NEXUS COMMUNICaTION - FLEET EUROPE #66 - PERIODIC MaGaZINE - OCTOBER 2013 - DEPOSIT OFFICE LIÈGE X
oCToBer 2013 - # 66
MaNaGEMENT Cross interview:
Cedric Millet (Ecolab) Fer Derwort (Infor)
DOSSIER Fleet Management Trends New developments, new products and services, new insights in cost reduction
MaNaGEMENT
BUSINESS
SCOPE
Report on the first Global Fleet Management Conference
Maserati launches fleet structure in Europe
Insight in Residual Values in Europe
FLEET EUROPE aND ITS PaRTNERS WELCOME YOU TO THE FLEET EUROPE FORUM & aWaRDS 2013 NOVEMBER 21, 2013 IN PRaGUE
VISIT WWW.FLEETEUROPE.COM/EVENTS for more information and all registration details
THE NEW SEAT LEON ST WITH ONLY 85g OF CO EMISSIONS PER KM* 2
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SEAT EASY CONNECT TOUCH SCREEN INCLUDING NAVIGATION SYSTEM
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On November 21, 2013 there is only one thing that you can do: join us at the Fleet Europe Forum in Prague. This year the not to be missed European fleet event will focus on The International Fleet Management Outlook for 2014. The conference will be based on three pillars: in the morning there will be an insight into the interesting but challenging car fleet region that is Eastern Europe; in the afternoon we will listen to the needs and requirements of the car fleet owners; finally we will hear the answers of the car fleet suppliers, and learn about their developments and the way we can all together take our fleet industry to a new level of optimization. Industry executives, international opinion leaders and the most important international fleet customers will gather to listen to each other, and to share expertise and best practices.
EDITORIaL
Prague, the place to be for the fleet community
Last but not least, on November 20, 2013 the IFMI will organize a new Expert Session for fleet managers with an international scope. The theme of this session is: The successful integration of Eastern Europe in your international fleet management.
These are all excellent reasons for you to join us in Prague! Find out more about these events and the registration details on www.fleeteurope.com/events. We are looking forward to welcoming and meeting you in Prague!
Steven Schoefs, Chief Editor Fleet Europe sschoefs@nexuscommunication.be Twitter : @StevenSchoefs
In the evening of November 21, 2013 Fleet Europe will celebrate the achievements of the international fleet community and reward fleet managers and fleet suppliers, on the occasion of the seventh edition of the Fleet Europe awards. In total 7 awards will be given. You can learn more about the nominees and jury members of the Fleet Europe Awards 2013 in this issue of Fleet Europe.
Three excellent reasons to join us in Prague.”
Be part of the Fleet Europe Community! aTTEND aND FOLLOW OUR EVENTS IFMI Expert Session
speakers, discuss with peers and share best practices with the fleet
November 20, 2013 – Prague, Czech Republic
community.
This dedicated training session for international fleet managers
You can find all necessary information and registration details on
will be organized in combination with the Fleet Europe Forum &
www.fleeteurope.com/events. (see also page 60) #FleetEuropeForum
Awards 2013, on November 20 in Prague. This year’s edition will focus on “The Integration of Eastern Europe your international fleet management policy”.
Fleet Europe awards 2013
More information about this expert session can be found on
November 21, 2013 – Prague, Czech Republic
www.fleeteurope.com/ifmi.
The Fleet Europe Awards are recognizing the achievements of the
#IFMI
fleet industry. With prizes in seven Award categories this is the fleet event of the year.
Fleet Europe Forum 2013
Visit www.fleeteurope.com/events for more information and all
November 21, 2013 – Prague, Czech Republic
registration details. (see also pages 38-40)
The Fleet Europe Forum gathers more than 500 European and
#FleetEuropeawards
international fleet decision makers around the theme “2014 Outlook for International Fleet Management”. You will learn from key-note Follow us on Twitter Follow the latest tweets of @FleetEurope2012 and connect to the Fleet Europe team: @StevenSchoefs, @CarolineThonnon and @LaetitiaFdz
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CONTENT
I DOSSIER I
Let’s embrace the change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.09 Trends in fleet management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.10 Automotive innovation at IAA 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.14 eCall and the driverless car . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.20 Telematics meets insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.22 The future of telematics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.28 Fuel cost management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.32
dossier I Fleet Management Trends New developments, new products and services, new insights in cost reduction.
Responsible drivers and fuel reduction . . . . . . . . . . . . . . . . . . . . . P.34
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I MANAGEMENT I
News . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.36 3 questions to Janos Kis (Coca-Cola) . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.36 Rewarding excellence in fleet management . . . . . . . . . . . . . . P.38 Cross interview: C. Millet (Ecolab) & F. Derwort (Infor) . . . . P.42 Inaugural Global Fleet Management Conference . . . . . . . . . . . P.48 Innovative thinking in procurement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.50
I BUSINESS I News . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.52 3 questions to Clive Taylor (Garmin) . . . . . . . . . . . . . . . . . . . . . . . . . P.56 Maserati goes fleet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.56
management I Best Practices Fleet management according to Cedric Millet (Ecolab) and Fer Derwort (Infor).
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I SCOPE I News . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.62 Remarketing in Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.64 EU car taxes in 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.66
management Fleet Europe Awards 2013
38
BUSINESS Maserati goes fleet
COLOPHON
57
Steven Schoefs - Chief Editor - Fleet Europe (sschoefs@nexuscommunication.be)
Contributors: Tim Harrup, Paul Herremans, Jean-François Christiaens, Yves de Partz, Ally Millar
Laetitia Fernandez - Final Editor - Fleet Europe (lfernandez@nexuscommunication.be)
Layout: Un pas plus loin - info@unpasplusloin.com
Frédéric Van Vlodorp - Managing Editor (fvandvlodorp@nexuscommunication.be) Caroline Thonnon - Head of Business Development & Global Fleet Leader (cthonnon@nexuscommunication.be) David Baudeweyns - International Sales & Business Development (dbaudeweyns@nexuscommunication.be)
Special thanks to: Bart Vanham (RBR PwC), Hervé Legenvre (EIPM), Maarten Baljet (BF Forecast)
EDITOR
Thierry Degives, Managing Partner at Nexus Communication SA, Parc Artisanal 11-13, 4671 Barchon (Belgium) T. : +32 4 387 87 94 - Fax : +32 4 387 90 63 - www.nexuscommunication.be
Romina De Gregorio - Internal Sales & Operations (rdegregorio@nexuscommunication.be) Vanessa Digneffe - Internal Sales Support vdigneffe@nexuscommunication.be Kathleen Hubert - Head of Marketing & Smart Mobility Management Leader (khubert@nexuscommunication.be) Jonathan Green - Chief Editor Smart Mobility Management jgreen@nexuscommunication.be
FLEET EUROPE
www.fleeteurope.com - www.fleeteurope.com/shop
Reproduction rights (texts, advertisements, pictures) reserved for all countries. Received documents will not be returned. By submitting them, the author implicitly authorizes their publication.
Pierre-Yves Simon - IT & Web Manager (pysimon@nexuscommunication.be)
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With distance function, park assistance function and role model function. The new E-Class. Efficiency in top form.
A Daimler Brand
The new benchmark for efficiency. With a combined consumption of just 4.1 l/100 km, the E 300 BlueTEC HYBRID has CO₂ emissions of only 107 g/km. That makes it one of the most economical models in its class and the ideal vehicle for any fleet. www.mercedes-benz.com/fleet
Fuel consumption urban/extra-urban/combined: 14.4–4.1/8.2–3.8/10.5–4.1 l/100 km; combined CO₂ emissions: 246–107 g/km. Figures do not relate to the specific emissions or fuel consumption of any individual vehicle, do not form part of any offer and are intended solely to aid comparison between Provider: Daimler AG, Mercedesstraße 137, 70327 Stuttgart
different types of vehicle. The vehicle shown features optional equipment.
NEW
OFFROAD. BUT NOT OFFLINE. Experience a unique level of connectivity with IntelliLink. And our most efficient engines ever.
opel.com Fuel consumption combined 8.5–5.6 l/100 km; CO2 emissions combined 199–147 g/km (according to R (EC) No. 715/2007).
dossier
i Fleet Management Trends
Let’s embrace the change
Driver behavior and connectivity are set to become new drivers of efficient fleet management.
T
he fleet management industry might not be the first which comes to mind when thinking of innovation, but it is most certainly an early adopter of new developments as fleet managers and fleet suppliers are always looking to further optimize their business. Developments in management, innovations in automotive and mobility, openness to legislative and fiscal changes are drivers of today’s and tomorrow’s fleet management best practices. In this Fleet Europe dossier we look at new fleet management trends from different angles, and with different
DOSSIER from p. 9 to p. 35
outcomes. Driver behaviour, connectivity, insurance, taxation, fuel management, safety, and sustainability are all important aspects of your fleet management policy. If not today, then certainly tomorrow. ■ Steven Schoefs
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dossier I Fleet Management TrendsCV Management
This is hot, this is it Fleet Europe has run a small inquiry amongst corporate fleet managers, asking them for a shortlist of their top three most relevant and challenging topics in corporate fleet management. Out of a sample of fifteen respondents, these are the most frequently quoted issues: need for better fleet data and TCO transparency, on-going pressure for fleet cost reduction, increasing demand for mobility solutions beyond the car. In this article we will comment the top 12 listed issues in order of number of occurrences.
On-going cost reduction programs are needed to compensate for the upward trends in fleet costs.
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Dedicated driver educations, training, follow up, and incentivizing will help drivers reduce fuel consumption.
1. Better fleet data and TCO transparency Reliable fleet data and cost breakdown visibility are basic requirements for professional fleet management. Having this on the top of the issue list clearly underpins how important reliable fleet data are in order to make better fleet policy decisions. The availability of accurate consolidated fleet data in an international multi vendor environment does still represent a major challenge. Reporting services offered by specialized third party providers offering advanced data collection and analysis tools and solutions are often declined because of the perceived pricing for the service fee. TCO definitions are becoming more complex because of the increasing number of relevant but somewhat hidden costs that need to be integrated in the TCO equation, like out of contract surcharges, end of contract charges, taxations of all kinds‌ 2. Fleet cost reduction The pressure on fleet cost reduction sounds like a never ending story. The inconvenient truth is that fleet costs do show an upward trend over time, mainly driven by fuel and capital depreciation. On-going cost reduction programs are simply needed in order to compensate for the upward trends in fleet costs. 3. Extended mobility solutions In the good old days of fleet management the company car
used to be the one and only mobility solution offered by corporations, and it was highly appreciated by company car drivers who could use it for private purposes as well. Today, frequent traffic congestion is a fact of life in many urban areas. Home working / teleworking is becoming increasingly popular. People prefer to get a choice between different options in order to go from A to B. In an attempt to attract, reward and retain valuable staff, leading corporations are proactively offering multimodal mobility solutions or mobility budgets as part of the remuneration package. 4. Fuel cost reduction The amount of company money spent on fuel is high, volatile and very visible. Despite some slight swings the long term trend is definitely going up. It is highly ranked amongst fleet cost savings initiatives. On the hard side fuel cost is tackled by (early) terminating cars on the road and replacing them by new, “greener� models with reduced CO2 and fuel consumption numbers. Actual results may be disappointing especially bearing in mind that only a very limited number of drivers on the road will ever come close to the listed theoretical fuel consumption figures. On the soft side fuel cost is tackled by rolling out driver education, training, follow-up and incentivizing programs in order to help drivers reduce fuel consumption.
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dossier I Fleet Management Trends
5. Driver education and training There is a fast growing common understanding that company car drivers’ actual behavior behind the steering wheel does have a direct and relevant impact on over 30% of the TCO, mainly fuel. Dedicated driver educations, training, follow up, and incentivizing will help drivers reduce fuel consumption. Responsible drivers will generate immediate impact on all of the fleet on the road without any investment in renewal. Recent studies have unveiled that 70% of fleet drivers believe they could reduce their fuel consumption. 5% - 10% direct driver impact on fuel consumption is frequently quoted as a feasible reduction which is underpinned by actual data from successful programs. Are web based training programs the right way to go? How about international programs available in many countries? 6. Definition of “Green Car “ Almost each and every car policy is currently specifying CO2 emission caps for fleet cars. Normalized fuel consumption and CO2 emissions as rated by car manufacturers are gradually moving down model year on model year. Car policy makers are struggling with setting reference figures for “green” cars in the future. What are challenging but realistic CO2 cap numbers for the years to come? Are there any other emission indicators that need to be taken into consideration beyond CO2 as well? 7. Reducing car brands and models In order to reduce complexity of fleet management and generate volume leverage with car manufacturers there is a strong trend in reducing the driver’s choices by setting-up predefined selector lists, showing only a limited number of preferred company car brands and models. Maintaining such restricted selector lists requires a very strong in-house demand man-
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independent third party fleet management service providers or leasing companies does represent a highly strategic choice.
When looking at extended mobility solutions, home working/ teleworking is becoming increasingly popular.
agement and moving away from the “car as a toy” attitude. In recent years several leading international companies have managed to introduce very restricted selector lists at country level. Rumor has it that this approach is generating unprecedented volume discounts with car manufacturers. Standardizing selector lists across borders would be the logical next step. This is becoming even more complex due to different model offerings and perceived image of the same basic car model in different countries. 8. Alternative powertrains EV’s with or without range extender and hybrids with or without plug-in capability together with alternative fuels for combustion engines like CNG are slowly but steadily becoming available in commercial quantities. The transition from showcase to real world solution has only started, and defining which alternative powertrain vehicle is suited for which purpose in the fleet is a real challenge. 9. Outsourcing of fleet operations Outsourcing of day-to-day fleet operations is frequently on the table as a potential process saving for corporations who are still running in-house fleet operations. The choice between
10. Integrating complex taxation in TCO equation Company car taxation is becoming increasingly complicated as it comes in many different flavors: VAT, road taxes, registration taxes, corporate taxes, personal income taxes… Not only as straight taxes but even as non-deductible cost elements for specific tax purposes. And of course every country or region have their own tax rules in united Europe. Leaving tax elements out of the TCO equation because of complexity is no longer a valid option. A few service providers currently offer advanced software tools that are capable of integrating tax components in TCO calculations and show the cost impact of taxes which is often rather significant. 11. Shared company cars Especially in urban areas, there is a new trend in shifting from outright ownership of a car towards pay-peruse. This trend will influence corporate fleets, and it will create the need for efficient solutions for corporate car sharing. 12. International volume leverage By adding together fleet car volumes across countries, corporate fleets can benefit from volume leverage with car manufacturers and fleet service suppliers. International volume agreements still require a lot of attention and implementation efforts as they often tend to be paper tigers – rather than really useful tools which facilitate smooth decentralized operations at an international scale. ■ Paul Herremans International Corporate Fleet Expert
peugeot.com
NEW PEUGEOT 3O8
FOCUSED ON YOUR SENSATIONS
Combined consumption (l/100 km): from 3,7 to 5,8*. CO2 emissions (g/km): from 95 to 134*. *With 17” or 18” tyres depending on the engine specifications.
