Fleet Europe °108

108 06/2019

FOR INTERNATIONAL FLEET & MOBILITY LEADERS

AUTONOMOUS

MAAS

Self-driving changes urban mobility and insurance

FINANCE MODEL

Nexus communication - Fleet Europe #108 - Periodic magazine - JUNE 2019 - Deposit Office X

The risks of cash allowance

The common requirements

CONNECTED FLEETS CONFERENCE Smart telematics lead to smart fleets

WINNING STRATEGIES IN SAFETY MANAGEMENT • How to reduce the impact of safety on your TCO • How to set up a safety management programme • How vehicle and driver safety impacts insurance • How innovation supports fleet and driver safety

FLEET EUROPE SUMMIT

ESTORIL 6 & 7 NOVEMBER 2019 http://summit.fleeteurope.com

A new dimension in Fleet safety As a leader in automotive safety, Volvo Cars has a long track record of world-first safety innovations that protect your fleet drivers and have helped save countless lives.

But, we can also conclude that technology alone will never take us all the way to zero. In order to close the gap we need to address the remaining big challenge: human behaviour.

Changing behaviour Safety is good for your business. Apart from protecting your most valuable assets, your employees, it can also reduce the total cost of ownership of your fleet. At Volvo Cars we are committed to our vision of a future with zero traffic fatalities. This requires continuous technological development – but also a strategy for how to address the biggest remaining challenge we all face: driver behaviour.

To address this challenge, Volvo Cars is set to focus on the three key areas of driver behaviour in the car that contribute to avoidable fatalities and severe injury collisions: speeding, distraction and intoxication.

Our other world-first features, such as City Safety, Volvo’s standard Autonomous Emergency Braking technology, have been crucial in helping to reduce collisions with vehicles, pedestrians, cyclists and large animals.

Finding ways to reduce or remove these behaviours is fully in-line with our Vision 2020: that no one will be killed or seriously injured in a new Volvo car.

Through our approach to safety innovation, which is based on decades of real-life research, we have reached the conclusion that improved car safety technology alone will not be sufficient in a world where many accidents are caused by speeding, distraction and intoxication.

Volvo Cars’ continued success in reducing driver, passenger and pedestrian injuries, is based on a clear understanding of the cause and effects of severe injuries and fatalities in accidents.

We’d like to share our thoughts on this with you.

One of our most famous and successful safety innovations, the three-point safety belt, recently celebrated its 60th anniversary – with an estimated 1 million-plus lives saved.

Changing driver behaviour is the key to further improving automotive safety.

“We want to start a conversation about whether car makers have the right or maybe even an obligation to install technology in cars that changes their driver´s behaviour, to tackle things like speeding, intoxication or distraction,” says Volvo Cars CEO Håkan Samuelsson.

This award goes to the person or team that improves safety and limits incidents and accidents related to the vehicle fleet, taking into account cost-efficiency.

Green Fleet 5 European Manager of the Year

The Care Key

Driver monitoring camera

The Volvo Care Key will enable car owners and fleet managers the option of limiting the top speed of their entire fleet of cars should they wish. This is designed to improve safety in general, and slow down repeat speeding offenders while reducing associated costs for your business. The Care Key will come as standard equipment from model year 2021.

Distraction and intoxication are the other two areas of driver behaviour which need to be addressed.

The unveiling of the Care Key follows the announcement that Volvo Cars will limit the top speed on all its cars to 180 kph (112 mph) from 2020, in order to send a strong signal about the dangers of speeding.

Volvo Cars will introduce in-car driver monitoring cameras and sensors that function as early warning indicators of distracted driving, drowsiness, or driving under the influence of alcohol or drugs.

The cameras and sensors, which will be fitted to cars on our next generation of product architecture, from the early 2020s, will enable the car to intervene if a clearly distracted or intoxicated driver does not respond to warning signals and is risking an accident involving serious injury or death.

The introduction of top speed limits can also reduce total cost of ownership in several ways. Volvo Cars is currently inviting insurance companies in several markets to offer favourable insurance premiums to Volvo drivers and fleet owners employing speed limiters.

Specific deals and terms will depend on local market circumstances, but Volvo Cars expects to announce the first of several agreements with national insurance firms soon.

New digital tools, which can improve your employees’ productivity, are a good thing. But they can also increase stress levels and the risk of distraction when driving. Safety must always come first.

Volvo Cars is determined to keep both your drivers and your fleet investment safe.

This award goes to the person or team that can show a clear improvement in the emission strategy of the vehicle fleet, with a focus on vehicle and powertrain selection, fuel efficiency optimisation and innovation in eco-friendliness.

Smart Mobility 6 European Manager of the Year This award goes to the person or team that has developed a strategy for the complete employee community, offering alternative and innovative mobility modes next to the company car. The result is a programme that leads to a more efficient employee mobility.

Ensuring the highest possible judging standards, the jury is made up of corporate fleet managers, fleet suppliers and Fleet Europe representatives under the presidency of Edward Kulperger, Vice President Europe at Geotab (see Boxout).

FLEET AND MOBILITY SUPPLIERS

the young and the fresh in our industry with the Smart Mobility Start-up of the Year Award.

The Smart Mobility Start-up of the Year Award rewards a promising start-up developing innovative products or services in the fleet & mobility ecosystem, with high potential for growth.

REMARKETING Vehicle remarketing is an essential ingredient of the fleet management business. For the fourth year, Fleet Europe will be handing out the Fleet Europe Car Remarketing Award, to an actor in the remarketing sector that has developed an outstanding innovative product or service in the field of international automotive remarketing operations. The award can be won by any type of actor within the remarketing process, including start-ups and smaller traders.

HALL OF FAME The vehicle fleet industry has a strong and long history, with decision makers, business leaders and experts contributing to the maturity of the fleet and mobility business and the fleet managers’ profession. Each year, we celebrate a top-class industry expert as the new inductee into the Fleet Europe Hall of Fame.

This year’s winner will be decided by a designated jury under the presidency of Philippe Bismut, winner in 2014.

One word describes today’s fleet and mobility industry: transformation. This process is driven by new ideas and innovation. To underline the importance of innovation, the Fleet Europe Innovation Award 2019 celebrates the newest solutions and services of the supplier industry.

In particular: a solution, product or service from vehicle fleet and mobility industry suppliers that is evaluated by our jury as highly innovative and as standing out from the competition, while creating added value for the fleet and mobility customer.

EASY TO APPLY Go to the Fleet Europe Summit 2019 website for more information, and become a candidate: summit.fleeteurope.com

START-UPS

Will these new initiatives help to improve fleet safety?

Let us know what you think: volvocars.com/fleetsales

Innovation goes hand in hand with disruption. Indeed, the transformation from fleet to mobility inspires innovators to set up new companies. For the fourth time, Fleet Europe celebrates

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Edward Kulperger, Vice President Europe, Geotab and Jury President 2019

LOOKING FOR DISRUPTION “The Fleet Europe Awards bring organisational and individual excellence to the forefront,” says Geotab’s Edward Kulperger, Jury President for the Awards for fleet and mobility customers. “It is an exceptional way to demonstrate and share innovations with your contemperaries in order to establish best practices.”

What about the neutrality of the competition ?

“Ethics and integrity are cornerstones of the Fleet Europe Awards process. I love seeing a truly equal representation on the jury committee from indviduals that represent industry in all aspects and across all cultures. We strive for inclusion and neutrality goes without saying as we have a reponsibility to ourselves, our companies and our environment in whole.”

What kind of new initiatives do you hope to see with the candidates this year ?

“We are in such an incredible time in the connected fleet and mobility era and companies have really pushed the envelope in the past decade on the TCO front...so as 2020 is upon us I really expect and hope to see disruptors in 3 areas: Safety, EV adoption and Carsharing initiatives.”

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Safety Fleet 4 European Manager of the Year

IT COULD BE YOU!

Almy Sousa Magalhães 2018 Global Fleet Manager of the Year

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FLEET EUROPE #108

visit summit.fleeteurope.com

SAFETY & AUTONOMOUS 6-31 8

6 Safety should get leadership support: International Fleet Safety Award winners share their safety programme implementation.

How to create a fleet safety policy Organisations need to resolve the internal conflict between their operational requirements and their duty of care to drivers if they truly want to create a safer fleet.

16 Don’t be starstruck Many companies use Euro NCAP as a benchmark for safety. As technology evolves, so do the safety criteria. Five stars yesterday could equal just four stars today, but what does it mean?

12 Why cybersecurity needs your attention: Cars are being connected, their data gathered and sent over the cloud.

But how safe is this all?

19 Keep an eye on safety rules and regulations European roads are still the safest in the world, but after years of consistent reductions in road deaths, progress has stalled in recent years.

That’s about to change.

24 Solving the autonomous equation Shilan Demir, Programme Manager of Zenuity explains how fully autonomous cars will become reality early next decade.

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28 Autonomous vehicles and the city

Fleets need more support to cut insurance costs: As premiums rise, larger fleets will move to self-insurance models unless advice helps reduce risk profiles.

What cities will look like once fully autonomous vehicles will have replaced our old-fashioned, unconnected, polluting cars.

30 How full autonomy will shake up insurance: When level-5 autonomy comes about, things will change and the liability question can get multiple plausible answers.

COLOPHON SALES: David Baudeweyns, Elke Leën, Daniel Savigny, Aline Verpoorten

FLEET EUROPE #108

CHIEF EDITOR: Steven Schoefs PROJECT COORDINATOR: Céline Gilson EDITORS: Benjamin Uyttebroeck, Dieter Quartier, Fien Van den Steen, Yves Helven, Frank Jacobs

MARKETING: Vincent Degives, Virginie Emonts, Benoit Delisse

CONTRIBUTORS: Daniel Bland, Stijn Blanckaert, Tim Harrup, Jonathan Manning, Mark Sutcliffe, Shane Curran

PICTURES: ©Shutterstock

PUBLISHERS: Caroline Thonnon, Thierry Degives LAYOUT: Cible - www.cible.be

TO CONTACT OUR TEAM: FirstletterfirstnameLastname@nexuscommunication.be 4

LAST MILE 34

Mercedes-Benz Vans go electric Electric is the way to go. Markus Denzler, Head of the Global Key Account Management presents Mercedes-Benz Vans’ plans to translate that new direction into commercial success.

SHARED MOBILITY

36 Micro mobility, Macro safety: New mobility modes, from scooters to e-bikes, bring new safety issues. Find out what is being done to avoid incidents.

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European start-ups for shared mobility Shared mobility is booming. Big American tech companies were the first to conquer the market, but European start-ups are disrupting the scene from the inside.

FINANCIAL MODELS 38

Cash, car or something else?

More than ever, the company car is being depicted as one of the greater evils of today’s world. Change is in the air and it’s time for cash allowances to come back on the agenda.

CONNECTED

40 The relevance of telematics cannot be underestimated: The 2019 Connected Fleets Conference gathered almost 100 experts.

An event that calls for a sequel.

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REMARKETING 48

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ADAS for all, at all costs The EU is making several Advanced Driver Assistance Systems mandatory from 2022, reducing the number of severe road accidents, but increasing the average vehicle price.

Fresh data shows used-EV boom Poor RVs used to be a major drawback for EVs. But as a fresh batch of Autorola data shows, there’s never been a better time to remarket your EV than today – except perhaps tomorrow.

We also focus on these channels on our website.

Read all these selected articles here:

EVAP and ISC could cause more homologation delays: Just when you think things cannot become more complicated, Europe amends the Euro 6d emission standard.

50 Fleet Europe Awards 2019: Also this year the Fleet Europe Awards aim to reward your most innovative achievements. This is your chance to get the recognition your company deserves.

FLEET EUROPE

COURAGE MOVES YOUR BUSINESS FORWARD

The All-New ŠKODA SCALA www.fleeteurope.com • Fleet Europe Magazine • @Fleet_Europe • FleetEurope • contact@nexuscommunication.be 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 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.

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SAFETY

SAFETY SHOULD GET LEADERSHIP SUPPORT Tim Harrup & Benjamin Uyttebroeck

@uytteb

Corporate Social Responsibility, looking after the company’s employees, company image… and just plain common sense. Fleet safety has moved right up the ladder over recent years, but it doesn’t just happen on its own. We spoke with representatives of three companies that won the International Fleet Safety Award: Philip Morris International (2014), British American Tobacco (2016) and Heineken (2017).

WHAT ARE DRIVERS NOT ALLOWED TO DO? • Texting is prohibited.

• The basic requirement is to comply with all applicable laws.

• Distracted driving may also include eating or drinking behind the wheel so address those as well.

• Whatever the law, ban any handheld device.

• Limit calls to incoming calls. Consider a system that prevents the use of a telephone while driving (with an override button in cases of emergency).

PHILIP MORRIS INTERNATIONAL: A BALANCING ACT

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Mr Csiszko acknowledged that safety is gaining more importance and is part of a much wider process: “Safety has become part of the sustainability agenda, sustainability and corporate social responsibility have created a movement which has repositioned safety along with all social issues. Society at large (consumers, shareholders and the public) is more demanding than before and the way companies operate requires better processes and transparency.”

To achieve all of this, plans have to be drawn up. Mr Csiszko told us that drawing up a good policy is a balancing act. You have to balance feasibility, requirements, technologies, expected behaviour and finances. But most importantly the value of a policy is to what extent people apply it. This is true for both local managers and drivers. So this is why it is necessary to focus on the people first.”

“The policy must be in line with the company values. The very first step is to get leadership support behind fleet safety, and the rest will follow,” he added.

“Telematics and technology evolve really fast but the human factor remains the core.

Driver behaviour is the key, particularly since our drivers are lonely workers. They are on the road alone, so building a culture is especially important for us.”

That’s why the safety policy at PMI focuses on a mix of vehicle selection, leadership, telematics and driver training.

2014

International Fleet Safety Award

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Csaba Csiszko, Global Head of Health & Safety Sustainability, Philip Morris International.

25,000

vehicles on the road worldwide

BRITISH AMERICAN TOBACCO: KEEP STANDARDS UP Ms Baptiste-Destouche: “If a company has fleet vehicles in many countries, the ideal is to afford the drivers the same levels of safety as if they were in the most sophisticated countries. The countries themselves may have different safety standards, but the company has to keep standards up.”

Make sure there is regular collection and analysis of statistics, with results going right to the top of the company. Ms BaptisteDestouche says that it is important to make sure any departments of the company which may have an input, see the figures.

Reporting accident statistics alongside financial data is another way of making everyone in the company (and outside of it) realise just how important safety is to the business.

