOX emissions and fine particles. Petrol is less efficient than diesel for CO2 emissions but generally better for NOX and seems to be questionable for fine particles when equipped with direct injection. Hybrids could be the answer. They offer petrol cars but with low consumption. Nevertheless, the vehicle’s usage needs to be compatible with the technology (mainly for short distances) and the driver’s behaviour must be adapted: a plug-in hybrid which is never plugged in is nothing more than a heavy petrol car. And more weight equals more consumption and more emissions. Our politicians in Europe are heavily promoting EV cars by lowering accepted CO2 levels for new cars. Is this the solution? Or is it once again a political strategy we will heavily regret in the future? After all, diesel was once strongly promoted, too, only to face local bans today. Is battery technology the right solution for the future or is it only a transitional proposal, while we wait for hydrogen to deliver its promises of a real and scalable solution? And there’s more. How should we deal with the new WLTP calculations, new IFRS16 accounting rules etc.? As a fleet

Being a fleet manager today requires assistance from expert advisors.

Optimistic But fleet managers have an optimistic disposition. Their job may have become more challenging, they also consider it to be so much more exciting. Here’s why. A fleet manager now has to discuss the main targets with his company’s stakeholders. It’s through a debate with Finance, Human Resources, CSR departments and Procurement that they are able to suggest options to the top management. It’s the opportunity to transform a technical burden into a true corporate policy on very serious topics, based on questions like these:

• What positioning are you asking me to arbitrate?

• Is

cost efficiency still the main criterium?

• Do we want to keep our options open so we can benefit from the real efficiency of each potential solution as new information becomes available? One thing is certain: there is no universal solution. The solution is a mix, including hybrids, EVs and diesel cars. The latter remain efficient for long-distance runners, especially Euro 6 compliant models that have seen considerable improvements in NOx and fine particle emissions.

Flexible The solution won’t be set in stone: what is true today can be inadequate tomorrow. The solution has to agile and flexible so it can be adapted quickly, to new opportunities, knowledge and technical improvements.

ing efficiency or pollution (NOx and fine particles)?

• Can we commit on using hybrid cars adequately so as to optimise their potential efficiency?

• Do we want to introduce a number of EVs even if they are not cost-effective?

reassess the car policy

targets

• Chase

adequate information to detect trends and catch differences between the truth and opinions or commercial and political statements

• Accept that what’s true today can be invalidated tomorrow Increased complexity but also the volatility of what is true will probably mean that various actors will appear to offer their help. This may be an opportunity for fleet managers to challenge their own views, to verify he has taken everything into account in accordance with his company’s targets. A new challenge arises: how to find and select those advisors?

If you want to define a solution that can be considered as adequate, you need to consider the following:

• Formalise the targets for the company’s car policy

• Do we want to prioritise global warm-

• Periodically

• Define

the KPIs which will be used to manage the implementation and efficiency of the solution according to the targets

• Provide

periodical reporting in this domain so you can uphold solutions which have already been implemented or adapt them – be agile

“My job used to be so easy… but how exciting it is now!” Philippe Noubel

FLEET EUROPE #100

manager, you may gasp: “Oh my God, my job used to be so easy five years ago…”

MANAGEMENT

BE READY FOR THE NEW STAKEHOLDER MATRIX Yves Helven

“Who takes care of the fleet?” A simple question that is becoming increasingly difficult to answer. One thing is certain: just like the cars, fleet management moves around.

There are many curves in the evolution of stakeholder management within corporate fleets. From a single procurement/finance or HR category, the car programmes have started to touch functional departments and have been linked and unlinked from categories such as facility management and travel. Technology and innovation are now again pushing the corporate client to reflect about the identity of the car fleet or, as we’ve starting to call it, mobility.

1 PROCUREMENT

FLEET EUROPE #100

The indirect procurement specialists have a preference for commodity buying. Based on well defined specs, prices are asked and negotiated, savings are calculated and the contract is good to go. Unfortunately, these days of easy sourcing are long gone. Leasing companies are essentially service providers and relationships between client and supplier will continue for 3 to 5 years after the last car is ordered. This is an issue for companies who have a procurement division without dedicated contract managers; once the deal is signed, the Master Lease Agreement is thrown over the procurement fence and lands on the desk of whomever is closest, HR, Operations, Line Managers… This results often in irregular or unconsolidated KPI/SLA measurement and worse, insufficient cost control.

Those clients who have implemented contract management for the car category, understand better the mechanics and revenue models of leasing companies. ROEs are not calculated based on upfront pricing, but over the total duration of the lease contract, including recalculations and end of contract recharges and settlement. Intelligently sourcing for leasing contracts therefore means understanding the service levels of the provider and leveraging the risks in contract recalculation (hence the existence of matrix contracts) and end of contract costs (solutions such as minor damage waivers have been created to support procurement’s efforts to control sundry costs). An even bigger challenge is waiting around the corner. Due to mobility’s immature supply chain and the lack of aggregators, implementing mobility solutions today implies plugging in and out multiple providers for the next couple of years, until the consolidation and harmonisation of the mobility sector takes place.

Europe’s financial crises have created a strong role for the finance people in fleet management. Businesses have become even more careful with regards to operational expenditure and have become completely averse to capital expenditure. It’s not a surprise that the leasing industry has been doing well, although it is exposed to a greater risk on residual values than ever before. Factors like dieselgate, decreasing popularity of station wagons and corresponding increase of popularity of SUVs, electric, hybrid… on top of a second-hand market that is difficult to control, make it hard for the leaseco’s RV committees to be right all the time. In other words, leasing contracts have a strong financial and risk aspect, both for client and supplier. The tensions and interactions between the 2 parties call for better planning and understanding, similar to conversations that a bank would have with its customers. Regardless, leasing will be on balance very soon. CFOs have been asking their fleet managers if there’s a need to switch from lease to purchase – a simple calculation, especially for cash-rich clients, were it not for the fact that services are excluded from the on-balance reporting and that no fleet client today has the RV expertise that a leasing company has.

The transformation to Mobility Management includes an increased stakeholder management.

The capex or on-balance averse CFO has ears for mobility solutions, which seem, from a tax and accounting point of view, simple to treat. No balance pressure, no vehicle taxations, just a simple service contract with high deductibility and easy recharge principles for private usage. Low risk, in other words, but more operational hassle. A 1-1 draw in the football match between mobility and client.