The new Peugeot 308 is a compact hatchback with a pure and a charismatic design. It offers a new driving experience, intuitive and intense, with its Peugeot i-Cockpit®: a compact steering wheel, head-up instruments, a large touchscreen and the high centre console.
NEW PEUGEOT 308
dossier i Fleet Management Trends
Riding the wave of automotive innovation at IAA 2013 Frankfurt is no exception to the rule: following any automotive event, the innovations unveiled quickly start appearing in showrooms. Here is a brief overview of the highlights awaiting us tomorrow.
T
he IAA Motor Show 2013 in Frankfurt was a vintage year, bringing together an impressive number of major innovations in its huge exhibition halls. With the imminent arrival of the European Euro 6 anti-pollution standards on September 1st 2014 and, even more significantly, the cap on average emissions of 95g/km expected in 2020, the spotlight was mainly on “clean” engine types. In fact, plug-in hybridisation is currently emerging as the most popular solution. A sign of the times is that even Mercedes’ flagship model, the new S-class, managed to lower its CO2 emissions below the 70gm/km bar for Frankfurt. Sports cars are in on this as well: Porsche has unveiled its 918 Spider, which offers 880 hp of cumulative capacity for less than 3 L/100 km of official consumption; and BMW has launched the i8 with 362 hp of cumulative capacity for less than 2.5 L/100 km. Audi is following the same trend with its Sport Quattro model, which officially offers 700 hp for just 2.5 L/100 km. These models are symbolic of a trend that will soon trickle down to the more “restrained” and, above all, easily more affordable models. 1
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Besides the generation of rechargeable hybrid engine types, the “connected” car was the other major trend to emerge at Frankfurt. This is a practical development for those wanting to transform their company car into a mobile office, as the internet and every resulting practical application are increasingly being brought on board. At the same time, to prevent distracted drivers from being involved in accidents, progressive driving automation is slowly starting to appear. But to witness its definitive unveiling, you’ll just have to wait for the next Frankfurt show in two years’ time. 1. Volkswagen Golf and up! e-Drive Volkswagen embraces the electric adventure with the launch of e-Drive versions of both the mythic Golf and its city car VW up! in Frankfurt. The smaller one is equipped with a 60 kW (82 PS) and 210 Nm engine. This translates into a 0 to 100 km/h sprint of 12.4 seconds and a top speed of 130 km/h. Fitted with an 18.7 kWh battery, the Volkswagen e-Up! is good for 160 km on a single charge. The company says that the e-Golf, on the other hand, will have a longer range of 190 km thanks to a 24.2 kWh battery. Its 85 kW (115 PS) and 270 Nm engine is slightly more powerful too, and enables the vehicle to reach 100 km/h from a standing start in 10.4 seconds and go on to an electronically-limited top speed of 140 km/h.
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2. Mazda 3 Mazda applies its new dynamic body style to the Mazda 3 compact car. On top of its seductive lines, this new generation benefits from up-to-date technologies with a head-up display and a touch-screen enabling infotainment functions. Mechanically speaking, Mazda proposes its excellent SKYACTIV Technology engines, the only diesel option being the 2.2 L, 150 PS unit. Despite its size and its high performance the engine consumes just 3.9 L/100 km on the combined cycle with CO2 emissions of 104 g/km. 3. Mercedes GLa Following the A-Class sedan, the CLA-Class coupe, and the B-Class MPV, Mercedes has extended its compact range to the GLA. The first Mercedes-Benz in the fast-growing compact SUV segment is longer (4.41 m) and wider (1.80 m) than the A-Class from which it derives, and benefits from a more generous luggage compartment (421 L – 836 L). Highly maneuverable around town and on country roads The GLA 250 (211 hp) petrol engine, together with the GLA 200 and GLA 220 (136 hp and 170 hp respectively) diesel engines can be coupled with the new-generation permanent all-wheel drive system 4MATIC. 4. Volkswagen Golf Sportsvan Concept Officially, the new Golf Sportsvan premiered in Frankfurt is just a concept, but with its body lines, the vehicle is undoubtedly a successor to the Golf Plus within the model series. With a longer rear overhang, the cargo capacity of the Sportsvan is increased to nearly 500 L (498 L precisely). When the rear bench seat is moved to its front-most position, up to 585 liters of cargo fit into the luggage compartment. On top of this Volkswagen has announced a Euro-6 compliant 1.6 TDI Bluemotion engine (100 PS) with an estimated emissions level of 95 g of CO2/km. 5. Range Rover and Range Rover Sport Land Rover announces upgraded Range Rover and Range Rover Sport with hybrid powertrains. The manufacturer equips both models with 3.0 L V6 turbo-diesel engines with a 35 kW and 170 Nm electric motor-generator in place of the torque converter. The driver thus enjoys a total output of 340 PS and 700 Nm, and the electric-only mode allows for short distance drives (less than 2 km). But what makes the Range Rover and Ranger Rover Sport hybrids stand out is their low fuel consumption: as little as 6.5 L/100 km, with emissions of less than 170 g/km of CO2. 6. Kia Soul For those who like compact MPVs, Kia is unveiling the second generation Kia Soul. In line with its predecessor’s hipster style, the new model stands out in the MPV class where style tends to be more conservative. The all new Kia Soul will be on the market in spring 2014.
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dossier I Fleet Management Trends 7. Honda Civic Tourer Honda is unveiling in Frankfurt a wagon version of the Civic, designed only for European markets. The new Civic Tourer will be manufactured in the United Kingdom and European sales are scheduled to begin early next year. The hatchback (which is 24 cm longer than the sedan) features long body lines and smooth accents. It is worth mentioning that the Civic Tourer offers a boot volume of 624 L, which can be extended to 1,700 L when rear seats are down - almost a record!
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8. BMW i3 Unveiled a few months before the start of the motor show, the BMW i3 signals the start of a new era for the manufacturer with a new range of clean vehicles that will feature hybrid or electric powertrains, and which are denominated with an ‘I’. In keeping with its status of a compact car the BMW i3 is just under 4-meters long. The all-electric model is equipped with a 125 kW engine using power supplied by a lithium-ion battery. According to BMW the i3 offers a range of 130-160 km in “everyday driving”. However, switching to an ECO driving mode should increase the electric range by about 30 % to nearly 200 km. And if this isn’t enough to convince reluctant clients, BMW will offer an optional range-extending generator: a 650-cubic centimeter two-cylinder petrol engine.
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9. Opel/Vauxhall ADAM 1.0l Sidi Turbo In order to find what is really new at Opel/Vauxhall, it is necessary to look under the hood of the ADAM exhibited in Frankfurt: a brand new 3-cylinder petrol direct-injection turbo engine. The all-aluminum 1.0 L has an output of 225 hp and 166 Nm. In 2014, the urban-oriented ADAM will be the first Opel car to be equipped with this new engine teamed with an all-new six-speed gearbox. Opel/Vauxhall expects the new engine family to deliver impressive fuel economy with CO2 emissions significantly lower than 100 g/km.
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10. Hyundai i10 City car lovers, pay attention: Hyundai is unveiling the second-generation i10 at the IAA. The new i10 is based on a new, slightly longer platform (8 cm longer, 6.5 cm wider), but is 5 cm lower than its predecessor, which gives it a more dynamic body line and increases the boot space to a respectable 252 L.
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11. Peugeot 308 Sitting on the new PSA modular generation platform, the new Peugeot 308 is 140 kg lighter than the current model. With its reduced weight, the 308 significantly reduces its fuel consumption and achieves emission levels as low as 85 g/km CO2. First comments from behind the wheel are the driving benefits from the weight reduction – to be verified.
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12. Skoda Rapid Spaceback Mid-way between a hatchback and a sedan stands the new Skoda Rapid Spaceback. Shorter (by 18 cm) than the Skoda Rapid, the Spaceback sacrifices some boot volume in favour of style – down from 550 L to 415 L. However the dynamic bodyline of the new model should be a convincing argument in European markets. Mechanically speaking Volkswagen’s modern engines are expected to be available, either diesel (1.6 TDI) or petrol (1.2 L or 1.4 TSI). 13. SEAT Leon ST There’s no way SEAT will leave part of its clientele to the competition: with its unique hatchback version, the new Leon ST extends its length by 30 cm, thereby providing more cargo space: from 380 L to an impressive 587 L. It is also worth noting on the diesel side that the 1.6 TDI evolves from 105 hp to 110 hp whilst lowering its fuel consumption to just 3.3 l/100 km with 86 g/km of CO2. 14. Citroën Grand C4 Picasso In line with the launch of its new C4 Picasso MPV, Citroën is introducing the longer Grand C4 Picasso. Having grown
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from 4.43 m to 4.59 m, the French MPV will also be available with seven-seats (i.e. two more folding seats). The new Grand C4 Picasso model will also be also available with the Euro 6 compliant BlueHDi engine fitted with Citroën’s Selective Catalytic Reduction (SCR) system. 15. Opel/Vauxhall Insignia Opel/Vauxhall has made a major move in the D-segment with the new Insignia. The Insignia continues to be available as a sedan or brake, and there is also a more robust Country Tourer model. Inside, Opel/Vauxhall has added a touchpad infotainment system, including the integration into the car of many smartphone functions. The central console has been simplified to make operation of the principal functions more intuitive and less distracting – thus safer. Of interest to cost and environmental-conscious fleet managers: the 140 bhp turbo-diesel which consumes just 3.7 litres per 100 km (75 mpg UK) and emits 99 grams of CO2 per km. ■ Jean-François Christiaens
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GOOD COMPANY. THE ALL-ELECTRIC BMW i3.
BMW i
Sheer Driving Pleasure
At BMW i, we know the corporate world is all about efficiency, so we’ll keep this short and simple. Why should fleet managers consider the all-new, all-electric BMW i3? First, with its highly dynamic and efficient BMW eDrive technology, it’s a perfect fit for innovationminded companies. Second, with its intelligent handling of resources throughout the value chain, it makes a strong sustainability statement. Third, with its connectivity features, it’s a functional workplace when required. Fourth, it can bring down the cost of ownership. And finally, as a genuine BMW, it’s going to put a smile on the faces of all of your colleagues. And on yours. More: bmw-i.com/i3 BMW i. BORN ELECTRIC.
BMW i3
bmw-i.com
0 g CO2 / km* 125 kW (170 hp)
* Zero-carbon operation, encompassing everything from power generation to use on the road, requires energy sourced entirely from renewable resources.
dossier I Fleet Management Trends
eCall announced for 2015, the driverless car for 2020 This summer, the European Commission announced that eCall will be mandatory on new personal vehicles (PV) and light commercial vehicles (LCV) as from October 2015. In Frankfurt, the Car Show has been anticipating the gradual introduction of the driverless car. a major difficulty that remains unresolved to this day: this technology derives from three unconnected spheres - motor manufacturers, telecom operators and content providers – none of which are very inclined to sit around the same table to share their knowledge and coordinate their activities. The biggest data communications operator in the world, General Motors, did indeed try to control this market by investing a billion dollars at the end of the 1990s in the “On Star” program, but sales predictions proved to be over-optimistic: far from the 100 million subscribers envisaged in 2010, only 3 million subscribers had signed up in 2005.
In August, a Mercedes S500 «Intelligent Drive» drove 100 kilometers in the Baden-Württemberg region without a driver.
A
t the end of this year, one new vehicle in seven should be equipped with a road-safety data communication system (online music, access to the social networks, etc.). According to ABI Research, which specializes in research into “intelligent” vehicles, this development is the result of pressure from governments and drivers searching for services to assist driving. An Eldorado for manufacturers, telecom operators, equipment providers, IT companies and navigation specialists, data communications have in the past been hailed as the next best thing that, more often than not, has failed to materialize. Does anyone still remember that Fiat was the precursor of an eCall that never actually worked, or that Toyota announced back in the last century, a car capable of being driven without a driver after insertion into an electronic lane?
In the 1990s, the first practical tests designed to come up with the interactive and communicating car brought to light
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eCall mandatory in 27 European countries Today, data communications are really taking off. The first concrete example is programmed for October 2015, the date set by the European authorities to make eCall mandatory on all new LCVs (light commercial vehicles) and PVs (personal vehicles) in 27 countries. If there is an accident, the driver can trigger a 112 call by pressing a button, in order to warn the local emergency services who will immediately be able to identify the time of the accident, the details of the vehicle(s) involved and where they are located on the map. In the event of a serious accident, the sensors will automatically activate the emergency call. The European Commission believes that this system should reduce the call-out time by 50% in rural areas “and save 2,500 lives per year”. In practice, implementation will not be easy: all the vehicles will have to be equipped with a SIM card that will be added to those already existing on the various networks; priority rules will have to be established between the various calls depending on the seriousness of the accident and the “Big Brother” effect - in the form of surveillance of drivers’ movements or telephone tapping for example - will have to be prevented. The same system could moreover serve to track down stolen vehicles, as is already the case in Brazil with their “Contran”. In order to coordinate the efforts, the HeERO (Harmonised eCall European Pilot) will be organizing a second conference in November in Bucharest (Romania).
PSAP112
Legend:
(GNSS) POSITIONING
PSAP112 Emergency call centre 112 MSD
minimum set of data Data connection Voice connection
The satellite indicates the precise location of the vehicle .
MSD
TRAFFIC MANAGEMENT
An operator of the 112 emergency number can see the location of the accident on the map as well as the data transmitted by the eCall system and communicates with the passengers.They ensure immediate sending of emergency units and forward information about the accident to the traffic information and management centre.