There is another pragmatic part of this, as Ryan Mortimer makes clear: “Understand what the business requires from the fleet, fleet and safety are not in a silo of their own. The fleet is there for a purpose, not as

a self-standing department. Make sure the managers understand why the fleet policy is drawn up the way it is.”

And make sure new employees actually have a valid driving licence – especially in countries where these can be bought.

Velma Baptiste-Destouche, Global Health and Safety Manager, Group Environment, Health and Safety, British American Tobacco

2016

International Fleet Safety Award

25,000

vehicles on the road worldwide

Ryan Mortimer, Global Category Manager, British American Tobacco

HEINEKEN: HELPING DRIVERS MAKE THE RIGHT CHOICES

“Safety needs to be carried from the top down. The first thing that I would do if you want to improve safety in your company, is have a conversation with the CEO and the executive team and ask them: ‘Why should safety improve? What do you want to achieve? Where do you want to be three years from now? What are you willing to do for this?’”

“We implemented telematics with the aim to start understanding driver behaviour because we see that the vast majority of accidents is caused by choices the driver makes while driving.”

“Those choices are influenced by many things: the pressure to deliver, the vehicle type, a private situation, fatigue, …

The company leaders play a key role in understanding these pressure points, to make sure that we create a working environment in which the choices a driver makes are by default the safe choices.”

When drivers perform poorly, Heineken safety coordinators who are very close to the fleet and to the driving community talk to the drivers to find out what is going on.

“It is important to understand this before taking any further action.”

Wouter de Gier, Director Global Safety, Heineken

“Typically, telematics dashboards are configured to inform fleet managers of bad driving habits. This drives to disciplinary conversations. We see the need to work with telematics vendors to help them understand how they can visualise the data in a way that this conversation changes from a negative to a positive conversation.”

2017

International Fleet Safety Award 7

18,000

vehicles on the road worldwide

FLEET EUROPE #108

“Heineken’s focus on safety isn’t new but the challenge is to embed safety in the regular business processes,” said Mr De Gier. “Safety is not the responsibility of the safety department. Safety is a leadership topic. By handing the ownership to the business where it belongs, you can achieve a substantial risk reduction and consequently improvement your safety performance.”

SAFETY

HOW TO CREATE A FLEET SAFETY POLICY Jonathan Manning

Organisations need to resolve the internal conflict between their operational requirements and their duty of care to drivers if they truly want to create a safer fleet.

The establishment of a driver safety policy often creates tensions within organisations, impacting business operations and demanding money from tight corporate budgets. The return on investment takes time to filter through.

Implemented successfully, however, a safety policy is not only the right thing to do, but also delivers significant returns on the initial investment, cutting crash costs, lowering insurance premiums, and reducing fuel and vehicle maintenance bills.

As with all opportunities, fleet safety requires hard work and commitment. If it were as easy as choosing an off-theshelf policy, every fleet would be doing it.

Andy Price, director, Fleet Safety Management, said: “I always recommend to fleets not to adopt an off-the-shelf safety policy. It never fits with the reality that the organisation finds itself in. There are usually conflicts between what that organisation is doing operationally and what the safety policy says, and whenever that happens operations is going to win.”

FLEET EUROPE #108

Analyse insurance records As a prelude to setting up a fleet safety policy, he advises fleets to analyse crash data from the past three to five years, even if the most common collisions are easy to predict. Low speed manoeuvring is likely to top the list of crashes, followed by hitting a

Managers need to discuss driving performance with company drivers in regular meetings.

third party in the rear. The challenge is to work out why these collisions are happening.

“The driver could be driving too fast, too close to the car ahead, or be fatigued or impaired. And there could be underlying reasons why they are driving like that; they might have to make an unrealistic number of deliveries, or a sales person is not hitting his target at the end of the month and is trying to do more calls,” said Price.

Two keys to success Successful road related risk management strategies share two key factors – the unequivocal support of senior

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management and the development of an on-road safety culture, said Price.

“It’s talking about safety in meetings, it’s talking about safety with managers, it’s including safety messages in newsletters, emails and the intranet site. All of these have to happen all of the time,” he said.

“Plus it’s consistency – if the best salesman or a senior manager has a crash, the same debrief has to happen. As soon as it stops, things start to slide.”

This sustained attention also applies to the fleet safety policy itself, which should not be carved in stone and

IN-VEHICLE COACHING Real-time feedback to drivers, based on telematics monitoring of their driving style, can have a dramatic impact on behaviour. Systems such as Masternaut’s in-cab coaching device give instant audible and visual warnings when they detect harsh acceleration and braking.

Fleet safety policies should tackle the risk of distracted driving.

Speaking at a fleet event organised

by Brake, the road safety charity, Louise Shannon, director, Road Safety Prospects, said driving for work policies should include issues such as the disclosure of driver medical issues and medications, commutes, working patterns and eyesight tests.

Set clear expectations for your drivers With echoes of JFK’s famous inauguration address, ‘Ask not what your country can do for you, ask what you can do for your country,’ Jim Noble, vice president of risk engineering, eDriving, said employers should not only be creating policies that set out what is required and expected of drivers,

but also explaining the purpose of the policy, the risks that drivers face, and the corporate responsibility to keep drivers safe and ensure they return home safely at the end of every day.

He emphasised the need to confirm formally that drivers understand a safety policy, and that they know how to carry out any procedures contained in it. In the event of a crash, for example, drivers have to be aware of how soon they need to report the incident, to whom they report it, and what details and photographs they should capture at the scene.

One way to verify that drivers understand their responsibilities is to require them “to undertake an online module with policy-based questions that determine their level of knowledge and understanding. They would also be

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required to complete a formal pledge that would confirm their commitment to these policies and procedures,” said Noble.

DRIVER TRAINING Improving driver behaviour through training follows two paths, typically depending on the time and resources available to fleet and driver.

Face-to-face, in-vehicle training is the premium product, typically reserved for drivers identified as being at higher risk. Online e-learning modules, from companies such as DriveTech, can address individual areas of risk, such as hazard perception, distracted driving, and speeding.

FLEET EUROPE #108

left to gather dust on the company intranet site, but instead be a document that evolves to reflect new risks.

SAFETY

Analysing data to identify risk An employee’s induction is also the ideal time to conduct a risk assessment, via online profiling, to establish their attitudes to driving, said Colin Paterson, head of marketing, DriveTech. This profiling can identify low, medium and high risk drivers, at which point a combination of budgets and pragmatism determines the action to be taken. Typically higher risk drivers will receive face-to-face training, while medium and low risk drivers will undertake targeted online training.

CLAIMS AS A SERVICE

“Then you need to keep it live by focusing on safety in other communications and revisiting drivers at least once per year with a menu of options from online learning to in-vehicle training,” said Paterson.

For 1,000-vehicle fleets, Zurich Insurance said CaaS is:

A new report by Zurich Insurance reveals how Claims as a Service (CaaS), based on telematics data and analytics, is proving far more valuable in cutting claims costs than simply reducing incidents of harsh acceleration, braking and speeding. CaaS is helping fraud investigation, by indicating whether injury was likely at the speed of collision. It’s also helping insurers to build an accurate picture of what actually happened in a crash, and by swiftly establishing liability, claims can be sped up, which lowers costs. CaaS is also valuable in resolving cases of mistaken identity, providing a robust alibi for drivers not involved in a collision, which would normally involve costly investigation.

• delivering average annual savings of ¤320,000; • saving between ¤5,750 and ¤383,000 per claim in litigation cases; • making ¤124,000 in personal injury savings; • and saving ¤110,000 in split liability cases.

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FLEET EUROPE #108

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ADVERTORIAL

CONCEDED EDITORIAL SPACE

HOW MOBILEYE’S ARTIFICIAL INTELLIGENCE CAN HELP KEEP YOUR FLEET SAFE Most people have only a vague understanding of the Artificial Intelligence (AI) that drives Collision Avoidance Systems (CAS) – leading to distrust. Time to lift the veil.

But making a computer ‘see’ is not as simple as hooking it up to a camera.

This is where Mobileye’s experience comes in. The company’s focus is on developing AI that can reliably tell the difference between a stopped vehicle and a moving one; between a pedestrian and a traffic sign; and between getting too close to the vehicle ahead and getting stuck in heavy traffic.

That level of learning took 20 years to acquire; plus the collection of 200 million miles (322 million km) of driving footage against which to stress-test Mobileye’s algorithms. That incredible volume of real-life experience has been the AI’s education, its lessons now branded into the EyeQ® chip – part and parcel of Mobileye’s CAS. Mobileye’s experience and expertise has translated into deep trust and broad acceptance of its AI technology by the market. And, this technology

is getting even better. Mobileye’s next-generation chips are expected to learn from each other and crowdsource that knowledge. For example: cars equipped with Mobileye CAS would be able to share real-time information about traffic and weather conditions with other such cars via the cloud.

machine-learning high-tech, making drivers safer and their fleets more cost-effective. It’s an exciting journey, and Mobileye is proud to lead the way.

In other words, Mobileye-equipped vehicles would quietly send data to the cloud, with no human intervention required (so drivers can stay focused on the road). Meanwhile, the AI would adjust for weather conditions, for example by taking into account that rainy weather implies greater stopping distances when braking.

But AI benefits are about more than traffic and weather. AI can learn about driver behaviour and react appropriately. For example: following more lane departure warnings than usual, it might advise the driver to take a rest.

AI is not magical, but something even more wonderful: road-tested,

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More info www.mobileye.com

FLEET EUROPE #108

Take Mobileye’s CAS: based on the same principle that allows humans to drive – vision. Only, computers can do it better. On long drives (and on some shorter ones), we tend to get tired, bored or distracted. But CAS are as focused during the 8th hour of a long drive as during the first – and any time in between. They’re also never tempted to look at the text that just came in from their best friend.

©Mobileye

As Arthur C. Clarke once said, “Any sufficiently advanced technology is indistinguishable from magic.” That certainly applies to CAS. Since their emergence, they’ve been enthusiastically adopted by corporate fleets because of their proven, positive effect on fleet safety. But they also continue to baffle both drivers and fleet managers. Magic? No: the truth is even better.

SAFETY

WHY CYBERSECURITY IS EVERY FLEET MANAGER’S BUSINESS Benjamin Uyttebroeck

@uytteb

Vehicles are being connected, their data gathered and sent over the cloud. Self-driving technology is within reach. But how safe is this all? How real are cybersecurity risks?

JEEP HACKING In the summer of 2015, hackers managed to take over control of a Jeep Cherokee. They blasted cold air at maximum setting, switched the stereo to a different radio station, turned on the windscreen wipers and even showed a picture of the two hackers on the car’s display.

After some time, they cut the transmission, forcing the car into an emergency stop.

Hackers can take over your car, but your vehicle data is probably more at risk.

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Cybersecurity is like accounting – even if you’re not an accountant, you have to know something about it and you can’t leave it completely to the specialists.

That’s the view of Dan Massey, Director of Technology, Cybersecurity and Policy Programme and Professor of Computer Science at the University of Colorado Boulder. He is also a member of the Neutral Vehicle Consortium.

Hacked vehicles may make for spectacular headlines, the real risk is in hacking vehicle data, says Dr Massey.

“The entire telematics industry is built on the idea that data is very powerful, and I support that. I think you’re missing out if you don’t use telematics. But if it’s tremendously valuable for your

business, it can also be tremendously valuable to your adversary.”

The car was driven by a journalist, Andy Greenberg, who had agreed to be a digital guinea pig to Charlie Miller and Chris Valasek, two cybersecurity experts. No one was injured in the incident. As a result of this incident, FCA issued a recall for 1.4 million cars.

Hacking a vehicle His colleague Dvir Reznik, who is Head of Marketing at Harman Connected Automotive, agrees. He does point out, however, that taking over control of a vehicle is a tremendous risk: “If I steal your Facebook login, I get access to your account. But if I manage to get access to a vehicle, I have a very powerful asset in the physical world that I can do whatever I want with. I can basically take that vehicle and run it into a power station.”

Dr Massey believes it most likely won’t come to that. “You have to look at the

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Hacking data is a bigger risk than hacking vehicles. motivation for the attacker. I can see a way for criminals to make money off your data. It’s far less likely that someone could make money off gaining control of a vehicle.” According to Dr Massey, that leaves nation states that target adversaries and hacktivists that

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SAFETY

want to make a point as the main risks in this respect. He concludes: “It could be done, but the question is why someone would want to do this.”

100% security “100% security and safety is not possible and if anybody tells you differently they either don’t understand security or they’re lying to you,” said Dr Massey. Nevertheless, cybersecurity in automotive is making great strides forward. Mr Reznik compares it to aviation, where technology has improved safety to the point where crashes have become extremely rare. “We’re not there yet for automotive cybersecurity,” he said, “but we’re getting there.”

Even with limited risks, you need to prepare for anything that can occur. “You really need to shorten your response time,” said Mr Reznik.

Processes should be in place that can quickly be activated to patch whatever problem you encounter.

“Your job is to mitigate that risk and to decide what’s an acceptable level of risk,” added Dr Massey. “If you’re a small package delivery company, you don’t need to put on a level of security that’s equivalent to a nation-state organisation.”

Open vs closed

FLEET EUROPE #108

When discussing cybersecurity, opting for closed systems can be an attractive proposition. That’s not necessarily a good idea, said Dr Massey. Firstly, you probably have vehicles from more than one OEM in your fleet and you want to be able to process each OEM’s vehicle data in a similar way. Closed systems can make that more difficult. “It would be so much better if we simply had a common format to begin with,” said Dr Massey. “Imagine your telematics company goes out of business. If they have a proprietary system, that’s a very non-trivial process.”

Various companies, like the Spanish GantaBI, are offering workarounds to translate non-compatible data flows into data that make sense, using artificial intelligence and machine learning. That additional step makes things more complicated, though. “You are selling the product and somebody else is selling a workaround to fix what they see as flaws,” commented Dr Massey.

Dvir Reznik, Harman: “If someone hacks your vehicle, he has access to a powerful asset in the physical world.”

Dan Massey (University of Colorado Boulder): “I can see a way for criminals to make money off your data.”

TIPS FOR FLEET MANAGERS Fleet managers should speak with their cybersecurity experts and ask them the following questions.

BEST PRACTICES ARE OUT THERE AND ARE WE 1 WHAT FOLLOWING THEM? In the worst case, you want to be able to say that you followed all industry recommendations.

OUR APPROACH FOR PATCHING AND UPDATING 2 WHAT’S OUR SYSTEM?

Patches and updates will be needed, so you need to have processes in place.

WE DONE AN EXTERNAL ASSESSMENT OF OUR 3 HAVE SYSTEM?