3 HR

Everyone who has ever worked in a leasing company has a soft spot for HR fleet managers. Much more focused on service delivery, recruitment/retention parameters and eager to be the first to implement innovations, the human resources car specialists are easy to build a relationship with. Discussions about value precede price negotiations; consequently, suppliers are being assessed in a different way by HR people than by procurement people. And this is the catch. HR will measure the quality of their suppliers through user feedback, which is difficult to control. The overall service delivery level is not measured by averaging “highs” and “lows”, but only by the “lows”. Compare it with your mobile phone operator: if everything works well for 99 days but goes wrong on the 100th day, you’ll switch suppliers right away. Building a relationship of lasting trust and focusing on the service levels is always essential, but perhaps even more with HR counterparts. In an improving economic climate, the recruitment/retention aspect of mobility becomes more important, especially in sectors where the right employees are hard to find. From a compensation and benefits perspective, the HR professionals need to assemble packages that are competitive enough to counter what peer companies are offering, but at the same time individual enough to differentiate from them. They expect their suppliers to assist them with data and recommendations. HR people also know that workforce is becoming more mobile. The future will bring more freelancers, flexible workers and remote workers. This evolution will also impact the mobility needs of a corporate client and requires more flexible solutions than the one employeeone car approach. In other words, 2-1 for mobility.

FLEET EUROPE #100

2 FINANCE

26 - 28 NOVEMBER

barcelona SPAIN

on forum.fleeteurope.com

WHAT’S ON THE AGENDA? MONDAY 26 NOVEMBER • Expert Meeting Latin America NEW

• Global Fleet Managers Club

TUESDAY 27 NOVEMBER • International Fleet Managers Institute (IFMI) • Fleet Europe Remarketing Forum & Awards Ceremony NEW

• EV Test-drive

NEW

• Geotab Mobility Connect

NEW

• Official Opening of the Fleet Europe Village

WEDNESDAY 28 NOVEMBER • Fleet Europe Forum • Fleet Europe Village NEW

• Smart Mobility Talks • Fleet Europe Awards Ceremony • Fleet Europe Gala Dinner

NEW

• Annual Industry Afterparty, hosted by Sixt

LEARN! NETWORK! BE INSPIRED! BE IN BARCELONA! More information on forum.fleeteurope.com

MANAGEMENT

AWARDS 2018: DISCOVER THE FINALISTS This year again, Fleet Europe will recognise the best of the fleet and mobility industry in 5 categories. Meet the 2018 finalists who will be celebrated in Barcelona on November 28.

AWARDS FOR INTERNATIONAL FLEET MANAGERS

The Global Fleet Manager of the Year rewards the person or the team, managing a fleet at global level and having most successfully developed a global fleet approach which demonstrates harmonisation and cost-efficiency.

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.

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 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.

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.

FLEET EUROPE #100

Five different Awardâ&#x20AC;&#x2122;s categories for fleet managers reward the achievements of international fleet managers in their fleet and mobility management:

MANAGEMENT

Here are the nominees for 2018:

THE ABBVIE FLEET CENTER OF EXCELLENCE (COE) represented by Steve Bair & Wojciech Regucki ABBVIE Role: Global Fleet Services Manager & EMEA Fleet Manager Sector: Biopharma Responsible for: 8,513 vehicles “The Fleet CoE structure and resources are key factors to the success we have had. The Fleet CoE is able to manage and bring new ideas quickly to key stakeholders. Most recently, the Fleet CoE has partnered with our Commercial Division on a spend management initiative. We were able to utilise this goal to bring further fleet savings to the affiliates/company. We had support to realign our vehicle offerings, potentially to smaller engines with new safety technology, and ensure parity within the company and among our peers. This initiative will generate significant savings moving forward.”

FRANZ FEHLNER ALLIANZ TECHNOLOGY SE

Role: Strategic Sourcing, Category Manager

Role: Global Category Leader Fleet Management & Services

Sector: IT

Sector: Finance

Responsible for: 4,500 vehicles

Responsible for: 28,000 vehicles

“With our centralised multi organisational Management (CS, HR, Procurement), we were able to standardise services, programme policy and pricing structure, optimise cost, sustainability, and efficiencies through working process across the European region. This achievement reduced overall programme’s cost by 13%. In Israel, the optimisation of the programme achieved overall cost savings 3% - 14%. Finally, 100% of all ordered vehicles are aligned with the programme’s CO2 limitation policy.”

“We’ve transformed an analogue, fragmented operating model to a digital bundled virtual hub/spoke model which leads to increasing volume and huge cost savings. All is managed and controlled centrally over the virtual Fleet centre of excellence. With this virtual team, composed of hubs based in different regions, we’ve implemented a fully outsourced service model with a strict reporting line to the Global Fleet Management.”

LAURA GOBBIS LUXOTTICA

HEIKO GROESCH GOODYEAR DUNLOP TYRES

FERENC HEGEDUS IBM

Role: Travel and Fleet Procurement Manager

Role: Manager Fleet EMEA

Role: Global Category Lead, Car Lease, Rental and Ground Transportation

Sector: Eyewear manufacturing and distribution Responsible for: more than 2,000 vehicles

FLEET EUROPE #100

SARIT BARZEL INTEL

“Luxottica has a global strategy covering more than 30 countries, a strong Governance leading the way to mobility and fleet TCO optimisation through energy transition project (ongoing), a unique car policy spread over countries, with restricted number of OEMs. The fleet management strategy is structured in connection with HR and the communication between the two functions is strict in order to have a complete vision of the global company trends and development.”

Sector: Tyres Responsible for: 6,508 vehicles “We have introduced the first EMEA Car Policy in our company. By splitting this Car Policy in two parts, the Car Policy binding for a longer period and some attachments which can be updated twice a year, we’re more flexible and we can immediately react on local market changes. Implementing a multi-bidding concept and streamlining the internal administrative process (implementation of cluster responsibilities and of a HR Garden project, which allows us to provide the correct car level) permits significant cost reductions.”

Sector: Technology Responsible for: 20,275 vehicles “The creation of a Cognitive Fleet Management platform, Pricing IQ, enables IBM to develop insights of the major indicators of the organisation’s actual fleet. With external market intelligence leveraged against our spend insights, the tool creates valuable market comparisons for further negotiations. Automated calculations enable the Fleet Management team to react to the expected mileage predictions to avoid fees. The Pricing IQ tool provides continued rate competitiveness, enhanced negotiation capabilities, and proactive reactions on Fleet Management among other benefits.”

