Fleet Europe °109

109 09/2019

FOR INTERNATIONAL FLEET & MOBILITY LEADERS

SAFETY

AUTONOMOUS

Tyres, the crucial element

The collaborative ecosystem

CONNECTED

Nexus communication - Fleet Europe #109 - Periodic magazine - SEPTEMBER 2019 - Deposit Office X

Why Bridgestone goes Telematics

MaaS Grasping the cost of Parking

VALUE YOUR FLEET THINK REMARKETING • How powertrain selection impacts Residual Values • Remarketing processes turn digital • Defleeting, tips and tricks • Dos and don’ts to optimise the Remarketing process

FLEET EUROPE SUMMIT

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

REMARKETING 4-31 4

EVs are finally making their presence felt in the True Fleet registrations. By the end of 2019, electric cars will probably hit six figures in the EU18 market.

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Electric is reaching TCO parity

Fleets switch to petrol, except in Germany On a stable fleet market, petrol is nibbling away market share from diesel – except in Germany, where the market is growing.

Fleets are serious about alternative powertrains Is it a good idea to swap diesel-powered for petrol-powered vehicles? Are EVs already a feasible alternative? We spoke with four fleet managers about their powertrain mix.

12 Why your SUV needs a tow bar A car’s value is determined by more than just the brand, the body work, the bumps and scratches. Its options and extras can push its residual value up (or down).

16 Spoticar, one label to replace them all PSA Groupe will replace seven of its eight used car labels by the new brand “Spoticar”. We spoke with Marc Lechantre, Director of the Used Car Business Unit at PSA.

14 CPOs and Transparency elevate confidence TCO parity between EV and ICE cars is no longer utopic but strong Certified Pre-Owned programmes and brand transparency are a must.

16 Why CarsOnTheWeb became ADESA Europe Why did KAR Auction Services acquire CarsOnTheWeb to rename it ADESA Europe? A quick Q&A with executive Benjamin Skuy.

18 CARA fights for your data rights

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Mileage fraud and transport documentation are two obstacles to faster growth for remarketing in Europe. But CARA is willing to resolve them.

A digital remarketing revolution Technology is disrupting traditional remarketing routes and helping fleets maximise residual values.

22 Remarketing in practice Here’s how you can pick the right moment and channel to cycle your vehicles out.

26 “Acceptance of ECMR is key” Cross-border logistics is the next frontier for progress in pan-European remarketing. Where governments fail – by not universally adopting eCMR – the industry is succeeding.

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28 Defleeting, but not as we know it The vehicle inspection business is about to change profoundly.

Clipboards and humans are out, computer vision and machine learning are in.

Join the Fleet Europe Remarketing Forum 2019 Remarketing cannot escape the effects of digitisation, new powertrain options and changing consumer demand. Join us at the Remarketing Forum on 6 November in Estoril.

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

FLEET EUROPE #109

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

JOURNALISTS: Daniel Bland, Stijn Blanckaert, Tim Harrup, Jonathan Manning, Alison Pittaway, Mark Sutcliffe

PICTURES: ©Shutterstock

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

TO CONTACT OUR TEAM: FirstletterfirstnameLastname@nexuscommunication.be 2

CONNECTED 34

32 Why used-car leasing deserves consideration: Used-car leasing is a minority slice of the fastgrowing private lease market. And corporate used-car leasing? Negligible – for now.

er Long

Jack: Reducing windshield maintenance costs in less than 30 seconds Nicolas Chorine and Thibaut Cardinael are business developers for windshield damage detection solution Jack. Jack has been developed with the expertise of AGC, a leading glass supplier worldwide.

SAFETY 38

On the road to safer tyres Today’s tyres are highly technological and much more than just some rubber on a rim. Year after year, innovations enhance their performance and make them safer.

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Why you need to reconsider all-season tyres Initially, all-season tyres seemed reserved to price-conscious private buyers of B segment cars. In the meantime, the offer has expanded considerably.

NEW ENERGIES 44

36 Bridgestone: tyres going digital In April 2019, Bridgestone announced its acquisition of TomTom Telematics. We discussed the new strategy with top executive Laurent Dartoux.

Sustainable tyre management: from manufacture to end of life The manufacturing and recycling of tyres is a resource and energy-intensive process which requires careful management to minimise its environmental impact.

SHARED MOBILITY 46

9 hacks for hassle-free car sharing Corporate car sharing has several benefits, such as decreasing congestion, reducing costs and efficient use of the fleet. With these tips, you can enjoy it even more.

AUTONOMOUS 48

Autonomous vehicles: who’s collaborating with who?

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.

MaaS

40 Mobile fitting set for faster growth: The 24/7 demands of the modern economy mean company car and van drivers increasingly expect tyre fitters to come to them, rather than having to visit a fitting centre.

50

How parking charges alone can cover the cost of corporate mobility solutions Parking charges in major European capitals and regional centres are some of the highest anywhere in the world.

We also focus on these channels on our website.

Read all these selected articles here:

47 AVAILABLE WITH INTEGRATED Smart start-ups for smart sharing DRIVEGUARD RUN FLAT TECHNOLOGY (RFT) The really ‘smart’ start-ups are those that are ON SELECTED SIZES

providing solutions for the growing shared mobility market, filling the newly created gaps.

ors in the same

ADVERTISERS FLEET & BUSINESS

COURAGE MOVES YOUR BUSINESS FORWARD

FLEET EUROPE

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 26/07/2019 13:49 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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FLEET EUROPE #109

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REMARKETING

ELECTRIC IS REACHING TCO PARITY @DieterQuartier

EVs are finally making their presence felt in the True Fleet registrations.

By the end of 2019, electric cars will probably hit six figures in the EU18 market. On some markets, the TCO is on a par with ICE cars – all depends on discounts, subsidies and residual values.

FLEET EUROPE #109

Electric is finally appearing to make it presence felt in the True Fleet new car market during the first six months of 2019, already up by almost 27,000 registrations from 1st HY 2018. The momentum is finally building and at the present rate will probably see the fuel type hit six figures by the end of 2019. Hybrid has also increased but by a more sedate 1.7%. Already in the six-figure club, it could finish with close to quarter of a million registrations, Dataforce finds.

The Tesla Model 3 is the rising star – many corporates have been waiting to take delivery of the all-electric alternative to the German premium C and D segment saloons. Interestingly, Renault has been shifting a lot of Zoes in the first half-year of 2019 and the BMW i3 has climbed to number three, ahead of the Nissan Leaf and the VW Golf.

TOP 10 PC TRUE FLEET ELECTRIC MODELS – EU18 1. Tesla Model 3 2. Renault Zoe 3. BMW i3 4. Nissan Leaf 5. VW Golf 6. Hyundai Kona 7. Tesla Model S 8. Jaguar I-Pace 9. Audi E-Tron 10. Smart ForTwo EU18 – Belgium, Czech Republic, Denmark, Finland, France, Germany, Italy, Latvia, Lithuania, Luxembourg (includes dealerships), Netherlands, Norway, Poland, Slovakia, Spain, Sweden, Switzerland, United Kingdom.

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Discount is not to be discounted One of the reasons why European fleets are starting to adopt all-electric vehicles is the fact that their TCO is finally flirting with that of ICE cars, especially on markets with high incentives. Still, Autovista Group’s Senior Data Journalist Neil King points at an element that should not be neglected: discounts on petrol and diesel cars.

His company drew up a comparison for the VW Golf in its home country. TCO data was collated from Autovista’s Car Cost Expert solution on the VW e-Golf BEV in Germany and its closest ICE equivalents in terms of price, trim level and power output. TCO is broken down into acquisition costs and utilisation costs, the latter consisting of insurance and fuel costs, utilisation taxes and costs for servicing, tyres and general wear.

“If you do not factor in discounts on the ICE models, the e-Golf performs very well. It has a TCO saving of over ¤800 compared to the diesel variant and ¤700 compared to the petrol model in a 36 month/45,000km scenario. This is based on a comparison of a similarly powered and equipped Golf 1.6TDi diesel and petrol-powered Golf 1.5TSi after 36 months and 45,000km,” Mr King explains.

“Utilisation costs for the e-Golf are about ¤1,000 and ¤700 lower than for the petrol and diesel Golf variants respectively. Acquisition costs are only ¤300 higher than for the petrol Golf and are even ¤150 lower compared to the diesel and hence the TCO advantage.”

TCO COMPARISON FOR ELECTRIC, DIESEL AND PETROL VW GOLF GERMANY, VW E-GOLF VS DIESEL AND PETROL VARIANTS, TCO BREAKDOWN, 36MONTHS/45,000KM VW Golf VII, Electric (Battery), e-Golf VW Golf VII, Diesel, Golf 1.6 TDI SCR DSG (Comfortline) VW Golf VII, Petrol, Golf 1.5 TSI ACT OPF BlueMotion DSG (Highline) 0

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TCO breakdown, €’000s

Acquisition Costs

Insurance

Fuel

Utilisation Taxes

Wear/Tyres/Service

Source: Car Cost Expert, Autovista Group

GERMANY, VW E-GOLF VS DIESEL AND PETROL VARIANTS, TCO BREAKDOWN, 36MONTHS/45,000KM (10% DISCOUNT APPLIED TO THE GOLF TDI AND TSI) VW Golf VII, Electric (Battery), e-Golf VW Golf VII, Diesel, Golf 1.6 TDI SCR DSG (Comfortline) VW Golf VII, Petrol, Golf 1.5 TSI ACT OPF BlueMotion DSG (Highline)

The risker takes it all The situation could be entirely different with the new electric kids on the block – the Peugeot e-208, the Opel Corsa-e, but also the upcoming VW ID3. Their price-tag is more attractive and they boast stronger residual values, partially because their battery pack reassures the majority of prospective EV buyers. 340km (WLTP) is indeed better than the current B and C segment EV models, including the VW e-Golf (230km), BWM i3 120Ah (310km) and Nissan Leaf 40kWh (270 km) whereas their list price of roughly ¤25,000 excluding VAT is between ¤5,000 and ¤8,000 lower.

Logically, the TCO of these new EV models should dive below that of comparable ICE models. That’s the story PSA is selling with the Peugeot e-208, but does it hold water? A quick look at two online leasing calculators reveals a painful truth. In Belgium, for instance, even an EV-promoting lease company like LeasePlan (which

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TCO breakdown, €’000s

Acquisition Costs

Insurance

Fuel

Utilisation Taxes

Wear/Tyres/Service

Source: Car Cost Expert, Autovista Group

is part of the EV100 initiative) asks 63% more per month for a Peugeot e-208 Allure than a 208 Allure 1.2 PureTech Automatic (based on 48 months/60,000km).

In EV-promoting Netherlands, Directlease asks ¤580 per month for a e-208 GT-Line. The comparable 208 GT-Line 1.2 PureTech 130 EAT8 is just ¤453. It is difficult to imagine that this difference can be offset by lower ‘fuel’ costs – which are not included in the offer – or fiscal discounts.

OEMs are sticking out their neck to get affordable and practical EVs on the streets. To make them sell on the fleet market, leasing companies need to

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do the same and increase their residual values for EVs. Today’s relatively small new car volumes combined with tomorrow’s increased demand seems to imply a limited risk. Besides, fortune favours the brave.

The higher discounts that buyers can negotiate on petrol and diesel cars make EVs less competitive.

FLEET EUROPE #109

A key factor is the ¤4,000 incentive offered for BEVs in Germany.

“However, discounts that buyers can negotiate on the petrol and diesel cars need to be considered too. Applying a 10% discount to the Golf TDi and TSi for example, acquisition costs of the e-Golf are more than ¤3,500 higher than for the petrol car and over ¤3,000 more than for the diesel. Consequently, both the petrol and diesel variants offer a ¤2,000 TCO saving over the electric Golf,” he concludes.

REMARKETING

FLEETS SWITCH TO PETROL, EXCEPT IN GERMANY @DieterQuartier & Richard Worrow, Dataforce

On a relatively stable True Fleet Market, petrol is nibbling away market share from diesel – except in Germany, where the market is growing. What’s cooking and how will the used car market be affected?

Compared to the first half-year in 2018, the Passenger Car True Fleet Market for the EU18 countries monitored by Dataforce has contracted ever so slightly (-0.45%) in the first six months of 2019. With 7.85 million new car registrations, the total market fell 2.7% from 2018, but this is pretty close to 2017’s 7.89 million new cars for 1st HY which at the time was the record in itself.

The True Fleet market is indeed outperforming the private market. It has a clear preference for the German brands: the top 3 spots are occupied by VW, BMW and Mercedes, respectively.

Noteworthy is that the VW group hold no fewer than four places inside the Top 15 fleet brands.

Top 3 True Fleet models are the VW Golf, Skoda Octavia and Renault Clio.

Interestingly on a model level we must wait until 4th place on the ladder for the first SUV model, the VW Tiguan, but this was less than 700 registrations short of taking the Renault Clio’s 3rd place.

FLEET EUROPE #109

Germany bucks the trend The powertrain debate steered by legislative measures and environmental concerns is ongoing on the Old Continent. In general, fuel types have continued along the same overall trend as seen last year. Within True Fleet petrol continues to grow while diesel continues to decline. Amazingly, the growth in petrol of 12.2% is matched exactly by the decline in diesel, falling by 12.2 %. This drop sees diesel registrations below the 1 million mark for the first time since 2010.

German brands have been doing their best to convince customers that diesel is still the best solution for heavy usage.

TOP 10 PC TRUE FLEET BRANDS – EU18

TOP 10 PC TRUE FLEET MODELS – EU18

1. VW 2. BMW 3. Mercedes 4. Renault 5. Audi 6. Peugeot 7. Skoda 8. Ford 9. Opel 10. Toyota

1. VW Golf 2. Skoda Octavia 3. Renault Clio 4. VW Tiguan 5. Peugeot 3008 6. VW Passat 7. Ford Focus 8. Nissan Qashqai 9. Mercedes A Class 10. Audi A4/S4

EU18 – Belgium, Czech Republic, Denmark, Finland, France, Germany, Italy, Latvia, Lithuania, Luxembourg (includes dealerships), Netherlands, Norway, Poland, Slovakia, Spain, Sweden, Switzerland, United Kingdom.

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Available with diesel, petrol and CNG powertrains, the Skoda Octavia is a True Fleet steady-seller.