You’re defending your system against outsiders, who will typically think of different strategies to force entry than your experts.

The distinction between open and closed systems is important for data processing, but Mr Reznik isn’t convinced it makes much of a difference for cybersecurity. “At the end of the day, even if you think you develop everything in a closed system, there are still millions of lines of code and you can’t see all of those as an OEM.” Indeed, a vehicle includes software for the base vehicle, software for ADAS and self-driving systems, software for infotainment devices, software for telematics services. Most are developed by different players, who often develop their products at a divergent pace.

14

Managed risk Both Dr Massey and Mr Reznik agree that cybersecurity risks are real, but they can be managed. Importantly, the benefits that can be derived from connected vehicles far outweigh the risks associated with connectivity.

It’s key to have processes in place for patches and updates.

2 0 1 9

NETWORK

6-7

LEARN

INSPIRE

EXPERIMENT

NOV. 2019 ESTORIL

REWARD

More information on summit.fleeteurope.com

SAFETY

SAFETY IS MORE THAN JUST ABOUT STARS @DieterQuartier

Many companies use Euro NCAP as the benchmark for safety.

As technology evolves, so do the safety criteria. Five stars yesterday could equal just four stars today, but that does not necessarily mean you are less protected.

ADAS systems help drivers to avoid accidents. That is why they are integrated in Euro NCAP’s star rating.

FLEET EUROPE #108

Everybody is familiar with the star rating of independent safety organisation Euro NCAP, which was founded in 1997. What you may not know is that it is a voluntary vehicle safety rating system. Models are either independently chosen by Euro NCAP or sponsored by the manufacturers.

Indeed, a Euro NCAP rating is not legally required for new models. To be allowed for sale in Europe, a car must be tested under the Whole Vehicle Type Approval regimen. The legal performance requirements for crashworthiness are less demanding than the ones applied by Euro NCAP. That implies that a car that just meets the minimum legal demands is not eligible for any stars. Also, a car with a poor Euro NCAP rating is not necessarily unsafe – it is just not as safe as its competitors that were rated better.

Likewise, a car without a Euro NCAP

rating is not by definition an unsafe choice. However, OEMs that do not sponsor a crash-test to get a Euro NCAP rating implicitly admit they are not at the forefront of safety technology.

Evolving standards In 2009, the safety organisation introduced the overall safety rating, based on assessment in four important areas: adult protection (for the driver and front passenger), child protection, pedestrian protection and safety assist technologies (active safety technology). For each aspect, Euro NCAP gives ratings in percentages. Using a specific formula, these translate into an overall star rating.

Today, the number of stars reflects not only how well a car performs in a crash, but also in crash-avoidance tests. Indeed, since 2016, the rating is also determined by the active safety

16

equipment the OEM offers as standard in each market, such as Autonomous Emergency Braking (AEB). In other words, a high number of stars means that the test result was good, but also that safety equipment on the tested model is readily available to all consumers in Europe.

A five-star car does therefore not necessarily offer better protection in the case of a crash than a four-star car. It’s just better at avoiding them.

A final tip: you can have existing cars retrofitted with active safety features, including forward collision warning, from specialists like Mobileye. This may be a solution for older vehicles or cars that cannot be equipped in the factory with such cost and possibly life-saving technologies.

FOUR SAFETY INNOVATIONS FOR YOUR FLEET RANGE ROVER EVOQUE: CLEAR SIGHT GROUND VIEW AND REAR VIEW Cameras in the front grille and on the door mirrors create a ‘see-through’ bonnet: they project a feed onto the central touchscreen to show what is ahead of and underneath the front of the car with a virtual 180-degree view. This allows for safe manoeuvring around obstacles. Another and even more valuable novelty is the Clear Sight Rear View Mirror. A rear-facing camera in the shark fin roof antenna feeds high-definition images onto the rear-view mirror. The driver’s view remains unrestricted by passengers or cargo in the back, while his field of vision is virtually widened. Finally, it offers better visibility in low light conditions.

A rear-facing camera in the shark-fin roof antenna feeds high-definition images onto the rear-view mirror.

VOLVO CARE KEY With this intelligent key, future owners of a 2021 model year Volvo can share their car safely and set a speed limit for themselves, their family members or friends. The launch of the Care Key follows the announcement that Volvo will limit the top speed on all its cars to 180km/h from 2020, in order to send a strong signal about the dangers of speeding. Beyond the potential safety benefits, features like a speed limit and the Care Key are also likely to offer Volvo drivers a financial benefit in the shape of a favourable insurance premium.

With a Volvo Care Key, owners can share their car safely and with a set speed limit.

BMW ACOUSTIC PEDESTRIAN WARNING The Bavarian OEM is revisiting the battery cell technology of its plug-in hybrid models in Summer 2019, enabling them to drive longer distances on e-power alone. At the same time, all plug-in hybrid models will be equipped with acoustic protection for pedestrians as standard. When driving on electric power, a specific sound is generated using a system of speakers. The sound produced at low speeds has been designed to announce the car’s presence acoustically without affecting acoustic comfort for its occupants.

BMW will warn pedestrians of approaching electric vehicles with a specific sound.

The revamped A4’s most interesting novelty is traffic light information. By networking with the urban infrastructure, this Audi receives information from the traffic light central computer so that the driver can adjust the speed to match the next green light. The instrument cluster displays a personal speed recommendation as well as the remaining time to the next green light whenever the driver is waiting at a red traffic light. As such, the system promotes an anticipatory hence safer and more efficient driving style.

The revamped Audi A4 receives information from the traffic lights.

17

FLEET EUROPE #108

AUDI TRAFFIC LIGHT INFORMATION

SAFETY

WHY YOU SHOULD INVEST IN ADAS

1 ADAS can prevent accidents and save lives.

Many of them come in Safety Packs or Driver Assistance Packs and offer good value for money, considering the direct and indirect costs they can help avoid.

2 ADAS lower your insurance premium.

Most insurance companies offer a discount on vehicles that come equipped with active safety technology like lane keeping assist and autonomous emergency braking.

3 ADAS can increase residual value.

In certain vehicle segments, the presence on a car of such features as adaptive cruise control and blind-spot warning can make a considerable difference in resale value.

4 ADAS should be available for all.

Innovation happens at the top, but the more cars are equipped with new ADAS, the faster these innovative safety features will trickle down to the lower segments.

5

ADAS pave the way to autonomous. As such, they play an important role

in increasing social acceptance of vehicles taking control over the steering wheel – today to assist the driver and avoid accidents, tomorrow to allow you to sit back and relax.

SAFEST VEHICLES IN CLASS Euro NCAP’s star ratings cannot be compared directly between different categories of vehicles. Moreover, the requirements for each star rating become tougher each year.

That is why every year, the organisation designates the ‘Best in Class’ cars showing which vehicles have performed better than their competitors.

• Large Off road 2018: Hyundai Nexo • Large Family car 2018: Lexus ES • Small Family car 2018: Mercedes A-Class

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FLEET EUROPE #108

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Combined fuel consumption and CO2 emissions according to the legislation of the concerned country

SAFETY

SAFETY RULES ACROSS EUROPE Mark Sutcliffe

European roads are the safest in the world by a significant margin, but after years of consistent reductions in road deaths, progress has stalled in recent years. That’s about to change…

EU countries are redoubling their efforts to standardise road safety innovations and enforcement across the continent in a concerted effort to reduce serious road accidents.After years of improving statistics, the numbers of deaths on European roads have hovered around 50 deaths a year per million inhabitants for the last five years – a fall of just 3% since 2013.

This trend continued in 2018 with a total of 25,100 fatalities in road accidents in the EU 28 – down just 1% on 2017.

Although road deaths have fallen by one fifth since 2010, the EU will miss its target of halving the 2010 rate of fatalities by 2020. Commenting on the new figures, Antonio Avenoso, Executive Director of the European Transport Safety Council (ETSC) said: “It’s very disappointing that road deaths in the EU hardly declined in 2018. However there are reasons to be optimistic for the future.”

FLEET EUROPE #108

“In recent weeks, the EU has finalised two important pieces of road safety legislation: updated minimum safety standards for new vehicles and a significant expansion of the scope for rules on infrastructure safety management.”

“EU member states will have to take bold action: increasing levels of enforcement, taking meaningful steps to address speeding, drink / drug driving and distraction and ensuring that vulnerable road users get the safe infrastructure they need, particularly in our towns and cities.” MEPs have voiced their concern over the lack of progress by backing demands for further step

Politicians and road safety campaigners aim to halve the accident fatality rate by 2030.

changes to be made to use the latest technology together with tougher enforcement to kick-start the down trend in deaths and serious injuries.

In response, politicians and road safety campaigners are preparing another decade-long campaign to halve the current rate of fatalities and serious injuries by 2030. In the longer term, the aspiration is to move towards zero fatalities.

Next steps

(a sort of centrally management ‘air traffic control for Europe’s roads’) are seen as making a positive contribution to further reductions in road accidents and fatalities.

How do EU member states compare?

With an average of 49 road deaths per one million inhabitants, European roads are the safest in the world, but the EU believes much more must be done to reduce the accident statistics.

In April, MEPs backed the adoption of new minimum vehicle safety standards which include the fitting of a range of safety systems on all new vehicles sold in the EU from 2022. New cars, vans, lorries and buses sold in Europe will be fitted as standard with Automated Emergency Braking which can detect pedestrians and cyclists, as well as overridable Intelligent Speed Assistance.

According to the ETSC, the UK, Ireland, Denmark and Sweden have the safest roads in the EU, while Romania, Bulgaria, Latvia and Croatia witnessed the highest numbers of fatalities. Some countries made significant progress, such as Slovenia with a 13% drop, Lithuania with 11%, Bulgaria with 9% and Slovakia and Cyprus with 8%.

The legislation also tackles drink driving, making it easier to retrofit an alcohol interlock device – a technological solution for tackling repeat drink driving in use in a number of EU member states. Safety campaigners predict that the introduction of this bundle of safety advances will cut the number of road fatalities by more than 1,500 a year across the EU by 2035.

Earlier this year, the ETSC published its Fitness to Drive flyer containing useful advice for company car drivers and their employers on how to stay safe on European roads.

In the longer term, the transition to autonomous vehicles and integrated transport management infrastructure

19

Rules of the road

Yet in terms of road safety, the rules of the road differ significantly across EU member states. Any driving licence issued by an EU country is recognised throughout the EU and more than 110 types of European driving licences are valid in the EU. The CIECA TEST Project found that the driving test procedure

SAFETY

licence granted by a second member state. There is growing awareness of this issue in the delivery and courier sectors, which rely on employment agencies or zero hours contracts to fill driving roles with migrant workers.

In a bid to close the ‘road safety gap’, which still exists between different EU member states, a new pilot project was launched early this year with the financial support of the European Parliament, focusing in particular on a number of countries who have to do the most to catch up with the European average. The EU Road Safety Exchange aims to develop partnerships between road safety professionals of different European countries and to address their specific road safety problems through sustained twinning activities.

Speed limits across Europe vary considerably but there is broad consensus on maximum motorway speeds with the exception of the unrestricted German Autobahns.

However, there are moves to reduce speed limits in residential areas in many states and even the Germans are considering imposing a maximum speed limit on the motorways. When it comes to drinking and driving, there is considerable divergence of what is regarded as a ‘safe’ level of alcohol in the bloodstream for driving across Europe.

BELGIUM

0.5

0.1

CYPRUS

50

FLEET EUROPE #108

0.5

Fatalities per million inhabitants

80

120 0.2

0.5

0.2

Max blood alcohol limits

0.0

120

50

0.5

130 0.0

Built-up area

0.5

Main road

20

0.0

51

80

50

130

ESTONIA

30

90

80 OR 100

0.5

DENMARK

62

50

77

90

50

CZECH REPUBLIC

100

CROATIA

88

90 OR 120

0.5

57

50

BULGARIA

52

130

The UK has clamped down significantly on the use of mobile phones while driving, doubling its fines for distracted driving in 2017, while Traffic Safety Netherlands has called for distraction to be punished as heavily as drink driving.Innovations such as Apple’s default ‘Do Not Disturb While Driving’ and similar apps for Android devices are likely to have a greater role to play in restricting company car drivers’ in-car phone usage in future.

Many countries enforce a ‘zero tolerance’ approach, meaning that even a moderate amount of alcohol consumed

45

100

Some analysts have attributed the plateauing of the accident statistics to increased use of mobile devices while driving and there is a growing enforcement focus on these sources of potentially fatal distraction.Using a handheld mobile phone while driving is illegal in all EU countries and the use of handsfree phones is also banned in some states, but the penalties and sanctions vary widely.

Speed limits

There have also been multiple recorded cases of cross-border licence fraud in which drivers obtain licences by deception in one EU member state and then attempt to exchange them for a new

50

Using phones while driving

The Freight Transport Association is working with Licence Bureau to devise a more robust means of checking the validity of driving licences in the UK.

differed significantly between countries and that not all elements required by the European Driving Licence directive are tested.

AUSTRIA

the night before could be enough to push a driver over the limit. The outlier here is the UK – although Scotland reduced the legal limit from 0.8g to 0.5g in 2014.

110

50

0.5

Motorways

0.2

Standard drivers

90

110 0.2

Commercial drivers

FRANCE

43

48

50

80 OR 100

0.5

120 0.5

50 (i)

0.0

120 0.0

50

90 OR 120

0.4

0.0

50

90 (i) 130 0.2

50 0.5

0.5

90 OR 100

120

40

0.0

50 0.5

50

120

50

-

50

0.2

0.3

70

80 OR 100

120 0.5

0.5

46

120

60

90

130 0.0

0.0

UNITED KINGDOM

32

50

0.5

SLOVAKIA

SWEDEN

110

110

31

0.0

0.0

90

NETHERLANDS

0.2

90

0.2

0.5

96

0.2

90 OR 100

130

ROMANIA

39

130

64

120

78

0.0

0.5

SPAIN

44

90 OR 110

90 OR 110

0.5

38

0.2

90 OR 100

50

LATVIA

MALTA

59

SLOVENIA

50

90

0.0

0.5

0.2

0.5

76

0.2

50

PORTUGAL

POLAND

60

120

60

130

130

55

LUXEMBOURG

61

64

ITALY

100

0.5

100

0.5

(0.2 bus drivers)

31

LITHUANIA

50

50

130 (iii) 0.5

0.5

64

80 OR 100

39

IRELAND

HUNGARY

50

90 OR 100 (ii)

GREECE

GERMANY

28

110 0.2

50 0.8

105 OR 115

(except for Scotland : 0.5)

115 0.8

(except for Scotland : 0.5)

Sources: • Fatalities: https://ec.europa.eu/transport/sites/transport/files/2019-04-04-2018-road-safety-statistics_memo.pdf, 2018 • Speed limits: AA • Maximum blood alcohol limits: ETSC (i) 70 on some important through roads. (ii) The upper limit applies to dual carriageways separated by a central reservation. (iii) The minimum speed in fast lane on level stretches of motorway during good daytime visibility 80. The maximum speed on urban stretches of motorway is 80 on the Paris ring road and 110 elsewhere.