MAAIKE HOFWIJK - VAN HEMMEN G4S

RICARDO KOEVOET ABB

ALMY SOUSA MAGALHAES PHILIP MORRIS INTERNATIONAL

Role: Fleet Manager Europe and Global Fleet OEM lead

Role: Procurement Team Lead Fleet Europe

Role: Global Procurement Executive Fleet, E-Commerce & Distribution

Sector: Safety & Security

Sector: Technology

Sector: Tobacco

Responsible for: 26,000 vehicles

Responsible for: 13,500 vehicles

Responsible for: 22,930 vehicles

“We’re developing a European fleet strategy to achieve synergy, savings, process optimisation and a smaller supplier base. To do that, we’ve implemented a European car policy with country addenda to cover the local rules, regulations and deviations within the European car policy. With the support of procurement we had also run a leasing RFP in parallel with the goal to drastically reduce the number of leasing companies and replacing them by international players. We’ve also run an RFP to reduce the number of OEMs.”

“By implementing one standard Master Car Lease agreement, governing the Fleet procurement process in 34 countries, we enabled the move from a country centric approach to a centralised European fleet procurement approach within a 2 years period. Streamlining the front-end process has enabled ABB’s departments involved in the company’s fleet management, to align and optimise their processes to allow for maximum flexibility for HR (Purpose for use, Brand, model), to ensure downstream centralisation possibilities and to create transparency and cost control throughout the organisation.”

“Our Fleet Global Strategy settled in a holistic approach (TCO, CO2, Safety, Fleet Management. and Mobility), and cascade top-down bring us speed and harmonisation when it comes to the programme’s successful adoption in large scale. Constantly anticipate trends, pilot, prove concept before rollout is our key operating model. This systematic has allowed us over the last years to consolidate upfront successful global programmes in all strategic streams of Fleet (TCO, CO2, Safety, etc.).”

DAVID OMODEI MICROSOFT

CHRISTINE SIROUX INGERSOLL RAND

Role: Sr. Procurement Engagement Manager Fleet

Role: Travel & Fleet Manager EMEA

Sector: IT Responsible for: 9,195 vehicles “We’ve introduced a new fleet management model, changing from multi-source to single source across 20 countries affecting 80% of our global fleet size. Key drivers are targeted towards improving on process simplification and TCO. This fleet management approach enables us to manage the entire global fleet with limited headcount, with complete visibility and therefore influence. In parallel we’re working on a MaaS app which integrates various options for ground transportation into proactive mobility advice. This solution will allow our Employees to be more flexible and efficient in their daily traffic/commuting requirements and will have a positive impact on CO2 reduction.”

Sector: Industrial Responsible for: 9,097 vehicles

“We have started to move away from a very fragmented Fleet Model across 35 countries to a consolidated model including policy harmonisation, sustainability efforts to reduce the CO2 emissions and replace a Diesel only programme offering different solutions to our company car drivers based on profile segmentation. The innovative approach of our programme is the balance between driver centricity and the overall performance of our programme versus company goals. This change permits to increase Customer Satisfaction, reduce our Carbon Footprint while remaining Cost Neutral and to be as attractive as possible to new talent hired by the company.”

FLEET EUROPE #100

THE 2018 JURY MEMBERS • Michiel Alferink, Vice President International Sales, Athlon International • Daan Bieleveld, Category Manager Mobility, DSM • Jeremy Coleman, Director - UK and Ireland, Mobileye • Gavin Eagle, Managing Director, LeasePlan International • Thierry Faure, Head of client relations, ALD Automotive • Juergen Freitag, Head of Global Fleet Management, Siemens AG • Stefan Herbert, Senior Manager International Corporate Sales, Mercedes-Benz • Mark Howlett, Fleet Sales Manager Europe, Kia • Edward Kulperger, Vice President, Business Development, Geotab • Carsten Kwirandt, Head of Marketing and Business Development, Aphabet International • Ralf Kostrewa, Manager Volkswagen Group Fleet International, Volkswagen Group • Jörg Löffler, CEO, Fleet Logistics • Alexandra Melville, Global Category Expert for Car Fleet and Mobility, Accenture • Vinzenz Pflanz, Senior Vice President Group Sales, Sixt SE • Steven Schoefs, Chief Editor Fleet Europe, Nexus Communication • Peter Szelenyi, Global Fleet Category & Regional Travel Category Manager, Novartis • Caroline Thonnon, CEO, Nexus Communication

MANAGEMENT

This category celebrates the achievements and innovative solutions of fleet suppliers. The International Fleet Industry Award recognises 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 2018:

WITH ALD CAR SHARING ALD Car Sharing is an online car sharing solution for employees that covers the entire driver journey, for both professional and personal purposes, with a dedicated app for booking the car and keyless access to the vehicles. This solution is easy to use, flexible, cost efficient and environmentally friendly, as one car is shared between several drivers. It allows corporate clients to optimise the use of their corporate vehicle fleets, reducing their total cost of mobility and providing an attractive car-sharing solution for all their employees.

WITH CHANGEMYCAR The world is changing and we are seeing people moving from ‘traditional ownership’ to ‘usership’ of key assets with a constant need of flexibility. With ChangeMyCar ®, Athlon brings the flexibility of Car Rental for the same cost as Car Leasing. This service avoids additional unbudgeted costs for fleet customers. Drivers simply use an app to view, swipe, choose and change their car from their smartphone (it’s just like Tinder) and take delivery of the car they need or want the next day.

WITH DRIVENOW DriveNow is further increasing the availability of vehicles, to provide customers with even greater benefits in the daily mobility mix while contributing to relieving the traffic situation in cities. With petrol station operator TOTAL, DriveNow introduced a digital payment function with direct communication between the customer’s car and the payment system. Therefore, DriveNow customers can pay directly from their car at TOTAL service stations and no longer need to go to the checkout making the traditional fuel card in the car obsolete.

FLEET EUROPE #100

WITH FLEETCARMA Through high-fidelity vehicle-side data, FleetCarma, a Geotab company, provides a platform for fleet and sustainability managers to analyse and run efficiency diagnostics, allowing them to forecast fleet usage, performance, the effects of their decisions, and how to transition to an electric fleet. In addition to detailed reporting, the Electric Vehicle Sustainability Assessment (EVSA) supports

budgetary decisions by accurately forecasting a fleet’s ROI. The EVSA was developed with one main goal - drive electric vehicle adoption.

WITH TRANSITION+ WITH LEASEPLAN ELECTRIC PROGRAMME This programme offers: a charging service (charge card that support 75,000 public chargers, home charging with automatic reimbursement and workplace charger solution); lease vehicles related services (a holiday car to complete your long distance trips during the holiday and the ‘try electric’ concept to provide a short-term EV to try out if electric driving is for you); EV consultancy and driver support to support our clients and drivers to facilitate a smooth transition to EV. This end-to-end offering accelerates the transition to zero emission mobility.