On the one hand, major fleet markets like the UK, France, Italy and Spain see their diesel share fall further. Carmakers have increased their range of attractive petrol-powered models offering a competitive TCO. The eternal VW Golf can be had with a frugal 1-litre petrol unit and so can the Skoda Octavia.

The Renault Clio comes with a 0.9-litre engine. The VW Tiguan and the Peugeot 3008 – Europe’s most popular crossover models – offer highly-efficient 1.5 and 1.2 units, respectively.

On the other hand, Germany has refound its appetite for diesel. There could be various elements at play. Last year, the domestic brands were unable to deliver many diesels because of the introduction of WLTP and RDE. This year, the backlog seems to be solved and customers who had been waiting have finally been served. Also, fleets seem to regain trust in diesel now that the Euro 6d-temp emission standard is in place, safeguarding the fuel’s future in the medium term.

OEMs have been doing their best to convince their major accounts – verbally and financially – that diesel is still the best option for those who drive

long distances. Last but not least, leasing companies too are stabilising their residual value forecast now that there is a better balance between petrol and diesel in their portfolio.

Residual value outlook As to the evolution of residual values of diesel and petrol, the major corrections have already taken place. “Used diesels used to sell at a premium, but today resale prices are on a par with petrol models on many markets,” explains Dean Bowkett from Bowkett Auto Consulting Ltd. “With new diesel sales having dropped to the levels seen two decades ago, before they were heavily promoted by governments to drive down CO2 emissions, oversupply on the used car market is disappearing. In fact, there might even be more demand than supply in a couple of years, which inevitably has a positive effect on diesel RVs,” he concludes.

It could be the other way around for petrol cars. Fleets looking for an alternative for diesel have mostly been switching to gasoline, the TCO and eco-friendliness of which are now increasingly being questioned. They emit ultra-fine and hence difficult to filter (and measure) particulate matter.

Some fleets are even rolling back their decision, shocked at the fuel bill that has inflated more than expected.

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DIESEL TO SURVIVE FOR ANOTHER 20 YEARS In June, BMW board member Klaus Froelich said that “a best assumption of 30% of electrified sales (battery-electric vehicles and plug-in hybrids) by 2025 means that at least 80% of our vehicles will have an internal combustion engine.” He added that his company expects diesel to survive for at least 20 more years and petrol at least until 2050 (source: Autonews.com).

How does competitor-andpartner Mercedes-Benz Cars see things? “By 2025, we expect 15-25% purely electrical share.

Conversely, according to this prognosis, at least 75% will still have an internal combustion engine on board - with corresponding electrification. We are systematically implementing our portfolio so that we could reach more than half of our car sales by at least plug-in hybrids or even all-electric vehicles by 2030,” a spokesperson told Fleet Europe. Mercedes is the only brand that offers diesel plug-in hybrids, incidentally.

FLEET EUROPE #109

Interestingly, diesel engines from both the German Private and True Fleet markets show an increase of 19.1% and 6.7% respectively.

REMARKETING

FLEETS ARE SERIOUS ABOUT ALTERNATIVE POWERTRAINS Benjamin Uyttebroeck

@uytteb

Diesel is on its way out, or is it? Is it a good idea to swap diesel-powered for petrol-powered vehicles? Are electrified vehicles already a feasible alternative? Fleet Europe spoke with four fleet managers about their powertrain mix.

Focus on CO2 and air quality

“We haven’t completely excluded diesel from our policy, but we are pursuing alternative fuel solutions wherever possible,” said Andy Leeden, Global Category Manager Fleet at pharmaceutical company AstraZeneca and former International Fleet Manager of the Year. “We’re much more interested in hybrid, plug-in hybrid and electrified vehicles where there is availability and it is an appropriate solution for the requirement.”

Andy Leeden,AstraZeneca: “There’s a conflict with CO2 reduction if you just switch from diesel to petrol.”

AstraZeneca still orders diesel vehicles, but only when a better option cannot be found. To a large extent, this is market specific. “We have to look at it on a country by country basis. We have to recognise the external influences from taxation, incentives and obviously the availability of alternatives.”

The smartest kilometre

© Sacha Cnockaert

FLEET EUROPE #109

Sweco is an international engineering and architecture consultancy that focuses its activities on the three Nordics (Finland, Sweden, Norway), Denmark, the UK, Belgium, Germany and the Netherlands. The company’s business model is based on a decentralised responsibility, and that includes fleet management. Earlier in 2019, Vicky De Bollen, Director Finance, Facility & Legal at Sweco Belgium, won the Fleet Owner of the Year Award.

Vicky De Bollen, Sweco: “I’m waiting for electric city cars.”

“The smartest kilometre is the kilometre that isn’t driven,” explained Ms De Bollen. “We give our staff a lot of flexibility and we encourage them to work from home one or two days a week.”

For kilometres that need to be driven, the company is gradually electrifying its

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After diesel fell out of favour, some companies started switching part of their fleet to petrol. That has not been the case at AstraZeneca. “We are focused on tackling air pollution and climate change, so we didn’t want to do that,” said Mr Leeden. “There’s a conflict with CO2 reduction if you just switch from diesel to petrol. Instead, we prefer hybrid and plug-in hybrid solutions.”

At this moment, 76% of the European AstraZeneca fleet is diesel-powered.

Looking at 2019, however, that number changes dramatically. Only 27% of all vehicles ordered by AstraZeneca this year have a diesel engine. The remaining 73% are exclusively hybrids, plug-in hybrids and full EVs – there’s no petrol in the mix.

entire fleet. “In the higher segments, we only allow EVs. Things are a bit different for smaller cars, for which electric options aren’t available yet.”

“We have made the choice to ban diesel cars,” said Ms De Bollen, “and to go for petrol cars where EVs aren’t available yet.

From the moment an EV with 400km range is available in a certain segment, you no longer need petrol cars.”

“We follow the market very closely.

Previously, we looked at all fleet options once a year, but we now do that each quarter. We started noticing diesel TCO going up to a point where cars that used to fit in our budget didn’t fit anymore.” For electrified alternatives, however, Sweco allows a TCO that can be up to 10% higher in a move intended to encourage staff to choose an EV.

Big fleet.

Sold with small effort.

AGOF digital facts: Unique users from mobile.de and motortalk.de in May 2019

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Reach out to more than potential car buyers to sell your whole fleet, quick and easy.

REMARKETING

Fleets are faced with decisions of local, national and European governments that can be conflicting.

Small city cars like the Mini E can help complete the powertrain transition.

Conflicting government decisions Patrick Martinoli, Managing Director for Innovation, Projects and Automotive Expertise at Orange France, is critical of the uncertainty governments cause: “We are permanently faced with decisions of local and national governments and of the EU that appear to be conflicting. We are asked to reduce our CO2 emissions, but we are also asked to stop using diesel-powered vehicles because of the negative health impact of fine particles.”

Patrick Martinoli, Orange: “Low electricity prices in France help EVs obtain a better TCO.”

“For our car-derived vans we have banned diesel entirely. We still order diesel LCVs, though, because OEMs do not offer petrol-powered vans and electric vans don’t yet meet our requirements.”

Taxation goes wild

FLEET EUROPE #109

Ferenc Hegedus, Global Category Lead Auto Lease, Rental and Ground Transportation at IBM, reckons that leasing companies and car manufacturers could do more to increase RVs of EVs. “Some leasing companies are starting to take a bigger risk now,” said Mr Hegedus, “but they could do more.

Either way, I think EVs are moving closer to ICE cars.”

Ferenc Hegedus, IBM: “Leasing companies can do more to boost RVs of EVs.”

“As to diesels, we have banned them in Hungary, for instance, because tax changes have made them much more expensive than the petrol ones. We’ll

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Mr Martinoli believes there is room for improvement for the residual value of electric cars. “Electric vehicles should see their RVs go up because that’s an element that makes plug-in hybrids and battery-electric vehicles uncompetitive at this moment. Fortunately, electricity is very cheap in France so that helps them perform better from a TCO standpoint.”

“RV uncertainty has more to do with a lack of confidence in the technology than with changing government policies, as was the case for diesel,” continued Mr Martinoli. “However, we see that batteries are perfectly reliable, and they shouldn’t affect residual values.”

have to see what happens next year, when WLTP will hit the industry even harder.”

“Even though our overall diesel share has dropped from over 90% to around 75%, we’re definitely not phasing out diesel entirely. About 4% (a number that’s growing) has alternative powertrains and the rest is petrol-powered.”

Mr Hegedus emphasises the importance of taxation. “If taxation goes wild in a particular country, we have to switch our mindset completely.” So, keeping an open mind and being ready to adopt change is probably the most important lesson.

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also enter the details of two vehicles so you can compare their TCO, taking into account all applicable taxes for the specific customer profile. At the end of the process, Car Cost Advisor produces a clear and handy PDF sheet with all details for the driver to take home.

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Senior trainers will give passionate master classes, trainings and courses that can be combined with optional e-learning modules.

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With the development of Car Cost Advisor, EuroFleet Consult reduced the many changes in taxation and legislation to their essence, effectively cutting through the complexity of all fiscal consequences linked to a vehicle. By using Car Cost Advisor, the sales pitch can be focused on serving the precise mobility needs. Backed-up by the tax and TCO discussion.

Training and coaching In order to guarantee that users of Car Cost Advisor put their knowledge of fiscal and TCO developments to good everyday use, the EuroFleet Consult team will build on its vast experience in training and coaching programmes.

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More info Would you like to find out how EuroFleet Consult can help you optimise your processes?

Get in touch with Ward Martens at +32 2 709 54 40.

EuroFleet Consult is an automotive training and consultancy company operating in the fleet and car financing sectors, working for major automotive manufacturers, dealer groups, leasing companies, insurance companies.

FLEET EUROPE #109

Simply choosing the right powertrain is difficult enough. Evolving CO2-emission levels and changing taxation regimes have increased uncertainty at the decision table. Adding all available finance options makes the mix even more complex, and a supposedly objective value like Total Cost of Ownership (TCO) has become less predictable and less certain.

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REMARKETING

WHY YOUR SUV NEEDS A TOW BAR @Frank_J_Jacobs

The value of optional equipment on a used car is country-specific and changes over time.

A car’s Residual Value is determined by more than just bumps and scratches. Its options and extras can also push its RV up (or down). Here’s why that’s important – and how to make it work for your fleet.

Few fleet cars are acquired ‘naked’.

Drivers use the margin on their vehicle budget to customise them with favourite options and extras: for more comfort, better entertainment or increased functionality – or just because it looks nice. But fleets, beware! Those specifications can have a significant impact on your vehicles’ RVs. And that ultimately translates to your Total Cost of Ownership.

Typical risk The matrix of variables determining the RV outcome is quite complex. Vehicle segment and age, RV amount, country preference, changing fashions and type of equipment all play a role. One typical risk is under-specifying, says Maarten Baljet, Director of Business Development at RV specialists Baehr & Fess.

“Say, you’re trying to sell a three-yearold BMW 7 Series, without a sliding roof. Because this car has a high RV in absolute terms, potential buyers are very picky; and the sliding roof is a very attractive option. Your 7 Series without sliding roof will sell at a lot less than another one which does have one.”

FLEET EUROPE #109

Harder sell Another example? Tow bars. Perhaps they don’t make sense on a Smart – where a tow bar could actually lower RV - but on an SUV from a certain size, they’re pretty much expected. So a used SUV without one will be a harder sell. “Some equipment can be installed

after the vehicle’s first life, to increase RV. Tow bars are a good example.

Sliding roofs in a high-end vehicle aren’t,” says Baljet.

But there are other ways to maximise the return on options and extras. “For example, Xenon or LED headlights are clearly more popular in some countries, whereas in others, the used-car price premium will be limited. The same goes for cars with heated seats.”

Under-specification is a typical risk: some used cars sell significantly better if they have a sliding roof.

Complete picture Many RV projections are based on just the vehicle. In order to get a complete picture, the equipment needs to be included into the calculation. The difference can be significant. But determining that value requires expert insight in the relevance of certain details: “Some equipment is brand-specific, which could increase its value. A general rule is to shy away from exotic colours, as they will harm RVs – but a Jaguar in racing green can be very attractive.”

Some options and extras are no-brainers, however: “Airconditioning is always a good idea, as are elements that enhance a car’s comfort level or its optics, like high-quality wheel rims. It’s also a good idea to look at your vehicle segment – tow bars for SUVs, etcetera.

And some country-specific preferences are easy too: seat heating will be popular in Sweden, less so in Cyprus.”

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OPTIONS AND EXTRAS: BASIC RULES While a company like Baehr & Fess takes a microscopic view on the impact of options and extras on RVs, most fleets can suffice with following basic rules: • Make sure the cars you acquire are attractive for resale; tailor the list of allows options and extras accordingly.

• Don’t allow over-specification.

Costly options or extras are hard to earn back when reselling the car.

• Don’t enforce under-specification either. Saving money on desirable options and extras will harm RVs.

Everyone has an angle.

Safety is ours.

Safety is good for business.

A simple collision in a car park can result in up to eight times the cost of fixing the damage to the car.

Time and business lost, increased insurance premiums, incident reporting and the associated paperwork are the real costs behind low-speed collisions in the city.

With our latest update to City Safety we have added steering support to help the driver take evasive action when required.

Our focus is making your life easier, protecting your investment and saving money where it matters most – on the bottom line.

VOLVOCARS.COM/FLEETSALES

Official fuel consumption for the Volvo XC60 range in l/100km: Urban 6.1 – 10.2, Extra Urban 5.0 – 6.8, Combined 5.4 – 8.0. CO2 emissions 143 – 183 g/km. Fuel consumption figures are obtained from laboratory testing intended for comparisons between vehicles and may not reflect real driving results. Models may vary depending on market.

REMARKETING

CPOS AND TRANSPARENCY ELEVATE CONFIDENCE @DieterQuartier

With the arrival of EVs like the Volkswagen ID3 and Opel Corsa-e, TCO parity with ICE vehicles is no longer utopic. A major challenge remains: building strong residual values.

That’s where Certified Pre-Owned programmes (CPOs) and more transparency from the brands come in.

Selling used EVs takes a different approach. The industry lacks experience and needs to upgrade its remarketing competence.