Information System
VMS
INSTRUCTION TO SEND UNITS
eCall Immediately after the accident, the vehicle unit transmits the following data to PSAP 112: time and location of the accident, direction and number of passengers. The passengers may then communicate with the 112 line operator.
E
MSD
TRAFFIC INFO
RESCUE INTERVENTION
Integrated Emergency System The emergency system sends units to the location of the accident.
How eCall works: eCall automatically dials Europe’s single emergency number 112 in the event of a serious accident and communicates the vehicle’s location to the emergency services.
Toyota’s “Big Data” traffic info Although it will first be unveiled at the Tokyo Motor Show, Toyota are already announcing the launch of a traffic info service called “Big Data”. Based on a maximum of information gathered in real time via data-communication services - location of cars on a particular road, their individual speed, traffic density, roadworks, and accidents - the T-Probe will make it possible to plan itineraries, to regulate the traffic flow or the rhythm of the traffic lights more exactly. Based on the Cloud, it will be intended for the public authorities as well as commercial companies, which will have access to it through a PC, a smart phone or a tablet.
edges that the launch of the R-Link has met with some setbacks.
100 kilometers without a driver An S500 Intelligent Drive was enthroned on the Mercedes Benz stand at Frankfurt: in August it drove 100 kilometers in the Baden-Württemberg region without a driver – although there was a driver on board “just in case” – and it negotiated roundabouts, traffic lights, pedestrian crossings, and tramways. According to Thomas Weber, head of research, “it will be possible to travel in a driverless Mercedes by 2020”.
Yves de Partz
Today, almost all manufacturers are developing data communication services. However they still need to secure their optimal coordination – for example, Mercedes Benz have contacts with three road information content providers – and reliability by giving precedence to integrated formulas rather than connection via smartphones: Renault acknowl-
Between parking assistance, warning signals when veering out of lane, adaptive driving in traffic, and the exchange of information between vehicles, the possibilities are varying ad infinitum towards an ever more assisted vehicle. But what price is the motorist prepared to pay to benefit from these multiple services? As with the latest generations of iPhones, some are making innovations in data communication one of the means of breathing new life into the European automobile market after yet another sluggish year. ■
Share your thoughts with the Fleet Europe community: How do you feel about mandatory road-safety data communication systems implementation in all vehicles: what are the pros, what are the cons?
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dossier I Fleet Management Trends
Telematics : when technology
In order to make the telematics-insurance proposition economically sound, it is imperative that the insurance company is able to provide real-time assistance to the driver to reduce the number and size of claims.
While car drivers like its fairness and value, fleet managers may shudder at the implementation cost of telematics-based insurance – so is it worth it in the long run?
A
LexisNexis poll from August of this year found that over a third of drivers would switch to insurance telematics – so long as it means a discount on what they pay.
Telematics as a proposition is, relatively speaking, just a baby in the deep and complex world of insurance, but providers are gently persuading more and more customers to give it a try. Understandably, saving cash means most are delighted with the switch.
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“For those higher risk groups, such as young drivers who tend to pay the most for car insurance, it’s a great way of paying only for how you drive, rather than how others do,” said Paul Felton, Head of Telematics at Direct Line Car Insurance as the company unveiled its new DrivePlus system. With incentives and discounts in these early stages, telematics insurance – and the ever-improving technological infrastructure supporting it – is breaking through. Global insurance telematics subscriptions in 2013 are noted at 5.5 million but ABI Research reckons that figure will reach 107 million by 2018, that’s a 20-fold rise.
meets insurance The insurance market in telematics is already big business. Market leader Octo Telematics counts almost 1.3 million Usage Based customers in Europe. Vice President Dominique Bonte said in June that telematics is “entering the mainstream” and the data seem to agree: awareness has tripled in the last three years. Back in 2005, when telematics was embryonic, UK insurer Norwich Union found that young drivers between 18 and 23 taking part in a telematic trial had a 20% lower rate of accidents than the average for that age range. Research & Development That was eight years ago – a lifetime in technology – so systems have been bolstered in the years since. Geolocation devices, on-board driving assistant systems, sensors, camera units and smartphones are partnering the process; increasing effectiveness and relevance. Now, virtually every big insurer offers a telematics product, or will do imminently. In fact, the European Commission is so excited about telematics, it has pumped money into a research and development program. It all points at good news for the individual car driver; it’s a no-brainer. But here’s the snag: it’s a different algorithm for an entire fleet when you factor in telematics implementation and management on a bigger scale. Sifting through the relevant telematics technologies (in what is an expensive supply chain) and cherrypicking those that best fit the needs and budget of a company precipitates a larger expense and, most likely, entering a subscription model. The process will cost man-hours in personnel, training, and a helpdesk facility. So, though desirable and far-reaching management and insurance savings will relieve the budget somewhat, is the saving potential of a telematics model extensive enough to justify a global transition to telematics in the commercial sphere; for both insurer and fleet manager?
“There is an issue in terms of the business case with telematics insurance, as the cost benefit of installing telematics systems for insurance companies is not always neutral,” says Iain Levy, Product Development Manager of Mobileye. “In order to make the telematics-insurance proposition economically sound, it is imperative that the insurance company not only receives the critical information on the driver, but is able to provide real-time assistance to the driver to reduce the number and size of claims.” Levy and Mobileye’s latest anti-collision system, the 560, aims to do just that – warning drivers of an impending accident in real-time; up to three seconds before it hits. Trials in Israel have already endorsed the system and ratified its claims. Although the scope of this article is to assess the insurance outlook for telematics, which looks uncertain and rather cost-neutral in these early days moment, the general telematics landscape, and its cost-saving potential as it pops, must be viewed beyond just insurance implications to asses a true value. “Telematics is one of the ways to enter into the worlds of Digital and Big Data which we consider key for the future of our insurance business,” says Nadia Quentin of AXA Insurance. “Strategically, we consider telematics a way to provide new value-added services to our customers, mainly regarding loss prevention and security in general. But opportunities exist on the whole value chain, especially in claims reporting, information, and overall management.” Applying telematics specifically for fleet, AXA Assistance with AXA Matrix has proposed a solution to understand driving behaviors from the point of view of the fleet manager. Their system automatically generates fleet solutions based on reducing accidents and loss, and scaling up best-practice.
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dossier i Fleet Management Trends
No one knows yet how much Telematics will grow, but we have to be ready for it.
AXA isn’t alone in exploring the cost-saving potential of telematics in insurance add-ons. Systems like the new Multi-Pump Tracker from OEM Data Delivery allow fleet managers to check vehicles’ fuel levels remotely, while Volvo’s on-board system allows the fleet manager to create invisible, electronic boundaries around equipment, designating its operating area and thus deterring theft. Although these attractive options will likely have a favorable bearing on insurance, we can see the efficiencies of telematics systems deeper in the budget. Reporting and warning against real-time dangers will precipitate further money-saving – in compensation, lost days, medical bills, and repairs, not to mention the incalculable cost of adverse PR – all of which makes telematics seem a sweeter deal for fleet managers’ insurance budgets. But as it stands, 57% of fleet managers in the US don’t use telematics according to a survey by the Association of Equipment Management Professionals (AEMP). Those that do use telematics do so only sparingly: nearly two-thirds said less than 10% of their off-road fleet uses telematics. We can’t judge such low uptake in the construction world – ‘Telematicising’ a fleet seems a daunting project. It’s hard to justify a huge upfront cost when the value won’t be seen for some time, and savings
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will be spread thinly across so many efficiencies it may not seem worth it. Beyond insurance But technologists are as keen as fleet managers to make it work. Just as personal insurers are enthusing single drivers to try telematics, manufacturers and developers too are incentivizing commercial outfits with free installation options and retro-fitting vehicles with the technology so as to make assimilating telematics an easier proposition for fleet. “Telematics is only one piece of the jigsaw,” AXA’s Nadia Quentin told Fleet Europe. “The key is to know what you want to achieve first and source the kit that will provide what you want. “No one knows yet how much Telematics will grow, but we have to be ready for it.” Insurance is the first-port-of-call when looking for a saving – it’s an obvious controllable in the vehicle world. But the fleet industry must – when considering telematics – look beyond insurance to find the true longevity and value in telematics. It needs a brave fleet manager to swallow hard and investigate the concept in its entirety – although the project is big, its impact could be colossal, way beyond insurance. ■ Ally Millar
a predicted 81% rise in five years – but what is Telematics? Telematics-based insurance works by having a device in your vehicle, whether it’s in-built or via a box or smartphone, send data to your insurer about your driving behavior. Also known as “Black Box” insurance, “Usage-Based” or “Pay How You Drive” insurance, behavior behind the wheel is recorded alongside factual elements such as where you drive, when you drive and how often you drive. The data are gathered and evaluated over a set period of time and eventually generates an insurance quote just for you – as opposed to the one-size-fits all algorithm we’re used to.
Share your thoughts with the Fleet Europe community: Do you agree with Nadia Quentin of aXa Insurance, and do you also consider telematics to be key for the future of insurance business in that it allows entry into the worlds of Digital and Big Data?
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dossier i Advertorial opel
When heart meets mind Opel/Vauxhall has made a major move in the D-segment with the newly revised Insignia. The result is a splendid car that suits all fleets. New Insignia combines an astonishing design with immense driving pleasure but cost-efficient and sustainable engines. The sum of it all is the perfect solution for company drivers and company fleet managers.
O
Exterior styling and the lowest drag coefficient of any hatchback.
f particular interest to cost and environmental-conscious fleet managers will be the turbo-diesel which consumes just 3.7 litres per 100 km (75 mpg UK, 62 mpg USA) and emits 99 grams of CO2 per km. This puts the engine in the A+ energy efficiency class. New direct injection turbo petrol units have also been developed, with power output of 170 and 250 bhp. Inside, Opel/Vauxhall have added a touchpad infotainment system, including the integration into the car of many smartphone functions. New Insignia also features a very large touchscreen. The central console has been simplified to make operation of the principal functions more intuitive and less distracting – thus safer. The addition of the Country Tourer to the Insignia family brings SUV-like flair to a mid-sized vehicle – for those who want to stand out from the crowd.
Class-leading rv’s Initial residual value calculations from over a hundred experts in the field indicate that new Insignia will be class-leading in France, Belgium, the Netherlands and Italy.
The Insignia Country Tourer adds flair to the range.
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A fully integrated infotainment system with an 8” touchscreen. The Insignia has been developed to suit all the requirements of a company fleet from sales office to board room. Under the bonnet the offering ranges from a clean 1.4 litre turbo-petrol unit to a 2.8 litre V6 turbo petrol high performance block. In between the two, and likely to be of great interest to fleet managers and company drivers, is the ultra-green 2.0CDTI. Insignia 2.0 CDTI – a few convincing facts and figures • Insignia 2.0 CDTI Sedan: 88 kW/120 hp or 103 kW/140 hp; CO2 99 g/km • Insignia 2.0 CDTI Sports Tourer: 104 g/km CO2 • Fuel consumption Sedan: 3.7 L/100 km • Fuel consumption Sports Tourer: 3.9 L/100 km • The most fuel efficient diesel car in its class • Drag coefficient under 0.25: the most streamlined hatchback in the world Ultimate For those who want the ultimate car, with all features together in one package, there is the 239 kW/325 hp, 435 Nm torque Insignia OPC (Opel Performance Center). This 4-wheel drive powerhouse gives the refinement, elegance and style of the Insignia, a full size 5-seater with a huge boot. On top of this, breathtaking performance and the snow and ice grip of a state of the art 4-wheel drive system.
Insignia OPC – a few powerful facts and figures • 0 - 100 km/h: 6.0 seconds (Sports Tourer: 6.3 seconds) • Top speed of 270 km/h (electronically limited) • Fuel consumption 10.6 L/100 km • CO2 emissions 249 g/km • Electronically controlled 4x4 • Electronically controlled FlexRide premium chassis
Karl-Thomas Neumann, CEO Opel, speaking at the IAA, Frankfurt “I think the most exciting thing about New Insignia for fleets and fleet managers is that it brings an award winning design and a class leading TCO, with the best in class CO2 emissions for both its diesel and petrol engines. It is a car with no compromise, efficient and good looking in line with our ‘sculptural artistry meets German precision’ claim.” Watch Mr Neumann’s exclusive video interview on www.fleeteurope.com, in the chapter Web TV – IAA 2013 Frankfurt.
Ian Hucker, European Director Fleet & Light Commercial Vehicles
Ian Hucker: “The voiceactivated calling system avoids distracted driving.”
“It has to be remembered that the Insignia was awarded European Car of the Year 2009 just after its launch one year before, so we wanted to strengthen it, take it to the next level, and not radically alter it. The improvements are both exterior and interior. On the outside, it has a wider, lower stance, and on the inside there is in particular the state-of the-art infotainment system inclu-
ding two 8 inch screens and a touch-pad between the front seats. There is voice command, steering wheel controls etc., so the driver can conveniently interact with the system. The voice-activated calling system is really easy to use as it avoids distracted driving, more and more a concern for today’s fleet managers”.
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dossier I Fleet Management Trends
Automotive Solutions to look out for today and tomorrow The European automotive industry is permanently looking for new solutions that enhance the comfort, the driving pleasure, the safety, and the ecological footprint of both drivers and passengers. Here you find an overview of some of the most interesting developments you can expect in your car fleet in the near future.
The Opel city car comes with a touch-screen capable of linking up to a smartphone (via USB or Bluetooth) and reproducing its interface.