WITH ENHANCED VEHICLE MANAGEMENT The technological solution EVM (Enhanced Vehicle Management) consists of a latest generation web-based platform for advanced fleet management, combined with a proprietary on-board telematics device and a dedicated mobile app. The EVM solution is able to monitor on-board diagnostics and plan both ordinary and extraordinary maintenance interventions. In addition, the platform is able to manage multiple fleets and multiple users for each fleet. The EVM technological solution allows real time application of advanced analytics to behavioural, contextual, diagnostic and other telematics data.

WITH FUEL + TMC created Fuel+ to address the issues of managing multiple fuel cards across EMEA, and in many cases, multiple cards per market. Fuel+ is a global fuel management programme with the ability to harness data from multiple fleet service providers to provide complete visibility and cost savings. It works with clients’ existing fuel card providers to audit and consolidate their fuel and mileage data and give customers a global view in one currency, on one platform. Alternatively, TMC can provide a single fuel card for all markets to use.

Transition+ was created to help a large international client with the transition of its 12,300 strong fleet across 15 markets from multiple leasing companies to one leasing company. TMC now offers this service across more than 40 markets, and it is expanding quickly. Transition+ takes data feeds from clients’ fleet supply chain – including leasing, accident, fuel card and telematics data –overlays it with employee data and consolidates it.

WITH WENOW WeNow offers a replicable solution to measure, reduce and offset carbon emissions. The solution can be used both in the public and the private sector, as well as by individuals. WeNow has designed an innovative, affordable and replicable solution to help organisations, fleet managers and individuals reduce their carbon footprint to zero, while making significant savings. The company is particularly concerned about setting the example to measure, reduce and offset carbon emissions. The WeNowBox helps the driver measure, reduce and optimise the carbon emissions of their vehicle.

THE 2018 JURY MEMBERS • Montse Empez Vidal, Chief Purchasing Officer, Applus • Geert Behets, Global Travel, Fleet and Meetings Manager, UCB Group • Maaike Hofwijk - Van Hemmen, Fleet Manager Europe, G4S Europe • Hans den Hollander, Fleet Manager EMEAR, Cisco • Fer Derwort, European Fleet Manager, Infor • Pim De Weerd, Global Commodity Manager Leased Cars, Philips • David Omodei, Sr Procurement Engagement Manager, Microsoft • Wojciech Regucki, EMEA Fleet Manager, Abbvie • Steven Schoefs, Chief Editor, Fleet Europe

VOTE NOW FOR YOUR FAVORITE TOOL The results will be annouced in the Fleet Europe Village on 28 November in Barcelona.

For the third time, the Smart Mobility Start-up of the Year highlights start-ups based in Europe that develop innovative and/or disruptive fleet and mobility services. Here are the innovative companies which have entered the competition:

Bestmile provides the first platform allowing for the intelligent operation and optimization of autonomous vehicle fleets, regardless of their brand or type. Bestmile’s premise is that the future of mobility is not in autonomous vehicles themselves, but in what they can offer when they are operated and managed collectively in an integrated ecosystem.

CARFIT developed AI powered proprietary algorithms, which use vibration signals from car sensors (NVH: Noise, Vibration & Harshness) to anticipate the maintenance needs of wearing parts, such as tyres, wheels, shocks and brakes and sends actionable insights to the car owner and car dealer, making car maintenance predictable, timely and safer.

Clicars.com eliminates in-person visits to car dealerships through digitisation and trust. The service takes high quality pictures and videos of cars, spending one hour with each car to certify every technical aspect. Clicars offers home delivery service, and the longest trial period in the market and a full-money back guarantee. It has an ambitious target of selling 10,000 cars in 2021.

Commuty is the n°1 parking mobility software for companies, that also includes green mobility, all-in-one. Commuty digitises your companies’ parking management, optimises your parking costs and organises your employees’ home-work trips. Employees are happier, and companies can save up to 50% on their parking costs.

Ecomobix is an end-to-end enterprise solution for carsharing, ridesharing, and eventually autonomous ridehailing, providing a full technology stack for those entering the shared mobility space.

The online platform digitises and streamlines the car damage repair handling process. Fixico is used by car owners, insurers, fleet management and leasing companies to quickly obtain, compare and select the best offers for car damage repairs. Fixico is currently active in the Netherlands, Belgium, Germany and operates a network of 1,500 top-quality repair shops.

GoTo powers the next generation of car sharing. GoTo is the leading white label software that allows mobility operators to launch and operate multiple car sharing business models on a single platform.

Nauto’s intelligent driver safety system assesses how drivers interact with the vehicle and the road ahead to reduce distracted driving and prevent collisions. With this knowledge, Nauto is powering the development of self-driving technology that brings the best of human driving to autonomy. The company was founded in 2015 and is headquartered in Palo Alto, California, with offices in Japan and Europe.

Otonomo’s platform ingests automotive data from multiple sources, including OEMs and other data providers. It secures, cleanses, normalises, aggregates, and enriches it with third-party datasets in order to meet consumers’ privacy expectations, manage compliance, and maximise its value through its global Marketplace. It provides services such as preventive maintenance, public safety, parking, on-demand fueling, in-vehicle delivery…

THE 2018 JURY MEMBERS • Octavian Chelu, Principal Consultant Fleet & Leasing - Frost & Sullivan • Vincent Degives, Marketing Manager – Nexus Communication • Marcus Fromberg, Sales Manager Benelux – AutoFacets (Nintec)

Konetik’s vision is to drive the e-mobility revolution with AI-driven solutions and extensive charging expertise. After identifying the difficulties to integrate electric vehicles into clients’ daily operations, Konetik made a commitment to leverage its expertise to facilitate e-vehicle uptake and help the spread of low emission mobility.

• Steven Schoefs, Chief Editor – Nexus Communication • Caroline Thonnon, CEO – Nexus Communication • Sven Van Rossum, Industry Expert – Athlon

VOTE NOW The telematics platform of Motion-S enables insurance customers to offer dynamic pricing for high risk groups. By measuring 22 statistically proven elements they are able to select the good risks and reduce their loss ratio significantly. The user interface enables customers to increase touch points with customers, increase retention of customers and to upsell into groups.

Vote now for the Smart Mobility Start-Up of the Year 2018. The results will be annouced in the Fleet Europe Village on 28 November in Barcelona. FLEET EUROPE #100

The Parking Platform™ provides a digital infrastructure layer over the existing road network and offers a Platform as a Service for local governments and car park operators to manage their kerbside and assets. DaaS is licensed to vehicle OEMs, connected car companies and B2C consumers in the form of a marketplace. AppyParking dramatically saves cities from congestion and pollution.

