Fleet LatAm °4 (English)

Nexus Communication - Fleet LatAm #4 - Periodic magazine - September 2019 - Deposit Office Liege X

Protect your employees

Safety policy & Security approaches

Creating efficiency through Telematics

04

SEPTEMBER 2019

This magazine is distributed in Latin America, Europe and United States.

Safety is paramount Global fleet managers tell us that no less than 70% of their accidents occur in Latin America.

This only confirms the unfortunately high rate of both road accidents and road deaths in the region. Its main causes are distracted driving, road hazards and bad infrastructure. So: good safety management is no luxury for fleet managers in Latin America!

“Safety is paramount – not just in this issue of Fleet LatAm – but also in particular for your fleet, your drivers, your employees.”

Indeed, good safety management, which focuses on information and prevention, driver training and vehicle control, is an indispensable pillar of any comprehensive fleet strategy. It will lead to better driver behaviour, less incidents and accidents, increased employee satisfaction and greater cost efficiency. On that last point: just think of the losses due to collisions with non-insured drivers, who are numerous in Latin America.

How can fleet managers devise a safety strategy that truly optimises driver behaviour?

Technology is at least part of the answer. Increasingly, cars can be equipped with ADAS and other safety features, which will enhance driver (and vehicle) safety – if used correctly.

Telematics can have many applications: combating unsafe driver behaviour, lowering fuel consumption, recovering stolen vehicles. Yes: next to safety, security also is a topic with special relevance for Latin America.

As you read your way through this 4th edition of your Fleet LatAm magazine, the importance of both Safety and Security for your fleet management strategy will become apparent, as will the various ways you can implement both – including via telematics. Not coincidentally, Safety and Telematics are two of the four central themes for the 1st Fleet LatAm Conference and Training, 23-25 September in Mexico City, titled ‘Internationalisation of Fleet, Mobility and Safety Priorities.’

Happy reading… and stay safe out there!

Caroline Thonnon, Publisher

COLOPHON EDITORS Daniel Bland – Editor LATAM dbland@nexuscommunication.be T.: +55 (11)98542 - 2169 Steven Schoefs – Chief Editor sschoefs@nexuscommunication.be Céline Gilson – Project Coordinator cgilson@nexuscommunication.be Benjamin Uyttebroeck – Journalist buyttebroeck@nexuscommunication.be Contributors: Dieter Quartier, Fien Van den Steen

Experts: Pascal Serres Expert LATAM pserres@nexuscommunication.be Jose Luis Criado – Mobility Consultants, Martin Singla – Frost & Sullivan, Sérgio Jábali - Golsat Layout: STR8!

Pictures: ©Shutterstock, ©Global Fleet SALES & MARKETING Daniel Savigny International Key Account Manager LATAM dsavigny@nexuscommunication.be

David Baudewyens – International Key Account Manager dbaudeweyns@nexuscommunication.be Elke Leën – International Key Account Manager eleen@nexuscommunication.be Vincent Degives – Marketing Manager vdegives@nexuscommunication.be Virginie Emonts – Sales and Marketing Assistant vemonts@nexuscommunication.be Benoit Delisse – Sales and Marketing Assistant bdelisse@nexuscommunnication.be Aline Verpoorten – Management Assistant averpoorten@nexuscommunication.be

FLEET LATAM www.globalfleet.com/regions/latin-america www.fleetlatam.com Fleet LatAm @Fleet_LatAm FleetLatAm FLEET LATAM is published by Nexus Communication SA, Parc Artisanal 11-13, 4671 Barchon (Belgium), T. : +32 4 387 87 71 – Fax : +32 4 387 90 63 contact@nexuscommunication.be Fleet LatAm is registered and copyrighted trademark. Reproduction rights (texts, advertisements, pictures) reserved for all countries. Received documents will not be returned. By submitting them, the author implicitly authorizes their publication.

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

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3

CONTENT

In this issue CONTEXT

CONNECTED

High time for Latin America to steer into Road Safety

6

Building a safe LCV fleet Connected features for more safety

TELEMATICS

Your ride or your life – women and safety

Telematics to fight congestion and increase safety A sustainable way to fleet management effectiveness Telematics regulation in Latin America The (autonomous) future of car sharing Connect to make EVs work

11 14 18 20 21

in Latin American transport

FLEET MANAGEMENT IBM Procurement Services: “Driving value across Latin America”

42

Characteristics of growth in Latin America

43 45 46 48 50

Servier: “Mobility Culture, a need for change”

SAFETY Latin NCAP: local assessment for local cars Safety as core in the mobility policy Driving training, a must need Technical and digital innovation to enhance safety Facing vehicle theft in Latin America Underinsurance in Latin America

22 25 28 30 32 34

36 38 40

Diversey: “Working hand-in-hand with OEMs” First fleet event for Latin America Johnson & Johnson: “Safety is non-negociable”

WIKIFLEET Maintaining safe fleets in Chile

51

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CONTEXT

High time for Latin America to steer into Road Safety Latin America has a high rate of road accidents and road fatalities. Too high. For corporate fleet managers it’s a priority to address and integrate safety management as part of vehicle fleet management.

Martin Singla, Mobility Industry Analyst, Frost & Sullivan

L

ight vehicle sales have grown exponentially across most Latin American markets in past decades. This, in addition to the fact that the average life cycle of cars in Latin America is much longer than in the US or European Union, has created a serious challenge for local economies to manage the ever-expanding and aging vehicle park. Meanwhile, the development and maintenance of the corresponding road and highway infrastructure have lagged in sustaining the growing private transport demand,

although many local governments have prioritised this modality over mass public transit. Moreover, transport administrators face the challenge of correcting a reckless driving culture.

However, poor traffic law enforcement is typical in the region, along with lax requirements for new driver registrations and registration renewal.

Lastly, homologation standards for vehicle commercialisation across Latin American countries (if existing) have systematically delayed the mandatory implementation of long-existing safety

technologies, as shown in the table below LATAM faces high rates of road fatalities and auto theft These unplanned processes of unequal and unsustainable growth are some of the reasons behind the high rates of urban and inter-urban road accidents in the region. As shown in Figure 1, Brazil and Argentina ranked highest in road fatalities per capita in 2018 due to the saturation of public infrastructure in relation to growing vehicle park and

Driving Safety & Homologation Standards, Latin America, 2019 Chile

Argentina

Brazil

Mexico

Colombia

Peru

Mandatory safety - Homologation standards Airbags

yes

yes

yes

yes

yes

no

ABS

expected 2020

yes

yes

yes

yes

no

ESC

expected 2021

expected 2020

expected 2020

expected 2020

no

no

none

none

expected to be driven by Rota 2030 incentives

none

none

none

all passengers

all passengers

front only

all passengers

all passengers no enforcement

zero-tolerance

limited law limited enforce.

strict law limited enforce.

limited law limited enforce.

80 km/h

20-70 km/h

80 km/h

60 km/h

ADAS features

Driving regulations and enforcement Seatbelt required

all passengers

Drink & driving

limited law strict enforcement

Urban speed limits

60 km/h

limited law medium enforce.

60 km/h

Source: World Health Organisation and Frost & Sullivan

6 #04 - SEPTEMBER 2019

Distracted and hazardous driving is a key issue in Latin America. The answer is to develop a safety management programme focusing on education, prevention and the introduction of safety technologies.

Brazil

20

Agentina

15

Colombia Mexico USA Peru

10

Chile UK

5

0 0

20

40

60

80

100

120

Source: Frost & Sullivan based on WHO and local national reports

These statistics show an enormous annual regularity. Local governments have identified and addressed these complex problems and deployed policies and measures to stop these growing road morbidity trends. In Brazil, Plan “Rota 2030� has set a series of targets for implementation of safety and security technologies with the aim of improving regionally manufactured product competitiveness and setting minimum technology standards.

Figure 1: Road Fatalities by Country, 2018

Road Fatalities by Population (over 100,000 inhabitants)

hazardous driving. In the case of Peru and Colombia, motorcycle-related accidents have a stronger incidence; deterioration of infrastructure is also a crucial component. In many countries, methodologies for measurement of road fatalities are not precise enough, and reported figures may underestimate the actual problem.

140

Road fatalities per 100,000 vehicles in operation (motorcycles not accounted)

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7

CONTEXT

Another crucial challenge for growing automotive markets is how to deal with vehicle robberies and cargo safety in the case of transport and logistics. In the past decade, crimes associated with auto theft have systematically increased in Latin America. Brazil has the highest rate, as seen in Figure 2.

Crime rates in Latin America are tightly linked to multiple socioeconomic problems that are structural in the region. Therefore, providing real solutions to these problems requires attacking those structural conditions behind auto theft and violence. The same issues arise with education and civility in driving culture across the region, which impacts road accident rates. However, as the industry gradually shifts toward the provision of services and disruptive technologies, new solutions for safety and security are being introduced to complement policymaking. Nonetheless, we must stress that innovative market solutions are palliatives but not the final solution itself, in which the State and the entire civil society must play an active role.

Technologies like ADAS and telematics will aid the road safety problem Multiple market players are venturing into new safety and security solutions for the Latin American market. Some OEMs have already started adopting across their entire vehicle portfolio basic safety technologies, such as electronic stability control, traction control systems, cruise control and hill launch assistance, which are becoming “musthave� features. In addition, most OEMs have introduced crucial advanced driver assistance system (ADAS) features and semi-autonomous driving features, mostly in the premium upper-trim, luxury segments and SUVs in the Latin American market. Some of these features include autonomous emer-

8 #04 - SEPTEMBER 2019

Vehicle Robberies per 100,000 inhabitants

300

260.9

250

200 150 113.0 82.1

100

78.7

71.2

53.7

50

0 Brazil

Agentina

Colombia

gency braking, lane-keep and lanechange assistance, advanced parking assistance, driver drowsiness detection, adaptive cruise control and even road sign recognition systems. These are milestones on the road toward automation in the region, with hopes of eventually preventing road accidents and fatalities.

Another important trend transforming the regional automotive market, driven specifically by safety and security challenges, is the growing importance of connected services and fleet management operators. Although few OEMs have launched their own brand of connected service solutions in the region, by 2023 we will see most manufacturers offering some kind of digitally connected platform.

Nonetheless, there are dozens of independent companies all across the region offering customised platforms for specific fleet management necessities (needs differ across different industries, such as logistics, food & beverage, healthcare, education, public transit, corporate fleets, agriculture, mining, etc.). These technologies offer remote vehicle prognostics, maintenance scheduling, concierge

Peru

Mexico

Source: Frost & Sullivan based on WHO and local national reports

Figure 2: Auto Thefts by Country, 2018

Chile

services, navigation, monitoring of driving patterns, consumption and efficiency, among others. Risk management is the crucial concept behind these applications and it also intersects with insurance companies’ interests. In a region with accentuated risks for individual drivers and fleet owners, as mentioned above, the implementation of smart solutions and vehicle data monetisation is imperative.

Road safety is an urgent matter that must be addressed in local agendas in Latin America. The expansion of the automotive market in past decades has only accentuated this need. Stricter and more advanced regulations are being discussed and enforced across the region to improve driving civility and vehicle homologation as a pillar for economic development and enhancement of local product competitiveness.

From the private sector, new technologies are being introduced, such as ADAS features, telematics and fleet management platforms. These are crucial complements to policymaking on the road toward automation, smart fleet solutions and optimal road safety management.

8

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A change in behaviour Volvo Cars’ success in reducing the number of people killed/seriously injured in their new cars is based on their approach to understanding car accidents. See how Volvo Cars plans to further improve car safety through better driving behaviour.

The design of safety systems that help to avoid or mitigate the potential consequences of collisions & single vehicle accidents have played a great part in this success, while also helping to reduce associated costs (increased insurance premiums, workshop fees & time lost) for fleet managers.

will also help your drivers understand when they need to take a break. The cameras & sensors will allow the car to intervene if a clearly intoxicated or distracted driver does not respond to warning signals & is risking an accident involving serious injury or death.