Opel Adam’s mirroring The Opel city car, which is proving to be a hit among drivers, comes with a touch-screen capable of linking up to a smartphone (via USB or Bluetooth) and reproducing its interface, so long as it’s an iPhone or an Android. ‘Mirror-
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ing’ avoids having to go for the GPS option. The Adam offers other driver-assistance services: blind spot monitoring or parking assistance where the steering wheel turns by itself. Opel is also developing an aid for cars reversing after being parked at right-angles to the kerb: rear sen-
Nissan’s futuristic «Friend Me» concept with its touch-screen and its long console accommodates a GPS, an infoentertainment system and interconnection between vehicles.
sors signal the approach of a car and its direction in traffic. Valeo’s automatic valet Unveiled for the first time at Frankfurt, Valeo has been demonstrating its Park4U valet of the future fitted with 12 ultrasonic sensors, 4 cameras and a laser that scans any static or moving object. After leaving his vehicle at the car park entrance, the driver activates the “automatic valet” via his smartphone and the car drives unaided, finds a parking space and performs the appropriate manoeuvres. The operation can be followed on the smartphone’s screen, which also makes it possible to recover the car and bring it back to the driver! But we’ll have to wait a few years yet before its market launch... Nissan’s Safety Shield Nissan’s futuristic passenger compartment, “Friend Me” with its touch-screen and its long console accommodates a GPS, an info-entertainment system and intercon-
nection between vehicles, as well as three driver-assistance systems fitted to the X-Trail and Note: blind spot assistance, warning signal when veering out of lane and rear detection of moving objects. Roadworks assistant Volkswagen are working on perfecting their Lane Assist warning signal when veering out of lane through the “Roadworks Assistant” function. The system uses a stereo camera for the images, a mono camera for detecting road markings and four ultrasound sensors on the sides to measure exactly the distance to the other vehicles in the neighboring lane. By putting in parallel the data collected by the cameras and those from the ultrasound sensors, a model is obtained from which the processor establishes a corridor analysis. The “Lane Assist” signal thus determines its own adjustment strategy, aided by the adaptive ACC speed regulator and emergency braking assistance.
Audi A8 corrects its trajectory In addition to parking assistance and the Matrix LED headlights (each headlight contains 25 long-beam diodes organized in groups, which are activated on demand), the new Audi A8 has automatic steering-wheel correction that is enabled when the driver swerves and crosses the white lines. Volkswagen’s Area View This system for scanning the surroundings by Area View camera, first offered on board the Tuareg in 2010, will soon be available in a second generation version boasting better resolution and new 3D views. Area View comprises four cameras fixed to the back, the side mirrors and the radiator grill. With a 190-degree viewing angle per camera, Area View covers the whole periphery of the vehicle and captures images available on the dashboard’s touch-screen. ■ Yves de Partz
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Think you can have too
Think Again. Hyundai understands everyone is unique and that different people need different solutions. That’s why we’re proud to announce the arrival of our newest model, the all new Hyundai i30 3 door. More options for you to choose from, the same quality for you to enjoy. For more information, please proceed to Hyundai.com/eu Fuel consumption in MPG (l/100km) for New Generation i30: Urban 29.7-68.9 (9.5-4.1), Extra Urban 51.4-80.7 (5.5 - 3.5), Combined 40.9 -76.3 (6.9-3.7), CO 2 Emissions 162-97g/km.
much of a good thing?
dossier I Fleet Management Trends
An expert view on how to manage fuel cost Many international fleet managers believe that fuel is a cost that cannot effectively be managed. A recent study by GE Capital showed that, taken as averages across Western Europe, fuel cost represents 26% of a company car fleet’s total cost of ownership. It is high time fleet owners mitigate their Total Cost of Ownership (TCO) and start to manage their fuel cost effectively. Fleet Europe, with the support of GE Capital, provides you with a few guidelines.
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uel price has risen dramatically over the past years – as much as four times quicker than inflation – , increasing by 50% in some cases. Needless to say this increase has had a severe impact on cost, and in particular on the Total Cost of Ownership (TCO) of a fleet. Alex Barbereau, European Accounts & Consultancy Director at GE Capital, confirms this trend: “As a result of the fuel price increase, the fuel component proportion of the TCO has moved up. For instance, when in 2009 the fuel cost accounted for around 20-22% of the TCO, at the end of 2012 it represented as much as 26-27% – and for some even a third – of a fleet’s TCO.” A sizeable cost to say the least.
30% of TCO It is therefore is high time fleet owners start to actively – and effectively – manage their fuel costs: “When a component represents nearly 30% of your cost, you need to learn to manage it – not only to manage fuel as such, but you need to take that component into consideration for your TCO,” explains Luc Dendievel, Director Category Team Fleet EMEA at Johnson & Johnson. On top of fuel price, cars are taxed increasingly, not only at private but also at corporate level. Fleet managers thereby need to look out for all these costs which they have no control over, and which are hard to predict. Mitigating the risk of price increases, particularly on fuel, is essential. And for this, fleet owners need to identify factors which they can influence such as the vehicle and its technology, driver behavior, and fuel cards.
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A recent study by GE Capital showed that, taken as averages across Western Europe, fuel cost represents 26% of a company car fleet’s TCO. CO2 capping… The European Commission has set some clear CO2 targets for 2020, leading OEM’s to make increasing efforts toward the production of greener cars. A recommendation made by Alex Barbereau is therefore that fleet managers make sure they design fleet policies that allow them to select cars with the lowest CO2 capping, all the more so that Europe’s efforts have also lead Member States to shift their company car taxation from power output towards CO2 emission of the assets, bringing tax incentives for company car fleets. What’s more, a shift is occurring it some countries with regard to the benefit in kind taxation, from lease price or distance from home to office, towards CO2 output: the UK, the Netherlands and Belgium are at the forefront of this initiative. “In these countries there is a strong pull from fleet drivers themselves: they are requesting low CO2 vehicles from their fleet managers,” comments Barbereau. Fleet owners therefore need to design car policies that will allow their organization and drivers to select the best and greenest assets on the market, and these policies ought to be flexible enough to allow for a yearly cap reduction.
need to look at is the Intranet or social network the company is using – a powerful tool that is often underrated. By using it to promote positive stories around company car management, and in particular around eco-driving, fleet managers can raise awareness among their drivers and impact their behavior.
“As a result of the fuel price increase, the fuel component proportion of the TCO has increased to as much as 2627% – and for some even a third – of a fleet’s TCO,” explains Alexandre Barbereau, European Accounts & Consultancy Director (GE Capital). At Johnson & Johnson, this is indeed the approach Luc Dendievel has chosen: “Besides reducing costs, we are responsible for the environment that we live in: within our fleet strategy we have implemented a decrease in CO2 which limits the fuel consumption in vehicles in a decreasing manner over the years. I do believe this is the best way you can reduce fuel cost, along with eco-driving training.” … and eco-driving As Luc Dendievel puts it, another essential aspect of fleet cost management consists in looking at driver behavior. For this purpose, eco-driving is key. “You can give the greenest car to your driver,” comments Barbereau, “but if they behave as if they were Formula 1 drivers, those green assets won’t produce the expected fuel consumption reduction.” It is therefore essential that fleet owners source and implement web-based lowcost, high-touch eco-driving programs: it is cheaper than physical trainings, it can touch all company car drivers at once, and the benefits are substantial in terms of fuel consumption reduction. When it comes to changing driver behavior, another tool fleet managers
Fuel cards Finally, since the fuel component is more important those days than it has ever been before, fleet owners need to reduce their TCO by hedging fuel costs. They ought to meet suppliers, more often than not: “If you used to meet your supplier two times a year, meet them six or eight times a year instead – not only to negotiate and leverage your scale, but also to know what they can offer in terms of fuel card technology,” insists Alex Barbereau, because fuel cards have many features that aren’t necessarily exploited by fleet managers and that can help reduce the spent or mitigate the fuel price increase (e.g. through better mileage monitoring). Fuel cards, CO2 capping, and driver behavior are the key elements highlighted by both suppliers and fleet owners when it comes to effectively managing fuel costs at times when fuel prices
“Make sure you sensitize your management to the effects that fuel has both on your fleet TCO and with regard to the environment, ” insists Luc Dendievel, Director Category Team Fleet EMEA (Johnson & Johnson). have kept increasing –and there is no sign of their decrease yet. One last piece of advice on the fleet manager’s side is to “make sure you sensitize your management to the effects that fuel has both on your fleet TCO and with regard to the environment,” concludes Luc Dendievel. “Once senior management is sensitized to these facts, it will be much easier for you to implement the rules through your policy.” ■
With the support of GE Capital
Laetitia Fernandez
GE Capital
As one of the largest suppliers of vehicle leasing and fleet management in the world, GE Capital delivers tailored fleet funding and fleet management solutions. This year marks the 10 year anniversary of Key Solutions, the comprehensive fleet consultancy service offered by GE Capital. For over a decade, Key Solutions’ consultants have been at the heart of solving customers’ toughest fleet challenges. By considering each aspect of a customer’s fleet, the team of experienced Key Solutions’ consultants create solutions tailored to customer needs with the objective of enhancing quality of service, reducing fleet costs and continuing to push and challenge strategic fleet policies. Applying an innovative methodology, together with sophisticated tools and a strategic mind-set, Key Solutions’ consultants provide implementable solutions to save time, money and energy. To see how Key Solutions could save you money, try the online cost savings calculator today and get an instant cost savings illustration based on your current fleet at www.gecapital.eu/keysolutions.
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dossier I Fleet Management Trends
Responsible drivers are key in fuel cost reduction The fuel bill typically accounts for 25% to 30% of the TCO of a corporate car fleet. It is the second biggest individual cost component next to capital depreciation. The amount of company money spent on fuel is swinging somewhat up and down on the waves of the international crude oil prices, but the long -term trend is definitely going up. What are the options for reducing the fuel bill? Terminating cars on the road early, and replacing them by new, “greener” models with reduced CO2 and fuel consumption numbers might sound like the perfect and easy technology-driven solution. From an economical point of view this will only pay off in a limited number of cases, especially bearing in mind that only a very limited number of drivers on the road will ever come close to the listed theoretical fuel consumption figures.
Company car drivers’ actual behaviour behind the steering wheel has a direct and relevant impact on over 30% of the TCO – mainly fuel.
N
ormalized fuel consumption and CO2 emissions as rated by car manufacturers are gradually moving down model year on model year. That’s great news as it brings down all kinds of taxes and contributions calculated on these theoretical reference data. But does it equally bring down the actual fuel bill? To the best of our knowledge it is generally accepted that there is a double digit (15% – 25%) gap between theoretical normative fuel consumption as rated by car manufacturers and actual fuel consumption data as registered at the fuel pump. The EU is working on revised test cycles that should result in fuel consumption figures that are way more representative for real-life fuel consumption data. But why wait for new test cycles and more realistic normative figures?
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There is a fast growing common understanding that company car drivers’ actual behaviour behind the steering wheel does have a direct and relevant impact on over 30% of the TCO – mainly fuel. Implementing driver education and training programs aiming at improving driver behaviour sounds like a sustainable and affordable approach. Dedicated driver education and training, follow-up, motivation and rewarding of responsible drivers will generate immediate impact on all of the fleet on the road, without any investment in renewal of the car fleet. 5% - 10% direct driver impact on fuel consumption is frequently quoted as a feasible reduction, which is underpinned by actual data from successful programs. Recent studies have unveiled that 70% of fleet drivers believe they could reduce their fuel consumption. Unlocking this potential is a massive educational challenge. When looking for opportunities and setting priorities for cost management, there is simply no better way to save on fuel costs than by rolling out a driver education, training, and systematic follow-up program, in order to help drivers reduce fuel consumption. ■ Paul Herremans International Corporate Fleet Expert
dossier I Advertorial Alphabet
AlphaElectric – Implementing Business eMobility A comprehensive new solution promises convenient fleet eMobility integration. We talked to Carsten Kwirandt, Head of eMobility Fleet Business at Alphabet International, about AlphaElectric and the importance of fleet-specific responses. cludes the latest electric vehicles (EV), like the brand new BMW i3. We provide simple and rapid charging points and installation services via our partner network, at work and at home. To top it off, AlphaElectric customers can select from a number of add-on mobility services including, for example, rental cars on demand for longer journeys and EV driver training. How does Alphabet approach e Mobility? Carsten Kwirandt: Alphabet creates innovative and tailor-made Business Mobility solutions that keep companies and their employees on the move and use resources efficiently. With eMobility, we recognised that while the market is ready, companies were still somewhat reluctant. Consequently, we created the first comprehensive eMobility solution in Europe for corporate fleets. We call it AlphaElectric and it delivers hassle-free fleet electrification on a plate. Describe how the AlphaElectric solution works? C.K.: AlphaElectric implements Business eMobility in a few simple steps: consulting and analysis, vehicle selection, charging infrastructure consulting and add-on mobility services. Each customer receives a tailor-made solution. Our broad, multi-make vehicle portfolio in-
What sets AlphaElectric apart from the competition? C.K.: An outstanding aspect of AlphaElectric is the initial Electrification Potential Analysis. We record a company’s current fleet usage and evaluate three parameters: the potential for electrification in the fleet, the economic and environmental impact of electrification and the charging infrastructure required. This analysis helps us develop the right eMobility solution for each company. What about the cost aspect? C.K.: AlphaElectric is a cost-efficient, or even better, a cost-saving solution. To reduce the Total Cost of Mobility, we encourage companies to look at a mixed-engine approach in their fleets. AlphaElectric aims to cut fuel outgoings by using cost-efficient EVs, and to benefit from tax incentives by decreasing carbon emissions.
What sort of companies would benefit from AlphaElectric? C.K.: AlphaElectric is a comprehensive and convenient product offer that guarantees uninterrupted mobility no matter how far the destination. It can therefore benefit many different business models. AlphaElectric will suit companies that require vehicles for service and delivery trips and for regular business travel.
What is the feedback on AlphaElectric so far? C.K.: AlphaElectric is already available in Germany, the Netherlands, France, UK, Italy, Switzerland and Belgium. It will be launched in Poland and Spain before the end of this year. From 2014, AlphaElectric will be available in all key Alphabet markets. Feedback has been very positive so far and that shows us we are on the right track. Companies are proactively seeking business relations with us so that they can discover eMobility and integrate it intelligently into their fleets without undermining their daily Business Mobility. At Alphabet, we believe that modern mobility has to include eMobility, and with AlphaElectric we are already well prepared for this development. ■
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Management I News SGN opts for TomTom UK utilities giant Scotia Gas Networks (SGN), which supplies gas to 5.8 million customers and includes subsidiaries Southern Gas Networks and Scotland Gas Networks, has announced that it is using TomTom fleet management to ensure it hits strict industry service level agreements (SLAs). All 1,506 of the company’s vehicles and 100 contractor vehicles are monitored using the TomTom system, guaranteeing the most appropriate engineer is sent to each job and allowing the company’s Operations Control Centre (OCC) to monitor progress remotely.
Sealed Air appoints Vertivia Sealed Air, a global leader in food safety and security, facility hygiene and product protection, has appointed mileage capture specialist Vertivia to provide mileage management for its UK company car fleet covering a total of 430 cars. Vertivia was able to back-load three month’s supply of drivers’ mileage Lynette Brown, European claims and get the process HR Director, UK and fully up to date in a very Ireland for Sealed Air, short space of time, so and Paul Chater, Vertivia that full year reporting of Sales Director, seal new the Sealed Air fleet’s total contract. mileage was possible.