MANAGEMENT

The International Fleet Hall of Fame Award recognises vehicle fleet industry leaders who have contributed to the development and optimisation of the international fleet management profession throughout their career. This year, a specific focus has been placed on the fleet industry leaders from the car manufacturing industry. Here are the 3 nominees:

SIMON DRANSFIELD

FRANCO MARIANESCHI

JOHN WALLACE

General Manager, Fleet & Business Europe, Jaguar Land Rover

European Corporate Sales Manager, Maserati

Director, EMEA Fleet Operations and Global Major Accounts, Volvo Car Corporation

VOTE NOW FOR YOUR FAVOURITE INDUCTEE The results will be announced during the ceremony on 28 November in Barcelona.

2011

2012

2013

2014

Gianluca Soma

Bruce MacLaren

Pascal Serres

Philippe Bismut

FLEET EUROPE #100

? 2015

2016

2017

Mike Masterson

Jose-Luis Criado

Tim Albertsen

2018... WHOâ&#x20AC;&#x2122;S NEXT? 56

For the second year, Fleet Europe will also highlight the Car Remarketing sector. The International Car Remarketing Award will be given to an actor 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 realised on the vehicles. Here are the 2018 finalists:

BCA 1Europe Transport is the first and only one-stop shop solution allowing used car players to be as comfortable doing business in Europe as they are at home. BCA is creating a unique European transport solution tailor-made to the needs of used-car buyers based on BCA’s managed fleet, an extensive partners’ network, digital tools and central multilingual teams. BCA defines new market standards on flexibility, lead-time, cost, reliability and tax risk reduction. While buyers were used to a transport time ranging anywhere from 2 to 6 weeks, BCA is now executing most international transport within less than 7 days.

WITH EXPERTEYE REMARKETING ANALYSIS ExpertEye has a unique holistic approach to remarketing analysis by utilising not only used car remarketing data but also data from the entire ownership cycle, covering: • INITIAL View. Data from various sources on forecast residual values, service maintenance and repair costs and rental rates. • IN-LIFE View. Market research with vehicle drivers on their views on product features and the aftersales experience. • RE-SALE View. Advertised and actual used car remarketing data from used car websites and leasing companies. • ExpertEye Consultancy Services allow the interpretation and analysis of this wide range of data to optimise remarketing policies, reduce risks, improve the forecasting quality and take strategic decisions.

WITH MANHEIM EXPRESS As a general trend, the vehicle remarketing industry has seen the adoption of online buying and selling grow at increasing rates. The adoption of digital buying and selling channels has been especially strong among the dealership community, as dealers seek ways to better serve their clients, drive increased profitability and move inventory faster. In response to this macro industry trend, Manheim saw the opportunity to help its dealers drive success by developing Manheim Express - an entirely new mobile application that allows dealers to quickly list and sell vehicles within the Manheim Marketplace, a robust online buyer community of 139,000 monthly users, right from their dealership lot.

THE 2018 JURY MEMBERS • Luc de Moor, Managing Director, Educam Group • Marcel de Rycker, Managing Director, International Warranty Services • Christof Engelskirchen, Managing Director - Consulting & TCO Solutions, Autovista Group • Olivier Ferry, Director Fleet and Remarketing Europe, Hyundai Motor Europe • Morten Holmsten, Global Sales Director, Autorola • Wolfgang Reinhold, President, CARA • Ingo Schlosser, Vice President Business Development, ADESA • Steven Schoefs, Chief Editor, Fleet Europe • Ewout Van Jarwaarde, Managing Director, CarNext.com • Johan Verbois, Managing Partner, 5S Consulting

AUCTIONING NETWORK

WITH SHELF AUCTIONING NETWORK This technology (using private blockchain protocol) enables the creation of a peer to peer network of marketplaces, where sellers can run the same vehicle trade, most notably auction - synchronously across multiple platforms. It cuts manual workload for sellers, procedural uncertainties with cross border selling, as the service streamlines all associated processes with making a deal. Shelf’s platform not only enables to reach global competition, but creates an ecosystem where assisting businesses such as inspectors, history reports, carriers, financiers are all brought together in a service bundle for the final buyer. FLEET EUROPE #100

WITH BCA 1EUROPE TRANSPORT

market insights, INDICATA has developed a large-scaled data warehouse that enables the user to get an overview on the market and process it for internal and external communication aiming at optimising used car remarketing processes.

WITH INDICATA SMART DATA With INDICATA Smart Data you receive the full picture on the used car value chain as it shows you threats and opportunities of an everchanging market at a glance. Based upon Autorola

ANALYSIS

THE ART OF BEING PREMIUM @DieterQuartier

What makes a car brand premium? Beyond a sense of luxury and above-average quality, are there intangible aspects at play? As the market gets crowded, services rather than goodies seem to become of the essence.

Luxury was a commonly used term in the 70s and 80s to indicate something that was quite special, extraordinary and expensive, but it has lost its attractiveness and its meaning due to over-use. The same fate seems to have befallen the word premium. Everything is called premium nowadays, from coffee to hotels, from clothing to subscriptions. Like for wine, good automobiles need no bush. It is only the ones that pursue a status of excellence but struggle to be socially recognised, that drop the term plentifully in their marketing discourse. What makes a car more desirable than others and therefore sellable at a higher price? We found 5 key elements that are at play. From design to service, from build quality and materials to connectivity: it’s the entire customer journey that separates the wannabes from the established.

1 HERITAGE

If you don’t have the pedigree, it is very difficult to convince customers of your premium credentials. Lexus and Infiniti, for instance, have a hard time convincing discerning European customers. In the rest of the world, they are considered to be at a par with the German trio.

FLEET EUROPE #100

BUILD QUALITY AND MATERIALS

What has been put together well, using high-end materials, lives longer and maintains its value better. Even though the gap with the volume brand has narrowed over the past decade, the details still make the difference. So does the soundproofing and the smell of the interior, incidentally.

3 PERSONALISATION Standardisation

saves

money,

Premium brands are not only at the forefront of luxury and comfort, but also in tech development. Here is the new Audi e-tron.

while customisation possibilities increase R&D costs, logistics and production complexity, and so on. Premium is the freedom of choice – but WLTP might just limit this flexibility because of the added multiplicity.

4 ADVANCED TECHNOLOGY

Premium buyers expect state-ofthe-art features aboard their vehicle, from comfort and safety (ADAS) all the way through to high-end infotainment systems featuring top-notch connectivity. This is where technology meets service.

SERVICE

You can build a good car, without service an OEM won’t keep their customers happy. A free replacement car, a follow-up call to ensure everything went fine, a quick and

professional answer to any question a customer may have: these are things that count.

