Why Alternative Powertrains Are A Viable Option For Your Fleet?

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FOR INTERNATIONAL FLEET AND MOBILITY LEADERS

11/2016

SPECIAL SPONSORED EDITION

WHY ALTERNATIVE POWERTRAINS ARE A VIABLE OPTION FOR YOUR FLEET

THIS SPECIAL MAGAZINE IS OFFERED BY HYUNDAI MOTOR EUROPE - WWW.HYUNDAI.COM

Charge your fleet with e-motion.

With a range of up to 280 kilometres of emission-free driving on a single charge, the all-new Hyundai IONIQ Electric can transform the overall energy efficiency of your fleet. It has also been engineered to deliver an engaging driving experience.

Charging could not be easier: 80% full in just 23 minutes. Among its innovative, hightech features are Adaptive Smart Cruise Control, a new infotainment and navigation system with an 8" touchscreen, and Apple CarPlay and Android Auto* connectivity.

Peace of mind is assured by the usual Hyundai 5-Year Unlimited Mileage Warranty and an extended 8-year or 200,000 km warranty for the battery.

IONIQ Electric. Driven by e-motion.

* Apple CarPlay and Android Auto are products solely provided by Apple Inc. and Google Inc. Any use of Apple CarPlay or Android Auto is at owner’s own risk, and is subject solely to an agreement and/or any terms of use established between Apple or Google and the end-customer. For further legal information, please visit Hyundai Motor Europe’s or your local Hyundai website.

Fuel consumption in mpg (l/100 km) for IONIQ Electric range: 0.0 (0.0). CO2 emissions: 0 g/km. These official EU test figures are to be used as a guide for comparative purposes and may not reflect all driving results. Vehicle charging time and speed will depend on final electricity output of selected charging facility. Quick charge option offers 80% battery charge in 23 minutes (100 kW). Hyundai provides a 5-Year Unlimited Mileage Warranty. On the lithium-ion polymer battery Hyundai provides an 8-year or 200,000 km Battery Warranty, whichever occurs first. For the 5-Year Unlimited Mileage Warranty and Battery Warranty, certain terms and exclusions apply. For detailed information on these terms and exclusions, please refer to your local Hyundai website or consult a Hyundai dealership.

CONTENT

POLICY

EMISSION-FREE MOBILITY FOR EVERYBODY In an ever more eco-conscious world, corporate mobility is moving towards new, more sustainable horizons. Aware of the fact that different usage types require different solutions, Hyundai developed the IONIQ: the world’s first car to offer the choice between a hybrid, a plug-in hybrid and a full electric powertrain.

Its mission is as pure as it is promising: to make low-to zeroemission mobility accessible for everyone. It is simply the best value eco car in Europe, without compromise in driving dynamics, comfort and safety.

In conclusion, what is a milestone in Hyundai Motor’s sustainability strategy, can soon become that of your company too.

An alternative powertrain for everyone………………………………………………………………………………………… 4-5

TCO

From competitive to outright advantageous……………………………………………………………………………… 6-7

COMFORT

Relax, it’s electric……………………………………………………………………………………………………………………………………………………………… 8

COMFORT

Driving electric has never been easier ………………………………………………………………………………………… 9-10

FUTURE

Sharing a greener future…………………………………………………………………………………………………………………………………………… 11

CASE STUDY

My fleet is Electric………………………………………………………………………………………………………………………………………………… 12-13

EXPERT VIEW

Thomas Schmid, Hyundai Motor Europe……………………………………………………………………………… 14-15

COLOPHON This edition is a special issue sponsored by Hyundai.

This content has been written based on sources from Hyundai and collaborators of Fleet Europe.

Cover: ©Hyundai Motor Europe Pictures: ©Hyundai Motor Europe - ©Shutterstock Layout: Hungry Minds - info@hungryminds.be FLEET EUROPE

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3

POLICY

An alternative powertrain for everyone Whether to opt for a fully electric vehicle, a hybrid or a plug-in hybrid depends on many factors.

The way the vehicle is used is paramount, not only in terms of TCO, but also as far as driver satisfaction is concerned.

For a long time, alternative powertrains have been considered, but not implemented – or at least not on a large scale.

On the one hand, both fleet managers and company car drivers are aware of their social and environmental responsibility.

On the other hand they expect the same usage conditions as the ones associated with a conventional car. In other words: alternatively powered cars are only truly acceptable if they do not require ‘practical’ or financial efforts.