CMG opts for Fleet Alliance Care Management Group (CMG) has awarded a fleet management outsource contract for its fleet of 140 vehicles to fleet management and leasing specialist, Fleet Alliance. CMG, which operates 116 care centres throughout the UK, provides specialist Fleet Alliance managing support to children and director, Martin Brown adults with a number of stated: “We will work disabilities and handicaps. closely with CMG to Fleet Alliance managing manage the fleet in as director, Martin Brown cost effective and efficient commented: “We are demanner as possible”. lighted to welcome CMG to our corporate client portfolio. We will work closely with them to manage the fleet in as cost effective and efficient manner as possible”.
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3 Questions to…
Janos Kis, Coca-Cola Enterprises Janos Kis has recently been appointed European Fleet Category Manager at Coca-Cola Enterprises, covering countries in the Western European region. But the company is not all knew to him. A few years ago Mr Kis was Fleet Manager for another Coca-Cola division – CocaCola Hellenic – covering the Eastern European region. We asked him a few questions on his new function. 1. What are your responsibilities and key-objectives in terms of fleet management at Coca-Cola Enterprises? “I’m looking after fleet procurement category across all CCE territories. This means defining and executing the sourcing strategy for fleet cars, light commercial vehicles, fuel, material handling equipment, etc. - everything with wheels and even beyond. The objectives are clearly to get consistency, to leverage our purchase power, and to support the local countries with cost saving initiatives.” 2. You have recently organized a big tender exercise. What are the lessons learnt? “The tender is still running. It is a very exciting project, and we expect a lot from it but at this stage I cannot share any lessons learnt.” 3. What is so special about working at Coca-Cola, as in the past you had similar car fleet responsibilities within the company? “Belonging to one of the most well-known companies in the world is a special feeling. I have spent the majority of my adult life within this company so returning was an easy decision to make. However Coca-Cola Enterprises and Coca-Cola Hellenic are two completely different companies, with different heritage and style, but both are great to work for. Of course my background helps a lot, but I need to learn much to reach the proficiency level I expect from myself. On the other hand, at Coca-Cola Hellenic I was Fleet Manager, representing the operational/ technical part of the business, while my role today is Procurement-related. This new function has a more strategic outlook from a career perspective.” ■ Steven Schoefs
Management I Fleet Europe Awards
2013 Fleet Europe Awards Rewarding excellence in fleet management
01 > Tout justifier
On November 21, the international fleet community will get together in Prague at the Fleet Europe Forum and Awards 2013. In the evening, the 2013 Fleet Europe Awards Ceremony will reward excellence in fleet management in Europe. Here are this year’s nominees – and among them the winners!
T
he Fleet Europe Awards 2013 represent the highest opportunity for international fleet professionals to get the recognition they deserve for bringing new solutions and management improvement to the market and to their company.
02 >
Fleet Europe and the Awards Sponsors will give out 5 well-known Awards to European fleet managers who have successfully developed and implemented fleet manJustifier gauche agementàstrategies:
The International Fleet Safety Award is given to a company that has successfully implemented a safety project 01 > Tout justifier for its fleet. It rewards a project that focuses on original tools and programs to improve the safety of its drivers and takes into account TCO optimization.
01 > Tout justifier
01 > Tout justifier 01 >
The International Fleet Manager Award of the Year rewards the person or team having most successfully deTout justifier veloped an international fleet management strategy and implemented an efficient car policy, leading to an optimized TCO and taking into account local differences and best practices.
The International Fleet Mobility Award is given to a company that has successfully implemented a mobility project for its fleet. It rewards a project that focuses on enhancing mobility within the company while offering original alternatives and optimization of the use of the car.
02 > Justifier à gauche
The International Fleet Green Award is given to a compa-
03 > centrer ny that has successfully implemented a green project for 02its> fleet. Justifier à gauche It rewards a project that focuses on eco-friendliness, balancing TCO optimization with ecological aims, whilst taking into account driver satisfaction.
02 > Justifier à gauche
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02 > Justifier à gauche
This International Fleet Innovation Award rewards a project that stands out in the field of innovation - innovation or novel approach in a specific field of fleet management (car policy, implementation, tools, green approach, etc.).
Which one of these fleet owners will be rewarded in 2013? Richard Tiffany
Karen Ramsden Role
Senior Sourcing Specialist
Company
Oracle Corporation
Sector
Software
Responsible for
6,868 vehicles
“Oracle has been transforming its fleet operations in EMEA by consolidating the selection of cars and provision of fleet leasing companies, and by harmonizing its car policy for EMEA Countries.” Luc Dendievel Role
Director Category Team Fleet
Company
Johnson and Johnson
Sector
Healthcare
Responsible for
14,000 vehicles
“Our EMEA Fleet2017 program continues to create a more seamless and consistent strategic approach to fleet management as well to address the environmental impact our fleet has on our community.” Laura Gobbis Role
Fleet Procurement Manager
Company
Luxottica Group
Sector
Eyewear
Responsible for
1,100 vehicles
“Luxottica decided in 2010 to move away from outright purchase fleet vehicles in each country to a global, full-service leasing car policy.”
Role
Global Fleet Director
Company
Rentokil Initial
Sector
Support Services
Responsible for
16,000 vehicles
“We have worked on creating a European / Global Strategy for the Group, which lead to much improvement on resource, cost, policy creation, and contract management efficiency.” Andrzej Sacha Role
Global Fleet Solution Manager
Company
Nestlé
Sector
FMCG
Responsible for
30,000 vehicles
“The progress and the achievements that Nestlé have made in the last 2-3 years in the area of fleet safety have brought many benefits to the company and the community as a whole.” Jack Knol Role
Director Facilities & Accommodations
Company
Capgemini
Sector
ICT
Responsible for
3,500 vehicles
“Since 2006 we’ve been working on more transparency to take better measures in relation to cost control.” Karin Meersman Role
Corporate Fleet Manager EMEA
Company
Johnson Controls International
Sector
Automotive
Responsible for
8,758 vehicles
“We aim to establish and ensure the consistent application of company car use, and to provide assistance on operating and maintaining company cars in a consistent manner throughout EMEA.” Veerle Vallons Martin Kragh
Role
Global Category Manager
Role
Senior Sourcing Specialist
Company
Norgine
Company
Vestas Wind Systems
Sector
Pharmaceutical
Sector
Renewable energy
Responsible for
420 vehicles
Responsible for
3,000 vehicles
“Our fleet program strategy fits within the One Norgine approach that looks at operating in a global context at all times, while remaining sensitive to local practices and cultural differences.”
“We have much developed innovation in our fleet strategy, which has driven some significant cost savings and CO2 reductions this year.”
The jury Joe Carreira, Fleet Manager EMEA, MSD | Lutz Hansen, Global Lead Buyer Fleet Management Services, Bayer | Hans den Hollander, EMEA Fleet Manager, Cisco | Ralph Ruckgaber, Global Lead Cars Leasing / Fleets, IBM | Erik van der Werf, International Sales Director, Athlon Car Lease International | Stéphane Renie, Sales & Business Development Director, ALD International | Reinier Willems, International Marketing Director, LeasePlan Internationational | Hans-Georg Lutz, Senior Manager International Corporate Sales , Mercedes-Benz Cars | Martin Jahn, Managing Director , Volkswagen Group Fleet International | Javier Vazquez, Director International Major Accounts, Volvo Cars | Hugues de Laage, Head of International Key Account Sales, PSA Peugeot Citroën | Ian Hucker, Director European Fleet & Remarketing, Opel/Vauxhall Europe | Vinzenz Pflanz, Chief Commercial Officer, Fleet Logistics - TÜV Süd | Rob Hill, Global Director, ARI Global Fleet Consulting | Caroline Thonnon, Head of Business Development & Global Fleet Leader, Nexus Communication | Steven Schoefs, Chief Editor, Fleet Europe | Paul Herremans, International Fleet Expert, Fleet Europe
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Management I Fleet Europe Awards Autorola
Which of these solutions and services is most worthy of an Industry Award?
“INDICATA provides real-time market data for comparing vehicles in purchase and sales situations. It aims to provide real-time vehicle portfolio analysis and cross border market data.“
GE Capital “Key Solutions is a comprehensive consultancy service that aims to reduce the customer fleet costs by improving their policies, processes and fleet management solutions.”
The International Fleet Industry Award is the only award designed to highlight innovative approaches, tools, products or services of the international fleet industry (manufacturers, leasing companies, other suppliers). Alphabet “AlphaElectric is a customer oriented product to seamlessly introduce eMobility into (existing) business fleets solutions.”
Peugeot Citroën Automobiles “We launched Share your Fleet, this Corporate Carsharing solution allows companies to manage their cars within a state-of-the art, oneway car sharing system and to reduce mobility costs by up to 25%.”
Arval
Volkswagen Financial Services
“Arval Smart Experience represents a shift to Full Service Leasing which demonstrates our spirit of innovation and our ability to generate value for our clients.”
“International FleetCARS is an international cross-border reporting tool which allows us to provide the customers with a harmonized reporting approach.”
01 > Tout justifier
Audatex
VULOG CarSharing
“We have developed a tool, Car Index, that provides fleet managers with the information they need to quickly view and compare the operational costs of the vehicles.”
“The High Value Corporate CarSharing Solution aims to facilitate the implementation of car sharing services in fleets, and offer additional services thanks to the on-board computer and touch screen.”
The jury Alexandra Melville, Procurement Car Fleet, Mobility, and Car Rental, Accenture | Cedric Millet, Senior Procurement Manager Indirects & Services EMEA, Ecolab | Hans den Hollander, EMEA Fleet Manager, Cisco | Janos Kis, European Fleet Category Manager, Coca-Cola Enterprises | Michael Pohl, Category Manager - Auto Category Management, Microsoft | Paul Herremans, International Fleet Expert, Nexus Communication | Pim de Weerd, Sourcing Specialist , Philips | Robert Patrick, Regional Sourcing Manager EMEA Fleet, MSD | Veerle Vallons, Global Category Manager, Norgine | Wim De Wit, HR Director Retail & Private Banking, BNP Paribas Fortis
VOTE NOW for the International Fleet Hall of Fame Award! The International Fleet Hall of Fame Award recognizes fleet industry leaders and pioneers who have significantly 02 > Justifiercontributed à gauche to the international fleet management profession. Eligible nominees must have at least 5 years of international fleet management experiences and have contributed significantly to the industry.
The following candidates have been nominated for the Fleet Europe Hall of Fame 2013 by both suppliers and fleet managers, with the contribution of the Fleet Europe editorial team. The voting system is open to the entire automotive and fleet industry. You have until November 4, 2013 to vote on halloffame.fleeteurope.com/.
Poul Brødsgaard Group Category Manager, Fleet-Group Procurement ISS World Services A/S Pascal Serres Deputy Chief Executive Officer ALD International Lutz Hansen
Christel Reynaerts Head of International Corporate Sales BMW Group Alain Duez France/Benelux Procurement Director and Global Fleet/Mobility Procurement Director Accenture Procurement Ing. Giovanni Tortorici
Lead Buyer Fleet Management
Global Supply Chain - Purchasing Manager
Bayer
BARILLA G. e R. Fratelli S.p.A.
03 > centrer Ivor Johnson
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Johan Verbois
Global Procurement
General Manager Fleet & Network
Pfizer Global Fleet - EMEA
Toyota Motor Europe
FLEET EUROPE # 66
www.volkswagen.com/emobility
Just genius.
Easy electric.
The new XL1.
The new e-up!
The most simple things in life are often the most genius. In our case it was a simple question: Is it possible to build a 1 litre car? Well, yes it is. We called it the XL1. (Actually it is a 0.9 litre car, 1 litre just sounds a bit more catchy.) But because we have a history of changing mobility, we didn’t stop there. Introducing the new e-up! for 100% electric driving, with an unheard-of power consumption of 11,7 kWh/100km. With high-torque right from the start the e-up! can reach up to a distance of 160 kilometers. That is the “Think Blue.”attitude: Proving that sustainability is not a buzzword, and great innovation can arrive in a very small package. Read more on www.volkswagen.com/emobility
Fuel consumption XL1 in l/100 km: 0,9 (combined), power consumption in kWh/100 km: 7,2 (combined), CO2 emissions in g/km: 21 (combined). Power consumption e-up! in kWh/100 km: 11,7 (combined); CO2 emissions in g/km: 0 (combined).
Cedric Millet
Fer Derwort
Job Title: Senior Procurement Manager
Job Title: European Fleet Manager Company: Infor Sector: IT Countries under responsibility: 15 Western and
Indirects & Services EMEA Company: Ecolab Europe Sector: Global provider of water, hygiene and energy technologies and services to the food, energy, healthcare, industrial and hospitality markets Countries under responsibility: 44 Number of vehicles: 5,500
Eastern European countries Number of vehicles: 1,350
management I Cross interview
Harmonisation with benefits For the cross interview in this edition of Fleet Europe, we brought Cedric Millet of Ecolab and Fer Derwort of Infor together at a location on the Belgian/Dutch border. The questions and answers below are the main elements of what was a true two-way discussion between Fer Derwort and Cedric Millet. They each had comments to make, and at the end of the interview their discussion was far from over. A discussion which will, no doubt, be continued at the Fleet Europe Forum in Prague in November.
