THE NEW INSIGNIA
MASTERPIECE OF CONNECTIVITY. Fuel consumption combined 8.7–4.0 l/100 km; CO2 emissions combined 199–105 g/km (according to R (EC) No. 715/2007). Picture shows optional equipment. Availability depends on local market offer.
IT’S TIME TO TAKE CONTROL DISCOVER THE NEW SEAT LEON ST
TECHNOLOGY TO ENJOY SEAT FOR BUSINESS OFFERS AN OUTSTANDING COMBINATION OF FEATURES AND SERVICES. We meet the speciﬁc requirements of your ﬂeet, always putting the driver ﬁrst. The New SEAT LEON ST has unique technological features, ensuring the fullest attention to and from your drivers. Full Link technology and the new Trafﬁc Jam Assist allow the driver to stay connected in the safest way. SEAT’s growing network of certiﬁed professionals provide a wide range of Services dedicated to the Business customer, under the name SEAT QUALITY. We also offer a special Warranty program to guarantee excellent customer experience.
SEAT FOR BUSINESS. Your goals are our fuel. Average fuel consumption from 4.1 to 7.2 l/100 km. Average CO2 mass emissions 96 to 164 g/km.
FOLLOW US ON:
contents THE NEW INSIGNIA
MASTERPIECE OF CONNECTIVITY. Fuel consumption combined 8.7–4.0 l/100 km; CO2 emissions combined 199–105 g/km (according to R (EC) No. 715/2007). Picture shows optional equipment. Availability depends on local market offer.
Chairman Jerry Ramsdale firstname.lastname@example.org
16 SPOTLIGHT: Peugeot 308.
20 Electromobility Stakeholder Forum.
26 Analysing the fleet future of diesel.
40 Driven: New Mercedes-Benz E350e.
Publisher Steve Moody email@example.com Editor John Challen firstname.lastname@example.org Deputy Editor Alex Grant email@example.com Business Editor Natalie Middleton firstname.lastname@example.org Content Editor Katie Beck email@example.com Sales Director Anne Dopson firstname.lastname@example.org Sales Manager Harry Whyte email@example.com Circulation Tracy Howell firstname.lastname@example.org Head of Production Luke Wikner email@example.com Designers Tina Ries firstname.lastname@example.org
04 Fleet Review Editor John Challen reflects on cyber attacks and data security. 06 Fleet in figures Breaking down the latest global vehicle sales by region. 08 News The biggest stories from a month in the international fleet world. 16 Spotlight A detailed look at Peugeot’s connectivity and safety-rich new 308.
Victoria Arellano email@example.com Web Designer Dan Desta firstname.lastname@example.org
18 Feature Risk management: getting the best out of your vehicles and drivers. 20 Feature The key issues from the fifth Electromobility Stakeholder Forum.
Published by Stag Publications Ltd, 18 Alban Park, Hatfield Road, St Albans, Herts, AL4 0JJ tel +44 (0)1727 739160 fax +44 (0)1727 739169 email email@example.com web internationalfleetworld.com
26 Feature Maarten Baljet of BF Forecasts analyses the fleet future of diesel. 28 Fleet Focus How recent tax changes have shaped Turkey’s fleet market. 32 Profile Skoda’s expanding SUV range and plans to grow share in China. 36 Events In-depth coverage of the 2017 NAFA Institute and Expo in Florida.
To subscribe to International Fleet World visit: www.fleetworldsubscriptions.co.uk
38 Launch Report SEAT Ibiza / Mercedes E 350e / Kia Picanto / Renault ZOE.
internationalfleetworld.com / 03
fleet review This month, editor John Challen reflects on a buzzing fleet industry show, fleet cyber security and solving future diesel issues...
Is your fleet cyber secure? The computer virus that affected millions of people all over the world in May was an eye-opener to many, but should it really be such a surprise? In a world that is so heavily dependent on computers, the internet and e-commerce, the risk of cyber attacks such as this one is high and, some would argue, it was only a matter of time before one struck. It could have been the wake-up call that many people – including those in the automotive industry, which increases its reliance on computer technology every year – needed. Although no single computer, network or company is immune to such a crippling attack, there are measures that can be taken to ensure that the chances of being affected – and the impact any such ‘e-disaster’ has – are limited. A lot of the systems affected were running out of date software or needed upgrading, but companies claimed the investment costs were too high. However, you can bet that the costs of dealing with the fallout from the cyber attack are far, far higher.
Fantastic Fleet Show Back to human interaction and the Fleet Show 2017 (organised by the publisher of International Fleet World) also happened in May with a record number of visitors through the doors. There was a wide selection of cars
to take around the Silverstone track, numerous exhibitors to talk to and forums and presentations. It was also the perfect opportunity for networking, with many meetings having been planned for the show and new relationships forged with the aim of people and companies working together in the future. Proof that in the digital age, there is sometimes no substitute for face-to-face conversations.
The death of diesel? The row over whether diesel cars should be banned from cities – prompted by the higher levels of NOx as well as evidence linking oilburners and illness and death – rumbles on. However, with millions of diesel cars – let alone commercial vehicles – on the road, it is unlikely to be a problem that is going to be solved any time soon. Values of diesel cars might be falling, but then who is to say that the same might happen with petrol-powered cars in the future? Petrol’s demise could be caused by a continuing rise in popularity for electric cars, but with no-one really knowing about the long-term effects and potential problems with EVs, could the world revert back to diesels – or another power source? Plenty to ponder for the experts, but don’t expect any knee-jerk changes or blanket bans any time soon.
The UK’s greatest Fleet Show at Silverstone was a runaway success in May.
fleet in figures
Global contraction not expected to last Falling selling rates in China and Europe are only expected to be a temporary measure. Meanwhile, there was an improvement in vehicle sales in Japan. By John Challen.
drop of 1.4% in global light vehicle sales in year‐on‐year terms in April was the ﬁrst time the global market has contracted since August 2015. The selling rate slipped back to 91 million units a year for April, from 94 million units in March. LMC Automotive reports selling rates falling back in China and Western Europe after a strong start to the year, while there was better news from Japan.
concerned at this stage that the weak April result will persist, and still expect full year growth for the region. The Russian market continued to improve in April, up 7% year‐on‐year with a selling of 1.6 million units a year once again. Overall, Eastern Europe was up 3% year‐on‐year, a solid result when account‐ ing for fewer selling days, with Poland a standout performer (+14% year‐on‐year).
Light vehicle sales in April 2017 in the US totalled 1.42 million units, which trans‐ lates into a selling rate of 16.8 million units a year. Similar to last month, retail sales in April were relatively stable compared with last year and there was a pullback in ﬂeet sales. Macroeconomic conditions continue to be favourable with low interest rates, high consumer conﬁ‐ dence (although there was a slight downtick from last month), low and stable fuel prices, and low unemployment. Meanwhile in Canada, sales for the month reached 197,000 units, a 1.5% drop compared with April 2016’s result, which admittedly was an all‐time record month.
According to preliminary data, the Chinese market slowed for the second consecutive month, with the April selling rate falling to a 12‐month low of 25.5 million units a year. That compares to the average rate of 27.9 million units a year in Q1 2017. Compared with 2016 ﬁgures, sales declined by over 3% in April, but increased by 3.5% in the ﬁrst four months of this year. The overall economy is showing mixed signs. GDP growth picked up to 6.9% year‐on‐year in Q1, driven by the robust industrial sector. Goods exports have bottomed out, too. Yet, both manufactur‐ ing and services PMIs weakened in April, suggesting some slowdown in the econ‐
Europe The sharpest fall around the world was in West Europe, where markets suffered a 7% reverse on light vehicle sales. In most markets, there were at least two fewer sell‐ ing days compared with April 2016, due to Easter dates. However, even accounting for this factor, the selling rate dropped to 15.3 million units a year, having averaged 16.4 million units a year for Q1. With reasonably solid economic news within the region, LMC is not too
06 / internationalfleetworld.com
Poland’s 14% year-on-year increase helped by Skoda sales
omy ahead. If so, the automotive market could lose further steam.
Other Asia Sales in Japan surged strongly in April, aided by an improving economy and a recovery in mini vehicle sales. The April selling rate was a 28‐month high of 5.47 million units a year, up nearly 7% from a solid March. On a year‐on‐year basis, sales increased by nearly 8% so far this year, a good result for Japan. In South Korea, the April selling rate of 1.7 million units a year was a marked slowdown from March, but was still a robust rate. After the impeachment of the former president in March, consumer conﬁdence improved, despite the height‐ ened military tensions with North Korea.
South America The selling rate in Brazil slowed to 1.9mm units/year in April due to holidays and major strikes. On a year‐on‐year basis, sales declined by 3% in March and 1.4% in Q1 2017. Although inﬂation and inter‐ est rates have fallen sharply, most consumers continue to struggle to make ends meet. The high unemployment rate (13.7% in March) is another major concern for consumers. In Argentina’s volatile market, the sell‐ ing rate averaged 818,000 units/year in the ﬁrst four months of this year, a marked improvement from last year’s total light vehicle sales of 681,000 units. On a year‐ on‐year basis, sales increased by a strong 32% so far this year, despite ﬁscal auster‐ ity measures. While inﬂation remains high, negative real interest rates and the stabilised peso must be helping sales.
INTELLIGENT MOBILITY DIGITAL TRANSFORMATION OF THE AUTOMOTIVE INDUSTRY
Frost & Sullivan’s Intelligent Mobility combines interactive exhibitions, workshops, and showcases of future technologies.The event will provide a powerful forum for networking and debating the vision for the ever-evolving mobility market.
