Fleet Europe °84

WWW.FLEETEUROPE.COM

FOR INTERNATIONAL FLEET AND MOBILITY LEADERS 0#84 6/2016

SPECIAL CAR LEASING

THE WAY TO DRIVE YOUR BUSINESS FORWARD COULD BE PLEASURE…

Nexus Communication - Fleet Europe #84 - Periodic magazine - June 2016 - Deposit Office Liège X

24 PAGES

BART BECKERS (ARVAL)

JOSE LUIS CRIADO

KENT BJERTRUP

(LEASEPLAN INTERNATIONAL)

(ALD INTERNATIONAL)

The Challenges of the Giants

ANALYSIS Short Term Rental goes B2B

FACE TO FACE

“Connectivity will change fleets” CARLO BERTOLINI

CHIESI FARMACEUTICI

GIOVANNI TORTORICI BARILLA

TECHNOLOGY TO ENJOY Lessors in Mobility mode

45

p.

SEAT FOR BUSINESS Average fuel consumption: 4.3 - 6.2 l/100 km. Average CO2 mass emissions 112-143 g/km. Provisional data.

FOLLOW US ON:

SE AT.COM

WIRELESS CHARGER When your smartphone battery runs low, simply place it on the Wireless Charger to begin recharging.

…IF YOU CHANGE YOUR POINT OF VIEW THE NEW SEAT ATECA

TOP VIEW CAMERA Parking and tricky manoeuvres are made easy and effortless with the Top View Camera.

It shows you views around the whole vehicle.

BOOT CAPACITY There’s between 510 and 1604 litres of boot capacity.

Fold down the seats for even bigger loads.

SEAT FOR BUSINESS Average fuel consumption: 4.3 - 6.2 l/100 km. Average CO2 mass emissions 112-143 g/km. Provisional data.

TECHNOLOGY TO ENJOY FOLLOW US ON:

SE AT.COM

CONTENT DIGITAL’S REAL ADDED VALUE

5-37

As fleet management and car lease companies develop flexible products and services suited to the demands of their corporate customers – like car-sharing, mid-term and flexible leasing, or private leasing, they're also embracing connectivity and telematics as value-adding tools.

DOSSIER CAR LEASING Global coverage, unique products and 2016 strategies

But does digital really add value?

Fleet managers see its potential.

But they also fear data overkill. Plus, there's the question of data ownership and privacy.

The main concern, however, is expressed in our Face to Face interview: the suspicion that digitalisation will provide suppliers with yet more opportunity to avoid open and direct communication.

We need innovation to deliver us the integrated mobility of the future.

But technology itself should not become an obstacle between suppliers and their clients.

At its core, the fleet business remains based on service quality and trust, trust between people.

Steven SCHOEFS Chief Editor

38-43

45-46

56-62

FACE TO FACE

MOBILITY

ANALYSIS

Carlo Bertolini

Fleet management companies go the extra mobility mile

Short Term Rental expands its fleet business

- Chiesi Farmaceutici

& Giovanni Tortorici - Barilla

DOSSIER

Private lease, the new buzzword…………………………………………………………………………………………………………… 6-8 European and Global Presence…………………………………………………………………………………………………………… 10-15 Car leasing and fleet management strategies…………………………………………………………………… 18-23 Exclusive car leasing executives debate………………………………………………………………………………… 26-29 The possible benefits of unbundling…………………………………………………………………………………………………………30 Captives’ 4 strong points……………………………………………………………………………………………………………………………………… 32 The sacrifice that is paying off…………………………………………………………………………………………………………………………34 Turkey's growing car lease market…………………………………………………………………………………………………………… 36 Operational leasing rises in Romania…………………………………………………………………………………………………… 37

BUSINESS

Stefan Herbert, Mercedes-Benz' new fleet boss…………………………………………………………………………48

INNOVATION

Apple Car Play, Android Auto and MirrorLink explained……………………………………………50

20 TO 22 SEPTEMBER

15 NOVEMBER

16 NOVEMBER

2016 GLOBAL FLEET SUMMIT Istanbul

FLEET EUROPE REMARKETING FORUM Barcelona

FLEET EUROPE FORUM & AWARDS Barcelona

REMARKETING

Petrol’s advantages and KAR’s latest acquisition………………………………………………………… 52-53

EXPERT

The impact of new leasing accounting standards……………………………………………………… 54-55

ANALYSIS

Short Term Rental Fleet Services Overview……………………………………………………………………… 56-58 Short Term Rental costs for business fleets………………………………………………………………………… 60-62

MANAGEMENT

Global Fleet Conference 2016 in pictures……………………………………………………………………………… 64-65 Fleet Europe Awards: Fleet suppliers prizes…………………………………………………………………………………66

SIMPLY CLEVER

LIGHT YEARS AHEAD OF THE COMPETITION

Combined fuel consumption and CO2 emissions for the Superb model: 3.8–7.1 l/100 km, 100–165 g/km.

The New ŠKODA Superb.

Employees want to travel in style. The CFO wants to travel on a budget. Finally, as Fleet Manager, you can satisfy them both with the new Superb. With class-leading spaciousness and dynamic design this car is stylish yet practical. And with minimum operating costs and low emissions, it could be your most efficient employee ever. Add to it some of the finest safety and connectivity features available today, and this car is an incredible return on your fleet investment. skoda-auto.com

facebook.com/skoda

Era of Fleet In Real-time Antigoni Vokou @Antivokou

A transformation is going on in the Fleet Management sector.

Car leasing companies are moving from the “classic” car lease model towards becoming mobility solutions providers both at a local, global and a pan-European level. Fleet management companies conceive Mobility and Private Lease as strategic pillars. As the connected car is already here and the self-driving one is only four years away, to keep focusing 'just' on car leasing will no longer be enough. Nowadays, fleet managers can follow in real-time the TCO via ‘flexible’ access to fuel, mileage, maintenance and billing information. Drivers can have traffic updates in real-time. In 2015 company cars became more connected and emitted less CO2. The SME segment is becoming a crucial target for car leasing providers and further expansions are meant to be achieved in South East Asia, Turkey, Central Europe and South America.

Fleet Management and car leasing has never been as exciting as it is today.

FLEET EUROPE #84

5

DOSSIER

A new opportunity for the fleet sector Damien Malvetti

Over the last few months, numerous private lease offers have emerged across various European markets.

Do they present a new avenue of opportunity for leasing companies, or will private lease develop into competition for traditional leasing? Here’s how the industry’s biggest players responded to that question.

8 COUNTRIES ALD HAS LARGEST PRIVATE LEASE COUNTRY PRESENCE

2016

BUSINESS LEASE WILL EXTEND ITS OFFER TO MOST OF CENTRAL EUROPE

6

Most players on the European fleet market, be they multi-brand lessors or captives, have already developed a private lease offer of their own. Of those surveyed, only Alphabet lacks one; but BMW Group’s leasing company is hard at work developing its private lease offer, they tell us. Some companies’ offers are limited to just one country: Business Lease and Athlon in the Netherlands, Arval in the UK. Others are already much more widely established.

LeasePlan, for example, is present in five countries with its private lease offer. Arval’s private lease formula is even on offer in no less than eight countries. That’s clearly the direction those lease companies with more limited offers also want to take.

A similar picture over at the captive lessors.

The FCA Group’s private lease scheme is already on offer in six countries. For Volkswagen Financial Services and PSA Group, it’s five countries. Private lease is popular, and getting even more so – that much is clear. The Netherlands is the country where private leasing has made most of an impact so far. The reason? The Dutch are less attached to the idea of owning their car than other Europeans. It’s a question of mentality. We should also note that leasing companies in the Netherlands often partner with hypermarket

chains to offer private leasing. For example, LeasePlan has an offer in collaboration with the Albert Heijn network of stores.

CANNIBALISATION The actual operation of private leasing is not so different from classical leasing solutions. Does this not mean there’s a risk that private lease will directly rival corporate leasing offers, cannibalizing the market?

The players have very different views on the matter. Athlon for example thinks private lease will indeed partly replace the company car scheme, “specifically the ‘user-chooser’ part of the business. We also notice the trend of fleet managers looking into offering integrated employee benefits, including mobility. This is a promising opportunity for private lease”. But there’s more. “Private lease will also make it easier for companies to also give non-entitled employees access to a lease car. Companies can use this as a tool to retain or increase their attractiveness as an employer”.

Business Lease agrees: “Private lease will allow our customers to give more of their employees access to a lease car. And of course, more current lease drivers will also opt for private car leasing. We feel private lease is an important step towards mobility budgets”.

FLEET EUROPE #84

WORLDWIDE INNOVATION BY ALD AUTOMOTIVE

BENEFIT FROM ALD AUTOMOTIVE’S GLOBAL COVERAGE TO RUN YOUR BUSINESS SMOOTHLY IN 48 COUNTRIES ACROSS THE WORLD. ALDAUTOMOTIVE.COM

DOSSIER

Private lease offers are specifically adapted to customer demands.

Others, PSA and ALD included, don’t see private lease as a competitor for regular lease offers. PSA thinks “private lease is only oriented towards the B2C market”. And for ALD, “private lease is a new opportunity for new customers outside the corporate sector, as well as an additional class of employees we’ll be able to reach within our existing clientele - those without a company car”.

But ALD emphasises a very important point.

“As regulation adapts to facilitate private lease, many of our customers will explore it as a solution. However, companies will still be responsible for the use of the cars. They shouldn’t consider private lease as a means to absolve themselves of that responsibility”.

For Sixt Leasing, private lease and regular leasing are two different and complementary models. “We do see the company car scheme as an important asset for employees.

Additionally, we consider the salary sacrifice model, which combines the benefits of the company car scheme with private leasing, to be increasingly important”.

private lease will be more attractive than the classic company car scheme.

CUSTOMER DEMAND STRATEGY Should private lease blossom as a B2B option, then most providers already have a tool at hand to integrate it in their offering - either via a current fleet management tool or via a new, specifically created tool.

Indeed, some suppliers don’t want to mix private leasing cars and classic leasing cars in the same tool. “Private lease cars don’t have a contractual connection to our B2B customers”, says Business Lease.

The private lease strategy can’t be the same as the standard corporate lease strategy.

This is why most suppliers adopt a strategy that is adapted to customer demand, which may vary widely according to country. But across all the responses there is a significant, similar trend towards tax-efficient and cost-effective solutions and towards an offer based on low CO2-emissions, and small or green cars.

Some players didn’t want to comment.

Arval thinks it’s too early, Daimler and Volkswagen Financial Services think local regulations will determine whether

8

FLEET EUROPE #84

ADVERTORIAL

CONCEDED EDITORIAL SPACE

Getting the most out of leasing Leasing has always been an attractive and advantageous business mobility option.

With fleet managers challenged by increasingly complex mobility demands, partnering with an experienced fleet services provider can help them tap into the latest solutions.

The result is optimised mobility – and more time for handling their core business.

Digitalisation, individualisation, pressure to sink costs and carbon emissions – all this has markedly shaped the status quo of the fleet industry. Especially international fleet managers benefit from the overall cost transparency and a helping hand to ensure each country’s mobility solution reflects an array of local specifications and requirements. Represented in 18 countries and offering tailor-made fleet solutions, leading Business Mobility provider Alphabet is the ideal partner.

SOLID, PERSONAL APPROACH Alphabet begins each client relationship with determining a company’s unique mobility needs. With a global sales force dedicated to international clients, the fleet provider is well equipped to think globally and act locally.

Clients know they can always rely on Alphabet for solid advice, whether for operating leasing with a fixed monthly rate to control costs, Corporate CarSharing to optimise vehicle use, or electric vehicles and hybrids to decrease their carbon footprint. In a nutshell, Alphabet expertly guides each client through the complex mobility landscape to the tailor-made solution that suits its individual needs.

ALL FROM ONE SOURCE To make the mobility experience seamless and easy, Alphabet also offers a full package of services companies can select from. Outsourcing tasks such as maintenance and repair, accident management, fuel card or other fleet-related services to a mobility specialist like Alphabet, lets fleet managers and companies gain time they can devote to tasks that help grow their business. Fleet managers also profit from Alphabet’s offer to create unique solutions for each country’s local demands. Innovations FLEET EUROPE #84

like Alphabet’s AlphaGuide smartphone app, an on-the-go and digital mobility partner, further ease the daily mobility experience for fleet managers and drivers.

CLIENTS RECOMMEND ALPHABET A recent client feedback survey revealed that clients are highly satisfied with Alphabet’s fleet solutions and services. The results showed that clients are especially happy with Alphabet’s service areas, be it the vehicle order, delivery and return process as well as with the comprehensive portfolio of services.

For instance, 82% of clients surveyed stated that Alphabet provides a premium service for managing car-related tax issues.

By partnering with Alphabet, companies can rest assured their business mobility solution taps into attractive offers and overcomes possible challenges. Alphabet’s unique promise to provide a tailor-made fleet for each client ensures each solution is efficient, convenient and future-proof. It comes as no surprise to hear that 79% of clients would recommend Alphabet to another company.

CONTACT More at www.alphabet.com/leasing

9

DOSSIER

The international scope 2015 MILESTONES ALD International • The acquisition of MKB Euroleasing and Autopark in Bulgaria and Hungary, and Gold Car Fleet in Spain has supported country growth.

• Opening in Chile and Peru in South America.

• New partnership in New Zealand and reinforced partnership in Ireland.

• Growth in China, South Africa and Brazil despite economic challenges.

Arval • The acquisition of GE’s fleet business in Europe, North America, New Zealand and Mexico has positively impacted country results.

• New Arval Jiutong JV in China.

• Growth in Russia and Turkey.

• Reinforcement of global alliance with Element.

ARI Fleet • Growth in Portugal and Switzerland via Boxer and CarNet. • Strenghtened market position in UK. Athlon International • Growth via Lex Autolease in UK, and nice growth in Italy and Poland.

• Decrease in managed fleet in Turkey.