Nobody knows how much today’s new EV models will be worth in three or four years, when they enter the market as a used car. There are a few things that can support their value, however. We presented three specialists with three statements and here is how they see things from a remarketing perspective.

vehicles require a 1 Electric different B2C remarketing

FLEET EUROPE #109

approach and therefore an adapted Certified Pre-Owned programme

Bart Massin: Today, the battery is the great unknown when you buy a used EV. That is why we advocate the implementation of a certificate that indicates the remaining battery capacity vis-à-vis the one mentioned on the COC as well as the charging effectivity.

That’s the only way to build consumer confidence and to provide warranty.

The battery should for instance have more than 70% of its initial capacity within the legal warranty term.

Johan Verbois: A major objective of a CPO programme is to create consumer trust in both vehicle and seller. A customer promise can offer that, including a quality assurance and a money-back guarantee. Research regarding CPO programmes for EVs shows additional customer expectations regarding the state of the battery, its range and the expected further degradation. Many players focus on warranty only, which is not convincing consumers of the current condition. We don’t think you need a completely new CPO but we believe more in a spin-off approach where a 14

specific package of checks and guarantees meet the consumer’s lack of trust.

Stephan Heineke: Jaguar Land Rover has revised its certified “Approved” pre-owned programme to address the specific requirements of customers considering a used PHEV or BEV. This has been done to ensure that buyers of our used electric vehicles benefit from the same high levels of customer care and reassurance as anyone buying a petrol or diesel powered “Approved” vehicle. The existing 165 multipoint inspection now includes EV specific items such as the battery state of health (SOH). In addition to this, the existing 24 month “Approved” warranty is also now applicable on our used electric vehicles.

applications would boost consumer confidence and hence residual values

B.M.: As the market matures, the customer will want information on many more aspects than just remaining capacity. What’s the maximum charging speed at a fast charger and how long can it be maintained? Does the battery pack come with cooling and heating? How many cycles can it handle? Does it contain cobalt? As to second-life applications, OEMs have little experience. Today, older batteries are already used to balance the grid.

I believe the energy industry will be buying these batteries directly from the OEMs. Recycling would be the final step.

J.V.: Setting or forecasting residual values is heavily driven by confidence in the future of the product. The less certain the outlook and the less details the industry shares, the more reluctant the lessors are to take risks. More openness in areas like battery performance and degradation in different types of use, the mid-term projected battery evolution and the next generation plans could help increase the confidence of the risk divisions.

S.H.: The batteries within our BEVs benefit from a transferable 8 years/160,000km warranty. This provides customer reassurance and will lead to solid residual values. The I-Pace has class-leading residual values in all the key European markets according to the latest data provided

by Autovista and DAT/Autotelex.

Jaguar Land Rover plans to further prolong the life of I-Pace batteries through second-life energy storage trials and develop strong global battery recycling partnerships.

increase the number of EVs in their fleet. To achieve that, EVs must be offered at lease rates that can compete with those of ICE cars. That means they have to work on residual values, but also on a new approach for insurance, maintenance and repair, service partners, sales and administration processes, and so on. Those who tackle this today will be able to capitalise on an attractive B2C offer with high residual values within four or five years.

J.V.: Over 75% of future vehicle sales are expected to be on-demand vehicles. Who will be the major players or the main fleet owners remains to be seen, but they will have the main chunk of EVs. These players can only sustainably control the holding costs if they invest in upgrading their own remarketing competence. Investing in a full 360° approach towards class-leading B2C remarketing capabilities is a must for success. Flexibility – selling locally or cross border, creating second life opportunities in ride hailing, car sharing, second hand lease, … - is paramount.

S.H.: Jaguar Land Rover anticipates the majority of pre-owned PHEV and BEV vehicles to be remarketed via its own “Approved” dealer network which has been trained to professionally retail such vehicles and to provide customers with a premium ownership experience. Jaguar Land Rover will set up a pan-European remarketing platform that will enable seamless cross border sales as well as different physical and digital pre-owned retail formats. In this respect Jaguar Land Rover closely evaluates opportunities with its priority leasing partners to integrate remarketing platforms.

the biggest EV operators, 3 As leasing companies have an

Bart Massin, Managing Partner at EV service provider and consultancy Stroohm: “As the market matures, the customer will want information on many more aspects than just remaining capacity.”

Johan Verbois, Managing Partner at remarketing consulting firm 5S Consulting: “The less certain the outlook and the less details the industry shares, the more reluctant the lessors are to take risks.”

Stephan Heineke, Director Used Car Jaguar Land Rover Europe: “Jaguar Land Rover will set up of a pan-European remarketing platform that will enable seamless cross border sales as well as different physical and digital pre-owned retail formats.”

important role to play in getting used EVs on the streets through B2C channels

B.M.: I agree 100%. Still, to be able to offer a significant volume on the B2C market, lessors must drastically

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FLEET EUROPE #109

more information 2 Providing on warranty and second-life

REMARKETING

SPOTICAR, ONE LABEL TO REPLACE THEM ALL Stijn Blanckaert

Following the announcement that PSA Groupe will replace seven of its eight used car labels by the new brand “Spoticar”, Fleet Europe spoke with Marc Lechantre, Director of the Used Car Business Unit at Groupe PSA. Spoticar is the second-hand vehicle channel that will cover all PSA brands except DS. It has already been launched in France and 10 other European countries will follow later this year, starting with Spain and Italy. “Within the framework of PSA’s Push to Pass-plan, we decided to replace seven of our eight existing second-hand car labels by one new brand,” says Marc Lechantre. “Only DS Certified, the second-hand label of our premium brand will remain alongside Spoticar.”

reason is simplification for our dealers, who often represent several of our group’s brands and had to invest in different labels with all the obligations that came with it. The Spoticar label makes their organisation less complex. The third reason is that replacing eight different labels by only two, helps us to effectively concentrate our marketing efforts.”

Why did you change your strategy?

The ambition is to help the group reach 1,000,000 transactions, and we are confident that we can reach that goal by the end of the Push to Pass Plan in 2021.

“The launch of one B2C-multibrand label will enlarge our customer base with people interested in other used cars than those of the PSA brands. The second

PSA Groupe already sells about 800,000 second hand cars on a yearly basis. What is the ambition for Spoticar?

Marc Lechantre, Director of the Used Car Business Unit at Groupe PSA

Read the complete interview here.

WHY DID COTW BECOME ADESA EUROPE? @Frank_J_Jacobs

Why did KAR Auction Services acquire CarsOnTheWeb? A quick Q&A with KAR top exec Benjamin Skuy.

Earlier this year, KAR acquired COTW. Why?

FLEET EUROPE #109

“KAR wants to expand internationally into countries where our business model – our brands, our technological tools – can flourish. After starting with the UK, we now move into continental Europe.”

“We have significant aspirations for the European market – bigger than COTW could have managed on its own. KAR is an open remarketer, the biggest provider of private-label auctions in North America. In Europe, we sense a huge volume opportunity that we will explore with ADESA Europe.”

Why go for COTW specifically?

“What was interesting about COTW is their expertise in online, cross-border auctions. For us, that’s a sound basis for future expansion.”

Where do you go from here?

“We’ll be introducing common use of new technology. For example, towards the end of 2019, we’ll launch a selfinspection tool powered by artificial intelligence, both at ADESA UK and ADESA Europe. This is the first of its kind.”

“But we also want to offer additional services. Cross-border logistics is a

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Benjamin Skuy, Executive Vice President of International Markets and Strategic Initiatives at Kar Auction Services

major problem in Europe. We intend to bring the logistics solutions we use in North America over to Europe.”

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

The Car Remarketing Association Europe (CARA) established by key players in the used car market industry 6 REASONS TO JOIN CARA 4. Network with decision makers.

1. Get unique industry insight.

CARA is a forum for top remarketing execs to

As a non-profit, CARA offers a unique forum to

share their views and knowledge.

engage with the industry’s top deciders.

5. Create synergies to benefit your business.

2. Help develop industry standards.

CARA creates and improves standards and shares

In the multi-faceted world of remarketing, CARA is

best practices for the European used-car trade.

the place to bundle and defend shared interests.

3. Learn about digitisation and new market trends.

6. Give the industry the voice it needs and deserves.

CARA aims to understand and enhance new

CARA is committed to defend the industry’s interests,

remarketing business opportunities.

in Brussels and elsewhere.

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

REMARKETING

CARA FIGHTS FOR YOUR DATA RIGHTS @Frank_J_Jacobs

Mileage and Transport: those are the two main obstacles to faster growth for remarketing in Europe.

What is CARA doing to resolve them?

CARA, the trade association for vehicle remarketing in Europe, calls these issues its ‘deliverables’: correct mileage reading and cross-border transport might be complex problems, but they’re solvable.

In separate task forces, the issues are mapped and answers are formulated.

It’s slow, unglamorous work – but if CARA’s wishes and expertise can contribute to the ultimate solution, it will benefit the entire remarketing industry, across the whole of Europe.

Mileage Belgium’s Car-Pass system has shown that fairly simple solutions exist to virtually stamp out mileage fraud, which is a major cause of consumer distrust when it comes to the used-car sector.

FLEET EUROPE #109

CARA initially favoured its own EU-wide CARAPass system, similar to Belgium’s Car-Pass. But its thinking has evolved, explains Roland Gagel, VP of Field Services at SGS and chair of CARA’s Mileage Task Force. “That’s because the industry’s view on data has changed. A government-mandated system like Car-Pass would mean that players are forced to provide their data.

That not only creates issues around data privacy, but also around data monetisation.”

The key mind shift is not just that companies now realise that things like mileage and maintenance history can have a monetary value, but also that monetising these data streams may be necessary to maintain profitability in

EU legislation on vehicle databases is imminent - and CARA wants the remarketing industry to have its say.

an industry facing costly transformations over the next years and decades.

“The question then becomes: What kind of solution do we want? From a consumer standpoint, Car-Pass is a good enough system. From an industry standpoint, we’re looking for a better option.”

“EU legislation on vehicle databases is imminent. We want to avoid a solution that only involves government mandates and consumer protection concerns. We want to add to the debate our industry voice, and our concern that data should not be free.”

Central to cross-border logistics issues is the fact that eCMR is not universally ratified. While a lot of EU countries have, Germany and a lot of others haven’t.” CARA is getting contradictory signals from the field, Mr Reinhold adds: “Certain logistics companies tell us that the OEMs don’t like eCMR. But the OEMs themselves say they don’t care either way. It’s certainly not high on their agenda. So you see: logistics isn’t the same as logic.”

To that end, CARA is allying itself with other organisations, including Germany’s automotive industry association VDA, to approach the new EU commission with its view.

“The real issue, I think, is that eCMR – because of how it’s set up – can’t be manipulated. If it were universally adopted, it would deprive the logistics industry of a certain degree of flexibility. You could say that, by resisting the introduction of eCMR, the players are showing they’re resistant to transparency – make of that what you will.”

Transport

Next steps

Once used-vehicle transports cross national borders, things get complicated. The amount of paperwork increases, traceability decreases.

Solutions exist, for instance eCMR, an electronic bill of lading that is entirely paperless and traceable. The problem is that some countries and industries are reluctant to adopt it, says Wolfgang Reinhold, president of CARA and chair of its Transport Task Force.

So, what’s next? The crucial next phase is CARA’s annual General Assembly, which will be held in Estoril (Portugal) on 5 November, as tradition dictates, a day ahead of the Fleet Europe Remarketing Forum.

“As became apparent at CARA’s summer gathering in Düsseldorf in June, there are many conflicting viewpoints on this topic, also within our organisation. What is clear, is that no single company will be able to solve the issue.

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“At Estoril, we’ll discuss whether to issue a recommendation on the Transport topic, or to continue our work in the task force,” says Mr Reinhold. “As for Mileage, the timing is excellent. It’s our last, best chance to formulate a common stance and lobby for it with the appropriate EU bodies, which are just now coming to grips with the topic,” concludes Mr Gagel.

REMARKETING

SAY ‘YES’ TO THE DIGITAL REMARKETING REVOLUTION Jonathan Manning

Technology is disrupting traditional routes to market for ex-fleet vehicles and helping fleets maximise residual values.

A suite of digital solutions is transforming the ‘total cost of disposal’ of company cars and vans, as fleets and leasing companies look to online channels and artificial intelligence (AI) to help remarket their used vehicles.

Remarketing specialist ADESA suggests fleet vendors should take into account the combined expenses of multiple vehicle movements, storage, inspection and refurbishment when selling stock. Add into the equation the daily losses accrued between the defleet and sale of a company vehicle through depreciation and finance charges, and it’s no wonder that fleet vendors are keen to explore any new opportunity to increase efficiency, minimise disposal costs and maximise residual values.

As a result, new digital solutions are appearing for every stage of the

defleet process from vehicle inspections to sales catalogues to online and physical auctions, as well as direct sales to consumers. In its recently published financial results for the first half of 2019, leasing giant ALD said more than 60% of its used cars were sold via electronic platforms.

End-of-contract inspections As an example, ADESA launched IVI (Intelligent Vehicle Inspection) earlier this year, empowering drivers to conduct their own end-of-contract inspections. The app guides drivers through the process, using a smartphone or tablet to record essential information and capture relevant photos. AI then assesses the cost of refurbishing any damage, and armed with this information vendors can start upstream remarketing, effectively pre-selling vehicles before their fleet life is finished.

Fleets can start to remarket their cars before the end of contracts by getting drivers to inspect their vehicles with ADESA’s Intelligent Vehicle Inspection.

In future, there may not even be a driver or inspector involved in the appraisal process, with companies such as InMotion Labs and ProovStation developing scanners capable not only of delivering a 360-degree appraisal of a vehicle’s condition in just a few seconds, but also estimating its repair costs.

Technology is even bringing greater accuracy to the capture of vehicle data. CarNext.com, LeasePlan’s digital marketplace for used cars, last month acquired AutoManager, a digital vehicle management platform which includes a smart solution for automating the upload of vehicle details directly to the CarNext.com website simply by inputting a Vehicle Identification Number (VIN).

FLEET EUROPE #109

Setting valuations

InMotion Labs’s Car Scanner can appraise a vehicle in less than two minutes.