Join us for Intelligent Mobility! Visionaries presenting at this year’s Intelligent Mobility conference represent the following companies BMW Group Department for Transport Facebook Financial Times GreenRoad Jaguar Land Rover Limited MAN Truck & Bus AG Mahindra Group
Nissan Europe NVIDIA Nokia Innovation Steering Omoove Oxbotica Renault-Nissan Alliance Siili Solutions Oyj Toyota Motor Europe
INTELLIGENT MOBILITY DIGITAL TRANSFORMATION OF THE AUTOMOTIVE INDUSTRY
28 - 29TH JUNE, 2017 | JUMEIRAH CARLTON TOWER, LONDON | www.frost.com/intmob
For Partnership Opportunities, Group Discounts or any other queries: Cyril Cromier firstname.lastname@example.org Jana Schoeneborn email@example.com
Opel and Masternaut to offer pre-installed van telematics leets can now buy Opel vans with pre‐ F installed Masternaut telematics devices in a move intended to eliminate deployment time,
Skoda reveals Qashqai-rivalling Karoq SUV
hassle, and cost. The partnership also sees ﬂeets offered vehicle management services via the Masternaut Connect platform, which gives real‐time visibility into vehi‐ cle locations and journeys along with smart reports on driver behaviour, timesheets, vehicle utilisation, and routes. Customers can add an in‐cab driving coach that provides immediate feedback and has been shown to reduce speeding by up to 70%.
koda has revealed its new Karoq SUV, which replaces S the Yeti to provide a direct rival for models such as the SEAT Ateca and Nissan Qashqai. Available to order from the second half of the year, the new compact SUV is narrower and lower than the Yeti but longer in length and wheelbase, and also offers increased luggage capacity. Infotainment Online services are avail‐ able, along with real time navigation details and the Care Connect package, which provides remote access. The engine line‐up will feature five units, of which four are new. Diesels comprise a 115hp 1.6 TDI plus 150hp and 190hp 2.0 TDI units, while petrol engines cover a 115hp 1.0 TSI and a 150hp 1.5 TSI. All engines are offered with a six‐speed manual or seven‐speed DSG apart from the higher‐powered diesel which comes as standard with all‐wheel drive and seven‐speed DSG.
08 / internationalfleetworld.com
Progress on European new car emissions slows
O2 emissions of new cars sold in the EU continued to fall last year but at a slower rate. Provisional data published by the European Environment Agency (EEA) shows average new car CO2 emissions in 2016 were 118.1g/km – down 1.4g/km (1.2%), compared to the previous year but marking the smallest annual improve‐ ment recorded since 2006. The figures also show that the share of diesel vehicle sales declined for the second year running in 2016 and fell below 50% of new sales ‐ the lowest share of new sales since 2009 according to the official statistics. Electric and plug‐in hybrid vehicles together still remain a small fraction of total sales, accounting for 1.1% of all new cars sold in the EU. Combined sales of these vehicle types fell by around 3,200 vehicles compared to 2015 when they comprised 1.2% of registrations.
For the latest news, visit internationalfleetworld.com
Arval launches reporting platform for multi-supply schemes
rval has debuted a new global strategic online reporting platform for clients working with multiple full service lease providers. Dubbed Total Fleet, the new solution is hosted by an independent third‐party provider and is designed to provide Arval clients using multi‐supplier schemes with a consolidated view of their ﬂeet key performance indicators. Total Fleet will be rolled out across Arval’s markets throughout 2017 and will also be made available to clients across the Element‐Arval‐Global Alliance, in particular to Element clients in the US.
LeasePlan appoints new SVP car remarketing easePlan has named Ewout van Jarwaarde L as senior vice‐president car remarketing, succeeding Wolfgang Reinhold who stepped down at the end of 2016. Mr van Jarwaarde joins the company from McKinsey & Company in Amsterdam where he held a number of functions over the past decade, including partner. His appointment comes as LeasePlan looks to further optimise its car remarketing activities, both via LeasePlan owned outlets and via digital channels, including online auction platforms.
Leasing firms call for real-time access to data
coalition of automotive aftermarket operators and mobility service providers has urged EU institutions to create a robust legal framework on digital services to aid market development. During the event, held in Brussels and chaired by Ismail Ertug MEP, the coalition – which includes Leaseurope – said automotive aftermarket oper‐ ators and mobility‐services providers are currently being offered reduced quality of data from vehicle manufacturers, making it impossible for them to compete fairly and equally. Leaseurope added that direct, real‐time connection to the vehicle is essential to allow smart fleet‐management and digital mobility solutions.
Wolfgang Reinhold appointed divisional CEO Europe at BCA LeasePlan executive Wolfgang Reinhold has joined BCA as divi‐ FMrormer sional CEO Europe, effective 29 May 2017. Reinhold brings 28 years’ experience at LeasePlan Group, with the past 16 spent as group service senior VP operation, procurement and car remarketing for LeasePlan. His new role with BCA will build on his experience in leading digital and platform changes in the pan‐European remarketing arena and comes as the company continues to develop its ‘One Europe’ programme to deliver pan‐ European solutions.
fleetiinquotes a few soundbites from a month in fleet
We’re moving from a position of strength to transform Ford for the future. Jim Hackett is the right CEO to lead Ford during this transformative period for the auto industry and the broader mobility space.
Bill Ford, Ford executive chairman.
Google’s platform and services will enhance the user experience by enabling more personalisation possibilities, while Android will offer flexibility from a development perspective.
Henrik Green, senior vice president research & development at Volvo Car Group.
BCA has led innovation in vehicle remarketing in Germany for 20 years and we are proud to have partnered with Ford throughout that period of development. The relationship has been dynamic and transformative for the remarketing sector, both in Germany and across the wider European marketplace. Avril Palmer-Baunack, BCA executive chairman.
internationalfleetworld.com / 09
The new E-Class All-Terrain. Get your morning coffee where it is grown. Masterpiece of Intelligence. Equipped with the AIR BODY CONTROL air suspension system and the 4MATIC all-wheel drive system, every day it ensures that your route does not become routine. mercedes-benz.com/fleet
‘Future-proof’ UK rapid charge network due late 2017
he irst of a network of 200 rapid charging points, capable of being upgraded to offer eight times the output of today’s fastest units, will go live along the UK’s major routes this summer, as US manufacturer ChargePoint extends its presence in Europe. It follows ChargePoint’s most recent round of fundraising, which has secured $225m from investors including Daimler and BMW i Ventures. The company already has 33,000 units installed across North America, and claims to provide facil‐ ities used by 6,500 businesses for their employees and leet vehicles – something it now wants to replicate in Europe. The ‘multi million‐pound’ deal with British company InstaVolt will establish a network of 200 Express Plus units in the UK, starting with motorway service stations and fuel forecourts. Express Plus units are modular, designed so that they can be upgraded to add higher outputs by adding ‘Power Cubes’ to increase the charging rates on groups of points. Their cables are also liquid‐cooled, enabling higher power‐handling capability without the usual weight or inlex‐ ibility. ChargePoint means they can handle up to 400kW – typical rapid chargers today offer up to 50kW – which means the points can be upgraded to provide fast charging for the next generation of higher‐capacity batteries. Tim Payne, CEO at InstaVolt, said: “ChargePoint will fulil two important criteria for us: the charging units are future‐proofed so the units can be conigured to meet the precise requirements of any site and can be scaled incre‐ mentally as demand for higher rate charging increases. This is particularly important as EV manufacturers begin to bring out new models with increased battery capacity. “We are also committed to making sure the units are working 24/7 and so the reliability of the ChargePoint product is one of the cornerstones of our offer.”
480km range and five-minute charge times due “within three years”
lectric vehicles which take ive minutes to fully charge and offer a 480‐kilometre range could reach the market within three years, following a breakthrough in battery cell technology. StoreDot, a nanotechnology materials company based in Israel, has developed an organic substitute for the graphite cathode used in most lithium‐ion battery cells. This is the component that usually limits energy conductivity, in turn affecting the amount of energy the cell can store, and the dura‐ bility of the unit itself. The FlashBattery uses a material that has much higher combustion temperatures, thus reducing resistance and
12 / internationalfleetworld.com
enabling faster charging times, but also improving the safety of the battery, the company said. StoreDot expects it to be inte‐ grated into production vehicles within three years. Dr. Doron Myersdorf, co‐founder and CEO of StoreDot, said: “Fast Charging is the critical missing link needed to make elec‐ tric vehicles ubiquitous. The currently available battery tech‐ nology dictates long charging time, which makes the EV form of transportation inadequate for the public at large. We’re exploring options with a few strategic partners in the auto space to help us boost the production process in Asia and reach mass production as soon as possible.”
For the latest EV news, visit evfleetworld.com
Tesla to double its ‘Supercharger’ network
esla is to double its global network of ultra‐fast charging points during 2017, as it prepares for the launch of the compact‐executive Model 3 elec‐ tric car and growing numbers of Model S and Model X customers. The carmaker said it began 2017 with 5,000 Superchargers – which offer fast, high‐power charges mostly along major routes, and are designed for long‐ distance driving. It now has 5,400. By the end of the year it aims to have 10,000 in place, a ﬁfth of the new units will be installed in California, and introduce large sites for “several dozen” vehi‐ cles to charge simultaneously. The expansion is aimed at avoiding the need to wait for a charging point and growing its presence in cities. Expansion of the slower ‘destination charging’ network, slower units sited at hotels, resorts and restaurants, is also planned. Installation will begin before the summer. “It is extremely important to us and our mission that charging is convenient, abundant, and reliable for all owners, current and future,” Tesla said in its statement.
Wireless charging for BMW 5 Series PHEV
MW will introduce wireless charging as an option for the 530e plug‐ in hybrid next year, enabling drivers to top up without handling a charging cable. Similar to the technology used in smartphones, the technology transfers energy via an alternating magnetic ﬁeld. It requires two charging coils; a mains‐supplied primary induction coil in the ground, and a second ﬁtted to the car. These are weatherproof and can be installed indoors or outdoors. All the driver needs to do is park the car over the primary coil, and the system can charge the car at up to 3.2kW – a slightly lower output than a wallbox, but faster than a three‐pin plug. BMW claims it takes three and a half hours to fully charge the 530e this way. Pricing and market‐by‐market availability have not been announced yet.
in brief Panasonic extends global EV battery production Panasonic has opened an 80,000m2 EV battery factory in China – one of three global sites plenned as it steps up production ahead of consumer demand. Based in Dalian, near the North Korean border, the site will employ 500 staff and complement factories in Japan and the United States, the latter in partner‐ ship with Tesla.
NEVS and ICONIQ to jointly develop electric vehicles National Electric Vehicle Sweden (NEVS) is teaming up with Chinese EV startup ICONIQ to jointly develop vehicles. The partnership will develop shared tech‐ nologies, but for vehicles built and sold separately under each brand.
