Fleet Europe °114 by Nexus Communication

114 02/2020

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London calling

Going global with Mondelez International

2020, TIME TO PUT THE IN YOUR

• How to compare the TCO of EVs with ICEs • How fuel companies take on alternative powertrains • Three electrifying case studies: AstraZeneca, Cronos Group and IKEA

Andy Leeden, AstraZeneca

Nicolas Mathieu, Cronos Group

GLOBAL FLEET CONFERENCE

Angela Hultberg, IKEA

ROME 25-27 MAY 2020 https://conference.globalfleet.com

NEW ENERGIES 4-29 4

Europe to become the world’s biggest EV market

No excuses left, it’s time to plug. View our plug-in hybrid selection.

Europe posted a significant growth in new BEV and PHEV sales last year and is likely to become the world’s largest market post 2020.

(P)re-consider your EV orders OEMs launching new EV models are copying the Tesla approach: they start selling them online before the start of production, claiming supply will initially be limited. How does this work in a B2B environment?

20 Infrastructure, the obstacle to EVreadiness

Cronos Group: “Don’t force employees to go electric”

After years of slow progress, e-mobility will go big in 2020. That’s what we’re told. But will Europe really make the switch? Time for a reality check.

22 Fuel companies clean up their act The fuel companies have so far focused on the production, refining and distribution of oil and gas products. With concern over global warming on the rise, yet the demand for fossil fuels still prevalent, are they truly committed to a clean future?

16 14

24 Who will win the EV charging battle? EV charging seems a straightforward solution to provide, but it’s fraught with challenges so it’s difficult to predict which suppliers will win out.

10 steps to electrify your fleet.

26 Diesel is dead. Long live diesel Rumours about the death of diesel have been grossly exaggerated. It will remain an important part of the fuel mix until at least 2030.

18 Andy Leeden, AstraZeneca and European Green Fleet Manager of the Year.

COLOPHON PROJECT COORDINATOR: Céline Gilson

SALES: David Baudeweyns, Elke Leën, Daniel Savigny, Sven Van Rossum, Aline Verpoorten, Estelle Remacle

EDITORS: Benjamin Uyttebroeck, Dieter Quartier, Yves Helven, Frank Jacobs, Fien Van den Steen

MARKETING: Vincent Degives, Virginie Emonts, Benoit Delisse PUBLISHERS: Caroline Thonnon, Thierry Degives

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

PICTURES: ©Shutterstock, Benjamin Brolet, Willem Van Puyenbroeck

FLEET EUROPE #114

CHIEF EDITOR: Steven Schoefs

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FINANCIAL MODELS 30

Rethinking TCO for electric vehicles It’s time to redefine the classic TCO model. Arguments in favour of revamping the old calculation are diverse: the transition from ownership to usership, impact of recyclable elements (batteries) in the automotive industry, volatility of residual values...

CONNECTED

How Ikea plans to encourage customers to hitch a ride on the journey to carbon neutrality.

Connected Fleets conference: 5 Lessons learned More than 100 fleet and mobility professionals gathered in Brussels on 28 and 29 January to share best practices and the latest trends in last mile deliveries. This is what they went home with.

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London, the World’s Smartest City 2020 must be the year in which London will become the world’s smartest city. The UK capital won’t only turn into the most walkable city, it will also roll out 5G and a range of smart mobility features. Here’s an overview of London’s smart mobility landscape.

REMARKETING

Why batteries are the future Key to our electric future are not the EVs, but their batteries. MercedesBenz Energy is optimising their value, even when they’re not powering cars.

Jan Van Lishout, Qteal: “Disregard all established rules”

Discover more news, features and analyses on the Fleet Europe ecosystem on our website

38 Smart Mobility Start-up Award Winner Vaigo’s winning formula: Simplicity.

40 Meeting with John Dmochowsky, Mondelez and European Safety Fleet Manager of the Year.

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FLEET EUROPE #114

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NEW ENERGIES

EUROPE TO BECOME THE WORLD’S BIGGEST EV MARKET @DieterQuartier

Europe posted a significant growth in new BEV and PHEV sales last year and is likely to become the world’s largest market post 2020. Not all countries are equally hot for ‘e’, though. Europe saw its new battery-electric (BEV) and plug-in hybrid electric (PHEV) sales increase by 27% last year. At the same time, other major ‘electric blocks’, such as China and the USA, saw total BEV and PHEV sales decline by 19% and 15%, respectively. The rollback of subvention schemes for EVs has caused a serious cooldown across the Atlantic and in the People’s Republic. According to data provided by Frost and Sullivan, the European ‘plus’ and the American and Chinese ‘minus’ resulted in a tepid growth rate of just 9.7% last year, compared to nearly 70% the year before and 59% in 2017. The global EV fleet quadrupled between 2015 and 2018, from 512,000 vehicles to 2.1 million, but grew just by 200,000 units last year. As to the penetration rate: it nearly doubled from 1.5% in 2017 to 2.9% in 2019.

found an owner in China, with Europe coming in second (623,000 units) and the Americas grabbing the bronze (416,000 units). These market shares are likely to shift dramatically in 2020, the year in which CO2 reduction targets hang like the sword of Damocles over the carmakers’ head.

petrol engine, and so can the Mercedes A, B, C, E and GLC Class. Audi has the pluggable Q5 and A6 on offer, with the Q3 and new A3 following later this year. Volvo has strengthened its Twin Engine offer with the XC40, which is likely to quickly grab a spot in Europe’s PHEV top 10.

According to CleanTechnica, BEV vehicles (+91% year on year) grew a bit faster than plug-in hybrids (+81%) last year. The market share of BEVs was 2.2%, that of PHEVs 1.4%, underlining the fact that all-electric has outpaced plug-in hybrid in Europe.

The mass-market brands are equally unleashing their PHEV offensive in the heart of the fleet market, with the new VW Golf, Seat Leon, Opel Grandland X, Peugeot 3008 and 508, Skoda Octavia, Ford Kuga, and so on. And let’s not forget Renault, which is readying the cheapest PHEV on the market, the Captur E-Tech.

However, the cards seem in favour of the PHEVs in 2020. The number of available – and more affordable – plug-in hybrid models is about to explode. The German premium brands have already started selling plug-in hybrid models of their fleet best-sellers. The BMW X1, X2, X3, 2-Series Active Tourer, 3-Series and 5-Series can all be ordered with a below 50g electrified

CO2 targets to boost sales

Roughly half of all BEVs and PHEVs sold last year (1.150 million units)

Even though VW is betting big on all-electric A and C-segment models, from the Seat Mii Electric down to the highly-anticipated and mediatised sub-€30,000 ID3, and PSA starting deliveries of the Peugeot e-208 and Opel Corsa-E soon, it seems unlikely that these ‘volume’ EVs combined will

Electric Vehicles Sold in the lastSOLD decade ELECTRIC VEHICLES IN THE LAST DECADE

Over 2.3Over million were sold in 2019 a lowest growth till date 2.3 electric million vehicles electric vehicles were sold with in 2019 with ay-o-y lowest y-o-yrate growth rate till date Electric Vehicle Outlook: Historic EV Sales, Global, 2007-2019 2.9% Over 8 years to reach one million EVs collectively

2.3%

4X growth

2 312 303

2 107 228

1.5%

1 242 565 1.0% % Penetration in Passenger car market à

0.7%

779 411

FLEET EUROPE #114

512 534 100 2007

468 2008

368.0%

1 960 2009

318.8%

6 763 2010

245.1%

51 325 2011

658.1%

134 406 2012

161.9%

211 765 2013

57.6%

324 751

2014

53.4%

2015

57.8%

2016

52.1%

59.4%

2017

2018

69.6%

2019

9.7%

Note: All figures are rounded. The base year is 2018. Source: Frost & Sullivan

The total number of EVs on our planet will surpass the 3 million mark in 2020, with 70% likely to be BEV and 30% PHEV

outsell the aforementioned PHEVs – at least not in the EU.

EUROPE PLUG-IN VEHICLE SALES (JANUARY-DECEMBER 2019) Top 20 plug-in electric vehicles (in terms of year-to-date unit sales) across most of Europe, with data aggregated by Jose Pontes of EV Volumes for CleanTechnica.com (Bold = fully electric.)

The king called Tesla Model 3 Californian EV phenomenon Tesla obliterated all competition in 2019 thanks to the Model 3. All models combined, the brand sold 387,000 units last year, some 110,000 of which found their way to Europe. Roughly 95,000 were Model 3s. Even though VW will start producing the ID3 by summer, it will probably not equal this number by the end of 2020. PSA has high hopes for the Peugeot 208, but with an estimated total of 250,000 units for 2020, one in three cars needs to be an e-208 to give the Tesla Model 3 a run for its money.

Tesla Model 3

95,247

Renault Zoe

47,408

If there is one OEM that stands a chance of grabbing the BEV crown in Europe in 2020, it’s Hyundai. The OEM said it aims to become the largest producer of electric cars in Europe this year, as it will start production of the all-electric Kona at its Czech plant in March, dramatically reducing delivery times. Until now, the cars had to come from South Korea and were limited in supply. Hyundai aims at selling 80,000 zero-emission vehicles to European customers in 2020.

Mitsubishi Outlander PHEV 34,597 Nissan Leaf

33,155

BMW i3

32,828

VW e-Golf

28,710

Hyundai Kona EV

22,667

Audi e-Tron

18,483

Mini Countryman PHEV

15,975

Volvo XC60 T8 PHEV

14,395

BMW 530e

13,892

BMW 225xe Active Tourer

13,138

Jaguar i-Pace

12,722

Mercedes E300e/de

11,820

Smart Fortwo EV

11,815

Kia Niro PHEV

10,804

BMW 330e

10,172

Kia Niro EV

10,139

Hyundai Ionoq Electric

9,771

Tesla Model S

8,810

Chart: CleanTechnica • Source: EV Volumes

Germany leads the way Frost and Sullivan expect the total number of EVs on our planet will surpass the 3 million mark this year, with 70% likely to be BEV and 30% PHEV. “Determining factors will be implementation of emission standards, revised policies and regulations and revision of incentives in leading EV countries,” says Octavian Chelu, Principal Consultant – Mobility of the consultancy firm.

There is a clear correlation between financial stimuli and EV uptake, with Norway and the Netherlands as cases in point. Now that Germany has agreed to increase the cash bonus to €6,000 for EVs and to €4,500 for plug-in hybrids – on condition that they cost less than €40,000 – the country has no intention of giving the EV sales crown back to Norway, which held it for several years.

Interestingly, it’s the OEMs themselves that cover half of the cost of these subventions. They will run through 2025 and could provide support for another 650,000 to 700,000 electric vehicles, according to the German car makers association VDA. Thanks to Frost & Sullivan for supporting this article.