21

FLEET EUROPE #108

FINLAND

SAFETY

FLEETS NEED MORE SUPPORT TO CUT INSURANCE COSTS Jonathan Manning

As premiums rise, larger fleets will move to selfinsurance models unless insurers, brokers and leasing companies provide advice and financial support to reduce their risk profiles.

With fleets facing sharp rises in insurance premiums, insurers, brokers and leasing companies are missing opportunities to help clients reduce their claims costs, according to a leading expert.

Last year Eelco van de Wiel, Managing Director of fi insurance, investigated 191 different fleet safety programmes and found the active involvement of suppliers in only a handful of cases. In the majority of cases it was the fleet developing the safety policy.

“As a fleet owner you are expected to invest in safety precautions and if the precautions work you may get a reward in the form of better terms,” said van de Wiel.

FLEET EUROPE #108

But the return on investment in safety training and technology can be slow to materialise due to insurers’ actuarial processes.

“Actuaries look in the rear-view mirror to determine what the future will look like,” said van de Wiel. “For the impact of any safety programme to be reflected in premium pricing it will have to be visible in those claims figures. Then you need to convince actuaries that any reduction in claims figures is due to safety measures and risk management, and not due to cyclical volatility – i.e. you’ve just had a good year.”

Self-insurance would see fleets pay for this kind of repair out of their own budgets.

The impact of Solvency II Historically it has taken a ‘catastrophic’ event to spur fleets into safety initiatives. The 2017 European directive, known as Solvency II, might prove to be just such a catastrophe.

The directive set minimum capital requirements for insurers, in relation to their risk profiles, in order to withstand any subsequent financial difficulties.

This has pushed up third-party liability premiums by between ¤100 and ¤200 per car per year in some countries, said van de Wiel. It has also led several insurers to withdraw from the fleet market, reducing competition.

where larger fleets (500+ cars) will investigate self-insurance, predicted van de Wiel.

Will fleets start to self-insure?

“If insurers, brokers and leasing companies stay passive, fleet owners will say there is no reward and no support for reducing claims costs, so they will ask, ‘why don’t we take the biggest part of the risk?’” he said.

“Before 2017 there was a much larger spread between the lowest and highest premiums, but post Solvency II the difference is much smaller,” he said.

Self-insurance would see fleets take on their motor risk in-house for third party and own damage claims – both are highly predictable – and buy insurance for extreme events where costs exceed ¤100,000 or even ¤1 million.

The benefit is that any savings from a successful safety programme pass immediately to the company’s P&L.

This means safety conscious fleets receive less payback for reducing the cost of their claims, while the penalty for accident prone fleets is smaller.

The result is an insurance market

“They would pay a fraction, about 20%, of their original insurance premium, and become immune to the traditional pricing cycles of the insurance market,” said van de Wiel.

22

He advised risk carriers, whether insurers, brokers or leasing companies, to avoid being considered as suppliers of a commodity and instead to advise and financially support clients to adopt better fleet safety policies.

Telematics cuts claims costs The one insurer that did feature regularly in his analysis of 191 safety policies was Zurich Insurance, which has encouraged its clients to adopt telematics tracking systems. In a new white paper published in May, the insurer said telematics has helped it detect accidents promptly, improve driver behaviour, and settle claims more swiftly, reducing the cost of claims.

As a result, it is now in a position to offer lower premiums for policyholders with telematics, compared to those without.

Eelco van de Wiel, Managing Director, fi insurance, predicts large fleets will self-insure.

Eric Scrayen, Director, VHS Insurances, sees new insurance challenges.

NEW INSURANCE CHALLENGES

1 AGENCY DRIVERS

“With an affinity scheme set up between an employer and broker, employees can join an employer-sponsored insurance scheme,” said Scrayen.

The rise of online deliveries has fuelled a requirement among logistics fleets for agency van drivers.

With no commitment to either the vehicle or insurance policy, agency drivers present higher crash risks.

This might include a facility for drivers to pay premiums directly through payroll, while the employer can rest assured that its drivers have appropriate cover with a good insurer.

One solution is to pass the risk on to the driver, said Eric Scrayen, Director, VHS Insurances.

3 EXPANSION INTO NEW MARKETS

“We have advised clients to set up an affinity scheme, where the contractor (the logistics company) sets out the terms and conditions of the policy, but the premium and/or the deductible will be based on the individual agency driver according to his loss statistics, his age, and so on,” he said.

Vehicle insurance in emerging markets can be problematic, with local practices and infrastructure preventing fleets from extending a globally-negotiated policy. New markets may not have nationwide repair networks or standardised claims processes, said Scrayen.

“The mechanism of bonus and malus on the premium level will also apply to the individual agency driver who will have to pay the premium. In this way, whoever owns the vehicle, the contractor is not at risk and has no liability.”

For example, fleets may choose to top up a local insurance policy with a second international policy that raises the personal injury threshold of claims.

This means that if one of their employees is injured in a collision, the compensation would be significantly higher than a local policy would pay out.

MOBILITY ALLOWANCES

As company car drivers switch to mobility allowances, employers face the risk of staff driving private cars for business without adequate insurance.

23

FLEET EUROPE #108

2

“My advice is to have a look at what would be the best local solution and then evaluate if it’s possible to cope with it from pan-European perspective,” he said.

AUTONOMOUS

WE CAN’T WAIT UNTIL WE HAVE SOLVED EVERYTHING @DieterQuartier

If you ask Zenuity, fully autonomous cars will become reality early next decade. To get there, we need ‘supervised’ autonomous driving and perfecting along the way, as Programme Manager Shilan Demir explains.

“To make the car understand all the things that are happening and consequently make the right decisions, that is the biggest challenge,” explains an enthusiastic Shilan Demir, whom Fleet Europe met during Volvo’s Safety Moment in Gothenburg on 20 March.

“We must also find a way of proving the system is absolutely safe. However, the only way to get further is to define all the challenges along the way. We cannot wait until we have solved everything.”

How do you see autonomous driving taking shape? Do we need different steps to get there?

SD: “Indeed. Developing autonomous driving might require a totally different approach than developing ADAS, when you take the driver out of the loop. In any case, it will be a stepwise evolution.

It will also demand new infrastructure, new business models while unlocking more collaboration with competitors.

We must put all data and learnings together to the benefit of all instead of everyone doing their own thing.”

FLEET EUROPE #108

Isn’t the big challenge to make autonomous vehicles co-exist with non-autonomous vehicles?

SD: “I don’t believe so. In designing our AD system, we always considered a step-by-step scenario. We have to make it work in the reality of today, which means a majority of non-autonomous vehicles. We are not building a

product for a future of which we don’t know when it will exist.

Our approach is basically to work on scenarios for the safety cases based on today’s traffic. That means the car needs to have ‘eyes in the back of its head’. If the car knows what is going on, it will be autonomous.

In the opposite case, it can’t function. Along the way, the car learns by being in actual traffic. That’s what artificial intelligence is all about. In traffic we can expand the operational design domain.”

So the car won’t be perfect in the beginning?

Shilan Demir is heading the first industrialised Autonomous Driving Programme at Zenuity. She has been leading new innovative programmes and projects throughout her entire career, mostly at Volvo Cars. She has a mechanical engineering background with a huge passion for society. Shilan is also involved in Engineers without Borders and founder of Openhack, a non-profit startup using open source data to make solutions that benefit society.

SD: “We have to focus on the customer benefits of autonomous cars, even in the early stages. It puts a lot of pressure on the safety work, because we must ensure nothing can go wrong. That means an autonomous car will not go faster than what it can see, so to speak. Again, being aware of the surroundings is an absolute must. That will be the technical limitation of autonomous cars in the beginning. But they will be safe.”

When autonomous cars come to market, will they be ‘conditionally’, i.e. level 3 or 4 autonomous?

SD: “Instead of level 3, 4 or 5, we prefer talking about supervised and 24

We are not building a product for a future of which we don’t know when it will exist. Our products will work on the roads of today.

Zenuity wants to be one of the top 5 software providers for autonomous driving.

unsupervised autonomous driving.

The big challenge is of course the unsupervised driving. You take the driver out of the loop for this specific design domain. When everything is right and the car is in a scenario it can identify, then it drives itself. The more scenarios it recognises, the more unsupervised a car can drive.”

Supervised driving implies a risk of over-reliance. Should we not switch to unsupervised/level 5 ASAP? SD: “There is indeed a risk of people putting too much trust in the system and getting distracted or even falling asleep behind the wheel, as research shows. That is why some OEMs are focusing on driver monitoring to make sure the driver stays alert. The driver remains responsible at all times in a

Studies show that people don’t really trust self-driving cars. Are you worried about social acceptance of AVs? SD: “Not really. Yes, you need to build trust. Interestingly, there is a difference between people who drive today and the new generation, who are less inclined to get their driving licence, let alone buy a car. They grow up in an environment where software and AI are commonplace and all they want is convenience. They are basically waiting for autonomous ridehailing to happen.”

What is your wish for the future?

SD: “There are not many companies that focus on safety like Zenuity does.

When you say Zenuity in the future, you will know it is safe software and not just any software. That’s my wish for the company. In my dream world, nobody will have a personal car anymore. When you need one, you just summon one.”

25

ZENUITY FACT SHEET • CORE BUSINESS: development

of software for driver assistance systems.

• OWNERSHIP: joint venture

between Veoneer (an Autoliv spin-off) and Volvo Cars, founded in 2017

• STAFF: 650 in five countries:

Sweden (Gothenburg), Germany (Munich), USA (Detroit: development; Santa Clara: tech scouting), and China (Shanghai).

• PORTFOLIO: from entry-

level Euro NCAP features to premium, autonomous driving and cloud services.

• AMBITION: becoming one of

the top 5 software providers for autonomous driving.

FLEET EUROPE #108

We must put all data and learnings together to the benefit of all instead of everyone doing their own thing.

supervised autonomous car, which thanks to the advanced driver assistance systems can save many lives by avoiding accidents. Only when we switch to unsupervised AD does the liability transfer to the OEM.”

AUTONOMOUS

THE ROADMAP TO AUTONOMOUS

Waymo is the biggest player today, already having driven over 13 million test kilometres.

Who’s taking the lead in ‘autonomous’ and when will cars take full control? Tip: it’s not Europe, and it might be sooner than you think.

FLEET EUROPE #108

As much as European OEMs excel at assisted driving and safety, the Old Continent is not the place to be to develop self-driving cars. Both the US and China produce more and better research into autonomous driving technology than Europe, which is being strangled by EU regulations.

On the one hand, there are the carmakers, on the other there are the tech companies. The former know how to build cars, the latter how to develop AI – they basically need each other – for now.

Adding up investments by OEMs and tech companies, autonomous-driving research this year is estimated to be ¤55 billion, up from around ¤6 billion just three years ago. Most players aim to have autonomous technology commercially available by the early 2020s.

Partnerships and plans

A poignant example is the Audi A8.

When it was presented at the IAA in Frankfurt about two years ago, Audi proudly announced its flagship model was the first to feature level 3 autonomy. It was reportedly able to drive by itself on motorways at speeds of up to 60km/h, but EU law and other elements prohibited Audi from launching the feature.

Self-driving pioneer and Google affiliate Waymo is the biggest player today.

It has driven over 13 million test kilometres in about a decade, mostly with hybrid Chrysler Pacificas. Last April, the company announced it would be working together with Magna in Detroit to turn Jaguar I-Paces and Chrysler Pacifica Hybrid minivans into Waymo level 4 autonomous vehicles.

US and China blaze the trail

Last year, Volvo signed an agreement with Uber for the sale of up to 24,000 XC90s that ought to become part of the American ridehailing firm’s robotaxi fleet. GM and Ford are both working with competitor Lyft.

Neither the US nor China are bound by vehicle regulations or traffic rules as restrictive as Europe’s. There is a lack of uniformity, though. Initiatives are local because the permits are local, making it difficult for the industry to apply its innovations globally.

26

The most ambitious – and perhaps over-confident – actor in the robotaxi scene is Tesla. CEO Elon Musk said his company will launch its first self-driving taxis on US roads next year, adding that Tesla will probably manufacture cars without a steering wheel or pedals by 2021.

In China, VW has teamed up with Didi, whereas Ford and Volvo closed an agreement with search engine operator Baidu – the Chinese Google, if you wish – to develop autonomous vehicles. Still this year, Ford will be operating self-driving cars on designated roads in Beijing and possibly other Chinese cities. The vehicles will be capable of operating autonomously in certain conditions by the time the 2-year project finishes development and testing.

Volvo cuts Baidu some more slack. The Swedish carmaker wants to market electric robotaxis for the Chinese market “somewhere after 2020”, according to CEO Håkan Samuelsson.

He said in June 2018 that autonomous cars should generate a third of Volvo’s global sales by 2025.

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AUTONOMOUS

AUTONOMOUS VEHICLES AND THE CITY Yves Helven

There are many oracles on the internet, describing what cities will look like once fully autonomous vehicles will have replaced our old-fashioned, unconnected, polluting cars. Often illustrated with fancy artist renderings that remind us of science fiction films from the 60s.

Transport and delivery According to Bloomberg (“Taming the Autonomous Vehicle,” Bloomberg Philanthropies), long-haul trucks might very well become the first widely automated fleets. Savings could be made by reducing labour cost, obviously, but also by a technique called platooning.

Platooning refers to a train of trucks driving at high speed, but very close to one another, thus saving fuel cost.

Bloomberg might be right in the US, but perhaps a different business case is to be made for autonomous in Europe.

The e-commerce business growth in Europe is being limited by the city infrastructure, with its narrow, curvy streets, cyclists and its occasional canals, not to mention its taxation and its determination to remove cars as much as possible. The e-commerce industry is looking into electric and autonomous for survival reasons: growth will only be possible if the cost of logistics can go down and its efficiency can improve.

AV ownership

FLEET EUROPE #108

This leads to the next question: will consumers buy and own autonomous vehicles? Let’s look at an extreme example: in Mumbai, a monthly salary for a private driver is just a couple of hundred dollars a month. Does it make sense to invest in an expensive autonomous car, if you can afford a driver?