ARI

ARVAL

Athlon Car Lease International

Business Lease Group

Daimler Fleet Management

FCA Bank

Fleet Logistics

LeasePlan

ORIX

AUSTRIA

BELARUS

BELGIUM

BOSNIA HERZEGOVINA

45

64129

-

-

5719

GROWTH 2014-2015 (%)

-

10,2

-

0,7

-

SUBSIDIARY OR PARTNER

-

S

S

S

-

FLEET 2015 GRAND TOTAL

-

478

-

2070

-

GROWTH 2014-2015 (%)

-

-3,2

-

-4,1

-

SUBSIDIARY OR PARTNER

-

-

-

-

-

FLEET 2015 GRAND TOTAL

-

4112

-

48597

-

GROWTH 2014-2015 (%)

-

33,5

-

26,7

-

SUBSIDIARY OR PARTNER

-

S

-

S

-

FLEET 2015 GRAND TOTAL

-

1195

-

46074

-

GROWTH 2014-2015 (%)

-

-40,3

-

1,1

-

SUBSIDIARY OR PARTNER

-

Interleasing GmbH (N)

-

S

-

FLEET 2015 GRAND TOTAL

-

-

-

-

-

GROWTH 2014-2015 (%)

-

-

-

-

-

SUBSIDIARY OR PARTNER

-

-

-

-

-

FLEET 2015 GRAND TOTAL

-

-

-

-

-

FLEET 2015 GRAND TOTAL

ALD International

ALBANIA

GROWTH 2014-2015 (%)

-

-

-

-

-

SUBSIDIARY OR PARTNER

-

X

-

X

-

FLEET 2015 GRAND TOTAL

-

10

-

300

-

GROWTH 2014-2015 (%)

-

-

-

-

-

SUBSIDIARY OR PARTNER

-

S

-

S

-

FLEET 2015 GRAND TOTAL

-

-

-

-

-

GROWTH 2014-2015 (%)

-

-

-

-

-

SUBSIDIARY OR PARTNER

-

X

-

X

-

FLEET 2015 GRAND TOTAL

-

35000

-

55000

-

GROWTH 2014-2015 (%)

-

6,1

-

8,7

-

SUBSIDIARY OR PARTNER

-

S

-

S

-

FLEET 2015 GRAND TOTAL

-

-

-

-

-

GROWTH 2014-2015 (%)

-

-

-

-

-

SUBSIDIARY OR PARTNER

-

-

-

-

-

FLEET 2015 GRAND TOTAL

-

13932

-

9008

-

GROWTH 2014-2015 (%)

-

-1,5

-

0,4

-

SUBSIDIARY OR PARTNER

-

-

-

-

-

FLEET 2015 GRAND TOTAL

-

5490

-

3245 (including LUX)

-

PSA Banque

RCI Finance

Vokswagen Financial Services

GROWTH 2014-2015 (%)

-

3,6

-

-35,1

SUBSIDIARY OR PARTNER

-

-

-

-

-

FLEET 2015 GRAND TOTAL

40

39674

-

32475

60

GROWTH 2014-2015 (%)

-

9,6

-

14,5

-

SUBSIDIARY OR PARTNER

Porsche Mobility shpk (N)

Porsche Bank AG (N)

-

Volkswagen D'Ieteren Finance (JV)

Porsche Leasing doo (N)

LEGEND: TF = Total Fleet 2015 funded and non-funded • S = Subsidiary • N = Network partner • JV = Joint Venture

10

FLEET EUROPE #84

DOSSIER

* The figures in this overview are figures from 31 December 2015.

BULGARIA

CROATIA

CZECH REPUBLIC

DENMARK

ESTONIA

FINLAND

FRANCE

GERMANY

GREECE

HUNGARY

IRELAND

ITALY

3866

3253

14906

19195

1288

23461

363605

136211

3585

14200

1600

125483

114,4

13,3

11,1

39,9

12,7

-4,1

6,2

3,8

-2,8

152,7

37,3

8,9

Johnson & Perrot (N)

S

S

S

S

S

S

S

S

S

S

S

-

-

-

257

-

298

2201

31834

-

-

-

1514

-

-

-

-1,2

-

2,1

-4,1

5,2

-

-

-100,0

0,9

-

-

-

-

-

-

-

-

-

-

-

-

-

-

13756

1318

-

1824

278235

67671

1003

4340

2000

151102

-

-

23,7

93,3

-

115,6

31,9

165,7

-18,0

12,8

-

9,5 S

-

-

S

S

-

S

S

S

S

S

Windsor Fleet (N)

-

-

-

-

-

-

40490

35602

-

-

5832

14577

-

-

-100,0

-

-

-

5,0

5,0

-

-100,0

-10,3

20,0 S

-

-

-

-

-

-

S

S

-

-

Merrion Fleet Management (N)

-

-

10500

-

-

-

-

-

-

3100

-

-

-

-

12,9

-

-

-

-

-

-

3,3

-

-

-

-

S

-

-

-

-

-

-

S

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

X

X

X

-

-

X

X

-

X

-

X

-

-

-

110

-

5

30000

40

-

-

-

85000

-

-

-

-

-

-

-9,5

-

-

-

-

5,0

-

-

-

S

-

-

-

S

-

-

-

S

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

X

-

X

X

-

X

X

X

X

X

X

X

-

-

20000

28000

-

22000

104000

99000

16000

10000

16000

116000

-

-

17,6

7,7

-

10,0

10,6

14,5

25,0

11,1

55,3

5,5

-

-

S

S

-

S

S

S

S

S

S

S

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

610

-

-

-

200009

77352

-

-

-

4418

-

-

-

-

-

-

-3,3

-2,5

-

-

-

-23,1

-

(Santander Consumer Finance)

SCF

-

-

-

-

-

-

(Santander Consumer Finance)

SCF

-

-

-

- JV

- JV

-

-

10344

678

-

-

308533

83937

-

1461

2056

59821

-

-

2,4

13,0

-

-

-6,0

1,1

-

12,4

8,2

31,2

-

-

-

-

-

-

-

-

-

-

-

-

1820

12281

8275

-

-

-

75010

654069

-

11054

-

96115

56,8

46,4

37,6

-

-

-

25,2

5,6

-

21,3

-

74,0

Porsche Mobility BG, Porsche Leasing BG (N)

Porsche Leasing d.o.o. (N)

S

-

-

-

S

S

-

Porsche Lízing és Szolgáltató Kft. (N)

-

S

NOTE: X = Presence in country. Dear Readers we could not provide you with the numbers of these companies, because they did not complete them in our chart.

FLEET EUROPE #84

11

DOSSIER

ALD International

ARI

ARVAL

Athlon Car Lease International

Business Lease Group

Daimler Fleet Management

FCA Bank

Fleet Logistics

LeasePlan

ORIX

LATVIA

LITHUANIA

LUXEMBURG

MACEDONIA

MONTENEGRO NETHERLANDS

NORWAY

POLAND

PORTUGAL

ROMANIA

1494

1545

10673

-

-

8,0

19,9

2,0

-

-

30628

9849

11003

12854

8876

14,2

1,5

17,5

3,2

5,8

S

S

S

-

-

-

34

-

-

S

S

S

S

S

-

1568

-

-

1600

-

-

-

-35,8

-

-

-

-

-

-1,8

-

-

617,5

-

-

-

-

-

-

Boxer (N)

-

-

-

4390

-

-

34100

-

16305

9545

6909

-

-

13,0

-

-

15,3

-

-

74,8

12,3

-

S

-

-

S

-

S

S

S

-

-

1572

-

-

108650

-

4268

1216

-

-

-

-9,1

-

-

4,5

-

18,6

8,8

-100,0

-

-

S

-

-

S

-

S

S

-

-

-

-

-

-

19550

-

5300

-

3100

-

-

-

-

-

0,3

-

3,9

-

3,3

-

-

-

-

-

S

-

S

-

S

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

X

-

-

X

-

X

X

X

-

-

-

-

-

1300

-

60

60

-

-

-

-

-

-

1,6

-

-

-

-

-

-

-

-

-

S

-

S

S

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

X

-

-

X

X

X

X

X

-

-

9000

-

-

131000

43000

26000

94000

11000

-

-

8,3

-

-

9,2

10,3

7,0

11,1

5,1

-

-

S

-

-

S

S

S

S

S

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

X

-

-

-

-

-

-

-

6400

-

350

-

-

-

-

-

-

-

23,7

-

-

-100,0

-

-

-

-

-

-

-

-

-

White label SCF

-

-

-

3245 (including BE)

-

-

6009

-

20928

10609

21125

-

-

-35,1

-

-

-33,2

-

23,1

15,3

32,0

-

-

-

-

-

-

-

-

-

-

-

-

2261

1077

32

113606

58000

10522

6781

6194

-

-

-

-

-

119,7

268,2

24,4

111,7

-44,8

Autosdiffusion M.Losch (N)

PORSCHE LEASING DOOEL SKOPJE (N)

S

Volkswagen Møller Bilfinans AS (JV)

S

S

Porsche Mobility SRL (N)

PSA Banque

RCI Finance

Vokswagen Financial Services

-

-

LEGEND: TF = Total Fleet 2015 funded and non-funded

12

•

S = Subsidiary

Porsche Leasing doo (N)

•

N = Network partner

•

JV = Joint Venture

FLEET EUROPE #84

DOSSIER

RUSSIA

SERBIA

SLOVAKIA

SLOVENIA

SPAIN

SWEDEN

SWITZERLAND

TURKEY

UK

UKRAINE

TOTAL EUROPE

17567

1934

3280

1640

80967

22666

3933

13027

123005

4531

1140018

-6,1

0,7

12,6

14,0

7,9

2,7

6,8

13,3

7,5

-7,9

7,3

S

S

S

S

S

S

S

S

S

S

-

-

-

-

1460

465

3200

-

80279

-

127258

-

-

-

-

9,6

-2,7

278,3

-

21,9

-

17,7

-

-

-

-

-

-

CarNext (N)

-

-

-

8134

500

5679

-

81892

3514

9765

15581

149726

-

919998

4,4

-

17,9

-

16,8

-

51,3

17,9

45,7

-

31,6

S

Fleet Partner

S

-

S

S

S

S

S

-

3599

-

-

-

8764

1558

start up

17633

356352

-

647382

-10,0

-

-100,0

-

11,2

-10,0

-

-26,5

15,0

-

5,3

AutoPartners

-

-

-

S

S

S

FleetCorp

Lex Autolease

-

-

-

4315

-

-

-

-

-

-

-

45865

-

-

10,6

-

-

-

-

-

-

-

4,7

-

-

S

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

X

-

X

-

X

X

X

X

X

-

-

-

-

-

2400

-

40

-

6000

-

125325 4,3

-

-

-

-

-

-

-

-

25,9

-

-

-

-

-

S

-

S

-

S

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

X

-

X

-

X

X

X

X

X

-

2000

-

8000

-

82000

29000

11000

18000

169000

-

1154000

1804,8

-

15,9

-

15,1

9,4

-15,4

31,9

23,6

-

12,7

S

-

S

-

S

S

S

S

S

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

490

100

9790

-

28236

1859

58547

-

411101

-

-

-

-14,5

1,2

-

-0,4

-100,0

12,2

-

-0,2

SCF

SCF

SCF

-

-

-

-

(Santander Consumer Finance)

-

(Santander Consumer Finance)

ALD

(Santander Consumer Finance)

-

2234

-

3400

1781

26002

13250

9434

20174

23598

502

634611

1,5

-

-

61,9

13,1

1,9

8,4

68,1

-34,5

0,4

0,4

-

-

-

-

-

-

-

-

-

-

8210

1204

1972

7038

87215

17800

11815

-

120497

1739

1386836

71,1

-56,4

-9,2

64,3

381,3

17,4

12,5

-

26,5

7,7

29,8

Porsche Leasing SCG doo (N)

VOLKSWAGEN Finančné služby Slovensko s.r.o.

(JV)

PORSCHE LEASING SLO. d.o.o. (N)

S

S

AMAG Leasing AG (N)

-

S

Porsche Leasing Ukraine (N)

S

NOTE: X = Presence in country. Dear Readers we could not provide you with the numbers of these companies, because they did not complete them in our chart.

FLEET EUROPE #84

13

DOSSIER

NORTH AMERICA

Business Lease • Good growth in Czech Republic and Slovakia.

Daimler Fleet Management • Roll out of service portfolio in France, Sweden and Poland.

FCA Bank • Launched full service leasing via White Label in Austria, Belgium, Denmark, Finland, Poland, Portugal, Spain, Sweden, and Switzerland.

Fleet Logistics International • Operations for APAC, with 12 countries managed from hub in Singapore.

LeasePlan International • Activities in Russia have taken off.

• Very good growth in Turkey, Greece, UK and Ireland.

• In Turkey LeasePlan acquired sole ownership of the local entity.

Orix • Leading position in fleet management services in Asia.

PSA Banque Finance • Sold captive activity to ALD in Poland and Czech Republic.

• Sold activity to Santander Consumer Finance in Portugal.

FLEET 2015 GRAND TOTAL

ALD International SUBSIDIARY OR PARTNER

ARI

LEGEND: TF = Total Fleet 2015 funded and non-funded S = Subsidiary N = Network partner JV = Joint Venture NOTE: X = Presence in country. Dear Readers we could not provide you with the numbers of these companies, because they did not complete them in our chart.

14

12.801 291.994

Wheels Canada United States

177.799 908.081

Canada United States

229.898 1.353.857

SUBSIDIARY OR PARTNER

FLEET 2015 GRAND TOTAL

ARVAL SUBSIDIARY OR PARTNER

Athlon Car Lease International

FLEET 2015 GRAND TOTAL

Business Lease Group

FLEET 2015 GRAND TOTAL

Daimler Fleet Management

FLEET 2015 GRAND TOTAL

FCA Bank

SUBSIDIARY OR PARTNER

Fleet Logistics

LeasePlan

Element United States

190.700

Donlen (N)

SUBSIDIARY OR PARTNER

SUBSIDIARY OR PARTNER FLEET 2015 GRAND TOTAL SUBSIDIARY OR PARTNER FLEET 2015 GRAND TOTAL

United States

SUBSIDIARY OR PARTNER

FLEET 2015 GRAND TOTAL SUBSIDIARY OR PARTNER

RCI Finance • Increase in Central Europe, Southern Europe, and Turkey.

Volkswagen Financial Services • Very good figures for Spain, Italy, Portugal, Netherlands and Norway.