EV Market Vehicle 2019 – Global EV MARKET VEHICLE 2019 - GLOBAL

China China continues to leadtothe market with over 49.9% marketmarket share with over 1.1 million units sold continues lead the market with over 49.9% share with over 1.1 million units sold Electric Vehicle Outlook: Market Outlook, Global, 2019 2,312,203 EVs sold in 2019

330 (212 BEV & 123 PHEV) Models for Sale

~6,592,937 Total EV Car Parc

>320,000 Charging Stations

EV sales by region and split by EV type, 2019 5,246 Americas 18,0%

PHEV 26,0%

AsiaPacific 4,8%

415,857

109,738

623,453

1% 27%

29%

34%

21%

72%

67%

66%

79%

Americas

Asia-Pacific

Europe

China

70% 30% Africa & M E

FCEV 0,3%

1,150,082

Electric Vehicle Outlook: EV Sales Split by Top OEMs, 2019 BEV 73,6%

387

Europe 27,1%

BEV

PHEV

Tesla

231

217

BYD

RN M

157

138

135

129

BMW

Hyu nda i-Kia

BJEV

SAIC

VW Grou p

Geel y

Note – APAC excludes China as it is represented separately

60 Toyota

Note: All figures are rounded. The base year is 2018. Source: Frost & Sullivan

FLEET EUROPE #114

China 49,9%

Market Share

Africa & ME 0,2%

ADVERTORIAL

CONCEDED EDITORIAL SPACE

JAGUAR I-PACE:

DRIVEN BY HEART AND MIND TCO and CO2 reduction are what pushes companies to electrify their fleet. In the case of the I-PACE, corporate goals go hand in hand with driver satisfaction. with an 8-year/160,000km warranty, incidentally. But it is also about the tax position. “We have clearly seen tax driving adoption of EV – no better market than Norway to demonstrate that, or the Netherlands. There are the penalties for accessing cities as well, which you can see happening in London and Oslo, for instance.”

Why drivers choose the I-PACE

Simon Dransfield, Director Fleet & Business, Jaguar Land Rover Europe

Jaguar was one of the first brands to bring zero-emission driving to the premium EV segment, not by turning an existing model into an EV, but by starting from scratch. The result is a vehicle that combines top-notch 90 kWh battery and drivetrain technology with clever packaging and highly emotive styling, recognised in 2019 with the most prestigious accolade in the industry: the World Car of the Year Award.

FLEET EUROPE #114

Just two years after its launch, it has almost gathered the status of an icon, bestowed upon it by the early adopters who jumped to the chance of becoming an I-PACE driver and indeed part of a community of people who take sustainability at heart – without having to compromise on practicality and driveability.

Why fleets choose the I-PACE “The first wave of I-PACE customers were mainly smaller businesses. It had some real success in Europe’s most mature EV markets, and even in

At the end of it, also the personal pleasure and the enjoyment of driving an electric vehicle is what make employees opt for the Jaguar I-PACE. “It’s a car that really does perform exceptional against the traditional ICE products. The way it actually goes round corners is quite phenomenal. And I think there is no compromise to the driveability,” says Simon Dransfield. “There’s the brain and there is also the heart. I think both drive a great engagement.” Germany and in France the I-PACE has really taken off,” says Simon Dransfield, Director Fleet & Business at Jaguar Land Rover Europe. “Over the last 12 months we have witnessed a graduation into the different fleet segments: also the larger companies are adding the I-PACE to their car policies.” There are many reasons why fleets are taking to the Jaguar I-PACE. “It is around the CO2 very much, but also about lower TCO. In terms of the operating cost for electric vehicles, and specifically I-PACE, the service, maintenance and repair costs are significantly lower,” explains Simon Dransfield. The battery of the Jaguar I-PACE comes

Watch what the Jaguar I-PACE means for fleets and how it convinces both corporates and company car drivers:

More info jaguar.com/I-PACE

NEW ENERGIES

(P)RE-CONSIDER YOUR EV ORDERS @DieterQuartier

OEMs launching new EV models are copying the Tesla approach: they start selling them online before the start of production, claiming supply will initially be limited. How does this work in a B2B environment – and should you really pre-order EVs for your fleet? The VW ID3, the Ford Mustang MachE, the Polestar 2, the Tesla Model Y and Cybertruck: they all have two things in common. First, they are electric. Second, they aren’t being produced yet, but consumers can already put their name down on an online platform through a refundable deposit “to become one of the first to receive the new model.”

Pre-ordering in practise In a leasing context, there are basically two scenarios. Corporates either pre-order a number of EVs at the OEM and then transfer the actual order to the leasing company when they are produced and delivered, or the leasing company pre-orders the EVs in anticipation of demand or on behalf of the customer. “Corporate customers usually order cars as they need them and don’t anticipate their purchases, especially in user-chooser fleets. It is often down to the leasing company to anticipate potential volumes of any car with a long lead time”, explains Adrian Porter, Head of Strategic Partnerships

Corporate customers usually order cars as they need them and don’t anticipate their purchases, but perhaps they should. at ALD Automotive. “In such cases, the leasing company can pre-order or pre-purchase a batch of cars to meet anticipated demand. There are still only a small number of companies requiring bulk orders of BEV models, but in such cases we can more easily estimate the anticipated need from the known contract end dates.”

Digital and physical Whereas an entirely digital sales process seems feasible in the B2C market, the B2B channel seems to require a physical intervention. Even the most digital of EV brands realise that. “Our structural plan is to offer account management services for our customers on both a local and international market level, which will allow us to be strategic in our offering and manage our volume planning, along with the order-to-delivery process

to ensure we can meet our customer demands. This is vitally important for any brand, especially those new to market,” says Peter White, Head of Global Fleet & Business at Polestar. Still, Volvo’s Tesla-rivalling sister brand is developing a digital solution for their order management process, so all customers can receive the same experience, whether you are purchasing your own vehicle or procuring multiple vehicles for your company. Process efficiency on the procurement side: who can hold anything against that? This is surely something Fleet Europe will be following up. FLEET EUROPE #114

This B2C approach is entirely digital, incidentally. It’s clever, too. OEMs create a hype around their new product and get a better view on how many units the market is willing to absorb. However, the brands can’t expect a fleet manager to follow the same procedure and pre-order the vehicles online or to pay a deposit. Still, it might be a good idea to make sure you get sufficient numbers for your company and - why not - capitalise on the hype of a new product to become more attractive as an employer.

NEW ENERGIES

NO EXCUSES LEFT, IT’S TIME TO PLUG @DieterQuartier

European corporates have little reasons left to hold off electrified vehicles in their fleet: the market will be flooded with relatively affordable battery-electric and plug-in hybrid models this year. Fleet Europe has made a selection that allows you to compare their green credentials.

PHEV

PLUG-IN HYBRIDS

BMW X1 xDrive25e • ICE: 1.5 3-cylinder petrol • Battery capacity in kWh: 10 • Combined CO2 emissions in g/km (NEDC 2.0): +/-45 • Electric range (NEDC 2.0) in km: +/-55 • Price in Germany (excl. VAT): €38,500

Drivers of a 225xe Active Tourer now have the possibility to turn their pumpkin into a sexier crossover, which has an improved battery for up to 55 km of electric driving.

Ford Kuga Plug-in Hybrid • ICE: 2.5 4-cylinder petrol • Battery capacity in kWh: 14.4 • Combined CO2 emissions in g/km (NEDC 2.0): +/-26 • Electric range (NEDC) in km: +/-56 • Price in Germany (excl. VAT): €33,000

Ford is back on track with an entirely renewed model range. Amongst the newcomers is a plug-in hybrid Kuga, which carries an attractive price tag and offers convincing performance.

Kia XCeed PHEV* • ICE: 1.6 4-cylinder petrol • Battery capacity in kWh: 8.9 • Combined CO2 emissions in g/km (NEDC 2.0): +/-30 • Electric range (NEDC 2.0) in km: +/-55 • Price in Germany (excl. VAT): €30,000

Crossovers with a strong coupé flavour are hot and this sleek XCeed could become a popular sight on your parking lot now that it comes with an efficient PHEV powertrain.

Mercedes B 250 e • ICE: 1.33 4-cylinder petrol • Battery capacity in kWh: 15.6 • Combined CO2 emissions in g/km (NEDC 2.0): +/-35 • Electric range (NEDC 2.0) in km: +/-75 • Price in Germany (excl. VAT): €32,000

This compact MPV has two major assets: it houses the biggest battery on the market and it can be charged using DC, reducing the 10 to 80% charging time to 25 minutes.

FLEET EUROPE #114

Opel Grandland X Hybrid • ICE: 1.6 4-cylinder petrol • Battery capacity in kWh: 13.2 • Combined CO2 emissions in g/km (NEDC 2.0): +/-35 • Electric range (NEDC 2.0) in km: +/-68 • Price in Germany (excl. VAT): €36,500

After the DS7 Crossback, the Peugeot 3008 and 508, Opel’s C-segment crossover is the fourth PSA model to gain access to the 1.6 petrol engine mated to a pluggable battery.

Volvo XC40 T5 Twin Engine • ICE: 1.5 3-cylinder petrol • Battery capacity in kWh: 10.7 • Combined CO2 emissions in g/km (NEDC 2.0): +/- 41 • Electric range (NEDC 2.0) in km: +/- 50 • Price in Germany (excl. VAT): €39,000

Although the all-electric P8 Recharge model has been announced, Volvo clearly focuses on the plug-in hybrid XC40 this year. It is expected to represent one fourth of all XC40 sales.

BATTERY-ELECTRIC VEHICLES Peugeot e-2008* • Battery capacity in kWh (gross/net): 50/47.5 • Range (WLTP) in km: +/-320 • AC charging (kW)/charging time (0-100%): 11/5h15min • DC fast charging (kW)/charging time (10-80%): 100/28min • Price in Germany (excl. VAT): +/-€29,500

Compact crossover and electric: it’s bound to be a winning combination in the B2B segment. The new 2008 shares its platform with the DS3 Crossback.

VW ID3 Mid-Range • Battery capacity in kWh (gross/net): 62/58 • Range (WLTP) in km: +/-420 • AC charging (kW)/charging time (0-100%): 11/6h15min • DC fast charging (kW)/charging time (10-80%): 100/30min • Price in Germany (excl. VAT): +/-€34,000

The Golf of the 21st Century has a convincing range and charging capabilities. Supply in 2020 will still be limited – you can only order the ‘1st Edition’ just now.

Seat El-Born* • Battery capacity in kWh (gross/net): 62/58 • Range (WLTP) in km: +/-420 • AC charging (kW)/charging time (0-100%): 11/6h15min • DC fast charging (kW)/charging time (10-80%): 100/30min • Price in Germany (excl. VAT): +/-€32,000

VW’s Spanish subsidiary is readying its very own take on the ID3, which technically is its identical twin. It will be slightly less expensive and focus a bit more on sportiness.

Audi Q4 e-tron* • Battery capacity in kWh (gross/net): 80/75 • Range (WLTP) in km: +/-450 • AC charging (kW)/charging time (0-100%): 11/9h • DC fast charging (kW)/charging time (10-80%): 125/33min • Price in Germany (excl. VAT): +/-€50,000

The Q4 e-tron finds itself in the category of the BMW iX3, which offers similar specs but looks just like a regular X3. We can only hope it is a lot lighter than its bigger brother.

Lexus UX300e • Battery capacity in kWh (gross/net): unknown/54.3 • Range (WLTP) in km: +/-320 • AC charging (kW)/charging time (0-100%): 6.6/9h45min • DC fast charging (kW)/charging time (10-80%): 50/60min • Price in Germany (excl. VAT): +/-€40,000

If it’s refinement and serenity you are after, the new electric UX could tickle your fancy. It leverages decades of experience accumulated by the brand in the field of driving efficiency.