Limiting speed To support drivers in their everyday car experience, Volvo Cars has committed to the introduction of a of 180 kph (112 mph) speed limit in all of its new cars from 2020. Fleet Managers welcome this move as it will help to reduce high-speed accidents & also help to reduce fuel consumption & irresponsible driving behaviour.

Anonymised data Another great leap forward in road safety will come from the recent announcement that Volvo Cars is joining forces with other car makers in a pilot project, which will share traffic safety data. Volvo Cars will share data around slippery road conditions & the use of hazard warning lights.

The key to safer driving In addition, Volvo Cars is introducing a Care Key, designed to allow Fleet Managers the option of setting their fleet’s top speed lower than 180 kph (112 mph), thereby further improving safety. “We believe that a carmaker has a responsibility to help improve traffic safety,” said Håkan Samuelsson, President & CEO of Volvo Cars. “Our recently announced speed limit fits that thinking & the Care Key is another example.”

Advanced in-car technology Volvo Cars has also committed to deploying in-car cameras & sensors that can act as an early warning indicator of distracted driving, drowsiness, or driving under the influence of alcohol or drugs. Apart from helping to avoid accidents the technology

“We think this type of anonymised data sharing should be done for free, for the greater good & to the wider benefit of society. It saves lives, time & taxpayer money,” Mr. Samuelsson added. “I call on other car makers & governments to work with us on realising this type of data sharing as widely as possible.”

These are great examples of how Volvo Cars can help to keep your personnel safe & protect your fleet investments.

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TELEMATICS

Telematics to fight congestion and increase safety The Latin American telematics market is incredibly heterogeneous, with many local players competing with big global companies. Remarkably, safety and traffic congestion are the major issues they are addressing.

Fien Van den Steen

T

he Latin American telematics market consists of both local and international players. Yet, the main focus of all companies is safety, followed by new mobility trends in order to increase the liveability and decrease traffic congestion in the cities, such as shared mobility modes, electrification, data monitoring and traffic control.

When it comes to data management, Waze for instance has partnerships with various cities in the region to share traffic information and help authorities improve mobility management, while Google Transit offers real-time information on public transportation in various cities as well.

Furthermore, many telematics solutions are focused on reducing traffic congestion – Latin America is home to four of the ten most congested cities on the planet, according to the TomTom Traffic Index. That is unlikely to change soon if you consider that the Latin American car market is growing still.

The increasing number of cars on the road results not only in traffic congestion issues and the loss of time and money that come with it, but in precarious road safety as well, reflected by the high number of traffic-related deaths. Let’s not forget the lethality of air pollution either.

Logically, telematics solutions focusing on road safety, traffic congestion, and a more sustainable transport driven by electrification, shared mobility and public or multimodal mobility are obviously gaining ground.

1. SASCAR

A diverse market In Latin America, the top 4 companies with the highest number of vehicles connected in Brazil (main market) or Latin America as a whole, are

R$ 500 Million revenue

2. AUTOTRACK 1. ITURAN

R$ 260 Million

(retail and insurance as main market):

revenue approximately

510,000 connections 3. CEABS

2. CEABS

R$ 200 Million

(insurance and car rental):

approximately

320,000 connections 4. Other companies in the range of

3. SASCAR (trucks):

260,000 connections

+ R$ 100 million include Omnilink (R$ 140 million), Jabursat and Ituran

4 POSITRON (retail and corporate trucks)

170,000 connections Yet, when it comes to revenue, it is interesting to see how especially the telematics companies that are involved with the truck business are scoring the highest ranks.

5. POINTER

50,000 vehicles in Brazil, 84,000 vehicles in Latam

has

and Revenue close to

R$ 100 million in Latam Exchange rate US$ 1.00 = R$ 3.9

Gurtam, where IoT and telematics meet Telematics can serve more than commercial vehicles alone. Belarusian telematics and fleet management solutions company Gurtam uses IoT and telematics in various domains, from healthcare to transportation. In Colombia they use their smart solutions to optimise shared mobility, while in Mexico the company uses telematics and IoT to address fuel and cargo thefts.

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11

TELEMATICS

These players le Pointer Pointer provides fleet management features to optimise safety, productivity, logistics and others, while the focus on connected cars involves telematics and vehicle connectivity services. Besides safety, Pointer provides security features as well to cope with the big issue of vehicle theft. Pointer is active in Brazil, Mexico and Argentina, with further countries following later.

CEABS Serviços S.A. CEABS provides monitoring solutions as well as security, tracking and mobility services for vehicles – and for people. The Brazilian insurance company uses IoT technology to monitor cars and trucks.

It has more than 270,000 customers and is part of the Europe Assistance group.

Golsat The Gofleet platform aims to optimise fleet management based on accurate data and real-time information with a main focus on profit and safety. It is customisable and allows fleet managers to organise and analyse information in a smart way. One of the main focuses is speed tracking to enhance driver safety. In addition, the platform integrates fuel cards to manage and monitor fuel usage.

Ituran Ituran claims to be the largest OEM telematics provider in Latin America, with Brazil, Argentina, Mexico, Ecuador, and Colombia among its Latin American market countries. Globally, Ituran prides itself on having 1.7 million subscribers for its location-based services. Key features are Stolen Vehicle Recovery, fleet management as well as mobile asset location, management and control services for vehicles, insurance industry and car manufacturers.

MiX Telematics MiX Telematics provides SaaS solutions to more than 750,000 subscribers in over 120 countries.

Their telematics solutions focus on efficiency, safety, compliance and security. While Brazil accounts for 70% of the current fleet, MiX is expanding its focus towards Chile, Uruguay, Argentina, Ecuador, Peru and Colombia.

12 #04 - SEPTEMBER 2019

rs lead the pack GEOTAB This Canada-based international player specialises in effective routing based on real-time GPS and speed data, active traffic information and obstacle alerts. It allows fleet managers to compare and analyse multiple routes – a big plus in the over-congested Latin American cities. Geotab’s telematics also helps you keep track of the vehicle’s health in order to prevent unexpected failures. In-cab verbal coaching in real-time Spanish helps improve driver safety.

Galooli OTO GalooliOTO focuses on maximising fleet and workforce performance. Their end-to-end solutions offer a smart combination of telematics and an AI-based platform. Among its features are optimisation of fuel efficiency, monitoring of driver behaviour in order to detect hazardous driving and preventive maintenance, all brought together in an intuitive dashboard to help the fleet manager identify and isolate potential areas of overspending.

Teletrac Navman Teletrac Navman focuses on driver safety by monitoring fatigue for instance, as well as vehicle tracking in order to maximise fleet productivity and GPS tracking in order to increase fleet revenues, while decreasing fleet costs. Teletrac Navman has 25 years of experience in telematics, resulting in 40,000 customers globally.

Sascar Sascar was Brazil’s leading fleet management and freight security company, before it was acquired

by Michelin in 2014. The acquisition gave Michelin an opening to expand its operations in the fleet management business in Latin America and more in particular its truck tyre business in Brazil. In return, Sascar gained access to major customers in South America through Michelin’s distribution network.

Telematics can save lives

Safety First

Latin America has huge road safety issues with over 115,000 road fatalities a year. Telematics can provide various safety features, reducing this number significantly, such as: • Monitoring speed • Seat belt use when occupancy is detected • Risk and safety reports resulting in driver ratings • In-vehicle driver coaching to warn for distraction or fatigue

The Latin American commercial vehicle telematics market is expected to generate $740 million by 2021, with a market penetration rate of 27.9% by that year, according to research of Reportlinker in Brazil, Mexico, Argentina, Chile, Peru and Colombia.

In addition, while safety remains the main domain, other areas related to the reduction of traffic congestion, such as electrification of fleet, shared fleets and fleet optimisation are gaining ground.

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13

TELEMATICS

A sustainable way to fleet management effectiveness Latin American fleet managers are improving and professionalising the region’s transportation sector. This professional purpose becomes clearer when facing the scenario we have in traffic nowadays. But how to lead this journey? Let us look at a structured, promising and rewarding path based on relevant information and integrated technologies.

Sérgio Jábali, Head of Product Innovation @ GolSat

T

here is a corporate ecosystem composed of the fleet company, telematics solution, fuelling card suppliers, rental companies, in short, a series of organisations that make up and interact in the fleet management ecosystem. The role of the telematics solution company is not only to obtain vehicle data, but mainly to apply its intelligence and turn it into relevant information for decision making. Much broader than tracking, which is more related to recovery in the event of theft, telematics is the tip of the iceberg of the fleet manager. It helps him change the world for the better.

The needs of Maslow In order to explain this transformation, I will make a projection of Maslow’s pyramid into the Fleet Manager Pyramid of Needs Hierarchy.

or even if there would be hunting, consequently food. Then begins to appear the Social and Belonging needs.

This translates into being part of a team, much more than just having a job.

Belonging to a family, or a group of people with common interests. And after belonging, you want to be recognised, this is the Esteem need: I want to be a good father/mother, also recognised as a good fleet manager.

Finally, there is the Self-actualisation level, when you are aware of your purpose and can align thought, verb and action to walk your path, effectively.

Physiological and safety needs are considered Primary. Belonging, esteem

and self-actualisation are Secondary.

Primary and secondary needs are different. When you do not have a primary need met, the problem is serious, otherwise you won’t even notice that these needs exist. For example, let’s think about a home’s bathroom plumbing: if it stops working, we can’t take a bath (physiological), receive friends at home (social, belonging) etc. But if it’s all working, you don’t even notice.

Secondary needs behave in the opposite way: when you don’t have them, you don’t miss them. But when you conquer them, a world of possibilities opens up and you become very motivated,

Maslow’s hierarchy of needs SECONDARY NEEDS

Maslow’s pyramid is composed of 5 levels of needs, in order: Physiological (at the base), Safety, Belonging, Esteem and Self-Actualisation (at the top). To advance at each level, it is important first to consolidate the previous one.

For example, eating and sleeping are Physiological needs. This is the first level we have to solve and then we are able to deal better with the others.

Afterwards, Security and Safety get into play: we want to have a place to sleep every day or still a job that guarantees a monthly income. Imagine the nomadic man: he didn’t know where to sleep,

self-actualisation self-esteem love and belonging safety needs phsysiological needs PRIMARY NEEDS

14 #04 - SEPTEMBER 2019

Sérgio Jábali, Head of Product Innovation at GolSat

capable of transforming the world, you enter into a state I call “highenergy”. It is necessary to consolidate the primary levels to then solve the secondary needs and reach this state of mind.

The Fleet Manager pyramid So how to effectively manage the fleet?

It is necessary to map and diagnose it and this is done on the first level of the pyramid, the Telematics or Telemetry level. For small fleets, it is possible to collect odometer and fuel level manually in a spot every day, for example. However, as the fleet grows, you’ll need technology to help. That physical fence that existed around this spot evolved into an electronic fence, which is telemetry. It is possible to know whether vehicles are exceeding the monthly mileage contracted with the rental company or not. In case of a self-owned fleet, its total value is proportional to the mileage of each vehicle, a key element in determining each asset selling price. But what justifies telematics as the first level of the pyramid? According to W. Edwards Deming, American consultant who taught Quality to top Japanese executives, “you can’t manage what you don’t measure.” Translating this to the fleet manager: you can’t manage your

Fleet Manager’s needs

social telematics optimisation integration fleet policy & management telematics

fleet if you don’t have telematics. It is the foundation of the fleet manager’s pyramid.

But telematics doesn’t solve it all. It is necessary to have defined rules and communicate to drivers and others involved in the organisation through the fleet policy. This is the second level, called Fleet Policy & Management. For example, telemetry will reveal those drivers who are breaking the policy speed limit and the fleet manager can take a targeted action. When elaborating a fleet policy, a prior diagnosis is necessary, so the importance of starting with telematics in the first place.