McKinsey has an interesting view on the matter. In its 2016 “An integrated perspective on the future of mobility”, McKinsey considers three types of cities or models:

• A clean and shared system, for cities such as Mumbai, with a focus on clean mass transportation • A private autonomy system, for cities such as Brussels, Paris, Amsterdam.

The private car remains a central element, but electric and autonomous make its usage more convenient, safe and cheaper • A seamless mobility system, for cities such as Singapore. A technologically advanced mobility ecosystem offers door-to-door, on-demand and multimodal services. No car ownership in this model Car ownership has become part of Western culture – in the US even more than in Europe. Even taking into consideration technological and generational change, many mobility specialists agree with McKinsey and say that Americans and Europeans will probably continue owning vehicles. But many analysts a century ago predicted that we would continue owning horses… We didn’t.

Shared economy, blockchain and other good stuff Compared to Europe or the US, digitisation in Asia has happened in a completely different way. We have known the first room-filling computers, then evolved to home computers or PCs, then started using laptops before we went online on our mobile phones or tablets. Most Asians, however, started using internet for the first time on their mobile devices and have skipped all previous steps. The reference form factor in Asia is a smartphone.

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On-demand, which basically means “I need it here and now”, is how Asia has worked for centuries. The concept of supermarkets, for example, has been introduced only a few decades ago by Europeans and Americans to Asia. Locals didn’t see the benefit of a Costco or Metro type of mega-market because everything was always home delivered, from food to services.

In other words, on-demand was the norm.

Let’s bring both concepts together in the mobility ecosystem: Asians

CITY BENEFITS Without resorting to sci-fi images of future cities, let’s consider a few immediate advantages for cities that welcome autonomous vehicles.

• The end of downtown parking.

Cities are already reducing the number of parking spaces, mostly to reduce pollution and make city centres more liveable. Implementing autonomous vehicles could reduce the need for parking spaces without impacting mobility overall.

• Choreographed traffic.

Connected autonomous vehicles can decrease congestion via optimised routing and even better, by anticipating the mobility needs of the passengers.

Coordination between traffic, city grids and autonomous vehicles will reduce traffic jams and avoid accidents.

• Public transit. Autonomous

transit solutions (self-driving people carriers) can solve the gaps that have been created by a trend of cost-cutting in public transport.

• Access to education and

are skipping vehicle ownership and are moving directly to on-demand mobility. Translate this into technology: blockchain and shared economy appear.

The new user Even in car-dependent nations, such as the US, the number of people with driving licences decreases. In 1983, 80% of all 18-year olds had a licence; today, only about 60%. From a mobility perspective, these non-licenced people enter the same growing demand group as senior citizens

and the disabled users. Not only will autonomous vehicles allow this group to access mobility, it will also increase their consumer needs. Especially where the population is ageing dramatically (Europe, Japan,…), it’s essential for businesses to make sure these people continue spending money. Autonomous vehicles will be a major tool to achieve this.

In terms of timing, it might still take a couple of years before autonomous vehicles become available and useful to the consumer. It is clear, however,

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that the business case for autonomous tech makes sense for certain parts of the population, the logistics industry and for cities. As technological developments move fast and the need for better solutions is becoming urgent, regulators should be motivated to start changing the shape of cities.

FLEET EUROPE #108

Truck trains could be the first autonomous vehicles on the roads.

At least in the US.

health care. Autonomous technology can help less mobile users reach centralised schools and hospitals.

AUTONOMOUS

HOW FULL AUTONOMY WILL SHAKE UP VEHICLE INSURANCE @Frank_J_Jacobs

FLEET EUROPE #108

In a fully-autonomous vehicle ecosystem, the liability question can get multiple plausible answers.

When level-5 autonomy comes about, all things auto will change radically.

“The weight of liability will shift from drivers to a number of other parties,” predicts Thomas Pottebaum, Director at Deloitte Germany. Not everyone shares his vision, though.

Traditionally, car insurers focus their attention on the vehicle itself and, by extension, the driver. After all, more than 90% of all traffic accidents today are caused by human error. But in a fully-autonomous vehicle ecosystem, the liability question can get multiple plausible answers.

Who’s to blame?

Accidents will become much rarer than they are today. But if something does go wrong with a fully autonomous car, who is to blame? Is it the OEM? The software developer? The lease company that provides the vehicle, and perhaps failed to service it properly? Or maybe still the vehicle’s user – if they forgot to download a crucial software update?

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“At some point in the future, it will be possible to determine with detailed, rock-solid evidence whether it was a systems failure (manufacturer responsibility), whether autonomous driving functionality was turned off (meaning the driver was at the wheel) or whether the malfunction was due to insufficient maintenance of ADAS (fleet operator responsibility),” predicts Mr Pottebaum.

Black box Until then, he foresees a ‘black box’ similar to those being used in the airline industry: “If there’s been an accident, there needs to be a system of log files that can clarify the responsibility question.”

The arrival of high-level autonomy will induce a major pivot in the car insurance industry’s orientation: from a B2C to a B2B model. Insurers, who traditionally focused on vehicles – and by extension their drivers – will go where the liability questions lead them, and contract with level-5 fleet operators (and vehicle owners), especially for third-party liability, and even with the manufacturers of level-5 autonomous vehicles.

“Last but not least, there will likely be new ‘risk-taker’ structures, with fleet operators taking the risk of a certain damage limit per vehicle on their own balance sheet and insurance covering only high-damage exceptions,” Mr Pottebaum projects.

Present system Not everyone concurs with this vision.

At Daimler, the idea is that liability in a fully-autonomous future will be more contingent with the present system.

“A lot of European countries – and some US states – have as a general principle that the registered owner of a vehicle can be held liable for any damage caused by that vehicle,” explains Daniel Blatt, spokesperson for Daimler. “In Germany, for instance, this is the basis for the principle of operational risk (Betriebsgefahr), and it applies regardless of fault (or strict liability).”

Under this system, drivers are co-responsible, and are also liable for damage if they fail to fulfil their duty of care and cause an accident. Presently, also the manufacturer is liable, if damage occurs due to product defect.

“The liability model has stood the test of many automotive innovations, and under the current legislation looks set to survive the forthcoming developments in autonomous driving too,” says Mr Blatt.

Other risks to cover The fully-autonomous future will create some fresh problems of its own.

When cars become connected devices on wheels, they become vulnerable to theft (or hijacking) by hackers, and to loss of connectivity. Those risks will become more relevant as technology progresses – and will provide vehicle insurers with new domains to cover.

In the future, it will be possible to determine with rock-solid evidence who is responsible for an accident.

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THE BEST HYBRIDS FOR YOUR BUSINESS The belief that all hybrids are clean and cost-effective has made them a popular business choice. But not all hybrids are the same. As hybrid-electric pioneers, Toyota has over 20 years of experience at the forefront of the technology.

Discover why Toyota Hybrid is the best choice for your business.

With hybrids representing no less than 46% of all Toyota cars sold in Europe Region, and even 61% in Western Europe, no other carmaker in the world has the same experience in powertrain electrification.

More than 20 years ago, Toyota decided that electrification was the most effective way to lower emissions and reduce fuel consumption. From just one hybrid model back in 1997, the pioneering Prius, Toyota and Lexus now offer no less than 17 different hybrids in their European line-up, from Yaris through to the flagship Lexus LS – including a comprehensive selection of SUVs. The newly launched Corolla and RAV4 feature the latest, fourth generation Hybrid technology that delivers substantial CO2 savings due to lighter and more compact components.

FLEET EUROPE #108

In the last two decades, Toyota has sold over 13 million hybrid vehicles worldwide, which means more than 13 million motors, batteries, inverters and other components have a proven track record of reliability – making Toyota hybrids genuine assets for your fleet.

“Did you know that thanks to an early commitment to hybrid technology, Toyota Motor Europe is on track to achieve the demanding 2021 EU CO2 fleet target?”

Hybrid technology that does not require a plug Toyota Hybrids are known as ‘full hybrid’ because they incorporate two energy sources: one petrol, one electric. What makes this system different from so-called ‘mild’ hybrids is that the petrol engine and the electric motor can operate independently from each other for optimum efficiency.

Because full hybrid electric vehicles are self-charging, there is no need for expensive charging infrastructure or a change in driving behaviour. When you brake or coast, a generator produces electricity to be stored in the battery through regenerative braking. Using this energy to replace or assist the combustion engine whenever possible, the fuel consumption of Toyota’s hybrids is around 30% lower than that of traditional gasoline powered cars.

electric solution for longer-range users from the mid 2020s. Despite current limited refuelling infrastructure, orders for the Fuel Cell Mirai continue to grow and production costs are expected to fall dramatically as volumes increase.

WHY TOYOTA ARE THE BEST HYBRIDS FOR YOUR BUSINESS • Taxation benefits due to low CO2 emissions • 30% improvement in fuel efficiency vs gasoline • Proven and reliable technology • Significant improvement of air quality thanks to ultra-low NOx

Towards an all-electric future Apart from being the undisputed leader in the hybrid segment, Toyota is a pioneer in other electrified drivetrains. 10 new battery electric vehicles will be introduced by the early 2020s and Toyota is leading industry research into solid-state batteries – aiming to commercialise this game changing technology by 2022.

Meanwhile the higher energy density provided through compressed Hydrogen, mean that Toyota predict that Fuel Cell will become the preferred

32

More info toyotalexusbusinessplus@ toyota-europe.com

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As environmental leader of their class, our hybrids come with pioneering emissions reduction technology and optimum levels of fuel efficiency. When you add this to Lexus’ exceptional reputation for safety and Japanese ‘Omotenashi’ hospitality, you’ll discover why Lexus is the smartest choice for your fleet.

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FLEET EUROPE #108

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LAST MILE

MERCEDES-BENZ VANS GO ELECTRIC Steven Schoefs

Electric is the way to go, Mercedes-Benz Vans has decided. And Markus Denzler is the new man to translate that new direction into commercial success.

What are his plans?

Mr Denzler, what’s your background?

“I’ve been with Daimler for 21 years, first at the Passenger Cars and Trucks divisions and lately at the Vans division.

Throughout, my roles were mostly in Sales & Marketing, although recently I was Managing Director for MercedesBenz Vans Switzerland. That was in Zürich – my personal favourite town by the way.”

But now you’re in Stuttgart…

“Yes (laughs). When my boss asked me last year if I wanted to take over as Head of the Global Key Account Management in Stuttgart, I was very happy and honoured. I took up my current position in November of last year.”

The eVito was launched recently and the eSprinter will follow later this year.

What’s on the menu for Mercedes-Benz Vans in 2019?

“We’re focusing a lot on electrification.

Just recently, we launched the eVito.

The eSprinter will follow in the second half of the year. Both offer the same functionality as their combustion-engine variants. And of course, it’s one of my key targets to get our biggest and most important fleet customers on board with our electric vans journey.”

“In the private van area, our latest baby is the new V-Class, introduced at the start of 2019. It has a restyled, striking front-end design, and a new OM654 four-cylinder diesel engine.

The electric version of the V-Class will be branded the EQV.”

FLEET EUROPE #108

How is Mercedes-Benz Vans getting to grips with last-mile delivery, shared mobility and other fast-moving changes?

Markus Denzler

“We at Mercedes-Benz Vans see ourselves not just as a manufacturer of vehicles, but also as a provider of solutions – tailored to our customers’ needs. That’s why we strive to give our customers comprehensive support.

We do this by working with them as early as possible in the development phase. If you’ve followed MercedesBenz Vans over the past two years, you’ll know that this is part of ‘adVANce’, our future initiative (see box).”

34

In short… “… My main objective is: press the pedal to the metal and grow our fleet business. As you can see, we’re about more than just selling vans. We look forward to serving our global fleet customers accordingly.”

ADVANCE TOWARDS INNOVATION adVANce’s segments address the most important fields of innovation in the van industry:

• Digital@vans (focusing on connectivity and digital networking);

• Solutions@vans (speed-

delivery doors and other hardware);

• Rental@vans (mobility on demand);

• Sharing@vans (new concepts for passenger transport);

• eDrive@vans (our holistic approach to e-mobility);

• Autonomous@vans (autonomous & electric - collaboration with passenger cars, e. g. Vision Urbanetic)

SHARED MOBILITY

EUROPEAN START-UPS FOR SHARED MOBILITY Fien Van den Steen

Shared mobility is booming. Big American tech companies were the first to conquer the market, but European start-ups with local knowledge are disrupting the scene from the inside.

1 Scooter sharing - Coup

2 Car sharing - Drivy

3 Bike sharing - Donkey Republic

• HQ: Berlin • Where: Berlin and Tübingen

• HQ: Paris (Drivy),

• HQ: Copenhagen (Denmark) • Where: Europe, more than

(Germany), Madrid (Spain), Paris (France)

• Fleet: 5,000 scooters by the end of the year

• Average cost: ¤0.21/minute (Berlin)

• Charging time: 90 minutes in summer – up to 3 hours in winter

“Drivy’s mission is to grow a car sharing service convenient enough to convince people living in cities to get rid of their personal cars, and use car sharing and other shared mobility solutions instead,” says Paulin Dementhon, CEO. Moreover, the concept of Drivy is different from other car sharing platforms. “We do not own any cars; we source them from private individuals, fleets and businesses. In addition, customers only pay for a car when they need one, we don’t charge subscription fees.” Drivy has recently partnered with GetAround in the US.

San Francisco (GetAround)

• Where: France, Germany, Spain, Belgium, Austria, UK, and recently USA (GetAround)

• Fleet: 11,000 connected cars

and 62,000 shared cars in total (together with GetAround), of which 4,000+ cars in Europe

• Average cost: £21/day (UK), ¤27/day (Belgium)

35

Donkey Republic is not just another bike sharing company. “We are the only bike-share system that regulates where riders can park their bikes through our hub-centric model,” says Eszter Igaz, Communication and Marketing at Donkey Republic. “We are data driven, which helps us to scale wisely and to optimise our fleet and work. That’s one of the reasons why we can start with a relatively small fleet in cities and monitor demand afterwards.” Yet, Donkey Republic is integrated in several MaaS platforms and the company is eager to collaborate with companies and cities to expand its service and their mobility.

50 cities, in 13 countries

• Fleet: 10,000 vehicles – 16,000 by the end of 2019

• Average cost: starting at 12,5DKK or ¤1.5 per ride; or monthly memberships with unlimited rides starting from ¤9 or 100DKK

FLEET EUROPE #108

“Coup offers an optimal and above all flexible solution for short distances within the city area,” explains Julia Grothe, Head of PR & Communication.