FLEET 2015 GRAND TOTAL

Canada United States

United States

243.000

S

FLEET 2015 GRAND TOTAL

ORIX

SUBSIDIARY OR PARTNER

PSA Banque

RCI Finance

FLEET 2015 GRAND TOTAL SUBSIDIARY OR PARTNER FLEET 2015 GRAND TOTAL SUBSIDIARY OR PARTNER

Vokswagen Financial Services

FLEET 2015 GRAND TOTAL SUBSIDIARY OR PARTNER

FLEET EUROPE #84

DOSSIER

ASIA/PACIFIC

AFRICA/MIDDLE EAST

LATIN AMERICA

Australia China India Kazakhstan New Zealand

55.000 2.790 11.396 118 18.566

Brasil Chile Mexico

S Fleet Partners (N)

22.020 237 20.578 S

Argentina Brasil Colombia Mexico

Australia Japan Orix (N)

Localiza (N), ARIZA/ARIFZ (JV)

Australia China India

100.000 4.345 3.549

Custo Fleet (N), Arval Jiutong (JV), Arval India (S)

3.097 8.183 36.000

1.622.798

190.000

1.544.195

S, ABSA (N) 832 117.759 3.214 19.252

Brasil Chile Colombia Mexico Peru

Algeria Morocco South-Africa

TOTAL GLOBAL PRESENCE

17.467 7.000 5.000 22.958 2.000

Arval Brasil (S), Arval Relsa (JV), Mareuto (N), Element (N)

South-Africa EQSTRA (N) Morocco Total fleet of Avis Fleet Services consolidated for all countries (Lesotho, Swaziland, Namibia, Ghanna, Botswana, Mozambique, Tanzania, Zambia, South Africa)

5.787 300.000

2.971.859

Element (N), Avis Fleet Services (N) 838.082 45.865

125.325 Bangladesh China India Indonesia Japan Korea Malaysia Pakistan Philippines Taiwan Thailand Vietnam

Argentina Brasil Chile Mexico Paraguay Uruguay

Australia India New Zealand

95.000 13.000 22.000

Brasil Mexico

S Australia Hong Kong India Indonesia Japan Kazakhstan Malaysia New Zealand Pakistan Philippines South Korea Taiwan Thailand

Israel

9.000 17.000

UAE

S

5.000

1.558.000

2020 23.500 9.303

1.358.172

S

26.291 5.379 8.400 20.457 1.200.000 423 2.500 9.690 10.815 4.594 13.200 5.300 14.200

Egypt Oman Saudi

S, ORIF (JV), SK Leasing JSC (JV)

ORIX Leasing Egypt SAE (JV), S, Saudi ORIX Leasing Company (JV) 411.101

South Korea

10.216

Argentina Brasil

190 22.468

Australia China

1.873 974

Brasil Mexico

30 45.285

S

FLEET EUROPE #84

S

Algeria Morcco Swaziland

1.553 14.047 13.250

South Africa

696.335

1.434.998

Volkswagen Financial Services South Africa PTY (JV)

15

E-fficiency Class.

The new E-Class by Mercedes-Benz. Masterpiece of Intelligence. Equipped with new diesel and PLUG-IN HYBRID engines, as well as the most innovative technology in its class, to fulfil one aim: Making your fleet more efficient, more comfortable, more economical. mercedes-benz.com/fleet

DOSSIER

The Fleet Management Strategy Puzzle Antigoni Vokou @Antivokou

The rules have changed! Car leasing companies have become fleet management mobility providers. Apps are the new car keys of today’s ultra-connected fleets. Personalised services for the company driver and the fleet “mobility” manager keep on increasing: mileage updates, driver alerts in real-time or automated billing. For all the fleet management players the three main objectives are: maintain market leadership, reduce CO2 emissions and expand globally.

GLOBAL EXPANSION AIMS Latin America and Asia. © ALD Automotive

UNIQUE PRODUCT MY ALD digital solution is available in 27 countries. It outsources Fleet Management. The driver accesses a dashboard that displays the mileage as well as key information like maintenance history. Fleet Managers can consult each driver's maintenance history, fuel cards, vehicle and contract details, read and update mileage, send the driver alerts.

STRATEGY 2016 ALD International aims to remain among the Top 3 leaders in all the markets present and rise its market share.

Increase client satisfaction with new products, improve Private Lease partnerships and expand the “à la carte” product approach.

Deliver digital solutions to Fleet Managers and Drivers in all countries. Rely on the growing SME segment.

18

2015 AVERAGE CO2 EMISSIONS

127 gr/km

FLEET EUROPE #84

DOSSIER

GLOBAL EXPANSION AIMS China

© Alphabet

UNIQUE PRODUCT The AlphaGuide app includes a mobility calendar with real-time traffic information, it tells the user when to leave to arrive at an appointment on time, locates points of interests, gives access to leasing contract information and damage report filing. Versions exist for iOS, Android and Windows smartphones. The iOS and Android ones are compatible with the corresponding smartwatches.

STRATEGY 2016 Alphabet will keep proposing tailor-made solutions for each company, based on individual mobility requirements like a leasing offer with comprehensive services or an innovative Business Mobility solution.

Privileging the objectives a client wants to reach, because it allows to identify and evaluate the true mobility needs of each company, global one or smallmedium enterprise.

2015 AVERAGE CO2 EMISSIONS

119 gr/km

GLOBAL EXPANSION AIMS Benelux and France by 2017.

© ARI

STRATEGY 2016 The main goal is to further implement ARI’s fully transparent, pay-as-yougo fleet management model in the UK and Germany.

Roll out new strategy in Benelux and France.

UNIQUE PRODUCT ARI insights® helps to reduce the TCO for each vehicle. It gives control to fleet managers by providing the tools to identify the costs, and by introducing specific initiatives to help eradicate them. This is achieved through configurable client dashboards, which show real-time information based on their business need and pre-set preferences, which can be amended at any time. It also prevents the possibility of hefty legal fines in the future.

2015 AVERAGE CO2 EMISSIONS

120 gr/km

FLEET EUROPE #84

19

DOSSIER

STRATEGY 2016 © ARVAL - BNP Paribas Group

UNIQUE PRODUCT Arval Active Link is an in-house solution that boosts daily operations and provides a better insight on fleet performance. It’s present in Italy, Spain, France, the UK and the Netherlands. Soon it will be in Belgium and Czech Republic.

Arval will focus on the global consolidation after acquisition of the GE Fleet Services business.

Consolidation of presence in the Asia and South America regions.

Build on its innovative offers like Arval Active Link, Arval Outsourcing Solutions and Arval Mid Term Rental, the crossselling with the Bank which will boost the development in the SME segment.

STRATEGY 2016 © Athlon

UNIQUE PRODUCT MoMas, is a mobility management tool enabling operational and strategic fleet management.

GLOBAL EXPANSION AIMS Norway and Denmark.

Plan, Book & Go is a car sharing solution with an online reservation tool combined with in-car technology for keyless functions. Mileage registration and billing is automated via the app in App Store.

Athlon sees itself as a dedicated business mobility provider. It will further move from traditional car lease towards mobility services.

Focus on four strategic Pillars: Car Lease, Online, White-label Solutions and Mobility Solutions.

UNIQUE PRODUCT GLOBAL EXPANSION AIMS Central Europe

© business lease

STRATEGY 2016 Business Lease will further increase the driver and client satisfaction.

Further growth in new central European markets.

Continuous development of green product innovation and mobility solutions.

20

A single IT platform for entire European organisation. This has resulted in a strong alignment in all countries from a product and service perspective. A clear access to international data and reporting. The development Care Online, an online solution which includes a detailed online reporting for fleet managers and drivers, as well as services for further unburdening customers and drivers.

2015 AVERAGE CO2 EMISSIONS

132 gr/km

FLEET EUROPE #84

DOSSIER

GLOBAL EXPANSION AIMS

© Daimler Fleet Management

Croatia, Denmark, Turkey and Portugal.

STRATEGY 2016 Daimler Fleet Management will keep providing fleet-related services such as repairs, tyre replacements, fuel card management or cross-border fleets.

Offer its services for the complete fleet of all European customers, including non-group brand vehicles, to maximize customer satisfaction.

UNIQUE PRODUCT Corporate Carsharing is available for all vehicle brands and types.

STRATEGY 2016 FCA Bank looks to increase Contract Hire and Fleet Management business in Europe targeting in particular Small and Medium businesses through FCA dealer network and through direct sales.

UNIQUE PRODUCT Car Sharing in collaboration with ENI Enjoy. 2,000 cars present in Rome, Milan, Florence, Turin, through Italian Contract Hire company Leasys Spa.

© FCA BANK

2015 AVERAGE CO2 EMISSIONS

125.83 gr/km

GLOBAL EXPANSION AIMS May 2016 LATAM.

© FleetLogistics

STRATEGY 2016 Focus on developing Fleet Logistics organisation to support and continue growth.

Support existing and new clients with fleets harmonisation on a PanEuropean and Global level.

UNIQUE PRODUCT A global service delivery model based on a mixture of localised fleet management and ‘HUB’ fleet management. Services are offered to the APAC region via Singapore and to LATAM via Brazil. In Europe local services are provided in each country.

2015 AVERAGE CO2 EMISSIONS

120 gr/km

FLEET EUROPE #84

21

DOSSIER

GLOBAL EXPANSION AIMS Malaysia and South East Asia.

UNIQUE PRODUCT FlexiPlan is a flexible mobility product for companies and start-ups with fluctuating or short-term mobility needs.

FlexiPlan offers flexibility in duration and in choice of vehicle, fot one month or two years, for a passenger car or a light commercial vehicle (LCV).

© LeasePlan

STRATEGY 2016 Make LeasePlan a ‘one-stop shop’ for all vehicle-related mobility needs.

Extend package of flexible, easy to tailor offerings that include flexible leasing, rental, short leases, car sharing, and pool management, but also mobility cards for greener fleets.

2015 AVERAGE CO2 EMISSIONS

SwopCar allows companies to share vehicles among employees on-demand without the administrative burdens.

145 gr/km FOR PETROL CARS

124 gr/km FOR DIESEL

UNIQUE PRODUCT

GLOBAL EXPANSION AIMS

INTERPARC is PSA’s new fleet management software version in France. This tool allows to have an effective monitoring and manage all aspects concerning their fleet. The basic concept is to give customers alert on their cars. The same tool is available in Belgium, Spain, Switzerland and will be launched by the end of the year in Germany and Italy.

No plans.

© PSA BANQUE

STRATEGY 2016 Proceed with the framework agreement signed between Banque PSA Finance and Santander Consumer Finance which covers partnerships in 11 European countries, seven of which are now operational and the residual 4 countries will be operational before the end of 2016.

22

2015 AVERAGE CO2 EMISSIONS

104.4 gr/km

FLEET EUROPE #84

DOSSIER

UNIQUE PRODUCT “Pro+ Board” is a specific service which follows-up the real use of the car in real time like mileage, consumption, maintenance, warnings… and provides information with a specific dashboard.

© RCI Bank and Services

STRATEGY 2016 Growth in the SME channel by answering to the specific needs’ of small & medium companies through the Renault-Nissan Alliance network.

Deploying new services, requested by the market, like car-sharing offers, fleet asset management, etc.

© VOLKSWAGEN FINANCIAL SERVICES

UNIQUE PRODUCT FleetCARS International is an international online reporting and fleet management tool which is regularly adapted to the fleet market demands.

GLOBAL EXPANSION AIMS Turkish market for 2017.

STRATEGY 2016 Further developing and strengthening the product portfolio in all markets across Europe but also globally.

Harmonizing and introducing new services to handle international customers’ requirements.

FLEET EUROPE #84

23

ADVERTORIAL

CONCEDED EDITORIAL SPACE

Focus on fleet has been a success In 2013, Maserati entered the all-important European fleet business with its new Quattroporte and Ghibli, a decision that was a success right from the start.

Having established excellent relationships with all the major leasing companies in the most important countries, Maserati is now recognised as a serious manufacturer of prestige fleet vehicles, and a highly competitive challenger in the leasing marketplace – an unthinkable concept just a few years ago. Of its 6,500 European sales in 2015, 25% were through the fleet channel, a figure that is expected to increase still further with the recent introduction of the new Levante, Maserati’s first SUV. Launched at the 2016 Geneva Motor Show to universal acclaim, the addition of the Levante to the range now gives Maserati a presence in every segment of the global luxury car market.

being regarded as the ultimate reward for the most talented senior executives.

The Quattroporte, Ghibli and Levante are luxury cars for everyday use, with high levels of specification that include full leather trim, eight-speed automatic transmission with five shift modes, Bi-Xenon headlights, and state-of-the-art safety features. Under their bonnets, there is a choice of hugely powerful, twin-turbocharged petrol engines, all manufactured by Ferrari at their Maranello plant, or an innovative 3.0 V6 twin-turbo diesel. The Ghibli diesel currently accounts for some 80% of fleet sales in Europe, and is becoming a firm favourite with fleet managers, thanks to its remarkably high residual values.

Today, Maserati holds a very special position in the business car sector – its models

As part of Maserati’s entry into the business market, it is offering various combinations of dedicated fleet maintenance programmes, from 24 to 60 months and from 20,000 to 40,000 kilometres per year, whilst all its models come with a three year, unlimited mileage warranty, along with the option of 12, 24 or 36 month extensions.

With two newly refurbished factories at Grugliasco and Mirafiori in Turin, Italy, its most extensive model range ever, over 150 dealers in Europe (and growing), and fleet sales at an all-time high, 2016 finds Maserati in the strongest position in its corporate history.

Maserati Quattroporte

24

FLEET EUROPE #84

Maserati Levante

“When the Ghibli was launched, LeasePlan saw a great opportunity with Maserati and we have since developed a strong partnership. The investment that LeasePlan has made in this has delivered very positive results and, given Maserati’s commitment to the leasing business and new product development, we expect even more success in the future." Wolfgang E. Reinhold, LeasePlan, Senior Vice-President for Car Remarketing, Operations and Procurement.

Last year, the Maserati Ghibli won a Company Car of the Year award in Germany from Firmenauto magazine. The award was based on the evaluation of 270 independent fleet managers during an extensive twoday test. Cars were assessed on 28 criteria over 7 categories, with the Ghibli being scored highly for quality, as well as for performance and image.

CONTACT For further details contact Maserati Corporate Sales department corporate.sales@maserati.com

Maserati Ghibli

FLEET EUROPE #84

25

DOSSIER

Our Future is Bright Three top executives offer frank opinions at International Car Leasing Round Table

KENT BJERTRUP, ALD INTERNATIONAL

It’s not easy to get the top executives of the world’s three largest leasing companies around the same table – but Fleet Europe did it!

On 7 April, we talked to Kent Bjertrup (CCO, ALD International), Bart Beckers (CCO, Arval) and Jose Luis Criado (MD, LeasePlan International) about the latest developments in the car leasing industry. At this first Car Leasing Round Table, they offered their frank opinions on market growth, mobility, global expansion and private lease.

26

JOSE LUIS CRIADO, LEASEPLAN INTERNATIONAL

FLEET EUROPE #84

DOSSIER

EU MARKET GROWTH In 2015, each of your companies achieved between 6% and 9% growth.

Will you do as well this year?

BART BECKERS, ARVAL The good news is that fleet market share in Europe is continuing to increase. For many years now, Europe has been dynamic, both in terms of fleet growth and car fleet development. But I don’t see the ‘classical’ fleet market, centered on big accounts, continuing to grow by 8% to 10% every year. But in these mature markets, we do see the SME segment really taking off, and that offers lots of potential.

We’re also increasingly gaining access to these SME clients.

BART BECKERS, ARVAL

FLEET EUROPE #84

JOSE LUIS CRIADO, LEASEPLAN Without a doubt, Europe still is the region with the most developed and most mature car leasing market. But that doesn’t mean there isn’t any growth margin left. Apart from the newer SME market, there’s still margin in Southeastern Europe. In Europe, two-thirds of fleet vehicles are benefit cars. In the U.S., the majority are tool or trade cars. As the EU is now coming out of the economic crisis, companies are again hiring more staff, and thus need more company cars.