Telematics and Fleet Policy & Management are primary needs: you need them well consolidated before enjoying the benefits from the secondary ones.

Once telematics and fleet policy are in place, you enter the third level, Integration. Now the fleet manager does two main tasks: establishing business KPIs and integrating new technologies that make sense with those indicators. There is a case of an organisation that had many speeding offenses when deploying telemetry.

It started sending out an educational e-mail for each driver showing all their violations every day. This simple integration with e-mail, a dominated and cheap technology, resulted in a reduction of 78% on speeding. This in turn resulted in significant savings in fuel.

Possibilities for integration are limitless.

Imagine your cost per mile is 20% above the target: you have to investigate the causes, and here comes the integration between telematics and the fuel card supplier. When crossing data it is possible to verify that the fuelling happened at a certain station (fuel card),

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15

TELEMATICS

but the vehicle wasn’t there (telemetry), indicating potential fraud. Its elimination will provide savings and help with maintaining the fleet operation within the goal. In short, at the level of Integration, adjustments are made on the previous levels geared specifically to your business, to your scenario.

Social telematics After optimisation, is there anything else to do? Yes! At the fifth level, telemetry starts to work for the benefit of the driver and society. It is the Social Telematics level. But to speak of it, we need to briefly recall Frank Bird’s pyramid.

With KPIs and integrations well established, periodic analysis and training are started: it is the fourth level, Optimisation. Here, technology only indicates the points that should be addressed, and after making decisions and educating drivers, the KPIs will show the results. This allows us to conclude whether the actions taken were assertive, effective in solving the fleet problems. For example, in fuel management, an economic driving course can be key to achieve the cost per mile goal, and ROI can be measured

by KPIs.

Frank Bird studied accidents for 10 years with 10,000 employees from the point of view of indemnity losses.

Then Dupont applied a risk prevention perspective to the model. The conclusion is that for every fatality in a traffic accident, there were 30 thousand bad behaviours before. Misbehaviour can be speeding, which creates an unforeseen incident (e.g. sudden braking), which may not occur in time, cause an accident, possibly fatal.

Telemetry will reveal all bad behaviors and the fleet manager can act preventively, reducing the number of collisions and their consequences.

Frank Bird pyramid DUPONT EVOLUTION

RESULT

1

fatality

30

serious injuries

300

minor injuries

3.000

near misses

30.000

unsafe actions BEHAVIOUR

16 #04 - SEPTEMBER 2019

At the Social Telematics level, the company delivers its drivers a culture of safety and value to life. That’s the fleet manager accomplishing his purpose.

The focus should be on a driver’s experience. Good behaviour rankings can reward the best drivers. They stop seeing the manager as a “big brother” and begin to see telemetry as something playful: it’s the “good behaviour game”.

When you act on the driver’s experience, you reach the best level of optimisation, and he also becomes a transformation agent.

Traversing this five-level path is worth it.

Preventive actions begin to impact global indicators as traffic collisions, number of deaths, victims with permanent sequelae, public money spent to recover damages caused, occupancy in hospital beds etc. We are at the end of the United Nations Road Safety Action Decade, in which governments around the world are committed to taking new measures to prevent traffic accidents, which kill around 1.3 million people a year. With this tool, the fleet manager is able to follow his purpose as a protagonist, transforming the world into a significantly better place.

Hence the relevance of this professional, and its rewarding potential. Have a good self-actualisation, fleet manager!

About the author’s company GolSat is a technology company with an innovative telematics solution for light duty fleets. It operates full service in Brazil with a unique safety and cost saving approach.

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Telematics 101: What you need to know Author: Mili Muniz, Bilingual Marketing Coordinator, Geotab

Connect to your business and the world around you. For businesses, leveraging the Internet of Things (IoT) is paramount for moving into the next decade and beyond. As our cities and businesses expand in size and requirements, so must our ways of tackling these issues with big data and connected technologies.

What is telematics?

Simply put, telematics is a method of connecting vehicles and other assets to the internet. Telematics consists of three interdependent breakthroughs of modern technology: Internet, GPS and machine-to-machine communication (M2M).

All sizes of fleets, from small businesses to large corporations who operate vehicles or other assets, can benefit from telematics. Fleets can monitor a vast amount of vehicle metrics via a telematics device and other connected hardware or sensors, for example with GPS module variables such as position, speed, idling, trip distance and time. Also, by reading the OBDII port, other variables such as seat belt usage, fuel consumption, vehicle faults, battery voltage and other engine data can be read, according to the vehicle’s computer capabilities. In doing so, telematics can help businesses increase productivity and fuel efficiency, lower operational costs, improve vehicle health, strengthen compliance to regulatory changes and improve customer service. Last but not least, the accelerometer sensor can deliver information on variables such as harsh braking and accelerating, both key to understanding a driver’s performance.

Moving beyond the customer experience, telematics can improve individual safety and serve society at large. Telematics is a core part of the collision-detection technology used to alert drivers and avoid incidents. Additionally, vehicle data can be used to identify and study dangerous intersections and help to reduce hazards on the road. Engine and emissions monitoring uses telematics to keep vehicles in top shape and minimize wasteful behaviors.

Much more than just GPS Telematics data is incredibly valuable for identifying trends and areas of improvement. What is especially unique about Geotab’s open platform for telematics is the great variety of use cases. Open platform means easy to use, collaboration and innovation. Geotab’s platform gives the user full control over their data and delivers additional expandability and customization options via the Software Development Kit (SDK) and patented Input-Output Expander (IOX).

The Geotab GO device is able to integrate with third-party software Add-Ins, mobile apps, and hardware Add-Ons with the IOX. A great example of an integrated solution is GO TALK which delivers real-time, in-cab verbal feedback to drivers based on adjustable conditions and customized text-tospeech messages. Other uses include driver alert buttons, vehicle cameras and Bluetooth beacons. The Geotab Marketplace is filled with custom solutions for nearly every business need.

Visit Geotab.com for more information:

TELEMATICS

Telematics regulation in Latin America Using telematics in your vehicle fleet has been proven to improve safety and reduce costs, but it is the lack of standardised and clear regulations which is hindering its growth in Latin America.

Daniel Bland

Fleet managers name accident reduction as the number one benefit of telematics (pictured: accident in Rio de Janeiro).

T

oday, telematics is quite common in the long-haul trucking industry, but it is also used for fleets with light commercial vehicles (LCV), other work-tool vehicles, and passenger cars. It is much more common in larger fleets (50 or more vehicles), and it is rare to see telematics in fleets of less than 10 cars.

Besides improving safety and reducing operating costs, telematics enhances security, streamlines compliance, increases efficiency, and can even provide entertainment.

Some of the key tasks it carries out are improving bad driving habits, locating cars when lost or stolen, and referring drivers or fleet managers to the best maintenance offices available.

According to a study by international accounting firm and business consultancy BDO, the main benefits of telematics seen by fleet managers are: less accidents (63%), better driver behaviour management (41%), better vehicle performance and maintenance management (32%), better driver productivity and efficiency (32%), improved vehicle security (29%), and better accident information (20%).

18 #04 - SEPTEMBER 2019

In recent years, telematics companies have been sprouting up around the world, integrating their services with automakers, vehicle leasing companies, tyre manufacturers, and more.

While these companies certainly have the knack to collecting vast amounts of data, one of the questions on the minds of many fleet managers today is how these data can be used to best fit them, something that can be tackled by carrying out a detailed assessment of their fleet profile ahead of time.

Another issue of concern is the unclear regulation of telematics usage and the data sharing that comes with it. Just like any new technology on the rise, clear-cut legislation needs to be developed and this is even more so for Latin America.

Take e-scooter sharing for instance. This new urban mobility alternative took off in many cities, but legislation in many cases was not firmly defined until after they became very popular, thus creating problems.

Meanwhile, according to BDO’s Mexico risk consultant director Ramses Inzunza, the situation is no less complicated in Mexico.

“There is no single regulation on telematics in the country, but the subject matter is referenced under several laws,” Mr Inzunza told Fleet LatAm, citing laws related to electronic commerce, personal data protection, and more.

However, BDO does see telematics growing in Mexico and feels that it has great potential in terms of logistics and transportation infrastructure. Money can be saved by using telematics and it is unthinkable that some companies are not taking advantage of this, Mr Inzunza says.

Ricardo Bacellar, relationship director, KPMG Brazil

Ramses Inzunza, risk consultant director, BDO Mexico

Lack of legislation In Brazil, one of the first things the federal government needs to formalise is legislation on privacy, according to Ricardo Bacellar who is the country’s relationship director for the automotive industry at international consultancy firm KPMG.

As for telematics in Argentina, Latin America’s third largest vehicle fleet, it is common in the trucking industry, where they have adopted practically all features available. Telematics is also available for light commercial vehicle fleets, but most of the market is yet to embrace the full potential of the technology.

As vehicle recovery is a sought-after feature in the country, some insurance companies request that all vehicles worth a predefined amount must be fitted with vehicle recovery devices.

“The federal government is currently working on its national data protection law LGPD, and a deadline of August 2020 has been set,” Mr Bacellar told Fleet LatAm.

The challenge Considering social and cultural differences as well as economic disparities in Latin America, it is very difficult to harmonise data protection and other telematics related legislation throughout the region.

It addresses issues such as companies needing to have formal approval from consumers and collaborators regarding the disclosing of data, something that is quite complex and difficult to implement for large companies and, in turn, a large country like Brazil.

Even creating a nationwide law in a country like Brazil is difficult. What is good for São Paulo may not be good for a capital city in the North or North-East of the country. The answer for now is state or even municipal legislation, much like what is happening with the e-scooter sharing industry.

“Considering the size of Brazil, this is a huge challenge, especially since the new legislation will pertain to data for all consumers and not only for the vehicle fleet and logistics industries,” said the executive, adding that much more preparing is needed from companies.

“Considering the economic force in the country, if it’s not happening in Brazil, it is unlikely to be happening in other countries in Latin America,” the KPMG executive said.

According to a local study jointly prepared by Netbr and Sailpoint, approximately 69% of companies in the country are not adequately prepared.

As a final note to fleet and logistics managers, pay close attention to technology. Keep an eye on the start-ups and their new ideas. We are increasingly depending on technology these days and if you don’t take advantage of the new innovations, you will get run over.

INSPIRING FLEET & MOBILITY MANAGERS IN LATIN AMERICA WWW.FLEETLATAM.COM

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TELEMATICS

The (autonomous) future of car sharing Shared mobility is on the rise, although the mobility strategy is not new at all, the used technologies are.

Telematics and connectivity features are taking car sharing to the next level, even until autonomous.

Fien van den Steen

C

ar sharing tends to tackle two problems: congestion and emissions. Moreover, if used well, shared mobility can reduce operating costs and increase mobility efficiency. Yet, specific telematics and connectivity features are needed to optimise these benefits.

Optimised vehicle-usage Mark Thomas, VP of Marketing and Alliances, Ridecell, explains how telematics can optimise the vehicleusage rate: “Using a modern carsharing software platform, vehicles can be scheduled ahead of time so that users aren’t incentivised to check them out long before they are needed just to guarantee they have a vehicle.

Additionally, there’s no need for a person to be present to hand out keys when the entire solution can be organised from a mobile app. Finally, the app validates driving licences and credit cards, and can make sure that the drivers have valid credentials.

Additionally, with the credit cards on file for the users, it’s possible to open up the fleet for private errands which the driver pays for rather than just using the vehicles for official purposes only.”

Optimised connectivity In addition, telematics will improve car sharing experiences in the future as well by new features, explains Mark Thomas.

“Telematics will have the ability to check higher levels of ride completion. For instance, not only can the car check if the door is left open or the car is still running after ending a ride, in the future, it will be able to check if the

20 #04 - SEPTEMBER 2019

Mobile apps do away with the need of handing over physical keys for shared cars.

windows are down, trunk is open and if the person left any items in the vehicle.”