• Battery capacity in kWh (gross/net): 78/75 • Range (WLTP) in km: +/-500 • AC charging (kW)/charging time (0-100%): 11/8h • DC fast charging (kW)/charging time (10-80%): 150/30min • Price in Germany (excl. VAT): +/-€48,500

The Polestar 2 clearly has its eyes set on Europe’s best-selling EV, the Tesla Model 3, and can count on sister company Volvo to boost its fleet credibility.

*The specifications of models indicated with an asterisk have not been confirmed and are merely indicative. 9

FLEET EUROPE #114

Polestar 2

NEW ENERGIES

“DON’T FORCE EMPLOYEES TO GO

ELECTRIC” @DieterQuartier

Belgian ICT and innovation consultancy company Cronos Group operates one of the largest electric car fleets in the country. 5% of their 3,800 vehicles are equipped with a plug, but that’s just a start. Ever more employees swap the fuel pump for a charging station – and this is why. Cronos Group is Belgium’s largest ICT company. Between 1991 and today, it has grown from a one-man business to an international group comprising more than 400 subcompanies. Its goal is to assist companies in finding creative, high-quality, profitable ways to make the most of the potential of new technologies. As such, it is a crossover between investment holding, start-up incubator and recruitment agency.

FLEET EUROPE #114

“Our employees are basically young entrepreneurs who have an idea that they want to market. We give them whatever they need to turn innovative ideas into business solutions and start their own company, from finance, legal and administrative support and HR guidance all the way to mobility,” explains Bruno Kruijer, Fleet Manager of Cronos Group. “Our mobility philosophy is that there is no one-size-fits-all solution. Every employee has a different profile and should therefore get a bespoke mobility package,” adds Nicolas Mathieu, CFO at Cronos Group. “The employee mobility offer goes from the classic company car and the mobility card all the way to bike lease and other solutions. Everything is possible and we welcome new initiatives.”

Nicolas Mathieu (left), CFO of Cronos: “There is no one-size-fits-all solution. Every employee has a different profile and should therefore get a bespoke mobility package.” Bruno Kruijer (right), Fleet Manager at Cronos Group: “Pool cars are the ideal step-up to electric driving. Employees can try an EV for a few weeks or months.”

Taking away the obstacles Entrepreneurship, innovation and technology being Cronos’ key values, employees are stimulated to venture into new territories – but never pushed. Cronos Group has some 3,800 company cars, all of which are part of an operating lease contract. “We have agreements with 17 carmakers, so we offer a very wide choice,” continues Nicolas Mathieu. “That being said, if an employee wants to go electric, we take away any possible barriers, such as supplier restrictions.” “Hyundai, Kia and Nissan were not a common sight on our parking lot two years ago, but that has changed since the introduction of their electric models,” adds Bruno Kruijer. “Today, nearly 5% of our fleet is all-electric. That’s already double the national

average. The number will go up considerably from this year onwards now that the OEMs are launching a plethora of new models. VW is launching the ID3, Seat the El-Born, PSA soon starts delivering the e-208 and Corsa-e, and so on.”

Driver profiling Not everyone at Cronos Group is entitled to an electric company car, though. “Everybody can apply for an EV, but we assess every application carefully. We look at the charging possibilities at home, the commuting distance, the job profile, and so on,” says Bruno Kruijer. “The important thing is that they try out the electric vehicle before they make up their mind. We have a pool of EVs they can use for several days or even weeks, to cover as many use scenarios as possible,” adds Nicolas

Cronos Group has 33 charging stations of 22kW each at its HQ, which are used constantly.

• Name: De Cronos Groep NV/SA • HQ : Kontich, Belgium • Industry: ICT • International presence: Belgium, the Netherlands, Germany, Spain, Portugal, the UK, USA • Fleet size: 3,800 (mostly benefit cars), of which 170 are full-electric and 20 are plug-in hybrids • Fleet financing method: operating lease, triple suppliership

Mathieu. “It is important that the switch to an EV is a voluntary, committed and feasible one. The number one priority is staying mobile.” “We don’t force employees to go electric, but we do stimulate them,” adds Bruno Kruijer. “New employees can only order a company car after six months of service. During these first six months they can use a vehicle from our pool, which consists of many EVs. Pool cars are the ideal step-up to electric driving. If it works for them, they can order an EV,” he adds.

Charging island As to the topic of charging, Cronos Group does provide wallboxes or smart charging cables to facilitate rebilling of privately paid electricity, but charging at home is not a prerequisite. “So long as the driver

can charge at work and his mobility is never compromised, we see no issue. We have provided 33 charging stations of 22kW each at our HQ to that effect, in close cooperation with the owner of the business park,” says Bruno Kruijer. “The available capacity for our charging island was 650kW, which is controlled by a separate metering unit so we won’t cause any trouble to our neighbours when there is a power cut,” he adds. “The current island suffices for now, but we will need another one in the coming years. That is why we have already provided conduits during the digging works for the current infrastructure.” As the capacity is fully utilised, adding an extra island without adding power supply would reduce the charging speed. “That is why we are looking into installing our own solar panels or an extra substation – again, in close cooperation with the owner of the premises,” concludes Bruno Kruijer. “A final word of advice: such an extra substation comes with a lot of red tape, so it’s good to plan ahead and involve all stakeholders in time: facility management, utility company, owner, and so on.”

“It is important that the switch to an EV is a voluntary, committed and feasible one.”

TIPS TO MAKE EVs WORK

Educate your drivers. EVs are new territory so there are a lot of false assumptions that need addressing.

Don’t push, but pull. Allow drivers to try out EVs as much as possible, for instance by using electric pool cars.

Don’t limit EVs to your usual suppliers. The offer is still quite limited, so open up your supplier list to brands that have the EV models your employees want.

Compare lease rates. The price variation between different lessors is usually bigger than with ICE cars.

Charging at home is not an absolute prerequisite. If the commuting distance is limited and the employee can charge at the office, there is no issue.

For those occasions the employee needs to drive long distance, allow them to swap cars with a colleague that has an ICE car or with an ICE pool car.

Provide plenty of charging stations at work and plan for the future: the number of EVs will only increase.

FLEET EUROPE #114

COMPANY PROFILE

ADVERTORIAL

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FIAT 500 AND FIAT PANDA HYBRID: HYBRID ACCORDING TO FIAT The Fiat 500 and Fiat Panda are the first FCA city cars to be fitted with the new petrol mild hybrid technology. In these Hybrids, the new 3-cylinder engines from the FireFly family (70HP) are combined with the 12-volt BSG (Belt-Integrated Starter Generator). For the last 120 years Fiat has always been a pioneer in technology and an innovator in mobility. 2020 marks a new milestone in the history of the Fiat brand with the launch of these new hybrid versions, which will begin the electrification of the brand. The mild hybrid technology in the Fiat 500 and Fiat Panda is the first step towards this electrification. The 500 and Panda were chosen for a reason: they represent the two souls of the Fiat brand. The 500 is the emotional one and an icon of design and fashion. The Panda, on the other hand, is the more functional, trendy car, with five doors.

Hybrid Launch Edition For the first time, both are together in a single special series: the exclusive Hybrid Launch Edition. It will debut the new petrol mild hybrid engine that combines the latest 3-cylinder FireFly 1-liter 70HP (51kW) engine family with a 12-volt BSG (Belt-Integrated Starter Generator) electric motor and a lithium battery. This technology improves fuel efficiency, thus reducing CO2 emissions on average by 20% and up to 30% depending on the model.

FLEET EUROPE #114

Fiatâ&#x20AC;&#x2122;s mild hybrid technology also ensures a very high standard of driving comfort thanks to the BSG system which allows for quiet, vibration-free restarting of the internal combustion engine in Start&Stop mode. The Hybrid Launch Edition can be recognised by the Hybrid sign on the rear hatch and the exclusive H logo, formed by two dew drops, on the centre panel. Dew, the symbol of light of dawn and therefore of the beginning

The Fiat 500 and Fiat Panda Hybrid mark a milestone for Fiat. of a new era, has been used as inspiration for the new and exclusive dewdrop green exterior that fits both cars like a bespoke suit, in perfect harmony with the themes of nature and innovation.

By introducing the 500 and Panda Hybrid Launch Edition, Fiat will be making a significant contribution towards more sustainable urban driving.

Advantages of going hybrid Customers also benefit from all the advantages of going hybrid (the car is Euro 6D final-compliant, for instance) which include freedom of access and movement in city centres, cheaper parking and tax breaks, depending on local regulations.

Sustainable urban driving On the inside, the Launch Edition seats are the first in the automotive sector to be partly made with SEAQUALÂŽ YARN, derived from recycled plastic, 10% of which originates from the sea and 90% from land. Fiat is collaborating with SEAQUAL INITIATIVE to support ocean clean-ups to take action against marine litter.

More info

www.fiat.com/fiat-hybrid

www.fcacountryfinder.com/jeep.html

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JEEP SAILS INTO THE FUTURE WITH PLUG-IN HYBRIDS Ever faithful to its adventurous history of taking new paths and breaking down barriers, the Jeep brand is set to sail into the future of mobility with an electric evolution of its award-winning SUVs. The new Jeep Renegade and Jeep Compass 4xe vehicles are the first Jeep models with plug-in hybrid technology available in the EMEA region. extraordinary driving pleasure: acceleration from 0 to 100km/h in about seven seconds, CO2 emissions lower than 50g/km (NEDC2) and a maximum speed of 130km/h in electric mode only, which reaches 200km/h in hybrid mode.

Exclusive equipment and features

The exclusive First Edition models, full of equipment and features, represent the first steps in Europe along a pathway of uncompromising electrification. A no-compromise hybrid solution that integrates the unmatched technical layout of each Jeep SUV, turning Jeep Renegade and Jeep Compass into vehicles that provide absolute freedom while taking their capability to the next level through some of the most advanced technologies combining enhanced performance (up to 240hp), improved safety (4x4 is always available) and low environmental impact (up to 50km of range in pure electric mode and less than 50g/km of CO2 in hybrid mode).

First Edition Customers in major European markets (Italy, Spain, Germany, France, the UK, the Netherlands, Belgium and Austria) will be the first to discover the First Edition at the dedicated web portal. The First Edition limited edition model will be available on Renegade and Compass 4xe vehicles to customers who declare their interest by 9 March through the dedicated local web platform.

The First Edition will be offered in two different configurations (depending on the market) based on the top-of-therange trims: Urban, based on the S trim and Off-road, based on the Trailhawk trim. In both configurations, the exclusive First Edition launch model will include comprehensive technological and driving assistance features as standard, along with a full package of home and public recharging solutions.

Extraordinary driving pleasure Overall, the power is 240hp, with an increase in torque output up to 50% (compared to the diesel Trailhawk with 170hp), resulting from the combination between the 1.3-litre turbo petrol engine with an automatic gearbox driving the front axle, and the electric engine running the rear wheels. The electric unit is powered by a battery which is rechargeable while driving or while parked at home (using a domestic charging unit) or at a public charger. The combination of international combustion engine and the electric unit guarantee performance and

Increased charging speed The Jeep Renegade and Compass 4xe First Edition models will include a 5-year vehicle and an 8-year battery warranty and will be available in a specific launch pack including home charging solutions via the Hybrid Wallbox. This will provide owners with a plug & play solution, including charging power up to 3kW and a 3.5-hour charging time. This solution will also offer the chance to increase charging speed and reduce the time to 100 minutes by upgrading charging power to 7.4kW while maintaining the same hardware. All PHEV models will arrive in Jeep showrooms early next summer.