PRIVATE LEASE How is private lease impacting your business?

B.B. It’s interesting to see that both new clients and existing ones have an increasing interest in private lease. As such, private lease could become an established product, and a genuine part of the employee mobility equation”.

K.B. The potential success of private lease is very much dependent on changes in legislation and taxation across the various countries.

In some countries, we’re seeing that company cars have become less attractive, and mobility budgets more so. So if private lease will be successful, it won’t be internationally coherent; it will depend on local market realities, our local expertise to propose trendy offers – and on customer appetite.”

J.-L.C. I agree. The success of private lease depends on the tax situation in each particular country. The local fiscal environment has a tremendous impact on whether private lease will grow or not. If private lease has grown so well in the UK, it is because of its fiscal context.

KENT BJERTRUP, ALD No doubt about it, there is a positive growth trend. And our business investments are supporting that trend: we’re investing in benefit cars and in LCVs, and we’re developing new services.

We’re also focusing on technology to facilitate fleet management and car leasing.

B.B. The UK is indeed by far the most mature private lease market in Europe today. The Netherlands and France are also moving in that direction, though. We’re noticing that drivers are getting less emotionally attached to the notion of purchasing their car. This has economic reasons, of course. Combining that trend with tax breaks and an increased offer could boost the private lease market.

B.B. Despite fiscal pressures on company cars and an increasing focus on car sharing, there are still plenty of companies who consider the traditional company car a musthave part of the employee package. That will remain the case in the years to come. So, our future is bright.

J.-L.C. We are opting for a private, selfservice type of mode. This will be an engine for private lease, because as individuals, we don’t like to communicate about our private situation with our companies. Private lease enables us to guard more of our privacy in our relationship with our employers.

27

DOSSIER

help companies set up a car-sharing programme. But although the interest is there, the success of corporate car sharing is still relatively limited.

J.-L.C. As mobility providers, we also offer flexibility, even with car sharing.

Employees can take a car from one company location to the next and leave it there, for example.

For Jose Luis Criado (LeasePlan International), Europe remains the most mature car leasing market.

ALTERNATIVE MOBILITY How long before alternative modes of mobility will finally be truly accepted and widely used?

INSIGHT ALD, Arval and LeasePlan are leading the fleet management business in Europe since years. Today all three manage around 1 million vehicles in Europe.

Originally all three belonged to a bank. ALD (with Société Générale) and Arval (BNP Paribas) still do, while LeasePlan was sold in 2004

by ABN Amro Bank and got its most recent shareholders in the summer of last year.

Their dominant position is linked to a combination of experience and knowledge (LeasePlan offers car leasing services since 1963).

To keep up their leading position and compete with new players in the mobility management arena, they need to invest in mobility services, digital tools and further expand geographically.

28

J-L.C. Globally, we’re still producing close to 100 million ‘traditional’ cars every year.

There is no sign that this volume is going down anytime soon. Especially in Northern Europe, congestion will continue to be a problem, so governments are likely to take further steps against car use and in favour of alternative mobility. But products like car sharing will continue to coexist with car leasing. Car sharing remains a purely urban phenomenon.

K.B. Car sharing is indeed mainly for the big cities. If you don’t need to commute very far or if you work in a megacity like Paris, you don’t need a car as such, and car sharing can be a solution for you. Drivers seem to be more focus on usage versus ownership a pay as you go solution can be also very successful.

J.-L.C. In the range of mobility options, public transport is interesting, because it is a very European phenomenon. Look at China, the U.S. or Latin America: the rest of the world is not even close to our levels of public transport. Go to London, Turin or Seville: our big cities have great public transport. That has an impact on people not wanting a car, and preferring alternatives.

K.B. Each of us has developed car-sharing schemes for our customers. We can

B.B. The next step would be to share cars across companies. But that requires some complicated logistics. Usually, it’s crowded cities that invest in car sharing.

In Frankfurt, we see there are more and more companies investing in cross-car sharing programmes, Zipcar for example.

And I was positively surprised when I used Uber in Paris. If you can link Uber to your company mobility options, you would add a great new mobility service.

K.B. Also in places like Paris, having a car becomes a problem if you don’t have a garage: there simply aren’t enough outdoor parking spaces. For us, car leasing companies, the business will always be about cars; but it will evolve more and more into developing mobility services around the car.

J.-L.C. Kent, I agree: parking spaces are a big issue. I want to have my own car, but I find myself taking more taxis. For people who live in the suburbs, car ownership will remain attractive, even if during the weekdays they can take the train into Paris.

K.B. Let’s not forget that in 89% of cases you won’t be in an urban environment, so the company car will still be at the centre of corporate mobility.

J.-L.C. And yet, all major fleet management and car leasing companies are talking more and more about mobility services rather than just about car leasing.

B.B. It depends on whether or not you link car leasing to travel in the broader sense.

If you link it to airline systems and other systems for reserving spaces on public transport that is going to be a major step towards true added-value mobility services.

J.-L.C. When we travel for work, we are always using a wide variety of mobility modes. So far, we have specialised in car leasing. But today, we are all expanding our FLEET EUROPE #84

DOSSIER

businesses and service areas, and that will continue to be the case in the future. If you compare our industry to ten years ago, then yes, we still lease cars. But how we do it has changed dramatically.

K.B. Due in no small part to the digital evolution, which has changed things over a very short time.

GLOBAL EXPANSION Where are the new horizons for the global fleet industry?

B.B. We’re looking at South America. As a car leasing company, it’s our job to detect business opportunities, an important part of which is following your clients. If, like us, you have international clients who are investing in South America, the time comes when you either have to follow, or they will find another service provider.

K.B. South America is a focus region for us too. The latest subsidiaries we opened were in Chile and Peru. But we’re constantly looking for expansion, across the entire globe. We’re also focusing on Southeast Asia, because we need to be there for our international customers. The road map we’ll be following will also depend on our global strategy and on the investments that our parent company is willing and able to make.

J.-L.C. Internationalisation is a must, but it’s not an easy process, as market realities can be very volatile and challenging. South America is known for its ups and downs – look at Brazil, Argentina and Chile – and that is not likely to change. These countries won’t become beacons of stability like Switzerland. It’s a completely different environment. Asia is different again: it has a huge population, concentrated in dense megacities. Its characteristics are low salaries and a lot of immaturity when it comes to the outsourcing principle. It’s not Europe, that’s for sure. Of course, we want to explore new, high-potential local markets. This June, we started in Malaysia.

We’re also looking at Thailand and South Korea, as we want to expand to more than two or three countries in Southeast Asia over the next few years.

B.B. Jose, you’re right on Asia not being Europe. China is a huge market with a lot FLEET EUROPE #84

of potential, but as of today, it’s not really beneficial in terms of return on investment.

It will take time, and it may turn out to be a market better adapted to new products. For example, China may be the first market to embrace full-autonomous cars.

K.B. One important point to remember regarding personal car ownership in China: the Chinese do not have a history of car ownership as Europeans and Americans do.

But once that idea takes hold, the Chinese appetite for car ownership might grow.

J.-L.C. Regarding international expansion, we have different experiences that worked really well. For example: in Turkey, we started out as a joint venture with a local partner and after five years, we acquired full ownership. I am convinced that engaging first in a local partnership made a positive difference in our road to success.

We got to know the market first, which has proved to be a big advantage. On the other hand, in Brazil, we went in the oldfashioned way. We encountered some issues, and had to deal with some complex problems, but now we have achieved stability. Conclusion: outside of the more mature markets of Europe and North America, we need to reconsider the wisdom of entering a market in the ‘old-fashioned’ way.

B.B. We have a similar experience in Turkey, where our involvement with local know-how worked out very well.

Private lease’s success will vary according to local market realities and customers’ appetite, says Kent Bjertrup (ALD International).

J.-L.C. From a global perspective, we are the only ones with our own subsidiaries everywhere [ALD has an alliance with Wheels, Arval with Element – ed.] Whether it’s better to be a true global company or to be in a global alliance, is ultimately decided by what’s best for the client. And for our part, we’re convinced that being a global company is easier and better for our clients.

K.B. We actually learned a lot from our strategic partnership with Wheels, notably about how client relationship works in the U.S. This partnership allowed us to get a really practical feel for the differences between the European and the American model.

B.B. One advantage of an alliance between different car leasing companies, especially if one is from Europe and the other from America, is that you’re forced to define what ‘added value’ actually means.

The next step for car sharing would be to share cars across companies, believes Bart Beckers (Arval).

29

DOSSIER

Unbundling brings logic to leasing Frank Jacobs @ FrankJacobs

To unbundle or not to unbundle?

That's the Shakespearean question on the minds of many fleet managers these days. The alternative to all-inclusive lease packages is gaining traction in Europe. Unbundling a 'traditional' lease package into its constituent parts and outsourcing it to third parties increases transparency and could seriously reduce cost.

That's the theory. But does it hold up in practice?

30

PLUG AND PLAY Unbundling is a logical extension of the lease principle itself, says Fleet Logistics: “Businesses today are focusing more and more on their core competences and typically fleet is not one of them, so they seek a professional, outsourced Fleet Management solution”. As the aim also is to be costeffective, fleet management companies like Fleet Logistics say they add value by their independence, transparency, local service delivery and, last but not least, their ability to plug and play into a customer's own agreements, and/or with their preferred suppliers.

SAVINGS ARI have been providing unbundled fleet management services since their inception in the U.S. in 1948, and in Europe since 2015. In contrast to the “single, hard to understand price per vehicle” offered by Europe's 'traditional' full service lease suppliers, ARI offers to break open that single price into more transparent components, leading to a “true proactive and predictive fleet management”. Savings can go up to 20% claims ARI.

PAYG The pay-as-you-go (PAYG) model allows customers to capitalise on proactive services.

As proffered by ARI, it allows customers’ to pay only for services used, without any hidden margins. Using ARI's offering of PAYG maintenance instead of contract maintenance allows fleet managers to save as much as 20% on that particular bundle of service, according to the company. According to ARI, the benefits are: to simplify vehicle management, improve maintenance record keeping and reporting, and only pay for costs actually incurred. With larger fleets PAYG maintenance can virtually guarantee the lowest TCO, with a significant cash flow advantage.

TECHNOLOGY Without technology, there’s no transparency.

Unbundled fleet management is proving of great benefit to the business model, ARI says. “We invest 25% of our operating budget into technology; we have an entire tech team completely dedicated to working with clients”. ARI insights is a global network tool designed to enhance the transparency of fleet costs across the world.

FLEET EUROPE #84

BMW Corporate sales

www.bmwcorporate-sales.com

UPGRAdE YOUR FlEET. dOWNGRAdE YOUR CO2 EMIssIONs. BMW iPERFORMANCE MOdEls. lEAdING PlUG-IN HYBRId TECHNOlOGY.

sheer driving Pleasure

DOSSIER

The four advantages of Captives Antigoni Vokou @Antivokou

Captives are constantly growing and simultaneously they’re expanding their “car leasing” services and products, towards fleet managers. But, what is in reality the added value for fleet managers to choose a captive leasing company instead of a fleet management or car leasing one? Discover here the four strong points Daimler, VWFS, FCA and PSA offer to your fleet.

FOUR MAIN STRONG POINTS

32

For Daimler Fleet Management captives represent for customers a single provider for their complete fleet. “Daimler offers multi-brand fleet management as fleets typically consist of vehicles of different brands.” PSA Dealer’s Network

can provide its Clients “with a one-stopshopping service which accompanies our car’s users in their daily life, with maintenance, tyres, windscreen, repairs, fuel card management etc.”

Access a pan-European leasing service is another important element for fleet clients. FCA Fleet Services proposes full service leasing services in 14 European countries with a central coordination

team for International fleet customers.

As a captive, “PSA Banque has the advantage of an extremely close working relationship with PSA Brands and its dealers.”

Location in various markets helps to keep automatically track of local changes says VWFS. “Local market experience and especially the close linkage to the

manufacturer, brand, importer qualify us to consult the customer during the running cooperation.”

Last but not least, finance tips are another interesting aspect for fleet customers.

Since most captives are affiliated to large international bank groups, they can be for fleet manager a crucial source for finance consulting about car leasing. Via its 50% FCA and 50% Crédit

Agricole ownership, FCA Fleet Services offer a strong know-how in car and finance industries. Volkswagen Financial Services has dedicated consultants on international level to share observations, trends and ideas in order to evaluate possible cost savings.

FLEET EUROPE #84

DOSSIER

The sacrifice that is paying off Jonathan Manning

A new type of car leasing product is proving to be one of the fastest growing sectors of fleet in the UK. Salary sacrifice car schemes have the potential to save money for both employer and employee. They also allow companies to improve their environmental performance, and to extend the offer of a ‘company car’ to all employees at no cost.

20% OR 40%

LESS TAXES FOR UK EMPLOYEES

12%

LESS NATIONAL INSURANCE FOR UK EMPLOYEES

13.8% SAVINGS ON NATIONAL INSURANCE FOR EMPLOYERS 34

In a salary sacrifice agreement, employees give up some of their salary for a non-cash benefit. It’s a mechanism that has been widely used to fund pensions and private healthcare, and now the same arrangements are being applied to cars.

By agreeing to sacrifice part of their salary, employees avoid both income tax (20% or 40% in the UK, depending on earnings) and National Insurance (12%) on the money they relinquish - in effect, they lease a car out of their gross, pre-tax salary. The car is usually provided by an external leasing company in a contract that includes service, maintenance, breakdown cover and insurance.

However, as the car is provided via an employer, drivers do have to pay company car tax, so the cost efficiency of the scheme depends on the type of car they choose.

Despite this, employees can generally lease a car for far less than they would pay as a retail customer in a car showroom.

BENEFITS FOR EMPLOYERS Firstly, they no longer have to pay National Insurance on the sacrificed salary, a saving of 13.8%. Secondly, employers can restrict the type of cars available through these schemes, so it’s possible to introduce an emissions cap to ensure drivers select environmentally-friendly cars.

Initially salary sacrifice car schemes were introduced by public sector organisations as a way to provide all staff with a new benefit at no extra cost. More recently, private sector companies have been introducing them, capitalising on the opportunity to give all employees access to a company car, and to reduce the risk of staff driving their own (older, poorly maintained and higher emission) cars for business. The schemes work particularly well for ‘perk’ company car drivers and for staff not normally entitled to a company car.

The Spanish bank Santander, for example, wanted to offer a cost effective benefit for all employees, not just business drivers.

In designing its salary sacrifice scheme, provided by leasing company Zenith, Santander also wanted to promote its ‘Go Green’ strategy (CO2 emissions below 120 g/km), improve driver safety and increase its reward package in order to attract and retain the best employees.

Tom Manahan, Santander group fleet manager, said, “We did a lot of notifications to employees about what was coming and had 22 orders by the first morning.

What we are introducing is a fantastic benefit at no cost to the business. And from our internal survey, it does appear to be improving retention.”