Regarding practicality and drivability, such efforts are no longer imposed, with the new generation of electric or electrified vehicles. Range has become comfortable enough in the case of EVs, whereas hybrids no longer put a damper on motoring pleasure – on the contrary. With the Hyundai IONIQ’s six-speed dual clutch transmission, for instance, driving a (P)HEV has never been more exciting and comfortable at the same time.

THE IMPORTANCE OF COST-COMPETITIVENESS The second condition for success – financial attractiveness – depends to a large extent on tax incentives. In many European countries low-to-zero-emission cars benefit from a reduced taxation in the shape of lower road tax, higher fiscal deductibility, purchase subventions, et cetera, that partially or even entirely offset the higher investment price of alternatively powered vehicles.

The same goes for the personal contribution an employee pays for the private use of his company car: the taxation on the benefit

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in kind. Here too, low-to-zero-emission vehicles are becoming very competitive. To shift the balance even more into the direction of green mobility, Hyundai positions the IONIQ as the best value eco car on the market, making electrified driving available to a larger public than ever before.

ANALYSING DRIVER AND VEHICLE USAGE PROFILES As a fleet manager, it is important to allocate the right type of car to the right type of driver. To help you make the right choice for your fleet, you can rely for instance on online tools or specialised consulting services provided by lease companies. The criteria used in these tools can easily be integrated into your car policy.

The way drivers use their vehicle determines both the TCO savings potential and the driver satisfaction. For instance, sales representatives that travel long distances and mainly use motorways are probably better off with a hybrid and plug-in hybrid than with a 100 % electric vehicle. As they are constantly on the move, using different routes all the time, access to charging infrastructure during long-distance trips can be difficult. Also, the required charging frequency and time would limit their productivity.

However, those who use their car mainly for the daily commute are the perfect candidates for an EV, which offers an incomparably serene driving experience. In most cases, they won’t even have to charge it every day. The IONIQ Electric, for example, can travel up to 280 km (NEDC) on a single charge.

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POLICY

Alternatively powered cars are truly acceptable if they do not require practical or financial efforts.

MAKING ELECTRIC LIFE EASY To further boost driver acceptance and ease of use regarding EVs, leasing companies have worked out service packages that include payment cards to gain access to public charging points, the temporary use of a conventional car when longer distances need to be travelled (for instance, to go on holiday), or even the installation of a charging station at home.

In many cases a domestic electrical socket can suffice, but a Wallbox reduces the charging time by approximately 50 percent. To save not only time but also money, drivers of cars like the IONIQ Electric can connect their car to the mains and set a timer via the vehicle’s infotainment system, so that the charging only initiates when the offpeak electricity rate applies.

Last but not least, there are solutions on the market that enable separate billing for

IN A NUTSHELL

the electricity used at home to charge the company car, so that the employee may be reimbursed by his employer.

GET THE DRIVERS ON BOARD Just putting (H)EVs on the list of vehicles employees can choose from is no guarantee that they will proliferate in your fleet. Apart from being cost-competitive and attractive in terms of equipment, an eco car also has to create a kind of community feeling and identification with your company’s sustainability commitment.

There are various ways to achieve this. You could for instance organise a corporate event during which your employees can try out various eco cars, attend workshops explaining how the technology works and what the advantages are, or even take driving lessons to make optimum use of the vehicle and save precious fuel and preserve range.

HEV

To make things even more exciting, why not have drivers compete amongst each other for the lowest fuel consumption or the longest range, subdividing them in categories according to vehicle type and usage profile. The advantage of opting for the Hyundai IONQ, is that you can have one and the same model with three degrees of electrification – Hybrid, Plug-in Hybrid and fully Electric – covering a large part of your fleet’s needs. One model means a uniform mobile business card and a strong feeling of unity.

PHEV

EV

Type of engine

Combustion + electric

Combustion + electric

Electric

Battery capacity/ electric range

Medium

Large

Extra large

Fuel saving potential

Fuel saving potential

Zero tailpipe emissions

Everyday usability, also for longer distances

Everyday usability, also for longer distances

Serene driving experience, sufficient range for most drivers

Fiscal benefits (low CO2 emissions)

Fiscal benefits (very low CO2 emissions)

Fiscal benefits (0 g CO2)

Lower maintenance costs

Lower maintenance costs

Very low maintenance costs

No restrictions

Access to e-charging infrastructure

Access to e-charging infrastructure

Charging discipline

Anticipatory motorway use

Strong points

Conditions of use

Charging discipline

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5

TCO

From competitive to outright advantageous Electric or hybrid vehicles are becoming ever more affordable.