FLEET EUROPE #114

The new Jeep Renegade and Jeep Compass 4xe are the first Jeep models with plug-in hybrid technology

The new Jeep Renegade and Compass First Edition vehicles will carry the new Jeep 4xe badge which will distinguish all the electrified models of the Jeep brand. The 4xe will also have specific features and design elements, including high-visibility headlights (full LED on Renegade, Bi-Xenon on Compass), Uconnect NAV with 8.4â&#x20AC;? touch screen, smartphone integration and advanced on-board connectivity. The vehicles also boast a wide range of safety equipment like blind spot, rear camera, park assist, parking sensors and much more.

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CONCEDED EDITORIAL SPACE

TITRE1

10 TITRE2 Intro

Texte

STEPS TO ELECTRIFY YOUR FLEET Jonathan Manning

FLEET EUROPE #114

The transition to zero emission vehicles demands a fundamental review of fleet policies, covering vehicle choice, funding method and driver commitment to the new power sources.

Different drivers may need a different timeframe to go electric.

“If you have a robust company car policy it’s easier to introduce different fuels,” said Chris Chandler, principal consultant, Lex Autolease, the UK’s largest leasing company with 360,000 vehicles. “But if you have a weak or unclear policy you need to do a complete review now.”

Chris Chandler, Lex Autolease: “If you have a weak or unclear policy you need to do a complete review now.”

He recommends that policies remain open, specifying the right vehicle, technology and fuel for the right application. This may mean a different timeframe for drivers to switch to electric power. “In the senior grades you can offer people a Tesla or a Jaguar iPace with a long range, but as you come down to lower grades there are very few vehicles available for less than £35,000 (€39,000) capable of a long range,” said Chandler. Another area for employers to consider is giving drivers the chance to pay extra to upgrade their company car if they go electric, investing some of their benefit-in-kind tax savings to fund a more expensive car. Advancing vehicle ordering dates so drivers choose their next car six or even nine months before the end of their current car’s contract can also help to overcome delays in availability.

should fleets fund electric 2 How vehicles?

There is no hard and fast rule about whether it is more cost effective to buy or lease alternatively fuelled vehicles. Different countries operate different accounting rules for writing down low and zero-emission vehicles. Moreover, the pessimistic residual value forecasts which undermined the lease rates of the first generation of electric and plug-in hybrid (PHEV) cars are improving rapidly as leasing companies become much more confident in the demand for used EVs. “However, one area that fleets should explore is the holding period of their vehicles,” said David Bushnell, principal consultant, Alphabet. As battery performance develops, fleets should look to shorter holding periods to take advantage of new technology earlier and to avoid trying to sell old technology into the used market.

“Above all, fleets have to start looking at wholelife costs, if they are not already, so that they can see how lower fuel costs and lower tax bills can offset slightly higher rental rates for EVs and PHEVs,” said Bushnell.

do fleets choose between 3 How different power options?

For EVs and PHEVs to make both environmental and economic sense, drivers must be able to accommodate a chargepoint at their home – relying on public chargers is too uncertain in most cases, said Bushnell. In general, PHEVs make financial sense when the ratio of the power used for their journeys is at least 50% battery, he added. The more journeys undertaken with petrol power, the less economic PHEVs become, especially when compared to diesel. “Most new pure EVs can do 150 to 200 miles (240km to 320km) on a full recharge, which is more than enough for most daily commutes and business use,” said Bushnell.

can fleets identify which 4 How fuel is most appropriate for which vehicles?

Fleets with telematics systems can use the data to monitor journey distances, routes and dwell times, providing valuable information about the range required from any pure electric vehicles as well as recharging opportunities. Geotab’s Electric Vehicle Suitability Assessment tool (EVSA) analyses which vehicles are a good fit for electrification and suggests suitable EV replacement models. Edward Kulperger, Executive Vice President, Geotab, said: “Fleet managers must identify which EV models best match their range requirements while also accommodating for local weather and road conditions, changes to driver behaviour, and the effects on their operational budget.”

do fleets identify the 5 How optimum fuel without access to telematics?

“Fuel purchase and mileage data provide a rich source of information for analysing the optimum source of power for individual drivers and vehicles,” said

FLEET EUROPE #114

will fleet policies have to 1 How be revised?

NEW ENERGIES

Paul Hollick, managing director of fuel management specialist, TMC. “We work with customers to match powertrain choices to individual drivers based on their actual typical journey profiles, their existing real-world fuel usage and cost, and their current vehicle – its fuel type, CO2 emissions, tax liability,” he said. “This allows us to produce detailed and accurate profiles for each individual driver (or vehicle), which even take into account factors like road types, times of day and regional variations in fuel prices. From these we create a recommendation that best fits each user’s requirements and which has the best fit environmentally as well as financially.”

How important is geography? Can electric vehicles operate across a range of European temperatures? Norway may lead the uptake of electric vehicles in Europe, but Scandinavian winters can still have an impact on battery performance. Last year the American Automobile Association tested five electric cars (BMW i3, Chevrolet Bolt, Nissan Leaf, Tesla Model S and Volkswagen e-Golf) and found that on average, an ambient temperature of -6.7°C (20°F) led to a 12% decline in combined driving range compared to an ambient temperature of 24°C (75°F). However, when the cars’ heating was turned on, range plummeted by an average of 44% at -6.7°C. Hot weather was almost as challenging; with the air conditioning engaged at 24°C, range fell by 39%.

FLEET EUROPE #114

do fleets choose a public 7 How charging network?

The number of public chargepoints rises every week, reducing the risk of drivers ever finding themselves stranded with no power in their vehicles’ batteries. Among the biggest networks of chargers are Chargemap, NewMotion and PlugSurfing, but local and national operators may offer more comprehensive solutions depending on vehicle locations. In some countries, government legislation is forcing all new chargepoints to accept credit cards, such as Visa and

David Bushnell, Alphabet (GB) Limited: “Lower fuel costs and lower tax bills can offset slightly higher rental rates for EVs and PHEVs.” Mastercard, which will open up access for all users. There is also a growing trend for alliances between manufacturers and chargepoint providers to deliver a complete solution to customers. In Germany, for example, both MercedesBenz and Volvo have formed partnerships with NewMotion both to offer the installation of home and workplace chargers, as well as giving customers access to NewMotion’s public charging network.

Should drivers contribute to the cost of a home charger?

“Yes,” said Alphabet’s David Bushnell. “Home chargepoints are generally installed at the employee’s cost. Not only do they benefit from the benefitin-kind tax savings of driving an EV, but PHEV drivers are also more likely to see the value in it and charge their cars if they have contributed to the cost.” There are abundant rumours about PHEV drivers not bothering to charge their cars for such short battery ranges, but this massively increases fuel costs. Setting a reimbursement rate that is two or three cents per kilometre lower than a petrol or diesel car will encourage drivers to plug in their cars. Plus, a home charger adds value to the property.

should fleets reimburse 9 How business mileage?

Use a fixed mileage rate for both EVs and PHEVs to avoid the complications of disentangling home, workplace and

public charging costs, and to ensure that PHEV drivers actually charge their cars.

do fleets help drivers to 10 How maximise the efficiency of electric vehicles?

The instant power delivery from electric motors makes battery-powered cars among the fasted accelerators on the road. Resisting the temptation to join traffic lights drag races will not only improve driver safety but also extend battery range. International driver training specialist DriveTech has developed a range of courses to give drivers a deeper understanding of the unique operation, maintenance and driving strategies required to maximise the safety and efficiency of EVs and PHEVs. Drivers learn how to extend the zero-emission range of their vehicles, the benefits of pre-heating or pre-cooling, and also gain an insight into the risks posed by silent vehicles to cyclists, pedestrians and horse riders. Colin Paterson, head of marketing at DriveTech, said: “Knowledge of electric vehicle eco-features is essential, along with understanding and making use of instruments, display of energy consumption, re-generation state of charge, and distance-to-empty. Other key aspects regarding driving EVs include how and when to use ‘B’ mode, eco-mode or eco-plus, together with basic planning skills to keep the vehicle moving and taking every opportunity for the regenerative system to charge the battery.”

www.kia.com

Niro has never been so trendy.

available as

electric

hybrid

plug-in hybrid

Introducing the new Kia Niro family. Available as electric, hybrid and plug-in hybrid. It’s time to update the way you drive. The new Kia Niro family has a redesigned new look and comes with three engine options: full electric, hybrid and plug-in hybrid. But that’s not all. Add to that an extra-spacious interior and a 7-year warranty, and you’ll find plenty of reasons to say that there’s nothing like a Niro.

*Max. 150,000 km vehicle warranty. Valid in all EU member states (plus Norway, Switzerland, Iceland and Gibraltar). Deviations according to the valid guarantee conditions, e.g. for paint and equipment, subject to local terms and conditions. The WLTP combined cycle range for the e-Niro is 455 kilometres (282 miles) for the long-range 64 kWh battery pack, and 289 kilometres (179 miles) for the standard (39.2 kWh) battery pack. The specified driving range values were determined according to the legally prescribed measurement procedures (EU) 2017/1153. The above values have been tested in the new WLTP, Worldwide Harmonized Light vehicle Test Procedure, test cycle and converted back to NEDC, New European Driving Cycle, in addition measured according to the RDE, Real Driving Emissions method.

NEW ENERGIES

“DIFFERENTIATING BETWEEN DRIVERS ADDS CHALLENGES” Benjamin Uyttebroeck

@uytteb

At a time when everyone is talking about greening corporate fleets, Andy Leeden, Global Fleet Category Manager at AstraZeneca, proved to go the extra mile, taking home the 2019 European Green Fleet Manager of the Year award at the Fleet Europe Summit in Estoril.

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Selecting the right car used to be quite simple but it has become a lot more complex. How do you manage that in practice? “It is indeed more complicated. When we started the Green Fleet project two years ago, one of the things we saw early on was that hybrid was a bridge to electrification because it got around many of the challenges: charging infrastructure, range anxiety, affordability and so on. At the same time, it introduced people to the concept of a vehicle that ran partly on electricity.” “Going forward, now that full batteryelectric and plug-in hybrid vehicles

are much more widely available, we now have to do a much more detailed analysis of the driver profile and the usage pattern before we select the vehicle type.”

“This is a challenge we’re working on with our HR colleagues but it’s clearly a change from where we’ve been in the past where everyone was treated the same.”

“This adds new challenges to the process. If you look at how car lists and benefits are generally structured, a certain grade level gets you a certain level of car. If we are going to really optimise our fleet and use the appropriate fuel type for the correct driver profile and usage profile, then suddenly you’re going to differentiate between drivers who have the same grade level but who have different situations.”

You aim to have 100% of your fleet electrified in Europe, North America and Japan by 2025. Will you get there?

“When we initially talked about an electrified fleet, we included any vehicle that has some sort of electric propulsion. So, we included hybrid within that for our 2025 target. At the end of 2019, we had 33% of our fleet in those regions that was electrified and

Andy LEEDEN Role

Global Fleet Category Manager

Company AstraZeneca

Sector

Pharmaceuticals

Responsible for 17,988 vehicles worldwide (6,200 in Europe)

a high degree of confidence in meeting that objective. However, since we set that target we have brought forward our plans to switch to full electric by 2025 as part of our Ambition Zero Carbon strategy, announced on 22nd January.” “After setting our initial 2025 target, AstraZeneca joined the EV100 initiative and we were always looking at reaching our EV100 fully electric fleet target sooner than 2030.”