Recharge fees curbing EV demand, says Rolec “Extortionate” fees for public charging networks are damaging EV uptake the UK, manufacturer Rolec EV has warned. The company’s managing director, Keiron Alsop, said drivers should only have to pay for the energy used, just as petrol or diesel is supplied without addi‐ tional costs to the fuel company.
London to get 300 rapid chargers
Transport for London has taken the first steps in a new scheme that will see 300 rapid charge points deployed in the capital by 2020. The £18m project is aimed at incentivising drivers to switch to electric vehicles, and 75 will be installed by the end of this year, doubling during 2018.
Percentage point value increase for used Toyota Prius models in the UK since the start of the year.
Charging points to be installed in U.S. national parks, in partnership with BMW.
internationalfleetworld.com / 13
BP and Aral launch co-branded Europe-wide fuel card
XXImo, Visa and Q8 partner on Mobility Card
new dual‐branded international fuel card has launched by BP and Aral. The Europe‐wide BP + Aral card is available to more than 200,000 BP and Aral fuel card customers and will also give users access to the ROUTEX network covering more than 17,000 sites across 29 coun‐ tries in Europe. The new card will be supplied to BP and Aral customers when they order international cards. Individual BP Plus or Aral Plus will still be given when ordering national cards for both truck and bus and car and van ﬂeets.
LeasePlan fleet size and profits rise has published its ﬁrst quarter 2017 results, showing a rise in proﬁts and turnover on the back of an increase in its ﬂeet size. LTheeasePlan results show that gross proﬁt increased by 5% year‐on‐year to EUR 399 million while total underlying revenues were up by 6% to EUR 2.4 billion compared to Q1 2016. Lease revenues increased by EUR 115 million, largely driven by a 6.3% increase in the number of vehicles under manage‐ ment, which rose from 1.6 to 1.7 million. Growth continued in all segments and in all major markets with relatively strong contributions from Germany, the Netherlands and Italy.
TomTom Telematics and BP partner for fuel and driver management solution
Q8 has become the first fuel supplier to launch a mobility card provided by XXImo and Visa. Available in Belgium, the solution will enable card holders to pay for fuel, train and taxi rides, and parking, via all payment terminals that are part of the Visa acceptance network.
Volvo and Autoliv go live with autonomous driving JV Volvo and Autoliv’s autonomous driv‐ ing JV has started operations. The business marks the irst time a premium car maker has joined forces with a tier‐one supplier to develop advanced driver‐assist systems (ADAS) and autonomous driving (AD) technologies. The irst ADAS products are expected to be available for sale by 2019, with AD technologies following shortly thereafter.
Groupe Renault UK names new MD Groupe Renault UK has appointed Vincent Tourette as managing direc‐ tor, effective immediately. Mr Tourette replaces Paul Flanagan, who moves onto a new role within the group to be announced shortly, and has worked for the Renault‐Nissan Alliance for 23 years.
White label mobility solution launches
omTom Telematics and BP are to roll out a joint fuel and driver manage‐ ment solution within Europe. BP FleetMove combines fuel transaction information from BP fuel cards with driver behaviour data from the TomTom Telematics Service Platform. An app provides drivers with feedback on their performance behind the wheel and with helpful information, such as the location of fuel stations. The app and online portal are available now in the Netherlands and Germany and will be rolled out in other regions in Europe where BP fuel cards are available later in the year.
14 / internationalfleetworld.com
Daimler’s moovel mobility platform subsidiary has teamed up with the Karlsruhe Transport Authority KVV in Germany to launch a mobility app. Aimed as a solution for transport operators and transport companies, the ‘KVV.mobil powered by moovel’ app enables users to search, book and pay for a range of mobility services.
Optima Plug-in Hybrid
GET PLUGGED IN! Kia’s expanding plug-in hybrid line-up offers ultra-low CO2 emissions and running costs, with genuine appeal for fleet drivers and operators. The cars your fleet needs... ...with the style and technology as standard. Having already taken a key role in Kia’s European fleet As you’d expect from a Kia, our Plug-in Hybrids are loaded portfolio, the Optima Plug-in Hybrid range will grow to with driver appeal. Fun to drive, with brisk acceleration include a capacious wagon variant this autumn, alongside and agile handling, each is sold in a single, generouslythe sedan which launched last year. The two bodystyles equipped trim level. Leather upholstery, wireless phone share a powerful 202hp drivetrain, combining a 2.0-litre GDI charging and an 8.0-inch touchscreen navigation system gasoline engine and electric motor, while the rechargeable with TomTom live traffic, weather and speed camera* battery offers a fully-electric range of 53km. It means fleets information, as well as a suite of assistance technologies, can take advantage of 37g/km CO2 emissions, with a are all standard equipment. As is the peace of mind of capacious 440-litre load space and 40:20:40 split-fold rear Kia’s seven-year, 150,000km (100,000-mile) warranty, bench for wherever their business takes them. which also covers the battery pack. For drivers, there’s nothing to adjust to. Smooth-shifting Plug-in hybrid technology will also be available in the Niro dual-clutch automatic transmissions offer easy progress later this year; a unique combination of a 55km electric in city traffic, and technology on board can suggest range with the desirability and flexibility of a compact opportunities to ‘coast’, saving fuel, or to pre-plan energy crossover. the The Kia Niroline-up Plug-in Hybrid GDI Kia’s Joining at theuses endaof1.6-litre the year, stylish new Optima usage for the road ahead. Energy-efficient air conditioning, gasoline engine and electric motor, producing 141hp but with Sportswagon is as desirable for drivers as it is cost-efficient for fleets. combined with unique, aerodynamically-optimised CO2 emissions of less than 30g/km. Clever packaging means styling, help to maximise electric range and fuel economy, there’s no loss of space inside, and a 324-litre cargo area, while the navigation can direct drivers local charging while it can tow up to 1.3 tonnes with the optional pack. points for a top-up. Electric mobility, made simple. Reduced running costs don’t have to mean reduced choice.
Niro Plug-in Hybrid
* depending depending on on m market arket
For more information, visit kia.com/eu advertisement feature
SPOTLIGHT Peugeot 308
Hope for the hatchback Hoping to mix it with the raft of MPVs, SUVs and crossovers, the latest 308 has history on its side. John Challen explains all.
All about the tech Peugeot is claiming that the new 308 will be the most hi-tech model it has ever built. New touchscreen connectivity as part of the impressive i-Cockpit has been installed, while all of the driver assistance systems found on the 3008 SUV will be offered to buyers of the hatchback. A 180Â° rear camera and park assist enables the car to park itself, too.
16 / internationalfleetworld.com
308 smartens up As well as being the most technologically-advanced, the 308 is also the boldest, according to the French manufacturer. A new front bumper design featuring three large grille openings ensures improved engine cooling properties, while the front end also features LED daytime running lights across the range. Inside the cabin, drivers will benefit from a system that integrates with Android Auto, MirrorLink and Apple CarPlay as well as a new navigation system featuring real time traffic updates.
Shift in power The 308 will be the first model in the PSA family to use its latest BlueHDi 130 S&S diesel â€“ a four-cylinder with a fresh approach to emission control, adopting it at source as well as at exhaust. There is a patented combustion chamber design that has been proven by race cars at Le Mans and an SCR system to further reduce pollution levels. The PureTech three-cylinder petrol range features similar upgrades, along with a gasoline particulate filter. A new six-speed manual transmission also features for petrol models.
FLEET FACT Engine upgrades made with one eye on forthcoming Euro 6 standards.
What we think... With its predecessor being deemed European car of the year in 2014, the new model has something to aspire to. Fortunately, the Peugeot range is on the up and the new hatchback is the latest beneficiary of the advances in engine technology, connectivity and safety. The market for conventional hatchbacks is still strong and with estate and a GTi version to come, the new 308 has all the ingredients to be a sales success. JC
internationalfleetworld.com / 17
FEATURE Risk Management
REDUCED RISK ACROSS THE BUSINESS Trying to get the best out of the people and vehicles at a fleet managerâ€™s disposal is no easy task. John Challen discovers how fresh approaches to risk management might make things easier.
18 / internationalfleetworld.com
“Keeping those drivers who are resistant to change happy has always been a challenge and it will continue to be.”
t won’t be news to many people to know that leet management – as well as risk management – contin‐ ues to grow in complexity, causing headaches for all sorts of people in the chain of command. While a lot of solu‐ tions are coming from tried and tested players in the market, new entrants, such as The Smart Cube are trying to take a fresh approach. The company has historically been involved in global analytics and research, but with the launch of Smart Fleet is aiming to provide leet managers with a product that will ‘transform how they manage their leets and engage with suppliers’. The Smart Cube recognises that busi‐ nesses typically use multiple leet suppliers who all provide different reporting data, in diverse formats, with varying levels of accuracy. As a result, many leet managers still use manual spreadsheets for their day‐jobs, which can be unreliable and time‐consuming to maintain and offer inlexible and limited reporting. In response to this, Smart Fleet aims to provide a centralised view of a company’s vehicle leet, irrespective of the number of suppliers and allow better decision‐making. Hosted in the cloud, the platform brings together multiple data sources to provide a singular view, giving leet managers improved visibility of key metrics such as CO2 emissions and average fuel consumption.
Devil is in the detail In practice, Smart Fleet will aim to over‐ come a number of hurdles and improve various areas of the business – for example, best practice sourcing strat‐ egy: “Fleets relying on just one supplier represents a huge risk, not just from a supply chain perspective to ensure high quality service and supply continuity but also from a negotiating standpoint to achieve the best price,” says Sidharth Sreekumar, Smart Fleet product manager at The Smart Cube. “It’s impor‐ tant that leet managers have options, and sometimes we have found that leet managers are restricted because it can
be too complex to manage multiple suppliers if organisations don’t have the right tools and systems in place to remove the burden, particularly of data management.” In terms of leet visibility and track‐ ing, Sreekumar recognises that for organisations spread across multiple regions there is often a risk of parts of the leet disappearing into an ever expanding and unwieldy spreadsheet based data set. “We’ve had leet managers tell us about waking up one day to ind that they had been operating a leet in a country but had not even known about it. This opens up risks related to budgeting as these ‘invisible’ leets can suddenly add to the expense column and completely derail budgets.”