T
he format was the same as for previous cross interviews. We put three questions to the international fleet managers, and then they had their own questions for each other. It was gratifying to see that two such highly placed international fleet managers had come to many of the same conclusions about how to manage a diverse fleet economically, safely, and in an as environmentally-friendly fashion as possible. How is your international fleet managed – locally, centrally… and why? Cedric Millet: We have had a number of changes from the situation in the past, and we have both central and local arrangements within our two legacy companies. So we are aiming to take the best from each scenario and we are aiming always to have central management. This is because it gives more consistency in organizing a policy, and it enables us to ensure that all administration and operational processes can be streamlined. This needs a strong set-up. One of the downsides of centrally managed fleet management is of course the fact that it means ‘one size fits all’ and you may need local specificities. But this can be solved by capturing the local specificities at the beginning of the process and dealing with
them at regional level. We had this in one of our companies but they ordered locally in line with the central specification. Fer Derwort: Our fleet management is organized centrally. We implemented a scheme in 2008-2009, starting by looking at our needs and at what we had available. So we created one European car policy, with the principle that a company car is for business purposes, but the employee is allowed to use it for private purposes too. If an employee does not wish to take one of the cars on offer, he is able to take a cash allowance instead. So in 2010 we generated one fleet management team for Europe, which takes care of all fleet related items. We selected one European manufacturer and one leasing company. We find a lot of advantages in this central arrangement – for example everyone who is eligible for a company car at a certain level will get the same car in all countries. Sales people in Spain drive the same car as their counterparts in Sweden. We take account of individual tax regimes, though. This has saved us a huge amount of money. What are the main elements of your car policy? Cedric Millet: We are moving towards harmonization in our com-
panies, and we have moved from multiple to single and dual badge in Nalco Legacy whilst Ecolab Legacy runs multiple badge. The time has come to challenge the status-quo and bring Ecolab as ONE onto a four badge system – two mainstream and two premium. I see the value of this as leveraging on volume. And I believe the value will start to come – and is starting to come – from the car manufacturers: just to maintain market share they have to ensure that customers benefit from the latest technology, particularly in the areas of CO2 emissions and the environmental footprint. Fuel consumption is of course part of this and for me it is truly essential to build up relationships with a very limited number of manufacturers. The same applies for leasing companies, where we have two preferred leasing companies globally. This gives us more visibility. Having limited suppliers enables us to build up useable data for managing our fleet operations. We have genuine consistency – like Fer, same job title, same car (models and version and BHP), same safety specifications – which means we can implement elements such as eco-driving training everywhere, strive for the right driving behaviour. Consistency read more on across the regions, this is an advan- p.46 tage.
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management I Cross interview
What would Cedric Millet like to know about Fer Derwort’s fleet management? These are not due to unsafe driving, but to not being concentrated enough. I can also say that when there are more major accidents – as there always will be – over recent years our drivers have never been to blame. We are looking at whether driver training is appropriate, but like you, Cedric I am also considering whether an employee benefit scheme could help, this time in the field of safety.
What do you expect manufacturers and lessors to do to move your fleet management How do you ensure safety for your drivers?
“
Well to start with, we provide company cars which have to be equipped with certain levels of safety equipment. This means that we always supply at least the minimum legally required safety equipment in each country. By defining these items in our car policy and then analyzing accident statistics, we were able to ask ourselves what we needed to do to improve our damage statistics and what is the main cause of damage. The main cause of damage, we found, was driver behaviour – so we also have an agreement that certain types of damage can be charged to the employee. There is always room for more improvement in anything, but in every country our accident statistics are below the country average. So when I analyse further, we find that the main type of damage is small accidents.
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forward?
“
The main question I would raise is whether fleet management will still exist in the future, or will it be part of mobility management? There are two types of driver – benefit cars and job cars. I think manufacturers will continue to supply better and greener cars, and the lessors are going to provide the services. So I believe that in future the manufacturers’ and lessors’ role will be to supply less mobility management than now – I believe others will do this. Some companies will merge all of the data we receive from different manufacturers and lease companies. These new companies will see the whole picture of what a company needs and provide the services to meet these needs. The key is service – you will choose a supplier who provides the best services. Your employees should not be delayed by poor service. All the data needs to come together.
What is your view on telematics?
“
Not a word we use much in our company… We have had many talks about this. Most of our cars are passenger cars. I think that in the future telematics will not be just the ‘box’ in the car, but this in conjunction with what the garage sees when the car goes in for a service. It can see exactly what you have done with your car over the past 30,000 km through its analysis. So I am keen on telematics for monitoring examples, but some employees see this as an intrusion into private life. But from my point of view, telematics can show that our employee was not at fault during an accident, for example. So if we can come to an agreement with drivers about this, telematics could be useful for employer and employee.
What would Fer Derwort like to know about Cedric Millet’s fleet management?
How do you manage end of contract wear and tear issues?
“
That’s a very good question Fer, because it is becoming high on our agendas as we have seen some end of contract charges – up to several hundred Euros, some of it exceeding the contract level. If we increase the fair wear and tear threshold with the leasing company, the likelihood is that we won’t see any bottom-line impact. So we have run some pilots, and in Germany and the USA for instance the company shares any gain with the employee. Because for me fair wear and tear is all about compliance, specifications awareness and driver behavior. The aim is to ensure that the driver is made aware of the condition he is expected to return the vehicle in and that he knows he has to look after it. Then transfer this accountability onto the driver. The first
time the driver receives a part of the benefit at the end of the lease contract, it is an incentive. After that, the situation reverses and if he doesn’t look after his car and doesn’t receive the benefit, it becomes like a penalty. We are a very safety-conscious company and we instil this in our drivers. So I would sum up by saying that the key is to have a system which follows every single car, and then share the gain with the employee. Get company buy-in and commitment. It is all about behaviour, and about having very clear and indisputable rules defining fair wear and tear with both the employee and the leasing company.
How do you organise fleet reporting?
“
We have several sources which are provided by the leasing company – we are heavily reliant on them. And we also have internal sources but this data is more general in character. We mostly look at TCO, fuel cards, and taxes. We ask the leasing company to include the tax implication for the company in any quotation, for example when there is an employee upgrade. Every country has to report on a monthly basis – cars and drivers. We ask them to break down the components of the TCO because, for example, in some countries insurance is included, in others it isn’t… We use a spreadsheet type of system because it gives us visibility across the whole of the fleet in all countries. We ask the leasing company to provide data on wear and tear and some other items. We have already seen some financial improvement from our actions – including the installation of telematics. We measure exceptions in terms of consumption and so on. It is not always obvious that when manufacturers say they have reduced the TCO, the client company sees this benefit. We believe manufacturers should look at their car as not a product, but a mobility service solution to
us so that we can carry out our business. I think manufacturers should extend their offerings with tailor-made mobility solutions for corporate fleets including instant driver coaching tools adapted to each business need, a comprehensive car maintenance program, telephone disabler when the vehicle is in motion, etc...OEM’s are still too product-oriented rather than with a solution/service focus.
How do you organise your fuel program?
“
Well it’s almost a monopoly where oil companies are concerned. Our volumes are probably too limited to leverage any benefit here. So it’s all about technology, fuel efficient engines, driver behaviour, telematics, and also having contracts with oil companies where possible. We try to get the best discounts we can. The situation tends to be that the best national coverage comes with the lowest discounts… The highest discounts come with the least dense geographical coverage. So for me, engine performance and driver behavior are really the key to managing fuel costs, and keeping control over what drivers are paying for with a fuel card – carwash, tolls, private parking….! You really have to dig down.
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MAnAgeMenT i Cross interview
“We are looking at CO2 taxes in setting our car models. Reducing CO2 emissions means reducing fuel expenditure.” Fer Derwort
Fer Derwort: One of the key points when we instigated our car policy was probably similar to many companies: how can I control and decrease expenditure while maintaining employee satisfaction. This is not always easy of course when you are downsizing in some areas. So going forward we are looking at CO2 taxes in setting our car models. Reducing CO2 emissions means reducing fuel expenditure, so the aim is to find manufacturers which can supply the right cars within the various eligibility levels, from junior staff to vice-president level. Looking at eco-driving, this is quite easy to apply in a country like the Netherlands where everybody is interested in it, but not so easy in Germany, where they can legally drive at 200 km/h or more… In this sort of situation the answer is to forget eco-driving courses but select more environmentally-friendly cars. This automatically promotes eco-driving in the organization without using courses. What is your view on alternative powertrains and the shift towards mobility management?
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Cedric Millet: We are very supportive of any electric or other drivetrain technology which can help us reduce our carbon footprint. Right now though, for our typical company car and LCV usage, the offering is not yet suitable. We have a remote sales force and the range provided by electric cars is not suitable even if the car size and the trunk size are adequate. The same goes for the LCV fleet, where vehicles do not necessarily come back to base at night. Nevertheless, we need to keep a close eye as the technology evolves. There is some potential on the hybrid side, but we have not yet found a reasonable TCO. However, I am convinced that in time these technologies will provide the solutions we need. In terms of mobility management, we are first concentrating, as I said, on harmonization of the existing policies – i.e. fleet and car policies across regions. This may give us enough visibility to be able to implement mobility policies. I cannot stress enough that OEM’s have to go beyond the vehicle, and on to become services-oriented, providing a one stop mobility solution. Fer Derwort: Where powertrains are concerned, I agree with Cédric – it depends on the situation. For someone covering 10,000 km a year, mostly in urban areas, electric and hybrids are an excellent solution. But for the majority of our employees who drive high annual mileages and often on the highway, this doesn’t yet fit either from a practical or a cost point of view. They work out more expensive. So we are following the technology but it doesn’t yet provide the solutions our businesses need. The car has to be beneficial for both employer and employee. Moving on to mobility management, we start from a point in the past where a lot of company cars were part of the benefits package. By offering a more limited car choice, we were trying to change mindsets in some way, from it being ‘your car’ to a company car you can use. When you change towards this notion of use, you can move on to the next step. I
already mentioned that this can be in the form of an allowance instead of a car, but it can also be in other ways. So we took this step together with all the company stakeholders, providing a vehicle benefit program. Moving forward we may see employees travelling from A to B less with a company provided vehicle than before. Alternatives such as public transport may come into the picture: for example in France, travelling from Marseille to Paris doesn’t require a company car, TGV and taxi is the obvious way. All of this requires European transport infrastructures to improve, and when they do I believe employee mobility solutions will become more key. Another thing is that leasing companies will become either large and international or small and local. These, and others, will become mobility suppliers in my view.
“Having limited suppliers enables us to build up useable data for managing our fleet operations.” Cedric Millet
Cedric Millet: I agree, I cannot stress enough that vendors have to go beyond the product, the vehicle, and on to the services, provide a one stop mobility solution. ■ Tim Harrup
management I Global Fleet Management Conference 2013
A Global Success The first Global Fleet Management Conference, organized by Automotive Fleet and Fleet Europe on the September 30 & October 1 in Phoenix, Arizona, proved that going global is more than just window dressing. For today’s multi-national fleet managers it’s the new reality.
O
ver a 100 participants, including over 30 global fleet managers, gathered for the inaugural Global Fleet Management conference to share their experiences and explore what the future holds for fleet management at a global level. The agenda for the conference was pitched perfectly and sold out weeks beforehand. It attracted high caliber fleet personalities from leading multinationals including Accenture, ITW, Nestle, Barilla, Johnson Controls and Ericsson amongst others. Tendering for success The tender process is one of the biggest issues in global fleets. Valerie Van Hoof (Athlon Car Lease), Helen Cooper (LeasePlan) and Emil Gaynor (Jaguar Land Rover) shared the vital steps of global tendering, taking time to explain common pitfalls and how they can be avoided. The debate then focused on the product offerings from leasing and fleet management companies, and the rationale of close-end and open-end leasing. The existence of these two different approaches soon led to some in-depth discussion. Jeff Schlesinger of GE Capital and Rob Hill of ARI explained that both concepts had merits for each continent, with advantages and disadvantages in terms of transparency and risk, but that it was the client who made the final decision. The audience showed no sign that one concept will overtake the other, and as such closed and open ended leasing is here to stay. Market conditions The first day was wrapped up by Marco Annunziata, Chief Economist at General Electric. Annunziata gave delegates a tour of economic conditions in different continents, explaining that the Asian economies like China, India and Indonesia presented the biggest potential and that, in time, they could become the most important world economies.
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The focus should not just fall on the east. The US, despite its debts, was still an economic powerhouse and would play a predominant role in the world economy for the foreseeable future. Fleet best practice in emerging markets The second day gave delegates a chance to engage with experts as they explored emerging countries. Robert Patrick, Regional Sourcing Manager Fleet at MSD EMEA and International Fleet Manager of the Year 2012, started off by describing his fleet management policy in Europe, before moving on to share the challenges of managing over 50 different countries with their own taxation schemes, cultural habits and currencies. Tony Elliott of Wren & Hawksmoor, was next up to look at the South-African fleet market. Whilst driver behavior and safety were on the agenda, the first step in this exciting market was simply getting control over the fleet. China and Brazil, the big two emerging markets, were left to ALD’s Guillaume Bourst and Pascal Vitantonio. Whilst Brazil has quickly developed fleet management best practices comparable with the European close-end lease concept, China is still at the staring post. Volatility in legislation and taxation, alongside the idiosyncrasies of China’s mega cities, has led to market complexity. Measuring performance One of the most engaging presentations came from Denis Férault and Robert Sandler of PHH Arval Global Alliance, on Metrics for Effective Fleet Management. They advised that it was essential to decide on what type of benchmarking was best; whether a TCO, a policy or a driver behavior benchmark for example. Benchmarking today is static, whereas tomorrow it will be dynamic, customized and situational. That’s part of the challenge for fleet management at global level today – it’s an exciting journey ahead. ■ Steven Schoefs
And in 2014? The Global Fleet Management Conference 2014 will take place in Europe. In the upcoming weeks you can find more information on the 2014 edition on www.fleeteurope.com and www.globalfleet.com
The inaugural Global Fleet Management Conference in Phoenix was a big success, with more than 100 participants.
A well-known face to the European Fleet Community: Bruce MacLaren of Microsoft, enthusiastic as always, gave an inspiring speech on the future of productivity. China is one of the most challenging fleet markets. Guillaume Bourst, Business Development Manager at ALD Fortune Auto Leasing & Renting in China, shares his experiences on Chinese fleet management.
Robert Patrick, Regional Sourcing Manager EMEA Fleet at MSD and International Fleet Manager of the Year 2012, gave insight into the way MSD tackles fleet management issues in Europe.
And to show that this first Global Fleet Management Conference was really a global one: Caroline Thonnon and Mike Antich, the editors of Fleet Europe and Automotive Fleet, in a meeting with a delegation of the Chinese car rental industry.
The conference was opened by Caroline Thonnon of Nexus Communication and publisher of Fleet Europe, and Mike Antich of Bobit Business Media and publisher of Automotive Fleet.
Mark Smith, Vice President Strategic Accounts Fleet Services at GE Capital, and Andy Sacha, Global Fleet Solutions Manager at Nestlé, enjoy the informal atmosphere of the conference.
Two global fleet managers reunited: Chris Tinajero of Ericsson and Louise Davis-Lopez of Johnson & Johnson.