Do you get enough support from leasing companies in analysing driver profiles and analysing the market? “At a high level, the leasing companies can give you general analyses of what vehicle types suit driver profiles but what’s lacking at the moment is the detailed analytics which give you some certainty.” “I think the whole leasing industry is still very much centred around traditional contract priorities like age and mileage and not really looking at the daily driving profile of a driver and their individual journey types and the type

of driving they’re doing, whether it’s mainly urban, rural or motorway.”

Why is it important to get senior leadership on board when greening your fleet? “Some will embrace electrification, others find it daunting how they will have to change the way they drive and their lifestyle to accommodate this. I think it’s very important to have senior leadership support for this type of initiative. It is clear from our Ambition Zero Carbon strategy that top leadership is fully committed to change and that sustainability is a priority for AstraZeneca. We have just had to demonstrate how greening our fleet would support our sustainability objectives and how we could do it in a way that wasn’t going to impact the business and our employees.” “Early on in this process, we said that any management vehicle renewal must be a green vehicle. It was important to show leadership from benefit fleet supporting colleagues in job need fleet.” “I personally purchased an electric vehicle at the beginning of last year and for me, it was important that I really understood the whole environment and user experience of electric vehicles. I really enjoy driving it and I don’t think I’ll ever go back to an ICE vehicle as a daily driver.”

+70% of 2019 deliveries in EU were alternative fuelled cars with average 95g/km

“FOLLOW ANDY’S LEED!” For Kia Motors Europe, the European Green Fleet Manager of the Year award is the most relevant one to sponsor. Says Marc Howlett, Fleet Sales Manager: “Greening the fleet is very much high on the agenda for all large fleets, particularly over the last 18 to 24 months. It’s also high up on the agenda of the OEMs, as we have to hit our CO2 targets for 2020, which will get even tougher for 2021.” He continued: “Andy’s application was impressive. Not only are his orders and procurement focused on alternative powertrains, he also has a number of very inspiring internal PR activities to engage drivers and get their feedback.” Mark Howlett has a word of advice for companies that are yet to electrify their fleet: “Just test the technology, gather real-world TCO data and realworld driving experiences. That way, you will see there are numerous benefits to going electric. So, follow Andy’s leed and experiment with this new technology!”

sponsored by

Andy Leeden is a native of South East England, where he lives with his wife and two sons. He enjoys motorsport, walking and cycling. One of his biggest passions is classic cars. “That may sound counterintuitive when I’m pursuing a Zero Carbon company fleet,” he said. “I own a 1972 Triumph Stag, with a V8 petrol engine which I enjoy driving and tinkering with. My justification is that at almost 48 years old its total carbon emissions impact is minimal as the initial manufacturing emissions have been spread over such a long period and the annual mileage is very low…”

Spread over its full lifecycle, this 1972 Triumph Stag has minimal carbon emission.

FLEET EUROPE #114

ANOTHER KIND OF SUSTAINABLE

NEW ENERGIES

INFRASTRUCTURE, THE OBSTACLE TO EV-READINESS Frank Jacobs

After years of slow progress, e-mobility will go big in 2020. That’s what we’re told. But will Europe really make the switch? Time for a reality check. Yes, OEMs are churning out EV models. But the infrastructure isn’t ready. Here’s what needs to be done. This is the year when push comes to shove. In order to comply with the EU’s CO2 regulations, OEMs must sell 5% EVs this year, close to 10% in 2021 and close to 20% in 2025 – or face huge fines.

200 EV models The auto industry is complying: this year, dozens and dozens of BEVs (battery-electric vehicles, i.e. full-electrics) and PHEVs (plug-in hybrid electric vehicles, with both an electric motor and a fossil-fuel engine) come onto the market; by 2021, Europeans will be able to choose between more than 200 EV models. And by 2025, European car factories will produce an estimated 4 million EVs per year. The question is: Will the market follow? Electrification depends on more than just the availability of the EVs. The EV charging infrastructure must follow. And that will require an equally large push. However, it seems nobody is pushing hard enough at the moment. That, in so many words, is the opinion of Transport & Environment, the EU-wide umbrella for NGOs promoting sustainable transport has examined the current state of affairs of public charging infrastructure across the continent – and points to the way forward.

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Assurance of continuity Sufficient public charging is essential: as electrification increases, the number of EV drivers with access to home charging will decrease (from 61% in 2020 to 45% in 2030). Workplace charging will pick up some of the slack (15% to 24%), but public charging,

essential for offering EV drivers the assurance of continuity, will grow from 24% to 31%. At the end of 2019, there were about 175,000 public charging points across the EU. But of course, not every charger is the same. T&E’s study distinguished between four types:

If current growth rates persist, there will be around 200,000 public EV charge points in the EU by the end of 2020, for 2.1 million EVs on the road. That’s about 11 EVs per charging point. Right here is where the alarm bells should start sounding. If nothing is done, 2020 could go down as the year the lack of infrastructure killed of the electric mobility revolution.

• Single-phase AC chargers (3-7 kW) Delivering a full charge in 7 to 16 hours, these ‘slow’ chargers represented 33% of the total.

What does the future hold? T&E’s study paints two likely scenarios:

• Tri-phase AC chargers (11-22 kW) Constituting the bulk (61%) of public chargers, these ‘rapid’ chargers get you a full charge in 2 to 4 hours.

• ‘Normal’ EV growth: Following current EU targets, OEMs must reduce CO2 emissions by 15% in 2025 and by 37.5% in 2030. For this, EV sales must go up significantly, to 19% by 2025 and 33% by 2030.

• ‘Fast’ DC chargers (50-100 kW) Fully charging your EV in just 30 to 40 minutes, these are about 4% of the total, in all about 9,000 units. • ‘Ultra-fast’ DC chargers (>100 kW) Fastest charge (10 to 20 minutes), smallest segment (0.5%, about 640 units). Expected to surge to 8,000 units in the next few years.

Relative oversupply Since the end of 2017, the number of charging points in the EU has grown by 32%. However, over the same period, the number of EVs on the road increased by 89% (to 1.3 million – with the shares of BEVs and PHEVs roughly even). That means the number of EVs per public charging point has gone up from 5 to 7. In general, one charging point per 10 EVs is considered sufficient, so we’re still in a situation of relative ‘oversupply’.

• Accelerated EV growth: In the spirit of the Paris Agreement, the EU aims for zero-emission road transport by 2050. That means zero-emission vehicles must represent 40% of sales by 2030.

Factor 12 or 16 In both scenarios, EV sales are at 5% this year and 10% the next. In the first scenario, there will be 13 million EVs in the EU by 2025, which will require 1.2 million public EV charge points. By 2030, there will be 33 million EVs, requiring 2.2 million public charge points.

Year 2021 More than 200 EV models in EU

The current growth rate for charging infrastructure needs to go up substantially.

‘Business as usual’ is not enough to reach those levels, says T&E. The investment necessary to upgrade public charging infrastructure to the recommended level between now and 2030 comes to €20 billion. Upgrading private charging infrastructure will require another €60 billion. That sounds like a lot, but €80 billion over 10 years is small beer, considering the €100 billion the EU invests in transport infrastructure every year.

Diverse picture But also, regulation must catch up. The EU’s Alternative Fuels Infrastructure Directive (AFID) dates from 2014 and is no longer fit for purpose. AFID required EU members to draw up National Policy Frameworks (NFPs) for alternative-fuel targets by 2020 and 2025.

Those NFPs show great variations in emphasis and ambition. Only 10 EU members focused on EV charging infrastructure – Italy and the Czech Republic prioritised natural gas – while others lacked ambition, or the tools to assess progress. The result is a highly diverse picture across the EU. In countries like Finland, Sweden, Cyprus and Greece, the EV to public charger rate is well above 10. In the Netherlands – which has a lot of EVs, but also a lot of public chargers – the ratio is 4.

in the EU’s road network, especially in the east and south, and to upgrading urban grids to faster charging speeds. EV charging should become a flagship project of the coming European Green Deal, the study suggests. As the backbone of the coming EV ecosystem, it could help generate up to 200,000 new jobs by 2030, not to mention revenue for public authorities. If so, and electrification will prove to be a success, 2020 will truly have been a pivotal year in automotive history.

European Regulation Some countries (Norway, Sweden and Poland, among others) rely a lot on fast chargers (>25%). Others (Belgium, the Netherlands, Hungary) rely heavily on ‘rapid’ chargers (>85%). Some (the UK and Spain) have mostly (>50%) ‘slow’ chargers. What’s needed is a full-fledged European Regulation on EV charging, T&E argues. One that can actually impose targets on EU member states, creating a harmonised playing field – which is not the same as a homogenous one. Special attention should go to eliminating EV-charging gaps

175,000

Public charging points in EU

FLEET EUROPE #114

In the second scenario, there will be 14 million EVs in 2025, requiring 1.3 million public chargers. By 2020, the number will have diverged to 44 million EVs, which will need 2.9 million public chargers. In other words: compared to today, the number of public charge points needs to increase by a factor of 6 or 7 by 2025, and by a factor 12 or 16 by 2030.

NEW ENERGIES

FUEL COMPANIES CLEAN UP THEIR ACT Alison Pittaway

The top market-listed fuel companies have so far focused on the production, refining and distribution of oil and gas products. With concern over global warming on the rise, yet the demand for fossil fuels still prevalent, are they truly committed to a clean future?

Oil companies like Shell are building infrastructure for hydrogen as a transport fuel in North America and Europe. Companies like BP, Shell and others have been accused of dragging their heals on climate change, spending millions on lobbying to block climate change policy and not doing enough to invest in clean energy.

FLEET EUROPE #114

Accused of blocking action against climate change Writing in the UK’s Guardian newspaper, environmental journalist Sandra Laville cited a report that holds the top five oil companies responsible for supporting action against climate change by spending nearly $200 million (€179 million) a year lobbying to delay, control or block policies to tackle climate change.

However, the other side of the argument is that it’s hard to imagine any business changing overnight when the majority of their customers still rely on their core products.

Ending fossil fuel production cannot happen quickly Maarten Wetselaar, Shell Integrated Gas & New Energies Director, argues that the future of transport will show a balance between different fuels, traditional and new, depending on customers’ needs and local availability. Speaking at global energy market conference CERAWeek in Houston, Texas, he said: “The challenge for

electric battery cars is that they are not yet as user-friendly as those with internal combustion engines. The world needs many different energy solutions if it wants to meet the goal of the Paris Agreement.”

Record number of clean energy deals According to a Bloomberg report, major oil companies are poised to do a record number of clean-energy deals, with Shell leading a group of European firms well ahead of their US rivals. European majors have closed seven times as many deals with renewable-electricity and storage companies as their US counterparts since 2010.

Alongside investing in EV charging infrastructure in the USA, with the acquisition of Greenslots in January 2019, Shell is also putting money into other fuels for transport, such as its joint venture in Brazil, which produces one of the lowest-carbon biofuels available and is developing advanced biofuels from waste.

Investment in hydrogen fuel The company is also helping to build the infrastructure for hydrogen to grow as a transport fuel in California, Canada and Europe. States Mr Wetselaar: “It will take time before they [alternative fuels] can gain enough of a share of the market to substantially reduce emissions from transport. Time the world, quite frankly, does not have. Carbon dioxide emissions need to fall sharply. Not starting in 2040, when there could be 280 million electric cars on the roads, but from 2020.”