Back to basics When it comes to those in cars, rather than the cars themselves, Richard Hipkiss, managing director at Fleet Operations, believes that the focus on risk has changed over the past decade and would like to see a bit more common sense used. “People form risk factors on known factors and a number of other different elements around the driver and the licence. Whereas the broader risk management approach should be looking at what is happening in the real world, where people are out and about on the road doing their jobs. Are they making the right journeys in the right manner, are they driving the right vehicles? And, from a driver perspective, is the organisation clear that the driver will drive in a safe and courteous manner with the right atti‐ tude?” he wonders. “There is a lot that has been lost with risk management because of the wider industry and how it is positioned. The basics are there, but in real life there are more elements that we need to look at.” Hipkiss says that what his company does now is look at a more overarching assessment on the actual risk, based on the driver’s mileage and their points. “It’s a different approach to training and teach‐ ing in a lot of cases but we need to look at the particular risks in a given vehicle because the journey is typically the same.
So any form of training that covers safe loading or getting from A to B should apply to everyone, irrespective of whether they’ve got points on their license or not or if they’ve had an accident. The evolution of telematics and driver apps have made a difference to the abil‐ ity to manage risk, but Hipkiss says it is vital to build from a solid, reliable base. “It is about making sure that from a risk perspective if you are picking technology to police it, you choose the right tech‐ nology and use it properly. It’s key that an organisation has someone account‐ able and if there is any remedial action that needs to take place, it is done in a timely manner. “Keeping those drivers who are resis‐ tant to change happy has always been a challenge and it will continue to be. There are league tables you can intro‐ duce on the theme of safety and we’ve got organisations that have sales teams lined up to look at who comes out on top, but even then some drivers aren’t inter‐ ested. Harder approaches, such as enforcement, have a place but you need to be careful because they normally involve unions,” he warns. “If you start with a risk assessment that doesn’t include telematics data, part of the monitoring programme/penalty typi‐ cally means a telematics device has to be itted. There is normally a process that leads to that if you are upper medium or high‐risk.”
Future fleets and risk When it comes to semi‐autonomous driving and adaptive cruise control‐type systems, Hipkiss maintains there is a lack of education and proper informa‐ tion. “Fleet managers allow drivers to go off and select those types of systems and don’t really incorporate any form of risk assessment,” he says. “But the main stumbling blocks are around robust risk management, complacency or owner‐ ship. Businesses think that because it’s a vehicle and everyone’s got a driving licence and should be able to drive because they do it in their own private time, then it is not really a risk that they should be concerned about. In reality, they should be very concerned.”
internationalfleetworld.com / 19
FEATURE Electric Vehicles
More range, but from what source? Battery technology is advancing rapidly. Improvements in cell chem‐ istry are already delivering much higher energy density and longer ranges without increasing the physical size of the pack. It’s a trend that is likely to accelerate as cells move to solid – instead of today’s liquid – elec‐ trolytes, enabling longer‐range batter‐ ies to be integrated more easily into smaller cars. Meanwhile, costs are steadily decreasing. Prof. Noshin Omar of the MOBI Research Group at Vrije Univer‐ siteit Brussel, pointed out that Porsche is aiming for a 120kWh battery pack – four times the size of a Nissan LEAF – by 2020, and that next‐generation materials for the cathodes are due to arrive next year, further reducing costs.
20 / internationalfleetworld.com
Since the BMW i3 launched in 2013, he said, the cost of a battery pack will have halved, becoming competitive with a petrol or diesel drivetrain. Of course, higher battery capacity means more energy is required. Amaury Gailliez, charge and battery operations director at Renault, said the carmaker sees strong potential to use electric vehicles as energy storage. The capacity offered is signiicant, he explained; the 430,000 Renault‐Nissan Alliance elec‐ tric vehicles sold globally hold enough energy to replace 12 gas power plants, or to keep Paris running for 11 days. In turn, this creates opportunities for customers to generate revenue by sell‐ ing energy back to the grid. That’s a technology that Chinese battery manufacturer BYD, which also makes electric vehicles, is also looking
to bring to market. Edison Yin, project manager at the company’s European base sees fleets of electric vehicles stabilising grid demand, as well as cutting infrastructure costs at depots by reducing demand spikes using energy gathered during off‐peak times. Electric cars and vans are a part of a wider e‐mobility landscape. French rail company, Alstom, has developed a reversible substation technology, called Hesop, which can recover 99% of the energy from trains as they decelerate while approaching a train station, and supply it back into the grid. Hesop is already in use on the London Under‐ ground’s Victoria Line, and a further five projects are under construction worldwide. Some of the technology familiar from hybrid and electric cars, could help bolster the grid.
The next steps The fifth Electromobility Stakeholder Forum brought representatives from across the sector together to discuss challenges facing the growing market for plug-in vehicles, and how it could accelerate over the coming years. Alex Grant reports.
There’s no ‘silver bullet’ to EV uptake Even across Europe, which is a rela‐ tively small area, the market for electric vehicles and the factors which drive uptake are varied. Launched in 2014, the Incentives for Cleaner Vehicles in Urban Europe (I‐CVUE) project carried out a study into the conditions which promote business and private owners to make the switch. Looking at six coun‐ tries (Austria, Germany, the Nether‐ lands, Norway, Spain and the United Kingdom), this showed there was no easy way to lift the market. For a start, ownership costs don’t always stack up, so incentives on the purchase price help. EVs are typically more expensive than a petrol or diesel car, and all six markets offer either a grant or some form of tax exemption to
close the gap. But the study noted that this doesn’t increase the market signif‐ icantly – it’s in‐life advantages that make the difference. As well as VAT exemption, Norway, Europe’s biggest market for plug‐in vehicles, offers free parking, exemption from tolls and ferry fares and access to bus lanes to avoid trafic, which are attractive for new and used vehicles. Access to a cheap, accessible and abundant charg‐ ing network was also shown to improve demand. Uptake can also be improved by disadvantaging petrol or diesel vehicles, though the study noted that this would be potentially unpopular. For example, Norway is a relatively expensive place to run an EV, but they’re still cheaper to run than a petrol or diesel car. Though per‐mile costs are lower for an EV in
Spain than in Norway, the market is low because petrol and diesel cars are even cheaper to run. Zero‐emission zones are also set to inluence leets’ buying deci‐ sions, but consistent and well‐publicised plans are vital for businesses to make smart decisions, the study said. Electric motoring must be easy; initiatives such as Renault’s Z.E. Pass are enabling cross-border roaming without multiple memberships.
internationalfleetworld.com / 21
FEATURE Electric Vehicles
“The task is not to let end-users know electric vehicles exist, but to make them desirable, to show where they fit people’s lives and make them want EVs.”
22 / internationalfleetworld.com
Making end-users want electromobility The EV market has grown quickly, accounting for 1% of Europe’s total passenger car registrations. However, lack of communication – even at a dealer level – remains an issue in many markets. David Beeton of the Europe‐wide smart city partnership, EV4SCC, believes publicity material also tends to be simplistic, especially when it’s aimed at drivers. “Different people buy cars for different reasons,” he said. “It’s one of the least rational decisions we make, so to assume making [EVs] cheaper will be a reason people buy… that’s not the case. “The task is not to let [end users] know [EVs] exist, but to make them desirable, to show where they it people’s lives and make them want EVs. And the lipside is recognising the challenge that we have in terms of phas‐ ing out fossil fuel vehicles; nobody is doing that effectively, though there’s a growing awareness of air quality. The challenge is presenting that in a responsible way.” But the bigger advantages might not be from cars at all. Mário Paroha, head of R&D at electric van specialist Voltia, says the commercial vehicle sector is ideal for electriication. Repeatable drive patterns and routing soft‐ ware mean they can be slotted into parts of a business where they it perfectly, and their need for bigger batteries means they could also provide an effective energy storage facility too. The savings can be huge. Vans, he explained, average 6,400km per month consuming an average of 10l/100km – passenger cars travel a quarter of that distance, consuming 6l/100km. This means an electric van saves six times more fuel than an electric car. It’s not only the private sector that’s coming under focus. At the end of 2015, the European Commission began examining its ‘Clean Vehicles Directive’, which requires public bodies to look at energy consumption, pollution and greenhouse gases when procuring road transport vehicles. It reasoned that cost was still a barrier, so the directive’s incentivisation of cleaner vehicles is still relevant, but it sought to ind out why this hadn’t stimulated demand as much as expected. Stakeholders and members of the public were invited to give feedback earlier this year. Axel Volkery of the European Commission’s mobility and transport department (DG MOVE), said the results suggested it was outdated, focused too much on energy eficiency, and didn’t address issues at an Member State level. The proposed revisions could require all public authority vehicles, including rentals and those used by private companies such as contractors who are supplying services to these bodies, to be included. In turn, it’s hoped that this could lead to much wider adoption.
Subscribe NOW! For all your global fleet needs, visit fleetworldsubscriptions.co.uk
to receive International Fleet World every month.
NEWS from the global fleet community
INSIGHT from experts into the fleet industry
ADVICE best practice for running your fleet
internationalfleetworld.com / 23
FEATURE Electric Vehicles
Nissan offers a home energy storage system, xStorage, which re-uses battery cells from end-of-life electric vehicles.
Supporting residual values With contract hire underpinning much of Europe’s fleet sector, used vehicle demand and the resulting residual values play a large role in the afford‐ ability of new vehicles. This can be problematic as technology advances, and used vehicles look outdated next to their latest counterparts, and consumers see they can benefit from waiting a few years to invest. Ronald J. de Haan of LeasePlan says incentives have to apply to the second buyer as well as the first. “The opera‐ tional subsidies are really very impor‐ tant for leasing companies as we take the risk on RVs. How much are consumers, the second users, prepared to pay for EVs? That’s a big question. If they have these operational benefits there is a willingness to invest and buy an EV. If not, it’s difficult.”