Coup makes scooter sharing as easy as possible, with easy-to-use scooters and an in-house created Coup app which is fuss-free and fast: registration is validated within 10 minutes and the eScooter is locked instantaneously at the end of the booking. Coup is ambitious, too: “In the future, we see ourselves as a globally established and successful mobility service provider.”

MAAS

MICRO MOBILITY, MACRO SAFETY Fien Van den Steen

New mobility modes, from scooters to e-bikes, bring new safety issues.

How safe are they to use as a commuter tool and what is being done to avoid incidents?

Bike sharing Bike sharing has seen an explosive growth since 2007, but between then and 2017 not a single person has died using a shared bike in the US, although serious injuries and accidents did happen – as with other mobility modes.

Researchers have found that bike share riders actually tend to get into fewer crashes than regular bike riders.

And here is why: • The design. Bikes for shared systems are often more robust, featuring a heavier frame and wider tyres. In addition, they include more safety features such as lights that are always on, reflectors and bells because they have to comply with the law before being deployed in the streets. Finally, most of them are painted in bright colours, such as yellow, red or blue, increasing the visibility.

FLEET EUROPE #108

• The journey. Shared bikes are often driven in denser urban areas where traffic moves slower anyway, since bike share stations are concentrated in downtown areas with lower average road speed and more pedestrians.

• The experience. Bike share riders tend to be less experienced than the ones who own a bike, hence they might be more cautious and ride more defensively than the experienced cyclists.

In addition, some shared bike features increase safety, such as geofencing to

The Yellow bikes of bike sharing company OFO are brightly-coloured increasing their users’ visibility in the Chinese city of Changsha. move pickup locations to safer places with less traffic (Lyft), data collection to share with city officials to detect and improve incident-prone locations, and free or cheap helmets.

Uber, the owner of Jump bikes, proactively promotes the use of helmets on the bikes and provides safe biking tips to users.

three hours in the United States than are injured by e- scooters in a year.”

Yet, that does not mean that they don’t care about safety. As a matter of fact, Bird has implemented quite a few safety measures to address some specific safety challenges, on top of a safer design of the scooters themselves, which resulted in the Bird Zero.

• Ceasing operations after midnight – three of the four known shared e-scooter fatalities in the US took place between 1am and 5am,

Scooter sharing Scooters are often criticised for their poor safety reputation. Yet, “only” 1,500 injuries were reported in the US last year; a Bird safety report showed that the collision rate for scooters is not significantly higher than for cyclists. The report mentions that “Taking the numbers reported by Consumer Reports of 1,545 e-scooter injuries over the past year, more people are injured by motor vehicles in

36

• Requiring a proof-of-age to deter underage riding – 51% of the 795 e-bike and e-scooter injuries were aged 14 or younger, • Instituting speed limits in consultation with city officials, • Reporting of irresponsible parking behaviour through the app.

SAFETY IN NUMBERS The increase of micro-mobility users will in the long-term increase road safety, due to an effect called Safety in Numbers. In his research in 2003, Peter Jacobsen found that the likelihood that a given person walking or cycling is struck by a motorist varies inversely with the amount of walking or bicycling.

He explained this phenomenon by the increasing expectation of encountering cyclists and pedestrians, with increased prevalence of cyclists and pedestrians. The principle is a fundamental part of leading municipal Vision Zero policies to reduce traffic fatalities to zero and establish safer roads.

Ride hailing Another part of the MaaS puzzle is ride hailing. Uber emphasises how their safety vision goes beyond the ride hailing operations solely, as with their other mobility modes. “Our safety initiatives vary from features in the app like sharing your location/ ETA with loved ones, to making the driver app interface easier to use to improve safe driving. Last year we’ve collaborated with the Belgian cyclists’ federation to increase awareness on biking and bikers in the city, which should help improve safety for all road users.”

Some ride hailing safety measures: • Driver information. The app shares information to verify the identity of both the driver and the car. After the murder of a University of South Carolina student, who was killed by the driver of a vehicle she thought was her Uber, Uber even installed a push alert to remind riders to verify the driver’s information.

• Share Trip feature. Uber and Lyft allow you to share information of your trip with relatives or friends, who will receive a push notification that tracks your trip and ETA. • Emergency button. Uber, Lyft and Grab have an emergency button built in the app which allows you in case of Uber and Lyft to dial 911 directly from the app. In addition, the app will provide your real-time location and trip details to share with the dispatcher.

• GPS tracking. All rides are tracked from A to Z, so there is a record if anything happens. Uber and Via, for instance, monitor drivers’ routes and send alerts to the staff it the car goes off route. Lyft created a Ride Check feature that detects an unexpected stop as well.

Street management Besides the above-mentioned safety features per mobility mode, traffic management is crucial when they all come together. Especially since the majority of traffic fatalities among vulnerable road users are caused by motor vehicle impacts. The following measures can be taken to guarantee a safe mobility landscape in addition to the safety features per vehicle:

1 2 3

Reduce car trips, Reduce speed,

Unlock safety in numbers (see separate text box), by encouraging shared/micro and active mobility while decreasing personal cars,

4 5

Design safer streets, such as separated bike lanes, Maintain safe street conditions, such as decent road quality.

• Identity verification. Lyft and Uber require drivers to verify their identity regularly by providing real-time pictures of their face.

• Uber and Lyft subject their drivers to criminal background checks.

Bringing all new mobility modes safely together requires decent city planning as well.

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FLEET EUROPE #108

Ride hailing platforms provide GPS tracking and identity information of both vehicle and driver as basic safety features.

FINANCIAL MODELS

CASH, CAR OR SOMETHING ELSE? Yves Helven

More than ever, the company car is being depicted as one of the greater evils of today’s world. Regardless of detractors and promotors, change is in the air and it’s time to invite a good old friend back on the agenda: the cash allowance.

Public opinion is being rallied against the car benefit. They cause congestion and stand in the way of a more sustainable mobility. Obviously, a more balanced view is missing: company cars are cleaner than private cars, they create a true benefit for the employees and their families, a car benefit gives the employer additional tools to

enhance employee loyalty, and so on.

But if it must go, is a cash allowance the only alternative?

European companies provide their employees with a choice between car or cash; fewer companies decide to limit the benefit to a cash allowance.

Today’s corporate choice is obviously motivated by taxation; VAT recoverability, deductibility from corporate income tax and impact on personal income tax dictate policy.

Popularity in Europe Research done by Mercer in 2017 (Car Benefit Policies around the World) demonstrates that cash allowance has never really disappeared. Many

WHAT COMPANIES DO OFFER HEAD OF ORGANISATION

EXECUTIVE

MANAGEMENT

PROFESSIONAL NON SALES

PROFESSIONAL SALES

FLEET EUROPE #108

Cash Vehicle Cash Vehicle Cash Vehicle Cash Vehicle Cash Vehicle Vehicle Vehicle Vehicle Vehicle Vehicle Allowance OR Cash Allowance OR Cash Allowance OR Cash Allowance OR Cash Allowance OR Cash Only Only Only Only Only Only Allowance Only Allowance Only Allowance Only Allowance Only Allowance AUSTRIA

8%

8%

75%

17%

8%

67%

23%

8%

62%

25%

8%

17%

54%

15%

23%

BELGIUM

57%

7%

37%

64%

9%

27%

64%

9%

27%

40%

7%

17%

66%

9%

19%

DENMARK

38%

19%

44%

38%

19%

44%

47%

12%

35%

19%

13%

25%

50%

19%

25%

FINLAND

29%

43%

29%

29%

43%

29%

38%

38%

13%

25%

38%

0%

50%

38%

13%

FRANCE

47%

13%

34%

47%

16%

31%

45%

15%

24%

21%

11%

25%

56%

15%

26%

GERMANY

32%

13%

51%

28%

15%

52%

31%

14%

45%

20%

11%

25%

46%

19%

29%

GREECE

33%

0%

67%

20%

0%

80%

29%

0%

43%

0%

0%

0%

75%

13%

0%

IRELAND

14%

71%

14%

13%

75%

13%

13%

75%

13%

17%

50%

0%

29%

57%

0%

ITALY

47%

13%

40%

45%

14%

41%

43%

13%

37%

19%

12%

19%

58%

16%

19%

NETHERLANDS

31%

21%

41%

30%

20%

43%

31%

21%

45%

25%

14%

25%

44%

25%

25%

NORWAY

18%

5%

77%

19%

6%

75%

26%

9%

65%

27%

13%

60%

47%

5%

48%

PORTUGAL

70%

6%

20%

69%

4%

18%

71%

2%

18%

37%

6%

8%

72%

4%

9%

SPAIN

44%

19%

37%

46%

18%

36%

35%

19%

31%

17%

17%

13%

44%

22%

19%

SWEDEN

30%

40%

30%

33%

42%

25%

33%

42%

25%

17%

42%

17%

42%

42%

17%

SWITZERLAND

18%

41%

41%

17%

44%

39%

22%

44%

28%

12%

18%

24%

47%

35%

18%

UNITED KINGDOM

8%

49%

41%

4%

50%

42%

7%

48%

39%

15%

29%

17%

29%

39%

20%

Source: Car Benefit Policies around the World, Mercer, 2017 38

A cash allowance is no longer the only alternative to a company car.

One downside of a cash allowance is the employer’s hands-off attitude towards the environmental impact. Until now, most employees who receive a cash allowance use that amount to finance a family car, usually less green than a company car and in most cases scheduled to be used for 7 years or more.

Cash allowances will create a superficial positive impact on the company’s eco footprint, but when the employee ecosystem is taken into account, the opposite is true.

Also, in terms of safety equipment, company cars tend to be better equipped than private cars. First of all, the employer will equip the vehicles with the highest safety standards. ABS and airbags were mandatory options for corporate vehicles long before they became standard. Furthermore, as company cars are being renewed every 3 to 5 years, a corporate fleet is organically equipped with the latest technologies.

Commuting cost Regardless of whether they receive cash or car, the employees will have to make the same trip from home to the office and park the car during working hours. In cities such as London or Berlin, where cars are being actively banned (congestion taxes, eco taxes or car bans on certain roads), this is becoming increasingly difficult. By giving cash allowances, the employer passes the problem to the employees and creates a new factor of dissatisfaction: the commuting cost.

The new generations are not impressed by a couple of hundred euros more if that means it will impact their lifestyle and reduce their options.

This cost is the combination of additional time and effort, avoiding of or paying for city taxes and the cost of parking. In the employees’ mind, the employer is responsible for the hassle and the increase of commuting cost.

Generational differences and benefit policies Unlike previous generations, Gen Y and Gen Z have different expectations from their employers: they want their employer to take care of them, take care of the environment and solve any practical issue that stands in the way of being an efficient contributor to the company. These generations are not impressed by a couple of hundred euros on their bank account, if that means that it will impact their lifestyle and actually reduce their options.

In countries where benefit policies are scarce, such as China (where employees only receive monetary benefits), this lack of care-taking is leading to an extreme form of job-hopping. The wrong conclusion is to say that an employee leaves the company for 100 dollars more; in reality, the employer

39

has created a situation where a job has become a commodity. Cash as a benefit doesn’t work.

Taxation As the tax pressure on the company car rises, in combination with the cost of city bans, the delta between cash and car is becoming smaller. This means that companies have 2 choices:

1 2

Either limit their benefit policies to a choice between cash or car, Look beyond these options and redesign their benefit policies.

As for true tool of trade cars (vehicles that are only used for professional purpose), the car is still a valid option. In most European cities, options that offer the same level of comfort and flexibility are not available. But the following questions need to be asked: • Electrification: are electric vehicles a sustainable alternative?

• On-Demand: do we still need one vehicle per employee?

• Form factor: is that vehicle still a car?

Real choice The real choice is not between cash or car; it’s about creating new benefit policies that contribute to the success of the company, increase well-being and employee loyalty and that are compatible with the requirements of the new generations of employees. And yes, this means adding mobility to the mix.

FLEET EUROPE #108

Impact on environment and safety

CONNECTED

THE RELEVANCE OF TELEMATICS CANNOT BE UNDERESTIMATED @DieterQuartier

The first edition of the Connected Fleets Conference gathered almost 100 international fleet managers, suppliers and experts wanting to share insights on the why, the how and the when of implementing telematics. Judging by the reactions, the event was spot on and calls for a sequel.

On 15 and 16 May, Fleet Europe organised its very first Connected Fleets Conference in Brussels, a high-level event for those looking to discover, buy and implement connected technology for their fleets. Procurement managers, CIOs, CTOs, Fleet and Mobility managers and other stakeholders gathered on Wednesday night for the opening of what promised to be an information-dense learning, networking and sharing experience for both buyers and suppliers.

Geotab’s Edward Kulperger gave a foretaste of what telematics can do and how the market is evolving, after which he engaged in a short discussion with Fleet Europe’s Steven Schoefs about data security, data privacy, market consolidation and differences between North America and Europe.

The opening night dinner was the ideal occasion for the attendants to already get to know each other and talk telematics in a leisurely way.

FLEET EUROPE #108

What’s in it for me?

On Thursday morning, Alberto Lodieu from Ptolemus Consulting Group kicked off with a keynote presentation on the telematics market evolution.

The industry is widening from traditional telematics suppliers to various types of new actors, such as fuel companies and OEMs, while telematics vendors are expanding services into new areas. As a direct result of this trend, competition is becoming bigger.

Even tyre manufacturers are moving in the connected fleet area, as demonstrated by the recent takeover of TomTom Telematics by Bridgestone.

The Dutch telematics company was represented by Rene De Jong, Sales Director Benelux, who during a panel discussion on convincing the internal stakeholders stressed that “If there’s no benefit for the driver, it becomes more difficult to implement telematics.” Indeed, driver resistance is one of the main obstacles fleet managers mentioned in a recent Global Fleet Survey, alongside work council resistance and privacy issues.

Hannah Massenhove from BDO emphasised the importance of informing all stakeholders to ensure you get everyone on board. “Stakeholder management should be the first step,” she said.

“People have to see what they stand to gain.” Olivier Mansard, VP Global Sales, Masternaut, agreed: “Telematics are the future but we have to make it positive for the drivers.” He had a scoop for the Brussels audience: his company is on the verge of being acquired by yet another tyre manufacturer, Michelin.

Open platform for more security The Connected Fleets Conference Founding Partner, Geotab delegated Mike Branch, VP Data and Analytics, to give the audience valuable insights in how data and Artificial Intelligence can predict events. The more data is shared, the more reliable and accurate the predictions.