As far as Total Cost of Ownership is concerned, they can compete with conventional cars – or even save money.

The Hyundai IONIQ is predicted to have class-leading residual values, according new studies by independent automotive intelligence organizations across Europe

Reducing the emissions of your fleet can go hand in hand with lowering the Total Cost of Ownership – if you choose the right powertrain type to suit the driver’s usage profile and to make optimum use of tax incentives. To suit as many usage profiles as possible, Hyundai has developed not one, but three electrified powertrains for the IONIQ – Electric, Hybrid and Plug-in Hybrid, making it a realistic option for practically every user.

THE ADVANTAGES OF LOW-TO-ZERO EMISSION VEHICLES In view of the latter aspect, the Hyundai IONIQ Electric can have a considerable advantage over petrol and diesel cars. In France and the UK, EVs are exempt from the company car tax. In Germany EV buyers are eligible for a 4,000 euro premium. On top of that, in most European countries EVs do not pay registration and road tax (you can find the details in the separate box).

To make a comparison between an electric or electrified vehicle and a conventionally powered car, you need to look at four aspects: finance, service, fuel and tax. Finance is mainly the depreciation of the vehicle, whereas service consists of maintenance, repair, tyres, roadside assistance, insurance, et cetera. Fuel hardly needs explaining. Tax is not only registration and road tax, but also incentives – either at purchase or during the use of the vehicle.

Hybrids still emit CO2, but less than their conventional peers. These low-emission vehicles are therefor also rewarded in many countries by an advantageous tax treatment. These benefits are usually lower than the ones allocated to emission-free vehicles, but that is offset by the fact that they cost less than comparable EVs. Regarding the fuel bill, the cost of externally charged electricity for an EV or PHEV is much lower than that of petrol or diesel, especially if you can produce it yourself, with solar panels, for instance. Moreover, cars like the IONIQ Electric and Plug-in enable their users to program the charging period, taking electricity from the mains when the rate is the lowest.

Hybrids, and particularly plug-in hybrids, can travel on electricity alone for several miles. When more power is needed, the electric motor assists the combustion engine to produce more torque. The latter therefore needs less fuel to deliver the same performance, possibly resulting in great savings.

Talking about service, the greatest advantage of an EV is that its electric motor has far less components than the combustion engine of a conventional car, resulting in

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TCO

considerably lower maintenance and repair costs. Moreover, every battery powered vehicle uses regenerative braking, meaning that the car’s brake pads will last longer.

STRONG RESIDUAL VALUES Finance, the fourth element that makes up the TCO of a car, is also the one with the largest impact. It is mainly determined by the difference between the investment price of a car and its residual value. The lower the investment amount and the higher the resale value, the lower the depreciation and hence the finance cost.

The Hyundai IONIQ is predicted to have class-leading residual values, according to new studies by independent automotive intelligence organizations across Europe.

In comparison to their competitors, both the IONIQ Hybrid and the Electric rank first or second in every market where research has been conducted (Germany, UK, Spain, France, Italy and the Netherlands).

The IONIQ Electric’s RV performance is attributed to its significantly lower energy consumption, its high perceived quality, its roominess and practicality and the fact that it offers true driving fun. Equally beneficial to the residual value is the eight-year or 200,000 km warranty on the battery, which boosts customer confidence and makes the car attractive on the used car market.

The IONIQ Hybrid’s RV benefits from the Five Year Unlimited Mileage Warranty package, including the best-in-class warranty on hybrid components. Also setting it apart from its hybrid competitors are its comprehensive standard equipment and unrivaled driving dynamics, not least thanks to its unique six-speed dual clutch transmission.

TAX INCENTIVES HYBRID AND FULL-ELECTRIC VEHICLES GERMANY Electric vehicles are exempt from the annual circulation tax for a period of ten years from the date of their first registration.

exempt from the company car tax. Hybrid vehicles emitting less than 110g CO2/km are exempt during the first two years after registration.

NETHERLANDS

UK Electric vehicles (with CO2 emissions below 100g/km) are exempt from the annual circulation tax, while other alternative fuel cars receive a £10 discount on the paid rates. From 1 April 2010, pure electric cars are exempt from the company car tax, while all cars with CO2 emissions lower than 50g/km pay 5% for the tax year 2015/2016.