LIMITS OF THE SCHEME Salary sacrifice schemes do not work for all employees and businesses, though. Firstly, if lower paid workers sacrifice too much salary they might find themselves earning below the minimum wage. And secondly, businesses with a fast turnover of staff can find that early terminations of leases are a problem, although it is possible to buy insurance to cover this.

FLEET EUROPE #84

RCI BANK AND SERVICES FLEET SOLUTIONS

Every day, around the world, our fleet dedicated teams support the development of the Renault-Nissan Alliance brands and their dealer networks.

We give our corporate customers access to automotive mobility through a full range of solutions in financing & services tailored to their needs and resources. Our line of conduct is to deliver differentiated, competitive solutions for smooth and sustainable access to mobility.

OUR STRENGTHS: 1. A variety of financing solutions (operational lease, finance lease, credit) 2. A wide range of benefits and services 3. A selection of cars amongst our 6 brands (Renault, Dacia, Nissan, Infiniti, Samsung Motors, Datsun).

We are present in 23 countries across the globe and 15 countries in Europe where we rank in the top 3 providers of financing and services to fleet customers.

With over 325 000 new contracts made in 2015, our fleet now represents a portfolio of 700 000 vehicles worldwide at the end of 2015.

REQUIREMENTS ARE CHANGING, AND SO ARE WE Earlier this year, we unveiled our new commercial identity.

RCI Banque is now RCI Bank and Services. This change reflects our ambitions: 1. Be even more active in supporting the fleet customer expectations.

2. Develop increasingly innovative, user-friendly solutions in auto-mobility in order to deliver a smoother, richer experience for our customers.

Our business name, however, remains the same: RCI Banque SA.

www.rcibs.com

DOSSIER

TCO approach rises in Turkey Steven Schoefs @StevenSchoefs

36

With only 11% of the corporate sales market in full service or operating leasing, there is still a lot of room for improvement. “We foresee continuous growth in full service leasing over the following years of 15% to 20%.”

NUMBER OF CLIENTS GROWS A key driver for future growth will be

The Turkish car fleet market is developing at fast pace, with more attention to the TCO approach rather than just looking at the upfront list price. Looking further in the future, Turkay Oktay says that leasing growth will also come from new channels, like private lease. “It is too soon, but Turkey surely could lend itself very well to private lease.”

TOKKDER supports the development of the car lease industry and of fleet professionalism with specific attention to two topics: “We are in negotiation with the government to enable LCV leasing”, stresses Turkay Oktay. The second initiative is a quarterly report on residual value setting in Turkey. “By the end of this year, we hope to have our first edition ready, with the aim to create a true Residual Value Index.”

%17,0

€300 000

%-0,3

€50 000

€0

2009

2010

2011

2012

2013

2014

276 400

€100 000

%11,9

170 000

%20,9

236 900

€200 000

207 000

%21,9 %19,7

277 200

%14,3 €250 000

€150 000

TOKKDER Operational Leasing Sector Report

corporate clients aiming to avoid financial risk. “In times of political or economic instability, companies aim to avoid unnecessary risk taking, such as buying and owning cars.”

Today fleet clients in the country’s operating lease portfolio increased to almost 45,000.

142 000

ESTIMATED GROWTH RATE OF OPERATING LEASE FLEET IN TURKEY

117 500

Turkey is a strong economy in a difficult region, and political instability may affect market performance this year. Despite the uncertainty, Turkish fleet business has kept on growing. “We expect growth in the fleet and leasing business to continue for the years to come”, says Turkay Oktay, Managing Director of LeasePlan Turkey and President of TOKKDER, Turkey’s Car Leasing and Rental Association.

The great driver of growth is the fact that Turkish companies increasingly understand and accept the advantages of outsourcing and leasing. That trend will continue this year, even though 2016 started a bit slow.

“Estimates are that Turkey's car leasing fleet will reach about 310,000 units by the end of 2016”, says Turkay Oktay.

105 000

“It is good to see that clients are focusing more on TCO and on driver safety,” says Turkay Oktay.

Last year, car sales in Turkey were up by 23.5% compared to 2014. Operating leasing business represented 17% of the overall new car sales, or 123,000 vehicles. As a result, Turkey's total operating leasing fleet at the end of 2015 added up to 277,255 units, which equals about 11% of the total corporate car market, estimated at just over 2 million cars.

2015

2016 1ST QUARTER

FLEET EUROPE #84

DOSSIER

Operational leasing growing in Romania Caroline Thonnon @CarolineThonnon

Operational leasing reports strong growth in Romania, but to keep the growth rate, suppliers have to focus now on SMEs. Fueled by a solid economic increase, the auto market is expected to jump over 100,000 new vehicles in 2016. Before the crisis in 2007-2008 the annual market counted around 350,000 sales. In indirect proportion to the car market, the operational leasing figure is increasing since 2011 with a double digit growth.

“The 2016 year-end projection of 60,000 vehicles is still achievable”, says Bogdan Apahidean, Chairman of ASLO, the Romania Leasing Association. “What we are witnessing now is a more mature operational leasing market, showing consistent growth in both overall business volume and the share of full service products.”

According to data gathered by the Association of Operational Leasing Companies, top 5 member companies include: LeasePlan, Arval Service Lease, ALD Automotive, Porsche Mobility, and RCI Finanțare.

Romania is considered to be a market to watch closely. After the international companies choosing for operational leasing, it is now time to focus on the SME market.

THE OPERATIONAL LEASING MARKET REPORTED 56,000 VEHICLES UNDER MANAGEMENT

BY THE END OF Q1 2016

37 400

2012

2013

49 200

43 000

22 400

€20 000

27 700

€30 000

31 900

€40 000

41 500

60 000

€50 000

55 500

€60 000

€0

9 600

€10 000

2007 2008 2009 2010

FLEET EUROPE #84

2011

2014

2015

FORECAST

2016

37

FACE TO FACE

Connectivity is the present and the future Antigoni Vokou and Steven Schoefs @Antivokou - @StevenSchoefs

For the third instalment of our Face to Face series, we travelled to Italy, to the historic Formula 1 circuit at Monza. There, we met up with Carlo Bertolini of Chiesi Farmaceutici and Giovanni Tortorici of Barilla. The date was May 12, and they were attending the Fifth Company Car Drive, held at the circuit. Unfortunately, the glorious Italian sun was absent; but that didn’t stop us from having a warm and friendly talk with Carlo and Giovanni, on fighting fuel fraud, choosing the right company cars, the impact of car connectivity and other recent evolutions in fleet management.

The world ‘Italy’ immediately conjures up a wealth of delightful images. The country is famous for its architectural heritage, its great food, its very expressive, hands-on language, its its passion for football, design and cars – and also for its fantastic Autodromo at Monza, which has been hosting races since 1922. The circuit, north of Milan, each year hosts two big events: the Formula One Italian Grand Prix and the Company Car Drive Days. This year, the circuit hosted the fifth edition of this two-day event, which allows fleet managers to test all the latest cars, and follow interesting conferences.

38

FLEET EUROPE #84

Giovanni Tortorici BARILLA

Carlo Bertolini

CHIESI FARMACEUTICI FUNCTION Company Services, Security and Mobility Manager at Chiesi Farmaceutici NUMBER OF CARS 1,593 NUMBER OF COUNTRIES 10 IN FLEET MANAGEMENT SINCE 1986 REPORTING TO HR Corporate Functions Director FUNDING METHOD Full Leasing and Service INTERNATIONAL CAR POLICY Yes, for both sales force and managers INTERNATIONAL GREEN & MOBILITY POLICY There is no written green or mobility policy, but all our actions keep into consideration the impact of pollution

FLEET EUROPE #84

FUNCTION Global Supply Chain Purchasing Manager at Barilla NUMBER OF CARS 889 NUMBER OF COUNTRIES 16 IN FLEET MANAGEMENT SINCE 1999 REPORTING TO Purchasing Department as Fleet Buyer and to HR for Fleet Management FUNDING METHOD Full Leasing and Service INTERNATIONAL CAR POLICY Yes, with international guidelines and local adaptation INTERNATIONAL GREEN & MOBILITY POLICY Yes, there is a high integration level between travel and fleet

39

FACE TO FACE

1

STRATEGY

Why did you set up an international fleet policy?

How do you avoid fuel management fraud?

GIOVANNI TORTORICI Our first goal was to control TCO through harmonisation. The reduction of lessors and model options helped us to achieve this goal, using volume as leverage. But our volume wasn’t enough to reach the target, so the reduction of emissions drove us towards solutions with lower fuel consumption, balanced by better equipment – especially in terms of driver safety and comfort.

G.T. Fuel represents more than 25% of TCO. Key to preventing fraud is to educate drivers so they are aware of the risks. Nowadays, some fuel cards allow us to constrain usage in litres or distance over a certain period.

In many countries, you only have 30 days to dispute terminal transactions. Resolving fraudulent charges requires you to be proactive, going after them as soon as they are discovered.

CARLO BERTOLINI At the start, we were convinced that harmonisation would be our main objective in international fleet policy.

But along the way, we discovered that driver satisfaction was our ultimate goal. We shared seven golden rules for implementing global projects: limiting CO2 emission and fuel consumption via a 120 gr/km limit on all 2016 orders; maximum two premium brands and three generalist ones; introducing leasing company competition on each order; mileage optimisation of 48 months; car selection based on TCO; no high-level SUV models; and a driver recharge system for end of contract damages.

What was the biggest hurdle when developing your international fleet policy?

G.T. The existing barriers to change.

There is a strong propensity for territorial defense, as in nature. The only way forward is to have the support of top management and prove to be very knowledgeable in the matter. If that isn’t the case, it’s best to stop and review the strategy.

C.B. The difficulty of explaining the importance of TCO. It’s very important to understand that you cannot have a car with high CO2 emissions, and still have a low monthly rate.

Which fleet management success are you most proud of, and why?

G.T. Being able to prove that a good project such as integrating fleet and travel [started in 2009] has become extremely important some years later.

C.B. It was finalising a car policy for managers, which wasn’t part of the policy’s scope in the beginning. Initially, it was aimed only at our employees in the field.

40

C.B. We’ve implemented special software which controls all the fuel costs, and verifies if the mileage corresponds to the fuel costs debited. It’s impossible for someone to outsmart the software, because there is strict control.

In your mind, what will be the game changer for fleet management in the future?

G.T. Connectivity is the present and the future. Connected cars are already up and running and their impact on fleets will become apparent quickly. When giants such as Google and Apple are in on the game, the fleet business will get very interesting indeed. Vehicle-to-Vehicle and Vehicle-to-Infrastructure Connectivity are the next step. This will have huge impact on driver behaviour and fleet management in a few years’ time.

C.B. First of all, I think of the new mobility modes which have sprung up in recent years, such as car pooling and car sharing. Integrated mobility could become something that changes our current car policy situation. In that context, it’s good to share data via car connectivity. But the huge impact on drivers’ privacy will be controversial, especially here in Italy.

Do company cars have a longterm future in a multinational corporate environment?

G.T. I think a lot depends on the roots of the company. If you decide to use the fleet as an asset, then you can apply the principles of risk management, create a green car policy and give the right instructions to enterprise mobility.

FLEET EUROPE #84

FACE TO FACE

C. B. Managers’ cars, provided as a benefit, will gain importance. For employees in the field, some changes are possible due to the different daily mobility challenges they face

2

in big cities such as congestion, emissions restrictions and parking problems. Little by little, some cars could be replaced by mobility allowances.

REPORTING & CONTROL

Do you feel you have enough transparency in your fleet management?

G.T. Currently, no. We need to interact better with our drivers’ electronic devices, providing them with more real-time info.

C.B. I think we don’t have all that much transparency in our fleet management.

That’s because of a lack of human contact with leasing and fleet management companies. We’ve lost this contact over the years due to the increase of technology, IT and new reporting modes. It would be great to get it back, because it is important if we want to understand our fleet data better and organise our fleet management as efficiently as possible .

What solutions do you have for the efficient organization of the reporting and control of your international fleet?

G.T. If I may say so, we’re running a very innovative project. Starting from the integration with the accounting administrative flows (invoices) of SAP (common for all countries), its core is a database that is fed by external sources (lessors, oil companies…), so that everyone has the same interface and the processes are controlled by identical flows. Only the data changes (plate, km…), but not its representation.

So there’s cost control and administrative efficiency, through automation.

C.B. If you don’t have a reporting system, you cannot manage all costs related to the car policy. But car leasing companies don’t always want to share driver data. I have an Excel file which I share with all the affiliates, so they can complete it. Once we collect all the information, we bring it all together and we are working on the implementation of SAP with all our affiliates in Europe. With the push of a button we can have all the costs of a fleet in a particular market and compare it with fleets in other countries.

FLEET EUROPE #84

How can fleet suppliers make control even more transparent?

G.T. Provide us with the data feed of the owner, using standard software connectors, through connectivity.

C.B. Periodical meetings with car leasing companies to understand accidents, excess mileage or fuel consumption can help us to verify how we can intervene to eliminate these additional costs.

How do you communicate about company car use and driver behaviour?

G.T. We send info to mobile devices, using simple and intuitive video guides and tutorials.

C.B. To avoid damages and costs at the end of the contract, we inform drivers when the car needs maintenance, and we share information on new car regulations or safety information like E-learning lessons they have to follow.

How do you use digitalisation and connectivity to optimise reporting and control in fleet management?

G.T. By integrating data coming directly from the vehicle. I think there will be battles over data privacy and over who legitimately owns driver data. The data continues to exist and will be used to finetune a high-level management system. The cars already have more networks on board, one of which is the CAN: an inexhaustible source that connects dozens of electronic control units. This is only the beginning.

C.B. Digitalisation is an opportunity for us to understand day-to-day car use and driving behaviour, especially negative behaviour which increases driver risk.

Connectivity can point out excessive fuel use, clear up some damages caused, locate stolen cars or to send help in case of accident.

41

FACE TO FACE

3

TIPS & TRICKS

What is the most valuable lesson you can give your fleet peers for creating efficiency in international fleet management?

G.T. It is essential to have top management behind you; otherwise, you're just swimming in the sea among nasty sharks.

C.B. Create human contact, have empathy; no top-down rules, but build something together, that’s understood and shared by everybody, with input by top management.

4

What is the biggest risk when developing an international fleet strategy?

G.T. Thinking you’re the best. There is always something to learn, even from a small fleet.

C.B. Selecting a nonprofessional consultant.

Thinking the process will be easy like a walk in the park. Not involving people.

Imagining you’ve developed the perfect solution that fits all.

WHO’S WHO

GIOVANNI TORTORICI

CARLO BERTOLINI

Barilla

Chiesi Farmaceutici

Reorganise the Fleet Management inside the new sourcing process, which is cross-company.

What was the first thing on your To Do list for this year?