Who said the fleet community is a man’s world? From left to right: Brenda Davis (Baker Hughes), Janis Christensen (Mercury Associates), Lynda Dinwiddie (Labcorp), Rachel Johnson (Konescranes), Patsy Brownson (Fleet & Relocation Specialist).
Giovanni Tortorici, fleet executive and Senior Purchasing Manager at Barilla was one of the European fleet managers present in Phoenix.
Rob Hill, Global Director at ARI Global Fleet Consulting, explains the differences between funding best practices to the audience.
Tony Elliott, Fleet Expert and Partner at Wren & Hawksmoor, underlined the do’s and don’ts of fleet management in South Africa.
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MAnAgeMenT i Procurement
Innovation… what should buyers do! When it comes to innovation, companies increasingly see suppliers as a source of new ideas and as people who can help them implement creative change.
Furthermore innovation does not need to be about products or services… it can be about process, distribution channels, new modes of organization or business models etc...
B
The following diagram can help you ask some of the right questions when it comes to exploring the different type of innovation that can come from existing or potential suppliers.
uyers are now asked to facilitate access to supplier’s innovation. As a first step, going to key suppliers, asking them if they can contribute ideas appears logical. Nevertheless other options exist and buyers should know few things before heading in that direction… What is an innovation? Innovation is often defined as the implementation of a new or significantly improved product or service. However reaching a compromise on what is new or significantly improved in a specific industry can be a daunting task. Subjective opinions tend to battle hard when the word innovation is around.
Game Changer
Brand
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Looking beyond the obvious Often buyers tend to believe that innovation comes from collaboration with suppliers. This is often true for incremental innovation, innovation where you continuously try to improve the performance and the cost of what you buy. However when you look at fundamental innovation where a radical change is taking place in terms of performance or market structure, they can come from new suppliers who simply have an interest in starting to serve your industry.
Also there is an implicit assumption that innovation will come from one company but sometime it is worth looking at encouraging suppliers to work together, or at creating a consorHow can Suppliers help to Create and Capture Value tium of suppliers across few categories that Any opportunity to change our business model, New rules of the the value proposition, our revenue model by game could come up with new working differently with existing or new suppliers? concepts. Enhanced brand value
Can we benefit from the Brand of our suppliers? Can suppliers help us to strenghten our brand?
Market
Access to new markets
Can we sell to suppliers? Can suppliers help us sell or access markets?
Customer experience
Customer experience
Do we have suppliers interacting with customers? Can suppliers help us strenghten our customer experience?
Offerings
Product / service differentiation
Can we enhance our products and services by leveraging suppliers capabilities and innovation?
Processes
Increased efficiency
Can we innovate our processes, our total costs by leveraging suppliers capabilities and innovation?
Risks
Resilience and Compliance
FLeeT eUroPe # 66
Can we reduce our risk exposure by leveraging suppliers capabilities and innovation?
Too often when buyers are performing market analysis, they tend to focus on the main existing competitors in their supply market and on the few new entrants that could help lower cost. An innovation mindset calls for a different approach, instead of asking who competes with whom, you need to ask who is innovating with whom?
• the performance drivers that help you compete on the market.
“Luck only favors the prepared mind”, said the French microbiologist Louis Pasteur. (Copyright: Felix Nadar)
This can take you well beyond the usual market suspects. It will often lead you to spot opportunities related to substitution, tier 2 suppliers and the emergence of new industry players. Understanding who innovates with whom, is like opening a small window onto the future. You might not have a full vision, but still this is an opportunity to look ahead and capture useful market hints. In search of unmet needs. If you tell a supplier… if you have innovative ideas or something new; feel free to share this with us… it is unlikely that you will get a truly innovative contribution. At best you could be presented with the solutions your supplier has recently developed for another industry or for competition. People often believe that innovation comes from blue sky ideas, but this is a legend. Even when luck plays a role in innovation, it comes with a lot of work. Luck only favors the prepared
mind as the French microbiologist Louis Pasteur said. In fact innovation comes from people trying to solve problems or to overcome constraint… So the best thing you can do to get suppliers innovate for you is to start sharing with them unmet needs. An unmet need is a problem or a constraint you have identified as critical for the business. Looking for unmet needs rarely starts with asking stakeholders and customers their expectations. It is better to: • Observe them closely, • Search for what prevents them from making radical change happen, • Spot their pain points. This also calls for a good understanding of • the current challenge the business is facing, • the differentiation strategies other teams are working on,
When you found what looks like an unmet need you can qualify it by answering the following questions • What is the problem? The desired outcome? • Who (which individual in the case) is responsible for solving the problem and making a decision? • Is solving this problem in line with the strategy? • Where is the money? (The value generated by the solution) • When does the problem need to be solved? • How will we measure success? • How did we try to solve this? What have others tried? So before starting to do go and visit your key suppliers to ask them for a couple of brilliant ideas… make sure you have done your homework! That you have looked beyond the obvious and identified potential new source of ideas and developments and that you have a few unmet needs that will help you to start the conversation. ■ Hervé Legenvre, PhD MBA Director, EIPM
About EIPM The EIPM is the Institute in Purchasing & Supply management offering the sole Executive MBA accredited by AMBA, Complete Certification Program for Professionals & In companies Programs in 9 different Languages around the World. www.eipm.org
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BUSINESS I News People 1
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Wim Buzzi [1] has left Coca Cola Enterprises to join Fleet Logistics. As Chief Regional Officer for Western Europe. Buzzi will be responsible for the firm’s business in Benelux and France. He will report directly to CEO of Fleet Logistics, Rainer A. Laber.
ŠKODA UK has announced the appointment of Patrick McGillycuddy [4] as Head of Fleet. He joins the brand from Vauxhall where he held the role of National Corporate Sales Manager. McGillycuddy’s new position will see him focus on growing the brand’s fleet market share.
Tesla Motors has appointed Davide Ghione [2] to the position of European Fleet Sales Manager, aimed at developing the potential of the full electric sedan Tesla Model S into the European fleet market.
Matt Harrison [5] has become President and Managing Director of Toyota in the UK. Harrison, who has been the company’s Commercial Director since the start of 2011, succeeds Jon Williams, who decided to take up a new role with a private Toyota distributor.
Leasing company Alphabet has announced a new board member: Martin Stremplat [3] has been appointed to the position of Chief Financial Officer of the finance branch of the company, where he will be working closely with chairman of the board Marco Lessacher.
Bart Beckers, previously the Managing Director of the UK business, has left Arval UK and has been replaced by Benoit Dilly [6], who arrives to Arval having held a similar position at BNP Paribas Leasing Solutions.
Arval launches app-based corporate car-share Arval Netherlands is launching a concept for corporate car-sharing that is built around a smartphone application. The app will not only allow users to reserve a ‘Wisselwagen’ (‘Exchange Car’) but even to open and close it via a smartphone - eliminating the need for a physical car key. The ‘Wisselwagen’ is Arval’s answer to the growing demand for flexible business mobility for employees who don’t have their own corporate vehicle.
Volvo and Fleet21 in safety initiative Volvo Car UK has announced that it is partnering with business driver safety consultancy Fleet21 to help reach its 2020 goal: this is that no one will be seriously injured or killed in a new Volvo. Along with the use of technology Volvo is putting the emphasis on driver behaviour by working with Fleet21, a leader in educating driver risk managers about the key issues and possible solutions.
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The ‘Wisselwagen’, Arval’s concept for corporate car-sharing that is built around a smartphone application, is now available.
Further fleet management moves by TomTom TomTom Business Solutions has announced that it is to launch a new device to enable a smartphone to connect to real-time vehicle and driving information. The TomTom LINK 100 dongle allows third-parties to create a wide range of new mobile applications that make use of vehicle information and driver usage. This includes vehicle diagnostic information, such as engine rpm, load and temperature, directly from the on-board diagnostic port. The
integrated 3D accelerometer logs driving behavioural data. Along with this, TomTom has launched a new blog under the name “Fresh Fleet Thinking Blog”. It is designed to provide original insights to help fleet mangers make ‘smart, informed decisions’ about their mobile workforce and turn time spent on the road into business value.
50 years of LeasePlan: Fleet and profits increase Netherlands-based fleet and vehicle management company LeasePlan revealed in August that the number of vehicles under management was up to 1.36 million from 1.35 million at year-end 2012. Profits increased by 38.9% to EUR 171.1 million (1st half 2012: EUR 123.2 million), total assets rose to EUR 20.1 billion (full year 2012: EUR 19.5 billion). In terms of geographical expansion, the groundwork for LeasePlan Russia’s start-up operations proceeded apace during 2013, and in July the doors to business were opened. LeasePlan Corporation Chairman and CEO Vahid Daemi commented: “The year in which we celebrate our 50th anniversary has started off well. Despite continued uncertainty in the market, LeasePlan produced strong results.”
“Despite continued uncertainty in the market, LeasePlan produced strong results,” stated LeasePlan CEO Vahid Daemi.
Fleet Technology award for Ogilvie Ogilvie Fleet, which has around 11,000 cars on its books, has won the BusinessCar ‘Fleet Technology Awards’ prize in the Leasing and Contract Hire category. This award is for the introduction of MiFleet Showroom 2, which collects all driver and vehicle data together in one place and delivers it directly to a fleet manager’s desk in real time. 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 fleet solutions in Europe can be found at www.volkswagenleasing.de/internationalfleet
www.kia.com
Imagine a fleet with plenty of room for your business activities.
The Kia fleet range. Excitement. Quality. Fleet-ability. The contemporary, revitalised Kia fleet range offers enough variety to let each and every employee find the right model. If a combination of roominess, versatility and great looks is demanded, the spacious cee’d Sportswagon, the flexible Carens and the stylish Sportage are the best examples within the Kia range. Add the fact that they all come with modern, common-sense technologies and our industry-leading 7-year warranty, and you’ll understand why Kia is a brand you will enjoy doing business with. Meet a different kind of fleet: www.kia.com/eu/fleet. * The Kia 7-year/150,000 km new car warranty. Valid in all EU member states (plus Norway, Switzerland, Iceland and Gibraltar), subject to local terms and conditions. Fuel consumption (l/100km)/CO2 (g/km) for the vehicles shown are as follows: urban from 5.0/129 to 10.6/252; extra-urban from 3.8/98 to 6.8/161; combined from 4.2/109 to 8.2/195.
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business I 3 questions to…
business I Maserati Once in a while something unexpected makes you very happy. While visiting the IAA Motor Show in Frankfurt I met with Franco Marianeschi, the European Corporate Sales Manager of Maserati. Yes! The iconic Italian car brand that just launched new Ghibli is going ‘fleet’, and of course Fleet Europe wanted to know more about this.
3 Questions to…
clive taylor
becomes head of fleet efforts for Garmin Clive Taylor was recently Director of Fleet Management & Commercial Business for EMEA and APAC at Garmin. In his new role, Taylor will have to ensure end customers are provided with a complete fleet solution. With this respect, he sees the future of fleet management in telematics. 1. What are the main challenges in your new role as head of fleet efforts for Garmin? “Time! There are a lot of things I need to initiate... Luckily I have a company of 10,000 employees to support me! We have chosen to only work with partners to provide the complete fleet solution to the end customers. We have a massive job in assessing and accrediting our many partners to ensure we fully understand what they can best offer so we can match the right partner to the right customer.” 2. In your opinion what are the solutions fleet managers are most in need for? “In general terms customers want their fleet management solution to be: simple; open, so that they’re not locked in to a provider if them what they need; modular, in that they can continue to add new functionality when desired; and good value for money. That said there are definite customer groups that have common needs. There are many benefits taxi companies, for instance, gain with a fleet management system, such as optimizing the allocation of the customer pick-ups or the simplicity of receiving the address of the next customer on an in-cab screen (with navigation).” 3. What do you see as the main trends in fleet management for the times to come? “There is a definitive shift to the use of screens for two-way communication and navigation/ job scheduling. Partners who have adopted Garmin’s satnavs estimate that just 10% of their current installed base have some type of screen in their vehicle, whereas for new customers: 25-50% are requesting navigation screens as part of their fleet solution. There will be a demand to have product that can perform multiple functions and interact seamlessly with peripherals, vehicle sensors and cameras." ■ Laetitia Fernandez
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“By 2015 the goal is to sell 50,000 Maserati’s a year worldwide”, says Franco Marianeschi. “To realize this ambition we have to reach out to all possible customers, also corporate fleet customers.”
T
he step towards corporate fleet sales is coming from the global sales strategy of Maserati. While last year the brand sold just over 6,300 cars worldwide, ambitions are high. “By 2015 the goal is to sell 50,000 Maserati’s a year worldwide”, says Franco Marianeschi. “To realize this ambition we have to develop new products and we have to reach out to all possible customers.” The latter is being approached by a new fleet structure with Franco Marianeschi as European Corporate Sales Manager and two national Corporate Sales Accounts, one based in the UK, and one based in Germany and also responsible for Austria and Switzerland. “It is a small fleet structure, because we
New fleet structure in Europe want to go step by step. So we started with dedicated contact people in the main markets, but of course we hope to develop our structure further in the future.” If you are a fleet client based in other European countries you can also be serviced in terms of fleet, Franco Marianeschi assures us: “Our network is organized in a way that enables us to deal with fleet demands in all countries where we are present.” Although of course all markets are important Maserati expects the biggest volumes in Europe in the UK, Germany, Italy and Switzerland. Looking at the target group there will be a focus on large corporate customers through Maserati’s own fleet structure and relations with leasing and rental companies, but the
small and medium sized enterprises will also be actively prospected by the dealer network to guarantee a close relationship and ensure perfect service quality. Complete portfolio On the product side this year Maserati launched the new Quattroporte and recently presented the Ghibli, a smaller but luxurious sports sedan that is designed to lower the entry level of the Maserati brand. In 2015 Maserati will launch their first SUV, the Maserti Levante, so that together with the existing Gran Turismo and Gran Turismo Cabrio the portfolio is completed. “The Ghibli coupled with the 3 liter diesel engine will be a serious com-
petitor for some of the popular German fleet models”, continues Marianeschi. A recent study with one of the main residual value specialists has shown that Maserati is competitive with the other premium fleet brands in Europe. “We will position the new Ghibli at a list price of 55,000 Euros excluding VAT throughout Europe, and adding the Business Package with fleet minded features like navigation system and rear camera, you have the complete fleet car. Of course not everyone will be attracted by our offer, but we are convinced that Maserati can bring added value for the company and its fleet drivers.” The choice is yours. ■ Steven Schoefs
Recently Maserati presented the Ghibli, a smaller but luxurious sports sedan that is designed to lower the entry level of the Maserati brand.