A lot of effort still required In an article posted on LinkedIn earlier this month, Dr Vijay Swarup, VP of Research and Development at ExxonMobil, which gets around 15% of its net oil and natural gas production from its European operations, stated: “ExxonMobil’s annual Energy Outlook discusses how the world is still off track to meet certain climate goals without a lot of additional effort.” “That further work means continued technology innovation. We have to keep finding and inventing solutions to the myriad of individual problems posed by the dual challenge. These different efforts – both within and outside our own research labs – are all essential to moving us forward.”

Emissions come from the burning of oil, not the production.

Talking about the scale of what’s required to reduce carbon emissions and fight climate change, while addressing the growing global demand for more energy (what he refers to as the “Dual Challenge”), he said: “Not only are the sizes we are talking about so big they are sometimes unfathomable, but we must deploy solutions globally AND across countless end uses. It’s not one equation with one unknown, but multiple equations with multiple unknowns.”

Fuel companies entering utilities market In preparation for the “forecourt of the future”, in the past few years an increasing number of international oil companies – especially those headquartered in Europe – have entered the utilities market to target growth opportunities and are heavily investing in renewable energy in Europe and the USA.

Shell has invested in offshore wind near the Netherlands, acquired First Utility in the UK and entered the US and Asian solar power market generation through EV vehicle charging and battery technology. Moving into utilities means these companies can cut their overall carbon intensity by tapping into renewables to offset the downturn for demand for fossil-based products, while also keeping a firm hand on fossil fuels that continue to dominate their markets. It positions them at an advantage to capitalise on the EV charging market. They already have the forecourt infrastructure in place, now they have the energy to supply those charging stations.

FLEET EUROPE #114

Highlighting the fact that the vast majority of the emissions associated with a barrel of oil, roughly 80%, come when it’s burned in the engine, not from its production, he went on to say: “So yes, I believe it is right to invest in cleaner fuels that can start to have a positive impact on reducing emissions in the 2020s and 2030s. But we must also focus on the transport fuels that nearly all of the 7.5 billion people on earth use today. Fuel, car and policy-makers, we should all continue to improve the efficiency of internal combustion engines.”

NEW ENERGIES

WHO WILL WIN THE EV CHARGING BATTLE? Alison Pittaway

Larger convenience-ready forecourts are already suited to EV charging.

EV charging seems a straightforward solution to provide, but it’s fraught with challenges so it’s difficult to predict which suppliers will win out. Although not growing fast enough, an increasing quantity of vehicles with non-standard charging plugs needs to be catered for. An expanding number of requirements for charging in different places at different times, must be taken into account. New types of supplier are emerging to deliver forecourt charging, local chargepoints, home and work (off-peak) charging, AC and fast DC charging. And new technologies, such as wireless charging, are about to further disrupt an already incoherent melting pot.

Additional revenue for oil companies Fuel company and forecourt owner Total sees EV charging as an additional revenue stream rather than competition. It owns ChargePoint, which is a fully interoperable, peerto-peer roaming solution with charging stations designed for integrated contactless payments and ease of use.

The forecourt of the future Kevin Pugh, UK and Ireland business development manager at rapid charging specialist Tritium, is of the opinion that there are many years of transition for fuel-station forecourts ahead: “The larger convenience-ready forecourts, with retail and café offerings, are already perfectly suited to EV charging and en-route high-power charging, as are motorway service stations.”

Electrified roads Noam Ilan, VP business development at wireless charging solution provider

Electreon, explains what’s behind the concept of electric roads: “Electric Road technology is based on a high frequency air core transformer. The initial component is an inductive stripe installed 8-10cm beneath the asphalt. The secondary component is called the receiver and is connected to the vehicle’s engine and battery.”

Tyre manufacturers (and others) stepping in to charge EVs Oil companies are also competing with tyre and consumer electronics manufacturers who are developing wireless charging solutions. The European region is expected to hold the largest market share in this sector. Leading players include Bosch, Continental and HELLA. There are still few EVs on the roads throughout Europe. That being the case, the race to dominate EV charging is open. As to who has the stamina to go the distance, only time will tell.

A growing need for standardisation

FLEET EUROPE #114

Experts believe delivery partnerships between governments and charging point providers are a necessary part of a green future. But they also believe important elements in the charging infrastructure must be standardised first. In BP’s view, the widespread introduction of ultra-fast charging would replicate the experience consumers have today – a convenient and efficient forecourt experience. With this in mind, BP Chargemaster is already rolling out ultra-fast chargers to locations across the UK’s retail network.

There’s a growing need for standardisation in EV charging.

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NEW ENERGIES

DIESEL IS DEAD, LONG LIVE DIESEL Mark Sutcliffe

Rumours about the death of diesel have been grossly exaggerated. The introduction of the new RDE2 emissions standard and absolute limitations on battery range mean it will remain an important part of the fuel mix until at least 2030.

DECLINE OF EU DIESEL SALES 2019 Fuel types of new cars: petrol +6.1%, diesel -14.1%, electric +51.8% in third quarter of 2019

TOTAL APV 11.3%

DIESEL 29.1%

The European market for electric vehicles will overtake the booming Chinese market next year, according to Bloomberg New Energy Finance.

FLEET EUROPE #114

ECV 3.1%

PETROL 59.5%

ECV: electrically chargeable vehicle HEV: hybrid electric vehicle

APV other than electric 1.9% Source: ACEA

Most of the major European car manufacturers are reducing R&D investment in diesel powertrains and late last year, PSA chief executive Carlos Tavares told the Financial Times that diesel was dead.

the reality is that – at least outside major cities – it’s going to take at least a decade to convert 100 million diesel cars, 30 million vans and six million heavy trucks to zero-emission powertrains.

And yet despite all the hype about EVs, they will still only account for less than 5% of the overall new car market next year – meaning around 5 million new diesel cars will join the European fleet of circa 100 million diesel cars.

City bans

In some EU markets, the migration away from diesel to petrol (and a taste for less efficient SUVs) has seen increases in average CO2 emissions – a worrying outcome as the continent struggles to make progress towards its Paris Climate Change Accord obligations.

London’s Low Emissions Zone significantly reduced congestion and emissions in the UK capital and Brussels, Paris, Madrid and more than 20 other major European cities are set to follow this lead by subjecting older diesels to charges and access restrictions.

As cities and states begin to prioritise local air quality concerns over cutting carbon emissions, the future for diesel cars and vans looks uncertain, but

HEV 6.3%

APV: alternative powered vehicle

The electrification of Europe’s car, van and truck fleet will begin in the cities of Western Europe where local government and city mayors are already preparing to impose tighter restrictions on diesel cars and vans.

But the reality of the situation beyond the big cities is that diesel will remain the preferred fuel for long distance journeys across the continent in the medium term.

Central and Eastern Europe As ACEA points out, while sales of EVs are growing rapidly in markets such as Germany and the Netherlands, uptake is very uneven across the wider continent: “An ECV market share of more than 1.5% is something that is exclusive to Western European countries. The uptake of electrically-chargeable cars is correlated to a country’s standard of living, with half of all EU member states having a market share lower than 1%. Consumer uptake of electrically-chargeable cars is particularly low in Central and Eastern Europe, with Poland for instance selling hardly any (0.2% of total passenger car sales).” The European Commission has introduced more stringent ‘real world’ RDE emissions standards, which were further tightened at the beginning of this year with the introduction of the new Euro 6d standard. Vehicles that were type-approved under the previous standards (Euro 6d-Temp or Euro 6c) will have to be retested in order to be sold from January 2021.

Emission spikes

CITIES PLACING GREATER RESTRICTIONS ON DIESELS

According to ACEA, the car manufacturers and the petrochemical industry, the latest generation of diesels are clean enough to operate safely in cities while continuing to produce far lower CO2 emissions than petrol cars.

BIRMINGHAM

GHENT

However, there is still some debate over the validity of the ‘wiggle room’ built into the Euro 6d standard – which was subject to a legal battle between some cities who want to restrict access to Euro 6 diesels and the European Commission.

BRUSSELS

PARIS

More recently, environmental pressure group Transport & Environment commissioned independent tests which suggested Euro 6 diesels particulate emissions spiked at much higher levels than those permitted by Euro 6d. The spikes were caused by the engines running a 30-45 minute cleaning programme to unclog their particulate filters. However, the 6d emissions limit does not apply while a vehicle is cleaning its filters.

No long-term solution Environmentalists remain unconvinced that diesel is the long-term solution to

BONN

STUTTGART

GENOA BILBAO BARCELONA

MADRID

ROME

Source: kfzteile24

the urban air quality crisis, but they also concede that more petrol cars aren’t the answer. Electrification – especially in urban areas – is part of the solution, but the wholesale adoption of EVs across Europe is unlikely to be complete before 2030 – and most likely longer.

DIESELS ACCOUNT FOR A SMALLER SHARE OF TOTAL SALES IN MOST KEY SEGMENTS

Small

COLOGNE

2015

2016

2017

2018

25%

21%

19%

14% 29%

Small SUV

52%

47%

38%

Compact

53%

48%

43%

33%

Compact Premium

63%

59%

53%

42%

Compact SUV

73%

68%

55%

44%

Premium Compact SUV

81%

79%

73%

62%

Midsize

86%

82%

75%

65%

Midsize Premium

78%

74%

66%

56%

Midsize SUV

77%

78%

74%

69%

Premium Midsize SUV

89%

87%

78%

66%

Large Premium

83%

84%

76%

68%

Premium Large SUV

87%

79%

75%

70%

Source: JATO Dynamics 27

This is not due to government or the OEMs ‘dragging their heels’ – the limiting factors owe more to a lack of charging infrastructure and global availability of the latest battery technology. Over the next five years, production of EVs in Europe will triple – a much more pronounced shift than the migration from petrol to diesel prompted by government-sanctioned tax breaks in the late 1990s.

No alternative But in the meantime, millions of company car drivers, delivery vans and heavy trucks will have no alternative but to continue to use diesel to get from A to B every day. And in the absence of a developed used market for EVs, millions more private motorists will remain eager to buy fuel-efficient diesel cars on the used market. Increasingly, they will encounter restrictions and increased costs for driving into cities – especially during peak hours – but rather than falling over a cliff edge, diesel will still be with us at the end of the decade.

FLEET EUROPE #114

While all the cars tested remained within Euro 6d limits for NOx, Transport & Environment said the new European Commission should also use its new powers to require type-approval authorities to check cars on the road, after they have been sold – as the US Environmental Protection Agency does.

HAMBURG BERLIN

LONDON

NEW ENERGIES

IKEA TAKES CUSTOMERS ON A CARBON-NEUTRAL RIDE Mark Sutcliffe

IKEA has already made impressive progress towards decarbonising its delivery operations by moving towards a target of 100% electrification of last mile deliveries. Now head of sustainable mobility Angela Hultberg has set her sights on more ambitious targets for both employees and customers.

“In 2019 we doubled the volume of last mile deliveries made by electric vehicle, which is in line with our expectations. We are now using electric vehicles to make deliveries in 14 markets and we are keen to accelerate the pace of change.” “What we’ve learned is that bringing the first few electric vehicles on board is the hardest part, but once you’ve done that and worked out your charging requirements, it becomes easier to bring more vehicles onto the fleet.”