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There’s a revolution, too, in the data available to vendors in setting valuations for their vehicles, as real-time data feeds replace printed or fixed guides. “We are moving people away from fixed files towards live API data transfers,” said Dylan Setterfield, cap hpi’s international senior forecast manager. He added that valuing cars as accurately as possible and selling

them as quickly as possible is vital to minimise the total cost of disposal.

“Depreciation does not stop.

Used cars depreciate by about 1% per month, and sometimes as much as 1.7%.

The best price is the one that sells a car as quickly as possible at a price that is as close to or above its current market value,” said Setterfield.

Finding more buyers In a classic supply-demand market, vendors and their agents are exploiting the internet to boost demand by reaching a national and even international audience. CarNext.com, for example, attracts pan-European businesses and private buyers via the internet and requires just 32 delivery stores to serve 22 countries.

Aston Barclay’s Vendor Calculator enables vendors to monitor remotely their vehicle sales in real time.

As evidence of how far the remarketing industry has developed in its digital journey, last month Aston Barclay beat both Manchester United and the mobile phone network 3 to secure a Digital Experience 2019 award for Best Mobile

Strategy.

Aston Barclay calls its remarketing system Cascade, enabling vendors to advertise and sell used stock 24/7, before unsold vehicles flow into physical or online auctions. Here, vendors have real-time access to data on their used stock, sales, and prices achieved compared to current market values.

This enables fleets to monitor their sales performance remotely and make instant decisions on whether to accept or reject provisional bids for their vehicles.

The long-term question facing fleets and remarketing companies is how the digital world disrupts vehicle ownership. If, as many experts predict, the future involves massive fleets of shared, autonomous vehicles, will there actually be a used vehicle market at all?

2019

6 Nove m b e r I C o n gres s C e n t er I E s t o ri l

• STAY AHEAD OF THE REMARKETING GAME • VALUE THE POWERTRAIN SHIFT • INCREASE YOUR SALES CHANNEL PERFORMANCE REGISTER NOW More information and registrations on summit.fleeteurope.com

REMARKETING

OPTIMISE YOUR OWNED FLEET’S RESIDUAL VALUE Benjamin Uyttebroeck

@uytteb

The remarketing process is quite straightforward for vehicles in operational leasing. For fleets that are owned outright or fleets in open-end leasing, that’s not the case. Here’s how you can pick the right moment and channel to cycle your vehicles out.

Cars being sold by BCA in the UK.

FLEET EUROPE #109

“Businesses with high cash reserves are likely to make the decision to buy their vehicles outright but placing your capital into depreciating assets rather than into other projects or investments could be a missed opportunity,” said Rory Mackinnon, Head of Asset Funding, ARI Fleet UK. One of the biggest benefits of obtaining your vehicles though a finance lease arrangement is the full freedom at the end of its contract to sell the vehicle or run on into a secondary

period depending on age, mileage and future business plans.

threshold with low mileage, we keep them even longer as pool cars.”

Carglass Belgium manages its vehicle fleet through financial lease on four-year contracts. Ronny Van den Driesch, Audit & Vehicle Manager, said this offers the opportunity to buy the vehicles at the end of their contracts and keep them for a bit longer. “We keep vans until they hit 160,000km and passenger cars until they are five years old,” said Mr Van den Driesch.

“If passenger cars hit the five-year

There’s the rub when you manage your own vehicle fleet in-house: how do you maximise your fleet’s residual value?

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It’s not about RV, it’s about TCO

1

It’s not about residual value (RV), it’s about total cost of ownership (TCO). Make sure you choose the right vehicle for the job and negotiate discounts from the manufacturers so you buy at the best possible price. “A lot of the time,” said Mr Mackinnon, “fluctuations in residuals are about hundreds or even a thousand pounds.

If you get a thousand pounds off the vehicle at the beginning, you have cleared that gap already.”

Ronny Van den Driesch, Carglass Belgium: “You avoid discussions about damages with financial leasing.”

2

Be flexible. A vehicle that hits its mileage or age threshold may still be in perfect working order. Especially if maintenance work has just been done on a vehicle, keeping it for another few months can be a sensible decision. “If you’ve got a vehicle that’s under mileage and that’s due to go back, why not keep it for another six months or so and try to balance mileage, maintenance and depreciation?” suggested Mr Mackinnon.

“There are no right answers but there are definitely wrong ones” Rory Mackinnon (ARI Fleet UK):

7

Continue to analyse and review diesel and EV RVs. Leasing companies mostly use the same market guides to determine their assets’ residual values. With changes in legislation and taxation, and the growing number of low-emission zones, diesel RVs have suffered and this is reflected within the guides. In the case of EVs, there’s uncertainty over battery life, which also affects their published RVs. “It is important to be well-versed on industry updates for fluctuations,” said Mackinnon.

3

Daunting as it may seem, managing your fleet and therefore its remarketing process in-house is perfectly feasible, even at times when many certainties in the industry are being questioned. “Even with a small team, it’s perfectly doable,” assured Mr Van den Driesch.

4

Fleet management companies offer services that can assist companies in making these choices. Picking the right powertrain, ensuring you obtain a balance between depreciation and maintenance, setting the right remarketing strategy – there’s no need to go it alone.

Perform portfolio reviews. A portfolio review includes everything a company spends to keep its fleet on the road. When you reach a point where the cost is too high or if you predict maintenance spikes in the following months, it’s time to sell the vehicle.

Rory Mackinnon, ARI Fleet UK: “Fleet management companies can help you make the right choices.”

networks. In markets like Belgium, it’s the only way as the law requires used cars to be sold with a one-year warranty. “We work with a limited number of wholesalers who each specialise in particular kinds of vehicles,” concurred Mr Van den Driesch.

An additional advantage to working with wholesalers: they don’t fuss about scratches.

Keep an eye on legislation and fuel costs. Both are likely to fluctuate in the future, and that may have an effect on the TCO and residual values.

5

Prepare cycling out vehicles.

Most likely, you’ll want to replace your outgoing vehicle by a new one.

And most likely, the new one will need to be factory ordered, requiring a lead time of at least three to four months.

6

Pick the right remarketing channel. Selling vehicles to end users can yield better prices but the time taken to do that, plus repair and refurbishment costs, advertising fees and the budget you need to set aside for warranty claims may very well outweigh the benefits of going this route. The easiest and quickest way to sell vehicles is through auction

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“There are no right answers but there are definitely wrong ones,” said Mr Mackinnon. “There isn’t one solution that will solve all of your problems.

It’s about evolving through changes in technology, legislation and picking solutions to give you the flexibility to make changes as you go through a vehicle’s lifecycle.”

FLEET EUROPE #109

When and how do you sell your vehicles? Here are some tips to consider.

Learn best practices.

Then invent a better one.

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Formulas are for chemistry. In business there’s no such a thing. It’s about doing something not because everyone’s doing it, but because no one’s doing it. This is what business means for SEAT and SEAT means for business.

• Wide range of innovative models • Advanced technologies like TGI hybrid engines • Competitive leasing schemes & financing options

Our global range of cars and product specifications varies from country to country. Please, visit your local SEAT website to know more about the product offer available for you. Official mass emission for the SEAT Leon Range. CO2 Combined (g/km): 108 - 155. Standard EUTest figures for comparative purposes and may not reflect real driving results.

seat.com/fleet

REMARKETING

“ACCEPTANCE OF ECMR IS KEY” @Frank_J_Jacobs

Cross-border logistics is the next frontier for progress in pan-European remarketing. Where governments fail – by not universally adopting eCMR – the industry is succeeding. So say two pioneers in the field, Vinturas and ADESA Europe.

“Technology helped create online marketplaces, increasing digital transactions – also in vehicle remarketing.

About five years ago, the industry was able to ensure compliance of cross-border transactions, which have increased steadily since. The next challenge is cross-border logistics – in particular, documentation,” says Johan Meyssen, CEO of ADESA Europe – the new name for CarsOnTheWeb, which was acquired by US-based KAR Auction Services earlier this year.

“The volume of cross-border used-vehicle sales is growing,” agrees Jon Kuiper, CEO of Vinturas, a brand-new, blockchain-based supply chain platform for the European finished-vehicle logistics industry. “It will continue to grow, as more and more transparency is created – and because market leaders like CarNext.com and ALD are focused on growing their margins and volume by selling throughout Europe rather than in each local market separately.”

Why is cross-border logistics still a challenge?

FLEET EUROPE #109

Jon Kuiper: “Because most organisations still have local or national systems that do not talk to each other. Connecting those dots would be extremely costly or would require the setup of a totally new system from scratch.”

Johan Meyssen: “Plus, it’s a mostly paper-driven process, which creates the potential for fraud. That’s where eCMR – a digitalised freight document – could help, by providing transparency.”

Electronic consignment via eCMR was developed to replace the paper-driven CMR process.

Why aren’t we there yet?

J.K.: “As paperless, but legal proof that delivery has taken place in another country, eCMR would be a great improvement. The technology is there, and it can be used. But not all EU countries have yet ratified the protocol. Especially the fact that Germany, a crucial and central country in terms of vehicle logistics, hasn’t signed up, is a great hindrance.”

J.M.: “As a result, if only one party within the whole logistical chain – shipper, carrier, receiving company, local authorities, suppliers, etc. – or just one country on the vehicle’s journey requests a paper document, the entire eCMR system no longer works.

Maintaining a paper-based CMR system is costly and time-consuming.

We could create a more trustworthy, transparent and efficient logistics trail for our cross-border transactions by requiring 100% participation in eCMR.”

With governments moving so slowly, what’s the industry itself doing to improve matters?

J.M.: “Auto remarketers can support the cross-border logistics needs of fleet owners and dealers by providing a streamlined, transparent logistics process that works seamlessly across Europe, plus a digital suite of support services that includes track and trace, geotracking, online payment, vehicle damage inspection, and of course eCMR.”

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Jon Kuiper, CEO of Vinturas

Johan Meyssen, CEO of ADESA Europe

J.K.: “The logistics industry can connect the dots, providing Europeanlevel answers to the logistics questions that the remarketing parties are looking for. Such as: Where are my vehicles? What is their status (damage reports, transport status)? How are service providers performing? And how can I optimise my lead times?”

What are your own company’s ambitions in this respect?

J.M.: “Backed by KAR’s automotive technology, data and ancillary service capabilities and their strong industry relationships, ADESA Europe aims to lead and accelerate the evolution of the European marketplace. One of the first opportunities to integrate these capabilities will be CarsArrive Network, KAR’s business unit providing logistics services to buyers and sellers.”

J.K.: “The Vinturas platform will be connected to all service providers that service OEMs and the remarketing industry. All logistical and technical data (on damages, upgrades, etc.) will be kept on the platform, providing end-to-end visibility for all our customers. Next to that, we also aim to set transactional standards – for capturing damage on vehicles, for providing eCMRs to the industry. Our

aim is to provide full digital transactional processes, which will reduce lead times for our remarketing partners and eliminate the fraud risk when crossing borders – thus significantly reducing supply-chain costs.”

by all logistics service providers in Europe. This will not just reduce costs for all stakeholders, but also reduce VAT fraud, as all stakeholders – including tax authorities – will have digital access to all process details.”

What’s the biggest remaining obstacle to better cross-border logistics?

J.M.: “Cumbersome paper-driven transport processes remain a challenge to the industry and can create trust issues with customers. We address this challenge by maintaining strict compliance with regulatory requirements. We also continue to invest in innovative technology to advance the industry and create a more seamless experience for customers. Broader acceptance of eCMR would certainly help to provide a more accountable, more transparent transport process.

That’s why ADESA Europe advocates for 100% adoption of and participation in eCMR.”

J.K.: “The lack of visibility, of stocks, and of logistics and technical information. This makes it hard to manage the remarketing process based on realtime information. And that creates a lot of cost and wasted opportunity. Not an obstruction as such, but one of the industry’s biggest problems is fraud – mileage fraud and VAT fraud. A report by the European Parliament indicates the annual economic damage from mileage fraud is between ¤5 and ¤10 billion. VAT fraud is a multiple of that.

Vinturas aims to provide a standardised e-CMR process that will be used

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FLEET EUROPE #109

Cross-border vehicle logistics today is still a mostly paper-driven process, which creates the potential for fraud.

REMARKETING

DEFLEETING, BUT NOT AS WE KNOW IT @Frank_J_Jacobs

The vehicle inspection business is about to change profoundly.

Clipboards and humans are out, computer vision and machine learning are in. Defleeting will never be the same again.

At several stages of their life – when they exit the production line or at the end of a lease contract, for instance – cars need to be examined for faults, damage and wear. Up until now, evaluating bumps and scratches (or worse) is a job mainly for humans. However, manual vehicle inspections are slow, expensive and subjective.

Fixable issue In a business where minute differences in large volumes can add up to significant cost differentials, that’s an issue.

A fixable issue, thanks to technological progress: Automatic Damage Recognition (ADR) systems, powered by artificial intelligence and equipped with state-of-the-art cameras, are about to change the rules of the game.

That’s because, after years of test phases and pilot programmes, ADR technology is now mature enough to go mainstream. How do we know that?

Because OEMs and other major players are finally paying attention.

FLEET EUROPE #109

Take for instance the investment, announced late July, by Volvo’s venture capital arm in UVeye, the Israeli start-up developing ADRs. Teaming up with Toyota Tshusho and others, Volvo Cars Tech Fund, in its first action outside Europe and the US, led an investment round of $31 million.

Israeli specialty UVeye is a spin-off from a typically Israeli specialty: inspecting vehicles for explosives, weapons and other threats. But ADR technology can be hugely beneficial as well for ‘regular’

automotive customers such as logistics operators, lease and rental companies and OEMs – UVeye had previously already struck deals with Skoda and Daimler.

For their part, Volvo will use UVeye technology for its factories, dealerships and aftermarket business worldwide; Toyota for its used-vehicle centres and in its operations in Japan.

But while UVeye is the brand name that comes up most often when the topic is ADR, there are other players as well, each with their unique sales proposition. Two important Europe-based players are ProovStation and Twinner.

Automatic Damage Recognition systems will have a major impact on the fleet sector as a whole.