24 / internationalfleetworld.com
With plug‐in vehicles, maximising the residual value means moving stock between markets to find the best in‐life advantages. Norway, for example, is the only country with VAT exemption for these vehicles – it equates to a 25% incentive, which has improved RVs for domestic vehicles, and created a grow‐ ing market for imports. Even so, famil‐ iarity is vital, he added. Demand and values for used examples of the Toyota Prius suffered in Germany after launch,
because of false rumours that the battery packs failed after five years. They have recovered since. But it’s not just the vehicles them‐ selves. There’s potentially untapped value in the battery pack, and manu‐ facturers are looking at ways of ensur‐ ing that the most expensive component of an EV is still worth something after the rest of the vehicle reaches the end of its life. Francesco Gattiglio, EU affairs manager at EUROBAT, which repre‐ sents 90% of Europe’s battery industry, said the challenge now is to under‐ stand the ageing process and predict the lifespan better, as well as to provide a second life as energy storage units. Better management systems, which balance wear across the cells in a battery pack, are also vital for making sure the hardware is suitable for second‐life use.
For all your fleet electric vehicle needs and to stay up to date with the latest news and developments, visit
EV Fleet World
FEATURE Diesel Vehicles
It has enjoyed cult status, being adopted by the mass market and engulfed in scandal. But what does the future really hold for diesel and what are the likely implications for fleets? Maarten Baljet tries to make sense of it all.
26 / internationalfleetworld.com
ithin the next two months the European Parliament will vote to inalise the structure of a new way of assessing and monitor‐ ing fuel economy claims and emissions from new cars – ushering in two new acronyms which will soon become common among leet operators. Discussions about the future of diesel‐powered passenger cars are at an all‐time high, with a number of topics on the agenda. Seemingly never‐ending headlines on manipulated diesel powertrains, emissions limits being exceeded time and time again, criminal investigations against renowned car manufacturers and diesel bans in cities are just a few of the cases for the prose‐ cution on the anti‐diesel side. It is fair to say that the attractiveness of diesel is declining and European new car sales igures indeed conirm this negative trend. The share of diesel cars has been decreasing gradually year by year. But does this mean that the demand for used diesels is also drop‐ ping? In the past months, many opin‐ ions and observations have been shared in the media. The range of views is rather large, as they vary from “massive loss of value” to “stable” or even “increasing”. Taking into account the amounts that are at stake, many parties in the automotive industry are trying to narrow down what is actually going on and what can be expected for the future.
Changing RVs for diesel To begin with, from what can be noted from regular market observations, it is rather clear that the residual value posi‐ tioning of diesel powertrains is chang‐ ing. This is not only true since today, given that the residual value risk for diesel cars has been increasing long before ‘Dieselgate’ came to light. One of the main reasons for the higher risk related to diesel cars is the mismatch between the new car buyer and the used car buyer. The former focuses on oper‐ ating costs and considers high annual mileages, while the used car buyer, at the very most a private person, has different requirements for their car and does not necessarily prefer diesel power. While the B2B‐share among the new car buyers has risen, the pressure on
diesel used car values has increased. However, it has not increased overnight. Furthermore, with plenty of used cars on offer, an increasing general preference for cars with lower mileages has had the effect that those with higher mileages have started to suffer from declining demand. As the average mileage of diesel cars is higher than that of cars powered by a petrol engine, the mileage trend has mainly affected diesel cars. Thirdly, city bans for (mostly old) diesel cars have already been discussed in various European cities, albeit not as well‐covered by the media, before Paris and Stuttgart. All in all, the decline in diesel attractiveness has been coming slowly, but surely. The news about the diesel scandal and its aftermath have now shaken up the industry and have caused uncertainty among used car buyers.
Future of the diesel fleet So does this decline mean that diesel cars within leasing portfolios now present a large risk? No, in most cases they do not. In part, residual value fore‐ casts are based on analogies. The current situation can be compared with the introduction of three‐way catalytic converters. At that time, it was said that used car values would plummet, but that did not happen. Nevertheless, diesel used car values are going down over a long period, which has to be carefully factored in by the leasing companies. Actually, the large majority of leasing companies have been closely monitoring
“ It is fair to say the attractiveness of diesel is declining and ACEA figures confirm this .” Marteen Baljet, director, sales and consulting, BF Forecasts the latest news on this development since the diesel scandal became known so that we do not see a large risk and are prepared for any problems that may arise. Having said that, of course, it does make a big difference when either small diesel cars are concerned or full‐size SUVs. While demand is dropping relatively quickly in lower segments, some time will pass before SUV drivers forego diesel engines. Even then, the effect on used car values will be limited, because decreasing prices will create new demand. That demand can also come from countries in which regulations regarding urban pollution levels are not yet on the table and the diesel discussion has not yet started to dominate the news. Thus, the dramatic collapse in the diesel market that is expected by some will not happen. Diesel used values are dropping at different speeds according to country, geographic area (rural or urban) and car segment. Eventually, for a risk manager, the velocity of the demand shifts and the reac‐ tion time of the involved parties will be the critical factor. Furthermore, leasing compa‐ nies with an eficient cross‐border remar‐ keting network will be on the inside track.
Diesel shares by vehicle segments over 16 countries* 100%
Total Mini Small Compact Car Middle-Class Higher-Middle-Class Off road/SUV Van
*Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Italy, Latvia, Lithuania, Netherlands, Slovakia, Spain, Sweden, United Kingdom
internationalfleetworld.com / 27
FLEET FOCUS Turkey
Turkish delight as used market booms Recent tax increases in Turkey have affected both the new and used markets. Autorola Turkey’s country manager Oğuzhan Saygı looks at the impact of these taxes and outlines the country’s very first used values guide.
28 / internationalfleetworld.com
he Turkish Motor Show in Istanbul closed its doors on the last day of April having reported impressive visitor volumes. This show took on extra significance for the auto industry following the government’s decision to increase its special consumption tax in late 2016. In addition to an 18% rate of VAT, there is a 45% special consumption tax for cars below 1,600cc which is calculated from the list price VAT included. This tax is rated at 90% for vehicles between 1,600cc and 2,000cc and 145% for cars with engines over 2,000cc. TURKEY VEHICLE CONSUMPTION TAX
engines below 1600cc engines between 1,600cc and 2,000cc
% special consumption tax
engines over 2000cc
150 140 130 120 110 100 90 80 70 60 50 40 30 20 10 0
Models costing 40,000‐70,000 lira have seen a price rise of around 3% thanks to the new tax and the government claims the changes will add around an additional three billion lira to its budget. More importantly the move hits those luxury cars that are imported from outside Turkey, therefore making the mass‐ market cars made in the domestic market better value for money. NEW CAR SALES SLOW DOWN This tax increase has already stalled new car sales but has ignited consumer demand for used cars. The Turkish used car market is around 3.5 million used cars in size and is still in its infancy. Autorola has spent much of its irst three years in the country helping set up processes with OEMs, rental and leasing compa‐ nies and dealers to maximise the value of their used car stock. Historically much of the used car business has been based just around Istanbul. The used market is now maturing quite quickly and trade buyers have been very open to purchasing used cars online.
“There has been major investment in the country’s transport infrastructure which will also help take away the focus just on Istanbul as the economic capital of Turkey.” internationalfleetworld.com / 29
FLEET FOCUS Turkey
Autorola has signed up 10 major vendors in the past 12 months which reinforces the response for online remarket‐ ing. Turkey is a big country and it is uneconomical to keep moving vehicles round to sell them. This vendor growth has helped us provide a wide mix of stock for buyers which they have responded to very well. Like so many countries in Europe, OEMs have begun to launch personal leasing brands to drive new car sales with the aim of helping consumers change their mindset from owning to leasing a car. OEMs hope to woo consumers to combat the recent tax increase. They hope to make new cars more affordable by educating users about a monthly lease fee rather than paying for a car outright which historically is what they have done. CURRENT MARKET PERFORMANCE In 2016, 756,938 new cars were sold in Turkey, a 4.3% rise over 2015, one in three (32%) of which were manufactured in Turkey. Not surprisingly because of the high levels of tax on new cars, 82% of cars sold were in A, B and C sectors. The C‐ sector comprised around 50% of all sales. Automotive producers, such as Toyota, Renault, Fiat, Ford, have manufacturing operations in Turkey. The country's auto‐ motive sector was the biggest exporter last year with around $23.9 billion in exports, up from $21.3 billion in 2015. On the back of this success there has been major invest‐ ment in the country’s transport infrastructure which will also help take away the focus just on Istanbul as the economic capital of Turkey. Better road networks will help spread the external investment to other cities and Autorola is playing its part by running regional online used car auctions in nine different cities. It’s all about local buyers being able to buy used cars from both local and national vendors. The response has been posi‐ tive from buyers as they are getting the chance to bid on stock that would normally end up in Istanbul. Typically smaller used cars between 50‐60,000 lira are most popular in Turkey at an average age of 24 months/50‐
30 / internationalfleetworld.com
60,000km. Used VWs, Mercedes and BMW are popular as are the more mainstream models from Renault and Fiat. PUTTING A PRICE ON USED One challenge for the Turkish market is to know what used cars are worth. Until the recent launch of Autorola’s INDI‐ CATA real time used vehicle pricing system in January the country did not have a used vehicle guide for the industry to refer to. INDICATA will help both the OEM and local dealer under‐ stand the true value of used cars based on local demand and supply. The system takes a regular online scrape of websites advertising used cars and its dashboard enables a dealer or asset owner to understand the true supply and pricing of all used cars both nationally and regionally. Dealers can use the data proactively to sell more used cars and importantly reduce stocking days. They will be able to adjust prices up or down on a weekly basis to ensure their used stock remains competitive and only buy in new stock that they know is in high demand. INDICATA gives the market the most dynamic insight into the used industry and OEMs and their dealers are already actively piloting the system. For companies by far the most cost effective purchasing route is through leasing and this sector continues to grow, feeding in a steady supply of three year old ex‐fleet stock into the used market. Tourism numbers are down after the recent security scares in the country which has reduced supply of the six‐month‐old used stock coming into the market. However the government is chasing new tourists from outside Europe such as China, India and Russia which will hopefully make up some of that shortfall. Turkey is a rapidly changing country that is experiencing lots of different changes across all aspects of industry. The automotive sector is an important part of our economy and is well placed to continue to grow from a new and used perspec‐ tive. Ultimately further maturity of the used market with dealers helped by the likes of INDICATA will ensure Turkey quickly catches up with other European countries.