IKEA • Employees: 211,000 • Operations: 276 wholly owned stores in 25 countries, 37 franchised stores in 13 countries • Fleet size: 9,000 vans and trucks operated by delivery partners like DHL, UPS and PostNord

100% electric

FLEET EUROPE #114

“We’ve gone 100% electric in Shanghai this year and we are looking forward to doing the same in Amsterdam this year. It’s been easier to achieve 100% electric deliveries in China because you have a lot more EV manufacturers and it’s a pretty mature market. In Shanghai, we started working with an EV sharing platform that allowed us to get access to vehicles and charging infrastructure much faster.” “In Europe, for IKEA, our electrification programme is as much about mitigating risks to our business as it is about being a responsible retailer. The increase in online sales is unlikely to reverse and with it come more vehicles, more pollution and more congestion, which simply isn’t a sustainable situation and we have to find ways to avoid that. That’s the main reason why we started moving in this direction.” “But as policy-makers begin to understand that things have to change,

For IKEA, it’s been easier to achieve 100% electric deliveries in China because it’s a very mature market. there is a business risk there as well. We think there will be more congestion charging zones and restrictions on vehicles entering city centres and we need to be ready for that.” But IKEA’s sustainable transport policies extend much further than furniture deliveries. “Electrification of last mile deliveries is only one of five goals we are currently focused on. We want to provide access to recharging stations at all our outlets for both customers and co-workers. Today, 82% of our stores worldwide have chargers and we want that to reach 100% by the end of 2020.”

Reduce business travel emissions “Looking at our own fleet, we work with third parties to deliver products, but we want to lead by example, so we are committed to making 100% of the vehicles we own electric by 2025.” “Business travel is actually quite a small part of our overall emissions, but we have 150,000 co-workers who need to get to work every day, so we are aiming to reduce relative emissions from co-worker travel by 50%. We also want to halve our customers’ emissions when visiting a store by 2030. Most of our stores are in out-of-town locations which people have to drive to and most have offices attached or very

“While our online sales continue to increase, millions of our customers still want to visit a store to see, touch and feel the products, so IKEA won’t be becoming an online-only retailer.” “But it might mean we move stores into city centres to make it easier for people to get to them without driving. For example, our new store in Greenwich near London is easy for customers to reach by bus and there is no co-worker parking onsite so we make it clear when we are interviewing potential co-workers that they will not be able to drive to work.” Angela Hultberg, head of sustainable mobility, IKEA: “Bringing the first few electric vehicles on board is the hardest part.”

“In Oslo, we provide shuttle buses for both co-workers and customers to reach the store and at my office in Malmö we also promote the use of electric scooters as an alternative to the 20-minute walk to the train station. Other stores offer cycle repair services to encourage co-workers to cycle to the store. We are testing the waters and trying many different ways to establish what works so we can then scale up.” “But it’s not just about the environment, it’s also about cost. For many families – including our co-workers – the cost of transport is one of their biggest outgoings. Increasingly, young people can’t afford or don’t want to own a car and 20% of our workforce is under the age of 24, so providing affordable solutions to getting to and from work becomes about recruitment and talent retention.”

We only travel if… nearby. So in terms of overall emissions, this is the big one and by addressing this, we will also be able to reduce our co-workers’ travel emissions.” “By understanding how to enable our workers to adopt more sustainable travel habits, we think we will be better placed to make it easier for our customers to do the same. It’s not about telling people how to live their lives, it’s about finding the solutions to people’s mobility problems and making them so affordable and convenient that it becomes a no brainer – why would you take your car to a store when there are much easier ways of getting there?”

Business travel does not account for a significant proportion of IKEA’s carbon footprint, but the company still managed to reduce business travel by 27% in 2019. “We’ve gone from a policy that says: “This is how we travel” to “We only travel if…” The attitude is now about “do you really need to go and if so, do you need to travel in pairs.” “We’ve moved a lot of meetings to virtual conferences and invested in the best video conferencing equipment and increased the number of virtual meetings by 11%. I think there is a direct

correlation between the increase in virtual meetings and the decrease in actual business travel and flights.” “There’s more to be done, but we’ve come quite a long way and awareness of the alternatives is growing. IKEA built a reputation for being cost-conscious from the very beginning and so we encourage co-workers to take the train instead of flying short-haul within Europe and to try to take public transport instead of taxis.”

No off-setting “IKEA is a very value-driven company and when we introduce new policies designed to reduce our carbon emissions, we start with the ‘why’ so that our co-workers understand how this will contribute to reducing our environmental impact. Once they understand the reasons, very few people will argue with these policies.” “We don’t use off-setting to reduce our carbon footprint – we want to reduce our actual emissions. In fact we want to be ‘climate positive’ by 2030 – so we are actually taking more carbon out of the atmosphere than we are producing. It’s about travelling less and finding better ways of working, so attempting to neutralise your carbon footprint is not for us.” “Transport and mobility is part of a bigger sustainability agenda that involves last mile, electro mobility, social responsibility and supply chain management and there is only so much IKEA can do on its own.” “For example, we can switch all our vehicles to electric power and install chargers at every store, but if the electricity to charge those vehicles is generated by coal-burning power stations, then there is still a carbon footprint.” “We’ve been on this journey for a while now and perhaps the most important lesson we have learned is that we need to find OEMs and service providers who are on the same page and work collaboratively with them to accelerate the pace of change towards sustainability and carbon neutrality.”

FLEET EUROPE #114

Not online-only

FINANCIAL MODELS

RETHINKING TCO FOR ELECTRIC VEHICLES Yves Helven

According to a part of the fleet expert community, it’s time to redefine the classic TCO model. Arguments in favour of revamping the old calculation are diverse: the transition from ownership to usership, impact of recyclable elements (batteries) in the automotive industry, volatility of residual values... Some even take into account elements that are external to the asset, such as the cost of congestion or the cost of sustainability. Buying an EV instead of an ICE simply in order to be able to use a vehicle on fast lanes or inside city centres might represent an additional cost indeed. The main question however is not so much the TC part of the calculation. It’s the O.

Linear Economies versus Circular Economies PWC’s “Road to Circularity” portraits in an excellent way the need for a different type of economy. It explains how, since the industrial revolution, industry and wealth-creation have operated in a “take-make-dispose” model, also called the “Linear Economy”. This involves extracting natural resources to make products that are used for a limited time and eventually discarded as waste. Here, the focus is on the product.

FLEET EUROPE #114

The rapid consumption of finite resources (wood, oil, …) and the foreseeable end of their availability, asks for an economy where raw materials can be reused, recycled or reinjected into production; this is the “Circular Economy.” Here, the focus is on the service. Translating both types of economy into the fleet sector, PWC gives the example of BlaBlaCar. This mobility provider allows people to book a seat in a car for a specific ride through social media: you might be traveling from Amsterdam to

Brussels and have 3 free seats in your car. BlaBlaCar makes these seats available to other people. More generically and by extrapolation, PWC is telling us that “usership” of some kind is preferred to “ownership”. Since EVs contain one important ingredient that is both heavy on natural resources and offers the possibility of recycling – its batteries – there’s perhaps a case to be made for EVs in a TCU model rather than a TCO model.

EVs and traditional TCO Research and venture capital firm LoupVentures published an old-school 5-year/75,000-mile TCO comparison between a Tesla Model 3, an Audi A5 and a Toyota Camry LE. It’s an update

Purchase Price

of their 2017 study, which received quite a bit of press at the time. To be noted: this is a US study and therefore all costs are local to the US and in USD.

TESLA MODEL 3

TOYOTA CAMRY LE

AUDI A5

44,200

38,900

24,600

Financing

2,765

468

3,180

Tax, Licence, Title

3,025

2,050

5,405

Insurance

5,640

6,060

8,080

Fuel/Electricity

2,250

8,140

9,910

Maintenance/Repairs

1,200

4,000

8,000

Total

53,780

45,336

78,775

Remarketing Value

18,988

8,905

18,564

Total

34,792

36,431

60,211

0.46

0.49

0.80

Cost per Mile

An old-school 5-year/75,000-mile TCO comparison by research and venture capital firm LoupVentures.

The US was shocked to see Tesla propose a 3-year lease on the Model 3 for a reasonable amount, without purchase option at the end of the contract.

European fleet managers who have done similar exercises via their preferred lease supplier, have come to different conclusions. RV settings for electric vehicles are – in general, there are exceptions – conservative at best. Leasing companies work different factors into their residuals, such as the risk of ageing tech, the low appetite of the markets where end-oflease cars are being sold and the lack of EV remarketing experience. In addition, let’s not forget that the banks who are funding leasing companies, have not forgotten about the thousands of unsold remarketing cars standing on car parks during the financial crisis a decade ago; leasing companies are urged to reduce RV risks to a maximum.

The right eco-model for EVs

Irrelevant in less than a decade

The US, where operational lease is much less popular than it is in Europe, was shocked to see Tesla propose a 3-year lease on the Model 3 for a reasonable amount (from $341 upwards for 3 years depending on the version, options and mileage), without purchase option at the end of the contract. An outrageous internet compared the deal with a car rental agreement.

Recycling natural resources or, in our case, parts of an electric vehicle, is undeniably the way forward and leads indirectly to new consumption models. TCU seems to fit electric vehicles better than traditional ownership.

Nevertheless, it is interesting to see that Tesla absolutely wants their vehicles returned to the factory at the end of the lease; it might be new to the US market, but it makes complete sense. Being able to recycle the vehicles and their batteries for things like the Powerwall product, has many advantages over applying a Linear Economy model to EVs.

In conjunction with the rising popularity of mobility solutions, all based on sharing the asset rather than allocating an asset to a single user plus the impact of congestion on the economy plus various city regulations making it more difficult for cars to enter, usership is gradually becoming a valid alternative. Whether EVs should be owned or used and how to calculate their ownership or usership cost, will be irrelevant in less than a decade. Autonomous vehicles will be the ultimate push towards usership and guess what? They’ll be electric.

FLEET EUROPE #114

Quod erat demonstrandum… These comparisons are extremely popular and have a tendency of proving that the Model 3 is the more economic car. The hiccup however is the RV.

SHARED MOBILITY

“DISREGARD ALL ESTABLISHED RULES” Benjamin Uyttebroeck

@uytteb

Embedded software company Qteal does things differently. It’s a company without managers or bosses, relying instead on employees’ capacity to self manage. They also self manage their mobility budgets, which is centred around a person’s mobility needs and not around cars.

Qteal founder Jan Van Lishout built his company around the concept of self-managed teams, explaining there are no managers or bosses. He made each employee responsible for their budgets, including their salary. “Of course that means there is full transparency about each employee’s salaries, including mine. It’s the same thing for mobility: it requires transparency.”

Disregard all rules

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“The first step in all we do is to disregard all established rules. Instead, we focus on how we can make our employees and our clients happy, which helps us focus on the quality and the value of the solutions we offer. As part of this approach, we give employees the means they need to deliver their services. The company car isn’t part of those means but making sure they are mobile is.”

were apprehensive that our carsharing strategy would make us order fewer cars. The opposite turned out to be the case: we have 18 cars for 16 employees as we needed a broader variety and this gives us an additional buffer.” Fleet size may not have been an issue, Qteal does work on getting mileage and fuel consumption down. “We achieve that through a very human phenomenon: it’s about money. Our employees get a mobility card with a monthly mobility package, say for €1,000. If we assume €600 is spent on the car, that leaves them with €400 to pay for all other mobility needs including filling up the car. This encourages them to look for the cheapest petrol stations and to organise carpooling with colleagues – effectively halving their fuel consumption.”