Logical next step Based in France, ProovStation was born out of the alliance of Groupe Bernard, the third-largest car dealership in France, with WeProov, an app for smartphone-based vehicle inspections, ideal for small batches of returning cars - back in 2016 WeProov won the first Start-up of the Year Award of this magazine. The logical next step in their business – inspecting larger volumes – required a great leap forward in terms of hardware and technology. ProovStation, an independent company, is a fixed-station, high-tech inspection system that can process large volumes of vehicles with great accuracy and speed.

Using military-grade hardware, more than 20 different types of cameras and three different image capturing techniques, ProovStation can do a 360° scan – including the undercarriage – in

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just three seconds and produce a full report, secured via blockchain technology, in as little as 15 seconds.

The system’s patented, award-winning technology can document scratches no wider than a hair’s breadth and dents (and other defects) not visible to the human eye. ProovStation will also be able to predict the cost of damage repair and customise its ADR management platform to the needs of every client, by offering various SaaS options.

Digital Twinn After extensive testing in factories, dealerships and at ProovStation’s own R&D centre, the system is being launched commercially this September – focusing first on Europe, but with significant interest from the US already as well.

HOW WILL ADRS CHANGE REMARKETING?

German start-up Twinner brings its own angle to ADR: its systems establish a ‘Digital Twinn’ of any vehicle – a digitisation of a vehicle’s entire life-cycle, from its production to its various repairs and inspections. This includes not just high-quality imagery (360°, plus the interior), but also information on all car characteristics, equipment and ownership changes.

The goal: ‘information symmetry’ between the actual car and the car as advertised, saving car dealers and fleet managers huge amounts of time spent either convincing others of a vehicle’s state or verifying it for themselves. Twinner’s system is already in use at a number of used-car dealerships in Germany and China.

They will refocus the attention on the defleeting process as a crucial link in any fleet’s TCO chain. Beyond that, they will energise the remarketing industry. Combined, those two factors ensure that ADR systems will have a major impact on the fleet sector as a whole as well.

Indeed, because of their advanced capabilities and added features, ADR systems are about much more than just damage-recognition; for all those involved in defleeting, from fleet managers to used-vehicle dealers, they become a key decision-making tool as well.

Industry standard At this early stage in the incipient ADR boom, each of the systems vying for market share can still proudly proclaim the ambition to become the industry standard. What is already certain, however, is that the common elements they bring to the inspection process – speed, accuracy, detail, all at a greatly reduced cost – will do more than just optimise vehicle inspections.

ADRs will industrialise the inspection process and automate the analysis of used cars.

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• ADRs will industrialise the inspection process and automate the analysis of used cars.

• In so doing, ADRs will produce standardised evaluations at a fraction of the cost and time of manual inspections, with virtually zero disputable or erroneous results.

• By making vehicle inspections more transparent and cost-efficient, they will become a more visible, reliable and ‘quantifiable’ part of the remarketing process.

• This will certainly have an impact on car policies, which will become more detailed and precise when it comes to damages and wear and tear.

• It will also provide greater security for used-vehicle customers and will thus ultimately provide a boost for the remarketing industry – notably for online used-vehicle sales.

FLEET EUROPE #109

Automatic Damage Recognition systems like ProovStation make vehicle inspections faster and more precise.

While a company like Baehr & Fess takes a microscopic view on the impact of options and extras on RVs, most fleets can suffice with following basic rules:

REMARKETING

INNOVATION AND OPTIMISATION IN VEHICLE REMARKETING Benjamin Uyttebroeck

@uytteb

Vehicle remarketing cannot escape the effects of increasing digitisation, new powertrain options and changing consumer demand. All the more reason to attend the Fleet Europe Remarketing Forum.

For the sixth year in a row, the Fleet Europe Remarketing Forum provides professionals with useful information and valuable expertise about the trends that are shaping the vehicle remarketing business.

It’s also the place to network with European remarketing experts, to discuss new ideas and concepts, to challenge peers and to be challenged.

Confirmed speakers include Marcel De Rycker (IWS), Massimo Fedeli (Air Alliance), Christof Engelskirchen (Autovista Group), Roland Gagel and Mathias Popp (SGS), Wolfgang Reinhold (CARA) and Johan Verbois (5S Consulting).

The Remarketing Village is the ideal setting for networking and catching up with peers. As always, the Fleet Europe Remarketing Forum is organised alongside the Fleet Europe Summit, the Fleet Europe Awards and a host of other events tailored for the European fleet industry.

WHY YOU SHOULD ATTEND? The undeniable powertrain truth Petrol and hybrid have seen their market share go up, but diesel isn’t going away yet. At the same time, EVs have never made more sense. Find out how you can figure out the complex emissions and powertrain puzzle.

The electrification curve Many new EV models are entering the market, and even more will join them in 2020, including smaller options. But how can you predict and manage their residual value and how can you limit the risks?

Maximising efficiency through a changing business model Leasing companies and OEMs are rethinking how they can use B2C sales channels to boost margins and safeguard their RVs. The digital landscape plays an important part in this new trend.

Bertrand de Techtermann, BCA, winner of the 2018 Fleet Europe Remarketing Award

Embracing new technologies Leather seats, satnav and an automatic gearbox are more or less expected today. With new safety, comfort and connectivity technology becoming available, what should remarketers look out for to boost RVs?

Outside the European borders Changing geopolitics have a significant role on remarketing routes. In Europe, Brexit will impact trade between Ireland and the UK. Outside the EU borders, interesting things are happening in Turkey, the USA and China.

Outlook CARA 2020 CARA, the European Car Remarketing Association sheds its light on the fight against mileage fraud and the remarketing outlook in 2020 and beyond.

FLEET EUROPE #109

Remarketing Village On top of the conference, the attendees have the opportunity to network in the Remarketing Village, a sister event to the Fleet Europe Village.

The baseline for the sixth edition of the Fleet Europe Remarketing Forum in Estoril on 6 November is: «Stay ahead of the Remarketing game, value the powertrain shift and increase your sales channel performance.»

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WIN THE 2019 FLEET EUROPE REMARKETING AWARD The Fleet Europe Remarketing Award goes to a player in the vehicle remarketing industry who has developed an innovative product, service or project in the field of international vehicle remarketing. The award, sponsored by IWS, can go to any type of actor in the remarketing sector, including startups and smaller traders, but their business needs to have an international scope.

JURY The expert jury looks for innovations that contribute to the efficiency and transparency of the

remarketing process or that contributes to the margin obtained on the vehicles. All nominees will pitch their product or service to their peers at the Fleet Europe Remarketing Forum. The Remarketing Award will be presented during the official Fleet Europe Remarketing dinner on 6 November in Estoril (Portugal).

PREVIOUS WINNERS You can step into the footsteps of the 2018 Fleet Europe Remarketing Award winner, BCA, who won the accolade with BCA 1Europe Transport, a dedicated software solution

to transport cars across Europe, offering both flexibility and reliability and guaranteeing solutions for both single vehicles and mass transports.

The first Remarketing Award, presented in 2017, went to RMS Automotive for its RMS Automotive Inventory Management Solutions which transforms the disjointed remarketing process for remarketers worldwide via its modular inventory management software that reduces risk and maximises return on investment.

Jack informs You save money!

Handle windshield maintenance on-time and save up to 50% on your glass costs. Go to smart-jack.com 31

FLEET EUROPE #109

Jack detects, diagnoses and notifies in real time all glass damages of your fleet.

FINANCIAL MODELS

WHY USED-CAR LEASING DESERVES CONSIDERATION @Frank_J_Jacobs

Used-car leasing is a minority slice of the fastgrowing private lease market. And corporate used-car leasing?

Negligible – for now.

But never say never…

It’s like that old joke: Don’t think of an elephant. You can’t help thinking of… an elephant. And if you’ve never before considered offering used-car leases via your corporate fleet, the idea is now planted in your head, perhaps one day to flower.

Paradigm shift But why would it? Because, as you’ve no doubt noticed, the leasing industry is in the middle of a paradigm shift. All of a sudden, it seems, lease companies have discovered private consumers, and are eagerly trying out new formulas to mine this new market.

The main formula is private lease, whereby lessors deal directly with end users. In recent years, lease companies have seen the popularity of their private lease formulas skyrocket, especially in mature fleet countries like the Netherlands and the UK, but also France, Belgium and elsewhere in Western Europe.

FLEET EUROPE #109

Paradoxical option As the product itself matures, it finds other channels. Paradoxically, corporate private lease is also an option. It gives companies the opportunity to offer structured mobility via a limited number of providers. It has all the advantages of traditional corporate lease, but with less admin. As such, private lease is an ideal part of a flexible, comprehensive solution for corporate mobility.

Ideal, but very small: recent estimates of the formula’s take-up in companies where it’s available vary between 1 to 5%, albeit with a tendency towards

Corporate used-car leasing? It’s tiny, but it’s already happening. growth. As this option becomes more popular, alternatives will be tested, and corporate used-car leasing will certainly be among them.

Faint signals In fact, there are faint signals that this is already happening. “The UK market is the most mature in this respect, where young second-hand vehicles are released to private individuals as well as small companies who have limited budgets, yet want to drive a good quality car,” observes Bart Beckers, CCO at Arval. “Full services are available for these vehicles, including funding, insurance, maintenance, tyres and roadside assistance.”

A LeasePlan spokesperson confirms that it, too, is offering used-car leasing to corporates – “a small but growing part of our business”. Used-car leasing is attractive for corporates “who would like to provide their drivers with a cost-effective, flexible lease – for example for drivers who need a lease car for a shorter duration. It’s also a great fit for company car drivers who wish to upgrade at a lower cost.”

“There is some movement on used-car leasing for the SME segment,” confirms Ivor Johnson, Global Fleet Lead for Pfizer. “But where I can see this being attractive for SMEs, we do not lease or buy used vehicles for our own fleet.

That said, we haven’t consciously

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thought about this. We could look at this in the future. One challenge would be to establish a fair market value.

When buying a new car, you have a clear starting point. Buying used cars is a very different skill set. This could be a deterrent to larger corporates, unless fleet management companies can clearly demonstrate value for money.”

Will your fleet be offering corporate used-car leases? As with everything, the formula comes with pluses and minuses (see box). But at least now you’ll be considering it…

PROS AND CONS OF USED-CAR LEASING Your budget stretches further, so you can afford a bigger and/or higher-end vehicle.

Selling an already used vehicle at a good price is tricky; by leasing it, that’s not your problem.

Older cars require more maintenance and repair.

Even though this should be covered by the contract, it can be an operational burden.

Unlike new cars, used cars don’t have a unified selling price, making it harder to figure out total cost and added value.

Join us at Geotab Mobility Connect 2019 Estoril, Portugal Hotel Cascais Miragem

6th of November

Free for Fleet Europe Summit Attendees

3 reasons to attend Discover — Learn how data is powering the transition to electric vehicles, enabling new mobility services, and improving our society.

Connect, share knowledge and hear from some of the industry’s greatest minds, from fleet to mobility, and sustainability professionals.

Register Now to attend GEOTAB MOBILITY CONNECT 2019 www.geotab.com/CONNECT-EU

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FLEET EUROPE #107

Join the conversation — Engage with the significant challenges and opportunities that face the fleet industry today and tomorrow.

CONNECTED

REDUCING WINDSHIELD MAINTENANCE COSTS IN LESS THAN 30 SECONDS Steven Schoefs

Nicolas Chorine and Thibaut Cardinael are business developers for windshield damage detection solution Jack. Jack has been developed with the expertise of AGC, a leading glass supplier worldwide.

Nicolas Chorine: “Jack is an open and end-to-end telematics solution that detects, diagnoses and notifies vehicle glass damages in real time and for all types of vehicles. It provides maintenance recommendations. A software suite, including API and SDK, allows to integrate the Jack solution into customers’ and partners’ own operational environments.”

Why is smart glass damage detection important?

Nicolas Chorine, Jack: “60% of windshield replacements can be prevented if maintenance is carried out in time.”

N.C.: “Windshield damage is frequent and replacement is more and more costly. This is partly because of ADAS systems integrated behind the glass, such as cameras and radars. And glass repair experts estimate that 60% of windshield replacements could be prevented if maintenance was carried out in time. Jack allows to unlock that potential.”

FLEET EUROPE #109

How does your detection and notifying technology work?

Thibaut Cardinael, Jack: “The system distinguishes between impacts which cause damage and those which don’t.”

N.C.: “There is impact event detection by the telematics – for example a stone hitting the windshield which generates vibration. This event is communicated via Bluetooth to a connectivity system located in the car which then communicates it to the cloud. This connectivity system could be the driver’s smartphone, a telematics unit or the in-built OEM connectivity. The impact is then processed by our machine learning algorithms to characterise its severity and location on the windshield, which are then used to provide maintenance recommendations.”

Thibaut Cardinael: “There are two levels of event filtering, so that false

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alarms such as a slammed door are ignored. Then the system distinguishes between impacts which cause damage and those which don’t.”

Who are your customers?

N.C.: “Jack is currently an aftermarket solution addressed to insurers, leasers, car rental companies, commercial fleets and public transportation, and is suitable for all types of vehicles: passenger cars, buses, trucks, etc. Then we are also looking at glass fitting networks, to provide a full glass maintenance service enabled by Jack, and at telematics solutions/service providers, to bundle Jack with complementary services.”

What is the advantage in terms of efficiency and ROI? N.C.: “Customers can expect to have a positive ROI in less than a year by mitigating their glass maintenance costs up to 50%.”

Where do you operate your services?

T.C.: “Europe is our first priority, with several projects ongoing. We can’t reveal country names nor launching dates at this stage, but Jack will be pan-European in the months to come.

The USA is the second priority, with new projects coming in the second half of 2019.”

Read the complete interview here.

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Jeep Renegade and Compass: plug-in hybrid in 2020

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Alfa Romeo Stelvio

Moreover, thanks to electrification, the Jeep range further improves its legendary off-road capability, courtesy of the greater torque offered by the electric motor and the ability to adjust it with extreme precision during take-off and while driving on the most challenging terrain. As to the safety aspect, both the Renegade and Compass received 5 stars when they were tested by Euro NCAP.

Jeep Renegade The Euro 6d-temp compliant 2.2 diesel engine, available with three power outputs (160, 190 and 210hp) comes with the acclaimed ZF-sourced 8-speed automatic as standard. You can choose between rear-wheel drive and all-wheel drive. The same goes for the 2-litre petrol unit, which comes in a 200 and a 280hp model. The comprehensive safety suite of the Stelvio resulted in a 5-star Euro NCAP rating, with an amazing 97% rating for Adult Occupants.