THE PREMIUM FLEET BRANDS Old premium: Audi, BMW, Jaguar, Mercedes, Range Rover New premium: Alfa Romeo, DS, Infiniti, Lexus, MINI, Volvo Super-premium: Maserati, Porsche

ADVERTORIAL

CONCEDED EDITORIAL SPACE

MASERATI: EVEN MORE LUXURY FOR 2019 Maserati has always been the very epitome of Italian luxury cars thanks to its design, performance, comfort, elegance and safety. Never standing still, the brand is now introducing even more of this luxury across its entire 2019 model range.

The full Maserati line-up has been enhanced to enhance the driving experience.

Stunning good looks

This quest for perfection includes changes to both saloons, the Ghibli and the Quattroporte, and to the Maserati of SUVs, the Levante. All models feature a redesigned central tunnel with a new gearshift lever, with a more intuitive shift pattern, shorter travel and improved ergonomics. Safety and infotainment have also been even further enhanced.

Where the aesthetics of these beautiful cars is concerned, Pieno Fiore leather is available as an option in all Levante, Ghibli and Quattroporte versions. The exterior colour palette has also been refreshed, with a choice of ten colours for the Quattroporte and eleven for each of the Ghibli and Levante models. And of course, the wheels play an important part in the look of every Maserati.

• Eight-speed ZF gearbox • Automatic or manual mode by a simple gearlever shift • New ‘P’ button for parking mode. • Integrated Vehicle Control standard across the range • Updated display graphics and improved climate control

• Pieno Fiore leather in black, red and tan • Specific seat stitching • Double stitching on the door panels • Two brand new high-gloss interior veneers for Ghibli and Quattroporte • Three brand new high-gloss interior veneers for Levante

• New Rosso Potente tri-coat colour • New Blu Nobile tri-coat colour • Five alloy wheel designs • 20 or 21 inch

More info corporate.sales@maserati.com

FLEET EUROPE #100

Enhanced driving experience

ANALYSIS

LUXURY BRANDS WITH AN UPWARD TREND IN THE EU FLEET MARKET Michael Gergen and Richard Worrow, Dataforce

The corporate fleet market is important. Not only for the more general brands, but also the premium and even luxury brands are increasingly focusing on fleet sales. With result, as you can read in this analysis by data intelligence provider Dataforce.

FLEET EUROPE #100

For the first seven months of 2018 True Fleets from the big seven European Markets (Belgium, France, Germany, Italy, the Netherlands, Spain and the UK) are certainly in good shape, with a combined growth rate of 3.3% over January-July of last year while the Total Market “only” increased by 2.8%. If you analyse the fleet performance over a longer period of time the result is even more impressive. Comparing the volume of new passenger car registrations January to July 2018 versus 2009, True Fleets grew by 49% while the Total Market scored only + 9%. Of course, the company car market is still very much in the hands of established and popular brands like Volkswagen, Renault, Peugeot, Ford, Opel and the German premiums Audi, BMW and Mercedes. The top 10 brands in year-to-date July 2018 accounted for 70% of fleet registrations which is pretty close to the result from the corresponding period last year. However, we can also see that brands which belong to the Luxury/ Premium segment are increasing their volumes within fleets. Porsche, for example, raised their registrations compared to the first seven months of 2014 by 35%, Land Rover and Maserati achieved growth rates of 65% and 75% respectively, Jaguar (+183%) and Tesla (+288%) more than doubled their volumes over that five-year period.

Fleet growth accelerates Increasing the (fleet) market share is certainly appreciated but there is another aspect that we would like to emphasise: for the brands mentioned above registrations on True Fleets are accelerating faster than the ones on private households. Thus, the target group “company cars” is getting more and more important within these car manufacturers. In order to underline this effect, we analysed the figures by excluding all registrations on Short Term Rentals, dealerships and the manufacturers themselves. Therefore our 100% of the market here is the sum of “Private” and “True Fleets” only. As you can see in the graph every second car of the German Premiums is registered on a fleet customer. The same holds true for Volvo. Overall not a huge surprise, but there are more brands for which the fleet share is similar or even higher. Tesla, Maserati and Infiniti all sell more cars to fleets than to private customers with Lexus not very far behind. The two brands of JLR both have a share of 40% but coming from different directions, so to speak. While the fleet share within Jaguar fell from 45.3% in Jan-July 2017 to 39.4% in 2018 over the same time period it increased at Land Rover from 36.0% to 39.8%. This opposing trend is mainly caused by the current product portfolio. If you would exclude the

new E-Pace - which is very successful, especially in the Private Market the share would still be around 44%. At Land Rover on the other hand we saw a significantly higher fleet share for the Discovery Sport and especially the Discovery. Almost 40% of the registrations on the 5th generation of the “Disco” were made by companies while this share was only 27% back in January-July 2017. In terms of the most preferred models the SUV trend is somewhat inevitable, and this is also reflected for these brands. For four out of the seven brands the model ranking is led by an SUV. It might be even more in the future.

A bright future Where do we go from here? Our forecast shows further growth for the EU-7 Fleet Market in 2019, even though one of them (which is an island) will suffer significantly in 2019/2020. Do we expect the luxury brands to continue their upswing? Yes, we do. Their slice of the market will increase next year despite the fact that Jaguar and Land Rover have to deal with a very challenging home market. How do we come to this conclusion? Again, the model line-ups are playing an important role here and we see a promising trend caused by model events within the luxury brands: The E-Pace from Jaguar will be fully available now and

COMPARISON PRIVATE AND TRUE FLEETS, JAN-JULY 2018 0%

TRUE FLEETS EU-7, JAN-JULY 2018 NUMBER 1 MODEL BY BRAND

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Model S Levante

Q30

NX RR Evoque F-Pace 911 35% TRUE FLEETS

the new electric I-Pace will certainly gain additional fleet customers. We will see a new generation of Range Rover Evoque, Infiniti QX50, new versions like the Coupé from Porsche’s Cayenne and completely new players like the UX from Lexus or the Porsche Taycan. For 2020 the outlook is even brighter, as we expect a significant volume from Tesla’s Model 3 after finally hitting the European Markets.

65% PRIVATE

manufacturers mentioned above are moving into that direction but with a different approach. While Porsche and Lexus are concentrating on hybrids, Land Rover offers plug-In versions of their Range Rover/Range Rover Sport and Jaguar is currently concentrating on a full EV, the new I-Pace. Let’s see which way will be the most appealing for new car buyers in general and fleets in particular.