Fine-tuning the reporting system implemented, analyze data, sharing evolution with board and affiliates.

The application of the manufacturers' discounts across the whole of Europe.

The local distributor makes the difference.

What’s your biggest car fleet management mistake ever?

In Italy, I’d say no big ones were made.

As for the European level: we’ve just started, so we’ll see…

I design and develop analog electronic devices.

What’s your passion outside of the fleet business?

Mixing high-volume house and disco music with my DJ console, for the pleasure of my neighbours (laughs).

My first passion was electronics.

My dream was to work at an electronic research center.

If you weren’t in this business, what would you like to be doing?

For a while, I tried to become a tennis player. Later, I wanted to become a professional DJ. David Guetta told me to concentrate my effort on the fleet business instead (laughs).

Everywhere where there is a beautiful seaside, no doubt.

What is your favorite holiday destination?

New Mexico. Dust, desert, horses… and Death Valley, so the middle of nowhere.

What is the first car you had?

A second-hand Renault 14 ts, with a Pioneer stereo system that cost more than the car.

Ford Escort 1.6, 1990 model.

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FLEET EUROPE #84

FACE TO FACE

INSIDE FACE TO FACE Provide safety information to company drivers helps reduce accidents believe Carlo Bertolini and Giovanni Tortorici.

Often fleet management providers don’t communicate enough with their fleet clients estimate Giovanni Tortorici and Carlo Bertolini.

Connectivity is the future. Its impact on the fleet business will be felt soon, believes Giovanni Tortorici.

Software solutions are the best tool to reduce fuel fraud, Carlo Bertolini thinks.

FACE TO FACE EPISODE 4

Connected and self-driving cars are going to impact largely fleets in the future, but also contribute to increase driver safety say Carlo Bertolini and Giovanni Tortorici.

#85

We’ll meet up with Montse Empez of Applus and Mariano Tristan of Eli Lilly in Barcelona – hopefully under a radiant Catalan sun. Don’t miss it in Fleet Europe’s next issue!

Steven Schoefs & Antigoni Vokou | PICTURES: Maurizio Rigato and Daniele Arosio | PRODUCTION SUPPORT: Céline Gilson (organisation) | PRODUCTION LEADER: Urbain Ortmans

FLEET EUROPE #84

43

NEW SUV PEUGEOT 2008 DESIGNED TO MASTER THE ELEMENTS

Grip Control®

Active City Brake

Mirror Screen

Combined consumption (l/100 km): from 3.5 to 4.9. CO2 emissions (g/km): from 90 to 114.

NEW SUV PEUGEOT 2008

SMART MOBILITY

Future Fleets will be greener and shared Damien Malvetti

High on the list of priorities of leasing sector suppliers is the reduction of the carbon footprint. It’s a goal everyone can get behind.

Europe’s leasing companies are innovating: the products they’re developing provide fleet managers with new mobility solutions. A greener fleet, with a smaller carbon footprint – that’s the aim.

The arsenal of answers contains some radical solutions: car sharing, car pooling and alternative powertrains.

Some proudly claim the topic. In 2014, PSA Group (Peugeot/Citroën/DS) announced a CO2 emissions average of 110.3 g/km, the best result in a European market with an average of 123.7 g/km. Fleet Logistics communicated a reduction in its CO2 emissions from 136 g/km in 2012 to 120 g/km in 2016.

And LeasePlan, from 2011 to 2014, reduced emissions from its petrol cars from an average of 180 to 145 g/km, and from 152 to 124 g/km for its diesels.

Others – including Daimler and the FCA Group, Athlon and Arval – prefer not to communicate on the topic. Perhaps, hint others, there are just too many variables from one customer to another to produce a sensible outcome: “The results between companies differ because of differences in car policy or vehicle use. There are also differences between countries”, says Business Lease for example.

ALTERNATIVE POWERTRAINS Alternative powertrains (i.e. electric and hybrid vehicles) provide an ideal way to reduce a fleet’s carbon footprint.

Unfortunately, they are not yet widely represented among fleets. Why? Because in many countries, the tax system has not yet been adapted to favour their introduction, because they still cost too much, because of so-called ‘range anxiety’ and because the residual value after four or five years is still too much of a question mark.

FLEET EUROPE #84

Currently, alternative powertrains represent less than 5% of all vehicles registered at lease companies and captives in Europe.

ALD Automotive is a good example: “Alternative powertrains represented 6.1% of our total car registrations in 2015.

Last year, ALD Automotive by itself was responsible for 2.2% of electric vehicle registrations and 4.5% of hybrid car registrations in Europe”.

Some markets stand out. “We have witnessed a strong increase in hybrid and electric cars in our fleet, with an increase of more than 10% in the Dutch market in particular”, says Business Lease.

Volkswagen Financial Services regrets that there isn’t more interest in these types of cars. “Compared to ‘classic’ types of fuel, alternative powertrains unfortunately still play a secondary role in our portfolio, taking up less than 5%. But at LeasePlan, it’s only 0.6%, and at ARI Fleet only 2%.

However, almost all players forecast strong growth in alternative powertrains over the next 5 to 10 years”.

SAFETY AND FLEXIBILITY All fleet management tools increasingly offer telematics solutions to analyse driver behaviour, also providing them with advice on how to adopt safer and greener modes of driving. But the market at present is demanding much more. The younger generation is less attached to car ownership. They are simply looking for easy transportation, whichever way.

45

Leasing companies have each developed their range of mobility solutions not just to enable their customers to shrink their carbon footprint, but also to meet these changing transport trends. The most popular products right now are corporate car sharing and flexible mobility.

110,3

g/km CO2

IN 2014, PSA GROUP RECLAIMED THE TOP SPOT AS CO2 EMISSION LEADER IN EUROPE

5%

ALTERNATIVE POWERTRAINS’ SHARE FOR ALL CARS REGISTERED AT LEASING COMPANIES AND CAPTIVES IN EUROPE

Car sharing includes keyless solutions, allowing the driver to reserve, unlock and start their car with a smartphone app. One example is AlphaCity, developed

by Alphabet and present throughout most European countries.

Flexible mobility offers drivers the possibility to choose their own mobility solutions (car, public transport, bike, etc.), depending on their own personal requirements. Some products, ALD Free among them, go even further: they offer combining an electric car with an e-bike or a parking card, for example.

There are a lot of other solutions out there, developed by various suppliers. Examples include short- or mid-term rental, private lease (see our dossier in this magazine), mobility cards or car pooling. And then there is AlphaElectric by Alphabet, which is not just a basic electric car leasing offer, but a complete solution, tailor-made for the customer. It includes the installation of a charging station at home and invoicing of electricity costs to the employer.

APPS FOR DRIVERS Most leasing providers in Europe don’t stop at offering fleet management tools; they also develop smartphone apps for the drivers themselves. In combination with onboard telematics recording realtime vehicle data, they enable the analysis of driver behaviour, the monitoring of vehicle activity, the measurement of fuel consumption and of the vehicle’s carbon footprint. It also allows the driver to receive advice on safer, greener driving.

6 44 6

Some of these apps, such as ALD Ecodrive, are presented as a game giving drivers the option to challenge their colleagues to compete for the best eco-driving score.

Other apps, such as AlphaGuide or FCA Group’s Leasys Driver App, are designed to make life easier for both drivers and fleet managers. Via these apps, the driver can access his leasing contract info or his damage record. He can find a nearby dealer or service center or in case of any issue or emergency quickly contact his Alphabet advisor.

But what about privacy with this kind of telematics product? PSA Group has a solution: an ‘incognito’ mode is available on its Interparc Connect Management App. CAPTIVES ARE LESS MOBILITY ORIENTED In terms of mobility solutions, there’s an important difference between multi-brand leasing companies and captive leasing companies. The latter don’t offer any truly innovative mobility solutions to their customers. They only provide traditional vehicle leasing, coupled with online solutions and tools which help fleet managers reduce their fuel cost and/ or carbon footprint.

Volkswagen Financial Services is the only captive to provide an e-mobility solution, in the shape of its Charge&Fuel Card. The card enables customers to both recharge their electric vehicle and fill it up with regular fuel. Customers can see all available charging points nearby as well as their capacity, can identify themselves at the charging stations, can get information about the connector type, etc.

However, the product is currently only available in Germany, where it can be used at over 3,000 charging points from a variety of providers.

FLEET EUROPE #84

BUSINESS

10th edition

Fleet Europe Taxation Guide 2016 GET A 360° VIEW ON COMPANY CAR TAXATION IN EUROPE

Stefan Herbert's new fleet function Steven Schoefs

6 COUNTRIES

23 COUNTRIES

LUXEMBOURG

ONLINE:

AUSTRIA

NETHERLANDS

BELGIUM

NORWAY

CZECH REPUBLIC

POLAND

DENMARK

PORTUGAL

LATVIA

FINLAND

ROMANIA

LITHUANIA

FRANCE

RUSSIA

GERMANY

SPAIN

GREECE

SWEDEN

HUNGARY

SWITZERLAND

IRELAND

TURKEY

ITALY

UNITED KINGDOM

BULGARIA ESTONIA

SLOVAKIA SLOVENIA

@Steven Schoefs

As of July 1st 2016, Stefan Herbert is Head of International Corporates Sales and smart sales functions at Mercedes-Benz Cars. He succeeds to Hans-Georg Lutz who successfully accounted for the International Corporate Sales Business since June 2009.

Stefan Herbert (40) is very well versed within Daimler AG as well as in the national and international markets. He held various positions during his fifteen years with the company.

Since the beginning of 2013 Stefan Herbert managed the worldwide smart sales functions at Mercedes-Benz Cars. As of end of 2009 Stefan Herbert established the smart brand in China as Head of smart China. In 2008 and 2009 he led the Chinese local retail consulting sales team in Beijing, after being responsible for Retail Consulting at the former DaimlerChrysler AG since 2007. Prior he held the position as area sales representative, focusing on business customers at the Mercedes-Benz dealership in Stuttgart for four years.

We proudly present the 2016 taxation Guide, a structured overview of all relevant info on company car taxation in no less than 23 countries in Europe, developed in close collaboration with the network of PwC.

Stefan Herbert started his career at the former DaimlerChrysler AG in 2002 as a Trainee for Junior Sales consultants. In the late nineties he gained first international experience at Mercedes-Benz UK in Milton Keynes.

This 10th edition of the Fleet Europe taxation Guide is the best instrument on the market to make the right tax choices for your company car fleets across Europe.

The printed version provides you with a comprehensive overview of company car taxation in 23 European countries, and 6 other countries are available online.

Don’t miss this market reference on company car taxation!

GET IT NOW AT shop.nexuscommunication.be

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IN COLLABORATION WITH

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FLEET EUROPE #84

INNOVATION

In-car app integration Dieter Quartier @DieterQuartier

Bluetooth technology has enabled our phones to evolve into multitasking communication devices. MirrorLink, Apple Car Play and Android Auto enable drivers to safely use smartphone apps while on the road. Many carmakers support all three protocols. The main differences concern usability and safety.

GOOGLE The Open Automotive Alliance, which consists of automakers (FCA, Ford Group, GM, Hyundai Motor, PSA Group, RenaultNissan, Volkswagen Group, Volvo and others) and technology developers (Continental, LG, Parrot, Panasonic, etc.) and is led by Google, has created Android Auto. This protocol can be used by owners of an Android 5.0 Lollipop or higher OS phone. Android Auto is restricted to apps that play audio media and encompass messaging services (sms, mail, WhatsApp...) and do not take control of the entire screen, but just provide the content.

APPLE Car Play is basically the Apple version of Android Auto – and is generally easier to use. It was introduced with the release of iOS 7.1 and requires an iPhone 5 or higher.

Like its Google counterpart, Car Play only allows certain apps. Alternative navigation apps, for instance, are not supported, Apple allows only Apple Maps. On the plus side, Android Auto and CarPlay offer integrated voice recognition, a major plus when it comes to driver safety. You can have messages read aloud (text-to-speech) and respond to them by dictating instead of typing (speech-to-text).

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MIRRORLINK Originally developed by Nokia back in 2011, MirrorLink is currently operated by the Car Connectivity Consortium (CCC).

MirrorLink is designed for maximum interoperability between a wide range of smartphones and cars, regardless of operating system or hardware manufacturer. Contrary to Apple’s and Google’s protocol, it allows the app to take control of the entire head unit display.

Theoretically, it can send any information to the screen. MirrorLink has a stringent certification / approval process in place. An app is either certified for use while stationary, or for use while stationary or driving.

FLEET EUROPE #84

ADVERTORIAL

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The Optima Sportswagon is equipped with Kia’s latest audiovisual navigation (AVN) system.

Michael Cole, Chief Operating Officer, Kia Motors Europe, commented: “The Optima has come to define Kia globally, and is credited with kick-starting the brand’s design-led transformation. The SPORTSPACE concept from 2015 was a clear intention of where we wanted to take the Optima next, and the Sportswagon adds an extra level of style and practicality to the well-received sedan.”

The new Kia Optima Sportswagon is due to go on sale across Europe on 1st September 2016.

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FLEET EUROPE #84

Cole added: “This is an important product for Kia in Europe, and it will increase our presence in this hugely important segment. In Europe, two thirds of all sales in the D-segment, and three quarters of all fleet sales in this class, are made up of tourers, so the Optima Sportswagon will play a critical role in attracting new private and corporate buyers to the brand. This is an important conquest product for Kia.”

HIGH STRENGTH BODYSHELL WITH ACTIVE SAFETY TECHNOLOGIES The new Sportswagon offers a high level of safety from its lightweight, high-strength body and high levels of passive and active safety technologies; • Advanced Smart Cruise Control, which automatically adjusts the Optima’s speed to maintain a safe distance from vehicles in front; • Autonomous Emergency Braking, which employs a long-range radar detection system to detect a potential collision with another vehicle or pedestrian and help bring the car to a halt; • Lane Keeping Assist System, which detects the Optima’s position in relation to lane markings and takes automatic corrective action if it senses the car starting to draft without the use of indicators; • Speed Limit Information Function, displaying the speed limit in the driver’s instrument cluster based on cameras detecting roadside signs; • Blind Spot Detection, with a visual warning in the door mirror when another car enters the driver’s blind spot.

The new engine updates for the Optima sedan are carried over unchanged into the Sportswagon, with the 1.7-litre CRDi diesel engine accounting for the majority of European sales. The engine benefits from a series of modifications, resulting in greater power output and torque, and reduced emissions. Producing 141 ps and 340 Nm torque, the upgraded 1.7-litre diesel engine will offer low CO2 emissions starting from 110 g/km.