FRANCE Regions can provide an exemption from the registration tax (either total or 50%) for alternative fuel vehicles.

A premium is granted for the purchase of a new electric or hybrid electric vehicle. From 1 January 2016, for a car emitting between 61 and 110g CO2/km, the amount of the bonus is €750.

For a vehicle (car or LCV) emitting between 21 and 60g CO2/km, the bonus amounts to €1,000. For a vehicle (car or LCV) emitting 20g CO2/km or less, the bonus is €6,300. EVs are

Electric vehicles are exempt from the registration tax BPM. Vehicles emitting maximum 50g CO2/km are exempt from the annual circulation tax.

SPAIN Main city councils (e.g. Madrid, Barcelona, Zaragoza, Valencia et cetera) are reducing the annual circulation tax (ownership tax) for electric and fuel efficient vehicles by 75%.

ITALY In many regions, electric vehicles are exempt from the annual circulation tax for a period of five years from the date of the first registration. After this five-year period, they benefit from a 75% reduction of the tax rate applied to equivalent petrol vehicles.

Source: ACEA, 2016.

HYUNDAI IONIQ’S RESIDUAL VALUE PREDICTION IN EUROPE

GERMANY*

UK**

FRANCE*

NETHERLANDS*

SPAIN*

ITALY*

IONIQ Electric

47%

27%

31%

42%

-

-

IONIQ Hybrid

48%

49%

47%

47%

50%

41%

*Source: Eurotax, 36 months / 60,000 km - **Source: CAP HPI, 36 months / 60,000 miles

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7

COMFORT

Relax, it’s electric New technology requires some getting used to.

Charging is actually easier than filling the tank with petrol, but how can a car lend its driver a helping hand to make the user experience as comfortable and carefree as possible?

Implementing alternative powertrains may cause a certain resistance amongst company car drivers. In the case of electric cars, some customers still have range anxiety and express concerns about charging and how to operate the vehicle. That is why Hyundai has developed a multitude of technologies for the IONIQ that remove this anxiety and secure absolute ease of mind.

To start with, both versions of the IONIQ that can be charged externally – the IONIQ Electric and Plug-in Hybrid – are equipped with electronic control systems featuring advanced algorithms that get the most out of their batteries in terms of range. Secondly, Hyundai has made sure that the IONIQ drives like a conventional car – a very dynamic and well-equipped one at that. Finally, the carmaker has developed a state-of-the-art infotainment system with specific features to assist the driver with information about range, energy consumption and efficiencymaximising driving style.

MAXIMUM RANGE, EASY CHARGING The IONIQ Electric can travel 280 km (NEDC) on a single charge, providing greater flexibility and peace of mind. The IONIQ

The IONIQ Electric can travel 280 km (NEDC) on a single charge.

Plug-in can drive more than 50 km (target value) in pure electric mode, increasing the possibility of fuel-free driving for those customers who typically cover shorter distances. That is not to say that a PHEV is not suitable for longer travels – on the contrary.

The perfect symbiosis between the combustion engine and electric motor make for considerable fuel savings under most driving conditions.

Another important aspect in convincing potential e-drivers is ease of charging. The IONIQ Electric’s lithium-ion polymer battery can be charged up to 80% in only 23 minutes using a 100 kW direct current (DC) fast charger.

Moreover, the on-board In-Cable Control Box (ICCB) allows drivers to charge their IONIQ at a regular compatible household alternating current (AC) power socket or at a wall-box.

The charging timing can be pre-programmed through the advanced infotainment system, enabling the user to benefit from the cheapest rates available.

SMART INFOTAINMENT The central hi-res TFT display of the IONIQ visualises the way in which the car is powered during acceleration and how energy is being recuperated during deceleration and braking. This creates awareness and stimulates the driver to save energy – for which he is rewarded with visible extra electric range.

The system also shows the nearest charging points and the expected charging time.

Moreover, the IONIQ allows drivers to integrate their smartphone with the vehicle’s infotainment system by providing both Apple CarPlay and Android Auto. These systems enable users to connect their devices to activate music, telephone or navigation functions. The IONIQ is also one of the first vehicles to offer inductive charging for smartphones.

8

COMFORT

Driving electric has never been easier Electrified or electric vehicles can be a cornerstone in your company’s sustainability strategy. Especially if your drivers know how to make optimum use of the technologies to save energy – and get more range.