This leads to a more general question: what about the development of alternative powertrains? Yes, all the

FLEET EUROPE #100

ALL BRANDS

ANALYSIS

A CUSTOMER EXPERIENCE TO MATCH THE CAR @DieterQuartier

What makes premium brands different from the volume carmakers and - more importantly - from one another? Next to the product itself, there are fleet-oriented services and a business-specific customer experience to consider.

The trend toward premium in fleet is not a trend anymore. Many companies provide their employees with a decent set of wheels to keep them motivated, to have a representative mobile business card and to ensure maximum safety. The latter takes many shapes: a comfortable drive, advanced driver assistance systems and a top-notch crash resistance, but also top-notch connectivity and ergonomic commands. How do you ensure the customer experience and fleet services match the product and how do you differentiate yourself from the competition? Those are the questions Fleet Europe asked the premium players on the European market. We received very different and very interesting feedback from three very different brands: DS, MercedesBenz and Volvo Cars.

DS AUTOMOBILES: THE REINVENTED FRENCH PREMIUM

FLEET EUROPE #100

Customer focus DS Automobiles distinguishes itself from other premium brands by definition: it was launched in 2015 with the clear ambition to embody French automotive luxury. Designed for customers looking for a means to express themselves as individuals, the DS cars stand apart through their avant-garde design, refinement in every detail, advanced technologies and dynamic serenity.

Technology and innovation Key driver is to make available to its customers some avant-garde features

DS 7 Crossback DS offers more than just chic materials and fancy looks. “Only you, the DS experience” is a programme of exclusive services for a unique brand experience.

and exclusive technologies usually available in upper segments of the market, such as DS drive assist (autonomous driving level 2), DS active safety break and DS matrix LED vision. The entire range of DS will be electrified by 2025, starting with the DS7 Crossback E-Tense and the DS3 Crossback E-Tense in 2019.

Services For its discerning customers who demand customisation and exclusivity, DS Automobiles has created “Only you, the DS experience”, a programme of exclusive services for a unique brand experience. Since September 2018, the brand has 390 showrooms worldwide. DS upholds high network standards by training its sales and after-sales teams to stick to its “premium” commitments. Through its “prices, SMR costs, volumes and sales channels” management, DS

proves to its fleet customers that the DS brand is not driven by volumes, but looks for a virtuous circle, from which they will benefit.

MERCEDES-BENZ: THE BRAND THAT WAS BORN PREMIUM Customer focus Each Mercedes-Benz model combines the classic values like quality, safety, connectivity, comfort and everyday usability with driving fun and an attractive design. Since 2006, MercedesBenz International Corporate Sales is professionally organised to manage the large multinational fleet business at an international level. An experienced team of International Key Account Managers and a network of more than 6,400 service points worldwide consult fleet customers to achieve their business goals on and off the road.

Volvo 360 Volvo wants to allow people to recapture time while travelling. It explores opportunities to expand its business model beyond that of a traditional car manufacturer.

for all travellers and commuters. It’s all about a new way to travel – the future is electric, autonomous and connected. Car sharing and subscription services are complementing traditional car ownership patterns. Volvo Cars believes many will still want to have their own car, but others will switch to alternative mobility solutions as they become available.

Technology and innovation

data out of different services enable fleet managers to act proactively by detecting and preventing problems early. Recently a multi-brand solution was added, allowing fleet managers to control their entire fleet with only one connectivity solution.

Mercedes-Benz offers a broad product spectrum to suit every need and uses highly efficient, economical drive systems to provide the most suitable vehicles for multinational fleets. With its product and technology brand EQ, Mercedes-Benz will provide its customers with an e-mobility ecosystem, including a package of customised solutions and services.

VOLVO CARS: FROM PREMIUM CARMAKER TO MOBILITY PROVIDER

Services

Customer focus

The fleet connectivity services under the Connect Business product brand create transparency about the state of a fleet – in real time. Static and dynamic

Putting people first and not technology, that is in a nutshell what Volvo Cars is about. The Swedish carmaker is planning for the future with solutions

Services Volvo Cars is evolving from a car company to a direct-to-consumer services provider under its new mission ‘Freedom to Move’. Its new brand, M, will provide dependable, on-demand access to cars and services through an intuitive app. Moreover, M will learn about its user’s needs, preferences and habits, personalising the customer relationship. It will debut in Sweden and the US in the spring of 2019. M’s mission is to enable more people to move freely, meaningfully and sustainably.

FLEET EUROPE #100

Mercedes EQC With its product and technology brand EQ, Mercedes-Benz will provide its customers with an e-mobility ecosystem, including a package of customised solutions and services.

Volvo Cars believes that in the not too distant future, we will see a world where fully autonomous electric vehicles are the answer to personal mobility needs. It advocates a standardised autonomous vehicle communication system, which it believes will play an integral part in making autonomous vehicle travel a safe and pleasant reality.

ANALYSIS

HOW UTILITY BECAME PREMIUM Mark Sutcliffe

The rise of the now ubiquitous Sports Utility Vehicle has been unstoppable. From a new breed of agile, compact cross-overs to exclusive super-premium 4x4s from the likes of Bentley, RollsRoyce and Lamborghini, the future of the SUV seems assured.

FLEET EUROPE #100

Lamborghini’s ¤175,000 Urus launches next year.

The evolution of the SUV propelled Land Rover from a niche player into the top tier of the premium automotive market. The British marque invented the sector and dominated the genre for decades and – in the eyes of many consumers – it continues to set the benchmark for others to follow.

driven by a combination of factors: the collapse in demand for ‘one size fits all’ volume models, the more widespread availability of cheap and flexible finance products and the global expansion of the middle classes who increasingly own a fleet of cars for every conceivable application.

Today, every premium European OEM has at least one SUV or cross-over in its line-up and what was once a niche market has become one of the most important segments of the European new car market. Even brands previously associated exclusively with sports or luxury executive cars (Rolls Royce, Bentley, Maserati and Lamborghini) have joined the battle for SUV dominance.

Looking in greater detail at each of these factors in turn, it isn’t very long ago that every leading OEM had a portfolio of products which slotted neatly into predetermined segments. The sweet spot in volume terms – certainly in the fleet sector – was the C & D segments, where the Astra/Golf/ Focus and Insignia/Passat/Mondeo dominated the market.

This seemingly relentless drive for domination of the most expensive sector of the car market has been

But over the last decade and a half, two key dynamics have knocked the mainstream volume manufacturers from the top spot. First, true fleet user-choosers

began to demand a wider choice of company cars and secondly, the wider availability and preference for leasing products made a BMW or Mercedes as cheap to finance as an Insignia or Mondeo. And now, with consumers in general and company car drivers in particular no longer satisfied with a mainstream

Total SUV/ Crossover Sales (Jan-June):

2.9

million

Compact crossover models like Volkswagen’s T-Roc are driving the surge in SUV sales across Europe.