Alfa Romeo Stelvio: the most dynamic of them all The acclaimed Stelvio is an Alfa Romeo first and a cross-over second: driving dynamics, agility and efficiency have never reached such heights in this segment, and neither have sporty elegance and interior design. The low centre of gravity and advanced suspension make sure the Stelvio contains body roll better than any of its competitors, much to the benefit of both driver and passengers, who bathe in pure Italian style.

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More info Would you like to know more about FCA’s fleet solutions and products? Are you in search of a solid partner to help you reach your KPIs while ensuring employee satisfaction? Please contact us at https://www.fcafleet-business.com

FLEET EUROPE #109

Fiat 500X

The Jeep brand is making another major evolutionary step towards respecting the environment and reducing the total cost of ownership by presenting its new plug-in hybrid electric vehicle (PHEV) models. Both the B-SUV Renegade and the C-SUV Compass will be available as eco and tax friendly version. The CO2 emissions are expected to be below 50g/km, whereas the range is estimated at 50km.

CONNECTED

BRIDGESTONE, TYRES GOING DIGITAL Alison Pittaway and Steven Schoefs

In April 2019, Bridgestone announced its acquisition of TomTom Telematics, which will become Webfleet Solutions as of 1 October 2019. What does it mean for the future of the company and its customers? We talked to Laurent Dartoux, chief strategy & marketing officer, Bridgestone EMEA (BSEMEA), to find out.

Rapidly changing transport and mobility landscape Laurent Dartoux has recently been given responsibility for manufacturing operations, logistics and supply chain management and procurement.

This, and the TomTom Telematics acquisition, are a strategic, planned decision to directly address opportunities of the modifying mobility landscape in which digital capabilities are key. “We’re seeing the environment changing around us and it’s creating opportunities that extend beyond tyres. We must now be a premium tyre producer and mobility solution leader.”

Is there still profit in tyres?

Dartoux thinks so: “Actually, when you look at the markets in general, more miles will be driven over the next several years. The tyre will play a more important role in an autonomous, electrified, shared and connected future.”

Digital Garage Rome Bridgestone created its ‘digital garage’ in 2017. So far, it has developed predictive capabilities in terms of wear-andtear on tyres, damage detection and maintenance.

It has launched several products, such as Mobox Bridgestone, a subscriptionbased platform offering an all-in-one approach to buying tyres and car maintenance. It is live and available across several European countries.

FLEET EUROPE #109

What do you hope to achieve through acquiring a technology company?

Laurent Dartoux, Bridgestone: “The tyre will play a more important role in an autonomous, electrified, shared and connected future.”

“We have identified that fleets in particular will be central to mobility in the future. We will see more B2B organisations managing fleets for the sake of optimising the mobility of people,” Dartoux explains.

“These are the sort of software and data analytics capabilities TomTom Telematics (Webfleet Solutions as of

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1 October, editorial) has in its portfolio.

The acquisition brings the company firmly into the Bridgestone family.”

The importance of fleet efficiency Bridgestone doesn’t see itself morphing, Uber-like, into a fleet and car-sharing operator or leasing company but rather in providing databased software solutions for companies that need new and more extensive expertise to run future fleets at a fully optimised total cost of ownership. It has plans to build a tyre module into TomTom Telematics’ platform.

Addressing its ecological footprint End-of-life tyres are recycled and recovered at higher rates than aluminium cans, glass, cardboard and paper, Dartoux informs us: “Of the end-of-life tyres, more than half of the material (53%) gets recycled and 34% can be recovered in the form of energy.”

The core of Bridgestone’s business will always be tyres but they are the nucleus around which value-added solutions and services are offered and the telematics acquisition will allow Bridgestone to offer additional data- based mobility services to OEMs and fleet customers to financially optimise their operations.

LEADERSHIP CHANGES Paulo Ferrari, CEO and President, Bridgestone EMEA and Chairman of the Board for Bridgestone Americas, is taking on the additional responsibility of G-Chief Digital Strategic Officer. Quality, Environment Health & Safety, plus Regulatory and Public Affairs has gone to Emilio Tiberio, CFO Astrid Rahn also assumes responsibility for IT, and CSO Riccardo Cichi will integrate consumer and commercial product planning into the sales function.

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SAFETY

ON THE ROAD TO SAFER TYRES Stijn Blanckaert

Airless tyres from Michelin and Hankook

©Hankook & Michelin Press Sites

©Hankook & Michelin Press Sites

With its UPTIS (Unique Puncture-proof Tyre System) tyre prototype, that could revolutionise the tyre sector once it will be marketed, Michelin grabbed a lot of media attention recently.

Airless tyres will revolutionise the tyre industry.

the tyre’s condition and offer a situation-matched adaptation of the performance characteristics of the tyre.

ContiSense uses electronic conductive rubber compounds to enable electric signals to be sent from a sensor in the tyre to a receiver in the car.

Continuously monitoring tread depth and temperaThese smart tyres can monitor their condition and ture, the sensors indicate adapt accordingly. if the measured value is above or below the limit and triggers the system to alert the electric motors and the additional driver. If anything penetrates the vehicle weight from heavy battery tread, a circuit in the tyre is closed, packs. That is why they developed the immediately warning the driver before EfficientGrip Performance prototype the tyre pressure starts to drop. with “Electric Drive Technology”. The tyre offers extended mileage thanks to ContiAdapt combines micro-compresa tread compound that has been tuned sors integrated into the wheel to adjust for ultra-low rolling resistance and a the tyre pressure with a variable-width specific tread design featuring small rim. The system can thus modify the size channels allowing for a larger rubber of the contact patch, which is a decisive contact patch on the road surface factor for both safety and comfort. than traditional radial grooves. It also prevents sound waves from enterGoodyear EfficientGrip ing its grooves, reducing tyre noise.

Another improvement is the optimised Performance Goodyear says that traditional tyres tyre cavity shape to better support the can wear out up to 30% faster on elecadditional weight from the batteries. tric cars due to the instant torque from

The self-healing wheel

©Goodyear Press Site

However, already in 2015 did South Korean tyre producer Hankook show its airless iFlex tyre prototype, built entirely with eco-friendly materials.

Tyres that never go flat improve safety, that’s for sure. The commercial launch is not for tomorrow, alas. In the mean time, we will have to continue inflating our tyres with air.

FLEET EUROPE #109

© Source Continental Press Site

Today’s tyres are highly technological and much more than just some rubber on a rim.

Year after year, innovations enhance their performance and make them safer.

ContiAdapt and ContiSense by Continental Last year, Continental presented two new tyre concepts called ContiSense and ContiAdapt. These prototype tyres are designed to continuously monitor

EVs require specific tyres as they wear out traditional tyres 30% faster.

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As we speak, no prototypes of this tyre have been made, but scientists at Harvard John A. Paulson School of Engineering and Applied Sciences have recently developed a new material that is as tough as the rubber used for car tyres, but is capable of self-healing. This new type of synthetic rubber would automatically close cuts and perforations in the tyre, avoiding further damage. However, this technology is still a long way off.

Master Your Journey, All Winter Long

NEW

Outstanding Snow & Ice Performance*

Best in Class Wet Grip & Braking*

AVAILABLE WITH INTEGRATED DRIVEGUARD RUN FLAT TECHNOLOGY (RFT) ON SELECTED SIZES

* Tests carried out by TÜV SÜD on the request of Bridgestone in October-November 2018 at the facilities ATP Papenburg (Germany) for dry & wet tests, at TÜV SÜD Product Service (Germany) for noise, comfort and laboratory tests and at ARCTIC FALLS (Sweden) for snow & ice tests, with VW Golf VII, on tyre size 195/65 R15. Blizzak LM005 compared to the performances of main competitors in the same segment: Continental WinterContact TS860, Michelin Alpin 6, Goodyear UltraGrip 9, Pirelli Cinturato Winter. Annex Report No. [713139853-03] Snow braking distance (40 km/h to 5 km/h) in meters: Bridgestone LM005 (16.6), Continental WinterContact TS860 (16.1), Goodyear UltraGrip 9 (17.0), Pirelli Cinturato Winter (17.0), Michelin Alpin 6 (17.2) Snow acceleration/traction (10 km/h to 35 km/h) in seconds: Bridgestone LM005 (3.53), Continental WinterContact TS860 (3.49), Michelin Alpin 6 (3.56), Pirelli Cinturato Winter (3.59), Goodyear UltraGrip 9 (3.63) Ice braking distance (20 km/h to 5 km/h) in meters: Bridgestone LM005 (10.6), Michelin Alpin 6 (10.3), Pirelli Cinturato Winter (10.7), Continental WinterContact TS860 (10.8), Goodyear UltraGrip 9 (11.0) Wet braking distance (80 km/h to 20 km/h) in meters: Bridgestone LM005 (27.2), Continental WinterContact TS860 (29.5), Goodyear UltraGrip 9 (30.0), Pirelli Cinturato Winter (30.3), Michelin Alpin 6 (30.7) Lateral wet grip stability (cornering) in meter/second2: Bridgestone LM005 (6.53), Continental WinterContact TS860 (6.34), Goodyear UltraGrip 9 (6.30), Pirelli Cinturato Winter (6.23), Michelin Alpin 6 (6.18)

Bridgestone Europe For your nearest Bridgestone Authorised Dealer, visit our website www.bridgestone.eu

SAFETY

MOBILE TYRE FITTING SET FOR FASTER GROWTH Jonathan Manning

The 24/7 demands of the modern economy mean company car and van drivers increasingly expect tyre fitters to come to them, rather than having to visit a fitting centre.

Car and light commercial vehicle fleets are following in the tread marks of heavy goods vehicles and using mobile services for tyre inspections and the fitting of replacement tyres. These services enhance fleet safety, offer greater convenience to drivers, and help fleet departments save money and enforce compliance with corporate tyre purchasing policies.

Company car and van drivers are notoriously poor at checking the condition and inflation of their tyres. Euromaster estimates that one quarter of fleet vehicles have a problem with their footwear. The international tyre fitting giant says that a tyre which is underinflated by 20% can increase the fuel consumption of a vehicle by 3%, while increasing the risk of accidents.

Across Europe, Euromaster has 1,850 mobile units within its network and is observing a growing demand for this kind of service, especially in France and the UK, said a spokesman for the company. “Obviously, our mobile units are a real time saver for our customers as we are able to go to where they are.

The quality of our offer, the expertise

More than one-third of Kwik Fit’s Mobile7 tyre fitting is done in the evenings and at weekends. and the commitment of our teams are exactly the same as in centres. We do consider it as a real differentiating factor,” he said.

FLEET EUROPE #109

Preventative tyre protection plans

In France, Euromaster is using its 800 mobile tyre fitting vans to help fleets with preventative tyre maintenance programmes.

In France, Euromaster is focusing on preventative programmes, using its fleet of 800 mobile tyre fitting vans and 2,700 technicians to visit company car parks and check the fleet vehicles parked there. By calling at regular intervals, these trained tyre inspectors can help fleet managers minimise their

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maintenance costs, plan and budget for tyre replacements, and maximise vehicle uptime by replacing worn or damaged tyres before they puncture on the road.

60% of HiQ’s tyre fitting in the UK is now done by mobile fitting vans and only 40% in its depots.

While mobile fitting may seem like a luxury, the service looks set for rapid growth with the development of car share clubs and eventually autonomous vehicles, where no individual driver has responsibility for the vehicle. If a vehicle suffers a puncture there will be no designated driver to change the wheel or take it to a tyre garage.

It’s an issue foreseen by Michelin, which has developed the UPTIS (Unique Puncture-proof Tire System), an airless tyre that requires no air pressure checks or maintenance inspections, and which cannot puncture. The tyre could be on sale by 2024.

This preventative inspection service is available to fleets of all sizes, and all makes and models of vehicle, said Jean-Michel Fauron, commercial director light vehicles and key accounts of Euromaster France.

“Our transport customers say they have reduced their repairs by 30% thanks to the preventative visits,” he said.

50% cut in tyre repairs

and control of tread wear,” said Eric Le Liard, operations and sales director of used vehicles at Véhiposte.

Across the Channel, HiQ Tyres & Autocare, owned by Goodyear Dunlop, has seen a 30% rise over the last three years in the number of mobile vans required to service car and van fleet demand for mobile tyre fitting, said Craig Sprigmore, retail director at Goodyear.

The service operates in tandem with Goodyear’s TruckForce network for servicing HGVs at the roadside.

“The increase in mobile fitting has been influenced by customer requirement due to increasingly busy calendars, a convenience culture which is driven by societal change, and technology which enables us to work more digitally,” he said.

60% of tyres fitted by mobile vans The developments mean that 60% of HiQ’s tyre fitting is now done by mobile fitting vans and only 40% in its depots, said Sprigmore, with the mobile units delivering three levels of service to boost convenience and minimise vehicle downtime: high priority roadside assistance that requires an immediate response; low priority, when a customer requests a call-out with no urgency; and, thirdly, a pre-booked appointment at a convenient time for the driver.

On the far side of the Atlantic, Goodyear has recently launched a new tyre fitting concept called Roll by Goodyear, which develops the convenience factor even further. Still in its pilot phase, Washington DC customers can order their tyres online or at a Roll showroom, and then choose from different fitting options, such as leaving their car keys at a showroom, having their car collected and delivered by a valet service, or booking a mobile fitting van. The entire installation process is backed by realtime email or text status updates on when vehicles will be ready.

Véhiposte, which manages Groupe La Poste’s 60,000-strong lease fleet, had 3,300 vehicles inspected by Euromaster in just four months.

“This gives an insight into how this process is changing and developing into the future,” said Sprigmore.

Since the introduction of the tyre inspection service: “we have reduced our tyre repair rate by more than 50% thanks to having the correct air pressure

The need for tyre fitting services to match the 24/7 expectations of the 21st century economy is illustrated

by Kwik Fit’s Mobile7 operation.

Evening and weekend service

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Roll by Goodyear shows how buying new tyres is fitting in with driver lifestyle choices.