Yet, the increased level of telematics will require an increased level of connectivity as well, warns Mark Thomas.

“For car sharing, the goal is to allow users complete access to the vehicle without needing keys. To do that, the car sharing telematics module should not only have a 4G/LTE connection, it needs connectivity for when the internet is not working. BTLE and NFC both offer connections that work in dead zones and parking garages.”

Autonomous future Taking connectivity and telematics a step further brings us to autonomous

cars, which is the missing link according to Mark Thomas. “Future car sharing companies will be the first companies to adopt autonomous in their fleets.

Automating things such as having the vehicle drive itself to the charging station and reposition itself to where the demand will be, are two operations that today are frequently paid operations by the fleet operator.”

Hence, while telematics is renewing the car sharing business, the future promises even increased efficiency, and user-experience for both the rider and the fleet owner.

TELEMATICS

Connect to make EVs work Whether you have decarbonisation goals or just want to stay mobile in low-emission zones, data can help you select the right drivers, manage your fleet and determine the right infrastructure.

Dieter Quartier

A

lthough the Latin American EV market accounted for less than 1% of global EV sales last year, it is starting to grow thanks to a handful of incentives and targets, according to research from Bloomberg New Energy Finance (BNEF). Mainly megacities with dramatic air pollution and congestion issues, such as Mexico City, are pushing drivers towards zero-emission vehicles.

However, EVs are not for everyone, neither financially nor practically.

Making them work is a matter of careful driver analysis, charging infrastructure and fleet management. You can even turn EVs into money-makers using V2G. That’s where data and connectivity come in.

1

Making EVs work is a matter of careful driver analysis, charging infrastructure and fleet management.

2

3

4

5

Driver analysis

Infrastructure provision

Charging management

Remote fleet management

Vehicle-to-grid (V2G)

Electrification starts with selecting the right drivers depending on yearly mileage, access to charging infrastructure, the type of trips made, and so on.

Telematics or a trip logging app comes in very handy to map all these things for potential candidates, helping you make an informed selection.

The key to a successful EV story is providing enough infrastructure. Not battery size, but the proximity and charging speed of charging stations is crucial to tackle (perceived) range issues. Telematics helps you pinpoint the ideal location for the installation of such stations, considering the routes and patterns of your fleet.

With bigger EV fleets, planning and monitoring is crucial to avoid a system overload or a lack of charging stations at peak usage. Charging stations connected to a cloud platform allow you to prioritise certain vehicles and monitor state of charge (SOC). Also, connected domestic wallbox chargers allow you to reimburse electricity used for charging at the employee’s home.

Connected vehicles send out business critical data such as remaining range. This can help you better plan routes, charging intervals and assignments. The state of charge (SOC) and available charging speed at a charging station tell you how much downtime you need to calculate in.

Car makers like Nissan and Renault build EVs that can be integrated in the electricity grid to act as power storage units. When electricity is cheap and abundant, the batteries are charged, but at times of peak demand, the EVs can release electricity back into the grid and make money. The added value for the grid operator is balance and storage capacity for renewable energy.

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SAFETY

Latin NCAP: local assessment for local cars The typical Latin American fleet car is built locally and relatively low-tech, especially in the safety department.

Latin NCAP is changing that by independently distinguishing safe from unsafe, applying both international methodologies and localised criteria.

Dieter Quartier

M

ost global fleet managers are familiar with safety assessment organisms EuroNCAP in Europe, ASEAN NCAP in South East Asia and NHTSA in the USA. Fewer are the ones that know of the existence of a New Car Assessment Programme for Latin America and the Caribbean, called Latin NCAP. It was founded in 2010 as a joint initiative and in 2014 was established as an association under legal entity framework. Based on internationally established methodologies, Latin NCAP awards vehicles with a safety rating between 0 and 5 stars, indicating the protection the cars offer to adult and child occupants.

Local cars, local standards The crash tests are similar to those applied by Euro NCAP: there is a front offset deformable barrier test carried

out at 64km/h and a side mobile barrier test at 50km/h. The protection of both adult and child occupants is tested by means of standard-sized dummies. The pressure sustained by the dummies on each of their body parts translates in coloured zones ranging from red (poor) to green (good).

Not everything is a copy-paste story, though. The side pole test is only performed by Latin NCAP if the car is equipped with lateral head protection, i.e. side bags and/or curtain bags. Only if a car offers these airbags as standard and passes the test does the car get five stars.

Also, Latin NCAP does not assess pedestrian protection. Nor does it give a separate rating for safety assist.

Regarding the latter, Latin NCAP takes into account the (limited) technology currently available on new cars sold in

Latin America and the Caribbean and includes it in the Adult Occupant rating.

Autonomous Emergency Braking (AEB) is not offered on most Latin American built cars and thus not taken into account. Electronic Stability Control can be had as an optional extra in Latin America, though, and is therefore assessed. If it is available on the majority of the models sold or if it comes standard, it adds to the star rating.

Indeed, Latin NCAP stars are attributed according to criteria that are different from the Euro NCAP’s, because cars sold in the EU are more advanced.

Today, you can get four Latin NCAP stars with just two airbags. That is likely to change: although mostly unavailable today, side airbags and curtain bags significantly contribute to the protection of head and thorax in a lateral collision and save lives.

The latest test results In July 2019, Latin NCAP published the test results of two popular B segment models, the Toyota Etios and the Fiat Argo/Cronos. The Toyota Etios, which is manufactured in Brazil, got four stars for Adult and Child Occupant Protection. It comes with two airbags, seat belt reminders on both front seats and Electronic Stability Control as standard.

The Fiat Argo/Cronos, which is built in Brazil and Argentina and comes with two airbags as standard, received a luke-warm three-star rating due to the weak chest protection in the side impact test and the lack of ESC availability on a sufficiently large number of models. It does offer a good child occupant protection, partly because the passenger airbag can be deactivated.

22 #04 - SEPTEMBER 2019

Like Euro NCAP, Latin NCAP distinguishes safe from unsafe vehicles and pushes car makers to up their game by gradually raising the assessment bar.

Local approach, same goals Even though Latin NCAP has different criteria to accommodate for the typical locally built volume cars, it has the same goals as Euro NCAP. It wants to distinguish safe from unsafe vehicles to direct consumers towards the better car, thereby pushing car makers to up their game to stay com-

petitive. It also gradually raises the assessment bar to make sure the safety level of cars keeps improving as technology evolves.

“Manufacturers are reacting to Latin NCAP tests offering safety levels beyond regulatory requirements,” says Alejandro Furas, Secretary General of Latin NCAP, commenting on the latest test results (see box out).

“We make a call to all governments of the region to make independent consumer safety information mandatory and available to consumers in all new cars, with no minimum of star rating requirement. With this, vehicle safety will voluntarily improve very fast in the region and many lives will be saved,” concludes Ricardo Morales Rubio, Latin NCAP Chairman.

Top safety tips for fleets 1. Latin NCAP stars are not Euro NCAP stars: they are based on less stringent criteria that take into consideration the typical volume cars in Latin America.

2. Five Latin NCAP stars mean the car comes with Electronic Stability Control (ESC) and side impact head protection system (side bags, curtain bags) as standard.

3. Many Latin American-built B-segment cars do not offer ESC, whereas the equipment is mandatory in Europe.

4. Investing in safety is investing in your business. The return on investment is evident from the first accident – that may not even have happened if you opted for an ESC-equipped car.

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ADVERTORIAL CONCEDED EDITORIAL SPACE

Cruze Premier is the first car with on-board wifi Cruze Premier is the first car with on-board native wifi on the market. It is also better equipped than ever before.

High-speed automatic connection and the possibility of connected services on the car’s screen completely change the user experience.

“We are used to accessing wifi at home, at work, in the restaurant. Why not in the car? Studies show that Brazilians are the most connected people in the world and spend on average two hours and a half in traffic of big cities every day.

On-board wifi completely changes the user experience inside the car,” says Carlos Zarlenga, GM South America president.

Besides not having to use their smartphone data plan to access the web, Cruze Premier users also have a signal up to 12 times stronger when commuting that can provide high-speed automatic connection for up to seven devices simultaneously.

MyLink MyLink (Cruze Premier’s multimedia system) has been updated to the latest generation. It has a better graphic resolution for the 8-inch screen, higher processing speed and new functionalities like connected navigation, a digital owner’s manual and an icon for online maintenance scheduling.

The new MyLink also allows simultaneous pairing via Bluetooth for up to two mobile phones, it brings an extra USB port on the centre console and wireless charging that supports a wider range of mobile phones. It also includes a driver recognition system – the car identifies which of your electronic keys is in control and automatically sets the screen content to the preferences saved by each user (e.g. apps and radio stations).

personality to the car. The internal finish is more sophisticated, with an emphasis on premium surfaces in black and light brown.

The stop/start system, which turns off the engine at traffic lights to save fuel, can be turned off at the push of a button.

There is a high-definition reversing camera and new equipment such as the automatic emergency braking system with pedestrian detection. The model equipped with a turbo engine also has automatic transmission as standard.

Reference The Premier version also adds systems that have made the Cruze a reference in the medium-sedan category in terms of performance, technology, connectivity and safety, such as the forward collision warning, blind spot warning and active lane keeping assistance.

The front of the Cruze has been redesigned and now includes a highlighted bow-tie logo. The tail lights create a compelling 3D effect and the 17” wheels from the Premier Version give the car more character.

With all these new features, Cruze Premier complements the model range in the country and introduces a new standard of sophistication and connectivity to the market.

On top of that, it keeps the Android Auto and Apple CarPlay systems compatible with the latest smartphones.

Premium surfaces Cruze Premier arrives to Chevrolet car dealers in Brazil as of September in the Sedan and Sport6 trims. The new top-ofthe-range model has also been updated to bring much more

For further information about Chevrolet models, access the site: www.gm.com

SAFETY

Safety as core in the mobility policy Most companies have a safety policy of some kind, but many times it is related to the main activity of the company and not always has been thought of as a core aspect of a mobility policy. But this is changing.

Jose Luis Criado

C

orporations are acknowledging that the most dangerous activity they ask an employee to perform is to drive a vehicle, and the mobility policy should consider this. For many years safety was aiming at reducing accidents, which is good, but not enough. Regarding a safety policy in a company, there is only one possible objective, and that is totally eradicating accidents, or what is the same: “Objective ‘0’ accidents”.

Having said that, we all know that safety is a process, a road with no finish line.

But when you are talking about people’s safety, no other target is good enough.

We also know that such an ambitious objective needs ‘buy-in’. Acceptance and support from management requires a business plan. The measurable economic results are not just to be promised but achieved and reported regularly. And here is where the good

news start. In my experience, there is nothing more motivating for employees than being proud of how their companies care about them.

Furthermore, the cost saving impact of an ambitious safety policy never ceases to surprise me.

The origin of accidents is not a mystery.

An easy approach is grouping them in three areas, the road, the vehicle and the driver.

Like serpentine roads in the Andes Mountains, safety is a road with no finish line.

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SAFETY

Regarding the roads and in this group we include the overall infrastructure, their quality, state of maintenance and the lack of uniformity throughout different regions, there is little a fleet manager can do. So we´ll leave it at that.

Regarding the vehicle, of course you can chose your fleet with safety as a primary criteria, you can keep the vehicles well maintained and you can

But where the biggest difference is made is working on the behavioural aspects of the staff. Safety should be a constant 360º attitude and a good mobility policy should address it as such.

Some aspects should be treated in a punitive manner and should become almost hygiene. Examples are speeding, drugs and alcohol, seat belts, texting while driving…Tolerance should be ‘0’ and consequences should be immediate

A prudent driving attitude has immediate effect in accidents avoidance, reduced fuel consumption, efficient routing, reduction of idling, reduction of downtime and much more. avoid overextending their life cycle.