560,000

19.5%

family hatchback, estate or saloon, most of those premium marques have two or more SUVs in their model mix. SUV sales have rocketed in 2018, with almost three million sold in the first half of the year – up more than half a million units on the same period in 2017. Large and premium SUV volumes actually fell in the first half of 2018, due in part to concerns over rising diesel prices, yet if current trends are sustained, smaller SUVs will become the second largest segment of the European market by the end of this year. So it’s the latest wave of compact SUVs like the Volkswagen T-Roc, Jeep Compass and Citroen C3 Aircross that are driving the SUV sales boom. So established players like Land Rover and Mercedes are facing a stern

challenge – not only from the new wave of compact competitors, but also from a raft of new entrants. Land Rover sales fell 14% in Europe over the first six months of 2018 – in contrast to its Fiat-Chrysler owned US rival Jeep, which became the fastest growing volume brand thanks to a 68% increase in sales – the majority of which were accounted for by the new Compass compact SUV.

The rise of the Super-Premium SUV But perhaps the biggest threat to Land Rover and Mercedes is the arrival of super-premium SUVs from the likes of Bentley, Aston Martin and Lamborghini. With a pricetag of more than three times the base level Range Rover, the Bentley Bentayga promises exclusivity that the sheer numbers of Discoveries and G-Classes on the roads cannot deliver. With a similar pricetag, the Lamborghini Urus provides all the prestige associated with the prancing bull with the day-to-day reliability of the Volkswagen group drivetrain technology which underpins it. Finally, Aston Martin’s much anticipated Varekai is due to launch in 2019 – offering another highly desirable take on the quintessentially English SUV. But a high proportion of these opulent vehicles will be destined for global export markets, so it’s in the traditional

sub ¤100,000 price bracket where the competition will be most intense. A larger Range Rover Evoque and revised Discovery Sport are due early in 2019, while BMW will unveil a new X5 and the super-sized X7. Porsche is set to introduce a coupe-style competitor to the BMW X6, Mercedes is bringing a super-refined new GLE to market and following the launch of the new Levante, Maserati will introduce a smaller stablemate based on the Alfa Romeo Stelvio.

Electric dreams become a reality But in the medium term, the future is almost certainly electric. The arrival of Tesla’s Model X changed the game in the SUV market and once again, the mainstream manufacturers are playing catch-up. Next year, Mercedes will launch the EQC – the first model in its all-electric QC range. Loosely based on the GLC platform, Mercedes’s new electric SUV deploys two electric motors and an 80Kwh battery pack to deliver a WLTP range of 400km. With more than 400PS available and a huge 765Nm of torque instantly available, the EQC springs from 0-100km/h in less than 5 seconds. With the efficiency of electric power and performance like this, it’s easy to understand how electric SUVs are set to eclipse their diesel counterparts by the mid 2020s.

FLEET EUROPE #100

Increase on Jan-June 2017

ANALYSIS

Land Rover’s journey from utility vehicle to premium luxury marque took 25 years.

ONES TO WATCH IN 2019 • Aston Martin: Varekai • Audi: SQ8 Hybrid • BMW: New X5, X7, X3M • Maserati: Compact SUV Name TBC • Mercedes: GLE, EQC • Porsche: Revised Macan, Cayman Coupe • Range Rover: New Evoque, Revised Discovery Sport

• Volvo: XC40 Twin

Next generation electric SUVs could accelerate the switch to EVs.

The combination of increasing demand for practical electric vehicles and low running costs thanks in part to Mercedes’s traditionally robust residual values are likely to make the new Mercedes SUV a popular choice among business users, but much will depend on the attitude of the leasing industry.

FLEET EUROPE #100

Some finance companies continue to treat EVs as something of an unknown quantity, but others are taking a more bearish view on diesels – which are seen by some as a liability in the medium/long term. In fact, according to PA Consulting, as it rolls out the rest of its QC electric range, Mercedes is set to overtake Tesla as the largest manufacturer of electric vehicles by 2021, with fellow German premium brand BMW jumping to second place in terms of sales volumes. But other analysts at

Bernstein and UBS suggest that, in technological terms, the new wave of rivals fall some way short of Elon Musk’s expanding product range. Interestingly, the rise and rise of the SUV across Europe and beyond looks likely to accelerate the shift towards electric power. It’s no coincidence that

SUV/Crossover Share of European Market (Jan-June):

34.7% 66

the EQC is the first of Mercedes’s all electric range to reach the market: the taller stance and larger body makes it easier to accommodate the large battery packs low down in the chassis – where they need to be – without compromising passenger or luggage space. Jaguar and Audi are taking parallel routes with their I-Pace and e-tron electric SUVs. So the future of the SUV looks unassailable; with the advent of electric automotive power, the lumbering 4x4s Achilles’ Heel: poor fuel economy – has been fixed. No longer gas-guzzling, agricultural behemoths, the 21st Century SUV will be an efficient, practical all-rounder that combines economy and efficiency with comfort and style. What’s not to like about that?

B AR CELO N A S PA I N

HOW TO STAY SUCCESSFUL IN REMARKETING? Attend the Fleet Europe Remarekting Forum and learn how trends are transforming the industry.

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FOR INTERNATIONAL FLEET & MOBILITY LEADERS 67

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More information on forum.fleeteurope.com

www.kia.com

First impressions matter.

The new generation Kia Ceed. Nice move. If you’re looking for a company car that perfectly combines comfort with dynamic design and styling, then the new Kia Ceed will instantly delight. With its bold design features and sophisticated driver-assistance systems – including Lane Follow Assist, Smart Park Assist and a high-definition JBL Premium Sound System – you can be sure of a dynamic, comfortable ride that will satisfy all of your driving needs.

Max. 150,000 km vehicle warranty. Valid in all EU member states (plus Norway, Switzerland, Iceland and Gibraltar). Deviations according to the valid guarantee conditions, e.g. for paint and equipment, subject to local terms and conditions. Fuel consumption (l/100 km)/CO2 (g/km): urban from 4.2/110 to 8.0/182, extra-urban from 3.6/93 to 5.4/124, combined from 3.8/99 to 6.4/145. The specified consumption and emission values were determined according to the legally prescribed measurement procedures (EU) 2017/1153. The above values have been tested in the new WLTP, Worldwide Harmonized Light vehicle Test Procedure, test cycle and converted back to NEDC, New European Driving Cycle, in addition measured according to the RDE, Real Driving Emissions method. www.kia.com/eu