40

Rene de Jong (TomTom Telematics), Olivier Mansard (Masternaut) and Hannah Massenhove (BDO) in a debate moderated by Dieter Quartier at the Connected Fleets Conference.

Also, telematics requires an open platform approach if you want to maximise security, as explained during the panel discussion between Dirk Schlimm, Executive Vice President, Geotab, Dr Dan Massey, Director of Technology, Cybersecurity and Policy Programme and Professor of Computer Science at the University of Colorado Boulder and part of the Neutral Vehicle Consortium, and Dr Ted Guild, Connected Vehicle Lead at W3C. “It sounds counter-intuitive, but an open system is far more secure,” said Dr Massey. “In closed systems, you’re on your own to protect your system against your adversaries. In an open system, however, you have all other users as allies.”

“Data is the new gold, but it can also be the new asbestos,” said founding partner Geotab’s Dirk Schlimm,

If there’s no benefit for the driver, it becomes more difficult to implement telematics.

Also, stakeholder management should be the first step.

The trend amongst bigger fleets is to remain OEM independent, making room for independent telematics suppliers.

ROI was also the topic of the second panel discussion, uniting Edwin Colella from Omoove, Nancy Cui from Deutsche Post DHL, Olivier Marion from RCI Bank and Services and Emmanuel Roche from Sixt. This debate produced some interesting conclusions. ROI is difficult to quantify; not only the apparent savings (fuel, driver behaviour,…) need to be taken into account, also the hidden savings deliver value.

emphasising the importance of cybersecurity. And this security is everyone’s business.

Where to buy telematics? From the OEM, leasing vendor or the independent supplier? Omoove’s Edwin Colella reckons the device needs to be separated from the software; OEMs may be increasingly connecting vehicles, but there are still many types of data usage and therefore different vendors.

The trend amongst bigger fleets is to remain OEM independent, making room for independent telematics suppliers.

ROI: costs versus benefits

Lessons from the field

Ensuring the return on investment is a complicated topic, as Globalmatix’ Alois Widmann highlighted. “Thanks to better connectivity, the savings potential related to better driver behaviour, a more efficient route management, enhanced fuel management and

Many attendees had come to the Connected Fleets Conference to get inspired by the case studies presented.

Thomas Stroo, Head of Logistics Benelux at popular fresh food delivery company Hello Fresh, explained the audience how telematics helped to

41

improve the efficiency of the company’s logistics and, eventually, the success of the entire company.

Telematics has also contributed to the decrease of the number of accidents, but it has to go together with preventive workshops, positive incentivising and interactions with the drivers.

A similar message came from Nikola Vuckovic from Philip Morris Intl. In their case, telematics literally saves lives while reducing fuel and maintenance costs and enhancing vehicle occupancy and planning.

At Belgium’s largest roadside assistance provider VAB, where all replacement vehicles are equipped with telematics, absolute transparency towards the user was very important.

As new clients and new tech push the company forward to the next level of connectivity, technicians will be able to contact the driver before, rather than when the car breaks down.

If anything, the Connected Fleets Conference proves that there is a real need in the fleet community for knowledge sharing about connected fleets. With this first edition, the foundations have been laid for future conferences to further develop the topics that are on the fleet community’s mind in the realm of telematics.

FLEET EUROPE #108

lowered insurance premiums has improved. Nevertheless, these savings can be offset by the cost of telematics, which is sometimes underestimated.”

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With its state-of-the-art powertrain, a roomy interior for five occupants and high levels of space and versatility, the e-Soul confirms KIA’s status of expert e-brand.

FLEET EUROPE #108

The KIA e-Niro combines the practicality and appeal of a compact SUV with the pleasure and sustainability of an all-electric drivetrain.

e-Niro

e-Soul

The Kia Niro hardly needs an introduction. As a compact crossover with ultra-clean hybrid and plug-in hybrid powertrain options, it has grown to become a true fleet favourite. The latest addition to the Niro line-up is the final piece of the Kia Niro puzzle, full-electric and zero emissions powertrains.

The new KIA e-Soul is yet another addition to the electric portfolio of electrified vehicles, confirming KIA’s status of expert e-brand. Like the e-Niro, it holds a 64kWh battery of the latest generation featuring 25% greater cell density. It also uses the CCS (Combined Charging Standard) for ultrafast charging. Compared to Europe’s current best-selling model, this state-of-the-art powertrain is up to 30% more efficient.

Let us surprise you

The e-Soul retains the strengths that have characterised earlier generations of the model, offering a roomy interior for five occupants and high levels of space and versatility. Like all KIA models, the new e-Soul comes with an unrivalled 7-Year, 150,000-km warranty, which also covers the car’s electric motor and battery pack.

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With the e-Niro, KIA is bringing one of the first electric vehicles on the market that combines the practicality and appeal of a compact SUV with the pleasure and sustainability of an all-electric drivetrain. More than that, it is an affordable and realistic option for many company car drivers, who can travel up to 455km* on a single charge.

At a DC fast charger, you can top up the battery at a speed of 370kph.

*under WLTP conditions

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Curious how KIA can help electrify your fleet? Contact the KIA Fleet team here.

CONNECTED

ADAS FOR ALL, AT ALL COSTS @DieterQuartier

The EU is making several Advanced Driver Assistance Systems mandatory from 2022. That should reduce the number of severe road accidents, but increases the average vehicle price and the risk of over-reliance.

European roads are among the safest in the world. Data released by the EU shows there were around 25,100 fatalities on EU roads in 2018, a 21% decrease compared to 2010 and a 1% drop compared to 2017, as further explained in the article on page 19. In most member states, the number of road deaths was below 60 per million inhabitants.

In spite of these positive results, EU member states are not on track to hit the target of halving the number of road deaths by 2020. Consequently, more action is urgently needed, says the Commission. They see salvation in mandating several ADAS on new cars – something that is welcomed by safety-focused OEMs like Volvo and Mercedes, but will unquestionably lead to considerable price increases in the lower vehicle segments.

The EU has reached a provisional political agreement on the so-called revised General Safety Regulation. As of 2022 new safety technologies will become mandatory in European vehicles to protect passengers, pedestrians and cyclists, including warning of driver drowsiness and distraction, intelligent speed assistance, lane-keeping assistance, advanced emergency braking and a black-box to register accident data. The introduction of the advanced safety features could save over 25,000 lives and avoid at least 140,000 serious injuries by 2038, according to the EU. Coincidence or not, just weeks before, Volvo announced it would be focusing on three key areas that ‘kill’ to achieve their goal of zero casualties aboard a new Volvo by 2020: speed, intoxication

ADAS systems can help prevent accidents. But over-reliance is a risk. and indeed distraction – the cause of 5-25% of all crashes according to a 2015 epidemiological study ordered by the EU, called Driver Distraction.

The Swedish carmaker is in favour of introducing an automated speed limit based on location data. When you drive near a school, the car will not allow you to go faster than 30km/h, for instance. In case of emergency, you can override the limit, though.

ACEA previously opposed the general introduction of such an intelligent speed assistance, saying the technology gives too many false warnings due to incorrect speed limit information. Indeed, accurate and up-to-date

43

speed info are an absolute must for this feature to work and the current road signalling, map quality and data communication in Europe leave much to be desired.

Towards autonomous To combat the possible effects of distraction and intoxication, Volvo wants to install driver-scanning cameras in its future cars that monitor the driver’s eyes and the position and movement of his head and body. Combined with an analysis of driving behaviour, the system could intervene in three steps.

It starts with a simple auditive, haptic and visual warning. When the driver does not respond, a telephone call will be established to verify the driver’s

FLEET EUROPE #108

Distraction and speed kill

CONNECTED

WARNING THROUGH THE CLOUD Imagine a car that detects wheel spin due to slippery road conditions and sends out this information together with the GPS location to a cloud platform so that other cars are warned automatically. Volvo is no longer dreaming about this it has been offering the technology to its Norwegian and Swedish 90 Series customers since 2016.

FLEET EUROPE #108

The time has now come to expand this connected car feature to the rest of Europe and to its entire line-up. Actually, it comprises two features: Hazard Light Alert and Slippery Road Alert. They come as standard on all new model year 2020 Volvos. Interestingly, they can be retrofitted on a current-generation V60, XC60, S90, V90, XC90 or an XC40.

The car will only display a warning rather than automatically slow down. That may very well be the case in the near future. Only Volvo cars can share hazard warnings with each other today, but the OEM is working together with BMW, Mercedez-Benz, and Ford under the EU Data Task Force to start sharing anonymised road and traffic data across brands.

HERE Europe and TomTom are also involved.

Volvos can warn each other about road conditions.

capability to drive and the vehicle will be slowed down automatically. The final step is to bring the vehicle to a full stop and alert the emergency services.

Volkswagen already offers a similar system, albeit in a less advanced, driver camera-less shape, on the Arteon. The Emergency Assist analyses the driver’s behaviour and intervenes if he doesn’t use the steering wheel, brake or accelerator for a while. The driver is initially warned and ‘awakened’ by means of acoustic, optical and haptic signals, including a braking and a seatbelt jolt.

If the driver still does not respond, the vehicle will pull itself over to the side of the road, combining the skills of the Side Assist and Lane Assist to ensure it can change lanes safely.

at higher speeds than before, relying on ESC to be their guardian angel.

False expectations for ADAS systems can easily lead to misuse of the technology or – paradoxically – an increase in driver distraction, AAA Foundation for Traffic Safety research shows.

About 25% of vehicle owners using forward collision warning or lane departure warning systems report feeling comfortable engaging in other tasks while driving.

The AAA therefore say OEMs have an ethical and important responsibility to accurately market, and to carefully educate consumers about the technologies they purchase.

Costs and over-reliance ACEA believe the mandatory safety features will increase the vehicle cost by hundreds of euros. On top of that, there are the costly repairs in case of an accident. In some cases, vehicles also need their ADAS hardware to be recalibrated after repair, which is the repairer’s responsibility.

Finally, there is a phenomenon called over-reliance. When ABS was introduced in the nineties, drivers initially started braking less proactively, wrongly assuming that the car would slow down faster. Electronic stability control has been known to cause similar effects: drivers were taking corners

44

False expectations for ADAS systems can easily lead to misuse of the technology or an increase in driver distraction.

Some make announcements.

We build.

Discover our progressive e-mobility range.

#NextAwaits While some car brands just announce sustainable cars, Hyundai has already brought three zero-emission cars onto the road. Recently, we launched our next-generation Fuel Cell electric vehicle: the Nexo. We also introduced Europe’s first full-electric sub-compact SUV with the Kona Electric. Furthermore, the new IONIQ Electric offers an extended driving range, reaching distances of up to 294 km. And we won’t stop here. Electric awaits.

Next awaits. Visit Hyundai.com/eu

* The Hyundai 5-Year Unlimited Mileage Warranty applies only to Hyundai vehicles that have been originally sold by an authorized Hyundai dealer to an end-customer, as set out in the terms and conditions of the warranty booklet.

8 years or 200.000 km warranty on vehicle battery unit. Local terms and conditions apply. Contact your official Hyundai dealer for further information.

NEW ENERGIES

EVAP AND ISC COULD CAUSE MORE HOMOLOGATION DELAYS @DieterQuartier

Just when you think things cannot become more complicated, Europe amends the Euro 6d emission standard. Tougher conditions for evaporative emissions testing (EVAP) and emissions measuring of cars while they are in service (ISC) may jeopardise the availability of some models.

2018 has been a difficult year for carmakers in Europe. The introduction of a new type approval method called WLTP caused serious bottlenecks and therefore the unavailability of many models for months in a row. Especially the German brands had a tough time to comply with the new rules of engagement, partly due to the high number of engine, transmission and body type combinations.

OEMs have barely had time to recover from the WLTP storm and yet another cold front is moving in. Emissions of newly type-approved passenger car models must now be verified by the OEMs during five years or 100,000km after their first registration - something that is indicated by the ISC suffix (for In-Service Conformity). To add to the complexity, Europe has also adjusted the evaluation procedure for evaporative emissions (EVAP). This could yet again cause bottlenecks in the type approval procedure.

FLEET EUROPE #108

In-Service Conformity Test (ISC) Cars that pass the RDE (Real-Driving Emissions) test comply with either the Euro 6d-Temp or the Euro 6d emission standard, depending on the NOx (nitrogen oxide) and PM (particulate matter) emissions measured on the road. For the 6d-Temp standard, the RDE Conformity Factor (CF) for nitrogen oxide emissions is 2.1. For Euro 6d, which takes effect on 1 January 2021 for all new cars registered, this “allowed deviation” amounts to 1.43. In the case of PM, the conformity factor does not change: it remains 1.5.

More emission testing will be required to comply with Europe’s latest standards.

So far, there’s nothing new. New models launched by car manufacturers generally comply with Euro 6d-Temp. Just a handful of cars (from Alfa Romeo, Jaguar and Mercedes) do better than what is legally necessary today and already carry a Euro 6d approval. That makes them the most ‘futureproof’ of all.

With the introduction of the new ISC, the evaluation procedure must now include emission tests on vehicles that are in circulation during five years or 100,000km after their registration. These tests are mandatory for newly type-approved passenger car models from 1 January 2019 and from 1 September 2019 for all newly registered vehicles.

EVAP: evaporating petrol And then there’s the EVAP amendment. Petrol-powered vehicles have a

46

pressure equalisation system in their fuel tank, which prevents negative pressure from forming. Inflowing air avoids the contraction of the tank while driving. When the fuel is heated, the pressure equalisation line prevents the tank from bursting. The petrol vapours are collected and temporarily stored when the vehicle is stationary. During driving, the fuel is supplied to the combustion, thereby minimising waste. Some of it evaporates, though.

The EVAP emissions test considers hydrocarbon emissions (HC) that occur during driving and parking – petrol vapour, basically. To pass the new test, which is mandatory from 1 September 2019 for new type approvals, a car mustn’t emit more than 2g of HC within a period of 48 hours. Diesel engines do not need to run the EVAP test procedure as diesel is not volatile, but the approval remains the same.

The suffixes EVAP or ISC do not offer any added ‘protection’ against banning from low-emission zones or extra taxation.

Impact on fleet: delays So, when you see Euro 6d-Temp-ISC, Euro 6d-Temp-EVAP, Euro 6d-TempEVAP-ISC on the COC of a car, you know what they stand for. The suffixes EVAP or ISC do not offer any added ‘protection’ against banning from low-emission zones or extra taxation.

To be on the safe side, Euro 6d vehicles are recommended over Euro 6d-temp

cars – and especially over Euro 6c cars, which have not been road-tested (RDE) and could face headwind in the near future.