And that is good. In fact, company cars are better equipped than the average car in all markets I know. The average age of a company car is way lower than the country’s park and normally the maintenance schedules are followed, especially if the fleet is outsourced.

So, we can conclude that in general, companies and their fleet managers are doing a good job at eliminating accidents originated by the vehicle.

And then there is the driver. Here is where lots can be done, there are a lot of possible improvements and where the untapped savings are generated.

A policy can and should require checking technical skills of drivers and include safety driving courses with periodical refreshments for the ones needing it.

26 #04 - SEPTEMBER 2019

and clear, reaching the level of cause for firing, when appropriate. It is important that staff know it is so.

Other aspects work better on a motivational or even inspirational manner.

These are where most improvements are made and savings should be measured to be able to claim them as part of the result of an efficient mobility management. A prudent driving attitude has immediate effect in accidents avoidance, reduced fuel consumption, efficient routing, reduction of idling, reduction of downtime and much more.

Tools can help to achieve these and should be used.

As an example, if a fleet manages to reduce the average number of days per year the vehicle is unavailable for use, say from five to three, the reduced

productivity of the driver, plus avoidance of replacement vehicles costs etc., we should be able to quantify these savings and claim and report them.

It all starts with a project plan to be presented to management for approval.

And we all know that a good business case is essential to getting any policy not just approved but really supported by the corporation. Estimates of savings can be made and targets defined.

But at the same time that you are committing to real targets, the corporation and its management also have to make commitments. Support that is only expressed but not acted upon, becomes weak and inefficient. To start with, a good mobility policy should include all users of company vehicles from sales representatives to senior management.

There is nothing more eroding to the credibility of a safety policy, than the knowledge that a senior executive who got a speeding ticket does not face the same consequences as a junior staff member. Or a manager that suggests to the fleet manager to make an exception in applying the policy. In my opinion, exceptions are the cancer of any policy.

As said before, there is nothing more conducive to savings than the right safety attitude of people, and nothing inspires more than an ambitious target like ‘0 accidents’ that shows the top priority a company gives to its people.

Aim high with the right objective, define your policy in a way that facilitates safety and you’ll be surprised at the cascading benefits and savings. And do not forget to measure them.

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Total Cost of Mobility in Mexico: what is missing?

Mexico is a very large country with an extensive road network infrastructure filled with cars, trucks and buses, the main means of transport used between cities.

While intermunicipal buses have good coverage nationwide, municipal buses do not. Although the latter is a low-priced alternative, improvements are needed in comfort and safety.

The subway is another mean for public transportation, but implementation is expensive and time consuming. As such, only Mexico City, Monterrey and Guadalajara have subway lines. Bus Rapid Transportation (BRT) represents an emerging model. However, it does not have the safety and coverage to be an alternative for corporate mobility. Finally, planes are used for long distance travels.

In the end, when it comes to reliability and comfort, corporate fleet managers still prefer automobiles, a safe alternative for both employee and product transportation, according to corporate mobility expert Cristian López.

What does Mexico Lack?

• Sales and after sales processes not unified: Original Equipment Manufacturers (OEM’s) have nationwide coverage, but dealerships are privately owned. For fleet managers vehicle delivery is time-consuming and aftersales services represent cost uncertainty.

• Poor insurance culture: Car insurance is mandatory as from 2019 but only for interstate highways. Therefore the proportion of insured vehicles from the total in Mexico is low. This represents higher costs for car owners that do have insurance. If insurance companies had larger portfolios, they could offer more competitive prices.

• Inefficient logistics: Despite a network of some 378,923 km, Mexico lacks road infrastructure. Fast and safe highways do exist, but they require tolls.

• No regulatory standard: Like in the United States, laws for car registration and inspection in Mexico differ from state to state, something that could create difficulty for a nation-wide company.

• Software platform providers yet to mature: Only a few car-sharing and ride-sharing players exist. Ride-hailing players like Uber or Cabify are growing but still compete with traditional taxis. Currently, there are no large-scale parking providers offering payment possibilities on a nationwide scale.

VWFS Solutions Established in Mexico more than 45 years ago, Volkswagen Financial Services (VWFS) offers expert corporate mobility solutions which are both simplified and convenient, one being Full-Service Leasing, a mobility product launched in August with the support of the Miles platform developed by Sofico.

Besides Volkswagen passenger cars, light commercial vehicles, trucks and buses, the VWFS portfolio consists of the brands SEAT, Audi, Porsche, and MAN and Scania heavy duty and long-haul trucks, all of which are managed through a national dealer network supporting vehicle deliveries.

VWFS has also integrated vehicle delivery as well as Maintenance and Repair services along with its dealership network to simplify Fleet Manager processes. Other services include Relief Vehicle (Hertz), Road Tax Administration (Red T), Telematics (Lo Jack), Insurance and Extended Warranty providers.

“Besides providing the best and most simplified corporate fleet mobility solutions in Mexico, our objective is to go from Total Cost of Ownership to a Total Cost of Mobility,” says Mr López, VWFS Full Service Leasing head of operations.

For more information, please contact Volkswagen Financial Services Mexico.

Volkswagen Financial Services Mexico is a Volkswagen Financial Services AG subsidiary that includes Volkswagen Leasing, S.A. de C.V., Volkswagen Bank, Institución de Banca Múltiple S.A., and Volkswagen Servicios, S.A. de C.V. The key business fields embrace dealer and customer financing, leasing, the bank and insurance business, fleet management and mobility offers for Volkswagen, SEAT, Audi, Ducati, Porsche, MAN, Scania, Das Welt Auto and Volkswagen Vehículos WWW.FLEETLATAM.COM Comerciales brands.

27 INSPIRING FLEET & MOBILITY MANAGERS IN LATIN AMERICA

SAFETY

Driving training, a must need We all know that education is key and without a doubt, that includes making sure that the drivers in your fleet are developing the appropriate habits for safe and efficient mobility.

Daniel Bland

Making calls and texting while driving are unacceptable and drivers need to be aware of the risks.

L

atin America is a growing region with much of its population located in very large cities. To deal with the traffic and the overall hustle and bustle, many drivers have developed bad habits such as quick acceleration, abrupt braking, running red lights, the lack of turn signal usage, and using their phone while driving.

Regarding the latter, technology is a reality and it will be increasingly more present in everything we do. However, it is important to distinguish technologies that help us by guiding us to our destination and those that serve other purposes.

Making calls and texting are unacceptable and drivers need to be aware of the risks. When using GPS, Waze and similar tools, “we need to reinforce the importance of programming the tools before starting the trip,” says Fleet LatAm advisory board member Fernando Cammarota.

To improve matters, many companies have implemented training programmes within their vehicle fleet policies, but what is the best way to deliver this crucial information?

“To achieve this, we provide tools that lead to deep reflections in each training participant,” says Mr Cammarota who is also the founder of international traffic accident control company CEPA Mobility Care.

CEPA’s approach to safety has always been very comprehensive, starting with driver and operational assessments, and followed by tools specifically designed for the different types of fleets and drivers.

As analytics is crucial to reaching the right solution, the company has an integrative tool called Fleet Data Manager which allows for the complete integration and management of all safety information.

First of all, it is important to point out that behaviour change is not produced by knowledge or by the simple fact of receiving information. It is the consequence of a new consciousness, and this calls for instilling values in people.

In the end, the approach of the classes should be on a deep change in behaviour by way of awareness teaching and the technical aspects related to driving safety, says Mr Cammarota.

While in-person training has much more interaction and

28 #04 - SEPTEMBER 2019

Training Options There are several options to training (Theoretical vs Practical; Online vs In-Person). Courses can also be directed toward different types of students, such as drivers of light vehicles, heavy vehicles, motorcycles, high risk drivers, and new hires.

Case Study To shed light on a corporate driver training programme found to be successful, Fleet LatAm spoke with Csaba Csiszko, the Global Environment and Health & Safety Director for tobacco company Phillip Morris International (PMI).

The company has carried out three programmes in the last two years, all of which were part of its strategic capability building for fleet safety. Here are its takeaways.

Csaba Csiszko

Jose Luis Criado

Fernando Cammarota

awareness, online courses have less of an impact on worktime and budget, two very important aspects to consider in corporations. But is paying more to have live classes worth it?

“Yes, in my opinion. Both are actually needed to really make a long-lasting impact on an organisation,” says Jose Luis Criado, Mobility Consultant and Fleet LatAm advisory board member.

According to the consultant, the impact of live courses is unbeatable, especially the first time around. Live courses affect much more than behaviour. They impact expertise, attitude, and the awareness of different situations and unexpected reactions.

On the other hand, the consultant feels that online courses have the great advantage of reaching a much bigger audience with only marginal extra cost. Moreover, the possibility of having different course levels that can be taken throughout a longer period and the possibility of periodic updates is a plus.

Finally, the use of mobile apps is one way to push good driver behaviour following your training programme. They can monitor and control driver behaviour by working as guides to correcting mistakes.

Remember though that these are tools that may or may not be efficient, depending on how you use them. The last thing we need is another app distracting a driver while on the road.

Quality and Continuity As in all training, quality is key. Bad training can be worse than no training at all, especially in Latin America where road conditions and the civility of drivers are not always the best.

One of the most common mistakes of companies, according to Mr Criado, is believing that putting together one training session will solve bad driver behavior. “It will not. We are all humans, and this requires periodic training,” he says.

3 PMI fleet safety programmes

1. Fleet Safety Leadership Developed to ensure that all leaders understand their role in creating a culture of safety. An interactive programme which entails learning from case studies and implementing safe driving techniques.

2. Defensive Driving Course A practical behind the wheel programme aimed at building capability in the organisation for coaching in driving.

3. Online Training “Alert Driving” An ideal way to give localised content to all drivers in their own language.

Live vs Online Live classes - mainly behind the wheel programmes – are the best way to ensure that PMI is building new skills.

“Practical exercises create a learning atmosphere that online programmes could never achieve. Adults like to learn by doing,” says Mr Csiszko.

With online courses you reach thousands of drivers at once, and you can measure attendance and performance with the push of a button. The negative thing is that it is faceless, and with limited interactivity, he added.

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SAFETY

Technical and digital innovation to enhance safety Considering bad road conditions and the high incidents of traffic related deaths in Latin American cities, innovation in fleet management safety is of utmost importance in the region. Here are some to look out for.

Daniel Bland

T

o keep your drivers safe, among the considerations in your fleet management policy are vehicle selection, tyre technology, mobile apps, and other innovations.

A bit about cars While the best-selling cars in Latin America have air conditioning, power steering, and sometimes airbags, they commonly do not have features and overall standards seen in more mature markets such as the United States and Europe.

As such, among the features to consider when selecting your fleet car in the region are multiple air bags, rear-view cameras, parking sensors, emergency assisted braking AEB, electronic stability control ESC, and Isofix child-safe seats.

Another way to assure that you are building a safe fleet is by keeping an eye on cars getting top marks in frontal and side impact crash tests carried out by regional NGO Latin NCAP, the Latin America and Caribbean regional car safety assessment programme.

Although there are other car models in the region which can boast being some of the safest on roads today, among the ones worth noting are the 2019 Toyota RAV 4 with seven

Key safety features in cars today Besides multiple air bags, rear-view cameras, parking sensors, electronic stability control ESC, and Isofix childsafe seats, other key safety features include: • Forward Collision Warning: Issues alerts when there is a potential danger ahead.

• Autonomous Emergency Braking AEB: When the driver does not respond to initial alerts, the car will brake by itself and avoid a collision or at least mitigate the impact.

• Lane Departure Warning: Prevents drivers from losing focus and drifting into a different lane.

• Speed Limit Indicator: Reads speed limit signs along the road and lets drivers know when they are going too fast.