With alternative powertrains being more and more integrated into our everyday lives, drivers of such vehicles also face new requirements. Battery-assisted vehicles have systems in place that recuperate energy that is otherwise wasted. In the case of hybrids, the combustion engine operates according to a different, i.e. efficiency maximising principle.

Whereas in the past drivers of alternative powertrain vehicles had to get extensive training to know how to optimise the efficiency of their cars, modern technologies such as implemented in the Hyundai IONIQ minimise this “driver re-education” and make sustainable mobility accessible to everyone.

To get the most out of alternative powertrain technologies and create awareness about how to reduce one’s carbon footprint, it is still advisable to inform and coach your drivers. Irrespective of the powertrain and assisting technologies there are some general rules to abide by to make hybrid and electric motoring more efficient. As a matter of fact, efficiency does not exclude driving pleasure. On the contrary.

(P)HEV: MAXIMISING ELECTRIC DRIVE Combustion engines in hybrid powertrains have a different setting to boost fuel efficiency and cut back on emissions. Getting the most out of the engine means encouraging drivers to behave in certain ways. A good starting point is to show drivers the hybrid system with its in-car information display and explain what it means. This will help drivers understand how much energy is being used and why.

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Simple control options in the car will make it even easier for drivers to understand how to get the best out of the hybrid system. The IONIQ Hybrid’s interior design, for instance, follows the layout of conventional cars. Instead of being designed futuristically, the instrument panel is very intuitive to operate, even for inexperienced drivers.

Keeping the car in electric mode as much as possible is also crucial. You can achieve that by pressing consistently and lightly on the accelerator pedal. When the IONIQ Hybrid and Plug-in switch to hybrid mode, for instance when more power is needed or the battery runs low, they can count on the new 1.6-litre GDi four-cylinder petrol unit with a class-leading thermal efficiency of 40%.

This direct injection state-of-the-art engine has been tailored to the hybrid application and is combined with the directly responding, smooth shifting sixspeed double clutch transmission (6DCT) – differentiating IONIQ from its competitors with a more dynamic driving experience.

As soon as the GDi’s assistance is no longer required, it unnoticeably switches off, returning to the electric mode as soon as possible. In ECO mode, the IONIQ’s 6DCT optimises the gear selection for fuel economy, shifting up earlier to higher gears to achieve class-leading fuel economy.

Hybrids with a continuously variable transmission, a solution used by most other manufacturers, makes for a simpler construction, but has a few disadvantages.

As there is just one “gear’, the combustion engine revs at high speeds on motorways,

9

COMFORT

resulting in more noise and a higher fuel consumption. Moreover, during acceleration, these hybrids suffer from the so-called elastic band effect: the combustion engine revs high, but there is no real and instant sensation of power.

EV AND PHEV: ANTICIPATING IS KEY To extend the range of an electric vehicle, the driver needs to anticipate – in more than one way. Pre-climatising the interior while the car is plugged in, for instance – something that can easily be programmed with the IONIQ’s infotainment system - saves the battery’s charge for more electric kilometres. Also, route planning in advance is the basis of carefree electric driving. The IONIQ’s advanced infotainment system supports drivers planning for the next charging point.

There are a few general things you can do yourself to give the battery a helping hand, like periodically fully charging or not

relying on fast DC charging at all times.

Modern electric cars like the Hyundai IONIQ reduce these efforts and have a battery management system to preserve the battery’s performance during the vehicle’s lifecycle so that even regular fast-charging does not harm the battery.

Also, you should bear in mind that in the near future, it might be possible to use your car’s battery as an energy storage buffer during peak electricity production by the electricity company. This way you can optimise battery use and at the same time resell the charged electricity back to the provider if you don’t need it.

This is not the only way in which EVs can help drivers to go the extra mile: the IONIQ Electric’s regenerative braking system for instance allows you to harvest kinetic energy at the wheels that is otherwise lost. This energy is converted back into electricity and stored in the battery. The system’s electromagnetic braking force usually suffices to decelerate down to the required speed. With a little thinking ahead, it enhances driver engagement and thereby the fun element of being behind the wheel of a low-tozero emission vehicle.

The IONIQ Electric’s regenerative braking force can be adjusted in four stages by means of paddles at the steering wheel. In the city, for instance, or in stop-and-go traffic, the highest level of braking force is desirable. On the motorway, however, drivers want their car to ‘freewheel’ as much as possible – something that is made possible by this state-of-the-art technology.