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REMARKETING

Petrol Beats Diesel Frank Jacobs @FrankJacobs

PETROL IS ECONOMICAL FOR FLEETS Petrol is increasingly the preferable solution for fleet cars. This results from Alphabet Belgium's annual study. The lease company analyzed vehicle price, tax, VAT, fuel use and residual value to find which motorisation is best. Petrol is now increasingly competitive and not diesel anymore. In the compact segment petrol is advantageous for up to 20,000 km/year and a 60 months contract. Petrol cars are even the better choice at annual mileages of up to 35,000 km. Also in the business segment, petrol cars are becoming more prominent.

Hybrids and electrics are economical alternatives, thanks in part to tax benefits. Diesel generally remains the preferred option in the executive and luxury segments.

KAR ACQUIRES GRS REMARKETING U.S. vehicle auction company KAR Auction Services has acquired the UK company GRS Remarketing Ltd. “KAR is committed to international growth, and the acquisition of a leading technology business like GRS complements our wide range of vehicle remarketing services,” said Jim Hallett, KAR CEO. KAR purchased in June 2015 HBC’s Vehicle Services. Last month, TradeRev UK which is owned at 50% by ADESA UK, a business unit of KAR, announced a partnership with Arval to provide upstream remarketing services for a luxury segment of Arval's UK portfolio.

REMARKETING

IMPROVING RESIDUALS ADD TO “MOMENTUM” FOR ALTERNATIVE FUELS Questions on the reliability of diesel emissions data provide an opening for the growth of alternative-fuel vehicles (AVFs).

“The AFV sector begins to see some real momentum, it is important to understand why and to recognize what will happen in coming years”, says Rupert Pontin, Director of Valuation at EurotaxGlass's. An important part of the economic feasibility of AFVs is their residual value. Figures show the plug-in hybrid version of the Audi A3 could have a better RV than the diesel variant: 65.42% at 12 months and 12,000 miles and 51.46% at 36 months and 36,000 miles for the E-tron, versus 62.06% and 44.48% for the 2.0 TDI. Although, the resale market for AFVs remains poorly developed, notes Rupert Pontin.

EQUAL ACCESS TO VEHICLE DATA Only customer data provides car dealers with the opportunity to develop sustainable business models. For the European Car Dealers (ECD) there is a “need to get equal access to data generated by connected vehicles” says Antje Woltermann, ECD Chairperson and vice president of the European Council for Motor Trades and Repairs (CECRA). As OEMs are increasingly becoming mobility providers, the dealers are unhappy with the lack of definition for their role in the emerging new mobility landscape. Car dealers fear they are being left out of the loop when it comes to both customer data and car data. CECRA asks the European Commission to establish a legal framework for access to vehicle data, ensuring fair competition for dealers in order to improve their customer service.

USED CARS NEED TO “FEEL RIGHT” Service gaps and repair work are the two main reasons to turn down used cars. A survey conducted among 20,000 members of the AA, the UK's main motorist association reveals the importance of preparation in selling used cars, ensuring that they meet the expectations of potential buyers. Other reasons for turning down a used car are a visibly deteriorated state of the bodywork, a test drive that “didn't feel right” and for 1/4 of drivers’ a car interior that doesn't match the expectations because for example it smelled of cigarettes.

www.volkswagenleasing.de/internationalfleet

International Fleet

As a European market leader with many years of experience in implementing fleet solutions, we are a reliable partner and assist our clients with a diverse range of high quality products and services.

Further information about international fleet solutions can be found at www.volkswagenleasing.de/internationalfleet

EXPERT

New accounting rules don’t change case Leased cars will go on-balance sheets for the first time from 2019 for companies that use international financial reporting standards. Julian Rose from Leaseurope explores which companies will be affected and the likely impacts.

He shows that the sky isn’t falling down on leasing.

JULIAN ROSE Leaseurope’s adviser in lease accounting and Secretary of Accounting and Taxation Committee.

HIGHLIGHTS • Fleet managers choose leasing because it delivers real economic benefits.

• The economic benefits of leasing won’t be affected

by IFRS 16.

• Most companies in Europe are unlikely to see new rules for leases until 2023.

• For companies that are affected from 2019 there shouldn’t be too many problems.

• IFRS 16 has to be approved for use in Europe so there’s still time to raise any concerns.

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Around 3,500 days, or nine and a half years, after the International Accounting Standards Board (IASB) formally started its joint project with the US Financial Accounting Standards Board (FASB) project to review accounting rules for leases, the IASB finally published its new standard, International Financial Reporting Standard (IFRS) 16 Leases in January this year. If endorsed by the European Union it is due to be implemented by 2019.

IFRS 16 consists of 25 pages of rules plus 65 pages of appendices. The IASB also published 90 pages explaining the basis of its conclusions, 57 pages of illustrative examples, an 18-page project summary and feedback statement, and a 103-page effects analysis.

THE SKY ISN’T FALLING DOWN ON FLEET LEASING It’s a myth that companies use leasing to keep assets off-balance sheet. After all, accounting disclosures already include plenty of information about operating leases. The reality, of course, is that leasing is used for fleets because it delivers real economic benefits to companies particularly those with car fleets. All the benefits of cash flow management, reducing finance costs and operational cost savings will not be affected by new accounting rules.

MORE THAN 99% OF EUROPEAN COMPANIES ARE NOT DIRECTLY AFFECTED Under the EC Accounting Directive only ‘public interest entities’ (PIEs) must use international accounting standards.

PIEs include mainly firms listed on stock exchanges. Member States do have the option of adding other businesses that are of ‘significant public relevance’ and as a result, the percentage of companies required to use IFRS varies by country. In total there are around 28,000 PIEs. That’s only around one in 1,000 of the 26 million business enterprises in Europe.

Ten years into the lease accounting changes, what are the key points fleet managers need to know about IFRS 16?

Here’s Leaseurope’s top five points.

FLEET EUROPE #84

EXPERT

Simplified IFRS16 rules for SME's will be availably in 2023.

Other firms have the option of using IFRS, but most European companies use local accounting rules instead. Each country has a national standard setter that fixes these rules. Many authorities have rules that closely IFRS or the small companies’ version called IFRS for SMEs. IFRS for SMEs is only updated at most every 3 years and the IASB has said it has a ‘working target’ of only updating every 6 years.

There’s a new version in 2017 that won’t include the new lease accounting rules. It’s likely, therefore, that a simplified version of the IFRS 16 rules will be included in IFRS for SMEs from 2023. Based on that, national accounting standards might change from 2023, but equally national standards setters could decide to leave lease accounting unchanged for most companies.

IFRS 16 IS NOT YET APPROVED FOR USE IN EUROPE AND MAY STILL BE IMPROVED A lengthy and quite complex process is now underway that will lead to a vote at the European Commission Accounting Regulatory Committee (ARC) on whether IFRS 16 should be adopted for use in the EU. If that vote is favourable, members of the European Parliament and Council of the European Union will then have 3 months to oppose the adoption before IFRS 16 will be adopted for use in Europe.

It’s unlikely that IFRS 16 will not be adopted at all but there it is still very possible that an improved European version could be agreed.

This could include more useful exemptions than the IASB has provided simpler disclosure requirements, and a clearer definition of the difference between leases and services.

FLEET EUROPE #84

ACCOUNTING FOR FLEETS WILL (USUALLY) BE STRAIGHTFORWARD… Many PIEs are large firms and can be expected to have accounting teams able to deal with the new rules. IFRS 16 will be just the latest in a line of other changes to IFRS in recent years that have been implemented.

Also the accounting for today’s operating leases will follow similar rules to existing finance leases so the new rules should not be too problematic. Fleet providers are already working with their customers who use IFRS to ensure the information they will need for IFRS 16 reporting will be available.

… BUT IF THERE ARE PROBLEMS FLEET LESSEES SHOULD NOTIFY EFRAG In June the EC’s Accounting Regulatory Committee will ask the European Financial Reporting Advisory Group (EFRAG) for its advice on IFRS 16. EFRAG will then consult over the summer before preparing a report to the ARC on any technical issues and whether IFRS 16 will be in the European public good.

As fleet lessees begin to review IFRS 16 it’s important they raise any concerns as EFRAG has indicated it will rely heavily on ‘real-life’ examples. Areas for review include the requirement to separate one lease contract into multiple contracts for accounting purposes in some circumstances and the practicability of meeting the disclosures requirements.

99 %

OF EUROPEAN COMPANIES ARE NOT IMPACTED

2023

NATIONAL ACCOUNTING STANDARDS MIGHT CHANGE FROM THEN

FACTS TO RETAIN 1. New accounting rules won’t turn the fleet sector into a battlefield.

2. More than 99% of European companies won’t be affected directly.

3. IFRS 16 is not yet approved for use in Europe.

4. A ccounting for fleets will be straightforward.

5. In case of problems fleet lessees should notify EFRAG.

55

ANALYSIS

Car rental adds offers to fleets Tim Harrup

Rather than a fleet manager simply having to phone a rental company from time to time when a replacement car was unexpectedly needed, the supply side has now structured itself to service the fleet sector professionally.

This phenomenon is perhaps best illustrated by the number of specific service offerings available to fleets, and by the expanded scope of what is on offer. The integration of Ubeeqo into Europcar, for example, bears witness to both of these trends.

Ubeeqo was, at the outset, an independent car-sharing service dedicated to the corporate sector. Now it is part of one of Europe’s best-known rental agencies.

© Sixt

Hertz, meanwhile, says that its corporate offering is based around looking at speed, ease and value, which is, it believes, exactly what corporate clients want. And like other companies, the latest technology is now an integral part of the offering.

Sixt Fastlane is an app allowing corporate travellers to go on the road quicker.

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TRAVEL AND MOBILITY This is the domain in which rental companies have a particularly important role to play.

Despite the current move towards virtual meetings, businessmen will continue to travel, and in the eyes of Europcar, maybe even more than before. To prove this, it can be seen that airports are investing in extra capacity, in being able to accept the largest aircraft and so on. So short term car rental has a very important role to play for travelling businessmen. And Hertz says that its Mobile Alerts, Carfirmation and eReturn/ eReceipts, are all part of the service offering designed to get the corporate traveller on the road quicker.

Sixt, for its part, has started the roll-out of an offering it calls Sixt fastlane, with which customers can go directly to their selected car and open it with the Sixt App. This is quite clearly a corporate service – private users are unlikely to go to the trouble of downloading an app for the occasional holiday need.

The focus on fleets is confirmed by Enterprise. The company says its services vary by country, demand and company requirements. The services on offer include preferred rates, and a single global loyalty rewards programme – Emerald Club – with the benefit of mass enrolment. In a statement which is reminiscent of company fleet policies rather than what has traditionally been thought of as the ‘occasional’ solution of short term car rental Enterprise also says it offers travel policy compliance and mileage reimbursement solutions.

Moving to Avis, with Avis Flex it offers all-in rental packages for corporate customers, from one to eleven months – clearly providing a multi-purpose ‘shorter than a lease contract’ solution.

The final and summarizing word goes to Didier Fenix of Europcar: “Today the business model is evolving in many places, with new mobility models emerging”.

FLEET EUROPE #84

PERFORMS GREAT ON STREETS AND BALANCE SHEETS

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ANALYSIS

SHORT RENTAL OFFERS IN EUROPE COMPANY

SIXT

Enterprise Rent-A-Car

SERVICE

SPECIFICITIES

COUNTRIES

Sixt Unlimited

Unlimited mobility for all customers with frequent rentals

D, AU, SCH, F, SP, UK, BE, NL, LUX

Sixt Replacement

Replacement cars for all eventualities

Europe

Sixt DriveNow

Convenient transfers, e.g. at airports

D, DEN, AU, SWE, UK

Sixt Leasing

Low-cost company cars

Europe

Various services

Services include: consultative account management, implementation guarantee led by a centralised team, transparent billing, dedicated account development representatives, superior reporting. Travel policy compliance and mileage reimbursement solutions.

40 EMEA countries

Month or More

Rent a car, van or truck for a month or more.

Hertz 24/7

Keyless cars - available 24/7- can be booked by the employees on the phone, online or using the app.

F, D, IT, NL, SP, UK

Mini-lease

Is called: FlexiRent in France, Hertz 28+ Plan in the UK, Hertz 30+ in Italy, Hertz 30 in Spain and Minilease XL in Belgium and the Netherlands, Minilease in Germany.

Flexivan

Van rental with no commitment or penalty for early return.

B,F, SP, D, It, NL, UK

Business First Account

Full-service vehicle hire for small and medium sized businesses. It provides fixed, preferential business rates on UK and European car hire.

UK

AVIS

Avis Flex

Flexible mobility solution designed to save time and money for more than 30 days car rentals.

Europe

AVIS/ BUDGET

Avis Car Rental, Vehicles can be delivered to home or business address and facilitates one way travel Budget Car Rental if needed. A range of ancillary products are available. and Zipcar

HERTZ

EUROPCAR

UK and Europe, services vary by country

Ubeeqo

Corporate car-sharing, including ‘mobility budgets’, combining a smaller car with a budget for the driver to use on other forms of transport. Also includes Bettercar, a fleet management application based on on-board telematics to analyse fleet vehicles’ use.

F, D, B, L, UK

Fit rent

A commitment-free medium-term rental offer aimed at small and medium-sized companies.

Europe

E-reporting

An on-line fleet reporting tool, with the possibility to drill down to driver data.

Europe

Note: The table is not exhaustive, and does not cover every company, cost or service in all countries.

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ANALYSIS

Car rental broadens its horizons Jonathan Manning

Daily rental companies are extending their product offerings at both ends of the spectrum by offering hourly and annual hire agreements. The expansion of services meets growing corporate demand for flexibility in sourcing vehicles, and opens new commercial opportunities for rental companies.

Daily rental firms are shortening and extending their hire periods to meet the changing needs of corporate customers.

At one end of the spectrum, car and van rental companies are becoming key players in the rapid growth of car clubs that allow drivers to hire a car by the hour. At the other end, long term vehicle rental is starting to challenge the fixed holding periods of leasing or outright purchasing vehicles. It provides cars and vans at a cheaper rate than hiring them by the day or week, and offers the flexibility to return them at any stage without incurring the early termination penalty that a leasing company would charge.

In the short-term car share, car club sector, Europe’s major rental companies have made a series of investments. Avis bought Zipcar,

Enterprise has launched Enterprise Car Share, Europcar is a majority shareholder in Ubeeqo, Hertz has Hertz 24/7, and Sixt have developed DriveNow in partnership with BMW and MINI. These growing businesses focus on providing a cost effective and convenient alternative to owning, parking and running a car, particularly in the continent’s larger cities.

“Owning a car for the occasional genuine need to drive is a real luxury, due to the heavy fixed costs that hit you – even before you’ve travelled a single mile – like, depreciation, insurance, maintenance/MOT and parking permit,” said Mark Walker, general manager, Zipcar UK. The same costs apply to fleets, hence the growing corporate interest in using car share schemes as an alternative to maintaining a pool fleet or even using taxis. More than 800 companies have accounts with DriveNow, which has operations in nine cities across Austria, Denmark, Germany, Sweden and the UK. In Germany, more than a quarter of DriveNow journeys are now invoiced to corporate accounts.