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airbags (made in Japan) and the 2019 Volkswagen T-Cross with six airbags (made in Brazil).

Among those getting top marks last year were the 2018 Fiat 500X with six airbags (made in Italy), the 2018 Seat Arona with six airbags (made in Spain), the 2018 Seat Ibiza with six airbags (built in Spain), and the 2018 Volkswagen Virtus with 4 airbags (built in Brazil). You will find more about this topic on pages 21 and 22.

A good set of tyres Just like walking without a good pair of shoes, vehicles should not be on roads without a good set of tyres, something that not only optimises safety but fuel efficiency and in turn, total cost of ownership.

Besides keeping your tyres calibrated with the right amount of air and replacing them in the appropriate amount of time, one of the best innovations today are tyre designs that evolve as they wear out, thus retaining road holding performance instead of losing grip and becoming less safe.

Another ongoing trend in the industry is the marriage of tyre and telematics companies. Among those are Michelin acquiring telematics provider Masternaut and Bridgestone acquiring TomTom Telematics, not to mention other companies such as Pirelli, Continental and more.

It is through alliances like these that data such as tyre grip, tyre pressure and vibrations can be collected in the cloud for further analysis. Individual vehicles can then be alerted over the air, for instance to direct them to a tyre shop but also to warn for road bumps and slippery areas, for instance.

Ultimately, advanced vibration analysis can predict failure of a tyre or even parts of the suspension.

Mobile apps Finally, among the other factors improving fleet management safety today and on into the future are the slew of mobile apps and other technologies coming into the market.

Among them is Base Operations, an app that lets drivers visualise a ‘security heat map’ in selected cities, advising them of the safest route to take. Among the cities it is providing services for are Mexico City, São Paulo, Rio de Janeiro, Santiago, Montevideo, and Buenos Aires.

The acquisition of telematics companies by tyres manufacturers will enhance in-depth tyres analysis and the real-time information for the drivers.

Ride-hailing services, as Beat, include emergency call service into their apps giving the opportunity to their user to call emergency authorities at the tap of a button.

The mobile app Base Operations helps drivers to select the safest road through the visualisation of a ‘security heat map’.

In Latin America, especially Mexico and Brazil, app-based ride hailing services are quite popular and the leading company in the region is Uber. To improve safety, the company has implemented a “Call 911” service into their app which immediately shares current location and travel information with local 911 authorities at the press of a button. This is a feature that could be implemented into other app-based services.

Finally, Latin NCAP has kicked off its own mobile app recently.

As of December 2018, would-be car buyers can access vehicle safety test results information directly from smartphones. Latin NCAP periodically published results on more than 100 vehicles in nine test phases.

To sum up, remember that optimising safety in fleet today not only requires innovation from big players such as automakers and tyre companies, but also from new-comers and even NGOs. By working together to solve today’s problems, we will see a more mature market in Latin American and offer fleets that are safer and more efficient.

Other mobile apps for better safety & security • Ride-hailing for women only: Lady Driver (Brazil); Laudriver (Mexico); She Drives Us (Chile) • Ride-hailing with emergency call service: Beat (Colombia, Chile, Mexico) • Ride-hailing specifically for un-serviced – dangerous – urban areas: Jaubra (Brazil) • Multiuse tool which maps out road hazards such as roadblocks, floods, and potholes: Waze (International) • Organises the pick-up of children at schools, providing a more streamlined and safer option for families: Filho sem Fila (Brazil, Paraguay) • On-demand - per minute - car insurance with driver behaviour monitoring: Onsurance (Brazil)

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SAFETY

Facing vehicle theft in Latin America One of the main concerns of corporate fleets in Latin America is vehicle and cargo theft, especially in the larger markets of Brazil and Mexico.

Daniel Bland

I

n Brazil, home to 51.8 million vehicles, approximately 500,000 vehicle thefts are reported every year. Among the models most stolen are the Fiat Toro pickup, Volkswagen Voyage sedan, and subcompact hatchbacks Hyundai HB20, Volkswagen Gol, and Fiat Palio.

“In fact, many fleet operators in Brazil are more focused on mitigating the risk of theft as opposed to improving efficiency by reducing operational costs,” local expert Fabio Acorci told Fleet LatAm. One thing to watch out for, according to Mr Acorci who is the corporate commercial director for multinational vehicle tracking and recovery company Ituran, is that many drivers are uninsured.

Only about 30% of the cars in the country are covered.

In Mexico where there are approximately 41.7 million vehicles, insurance companies received about 93,000 stolen vehicle reports, up from 91,000 a year ago and 74,000 two years ago.

However, this is only a fraction of the true number as only about 30% of the vehicles in the country are insured. The most stolen brand is Nissan, being the Versa and Tsuru sedans and the NP300 pickup.

Carjacking occurs more frequently with cars such as the Kia Sportage SUV, Kia Rio sedan, and Hyundai Grand i10 hatchback. Most of these occur in the state of Mexico.

“Fleet management in Latin America is a bit different than other parts of the world such as Europe. Things such as

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Half a million vehicles are reported stolen in Brazil each year.

safe driver management are important, but security is really the foundation of fleet management in the region,” says Fleet LatAm advisory board member Gustavo Ladeira.

Mr Ladeira is also regional chief business development officer for multinational vehicle fleet and asset management company Pointer Telocation.

To protect your fleet vehicles as well as your drivers, among the strategies fleet managers can implement in their corporate fleet policies to help reduce or even eliminate vehicle or cargo theft are getting the appropriate insurance coverage, implementing vehicle tracking software, and scheduling driver awareness classes. See more in the box below.

Five tips to securing your vehicles

1.

Acquiring full-coverage insurance

2.

Implementing vehicle tracking software

3.

Scheduling driver awareness classes

4.

Consider the option of an armoured car

5.

Schedule your business trips appropriately

Everyone has an angle.

Safety is ours.

Safety is good for business.

A simple collision in a car park can result in up to eight times the cost of fixing the damage to the car.

Time and business lost, increased insurance premiums, incident reporting and the associated paperwork are the real costs behind low-speed collisions in the city.

With our latest update to City Safety we have added steering support to help the driver take evasive action when required.

Our focus is making your life easier, protecting your investment and saving money where it matters most – on the bottom line.

VOLVOCARS.COM/FLEETSALES

Official fuel consumption for the Volvo XC60 range in l/100km: Urban 6.1 – 10.2, Extra Urban 5.0 – 6.8, Combined 5.4 – 8.0. CO2 emissions 143 – 183 g/km. Fuel consumption figures are obtained from laboratory testing intended for comparisons between vehicles and may not reflect real driving results. Models may vary depending on market.

SAFETY

Underinsurance in Latin America Only about 25% of the motorists in Latin America are driving with insurance other than mandatory third-party liability coverage, a risk that all fleet managers must be aware of in the region.

Daniel Bland

T

his rate is significantly lower than developed countries such as the United States and the larger economies throughout Europe but why?

Regarding the two largest automobile markets in the region, Brazil (US$9,324 GDP) and Mexico (US$9,120 GDP), have rates of no more than 30%.

For the most part, lower GDP per capita means lower insurance premium penetration in a country. For instance, while Chile (US$13,722 GDP per capita) has a rate of some 36%, Guatemala (US$4,567 GDP) has a rate of approximately 14%, according to a seven-country study carried out by Fleet LatAm last year.

While reducing the overall risk in your fleet and having the appropriate insurance can save lives and maintain the wellbeing of drivers, remember that it also comes down to business, says Eric Pulido who is partnership deputy director for the Mexico unit of international insurance company AXA. With more controlled risk, accident rates fall, insurance is cheaper, deductible payments are less frequent and vehicle resell values increase, Mr Pulido told Fleet LatAm during our latest chat on the insurance scenario in the region.

FleetLatAm: What are some of the things fleet managers are doing to reduce fleet operating cost?

Eric Pulido: Many fleet managers already have GPS systems aimed at tracking vehicles in the case of robberies. This certainly increases the chance of recovering a vehicle and, of course, reduces risks and insurance premiums.

However, there are devices that do much more than that. For instance, vehicle maintenance alerts or data mining to track driver behaviour and encourage safer driving are up and coming trends. The latter is quite relevant in terms of fleet profitability if it is well implemented.

A good strategy could entail giving drivers an option to sell after X amount of years (drivers will take more care of the vehicle), or simply encouraging “road safety� culture through communication.

FleetLatAm: How can AXA help with these strategies?

Eric Pulido: Well, in terms of communication, something that we have been doing with a large fleet in Mexico is using claims data to identify risk trends and create specific awareness initiatives for users. This exercise has even helped us identify locations where accidents most frequently occur and, in turn, has allowed us to improve our service level agreements for claims.

Eric Pulido, partnership deputy director Mexico Unit, AXA

I don’t believe there’s a ‘one-size-fits-all’ solution for all fleets, but my suggestion would be to find an insurance company that can become your partner, and not only a risk policy supplier. In the end, both interests need to be fully aligned towards safety and a better usage of the vehicle.

FleetLatAm: Only about one in four people have insurance in Latin America. Why do you think the rate is so low?

Eric Pulido: In Mexico, where three out of ten vehicles have insurance, one of the main problems is that two thirds of the car accident cases are actually paid by the families of the victims and this worsens the situation of poverty in the country.

To me, besides a large part of the population being financially strapped, the lack of insurance coverage in the region stems from a culture that is not really focused on implementing preventative measures, a lack of enforcing third party liability coverage, high cash usage in the country, and simply the overall absence of insurance awareness.

FleetLatAm: And what can be done about it?

Eric Pulido: I strongly believe that the burden of increasing insurance coverage should not only be put on the insurance companies. All actors in and around the transportation and mobility sectors must contribute.

Besides regulators focusing more on enforcing the usage of insurance, vehicle financers and car dealerships should make stronger efforts to reduce insurance distribution costs to increase value for money for customers.

As for insurance companies, we should work on developing simpler products, offering policies with more usage for the population and those with easier claims processes.

Insurance Coverage, top 5 markets Despite third-party insurance (TPI) liability coverage being mandatory throughout most of Latin America, only about 58% of the cars in the region have it. Some 25% of all cars opt for extra coverage.

Brazil Known as DPVAT, covers bodily injury from traffic accidents involving insured vehicles or unidentified vehicles.

Approximately 30% of the cars in the country have extra coverage.

Mexico As it has only been required since January 2019, mandatory TPI is new for the country. Some 28% of vehicle have extra coverage.

Argentina Automobiles, trailers and semi-trailers must have coverage, whether being transported or not. Approximately 20% of vehicles have extra coverage.

Colombia Covers all victims suffering personal injury from an accident.

Only around 17% of vehicles have extra coverage.

Chile TPI must be contracted by the owner of any motorised vehicle or trailer. Approximately 35% of vehicle have extra coverage.

Insurance companies in Latin America

In terms of Mexico, more than half the adult population does not have a bank account so acquiring insurance may be a bit difficult. As such, insurance companies should work on financial inclusion strategies to serve a larger part of the population.

International

LatAm-Based

• Mapfre (Spain)

• Porto Seguro (Brazil)

• Zurich (Switzerland)

• Suramericana (Colombia)

• Allianz (Germany)

• Triple-S (Puerto Rico)

• AXA (France)

• Grupo Nacional Provincial

Overall, we should increase collaboration and communication among the private and public mobility sectors by having one common goal in mind. This will ensure the sustainability of all businesses and, more importantly, protect and preserve the lifestyle of many families.

• Liberty Mutual (United States)

(Mexico) • Provincia (Argentina)

This is only a partial list of some of the main companies.

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CONNECTED

Building a safe LCV fleet While sedans, SUVs, and hatchbacks are key to mobilising staff, companies cannot overlook the important role of pickups, vans, and other light commercial vehicles (LCV) in their fleet.

Daniel Bland

I

t is these utility vehicles which keep businesses operating, but what is needed to make sure they are being driven in the most efficient and safest manner and is Latin America doing enough?