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business I Advertorial Volkswagen
Pioneering E-mobility: Leading from the front Visitors to the IAA in Frankfurt last month had the chance to meet the latest member of the Volkswagen family – the new e-up! With Volkswagen’s first foray into e-mobility market offering cost efficient, emission free and silent motoring an exciting opportunity for corporates customers to experience the benefits of e-mobility has just emerged. Forward thinking, market leading The world’s largest automaker is serious about e-mobility and has set its sights on global market leadership by 2018. Prof. Dr. Martin Winterkorn, CEO of Volkswagen Aktiengesellschaft, setting out the VW Group’s vision said, “We are starting at exactly the right time. We are electrifying all vehicle classes, and therefore have everything we need to make the Volkswagen Group the top automaker in all respects, including electric mobility, by 2018.” With interest in e-mobility growing the timing of the e-up!’s release could not have been better. Volkswagen presented its first e-vehicles, the e-up! and e-Golf, at the IAA Motorshow 2013 in Frankfurt. The time for e-mobility has come Volkswagen is once again on the ball. Just as the momentum builds for e-mobility in corporate fleets the world’s largest automaker has stepped in to release its first e-vehicle – the e-up! The e-up!, a classy fours seat, five door city car, is the first of 14 models from the VW Group’s brands that will be available in electric or hybrid drive technology by 2014. It is set to transform what e-mobility means for corporate fleets and signals the arrival of Volkswagen on the e-scene.
Accept no compromises If e-mobility is to be successful it has to at least match or beat the ICE. Makes and models that succeed in corporate fleets are cost efficient, reliable and increasingly low in their emissions. Volkswagen knows that fleet clients will accept nothing less. According to Winterkorn, “The electric car cannot be a compromise on wheels, it must convince customers in every respect.” And the e-up stands up to scrutiny. The e-up! is fully equipped. In the design room, on the production line and now on the road the e-up has been engineered for e-mobility, emissions free and enjoyable motoring.
Volkswagen helps you choose the best powertrain for the fleet The new Volkswagen “BlueMotion CHECK App” is an innovative way of helping you choose the best powertrain for a fleet vehicle. By simply inputting data of how a vehicle
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will be used the app, which has been launched in Germany for Android and IOS, appraises which powertrain would suit the fleet best from a financial and environmental perspective.
The BlueMotion CHECK App will be available in other European countries later this year.
Focusing in on the total cost of e-mobility Corporates with big fleets are facing challenging times. With fuel prices on the rise and already making up approximately a quarter of the total cost of ownership, fleet managers are looking for new ways to deliver corporate mobility at an affordable cost. The e-up! provides an answer. Whilst the upfront investment may be a little higher than conventional powertrains, the lower running costs of the e-up! make it an attractive proposition when the total cost of ownership is considered. Fuelled from the electricity grid the e-up will travel 100km for a measly 3 euros. Volkswagen is putting its faith in the e-up and the powertrain. By offering a 2 year guarantee on the vehicle and 8 year guarantee for the battery, residual values will be stabilized and added confidence given to corporate buyers. And if support is needed a host of dealers that have been trained in e-mobility are ready, willing and able to offer the professional back up and maintenance that fleet managers and drivers expect from Volkswagen. Mobility that’s fit for purpose Governments are restricting access to cities based on CO2 emissions and with vehicle taxation systems favouring low
Volkswagen: Helping fleets to finance the e-up! Volkswagen Financial Services offers European corporate customers cost-effective and individual solutions for fleets of any size. The team at Volkswagen Financial Services is pleased to offer customers an extensive range of competitive financial services that are perfectly suited to the mobility that the e-up! offers.
The elegantly designed and expansively equipped e-up! boasts exceptional features in its interior as well as its exterior. and zero emission vehicles e-mobility is an important agenda item for the bottom line. The e-up is the perfect answer. It is ideal for daily use in the city and at home with employee commutes given its high efficiency of 11.7 kWh/100km which gives an impressive range of 160km on a single charge. Depending on driving style, traffic situation or the usage of auxiliary services the range can vary. With driving efficiency and pleasure at the heart of the design process the e-up! weighs in at just 1,139 kg. The front end, sills and under body have all been aerodynamically optimised to maximise efficiency. It’s fast of the blocks too, accelerating from 0 to 80km within 8.1 seconds and reaching a top speed of 135km/h Easy to manage mobility The lithium-ion battery, which is integrated in the under floor area, has a total storage capacity of 18.7 Kilowatt hours (KWh) and can be recharged to as much as 80 per cent of its energy storage capacity in 30 minutes. The battery supports both DC and AC charging so the e-up! can be plugged in at most charging stations and any standard 230V socket – regardless of the power sources or charging rates that they offer. Wondering what charge is left in the battery? Simply download the e-up! smartphone app to check the remaining charge. Need a power boost? The app directs drivers to public charging
facilities too. Volkswagen is making managing battery power simple, giving confidence to fleet managers and drivers. The mobility journey is just starting The new e-up! will be available in Norway, Denmark, Sweden and Switzerland from the end of 2013, with customers in Austria, Belgium, France, Netherlands and the UK able to get behind the wheel in early 2014. Later that year the e-up! will be available in Czech Republic, Italy, Ireland, Luxembourg Portugal and Spain.
The e-up! being put through its paces by participants from 19 countries at the Think Blue. World Championship 2013 in Ehra Lessien.
And it is just the start of the e-journey. The bigger brother of the e-up, the iconic e-Golf, will be coming to a corporate fleet near you in 2014 and with sufficient demand up to 40 new models could be fitted with alternative drivetrains. ■ Christine Holtz Volkswagen AG
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Register today to be part of this unique event Programme and registrations: www.fleeteurope.com/events The Fleet Europe Forum will focus on the 2014 Outlook for International Fleet Management.
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SCOPE I News Opel Ampera Wins eCar Award 2013 as Best Overall Concept
The initiators of the «eCar Award», editors-in-chief Bernd Wieland (Auto Bild) and Olaf Schilling (Auto Test), congratulated Opel CEO Dr. KarlThomas Neumann on this success.
More than 13,000 readers of the magazines Auto Bild and Auto Test chose the Opel Ampera over 15 competitors as the “best overall concept” among the “first evergreens” of electric mobility. In 2010, the Opel Ampera won the newly introduced “eCar Award” as the “Innovation of the Year”; in 2011 the vehicle was voted “eCar of the Year”. And not even two years after its launch, the electric car with range extender is already one of the first evergreens in the electric car segment.
The duty of fleet managers to keep speed in check Within the context of the increasingly important issue of driver safety and duty of care, road safety charity Brake has published a new report for fleet managers on driver speed. It is, Brake points out, the duty of fleet managers to ensure that their drivers keep speed down for these reasons, and to monitor driving speeds. To illustrate the significance of the issue, it has been estimated that an average reduction of only 1 km/h across all driving in Europe would result in a saving of over 2,000 lives each year.
Company car emissions decreasing
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EU-5 Fleet Markets in July 2013: less decrease, big differences
A study released by GE Capital looks into the CO2 emissions of company cars in Europe. It reveals that over the past four years they have dropped by just over 15%, now standing at an average of 128.8 grams per km, compared to 152 grams in 2008. The figure for all new cars registered in Europe in 2012 is calculated to be 132.4 grams. This would appear to indicate that fleet managers are more aware of lowering emissions than the public at large. In terms of individual countries, the ‘worst offender’ is Germany, whose average is 137 grams, while France comes out best with 122 grams.
According to a report published by DATAFORCE, new passenger car registrations in the EU-5 Fleet Markets declined by 0.7 per cent in July 2013. There were, however, fundamental differences between the individual countries. The range of growth rates varied between minus 19.8 per cent in Italy and plus 13.1 per cent in the UK. Skoda and Seat performed very well in such a difficult market environment, expanding their market shares in each of the five countries.
CO2 emissions of company cars in Europe have dropped by just over 15% over the past four years.
New passenger car registrations in the EU-5 Fleet Markets declined by 0.7 per cent in July 2013.
FLEET EUROPE # 66
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sCoPe i remarketing
Where do all the used cars go? Germany is by far the biggest exporter of used cars. Where these used cars will be exported to is a matter of price.
7,841,596 new cars have been sold in the European Union within the past eight months. This is the lowest number since the European automobile Manufacturers association started keeping track of this statistic. Nevertheless, the sheer number is still impressive. But what happens with all the used cars?
W
e can understand why people buy new cars; they are not only more luxurious and safer but, also, more environment-friendly. About the last point, however, you can have a long discussion. Is buying a new car actually beneficial for the environment? On the one hand the average fuel consumption improves, while on the other the energy and resource-intensive production process has to be taken into consideration as well. The cars that disappear from our streets either go for scrap, or they are exported to another country. Exact figures, though, are not available. And yet those statistics are of great interest, if you think of our efforts to have a high retention of cars in the used market. The figures that are available show that, within the European Union,
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Poland A small share of pre-owned cars is shipped to Africa. 10-14 year old cars are still attractive, e.g. for taxi drivers. Used car imports sometimes are not even roadworthy according to European standards. It’s not only the very capable and creative car mechanics but also the dry climate, which are the main factors that enable a long second life for the used Eurafrican cars. Back to Europe, where a lot of cross-border trading takes place. For example, Dutch leasing companies export up to 70% of the ex-lease cars. At the same time, Dutch companies import relatively recent models, preferably from Germany, that have not been sold in the Netherlands as new cars and are, therefore, not available on the Dutch used car market. This trend can be explained by the harsh tax regulations that make the purchase of bigger, slightly more powerful cars, unattractive. Consequently, even OEMs offer imported used cars through their authorized dealers. The leading used car importing countries, however, can be found in Central and Eastern Europe. Poland, especially, stands out as an importer, with more than 650,000 imports in 2012. As used car prices are determined by supply and demand, the strong demand from Poland has a positive effect on used car values for the models concerned. In other words: the supply of used cars, especially on the German market, is reduced due to Polish imports.
Danger So far, so good, but the forecaster’s job does not end here. Firstly, in 2013, Polish imports are split as follows: 49.1% of the Polish imports are over 10 years old, 43.8% are 4-10 year old, and the remaining 7.1% are 4 years old. For the used car market in the EU, it will be crucial to meet the future demand of the different export markets regarding the price. Secondly, the growing wealth in Central and Eastern European countries makes new cars more popular; consequently, the growing availability of young, domestic, used cars will put the imports under pressure. Thirdly, used cars that are exported to countries outside of the EU can cause trouble. As soon as one or two countries tighten their import regulations – like we have seen happen in Russia in the past – this will also have a noticeable effect of depressing prices. To sum up, export is currently an important sales channel to reduce the used car park in Western Europe. The uncertainties mentioned before may cause a decrease in the foreign demand for these cars. This again creates a risk for the remarketing of used cars in the future. Residual value and risk managers, therefore, should not rely on the assumption that the current status will remain constant in the future but, instead, develop different and innovative scenarios to cope with this risk. ■ Maarten Baljet BF Forecasts
Europe
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sCoPe i Taxation
EU car taxes in 2015
T
axes shape the market because tax differentials influence consumer behaviour. Scrappage incentives have clearly had their impact in speeding up, although temporarily, low emission car sales in numerous countries. Incentives for the introduction of electrified vehicles, full or (plug-in) hybrid, could do the same. Although, the price premium for those cars is clearly higher and, together with other perceived limitations like range, the pushing would require measures beyond the tax incentives. Norway is a best in class example of how a working combination of tax incentives (no import duties, no VAT) and non-financial incentives (usage of the bus-lane, free parking) has made EV’s very popular. In 2015 governments seem to shift further the incentives towards full EV’s and in some countries still, plug-in hybrids. Hybrids seem to loose in this area. Testing or introducing EV’s in your fleet brings tax advantages but these seem to fade away over time (like with hybrids). Starting early is the message. In a push for lower CO2 emissions, 20 (Western) Member States have already introduced a CO2-linked car taxation regulation (see the Fleet Europe Taxation Guide 2013 for an overview). This implies that a CO2 emission reduction program in the EU saves not only fuel but also car
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taxes and companies indeed react by acquiring lower CO2 emission cars. Since car taxes are income for governments, CO2 limits or bands for tax reductions will decrease as well. Anticipating these changes should be included in managing successfully savings resulting from CO2 emission reduction projects. Once more, standing still means regressing. Although the focus on CO2 emissions has pushed diesel technology, other propulsions are on the rise. Petrol engines have evolved substantially in the environmental area and hybridisation of cars offers a sustainable alternative to diesels, accused of being part of the particle problem many cities and countries in Western Europe struggle with. It is expected for 2015 that governments will further decrease, if any, the differences favouring diesel cars by equalising fuel and other relevant taxes. Adding the extra cost of technology for diesel cars to meet EURO 6 requirements pretty soon in this equation, this could be a (hard) hit for the success of diesel cars. We do not expect many changes in Eastern Europe in 2015. Car taxes are usually lower and based on engine power, cc, etc. Latvia, Greece and Hungary do have some taxes linked with CO2 emissions or the environmental performance of the cars. We
do not see any signs of many changes in these areas. More than ever, understanding these differences is crucial to understand the differences in the EU fleet market. Understanding the dynamics is crucial for strategic fleet decisions. Taking into account car taxes in the decision-making process will help position cars in the correct car policy segment. It will also enable to benchmark cars properly including direct and indirect tax effects, it will help decrease (temporarily) cost, choose the right technology (EV’s, diesel, petrol, hybrids, etc.)… now and in the ever changing near future. Who said working in fleet was not exciting? ■ Bart Vanham Specialist International car taxation
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In the EU there are as many different car taxation systems as Member States. The introduction of new propulsions by OEM’s in a continuing effort to reduce pollutants in the exhaust of the car like CO2 emissions, NOX, particles, etc., and the policy work to assist market introductions of these by governments using tax stimuli are increasing the complexity of the car taxation systems in Europe and beyond. Unfortunately the need to include these taxes in any strategic decision, fleet related service and/or product comparison is higher than ever.
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