Turkish economics After a referendum in April, Turkey has turned its attention to reducing unemployment and increase industrial production. The initial signs are positive.
he economic recovery in Turkey continues to gain traction as political noise linked to April’s referendum abates. Industrial production expanded for a sixth month running in March, while both consumer and business sentiment gained ground in the aftermath of President Recep Tayyip Erdogan’s victory in his quest to transform Turkey into a presidential regime. Economic confidence has been rising in recent months as growth‐inducing measures from Ankara continue to be felt among Turkish households. In a bid to shore up Turkey’s labour market – the unemployment rate rose to a seven‐year high in January – the government also launched an employ‐ ment campaign that is expected to be reflected in February’s print and onwards. Although these measures will provide respite to the ailing domestic economy, massive government‐led stimulus risks creating a hole in the state’s finances, with the fiscal deficit already widening substantially in Q1. Building on Q4’s strong rebound, the Turkish econ‐ omy is expected to prove more resilient than origi‐ nally expected this year despite myriad headwinds. In addition, a narrow victory for Erdogan will ensure some degree of stability until elections are held in 2019, which paves the way for potentially higher investment inflows. FocusEconomics panelists expect the economy to expand 2.7% in 2017, which is up 0.3 percentage points from last month’s esti‐ mate. In 2018, the panel expects growth of 3.1%. Industrial production in Turkey rose by a calen‐ dar‐adjusted 2.8% in March compared to the same month last year, well above February’s 1% increase. According to the Statistical Institute, the accelera‐ tion was due to a better performance in the manu‐ facturing sector and a smaller contraction in mining and quarrying output growth.
Industrial production expanded by 1.3% in season‐ ally‐ and calendar‐adjusted month‐on‐month terms in March, contrasting February’s 0.4% drop. Annual average growth in industrial output was steady in March at February’s 1.3%. FocusEconomics Consensus Forecast panelists expect industrial production to rise 2.4% in 2017, which is down 0.1 percentage points from last month’s estimate. The panel sees industrial output increasing 3.0% in 2018. Consumer prices In Turkey increased 1.31% compared to the previous month in April. The igure was above the already sizeable 1.02% rise registered in March and matched analysts’ expectations of a 1.30% jump. According to the Turkish Statistical Insti‐ tute, the rise was due to soaring prices for clothing and footwear, and food and non‐alcoholic beverages. The pass‐through effect of the weakened lira has been felt since the end of 2016, driving inflation to multi‐year highs. Inflation accelerated from 11.3% in March to 11.9% in April, the highest reading since October 2008. Annual average inflation rose from February’s 8.2% to 8.7%, a near‐two‐year high. FocusEconomics panelists expect inflation to close 2017 at 9.2%, which is up 0.1 percentage points from last month’s forecast. For 2018, the panel sees inflation moderating to 8% by year‐end.
“Inflation accelerated from 11.3% in March to 11.9% in April, the highest reading since October 2008.”
Information provided by FocusEconomics
internationalfleetworld.com / 31
Skoda scales up Skoda aims to support continued sales success with an enhanced SUV offering, with the new Karoq poised for launch in global markets…
“The primary focus of our model campaign for the Chinese market is the expansion of our SUV range.”
32 / internationalfleetworld.com
Manufacturer Skoda Total key region sales 2016 1,127,700 Headquarters Mladá Boleslav, Czech Republic Global market share 1.2% No. of models 9
from the top
Investment in global markets
koda established a new sales record in 2016, achieving 1,127,700 global sales, up +7% year‐on‐year. The result was boosted by the launch of the Kodiaq SUV and revised Octavia towards the end of the year, helping Skoda to achieve the best December in the company’s history (86,600 sales). Kodiaq marks the launch of Skoda’s SUV campaign, bringing new growth potential as part of the ‘2025 Strategy’, which is focused on bringing greater profitability to the Volkswagen Group. Skoda’s most popular global model in 2016 was Octavia hatchback, with 436,300 total sales (+1%). The brand manufactured its 1.5‐millionth third‐ generation Octavia at the Mladá Boleslav plant in May 2017, and the facelifted model will be launched in India later this year. Skoda’s second best‐selling model was Rapid (212,800; +10%), followed by Fabia (202,800; +5%) and Superb (139,100; +73%), boosted by the addition of higher trim levels. In Western Europe, Skoda grew by +6% to 455,200 total sales in 2016. In Germany – the second‐strongest global market – Skoda’s sales increased by +4% to 165,200 vehicles, strengthening its position as the strongest foreign brand. Skoda also achieved double‐digit growth in Italy (+24%), Ireland (+21%), France (+13%) and Finland (+11%). The brand also recorded strong growth in Eastern Europe, with a +7% increase in sales to 35,100 vehicles in 2016. In individual markets, Skoda achieved very strong growth in Ukraine (+58%), Bosnia (+23%), Romania (+14%) and the Baltic States (11%). Skoda’s sales in the home market of the Czech Republic increased by +4% to 88,000 units. The brand achieved double‐digit sales growth in Croatia (3,500 vehicles, +12.7%), Poland (56,200 vehicles, +12.3%) and Slovenia (6,300 vehi‐ cles, +10.8%) last year. Skoda also achieved positive sales in international markets, particularly in Turkey (+30%) and Israel (+15%), while deliveries in China (Skoda’s largest market worldwide) increased by 13% to 317,100 vehicles in 2016. To support growth in the region, SAIC Motor Corporation Ltd (a Chinese state‐ owned automotive design and manufacturing company headquartered in Shang‐ hai), Skoda and Volkswagen recently agreed a five‐year investment plan, with the intention of adding vehicles with alternative drive systems and several SUVs to the range, built on Volkswagen’s MQB platform. “Since we entered the Chinese market ten years ago, Skoda has developed very positively in the Chinese automotive market,” commented Skoda CEO Bern‐ hard Maier. “Today, more than a quarter of our total annual sales are delivered to customers in China. The primary focus of our model campaign for the Chinese market is the expansion of our SUV range. Our goal is to double our deliveries in the market to over 600,000 units by 2020.”
Skoda Global sales, by territory Territory Western Europe Central Europe Russia China Turkey Total
2015 430,900 172,100 55,000 172,100 22,230 1,055,500
2016 455,200 183,800 55,400 183,800 28,900 1,127,700
% change +6% +7% +0.5% +7% +30% +7%
UK head of fleet Henry Williams on the expansion of the SUV range and Skoda’s commitment to fleet customers. How will forthcoming Karoq strengthen Skoda's portfolio? Kodiaq set an important milestone in the expansion of our SUV range, and the launch of Karoq, our compact SUV, will further strengthen our posi‐ tion in this growing segment. Our SUV story started with the Yeti, eight years ago, which has been an important part of our model range contributing to 10% of global Skoda sales. Although borne out of the success of Yeti, Karoq is an entirely new vehicle in its own right and we expect Karoq to outperform its predecessor. Is there an intention to offer executive trim levels across the range? Executive trim levels are about luxury and advanced technology for the ultimate driving experience. There is demand to achieve this for our business customers, and we have introduced the Laurin & Klement trim on the Skoda Superb that caters for even the most demanding of drivers. We also have further editions of the Kodiaq launching with Kodiaq Scout arriving at the end of this year and Sportline at the start of 2018. Are alternatively fuelled vehicles an important R&D area? We are continuing to manufacture conventional engines, because put simply, our customers still want them and they will continue to do so in the future. However, the car industry is undergoing radical change with the advancement of electromobility. We are starting to develop electric engines for our cars and in the irst phase we are concentrating on plug‐in hybrids, the irst being a Superb PHEV, with our irst purely electric series‐produced vehicle to be released shortly after.
internationalfleetworld.com / 33
Manufacturing plant locations
are they made?
4 1 2 3
Asia Aurangabad plant, Maharashtra, India – Octavia, Superb. Pune plant, Maharashtra, India – Rapid. SAIC Volkswagen Automotive Company; Anting, Yizheng, Nanjing, Ningbo, Changsha; China – Fabia, Yeti, Rapid, Superb, Octavia, Kodiaq.
3 4 5
FIN fleet in numbers
The number of Octavia’s sold globally since launch in 1996.
€2 billion Investment pledged by SAIC Ltd and Volkswagen Group to grown market share in China.
+73% Global uplift in sales of Superb, following the launch of the third-generation model.
34 / internationalfleetworld.com
Europe Mladá Boleslav plant, Czech Republic – Fabia, Octavia, Rapid. Kvasiny plant, Hradec Králové Region, Czech Republic – Superb, Yeti, Kodiaq, Rapid. Bratislava plant, Bratislava, Solvakia – Citigo. Kaluga plant, Kaluga, Russia – Rapid. Nizhny Novgorod, Volga, Russia – Octavia, Yeti.
Karoq strengthens SUV offering
ew Karoq SUV will replace Yeti to provide a direct rival for models such as the Nissan Qashqai and SEAT Ateca. Available to order from the second half of the year and due in show‐ rooms in 2018, the new compact SUV offers more conventional styling than Yeti, and sits under the newly launched Kodiaq large SUV. Karoq also uses a naming and spelling convention derived from the language of Alaska’s indigenous people, in this case a variation of ‘arrow’ – this system will be deployed for future SUV models too. Narrower and lower than the Yeti but longer in length and wheelbase, Karoq offers increased luggage capacity ranging from 521 litres to 1,630 (Yeti: 416‐1760), which can also be extended up to 1,810 litres with the removal of the seats. As with Yeti, Karoq also offers the rear‐seat VarioFlex system that enable the rear bench to be folded or removed, as well as a hands‐free tailgate. The engine line‐up will cover ive units, of which four are newly developed. Petrol engines cover a 115hp 1.0 TSI and a 150hp 1.5 TSI, the latter with cylinder deactivation. Diesels comprise a 115hp 1.6 TDI plus 150hp and 190hp 2.0 TDI units, the most powerful getting all‐wheel drive as standard. Equipment includes full LED headlights and digital instrument panel. Connec‐ tivity features echo the line‐up seen on the facelifted Octavia, and include a range of infotainment systems, one with an optional LTE module, and the latest Connect technology comprising Infotainment Online services along with real‐time navi‐ gation details and the Care Connect package, which provides remote access as well as assistance. Skoda has also provided an insight into its forthcoming electric vehicle plans, with the unveiling of a ive‐door crossover coupe concept named Vision E at the start of the year. Vision E is based on the Volkswagen Group’s MEB platform for electric vehicles, which is also used for Volkswagen’s ID Concept. Similar in size to Kodiaq, the model is powered by two electric engines, with a range of up to 500km on the NEDC cycle. Skoda will launch ive pure electric vehicles in various segments by 2025, with the irst model due in 2020. This follows the launch of the recently announced plug‐in hybrid Superb in 2019, with other models also earmarked for a plug‐in hybrid variant.