Clients range from small agencies to multi-national conglomerates like Bayer, with business customers able to register in one country and use cars in another. As a mobility solution, the cost savings are considerable, says Aurika von Nauman, spokesperson for DriveNow. “If you drive one-way to Munich airport from the city in a DriveNow car, it will cost you about €25. If you use your own car, the

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FLEET EUROPE #84

ANALYSIS

LONDON

£ 3 435,87 182/7.6

PA R I S

1/ Convenience 2/ Flexibility 3/ Cost 4/ B est option in bad weather 5/ P ublic transport not reliable enough

€ 26,50 135.2/5.6

BARCELONA

€ 3 284,67 € 16,62 197.6/8.2

1/ Flexibility 2/ Convenience 3/ Cost 4/ P ublic transport not reliable enough 5/ B est option in bad weather

€ 3 583,18

MADRID

1/ Convenience 2/ Flexibility 3/ Cost 4/ B est option in bad weather 5/ P ublic transport not reliable enough

€ 3 785,36 € 17,33 218.4/9.1

1/ Convenience 2/ Flexibility 3/ Cost 4/ B est option in bad weather 5/ P ublic transport not reliable enough

ICONS COST PER YEAR FOR OWNING CAR

COST PER HOUR

NUMBER OF HOURS / DAYS ANNUALLY THAT CAR IS USED

REASONS FOR USING CAR OVER PUBLIC TRANSPORT

Research by Opinion Matters in September 2015 among 2,500 car owner/drivers in London, Barcelona, Paris and Madrid, who drive regularly within these cities.

The research results for this press release were based specifically on city drivers that own a car worth up to (20,000 Euros in Paris, Barcelona and Madrid, and £15,000 in London) at time of purchase.

airport parking alone will cost €30, and a taxi would be €60. DriveNow brings a huge reduction in travel costs.”

Ubeeqo estimates that typical pool cars can have a utilisation rate of as low as 10%, depreciating assets sat idle in company car parks. Liberating parking bays for Ubeeqo cars gives employees immediate access to vehicles when they need them, for as little as £6 per hour including the first 80 km and fuel, and no fixed, standing costs for the business.

Drivers reserve the cars through a smartphone app and use a car or smartphone to access the vehicle, leaving the key in the glovebox at the end of use.

FLEET EUROPE #84

“By pooling the access to service vehicles you increase their average usage rates (i.e. light utility vehicles). You can reduce the size of your fleet by 30 to 40% by mutualising the use of available vehicles,” claims Ubeeqo.

If these burgeoning services allow fleets to rent cars by the hour, at the other end of the scale, demand for very different rental solutions is growing among businesses uncertain of their long term transport needs.

Products like Avis Flex, Enterprise’s Month-or-more and Hertz’s multibranded Minilease XL (in Belgium and the Netherlands, FlexiRent in France, Hertz 28+ Plan in the UK, Hertz 30+ in Italy, Hertz 30

61

ANALYSIS

in Spain) bridge the gap between daily rental and long-term leases.

Richard Bowden, VP commercial sales, Hertz International, identified three primary reasons why this type of rental solution is proving particularly suitable for companies, “that are awarded short or medium term projects that imply extra mobility needs for less than 3 years; that have new staff in the process of receiving their purchased or leased vehicles and need transportation in the meantime; and for

CASE STUDY COMPANY Enserve Group INDUSTRY Infrastructure support to the utility sector FLEET SIZE 1,000 light commercial vehicles VEHICLE TYPES Peugeot Partners, crew vans and tippers to highly specified Mercedes-Benz Sprinters with bespoke racking systems FLEXIBLE RENTAL SUPPLIER Northgate Vehicle Hire Enserve Group has achieved significant financial savings and operational efficiencies since switching a large proportion of its fleet from full service leasing to flexible rental. The company provides infrastructure support services to the utility sector in the UK, and runs a fleet of 1,000 light commercial vehicles.

Group fleet manager Paul Brown

said Enserve had traditionally considered rental to be a short term vehicle solution, and consequently relied on leasing to fund its fleet. But it felt restricted by having the majority of its fleet on long term contractual agreements.

“Our client contracts often last three to four years, so it was thought that leasing was a suitable solution for this,” said Brown. “However, the requirements of a contract can often change partway through – meaning a completely new set of vehicles being needed to finish the job, or the contract being terminated early. With no room for manœuvre with contract hire or leasing, we were stung on early termination fees to get the freedom we needed to adjust the fleet to changing business needs.”

Long-term flexible rental, however, offered the same vehicles with the same equipment, at the same price as leasing, but with the added benefit of flexibility, he concluded.

companies running pool fleets that need the flexibility to increase the number of vehicles to suit their business calendar.”

He added that insurance, maintenance, roadside assistance and replacement vehicles are all included, and there are no early return penalties after the first month.

ADVANCED FLEXIBILITY FOR LCV But it’s in the light commercial vehicle market where flexible rental is arguably at its most sophisticated, used by companies to meet seasonal requirements and fluctuating business needs.

“You can align your vehicle commitments to your project commitments,” said Danny Glynn, managing director, Enterprise Flex-E-Rent. “Customer requirements are changing in a world where transport and mobility are evolving rapidly.”

Flex-e-Rent allows customers to hire a vehicle for a year, but return it early with just 14 days’ notice, without having to pay either a penalty charge or the remainder of the contract. When long term rental agreements are terminated prematurely, however, Enterprise would make an adjustment to the fees it had charged, switching the client from the cheaper rate for 12-month contracts to its short-term hire fees for the days the customer had had the vehicle.

The difference between the two rates is about 10-15%, depending on the vehicle.

“But if you had bought the vehicle or leased it, you would be stuck with it,” said Glynn.

Northgate Vehicle Hire is one of the biggest players in this flexible rental market, operating a fleet of 39,700 vehicles in Spain and 47,600 in the UK. One of its clients is Enserve Group, which provides infrastructure support services to the utility sector. The company runs a fleet of 1,000 vehicles, of which 450 are sourced on a long term flexible rental basis from Northgate Vehicle Hire.

“For me, the benefits of using long term flexible rental were clear,” said Paul Brown, Enserve’s group fleet manager.

“The critical point was that Northgate could offer the same vehicles, at the same price and with the same equipment as contract hire [full service lease] or lease, but with the added benefit of flexibility.

Contract hire was too constricting for the nature of our business.”

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To learn, share and meet The 2016 edition of the Global Fleet Conference was organized from 6-8 June in the heart of Europe, Brussels. No less than 300 attendees, from 30 countries across the globe, got together to discuss current and future Global Fleet trends.

On the menu: 6 engaging sessions dealing with the economical, legal, environmental, technological and regional factors impacting Global Fleet Management optimisation.

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Sharing best practices on global supply management, integrated mobility, embracing telematics and handling regional challenges was the objective for the 20 international fleet managers participating in the Global Fleet Advisory Board.

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The 2016 Conference started with an economic outlook from Ivan Van De Cloot, Itinera (picture) and the presentation of hot-pressing car fleet trends by Marc Odinius, Dataforce.

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Caroline Thonnon, Nexus Communication, presented the main results of the 2016 Global Fleet Survey: globalisation is on the rise, but can’t do without regional harmonisation and local implementation.

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Ivor Johnson, Pfizer (picture), and Romain Trébuil, L’Oréal, shared insights to pass from fleet management to a a more efficient mobility management.

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Norman Din, Wheels, & Jef Van Oosterbos, LeasePlan International, exposed the impact of IFRS2016 & the new Lease Accounting Standard for global fleets.

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Matt Nicholson, Fleetcor, examined the development of alternative fuel infrastructure.

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Lee Warner, Unilever, shared some key steps in going global and presented the first results of Unilever’s global fleet exercise.

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Denis Bicheron, Gras Savoye, Knut KrĂśsche, Volkswagen Financial Services, Davide Ghione, Tesla and Geerts Behets, UCB (from l. to r.) discussed the possibility of having a self-driving fleet by 2020, the opportunities and threats.

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The Global Fleet Conference closed by a session focusing on regional markets with Frederick Ooi, LeasePlan Malaysia (10), talking about Mobility in South East Asia; John Dmochowski, Mondelez International (11), presenting the Fleet Management trends in the United States; and Montse Empez Vidal, Applus (12) looking for fleet maturity in Latin America.

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The Global Fleet Conference was also a unique opportunity to meet and network with fleet peers, industry suppliers and experts. For example during the official Global Fleet Conference dinner. This nice moment took place at the Cercle de Lorraine where the guests could savor various Belgian specialties.

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READ MORE All articles related to the Global Fleet Conference 2016 are available on www.globalfleet.com

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Awards: Innovation from the supplier side Céline Gilson @CelineGilson

The Fleet Europe Awards 2016 is the unique occasion to reward the professional and innovative accomplishments of the fleet industry. This year, not two but three prizes will be awarded to the fleet suppliers during the Fleet Europe Award Ceremony in Barcelona on November 16.

Who will succeed to ARI Fleet as International Fleet Industry Award’s winner ?

AWARDS CATEGORIES FOR FLEET MANAGERS The Award Ceremony rewards also the international fleet managers in 3 categories: The International Fleet Manager of the Year Award honors a fleet management strategy leading to an optimised TCO, The International Smart Mobility Management Award recognises a green project or initiative in efficient alternative mobility, and The International Fleet Safety rewards a fleet safety project that enhances driver safety.

APPLY NOW For more information on the Fleet Europe Awards 2016, and to become a candidate, please visit forum.fleeteurope. com/programme/award.

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SHOW YOUR INNOVATIVE FLEET MANAGEMENT SOLUTIONS The International Fleet Industry Award aims at rewarding the innovative efforts in service development of today's vehicle fleet suppliers.

The jury - composed by international fleet managers only, together with representatives of Nexus Communication - will vote for the best projects designed to help international fleet managers to improve their fleet management at international level.

This Award is open to the international fleet industry - manufacturers, leasing companies or other vehicle fleet suppliers – who propose tools designed to help fleet managers improve their fleet management (car policy, reporting, online apps, driver communication, KPI optimization…) and products or services which help international fleet managers achieve their goals (TCO, sustainability, mobility, HR, fuel and CO2 reduction…).

The jury will particularly attentive to the degree of innovation, the objectives, the efficiency, the information given with the demo, the level of implementation in the market and the impact on TCO reduction or control of the projects.

BECOME THE FIRST WINNER OF THE SMART MOBILITY START-UP AWARD And this year, not only reputable international companies can apply. A new award category is open to the promising European start-up companies developing products or services

in the fleet & mobility industry. Fleet Europe launches the Smart Mobility Start-Up Award, especially dedicated to the start-ups.

Are invited to submit their application all developing companies, respecting the four following conditions: • be based in Europe, • develop innovative fleet & mobility products or services, • search funding • and show high potential for growth.

Beside the opportunity to bring the Smart Mobility Start-Up Award home, the finalists will have a unique chance to show to the fleet sector the potential of their business given the fact that a booth will be offered them in the Start-Up Corner of the Fleet Europe Village.

They will have also the possibility to show their project via a video presentation to the Forum audience, who, based on it, will vote for the candidate of its choice.

BE ELECTED AS THE 2016 PILLAR OF THE FLEET COMMUNITY Finally the International Fleet Hall of Fame recognizes vehicle fleet industry leaders and pioneers who have contributed to the international fleet management profession throughout their career. Eligible nominees must have at least 5 years of international fleet management experience. The inductee will be nominated and elected by the complete Fleet Europe Community.

FLEET EUROPE #84

COLOPHON EDITORS Steven Schoefs – Chief Editor sschoefs@nexuscommunication.be

15 November I Catalunya Congress Center I BARCELONA

SAVE THE DATE

Antigoni Vokou – Journalist avokou@nexuscommunication.be Céline Gilson – Project Coordinator cgilson@nexuscommunication.be CONTRIBUTORS Tim Harrup, Frank Jacobs, Jonathan Manning, Damien Malvetti, Dieter Quartier, Caroline Thonnon EXPERTS Julian Rose (Leaseurope)

Daniel Savigny – International Key Account Manager dsavigny@nexuscommunication.be Aline Verpoorten – Internal Sales Assistant averpoorten@nexuscommunication.be

Pictures: ©Shutterstock - ©ThinkStock

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Layout: Hungry Minds info@hungryminds.com

SEAT (1-2), ŠKODA AUTO A.S. (4), ALD Automotive (7), Alphabet International (9), Daimler AG (16-17), Maserati (24-25), BMW Group (31), FCA (33, 63), RCI Banque (35), Automobiles Peugeot (44), Renault (47), LeasePlan International (49), Volkswagen Financial Services (53), Adam Opel AG (57), Citroën (59), Hyundai Motor Europe (68).

Take Away Even More!

More information on forum.fleeteurope.com

Sigrid Nauwelaerts – International Key Account Manager snauwelaerts@nexuscommunication.be

Virginie Emonts – Sales and Marketing Assistant vemonts@nexuscommunication.be

Cover: Benjamin Brolet, Maurizio Rigato

With the added benefit of previous experience, sector feedback and the guidance of an Advisory Board composed of industry experts, the 3rd Remarketing Forum will be even more useful and relevant to fleet professionals than previous editions.

So come to Barcelona, and take away even more knowledge, expertise and useful contacts than before!

SALES & MARKETING David Baudeweyns – International Key Account Manager dbaudeweyns@nexuscommunication.be

FLEET EUROPE

Fleet Europe Magazine

@Fleet_Europe

FleetEurope

www.fleeteurope.com Fleet Europe is published by Nexus Communication SA Parc Artisanal 11-13, B-4671 Barchon (Belgium) T +32 4 387 87 71 - Fax +32 4 387 90 63 - contact@nexuscommunication.be Fleet Europe is registered and copyrighted trademark. Reproduction rights (texts, advertisements, pictures) reserved for all countries. Received documents will not be returned. By submitting them, the author implicitly authorizes their publication.

PUBLISHERS Caroline Thonnon – CEO & Head of Business Development Thierry Degives – CEO & Managing Partner

Business? It’s a pleasure!

The Hyundai i40

Inspiring design. Welcoming comfort. Advanced technology. The i40 Wagon delivers everything a driver could wish for, including the sophistication of a 7-speed dual-clutch transmission and a Lane Departure Warning System. What’s in it for you? The reassurance of competitive pricing, low operating costs and high residuals. This is the car that makes business a pleasure. The Hyundai i40. Expect more.

Combined fuel consumption for the i40 range: 4.2 - 7.5 l/100 km. Combined CO2 emissions for the i40 range: 110 - 176 g/km. The 5-year unlimited mileage warranty is valid in all EU member states + EFTA. Warranty is subject to local terms and conditions. For taxi or rental usage model specific restrictions apply.

For more information, visit www.hyundai.com/eu