Britain’s largest vehicle maintenance and repair company already ran a fleet of 200 mobile tyre fitting vans and has extended many of these vehicles’ hours to 8.30am to 8.30pm seven days per week with its Mobile7 service to meet demand from businesses that increasingly find themselves working seven days per week. Evenings and Sundays account for 35% of Mobile7 bookings, an indication of how little spare time company car and van drivers have during the working week.

Andy Fern, fleet sales director, Kwik Fit, said: “More and more of our business clients are meeting the demands of their customers by providing a sevenday a week service. In turn, Kwik Fit has reacted with ‘Mobile7’ as our customers then also require the same level of support.”

Euromaster France’s preventative tyre inspection service has enabled its transport customers to reduce repairs by 30%.

FLEET EUROPE #109

MOBILE FITTING FOR AVS

SAFETY

WHY YOU NEED TO RECONSIDER ALL-SEASONS Initially, all-season tyres seemed reserved to price-conscious private buyers of B segment cars.

In the meantime, the offer has expanded considerably, but have these mixed tyres also improved so that the bi-yearly summer-winter change is no longer a must for fleets?

©AutoMotor&Sport

@DieterQuartier

Recent tests do away with many misconceptions that stick to all-season tyres.

There is no arguing that extreme climate differences require two sets of tyres: soft and siped ones in winter, harder and less indented ones in summer. However, in the more temperate climates with just the occasional drop below 7° Centigrade – the temperature under which winter tyres make sense – the so-called all-season tyres, which offer characteristics of both summer and winter tyres, could make more sense.

The trade-off The biggest value-add for company car drivers and hence their employers is not having to go to the tyre centre

twice a year, saving time and costs.

Also, you don’t need an extra set of rims for winter tyres. In a 4-year/120,000km contract, that could easily save ¤1,000 for a C or D segment car on 16-inch wheels, considering a consumption of 8 tyres: 4 summer plus 4 winter tyres on separate rims and 8 wheel set changes cost more than 8 all-season tyres and the labour that comes with them.

The stakeholders on the supply side – tyre manufacturers, tyre centres, leasing companies - have their reservations. That is only logical: at the end

of the day, they want to sell tyres and related services. Most of them still underline that a double set of tyres offers the best performance and safety, because they are developed to cope with specific weather and road conditions. They also claim that due to the softer rubber, all-season tyres wear out quicker than summer tyres and they have a higher rolling resistance, causing the fuel consumption to increase, so all things considered they don’t save money.

New and improved all-seasons

FLEET EUROPE #109

Independent research seemed to support the tyre business’ claims, revealing poor overall ratings and a sometimes questionable safety performance. But things have changed. In the meantime, tyre manufacturers have launched new and improved all-season tyres. They have also expanded to more vehicle segments, including light commercial vehicles.

There is a wide variety of all-seasons. The Michelin Cross Climate is clearly more ‘summer’ than ‘winter’.

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But how good are they, both compared to regular summer tyres and genuine winter tyres? There are several independent tests performed by organisms like ADAC and Auto, Motor & Sport. The latter put 7 all-seasons through their paces as well as one set of summer tyres and one set of winter tyres as reference.

4 THINGS TO NOTE

THE MAIN FINDINGS: the Continental Premium Contact 5 requires 35.7 metres to come to a full stop on the dry, whereas the more-summer-than-winter all-season tyre Michelin Cross Climate Plus needs 39.4 metres.

The A brands’ average was about 42 metres.

• Dry handling: interestingly, it is

an all-season tyre, the Vredestein Quatrac 5 (121.6km/h) that grabs the gold here, closely followed by the summer tyre (120,7km/h) and the Michelin Cross Climate Plus (120.1km/h).

• Wet breaking: clearly, the win-

ter tyre tested, the Continental Winter Contact TS 860, masters this test, requiring less than 32 metres. Both the aforementioned Cross Climate and the Goodyear Vector 4 Seasons 2 need about 36 metres, which is about 1 metre less than the average and the summer tyre.

• Wet handling: this is where the Cross Climate Plus excels (74.4km/h), doing better than the winter tyre (72.8km/h), which surprisingly enough was outperformed – even only just – by the summer tyre (72.9km/h).

The other A-brand all-seasons’ average was about 72km/h.

• Snow breaking: the winter

tyre still wins (28.4m), but the Continental AllSeasonContact needs just 90cm more to stop.

The average braking distance is about 30 metres. Logically, the summer-biased Michelin Cross Climate Plus needs the longest distance (32.9m) amongst the all-seasons. To prove the necessity of appropriate rubber in winter: the summer tyre came to a halt after a staggering 52.9 metres.

• Snow handling: again, the Con-

tinental winter tyre performs best (55.km/h), followed by its all-season sibling (48.2km/h).

The average speed measured and the one registered for the Cross Climate was 47km/h. The summer tyre already lost lateral grip at just 8km/h.

1. If you decide to go for all-seasons, order them together with the car.

Otherwise it will come with summer tyres, which you would still need to change afterwards.

2. Don’t just go for any all-season tyre. You can check their safety, durability and sustainability performance on websites like Auto, Motor & Sport and ADAC.

3. Tread depth is essential for any tyre to perform optimally. Don’t try to get as much mileage out of a tyre as possible – the money you save doesn’t outweigh the increased safety risk.

4. Check local legislation to make sure all-seasons qualify as winter tyres.

WET HANDLING Michelin CrossClimate Plus Goodyear Vector 4 Seasons Gen 2 Nexen N Blue 4 season Continenetal AllSeasonContact Continenetal Premium Contact 5 Continenetal WinterContact TS 860 Nokian WeatherProof Vredestein Quatrac 5 Toyo Celsius 68

70

72

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Four of the eight tested all-season tyres outperform both the summer and the winter tyre in the wet handling chapter (speed in km/h at which lateral loss of grip occurs)

SNOW BREAKING Continental WinterContact TS 860 Continental AllSeasonContact Nokian WeatherProof Nexen N Blue 4 Season Goodyear Vector 4 Seasons gen 2 Toyo Celsius Vredestein Quatrac 5 Michelin CrossClimate Plus Continenetal Premium Contact 5 20

30

40

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The winter tyre performs best, but most all-season tyres are at its heels. The summer tyre makes clear that adjusted rubber really does matter on snow.

• Noise: interestingly, the summer

tyre was almost the noisiest in the test – that (questionable) honour is for the Cross Climate – whereas the winter tyre was the quietest.

• Rolling resistance: some more

surprises here: Continental’s winter tyre (8.2kg t) does better than the summer-oriented Michelin all-season (8.6kg t). The victory goes to the Continental All Season Contact (7.9kg t).

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Well worth considering It goes to show that all-season tyres are definitely worth considering in non-mountainous regions with temperate climates. Do check the performance of the brands and types you consider.

Whatever you decide, don’t allow your drivers to use summer tyres on snow.

It’s outright dangerous.

FLEET EUROPE #109

• Dry breaking: a summer tyre like

NEW ENERGIES

WHY SUSTAINABLE TYRE MANAGEMENT MAKES A DIFFERENCE Mark Sutcliffe

The manufacture and recycling of tyres is a resource and energy-intensive process which requires careful management to minimise its environmental impact.

There are mounting concerns over the contribution of tyres to the soaring volumes of microplastic polymer pollution in the natural environment.

FLEET EUROPE #109

The manager of a typical 100-vehicle essential user fleet can easily spend up to ¤50,000 a year on tyres. Still, this aspect of fleet operations is often overlooked from green procurement and Corporate Social Responsibility perspectives, even though the traditional tyre manufacturing process uses large quantities of carbon and petrochemicals.

Also, there are mounting concerns over the contribution of tyres to the soaring volumes of microplastic polymer pollution in the natural environment.

As sales of electric vehicles increase across the continent, environmentalists and policymakers’ focus is shifting from tailpipe emissions to particulate pollution from ‘wear and tear’ items such as tyres and brakes.

The EU has identified the tiny beads that tyres leave on Europe’s roads

as a major contributor to the wider problem of microplastic pollution – much of which ends up in our oceans.

The average tyre sheds around a kilo of rubber over its life time and across the entire continent, this adds up to almost half a million tonnes of microplastics.

The European Commission wants to dramatically reduce the volume of plastics entering the natural environment by creating a ‘circular economy’ in plastics which ensures that a much higher proportion of plastics are recycled – including the two billion car and light van tyres sold across the continent every year.

The good news is that tyre manufacturers themselves are making good progress at every stage of a tyre’s lifecycle: more sustainable manufacturing, superior fuel economy with less wear and responsible end of life recycling.

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Smarter tyres In Europe, more than 90% of a tyre’s environmental impact occurs in use, where weight and rolling resistance have a significant impact on fuel economy. The latter can account for as much as 30% or a vehicle’s fuel consumption and a quarter of its CO2 emissions, so there is a big incentive to focus on reducing resistance.

According to an EU report, choosing an energy efficient ‘A-rated’ tyre can reduce fuel economy by up to 9% – representing a saving of as much as 440 litres of fuel over its lifetime – around ¤600 at today’s pump prices.

EU standards on tyre performance are clearly codified to meet exacting fuel economy, noise and safety criteria, but the tyre manufacturers are working out how to increase efficiency without compromising on safety.

In 2018, Aliapur, the French tyre recycling company established by leading OEMs, recovered almost 375,000 tons of tyres – equivalent to 47 million passenger vehicle tyres.

– which releases carbon into the atmosphere – and millions of tyres a year are shipped abroad for recycling, which increases the carbon footprint of each tyre recycled.

Goodyear is pursuing similar fuel economy improvements by reducing the weight of its tyres by 9% and the rolling resistance by 40% and Continental claims its new EcoContact range of tyres improve fuel consumption and extend mileage while maintaining existing levels of grip.

©Tarmac

Brigestone Ecocopia

In the UK, civil engineers at Tarmac have added shredded tyre rubber to an experimental road surface which uses the equivalent of 750 per kilometre of road surface.

The UK sustainable building materials and construction solutions business Tarmac has launched a new rubberised asphalt which uses recycled waste tyres.

Going the extra mile: recycling end of life tyres

In France, Aliapur was established by leading OEMs (Bridgestone, Continental, Goodyear, Michelin and Pirelli) as a collaborative tyre recycling operation after the French Government made it a legal requirement that every tyre sold in France must be registered and then recycled at the end of its life. An Ecotax ranging from ¤1 - ¤9 depending on its size and weight is levied on each new tyre fitted and then reclaimed at the end of life.

Europe has upped its game significantly in recent years and now recycles 95% of end of life tyres, but a significant proportion are still burned

In 2018, Aliapur recovered almost 375,000 tons of tyres – equivalent to 47 million passenger vehicle tyres. Of

Continental EcoContact

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these recovered tyres, 44% were used as an alternative fuel to coal and oil, 15% retreaded or sold second hand and 11% was used in insulation or impact absorption products (such as artificial pitches of indoor sports surfaces).

Although burning tyres to power cement kilns produces more heat and less greenhouse gas than using oil to fire these kilns, environmental groups continue to have reservations about the pollutant effects of burning shredded tyres – particularly when they are shipped overseas where environmental legislation may not be as strict and they end up in landfill.

Tyre industry sources concede that the proportion of end of life tyres being burned or shipped overseas for recycling is too high. According to Aliapur, more than half of Europe’s end of life tyres are transported – adding unnecessary transport costs and emissions when the overall aim is to reduce environmental impact.

Peter Taylor, secretary general of the UK’s Tyre Recovery Association said: “While there has been significant progress in reusing and recycling waste tyres in the UK, there is still an over reliance on the export of used tyres to countries such as China, India and Pakistan, who are importing fewer tyres as they become self-sufficient.

In future, further advances in tyre technology such as the 100% recyclable airless tyre could lead to the establishment of a genuinely circular tyre economy in which end of life tyres are efficiently reprocessed to make new tyres.

FLEET EUROPE #109

Low rolling resistance tyres such as Bridgestone’s Ecopia range were initially designed to be fitted to improve the range of electric vehicles, but increasingly these tyres are being offered to improve the fuel economy of conventionally fuelled vehicles.

©Aliapur

The easiest way to reduce wear and abrasion (and thus the volume of microplastics entering the environment) is to use harder rubber compounds, but these could breach existing noise or grip parameters – so a delicate balancing act is required.

SHARED MOBILITY

9 HACKS FOR HASSLE-FREE CAR SHARING Fien Van Den Steen

Corporate car sharing has several benefits, such as decreasing congestion, reducing costs and efficient use of the fleet. With these tips, you can enjoy it even more.

1

Key management. You want to avoid employees physically handing over keys to one another or the fleet manager functioning as the key manager. “The first thing is to install car sharing hardware into the vehicle to allow keyless entry,” said a spokesperson for Ridecell. “The keys can be replaced with the customer’s phone using Bluetooth or with an RFID card which can be the building access card.”

2

Pick your sharing strategy.

“Perhaps the most optimal solution for fleet managers is if they can partner with a local carshare operator,” says Ridecell. “This allows their fleet size to change dynamically due to seasonal needs. Need more vehicles: pull from the public carsharing fleet. Need less: return them.”

of time and returning them to the pool when done and on time,” explained Ridecell. Late returns can impact other employees who are depending on that car for their next trip.

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6

4

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Pick your sharing company. Now you have chosen the right pooling method, you can choose the right company to partner up with. There are various commercial car-sharing companies available, some of which have a business formula.

FLEET EUROPE #109

So, once you’ve dealt with the technical part, you need to look for a flexible reservation system to ensure that vehicles are there when an employee needs one.

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Beyond the technical switch, there must be a switch of mindset as well. “On the behavioural aspect, employees need to get used to the idea of having vehicles for shorter periods

Parking management. Shared cars can reduce the total number of parking spots needed, especially if the shared cars are managed in parallel with the car park. The start-up Commuty, for instance, manages the shared fleet and the car park in the same application.

Damage management. The smart start-up WeProov built an application that lets any driver take a picture before and after taking the car, and before and after damage occurred.

The information can be sent to the central data platform, where the fleet manager is not only alerted about the damage but also receives quotes from repair shops.

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8

Insurance. Telematics can help you make sure that the car will be driven to the highest safety standards.

A safety device can monitor the driver’s behaviour and if necessary, send an alert to the driver or a wake-up call when fatigue or distraction is spotted.