SKODA fleet model range
Variants: 3/5dr hatch Markets: Europe. Fuel: 4.1-4.4l/100km CO2: 95-103g/km
Variants: 5dr hatch/wagon Markets: Europe, Asia, Africa, Oceania. Fuel: 3.8-4.8l/100km CO2: 100-109g/km
Rapid/Rapid Spaceback Variants: 5dr hatch Markets: Europe, Asia, Africa, Oceania. Fuel: 3.9-4.8l/100km CO2: 103-113g/km
Rapid (India) Variants: 4dr sedan Markets: : India.. Fuel: 4.6-6.7l/100km CO2: 122-157g/km
Octavia Variants: 5dr hatch/wagon Markets: Europe, Asia, Africa, Oceania. Fuel: 3.9-6.6l/100km CO2: 102-154g/km
Variants: 5dr hatch/wagon Markets: Europe, Asia, Africa, Oceania. Fuel: 3.7-7.2l/100km CO2: 95-164g/km
Variants: Crossover Markets: Europe, Asia, Africa, Oceania. Fuel: 4.5-5.8l/100km CO2: 118-134g/km
Variants: SUV Markets: Europe, Asia, Oceania. Fuel: 4.9-7.3l/100km CO2: 129-168g/km
Variants: Crossover Markets: Global Fuel: 4.4-5.3l/100km CO2: 115-138g/km
internationalfleetworld.com / 35
EVENTS NAFA 2017
Fleets in Florida The 2017 National Association of Fleet Administrators (NAFA) Institute and Expo took place in April – and there lots to see and listen to. By John Challen.
s if Florida in April isn’t tempt‐ ing enough, holding a trade show there gave many in the global leet community the perfect opportunity to make the journey to Tampa Bay. NAFA 2017 saw record numbers of visitors through the doors and a posi‐ tive response from them and exhibitors alike. There was also a lot of recogni‐ tion for industry igures throughout the event, with 40 individuals celebrated for earning Certiied Automotive Fleet Manager (CAFM) certiication in 2016‐ 17, while 42 individuals advanced toward their CAFM, earning Certiied Automotive Fleet Specialist (CAFS) certiication. In addition, Ferris State University student Hayden Gallagher was named the recipient of the 2017 Willard DaSilva Scholarship, presented by the NAFA Foundation.
presentation was Doug Keeley, CEO of ‘The Mark of A Leader’. Keeley was also one of the keynote speakers for NAFA and inspired attendees on the opening morning with tales of his success and advice on how to best lead organisa‐ tions and inspire workers to reach their potential. Thursday’s general session – the fleet management company executive panel – informed attendees via the insight and unique perspectives from a number of major players in the auto‐ motive fleet world. These include Dan Frank, president, Wheels, Inc.; Kristi Webb, president and CEO, North Amer‐ ica, Element Fleet Management; Chris Conroy, president and CEO, ARI; Tom Callahan, president, Donlen; Norman Lyle, president, EMKAY Canada; and Jeffrey Schlesinger, president and CEO, LeasePlan USA.
Networking events such as the Chapter Appreciation Luncheon and the Wednesday evening networking event drew rave reviews from attendees. Tuesday night’s Fleet Excellence Awards (FLEXYs) presentation was met with a packed house as the most‐ accomplished leet managers in the profession were honoured. Compère of the FLEXY Awards
On the show loor, exhibitors had come prepared with news and products to launch. Verizon Telematics took the opportunity to announce the availabil‐ ity of Electronic Logging Device (ELD)‐ ready bundles that address the needs of leets requiring an ELD solution. The bundles meet technical speciications and also – according to the company – ‘serve as a one‐stop shop for customers
36 / internationalfleetworld.com
who need to meet the ELD mandate requirements before the deadline’. In other ELD news, TomTom Telem‐ atics’ recently launched WEBFLEET ELD Manager was shown in Florida. This turnkey electronic logging solution enables leets to meet the new FMCSA ELD mandate surrounding hours of service (HoS). The FMCSA’s ELD rule is intended to help create a safer work environment for drivers, and make it easier and faster to accurately track, manage, and share records of duty status (RODS) data. An ELD synchro‐ nises with a vehicle engine to automat‐ ically record driving time, for easier, more accurate HOS recording. The new system incorporates hard‐ ware and software components to help fleets comply with the FMCSA mandate. Key components include: TomTom PRO 8275M/8275M TRUCK, TomTom LINK 530, and a dedicated application for HOS and driver vehicle inspection reports (DVIR) recording, powered by eFleetSuite from ISE. Corporate payment systems provider WEX Inc., launched its ClearView Advanced platform during the NAFA 2017 Institute and Expo. A develop‐ ment of the first iteration product for fleet analytics and benchmarking – ClearView Essentials – ClearView Advanced has been developed with the help of leading US fleets. The company confirmed that it was tested with fleet managers representing more than 45,000 vehicles over a 12‐month period. While testing the new plat‐ form, WEX was able to change the poor purchasing decisions by more than 80% of drivers who received a targeted text message or email.
Finally, The Global SafeDrive Alliance demonstrated its new global reporting dashboard. The alliance is formed by three leading leet driver safety companies – CEI Group, Inc., CEPA SafeDrive, and VVCR International – and the inten‐ tion is to deliver the irst turnkey,
fully integrated multinational leet safety programme. The global reporting platform includes reports on accident rates, injuries, accident types, preventable versus non‐preventable accidents, driver training compliance rates and customised benchmarking criteria,
among others. Regional and local reports are accessible through perti‐ nent alliance member links. Representatives from each Global SafeDrive Alliance member were keen to discuss and present all aspects of the global reporting portal at the expo.
internationalfleetworld.com / 37
SEAT Ibiza Previewing a new generation of products, the Ibiza is a class act, says Alex Grant. SECTOR Supermini PRICE €14,000-€20,000 FUEL 4.7-4.9l/100km CO2 106-112g/km
s the longest‐serving member of the SEAT range, the Ibiza has lived through 33 years of near‐ constant change. Originally based on Fiat parts, then sold under the early days of Volkswagen Group owner‐ ship, and a spearhead for the brand’s design since, genera‐ tion ﬁve feels like the product of a renewed sense of conﬁdence in Barcelona. With good reason; global sales have grown 30% over the last four years, to 408,700 in 2016, largely down to the broader Leon range but also due to the popularity of the Ateca crossover which launched last year. It’s proﬁtable and, with a recognisable family style and a focus on brand‐ relevant segments and core models, it’s ﬁnally found its place within the Group portfolio. The Ibiza isn’t just signiﬁcant for SEAT. This is the ﬁrst car on the new Volkswagen Group supermini platform, so what’s underneath it will be shared not only with SEAT’s Juke‐sized Arona crossover, but with the next Audi A1, Volkswagen Polo and similar‐sized products. SEAT is previewing what’s coming soon. would have otherwise bought an estate, and given the It bodes well. At nine years old, the outgoing Ibiza was limited demand for three‐door superminis, the Ibiza will fun to drive but felt like a small car. The new platform, only be offered as a five‐door hatchback this time, with which is wider, has a longer wheelbase, larger no plans for a high‐performance Cupra diameter wheels and a stiffer, lighter struc‐ version. Trim levels vary by market, but are FLEET FACT ture, can rival larger cars on both ride and always topped off with either the sporty‐ handling. It drives like a small Leon, which is looking FR, or the luxury‐focused Xcellence – a good thing. the only model to get parking sensors and The Ibiza’s However, behind the taut bodylines, the all‐ electric rear windows. platform will be LED headlights ﬁtted to mid and high‐spec SEAT claims Ibiza customers are younger shared by the versions, and the upmarket design of the cabin, than the segment average, so there are plenty next A1 and Polo. it does feel a bit like SEAT has been denied the of class‐above options to pick from, but stan‐ pick if the Volkswagen Group plastics – partic‐ dard equipment is fairly generous. Mid and ularly the matte grey panel across the dashboard on lower‐ high‐spec versions get a frameless eight‐inch touchscreen, spec versions. Otherwise, it’s very diﬃcult to fault. which is lag‐free and intuitive to use. Reasoning that the Arona will pick up customers who However, the full Apple CarPlay and Android Auto connectivity package is only standard equipment at the top of the range. It’s a cheap option, but would have been appropriate to the target audience. Ibiza sales are more petrol‐weighted than most super‐ minis, even in ﬂeet, and the latest version has some good options. It’s the 115hp 1.0‐litre turbo that’s the most appealing – quiet, keen to rev and with plenty of motorway ability – but it’s not available across the range. The big‐ seller is expected to be the 95hp version of the same engine, which offers the same fuel economy on paper, and is offered across the range. It seemed noisier on the launch, and has ﬁve gears instead of six – this might make it less eﬃcient in real‐world use. Diesel versions will follow shortly after launch. There’s a lot to like here, and a lot to look forward to from other Group brands if this is anything to go by. SEAT has put itself among the best in its class here, with a core part of its line‐up. But, with a new Fiesta only a few months away, it could have a tough ﬁght on its hands.