“We didn’t want to impose a company car on everyone but we did want to ensure all staff are mobile, during working hours as well as in their personal time. We didn’t want to give them a tool that could cover all their needs, focusing instead on their main use – driving to the office on weekdays, while keeping an open mind for exceptional and very exceptional use.”

“If they don’t use up their full mobility package, they keep ownership of what’s left and they can use it to rent a car, get a leased bike or to splurge on business class plane tickets.” Indeed, company travel is also paid using the mobility card, though the company does provide more project-related travel budget as needed.

In practice, all Qteal employees do have their own car, which they manage as a shared car open to all colleagues. “We found this solution to be more advantageous than opting for an existing carsharing scheme.”

Sharing cars between colleagues is more complicated when people get to customise their vehicle to their wishes, said Mr Van Lishout. “That’s why all our cars have an identical look: they’re black with a large company logo on them. This makes it clear that we’re dealing with a company car and not a private car, and it helps to create the right mindset.”

Buffer Carmakers and leasing companies needed some convincing to get them on board, said Mr Van Lishout. “They

“When we started talking with leasing companies, we found it was easy to get them on board on a philosophical level. In practice, though, they’re still very much focused on the car. They also treat mobility cards as a fuel card, only making them available when the ordered car is delivered and not while you’re still driving a pre-contract vehicle. So we had to attack these sacred cows and get them to review their processes.”

Benefit in kind “In practice, we found that regulations aren’t ready for what we’re doing. If I take the train to go to the beach at the week-end and pay for it with my mobility card, that’s considered to be benefit in kind. If I use my company car filled up with fuel paid by the company, it isn’t. We’re all supposed to be driving less but regulations aren’t following when we try to make that possible.” Qteal entered into talks with social inspection, arguing that a mobility card is like a fuel card, meaning it shouldn’t be considered to be benefit in kind. “In the end, they agreed, but we did rely on reasonable people at social inspection who had an open mind.”

Identical look

The Qteal way of car deductibility Read the full interview

Apply data to GO Electric with confidence.

CONNECTED

CONNECTED FLEETS CONFERENCE: LESSONS LEARNED

@DieterQuartier & Benjamin Uyttebroeck

@uytteb

More than 100 fleet and mobility professionals gathered in Brussels on 28 and 29 January to share best practices and the latest trends in last mile deliveries. This is what they went home with.

FLEET EUROPE #114

A room full of managers eager to learn about last mile delivery and connected commercial fleets.

What challenges do today’s LCV fleets face in an urban context? How can fleet management and finance be optimised with connectivity and telematics? What does the future of delivery look like? That’s what the attendees set out to find out, each bringing their experience and expertise from commercial fleets, postal services and parcel delivery companies, online retailers, logistics companies and a wide range of specialised suppliers. These are five lessons the attendees took home after this year’s event.

your procurement to 1 Plan avoid unnecessary costs, but

build in a flexible layer to absorb temporary needs.

“A van is more than a car,” said Michiel Alferink, Vice President International Commerce & Sales, Athlon International. Choosing a van should be determined by maintenance intervals, by tyre lifecycles and by other aspects that can have a direct influence on availability and costs. At the same time, peak demand requires flexible solutions, which is why Athlon offers rental vehicles that can be used to supplement traditional leased fleets.

hardware is one thing, 2 The the human element another.

Driver monitoring and coaching are key to keep variable costs at bay. Benjamin Kaehler, Head of eDrive@ VANs, recommends fleets to scan all vans as they enter and leave the depot. This has shown to significantly improve driver behaviour, as they know even the smallest damages will be noticed. Importantly, it also reduces downtime and incidents that can potentially damage a company’s image.

is paramount. 3 Collaboration It’s what drives innovation,

not only about the last mile, 4 It’s but also the hand-over. Making

Opening up your platforms and APIs is not about giving away your competitive advantage, it’s about staying competitive and therefore to survive. Koen Kennis, Deputy Mayor for Mobility, city of Antwerp, is clear: his city only gives the green light for new mobility providers if they open up their APIs. In practice, however, he sees much margin for improvement in terms of commercial applications.

That’s why Frank Rinderknecht, Founder of Rinspeed, came up with a solution to make this hand-over more efficient. The CitySnap is a vehicle that contains a wall of parcel lockers. It can be driven and parked anywhere, allowing consumers to pick up their package when it suits them. In the future, this vehicle will be self-driving.

increases security and creates synergies.

Next to learning, the Connected Fleets Conference is very much about networking.

sure the parcel is successfully delivered is equally challenging.

is crucial to go 5 Telematics electric. It helps you to deter-

mine which vehicles in your fleet can be EVs and it’s the only way to know their location, range and state of charge. When delivery company Gnewt started operating its first EV fleet in London, founder Sam Clarke needed to organise charging using basic clock timers and a spreadsheet to work out a vehicle’s range and covered distance. Today, telematics and smart charging stations make this much simpler.

How close to reality are autonomous pods? A question sparking a lively debate between Frank Rinderknecht (Rinspeed), David Oren (UVEye) and Stefano Peduzzi (Geotab).

CASE STUDY POST NL

Parcel deliveries need to be optimised, but going for the solution with the lowest footprint doesn’t necessarily make sense in all contexts. You don’t want traffic jams of cargo bikes,” explained an inspirational Anna Paulides, Project Leader City Logistics, PostNL. Put into practice, this means cargo bikes can be the go-to means of delivering parcels in the historic centre of cities. In other areas, however, vans are often still the best choice. One large van can be replaced by three smaller vans. In turn, those three smaller vans can be replaced by 12 electric cargo bikes. So if population density dictates a larger volume vehicle, it makes sense to use it.

Anna Paulides, Project Leader City Logistics, PostNL: “The lowest-footprint solution does not always make sense.” SimplyMile city hubs have already been set up in The Hague, Amsterdam and Groningen. In those hubs, goods from various sources can be consolidated, leading to fewer unique vehicles entering city centres.

FLEET EUROPE #114

City centres are becoming less accessible as local governments introduce low emission zones, close off streets for traffic and limit the number of parking spaces. That’s why PostNL has the ambition to make emission-free deliveries with minimal disruption in 25 Dutch cities by 2025. By 2030, parcel deliveries in the Netherlands and Belgium should be completely emission-free.

MAAS

LONDON

THE WORLD’S SMARTEST CITY? Fien van den Steen

2020 must be the year in which London will become the world’s smartest city. The UK capital won’t only turn into the most walkable city, it will also roll out 5G and a range of smart mobility features. Here’s an overview of London’s smart mobility landscape.

CO2

SMART MOBILITY

LONDON SMART CITY Population:

10 million by 2030 Mayor:

Sadiq Khan

• Walkable city: more walking and cycling lanes, more pedestrian crossings, new traffic signal technology • Investment of £4 billion in transportation in the Greater London Area over ten years • Heathrow pod system: zero-emission autonomous rapid transit system to reduce congestion around Heathrow airport

(Labour)

Smarter London Together = roadmap to make London the world’s smartest city by 2020

• Air pollution monitoring: air quality sensors attached to lamp posts; two Google Street View cars record smog - Smart lamp posts with smart units equipped with air quality sensors, public wifi, cameras and EV charge points - Smart Mobility Living Lab (SMLL): world’s most advanced urban testbed for connected and autonomous vehicles; using public and private roads in London

ROAD PRICING Zone (since)

Charge for …

When

Where

Exemptions

Charge

vehicles entering central London, greener vehicles are exempt

Monday to Friday; 7am to 6pm

Central Congestion Charge Zone

Residents

£11.50/day (£10.50 for drivers registered for autopay) Penalty: £130

Low Emission Zone (2008)

most polluting, heavy diesel vehicles entering the larger Great London Zone

At all times

Greater London zone

Ministry of Defence vehicles and specialist equipment

£100 to £200/day Penalties: £250 to £2,000

Ultra-Low Emission Zone (April 2019)

all vehicles from: • Euro 3 for motorbikes, • Euro 4 for petrol vehicles • Euro 6 for diesel vehicles and heavy vehicles

At all times

Central Congestion Charge Zone; Will expand in October 2021

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Congestion Charge Zone (2003)

£12.50 for cars to £100 for lorries in addition to the Congestion Charge and the Low Emission Zone charge

SHARED MOBILITY

MOBILITY 2020 VISION - GOALS

• Car clubs: short-term car-rental services; members have access to locally parked cars and pay by the minute, hour or day

• Automated trains on 75% of the Tube by 2020 • 40 trains per hour on major Tube lines • Efficient suburban rail service

• Carsharing: Zipcar, Ubeeqo, DriveNow, Getaround (Drivy), BlueCity, Co-Wheels, Enterprise, Hiyacar (peer-to-peer carsharing), Turo (peer-to-peer carsharing)

• Modernise highways and traffic management, including new road tunnels • 2,000 new buses for London by 2020

• E-scooter companies are banned in London (and the UK)

• New Silvertown tunnel by 2021 • Improved river crossings

• Bikesharing: Santander Cycles (750+ docking stations and 11,500+ bikes), Jump (owned by Uber), Donkey Republic, Beryl Bikes, Bike & Co

• Crossrail: new West-East railway line through London • Ensure at least 15% of the journeys in inner London are made by bike

• Ridehailing: Taxiapp UK, Addison Lee, Gett UK, includes option to only book EV taxis, London Lady Chauffeurs, Free Now, Kabbee, Uber was banned on 25 November 2019, Bolt (formerly Taxify), Kapten (formerly Chauffeur-Privé), Ola (will be launched in January 2020)

• Expansion of tram network

MODAL SHIFT

• Black cabs: - iconic London taxis, - around 20,000 diesels, - since 1899, - about 2,450 hybrid-electric cabs, - first full EV taxi launched in October 2019

After introduction of the first congestion charge

Private car trips

46% to 36%

Walking / cycling

27%

Public transport

29% to 37%

Total modal shift today

65%

Target modal shift 2041

80%

E-MOBILITY • 20,000 EVs (potential of 330,000 by 2025)

• Future:

• 1,700 e-taxis

- rollout of 175 rapid chargepoints across the city

• 2,400 public chargers spread over 1,200 locations (= 25% of UK’s chargepoints)

- installing next generation of ultra-rapid charging points at London petrol stations

• 183 rapid charging points (300 on the way by the end of 2020)

- delivering five flagship charging hubs (multiple cars to quickly be charged in one place)

• 1,100 lamp post charging points in residential areas (and growing)

- one-stop-shop for Londoners to request new charging infrastructure from their local authority

• World’s first Electric Vehicle Infrastructure Taskforce

- expanding EV clubs and offer - online smart tools to ensure London’s energy grid continues to keep pace with demand - 50,000 EV chargepoints built over next 6 years

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• Europe’s largest e-bus fleet

MAAS

VAIGO’S WINNING FORMULA:

SIMPLICITY Frank Jacobs

Nothing like winning the Smart Mobility Start-up of the Year Award to boost your business: “It’s already given Vaigo more visibility and new customers,” says Roeland Vanrenterghem.

Fleet Europe °114

Articles inside

London, the World’s Smartest City

Connected Fleets conference: 5 Lessons learned

Why batteries are the future

Rethinking TCO for electric vehicles