9

Maintenance. Telematics can also help deal with maintenance for shared cars. By monitoring the engine sounds or vibrations, and/or keeping track of the maintenance history, such applications anticipate on possible engine (or other) failures and recommend preventive maintenance when needed.

SHARED MOBILITY

SMART START-UPS FOR SMART SHARING Fien Van Den Steen

Many smart mobility start-ups are looking into shared mobility, but the really ‘smart’ start-ups are those that are providing solutions for the growing shared mobility market, filling the newly created gaps.

To find your way in the changing landscape, the start-up Bellhop created another app to compare ride-hailing services in terms of money, time and offer. With one app you’ll know which ride-hailing companies are active in your region and which ones offer the most economical ride at the moment.

Bellhop promises to ‘stop wasting money on ride sharing’.

Another frequently faced issue in the new shared mobility market is the problem of dockless scooters littering streets or literally getting dropped anywhere rather than parked. Since they lack proper docking stations, another issue is the charging cycle.

Often, scooter providers employ young people to run around and retrieve lost scooters, take them home, charge them overnight and bring them back to the streets the morning after. Yet, that’s not a very sustainable solution, particularly if it concerns a corporate scooter fleet.

Swiftmile came up with a solution: universal docking stations that not only allow the scooters to park nicely and safely, but charges them at the same time. The genius part of this solution?

The docking stations are universal, both in terms of parking and of charging.

Hence, any city, company, or car park facing the scooter challenge can easily install one and park about 24 scooters of Bird, Lime, Spin, Skip or any other provider in it, only taking up the space of one standard parking spot. And the electricity? That will be produced by the solar panels above the docks.

With the increased electrification of transportation, proper charging structure is one solution but proper batteries are as well. SomEV (Sommerville Electric Vehicle Co.) came up with a smart solution that combines both needs. The charging stations for e-scooters and e-bikes are actually swapping stations. Rather than leaving your vehicle behind and exchanging it for a fully charged one, or worse waiting until the vehicle is charged again, you only leave the battery behind and swap it with a fully charged one.

The solution is convenient, since you keep your vehicle and you don’t have to wait until it is charged. Moreover, it is cheaper and faster. The charging and swapping process takes about 2 minutes, and the system costs are lower than hiring someone to drive around to recharge scooters. That’s how SomEV re-invented battery management.

FLEET EUROPE #109

The shared mobility market is exploding. Not only our streets but also our brains are overwhelmed by the growing offer. About a billion people around the world are using shared mobility apps of all kinds. Especially ride hailing companies are booming and not only ride-hailing giants Uber and Lyft are taking their share of the pie. Depending on the country you are in other ride-hailing companies might be active, and the big ones might have different local or regional competitors.

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AUTONOMOUS

AUTONOMOUS VEHICLES: WHO’S COLLABORATING WITH WHO? Mark Sutcliffe

The global race to launch commercially viable autonomous has seen Europe’s leading carmakers jump into bed with a raft of tech companies and in some cases each other in a bid to establish market leadership.

US tech giants like Google spin-off Waymo and ride-hailing platform Uber are joining forces with established automotive OEMs to accelerate the journey to autonomous driving.

According to the Boston Consulting Group, the global market for Connected and Autonomous Vehicles (CAVs) will funnel $150 billion of new profits into the automotive sector by 2035, so the AV prize is a big one.

Three-way fight Some analysts have framed the battle as a three-way fight between free-wheeling free marketeers in the US, the more cautious science-led approach of the Europeans and the top-down command and control economy of China.

America claims it’s winning the race, because AVs are already operating on US roads (where two deaths have already been attributed to AVs), but the Europeans are quietly making progress in more closed testing environments and the Chinese continue to surprise their western counterparts with the speed of their progress.

FLEET EUROPE #109

According to analysts at international consultancy Roland Berger, while most incumbent OEMs have opted for an evolutionary approach and are developing automated driving functions step by step, American tech companies – and Chinese firms, too – are pursuing much more aggressive tactics.

data collected by the vehicles,” said the analyst. “This is the foundation on which most of the successful internet-based business models are built.”

Waymo and GM, in particular, are massively expanding their test fleets, which by 2021 will number several thousand vehicles, respectively.

There is also a continental divide over the nature of CAVs themselves: will they be privately-owned robo-limos to allow thrusting executives to be more productive on the move (US), or publicly-owned and regulated robotaxis and shuttlebuses that get everyone from A to B more efficiently (Europe).

Complex road networks And in Europe, there is scepticism that autonomous driving technology developed on the uniform grid systems found in Phoenix or California will even work on Europe’s complex and congested road networks.

A KPMG report earlier this year said that while the Netherlands had the most advanced infrastructure in the world for the introduction of CAVs, the technology was still struggling to recognise and respond appropriately to bicycles in a live environment.

vehicles for an increasingly globalised market is clearly a global challenge.

Carlos Moedas, European Commissioner for Research, Science and Innovation is talking tough: “Car manufacturers are in a worldwide race for automation, and it is one that Europe needs to win. Autonomous and connected driving will not happen on its own, and we need to produce the right framework to simulate progress.”

European leadership Countries across Europe all claim leadership in the development of AV technology export to vehicle manufacturers around the world. Carmakers are working together with governments and research institutions, while new start-ups are also winning funding to develop CAV technology – although the scale of funding for AV research in the EU is dwarfed by the sums being spent in the USA. The UK has set up a government department, the Centre for Connected and Autonomous Vehicles (CAV), and is working on legislation to allow testing on motorways in the country. There are also testing schemes in cities, including London and Coventry, with research organisations established to develop the technology and systems.

Network effect

Most of Europe’s main carmakers are participating in the L3 Pilot Scheme consortium which aims to drive the technology forward while establishing common standards for AVs across the continent.

In Germany, the June 2017 Autonomous Vehicle Bill modified the existing Road Traffic Act to define requirements for highly and fully automated vehicles and clarified the rights of the driver.

“They are pushing to get their self-driving fleets into commercial operation as soon as possible in order to be in a position to develop and refine their systems based on the real-life driving

And although it’s geographically easier for US carmakers to collaborate with the tech giants based in Silicon Valley, the development of autonomous

Germany’s federal government plans to create an environment for Level 5 fully autonomous vehicles by the end of the legislative period.

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France is establishing a legislative framework that will allow testing of autonomous cars on public roads in 2019. Level 4 self-driving vehicles will be used on roads around the country with no human operator behind the wheel – as current legislation requires – with the aim of deploying ‘highly automated’ vehicles on public roads between 2020 and 2022.

MAJOR CAR-MAKERS… AND WHO THEY ARE WORKING WITH ON CAVS

FLEET & BUSINESS

BMW Daimler Aptiv Bosch

FIAT-CHRYSLER Waymo BMW Aurora Innovation Intel/Mobileye

Last year, Spain’s Dirección General de Tráfico and technology company Mobileye agreed to work together ‘to reduce road accidents and prepare Spain’s infrastructure ecosystem and regulatory policy for the driving of autonomous vehicles.’

RENAULT-NISSAN Waymo

DAIMLER BMW Bosch Nvidia

This ambitious project effectively transforms Barcelona into a full-scale test laboratory by equipping a 5,000-vehicle fleet with Mobileye 8 Connect technology.

So who, exactly, is working with who?

Most of the major OEMs are collaborating with tech partners from both sides of the Atlantic, while Volkswagen and Ford – both of whom have been accused of coming late to the AV party – announced a huge AV collaboration earlier this summer.

VOLVO Uber Huawei

JLR Waymo

HONDA GM Cruise

TOYOTA Uber

FORD Volkswagen Argo AI

VOLKSWAGEN GROUP Ford Argo AI Aurora Innovations Aptiv Nvidia Huawei

KIA/HYUNDAI Aurora Innovations

This non-exhaustive overview is based on major development partnerships that go beyond the traditional supplier-buyer relationship. In this fast-moving industry, partnerships are liable to change at any moment.

TECH > AUTOMOTIVE

• BMW Aptiv Daimler Bosch • DAIMLER Bosch Nvidia BMW • FIAT-CHRYSLER Waymo BMW Aurora Innovations Intel/Mobileye • FORD Argo AI Volkswagen • HONDA GM Cruise

• KIA/HYUNDAI Aurora Innovations • RENAULT Waymo • TOYOTA Uber • VOLKSWAGEN GROUP Ford Argo AI Aptiv Nvidia Huawei Aurora Innovations

• APTIV Audi BMW

• INTEL/MOBILEYE BMW Fiat-Chrysler

• AURORA INNOVATION Fiat-Chrysler Automotive Nvidia Volkswagen Kia/Hyundai

• LYFT nuTonomy

• ARGO AI (Ford) Ford Volkswagen • BOSCH Daimler (EU) Waymo BMW Tesla

• VOLVO Huawei Uber

• GM CRUISE Honda • HUAWEI Audi Geely

• JAGUAR LAND ROVER Waymo

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• NVIDIA Daimler Tesla Volkswagen Aurora Innovations • SAMSUNG Rinspeed • UBER Volvo Toyota • WAYMO Renault-Nissan-Mitsubishi Fiat Chrysler JLR GM Bosch

FLEET EUROPE #109

AUTOMOTIVE > TECH

MAAS

HOW PARKING CHARGES ALONE CAN COVER THE COST OF CORPORATE MOBILITY SOLUTIONS Mark Sutcliffe

Parking charges in major European capitals and regional centres are some of the highest anywhere in the world.

Increasingly, the costs of congestion and parking charges will makedriving into a city centre extremely expensive.

FLEET EUROPE #109

And with the price of driving into major cities likely to rise still further with the introduction of congestion and/or pollution charges, some analysts are predicting that the savings made on parking and urban driving levies alone could fund MaaS solutions for corporate mobility.

As the Netherlands Ministry of Infrastructure pointed out in a 2018 report on MaaS, many of the variable costs associated with running a car are not accounted for in a monthly leasing fee: “…on balance, many perceive car ownership as cheaper than it actually is. Variable costs may, incidentally, be more manifest in cities where car ownership is much more expensive on account of toll charges and high parking fees, such as in London or Amsterdam.”

According to a 2016 survey by Euronews, daily parking charges across Europe average out at ¤24 Per day. But

in the most expensive cities, such as London, Stockholm and Oslo, daily fees can easily exceed ¤50 per day.

According to Parkopedia, on some metrics, in 2017, London had the highest hourly parking charges in the world and the combination of the congestion charge and the newly introduced T-Charge adds a further ¤27 to the cost of driving into the capital.

So the average cost of driving into central London for a day of work and meetings would be ¤91. That works out at 58% of the median London wage of ¤157 per day!

More European cities in France, Germany, Spain, Italy and the Benelux are preparing to follow London’s lead by introducing congestion and/or pollution charges on all but the lowest emission vehicles.

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€1,800 In the future, company car drivers who choose to drive into cities every day on business could potentially be costing their employers an additional ¤1,800 per month! Even the most expensive MaaS subscription tariffs rarely exceed ¤500 per month.

Increasingly, the costs of congestion and parking charges alone will make driving into a city centre an extremely expensive journey which proactive travel managers will try to discourage. So if more business travellers left the car at home and didn’t need to pay any parking charges – how far would the savings take them using public transport?

Again, fares vary widely across the EU. In the UK, where public transport tends to be expensive by European standards, the cost of an intercity business trip plus urban transport at either end can be excruciatingly high.

COST OF AN HOUR’S CITY CENTRE PARKING 9 8 7 6 5 4 3 2 1

Bucharest

Sofia

Warsaw

Glasgow

Lisbon

Budapest

Berlin

Luxembourg

Vilnius

Prague

Ljubljana

Brussels

Frankfurt

Riga

Geneva

Bratislava

Rome

Helsinki

Tallinn

Dublin

Milan

Barcelona

Zurich

Vienna

Athens

Paris

Madrid

Amsterdam

Copenhagen

Oslo

London

Stockholm

0

Average cost, April 2016 Source: Euronews

For example, a standard return fare purchased for travel the same day from London to Manchester can be as high as ¤385. It would be significantly cheaper – including parking charges – to make the return trip by car, so it’s perhaps little wonder that the Brits remain so addicted to their company cars!

It’s a different story in continental Europe however, where even cross-border rail fares tend to be much lower.

The total cost of a return trip from Oslo to Stockholm – including fuel, depreciation, tolls of ¤10 and parking charges of ¤62 works out at ¤564. Parking and toll charges alone (¤72) almost cover the cost of the standard return rail fare of ¤90.

The picture for commuters is even clearer cut. In Europe, the cost of a 20km commuter journey into a capital city typically costs about the same as a day’s parking – around ¤24. A similar journey into a regional city typically costs ¤15.

Even in London, home to the most expensive transport in the world, unlimited travel on buses, trains and the metro across Greater London costs only ¤20.50. This is less than a third

of the typical daily parking charge in London of ¤64.

Tax on parking spaces But what if city governments took congestion charging a step further and introduced taxes on parking spaces in city centres? With an estimated 47 million regulated parking spaces across Europe according to the EPA, a flat ¤100 charge on each space every year would raise ¤4.7 billion a year.

The UK city of Nottingham has pioneered a variation on this theme, using the revenue generated to fund sustainable transport infrastructure.

Nottingham city council charges businesses who provide free workplace parking for their employees an annual fee of £456 per parking slot.

Since its introduction in 2012, this has raised some ¤55 million which the city authorities have spent on extending the local tram network, purchasing the largest fleet of electric buses in Britain and improving cycling infrastructure.

MaaS pioneers The costs of driving into European cities look set to rise significantly over the next decade and it’s no coincidence that – with the obvious exception of London –

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EUROPE’S MOST EXPENSIVE PLACES TO PARK RANK

CITY

DAILY COST (€)

1.

LONDON

64

2.

STOCKHOLM

62.40

3.

OSLO

51.20

4.

COPENHAGEN

40.80

5.

AMSTERDAM

40

6.

MADRID

39.20

7.=

PARIS

32

7.=

VIENNA

32

7.=

ATHENS

32

7.=

ZURICH

32

Source: Euronews

it’s the cities where parking is most expensive that are embracing MaaS with the greatest enthusiasm.

So it’s no surprise that Helsinki and Stockholm are both pioneers of MaaS platforms, but could London, with the highest parking and congestion charges in Europe, be the next to follow suit?

FLEET EUROPE #109

Public transport

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