38 / internationalfleetworld.com
what we think The Ibiza manages to offer both the agility of a supermini with the ride quality and refinement of a larger car â€“ which bodes well for other Group products on this platform. Itâ€™s a compelling all-rounder.
highlights All-LED headlights on all except the entry-level trim More interior space and a fifth more boot capacity Low-CO2 petrol engines, with diesels to follow
internationalfleetworld.com / 39
Mercedes-Benz E 350 e The excellent new E-Class joins the plug-in hybrid set, with the usual pros and cons, says Alex Grant. SECTOR Executive PRICE €63,000-€68,000 FUEL 2.1-2.5l/100km CO2 49-57g/km
ith Lexus seemingly the only brand to carve out braking or to assist the petrol engine. But, even with the a decent‐size niche for executive‐class hybrids encouragement of a throttle pedal which pulses to suggest in Europe, the German brands are switching to opportunities to coast, and gently resists a harder press plug‐in technology. Which, for the E‐Class, seems a bit of which would take it out of its all‐electric mode, this is not a a shame. straight substitute for a four‐cylinder diesel engine. The old While Audi and BMW pursued petrol hybrids at the start of diesel hybrid E‐Class was. the decade, the old E‐Class sensibly paired an electric motor On the upside, petrol hybrid technology suits the character with its 2.2‐litre diesel engine, resulting in best‐in‐class fuel of the E‐Class perfectly. It’s an unobtrusive system, switching economy and a setup which could be used just as effectively almost imperceptibly between petrol and electric power and in the C‐Class. But, with tax advantages making barely any noise. Ride quality on favouring plug‐ins, the E‐Class won’t get a the standard‐ﬁt air suspension is excel‐ hybrid based on its excellent new 2.0‐litre lent, interior ﬁt and ﬁnish is impeccable diesel this time around. and the motor‐assisted straight‐line Instead, the E 350 e is a plug‐in hybrid performance is impressive. The only based on a 2.0‐litre petrol engine, assisted drawback is that activating Apple CarPlay by an electric motor which can boost the – even without using Apple Maps – power to 286hp under heavy accelera‐ disables the built‐in navigation system. tion. More signiﬁcantly, for ﬂeets, the With it, the E 350 e loses its ability to pre‐ battery is mains‐rechargeable and offers a plan energy usage for the route ahead. much larger 6.2kWh capacity, with a There’s no question that electriﬁcation longer electric range and low CO2 emis‐ is going to become more important for sions as a result. On‐road performance, large cars like the E‐Class. Tesla has pricing and trim levels is close to the six‐ shown it can work, the 5 Series plug‐in cylinder E 350 d diesel. hybrid is on the way, and public opinion But, as is often the case with plug‐in on the diesel engines that dominate this Great technology let hybrids, the E 350 e suits a very speciﬁc segment is shifting. Fundamentally it down by common user. A full charge takes an hour and a works brilliantly here, but the E 350 e is plug-in hybrid probhalf, giving enough energy for around held back by a limited battery capacity lems; a limited electric 27km of electric driving, after which it and short ranges, which leave it reliant range and a petrol becomes a conventional petrol hybrid. on a relatively ineﬃcient petrol engine. There’s some impressive technology on It’s a step in the right direction, but the engine more focused board, including the ability to use navi‐ next generation of hybrid executive on performance than gation data to pre‐plan mid‐route charg‐ saloons will need more sector‐relevant fuel economy. ing for electric driving in towns, and ranges if they’re to be as eﬃcient on fuel when to use the motor for regenerative as they are on tax.
what we think
40 / internationalfleetworld.com
Kia Picanto Kia’s third-generation city car has its sights set on the Volkswagen Up, explains Alex Grant. SECTOR City Car PRICE €10,000-€16,000 FUEL 4.2-5.4l/100km CO2 97-124g/km
Kia products, which adds a sports bodykit, bigger alloy ehind the technological strides at the top end of the wheels and twin exhaust tailpipes and – depending on the market, the once‐basic city car is evolving rapidly. A market – is based on the mid trim level. A 7.0‐inch touch‐ segment which poses the challenges of offering screen navigation system, which features Apple CarPlay and comfort, reﬁnement, space and technology within a compact, Android Auto connectivity and TomTom live traﬃc and cost‐effective and economical package. weather information, is also available for the ﬁrst time in the The Picanto, which in its ﬁrst generation was a hint of Picanto – but only on the top versions. changes to come at Kia, is now out to benchmark the best in Depending on trim level, there are three engine and trans‐ its segment. Since the outgoing car launched in 2011, the mission options; a 67hp 1.0‐litre three‐cylinder, and an 85hp Volkswagen Group has shown that city cars can feel as 1.25‐litre four‐cylinder with either a substantial as models in the class above; manual or automatic gearbox. It’s the Kia wants to show it can achieve the same. former that offers the sparkier perfor‐ So, while its footprint hasn’t changed mance, particularly suited to town driv‐ between generations, and neither has the ing, the latter needing to be worked side proﬁle, there’s plenty to talk about harder despite its higher power output. under the skin. Its structure is stiffer and There will also be a high‐power 1.0‐litre lighter, the steering and suspension geom‐ turbo petrol engine, producing 110hp, etry altered to give a more sure‐footed and which is due to launch at the end of 2017. responsive drive, and Kia has better insu‐ All that’s missing is engine start‐stop, lated the cabin from engine and road which Kia will only offer in markets noise. They’re minor changes that add up; where it offers a running cost advantage – the Picanto can still dart around in city not always the case in this segment. traﬃc, but it doesn’t feel overly sensitive But that’s the only big car norm that and noisy at higher speeds. the Picanto does without. Within its Like the new Rio, it’s a single‐bodystyle compact dimensions, the square back model range. Kia says demand for the The cute Picanto end offers a respectable boot for this size three‐door version was too low to justify looks, drives and of car, and room for adults in the back. the tooling costs to build it. Most markets feels more grown up There’s a removable load ﬂoor, which is will be offered a three‐trim line‐up, with than ever. It’s a retaillevel with the rear bench when it’s sales typically weighted towards the mid‐ weighted product, folded, and the dashboard is intuitively spec version which is where features such laid out and accented in silver, if a little as Bluetooth connectivity, autonomous but GT-Line versions lacking in soft‐touch plastics – as per the emergency braking and air conditioning should add to its segment norm. In a class that’s become become standard equipment. user-chooser appeal. increasingly sophisticated, Kia has a very The signiﬁcant newcomer is the addi‐ competitive offer here. tional GT‐Line version, as offered on other
what we think
internationalfleetworld.com / 41
Renault ZOE Z.E. 40 Alex Grant finds out if the longer-range ZOE has become a genuine diesel alternative. SECTOR Supermini PRICE €22,000-€35,000 FUEL 400km range CO2 0g/km
making it better suited to drivers who have occasional long‐ t’s a sign of a changing automotive industry that, ﬁve distance motorway needs. The trade‐off is a slightly shorter years after launch, the Renault ZOE can undergo an overall range, due to the older drivetrain, and the actual under‐the‐skin change and become one of the most charging rate hasn’t increased in line with the battery signiﬁcant new cars on sale in Europe. capacity – an 80% charge takes an hour. Advances in battery technology since 2012 have allowed A more useful electric range is only part of the in‐life Renault to almost double the amount of energy the ZOE can upgrades. The ZOE’s dark cabin materials are less dirt‐ store, without increasing its external dimensions. At prone than the original beige‐on‐white, and mean the dash‐ 41kWh, there’s been a corresponding jump in range; up to top doesn’t reﬂect off the inside of the windscreen like it did 400km on a single charge, instead of 250km for the original on launch cars. Quietly, behind the 22kWh battery. Renault says to expect scenes, the ZOE has evolved into a very around 300km in ‘real‐world’ conditions, conventional‐feeling supermini, which dropping to 200km in the winter. On a just happens to be electric. mild week in April both seem realistic. If you’re picky, the headlights are still Although Tesla has boasted long dim, and the under‐ﬂoor battery pack ranges for several years, the ZOE is makes you feel like you’re sat on, rather signiﬁcant because it brings it into the than in, the ZOE. The R‐Link infotain‐ supermini segment. This is a fully elec‐ ment system feels a little clunky next to tric car which can easily replace a petrol its latest iteration, too, though it does or diesel equivalent, enabling longer now have a useful app which monitors journeys or extended duty cycles, and Europe‐wide charging point availability broadening the technology’s appeal. in real‐time. And the Z.E. 40 battery lease Most markets will get two versions adds a €10 per month premium over the with the new battery. The R90, tested old battery, topping out at a €119 per‐ here, uses the updated 92hp motor month fee for unlimited usage. It’s a which had stretched the 22kWh The ZOE tackles the versatile EV, but a diesel Clio might make battery’s range to 250km, and gets the main EV barriers – more ﬁnancial sense. same advantages. It’s more energy‐effi‐ range anxiety and But the ZOE is signiﬁcant for bringing cient, a little quieter at speed, and charging availability – long‐range electric motoring into a class designed to offer quicker charging on a head on. It’s a brilliant where it’s well suited. It’s good to drive, domestic socket. However, the cable practical and the technology works well – needed to charge this way is optional, supermini, but pricey this might not be one of the newcomers and it takes around 30 hours to ‘brim’ compared to an effiany more, but it’s delivering what others it this way. cient petrol or diesel. are promising years in the future today, For a price premium, the ‘Q90’ can and a very important launch with it. rapid charge at twice the rate of the R90,
what we think
42 / internationalfleetworld.com
Subscribe now! For all your global fleet needs, visit fleetworldsubscriptions.co.uk to receive International Fleet World magazine every month.
NEWS from the global fleet community
INSIGHT from experts into the fleet industry
ADVICE best practice for running your fleet
INTRODUCING THE NEW VOLVO XC60
SAFEGUARDING THE FUTURE OF FLEET Identifying potential risk is invaluable in business, as is an accurate response. The New Volvo XC60 with new-generation City Safety reacts in a fraction of a second – faster than humanly possible – to detect hazards and steer your drivers to safety. It’s one of many world-ﬁrst and SUV-ﬁrst advancements designed to keep your organisation moving forward. Discover more by contacting our Global Fleet Sales Business Centre. EMAIL GLOBALFLEET@VOLVOCARS.COM OR CALL 00 46 313258377 Ofﬁcial fuel consumption for the new Volvo XC60 in l/100 km: Urban 9.3 – 5.8, Extra Urban 6.2 – 4.7, Combined 7.3 – 2.1. CO2 emissions 167 – 49g/km. L/km ﬁgures are obtained from laboratory testing intended for comparisons between vehicles and may not reﬂect real driving results.