It is preferable to inform and coach your drivers to create optimised efficiencies when using alternative powertrain technologies.

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FUTURE

Sharing a greener future Car sharing schemes with zero emission vehicles are helping cities combat the twin evils of congestion and pollution. Hyundai sets pace in the European landscape.

The combination of car clubs and zero emission engines represents a marriage made in heaven for city authorities. While car clubs help to shrink the number of the vehicles on city roads, thereby reducing congestion and freeing up parking spaces, alternativelypowered vehicles mean clean air.

Gridlock and pollution are urgent concerns for authorities. A report by the Centre for Economics and Business Research and INRIX forecasts that by 2030 the annual economic impact of congestion will cost France $30 billion; the UK $33 billion; and Germany $44 billion. At a city level, the yearly cost of congestion by 2030 will be $18.7 billion to Paris, $14.5 billion to London and $4.2 billion to Stuttgart.

Individual businesses across Europe can back up these figures with the unavoidable inefficiencies they face every time engineers, salesmen and deliveries are delayed by traffic jams.

GREEN CAR CLUBS AND CAR SHARING With transport identified as a major source of pollution in urban areas, vehicles with zero tailpipe emissions represent the Holy Grail. It is no wonder green car clubs are high on political agendas. Experts suggest that while the average car spends 95% of its day parked, a car share vehicle can do the job of four cars, thereby removing three cars from urban area roads.

The Hyundai ix35 Fuel Cell can travel up to 600 kilometres on a single tank.

Given the short, cross-town journeys typically driven by car share vehicles, and the opportunity to provide recharging facilities in their parking bays, electric cars are increasingly considered for clubs and car sharing services. Hydrogen fuel cells,

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too, offer an alternative source of completely clean power, with large range and short refuelling times. Like the Hyundai ix35 Fuel Cell, for example.

Earlier this summer, the car sharing service BeeZero, a subsidiary of Linde AG, took delivery of over 50 Hyundai ix35 Fuel Cell vehicles. The innovative car sharing concept is run on a zone-based model and available in Munich’s city centre as well as four surrounding neighbourhoods. The cars can all be easily booked online or via a smartphone app.

“The new BeeZero car sharing offer is pioneering sustainable mobility,” said Thomas Schmid, Chief Operating Officer at Hyundai Motor Europe. “Featuring the Hyundai ix35 Fuel Cell, BeeZero is not only the first car sharing service using hydrogen-powered zero-emission cars, but will also offer comfortable and reliable transportation for the public’s everyday needs.”

The Hyundai ix35 Fuel Cell can travel up to 600 kilometres on a single tank, making it ideal also for longer journeys outside the city. Hydrogen fuel for BeeZero is sourced entirely from sustainable production processes.

“We expect to gain valuable information from day-to-day fleet operations which we will use to further develop our hydrogen technologies and to help expand the hydrogen infrastructure,” said Dr Christian Bruch, member of the Executive Board of Linde AG. “BeeZero will bring the benefits of fuel cell technology to a wider group of potential users.”

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CASE STUDY

My fleet is Electric There is a great deal of talk about alternative powered vehicles, and quite a lot of good intentions. We take a look at some concrete examples of companies which have introduced such vehicles into their fleets, from a practical point of view.

Like any new concept, the switch from ‘traditional’ to various forms of alternative powertrains, does not take place overnight. Insurance giant Allianz has gone down the route of alternative powertrains, with numbers which are impressive in themselves, even if in percentage (of the fleet) terms, the take-up is still modest. Some 600 out of 18,000 cars are now electric or hybrid.

The company’s reasoning for this move is that it wishes both to contribute to environmental protection, and realize cost savings. In terms of take-up, Allianz finds that while everybody who is eligible for a company car can choose an alternative vehicle, it is people between 30-45 and who have a high interest in new technologies, who are choosing these vehicles.

They are more used in the ‘motivation’ fleet but also for sales force cars if the daily driving distance allows the use of electric / hybrid vehicles.

IMPLEMENTATION Does this mean that implementation of alternatively powered cars into fleets is easy? The big challenge, Allianz confirms, is on the one hand driver behaviour and other hand the external and internal infrastructure. The capacity of the batteries is also one of the biggest challenges.