The real impact on fleet comes from the new EVAP procedure, which may again cause bottlenecks and thereby increase lead times and limit availability. There is no reason to believe that the effect will be as disastrous as WLTP and RDE, but some OEMs seem less confident than others.

Volkswagen Group’s sales chief Christian Dahlheim told Autonews. com that to pass the latest tests nearly all engine-transmission variations will again have to go through “time consuming” WLTP certification processes. “Compared with 2018, we

are confident that we can dampen the effects of the second stage considerably. Nevertheless, we cannot rule out temporary limitations to some of the models in our range in the second half of this year,” he said.

The new regulations were only published in their final form at the end of November 2018 and, in the case of new vehicle types, required compliance already at the start of 2019. “It remains challenging because the effort for everyone involved with the new processes has risen enormously,” Daimler’s sales chief Britta Seeger told Automobilwoche. “In 2018, we learned a great deal. We can now plan better,” she said.

CLOSING THE GAP BETWEEN THEORY AND REALITY This graph, provided by VW AG, shows the effective dates and transition periods of the various Euro 6d iterations. The general introduction of Euro 6d comes with tighter deviation limits for NOx emissions measured during the RDE (road) and the dynamometer (lab) test, but also with something called OBFCM. From 1 January 2020,

carmakers must monitor the actual fuel consumption of newly type-approved cars (on-board fuel consumption monitoring) in a bid to close the gap between theory and real world. Soon, the official fuel consumption and hence CO2 emissions will be based on actual driving data.

EFFECTIVE DATES AND TRANSITION PERIODS 2018

Emisson Standard Dynamometer Test CO2 and exhaust emissions

2019

2021

2020

NEDC

2025

WLTP ISC EVAP (48h) For all vehicles [M1, N1 I + PKW]

OBFCM****

Only new types*** [M1, N1 I + PKW]

RDE Test Emission Norm

RDE-NOX (CF=2,1) RDE-PN (CF=1+margin*)

For all vehicles*** [M1, N1 I+ PKW]

RDE-PN (CF=1+margin*) RDE-NOX (CF=1+margin*)

Euro 6d-TEMP***** Euro 6d-TEMP-ISC

Euro 6d-ISC-FCM

01.09. 01.01.

01.09. 01.01.

* Measurement uncertainty: yearly adjustable NOx-Margin=0,43: PN-Margin=0,5 **Passenger Cars *** 01.01.2021 (new types) -> 01.01.2022 (all vehicles) [N1 II, III-LCV]

01.01.

**** On Board Fuel Consumption Monitoring ***** Parallel to that emission norm Euro 6c can be registered until 31.08.2019

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FLEET EUROPE #108

Euro 6d-TEMP-EVAP-ISC

REMARKETING

FRESH DATA SHOWS USED-EV BOOM @Frank_J_Jacobs

Poor RVs (residual values) used to be a major drawback for EVs (electrical vehicles). But as a fresh batch of Autorola data shows, those days are fading fast; there’s never been a better time to remarket your EV than today – except perhaps tomorrow.

In just 12 months (May 2018-April 2019), used EV stock in 12 key European markets (plus Turkey) has increased from 13,000 to 20,000 units. Just four markets (Germany, the Netherlands, France and the UK) make up three-quarters of the total.

The sharp decline of the price index for used Model Xs may seem counterintuitive, but each figure is the composite of a more complex dataset, explains Rasmus Boysen Nielsen, analyst for Autorola: “The price index for the Model X has decreased consistently over the last year in Germany. From our data, it looks like the average age and mileage of the used Model Xs on offer has increased.

This explains the negative price development. Cars depreciate as they get older and get more mileage. We see the same for the Model S in Germany. So, it seems that the average age of used Teslas in Germany is increasing faster than for the other models.”

In theory, increased supply could deflate RVs. But demand for used EVs is fairly robust as well: of the 34 models on offer on the German market, for example, only 16 saw a drop in RV, while 18 experienced a rise.

Worst performer was the Tesla Model X (indexed at 100 in May 2018 and 74.54 in April 2019), the best result was that of the Smart Fortwo (137.72 this April).

In all, it shows the potential for sustainable growth, balancing supply and demand.

models. The Renault Zoe had 1,062 units in stock, more than any other model; nevertheless, its RV price index progressed to 110.11 over the 12-month period. On the other hand, the relatively small batch of electric-version Audi A3s (83 units) did not prevent its RV from slipping to 83.64.

Final – and most crucial figure: the sales per model. Germany’s used-EV Top 10 for the examined period looks like this:

1. Renault Zoe (285 units) 2. BMW i3 (263) 3. Hyundai Ioniq (95) 4. Smart Fortwo (94)

Healthy RV

5. Nissan Leaf (93)

More proof of healthy EV RVs can be found in the stock picture of these

6. Volkswagen Passat (87)

STOCK PER COUNTRY 20K TR

18K

DK

PL

PT

BE

ES

IT

AT

SE

GB

FR

NL

DE

16K 14K 12K N° of cars

Peter Grøftehauge, Autorola

10K 8K

FLEET EUROPE #108

6K 4K 2K

Rasmus Boysen Nielsen, Autorola

0K May 18

Jun 18

Jul 18

Source: Autorola

48

Aug 18

Sep 18

Oct 18

Nov 18

Dec 18

Jan 19

Feb 19

Mar 19

Apr 19

7. BMW i8 (78)

STOCK PER BRAND - GERMANY

8. Tesla Model S (73) 9. Hyundai Kona (65)

6500

Fiat

Opel

Volvo

VW

10. Volkswagen Golf (52)

6000

Piaggio

Mitsubishi

Porsche

Renault

Suzuki

Ford

Tesla

5500

Toyota

Honda

Lexus

Mercedes-Benz

Citroën

Hyundai

5000

Infiniti

Peugeot

Smart

Jaguar

Audi

Nissan

4500

Land Rover

Kia

BMW

Brand-wise, only 5 of the 18 marques on the German used-EV market saw their overall RV figure decline. The clear winner was Audi, with an index of 247.9 in April 2019 – in other words, more than double in less than a year.

N° of cars

4000

Germany may be the biggest market in Europe – for used EVs as for many other things – it is far from the only one.

As Autorola’s figures for a selection of other markets show, things can be very different, depending on which market you’re in.

3500 3000 2500 2000 1500 1000 500

Let’s take France. Of the 24 used-EV models monitored on that market, only a minority (10) saw RV gains – a marked difference with Germany.

0 May 18

Jun 18

Jul 18

Aug 18

Sep 18

Oct 18

the runners-up, the BMW i3 (201) and Nissan Leaf (184) – and in sales: 552 units, four times the figures for the Leaf (152), nine times as much as the i3 (62).

A good thing to keep in mind with the strong gains or losses for some models’ price indexes is that we’re dealing with fairly small volumes, especially at country level. While pointing to large swings may be mathematically irreproachable, it’s not statistically meaningful. But those volumes of used EVs may soon be getting a lot bigger, experts predict.

Thanks to the home market advantage, the Zoe’s pole position is even stronger than in Germany, both in stock – 951 units, more than four times

SALES PER MODEL - FRANCE 600 552

500 450 400

Jan 19

Feb 19

Mar 19

Apr 19

“The future for EVs – and used EVs – looks very exciting, with increasing export opportunities,” says Peter Grøftehauge, CEO of Autorola. “Next year, a large number of OEMs will launch new EV models. That will have a major impact on the popularity and penetration of electric mobility in the market. And that may well spill over from the new to the used EV market.

So we could see growing demand, and rising prices, for used EVs.” But there is also likely to be a countervailing trend, Mr Grøftehauge explains: “A rising tide lifts all boats, but in this case perhaps not the oldest ones. Some of the earliest EVs may be ‘punished’ because they are now outdated and irrelevant, with very low ranges for example. That trend could even start to affect Tesla, which in the luxury EV segment will get some serious competition from BMW and Audi, starting next year.”

350 300 250 200 150 100

49

UPI

Soul

Mondeo

Kona

Panamera

E-Mehari

Niro

Q50

A3

Ignis

i8

XC60

X5

Golf

Model S

Twizy

Partner

IONIQ

iOn

Kangoo Range Rover Sport Fortwo

Source: Autorola

C-Zero

i3

Zoe

0

XC90

62 53 48 42 38 35 31 29 28 21 18 18 18 17 16 15 15 15 15 14 11 11 11 10 10

50

By 2025, EVs will have RVs of up to 50%, while used petrol cars will fetch 42.5% at most, and diesels just 35%, a report

by ING predicts.

FLEET EUROPE #108

EV RESIDUALS UP TO 50% BY 2025

152

Leaf

N° of cars

Dec 18

Source: Autorola

Worst performer was the Kia Soul (82.84), although the Tesla Model S didn’t do much better (87.34). Best performer was the Porsche Panamera (142.50), with the Nissan Leaf (130.48) and the Smart Fortwo (125.50) close behind. Of the 16 brands in France monitored by Autorola, just half saw an increase in RVs.

550

Nov 18

AWARDS

GET THE RECOGNITION YOUR COMPANY DESERVES Steven Schoefs

FLEET EUROPE #108

Meet the winners of the 2018 Fleet Europe Awards. Apply now to follow in their footsteps!

Fleet and mobility management is evolving at a fast pace. Innovation is transforming technology, mobility, even behaviour. All of that is making the job of today’s fleet and mobility manager more complex than ever.

Recognising this complexity, the Fleet Europe Awards aim to reward the best and most innovative achievements, of both customers and suppliers.

And you can be part of it!

This year’s Fleet Europe Awards will take place on 7 November in Estoril, Portugal. It’s the industry rendezvous of the year, with fleet professionals firmly in the limelight. Put aside your modesty and apply for one of the following Award categories.

FLEET AND MOBILITY MANAGERS Six categories reward professionalism among international fleet and mobility managers:

Fleet Manager of the 1 Global Year First introduced in 2017, this award celebrates the person or team that manages a vehicle fleet on a global level (at least two continents) that has successfully developed a global fleet approach, while taking into account regional differences.

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Fleet and Mobility 2 European Manager of the Year The winner will be chosen from the four categories below. It will be the person who has deployed a programme that combines the strengths of procurement efficiency and supplier management with the optimisation of vehicle emissions and safety, and the attention for alternative mobility solutions.

Optimisation Fleet 3 European Manager of the Year This award goes to the person or team that can show a substantial contribution to the company’s vehicle fleet strategy and execution in terms of policy harmonisation, process efficiencies, supplier selection, and cost optimisation.

This award goes to the person or team that improves safety and limits incidents and accidents related to the vehicle fleet, taking into account cost-efficiency.

Green Fleet 5 European Manager of the Year This award goes to the person or team that can show a clear improvement in the emission strategy of the vehicle fleet, with a focus on vehicle and powertrain selection, fuel efficiency optimisation and innovation in eco-friendliness.

Smart Mobility 6 European Manager of the Year This award goes to the person or team that has developed a strategy for the complete employee community, offering alternative and innovative mobility modes next to the company car. The result is a programme that leads to a more efficient employee mobility.

Ensuring the highest possible judging standards, the jury is made up of corporate fleet managers, fleet suppliers and Fleet Europe representatives under the presidency of Edward Kulperger, Vice President Europe at Geotab (see Boxout).

FLEET AND MOBILITY SUPPLIERS

the young and the fresh in our industry with the Smart Mobility Start-up of the Year Award.

The Smart Mobility Start-up of the Year Award rewards a promising start-up developing innovative products or services in the fleet & mobility ecosystem, with high potential for growth.

REMARKETING Vehicle remarketing is an essential ingredient of the fleet management business. For the fourth year, Fleet Europe will be handing out the Fleet Europe Car Remarketing Award, to an actor in the remarketing sector that has developed an outstanding innovative product or service in the field of international automotive remarketing operations. The award can be won by any type of actor within the remarketing process, including start-ups and smaller traders.

HALL OF FAME The vehicle fleet industry has a strong and long history, with decision makers, business leaders and experts contributing to the maturity of the fleet and mobility business and the fleet managers’ profession. Each year, we celebrate a top-class industry expert as the new inductee into the Fleet Europe Hall of Fame.

This year’s winner will be decided by a designated jury under the presidency of Philippe Bismut, winner in 2014.

One word describes today’s fleet and mobility industry: transformation. This process is driven by new ideas and innovation. To underline the importance of innovation, the Fleet Europe Innovation Award 2019 celebrates the newest solutions and services of the supplier industry.

In particular: a solution, product or service from vehicle fleet and mobility industry suppliers that is evaluated by our jury as highly innovative and as standing out from the competition, while creating added value for the fleet and mobility customer.

EASY TO APPLY Go to the Fleet Europe Summit 2019 website for more information, and become a candidate: summit.fleeteurope.com

START-UPS Innovation goes hand in hand with disruption. Indeed, the transformation from fleet to mobility inspires innovators to set up new companies. For the fourth time, Fleet Europe celebrates

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Edward Kulperger, Vice President Europe, Geotab and Jury President 2019

LOOKING FOR DISRUPTION “The Fleet Europe Awards bring organisational and individual excellence to the forefront,” says Geotab’s Edward Kulperger, Jury President for the Awards for fleet and mobility customers. “It is an exceptional way to demonstrate and share innovations with your contemperaries in order to establish best practices.”

What about the neutrality of the competition ?

“Ethics and integrity are cornerstones of the Fleet Europe Awards process. I love seeing a truly equal representation on the jury committee from indviduals that represent industry in all aspects and across all cultures. We strive for inclusion and neutrality goes without saying as we have a reponsibility to ourselves, our companies and our environment in whole.”

What kind of new initiatives do you hope to see with the candidates this year ?

“We are in such an incredible time in the connected fleet and mobility era and companies have really pushed the envelope in the past decade on the TCO front...so as 2020 is upon us I really expect and hope to see disruptors in 3 areas: Safety, EV adoption and Carsharing initiatives.”

FLEET EUROPE #108

Safety Fleet 4 European Manager of the Year

www.kia.com

Niro goes electric.

Introducing the new Kia e-Niro.

The latest entry in the Kia Electrified range.

There’s a new EV in town and it’s ready to roll. The new Kia e-Niro comes with a fully electric range of up to 455 km, spacious interior, the latest charging technology, and a 7-year warranty. Plenty of reasons to say that there’s nothing like a Niro.

*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. The WLTP combined cycle range for the e-Niro is 455 kilometres (282 miles) for the long-range 64 kWh battery pack, and 289 kilometres (179 miles) for the standard (39.2 kWh) battery pack. The specified driving range 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.