Some of the most popular tools for managing fleet today are those offering telematics and connectivity. With these types of companies sprouting up from all corners of the globe, it does seem that the industry has got the knack for collecting vast amounts of data.

However, fleet managers need to know how to make the best use of this crucial information, especially with their operational fleet where looking for cost effective solutions is an ongoing task.

36 #04 - SEPTEMBER 2019

Go for prevention Currently, one of the most important use cases of these technologies in Latin America involves tools aimed at preventing accidents. One such tool is Go Talk which is an add-on to the open and expandable fleet management platform offered by international telematics company Geotab.

It is an in-vehicle driver coaching solution that enhances driver and fleet safety by providing spoken word alerts to drivers while on the road in real-time.

As it enforces safe driving habits, ROI is achieved by reducing the incidence of accidents and visits to vehicle repair shops.

Another feature of the fleet management platform is the Hazardous Driving Area tool. It publishes real time and historic data that pinpoints locations along roads which are prone to accidents, and then ranks hazardous driving areas.

Security & Innovation In addition to curbing the incidence of accidents, one of the concerns of LCV fleet managers is reducing the occurrences of robberies, according to Fabio Acorci who is the corporate commercial director for multinational vehicle tracking and recovery company Ituran. “For cargo truck drivers, the bottom line is cutting down on the incidence of robberies, and that means the theft of

cargo as well as the truck itself,” Mr Acorci told Fleet LatAm. Among the innovative companies changing the name of the game is global ride-hailing company Uber which has recently started to offer freight delivery by way of “less-thantruckload shipping”.

By using its fleet management software, it matches trucks that have available space with people who need to ship more than a package but less than a full truck.

Among the safety features which make up part of the Uber fleet management software are Call 911, Risky Trip Blocking, and 24/7 Support, according to Charlotte Serres who is Uber’s head of safety and compliance in Latin America.

Call 911: This button gives driver partners the option to connect directly to the local emergency authorities through the app in case of an emergency. By pressing the button, the application shows the current location and travel information so that the user or driver can share it quickly with the local authority.

Hazardous driving conditions are a main factor for road accidents and fatalities in Latin America.

24/7 Support: The company has a support team, 24 hours a day, 7 days a week, to respond to reports that are made through the app (e.g. forgotten object, road incident, or in the case of greater emergencies).

Common LCV safety features • Cameras: Rear bumper cabin area, helmet (for motorcycle delivery) • Sensors: Parking, Motion detection

Risky Trip Blocking: Through automated algorithms, Ms Serres stated that Uber blocks certain trips of possible risk to the user or the driver partner through a technology of autonomous learning.

This technology was developed by a team of scientists, researchers, engineers and experts aimed at foreseeing and reducing the likelihood of risky incidents.

“Moreover, Uber does share information about trips requested through the application whenever relevant law enforcement authorities present an official request during a criminal investigation,” Ms Serres told Fleet LatAm.

Last Mile Micro-Mobility Delivery • Bicycle: Customised to hold non-perishable foods or other products. E-bikes are new option.

• Trike or Tricycle: Larger storage capacity. Climate control (heated or cooled) storage.

• Motorcycle: A quick and easy way to deliver products. Known as “motoboys” in Brazil.

• Tuk Tuk: Covered, motorised three-wheel vehicle. More common in Asia but expanding idea.

• E-Scooter: New in Latin America but growing rapidly. Common for university students.

• Drone: Very new in Latin America. Hindered by loosely defined regulation.

• Stolen vehicle tracking hardware/software • Special Upfitting: High roof racks with drop-down ladder support, secure-lock shelving • Armoured vehicles: Less common but used by those with valuable cargo.

Food delivery is very common with these models (e.g. Uber Eats, Rappi, iFood, and pizza shops).

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CONNECTED

Connected features for more safety Driving a car is not just about getting from A to B, it’s also a matter of staying clear from danger and protecting your assets. These novelty features connect you to the outside world to make your trip safer and more comfortable.

Dieter Quartier

1

Tesla: Sentry Mode: detecting suspicious movement around the car The vehicle’s surround cameras detect any suspicious movement when the car is parked. If a minimal threat is detected, such as someone leaning on the car, Sentry Mode displays a message on the touchscreen warning that its cameras are recording.

If a more severe threat is detected, such as someone breaking a window, the car alarm goes off and the owner is warned through the app. A video recording of the incident can be downloaded.

2

Apple CarPlay and Android Auto: safely using your smartphone apps while driving Owners of an Android smartphone or iPhone can integrate their phone into the car’s touch screen to safely operate a selection of apps. You can stream music, make phone calls and manage messages while benefiting from real-time navigation with Waze, Google Maps or Apple Maps without removing your hands from the steering wheel. Both systems are now available in Latin America’s favourite cars, including the Nissan Versa, Chevrolet Beat, Chevrolet Onix and Renault Kwid.

3

Audi A4: Traffic Light Information: hitting all the green lights This new Audi receives information from the traffic light central computer through its on-board SIM card so that the driver can adjust the speed to match the next green light. The instrument cluster displays a personal speed recommendation as well as the remaining time to the next green light whenever the driver is waiting at a red traffic light. That should take the stress out of city driving and increase fuel efficiency as you don’t stop and accelerate all the time.

4

2020MY VW Passat: predictive cruise control: adapting the speed while saving fuel The new predictive Adaptive Cruise Control of the revamped Volkswagen Passat uses information from the navigation system and Dynamic Road Sign Display to adapt the cruise speed proactively before reaching bends, roundabouts, junctions, towns and areas with a lower speed limit. It helps avoid speed tickets but also inadequate speeds that could compromise safety while saving fuel by starting to coast well ahead.

38 #04 - SEPTEMBER 2019

5

Next-gen Volvo XC90: driver monitoring cameras: detecting distraction Distraction and intoxication are important areas of driver behaviour which need to be addressed. Volvo Cars will introduce in-car driver monitoring cameras and sensors that function as early warning indicators of distracted driving, drowsiness, or driving under the influence of alcohol or drugs. The cameras and sensors will be fitted to the next-generation 90 Series, available in the early 2020s. They will allow the car to intervene if the driver does not respond to warning signals and is risking an accident.

6

Volvo, BMW, Ford, Mercedes: traffic hazard data sharing: safety in numbers Four rival OEMs as well as HERE Europe and TomTom, plus government ministries in the European Union are teaming up in a pilot project to share live hazard alerts, such as slippery roads or poor visibility. If one car detects a hazard, the others are warned automatically through the cloud. The driver gets a warning on the instrument panel and in the satnav system. It’s a matter of time before this technology will spread to the rest of the world.

7

Chevrolet Blazer: Forward Collision Alert: better safe than sorry Safety starts with keeping enough distance to the vehicle in front of you. When the Blazer’s radar sensors detect a vehicle, a green icon is shown in the driver display.

When you close in, it turns orange – or even red when you are in danger of hitting it, should it suddenly brake. A system like this helps avoid rear-end collisions and can even save lives. It comes at a reasonable cost and therefore deserves to become mandatory in Latin America.

8

BMW i3: radius map indicating how far you can travel in each direction Electric driving is all about planning ahead and making sure you don’t end up stranded with an empty battery. The BMW i3 makes life a bit easier with the radius map: a blue cloud projected onto the map indicates how far you can get, so you can better decide where and when to charge. The indicated range depends on the drive mode (Comfort, Eco Pro or Eco Pro+), traffic conditions and the type of road, which explains the jagged lining to the cloud.

The risk of over-reliance Advanced safety features come with a risk: the phenomenon called over-reliance. When ABS was introduced, drivers initially started braking less proactively, wrongly assuming that the car would slow down faster. Electronic stability control (ESC) has been known to cause similar effects: drivers were taking corners at higher speeds than before, relying on ESC to be their guardian angel.

False expectations for ADAS systems can easily lead to misuse of the technology or – paradoxically – an increase in driver distraction, the AAA Foundation for Traffic Safety research shows. About 25% of vehicle owners using forward collision warning or lane departure warning systems report feeling comfortable engaging in other tasks while driving. The AAA therefore say OEMs have an ethical and important responsibility to accurately market, and to carefully educate consumers about the technologies they purchase.

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CONNECTED

Your ride or your life – women and safety in Latin American transport Sharing is caring, but not when it comes to female mobility in Latin America. Several security issues undermine the mobility of women, prompting them to avoid taking public or shared transport. Luckily, there is a way to get there safely.

Fien Van den Steen

Public transport Cases of sexual assault, robbery and violence are frequently reported by (female) users of public transport in most of the big cities in Latin America.

In Mexico, the government-run Women’s Institute estimates that between 300 and 350 women daily suffer from a kind of sexual aggression in public transit.

A Reuters news poll in 2015 showed that 83% of commuting women in Bogota did not feel safe using mass transit, the highest rate of Latin American cities. Not coincidently ride hailing service Uber grew in its first year after the launch in Bogota, 4 times faster compared to its launch in San Francisco.

Women often avoid public and shared transport because of safety concerns.

40 #04 - SEPTEMBER 2019

“We are keenly aware of the safety challenges in cities all across LatAm,” says Charlotte Serres, Head of Safety and Compliance, Uber in Latin America “and we are committed to doing our part by promoting safe use of our app, tackling tough issues, and mitigating any incidents.”

specifically tailored to our community.

For instance, we collaborate with ProMundo, a global leader in promoting gender justice and preventing violence, in developing sensitisation campaigns aimed at driver partners.”

Ride hailing & safety So, what makes ride hailing safer? Ride hailing allows you to (1) order a car in advance, (2) verify the identity of the driver, (3) monitor your route, (4) having a third party checking your route, (5) if anything goes wrong, most ride hailing companies offer an emergency button bringing you in contact with their call centre and/or emergency services, (6) a review system to report issues.

Charlotte Serres, Head of Safety and Compliance Uber in Latin America

Yet, ride hailing companies also face safety issues, such as the murder on a South Carolina college student, who was killed after getting into a car she mistook for her Uber, and in 2016 a woman got raped and killed by her Uber driver in Mexico City.

Taxi Yet, shared transport modes such as taxis are not without danger either.

Especially, the so-called ‘express kidnappings’ are frequently reported, in which the rider is forced (even at knifeor gunpoint) taken to an ATM to drain their bank account in favour of the driver.

Female ride hailing While classic ride hailing companies have increased their security measures after these incidents, such as giving an alert for riders to verify the identity of the driver before taking-off, some ride hailing companies have even introduced a special women-only option, which allows riders to select a female driver.

Ride hailing This is precisely why ride hailing is often mentioned as an enhancer of female mobility in Latin America. Some companies in Latin America even prefer paying the ride hailing rides for their employees knowing they are safe.

In addition, new ride hailing companies are prepared to provide woman-only ride hailing. All drivers and riders are women only. Brazil has FemiTaxi (operating in São Paulo, Brasilia and Belo Horizonte), and LadyDriver which was launched in São Paulo and operates in Rio de Janeiro. In addition, in North America similar services have been launched such as Safr (Boston).

“We approach women safety understanding that violence against women is a widespread problem in Latin America that needs to be addressed from multiple fronts,” explains Charlotte Serres. “That’s why we maintain ongoing partnerships with several NGOs and experts focused on fighting violence against women, both to support their crucial work and to develop initiatives

Safety tips & tricks from Uber

1. Check your ride Make sure to double check two important details before starting your ride, to avoid getting into the wrong vehicle: check the driver and the car information provided in the app.

2. Share your ride Riders and drivers can send their trip details to loved ones who can follow along and know when they arrived safely.

3. Always rate and report Riders and drivers can report through the app safety issues at all hours of the day and a support team will respond and take action to hold them accountable.

This may lead to the user losing access to the app of Uber.

4. Emergency button Available throughout the region for riders, driver partners and delivery partners through the Uber Eats app.