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And in practical terms, for EVs, drivers do like to drive with alternative power, but they also worry about charging.

Looking forward, Allianz says it will motivate the people using alternatives by giving them special benefits. Before you go to implementation, Allianz says, make sure you have the right charging infrastructure, get Top Management approval and promote your decision internally.

MOBILITY Also health and nutrition company Royal DSM, based in the Netherlands, has introduced alternatively powered vehicles into its fleet. These are electric and hybrid vehicles, and are used as benefit cars by eligible employees. There are also two electric cars in use as pool cars, which are available to all employees. The drivers of the ‘company car’ vehicles very much appreciate them, and the employees like being able to use the electric pool cars.

Going forward, Royal DSM is planning to introduce a corporate car-sharing scheme, a benefit scheme and a mobility budget scheme. This project will include, for example, the use of trains, but then if a car is needed, an electric model can be used. So once again, the general trend seems to be that the gradual introduction of alternative powertrains is the most obvious route, and linking this to a wider concept of mobility in general, and ‘sustainable mobility’ in particular.

ANALYSE NEEDS At a recent ‘Smart Mobility’ seminar in the Belgian region of Wallonia, fleets which

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CASE STUDY

Sustainibility, cost-efficiency and employee motivation. Three reasons for including alternative powertrain vehicles in your fleet.

have adopted alternative means of mobility made it very clear that an analysis of which type of alternative powertrain will work best, is essential.

home-visiting fleet just a couple of years ago. So the large scale implementation of an alternatively powered fleet is perfectly possible, it probably just takes the will.

In the case of bank card clearance company Swift, a total of 21 electric cars were brought into the fleet in 2015, with certain conditions fulfilled. Firstly, those opting for these cars had to live within a radius of 50-75 km from the office. Nevertheless, Swift installed 21 charging points at the site, and a charging point at each of the employees’ homes – which needed to be houses, not apartments.

KEY TAKEAWAYS What can be concluded by all this?

Probably that careful analysis of needs, internal acceptance and motivated drivers are among crucial points in order to choose the right alternative powertrain for your fleet. None of the companies we have cited just ‘jumped in’ without careful reflection, but once they had made the move, it appears they are not going back.

They also helped convince would-be users by creating a system whereby the electric power for recharging is either directly invoiced to Swift, or reimbursed to the employee. This careful preparatory work was essential in creating the right conditions, and increasing numbers of employees are now asking for electric or plug-in hybrid cars. The number of EVs is doubling.

The same goes for Hyundai Motor Group, the world’s number 5 carmaker, when it decided to develop the IONIQ. With the choice between hybrid, electric and plug-in hybrid powertrains, the IONIQ offers the right solution for every type of driver, facilitating the choice to integrate alternative powertrains into your fleet.

Remaining in Belgium, Flemish social services provider ‘Solidariteit voor het Gezin’ introduced over 700 hybrid cars into its

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ENJOY YOUR IONIQ TEST DRIVE If you want to test drive the all-new Hyundai IONIQ, you only need to contact your Hyundai Fleet contact person who will assist you with the reservation of your Hyundai IONIQ test vehicle.

13

EXPERT VIEW

The start of an e-revolution Hyundai Motor Group, the fifth largest carmaker in the world, is leading the way to a more sustainable mobility, starting with the launch of the IONIQ. And there is much more to come, explains Hyundai Motor Europe Senior Vice President & COO Thomas Schmid.

Mr. Schmid, how important is the IONIQ for Hyundai in Europe, and how does it fit into the future vision of Hyundai?

THOMAS SCHMID Our all-new IONIQ is an extremely important milestone for Hyundai in our sustainability strategy.

It is the first one of 28 eco cars which the Hyundai Motor Group (ed. note: including Kia) will launch by 2020. The IONIQ is the first car to offer all three alternative powertrains – hybrid, plug-in hybrid and all-electric – in one body type. Together with our ix35 FCEV – which in 2013 was the first mass-produced fuel cell vehicle in the world – we provide the widest choice in sustainable powertrain technology. And all of this with a very competitive pricing.

What are your ambitions with IONIQ and how will you succeed in realizing them?

Thomas Schmid, Senior Vice President & COO at Hyundai Motor Europe: “The current transition from conventional cars to completely new, fully electric vehicles is like going from Morse code to smartphone.”

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T.S. The IONIQ, together with our fuel cell vehicle, is changing the perception of the Hyundai brand in Europe. We bring high quality and industry-leading technology aiming to democratize e-mobility by making this technology accessible to everyone.

Furthermore, it’s exactly the right time: with many stakeholders in Europe trying to reduce the air pollution, this technology will appeal to more and more people as a real alternative.

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EXPERT VIEW

In what way will IONIQ be positioned as a viable fleet alternative?

T.S. IONIQ offers all three electrified powertrain solutions and gives companies the flexibility to propose the best option to meet the needs of their drivers and the usage of the vehicle. In general, e-mobility reduces the cost of operation, both in terms of servicing and of fuel. We believe the IONIQ is the best value eco car in Europe, thanks to its competitive price, long driving range, high fuel efficiency and its industry leading five year unlimited mileage warranty plus an eight-year or 200,000 km warranty on the battery. Add to that a great design and real driving pleasure, and you have a strong proposition.

It fits fleets perfectly, and is in tune with the increasing tendency to consider new penalties for diesel cars in the European city centers.

Until today the share of alternative powertrains in the corporate fleet sales in Europe is very small.

What makes you think this will change in the future, and what will Hyundai do in terms of additional services to stimulate the acceptance of alternative powertrain cars in fleets?

T.S. According to feedback from media and industry experts, IONIQ will be one of the cars that will change the acceptance of alternative vehicles, including the fleet segment. Competitive pricing, a more than reassuring warranty and excellent results on the residual value of this vehicle will help to drive its success in the fleet business.

Lease companies are still sceptical about the residual value of electric cars, with a direct impact on lease rates for fleets. What are the actions Hyundai will take to make sure residual values are secured?

T.S. I have a different impression. All the lease companies we are in touch with are extremely interested in IONIQ. There are many uncertainties in the long run for

"With our IONIQ and ix35 FCEV, we provide the widest choice in sustainable powertrain technology", says Mr Thomas Schmid.

diesel engines. Regarding IONIQ, we are setting standards for our dealers, including the implementation of a professional remarketing used car system. Therefore we are really convinced that the strong residual values predicted for IONIQ are the right ones. We strongly believe in the quality of our product: that’s why we offer all IONIQ models with our industry-leading five year unlimited mileage warranty and an additional eight-year or 200,000-kilometre warranty on the high-voltage battery. Thus second owners could potentially benefit from the extended warranty period as well.

Alternative powertrain vehicles seem to be an ideal ingredient for smart mobility solutions, for example car sharing, city shuttle services etc.

Is there any news to announce on this matter?

IONIQ is changing the perception of the Hyundai brand in Europe.

T.S. Our understanding is that there will be a shift in individual mobility. It’s not yet clear if it will be car sharing or other alternative structures. We’re living in a very exciting period of transition. It is like going from Morse code to smartphone, now that we are moving away from conventional combustion engines with gearboxes towards completely new, fully electric products with incredible new technologies. And I’m very happy to be living in this exciting era.

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Charge your fleet with e-motion.

Hyundai has developed a car that will change the way we think about hybrids. It’s the all-new IONIQ Hybrid, and it’s been engineered to deliver all the dynamic driving characteristics of a conventional car. It rewards with a driving experience energised by its sporty 6-speed dual-clutch transmission. It impresses with a 1,300 km driving range, and an extended 8-year or 200,000 km warranty for the powerful lithium-ion polymer battery. And it attracts with a sleek, aerodynamic design that won the Red Dot Design Award 2016. With a drag coefficient of just 0.24 and an energy-efficient powertrain, the IONIQ Hybrid is an attractive addition to any fleet.

IONIQ Hybrid. Driven by e-motion.

Fuel consumption in mpg (l/100 km) for IONIQ Hybrid range: Urban 72.7 (3.88) – 83.1 (3.4), Extra Urban 71.9 (3.92) – 78.5 (3.6), Combined 70.6 (4.0) – 83.1 (3.4). CO2 emissions: 92 – 79 g/km.

These official EU test figures are to be used as a guide for comparative purposes and may not reflect all driving results. Hyundai provides a 5-Year Unlimited Mileage Warranty. On the lithium-ion polymer battery, Hyundai provides an 8-year or 200,000 km Battery Warranty, whichever occurs first. For the 5-Year Unlimited Mileage Warranty and Battery Warranty, certain terms and exclusions apply. For detailed information on these terms and exclusions, please refer to your local Hyundai website or consult a Hyundai dealership.