Safety tips & tricks in general 1. Call a taxi in advance.

2. Wait inside for your ride.

3. Insist on using the meter or agree on a price in advance.

4. Sit in the back seat.

5. Keep windows closed to avoid robbery from outside.

So, unfortunately safety issues are still undermining women mobility in Latin America, yet the transportation companies are trying to address the issues with ride hailing companies leading the pack.

6. Keep your valuables hidden.

7. If you are involved in robbery, do not resist, give what you have.

8. Trust your guts. If you don’t feel safe, don’t enter the car.

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FLEET MANAGEMENT

Driving value across Latin America For information technology and services company IBM, driving value through streamlining processes is of utmost importance and one way to do this is to capitalise on the opportunities of telematics.

Daniel Bland

Name

Michael Cuzzo

Company

IBM Procurement Services

Industry

Information Technology

Job title

Global Category Leader – Fleet & Mobility

Time at current position

Two years, 7 months

Number of countries in Latin America

All

Number of cars in fleet

± 2,500 in LatAm

M

ichael Cuzzo, Global Category Leader for Fleet & Mobility at IBM Procurement Service (IPS), helps the company manage indirect strategic sourcing from a global position as it relates to spend categories such as fleet, travel, IT, MRO, marketing, design, construction, and logistics.

In the face of strategic sourcing and improving efficiency, clients in Latin America have much in common with the rest of the world. The region, however, does have unique challenges and among them are safety, security, political instabilities, and the cost of credit.

Safety It is of primary importance that IBMers travel safely and the company has a no-nonsense approach to safety and security.

The company receives health and safety advisories and employees are expected to follow policy and procedures without fail.

“While some companies may be focused on cost cutting, it is not our main driver. We are focused on driving value through streamlining processes and developing new ways of working,” says Mr Cuzzo.

Telematics Our clients have implemented telematics solutions for a variety of reasons and among them are optimising operational efficiency and maximising cost reductions in demand management.

IBM takes the time to listen and understand the culture of its clients and approaching resistance to change in the right manner is critical to real transformation. Using a global approach to strategy, with a regional approach to managing is key.

Moreover, leaving tactical decisions at a country level is a realistic way to ensure your fleet cost savings go beyond a quick win, the executive says.

42 #04 - SEPTEMBER 2019

“I feel safe when I travel because of all the diligence IBM Security has put into place to ensure that I return to my family at the end of my travels,” says Mr Cuzzo.

Another reason would be complying with the hours of service requirement stipulated by legislation in North America, but the reason that really should top the list is safety.

There are some who do not recognise the value of integrated technologies and even a few who are considering unplugging the solution for short term cost reductions. However, this is a step in the wrong direction.

FLEET MANAGEMENT

Characteristics of growth in Latin America The fleet management market in Latin America is maturing, with global fleet managers seeing increased opportunities for policy harmonisation, outsourcing practices and the selection of new employee mobility solutions. That became clear in the results of the 2019 Global Fleet Survey of media platform GlobalFleet.com where no less than 107 decision makers of multinational companies indicated their fleet management, leasing and buying intentions.

Pascal Serres, Chairman of Fleet LatAm advisory board

A

round 6 million passenger cars are registered every year in Latin America of which 20% are acquired by corporate customers.

Among those, 250,000 vehicles approximately were bought by specialised fleet management companies in 2018.

From those numbers and surveys among leasing companies, Global Fleet estimates that the portfolio of fleet management in the region is around

700,000 cars and will continue to grow steadily in the future.

High level of globalisation intentions Main corporate customers are large international corporations (pharmaceutical and new technology in particular) expanding fleet outsourcing in Latin American and distribution companies or mining industries operating with captive structures and their own

garages. The survey provides an interesting analysis on large corporations. Most international companies interviewed have their headquarters in Europe as we had just 12% of answers located in the USA and 6% in both Brazil and Mexico. It is not a surprise but it means that global policies are drawn up outside and mainly in Europe (for our sample) and will have to be adapted to the environment.

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FLEET MANAGEMENT

In 64% of cases the responsibility for fleet management is worldwide and the intention is to move toward globalisation (another 21%).

The first difficulty for global decision makers is to find a leasing partner in Latin America as it appears to be a matter of concern in Argentina and to a lesser extend in Mexico. This is no surprise and could be explained by: • in Argentina, financing is a challenge due to high interest rates and • in Mexico, the product on offer is relatively specific and different from the one on offer in Europe.

In addition, in 44% of the cases, fleet managers interviewed indicated that their company policy does not allow to work with local suppliers and international suppliers are not present everywhere (even with their alliances).

National decisions still predominant in an innovative environment The Latin American market is crucial for all parties (OEM, lessors and fleet managers) as most customers in our survey have important fleets in Brazil and Mexico which frequently are within their top 3 countries worldwide in terms of number of cars. Company car attribution is frequent practice and the ratio of employees benefitting from a company car is close to Europe and far ahead from Asia, Africa or even North America.

On the financial side full service leasing is the dominant product by far with the second highest penetration worldwide ahead of North America where finance lease is still a popular alternative. As a consequence, we observe the highest concentration of finance suppliers with 72% of companies answering they work with less than 5 suppliers in the continent and a tendency to be more loyal than in Europe or the USA. Fleets however are not homogeneous and the diversity of brands is higher than in Europe and much higher than in North America. (43% with more than 5 brands when it is 26% in North America).

44 #04 - SEPTEMBER 2019

But, they declare more stability in terms of powertrain and a limited interest in electric vehicles. Only 24% of participants plan to increase their electric vehicles (and 31% for hybrid). In the area of innovation, micro-mobility is a new trend for Latin America and there is a strong interest in car sharing and car pooling. 43% of customers have started using telematics in their fleets.

Finally, even if two third of the sample indicate having a global policy, only half of them (one third) say they have common choices for cars (brand), leasing suppliers and financing solutions or, CO2 objectives. On the contrary, they need to have national fuel suppliers, different budgets for cars at country level, specific safety programmes and telematic development is generally a local decision too.

Harmonisation and innovation In conclusion, LatAm markets offer a lot of growth opportunities for fleet management products. That’s because fleet managers are looking for harmonised policies and innovative solutions to combat congestion, pollution and crime, especially in the region’s big cities.

Order the complete Global Fleet Survey 2019 with all results on https://shop.nexuscommunication.be/en/

4

FLEET MANAGEMENT

Mobility Culture, a need for change Fleet management maturity and a focus on safety are needed in Brazil but most of all is a drastic change in mobility culture, according to Felipe Pollilo.

Daniel Bland

Name

Felipe Pollilo

Company

Servier

Industry

Pharmaceutical

Job title

Fleet Specialist

Time at current position

One year, 3 months

Number of cars in fleet

430

Countries

Brazil

W

ith more than 15 years in the automotive industry, of which 11 years have been dedicated to fleet and mobility management, Felipe Pollilo has held the position of Brazil Fleet Specialist for France-based pharmaceutical company Servier for approximately one year and three months.

Today, he manages 430 light passenger vehicles and his goal is to make fleet management operations in Brazil more transparent, professional, and efficient. His fleet is composed of 84% operational vehicles and 16% benefit vehicles.

One of the challenges of fleet management in the country, according to Mr Pollilo, is that the profession does not have the necessary recognition. “For those in charge of managing a fleet, the key nowadays is to differentiate yourself from the rest,” he says.

It is necessary to rethink mobility. Becoming a life manager, as well as a mobility manager, is essential. For Servier, it is addressing this by implementing new management priorities focused on innovation, safety, and the optimisation of costs.

Safety A smooth-running fleet is key for drivers to efficiently carry out their activities. Although focusing on professionalism, productivity, and being economical is important, safety is one of the main pillars of good fleet management, according to the executive.

A new management model has actually been implemented at Servier Brazil which simply starts by raising the awareness of safety in the minds of its drivers.

One of the tools to optimise both safety and efficiency is telematics. “Although the use of telematics is being discussed, Servier has yet to make use of this technology. In Brazil, it is still quite difficult to get the pharmaceutical industry to fully accept telematics,” Mr Pollilo says.

Legislation When it comes to mobility, Brazil needs a radical change in its culture, and this includes changing the mindset of pedestrians as well as drivers, and especially lawmakers.

Quality education (e.g. driver training), campaigning, ostensive policing, and a proactive society are all lacking. Drivers get tickets and complain about them, but don’t really change their habits.

“What we need is stronger enforcement and more severe punishments in addition to a long-term cultural change which includes adding traffic education to the school curriculum,” says the fleet expert.

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FLEET MANAGEMENT

Working hand-in-hand with OEMs Marton Kiss, who has a logistics degree from the metropolitan university of Santos and a postgraduate degree in fleet management, has been working in the logistics and fleet industry for 18 years.

Daniel Bland

Name

Marton Kiss

Company

Diversey

Industry

Chemical

Job title

Fleet Manager

Time at current position

Two years, 6 months

Number of cars in fleet

183

Number of countries

Brazil

H

e has been the fleet manager for multinational chemicals company Diversey for the past two and a half years, currently managing some 183 vehicles throughout Brazil.

One way the US-based firm maintains safety standards in Latin America, according to Mr Kiss, is selecting vehicles in accordance with the ratings set forth the by the Latin America and Caribbean regional car safety assessment programme, Latin NCAP. “We only choose vehicles that have a positive safety rating.

Besides this, we look for energy efficient vehicles, seeking models that have low fuel consumption and low CO2 emission,” Mr Kiss told Fleet LatAm. Due to the ongoing professionalisation of fleet managers in Brazil, vehicle manufacturers have started to adopt more appropriate practices for corporate fleet solutions.

Among the most recent of them were practices adopted by Volkswagen of Brazil (VW). According to the fleet manager, Diversey needed to install an internal device in its fleet vehicles so it worked hand-in-hand with VW and its device supplier to accomplish this.

46 #04 - SEPTEMBER 2019

Following impact tests performed on the internal device, VW issued a report attesting to the safety of the device installed in the vehicle.

Telematics Currently, Diversey Brazil is using the Golsat telematics system.

Through this, fleet managers can evaluate and identify poor driving habits and, in turn, drivers with higher risks of accidents.

To reduce the number of accidents in the company, drivers are periodically called in for a recycling course aimed at improving safety and encouraging good traffic practices.

A change is needed The main challenge in Brazil is dealing with the different ways of managing traffic violations in the country. There are more than 5,000 cities and towns in Brazil, each with its own way of notifying drivers of traffic tickets and dealing with the fines.

“What Brazil needs right now is a standardisation of all the transit agencies. We need to reduce red tape and streamline operations,” says the fleet manager.

FLEET MANAGEMENT

The first-ever Fleet LatAm Conference and Training takes place in Mexico City on 23-25 September.

First fleet event for Latin America Latin America is a vast and diverse region in search of fleet management, mobility, and safety solutions, all of which will be addressed at the Fleet LatAm Conference and Training taking place in Mexico this September.

Daniel Bland

M

ade up of 33 countries stretching from Baja California in Northwestern Mexico to Cape Horn at the Southern tip of Chile and Argentina near Antarctica, Latin America and the Caribbean is a vast and diverse region in search of fleet management and mobility answers.

Although vehicle fleet management in the region is slowly maturing, there is still a slew of mobility and safety challenges which need to be resolved.

It is this need, along with a population which has grown to 658 million (up 132 million in the last 20 years), which has brought forth a significant increase in supplier offerings and an overall willingness to learn from fleet managers.

Latin America and the Caribbean has a rocky road to travel in terms of reaching the levels of more mature fleet and mobility markets such as Europe and the United States. However, it is a

48 #04 - SEPTEMBER 2019

resilient and open-minded region which we see flourishing in the years to come.

To achieve this, more expertise and the sharing of best practices is crucial, as well as a need to create a community of peers throughout the region, and the answer to filling this void will start in Mexico this September.

From 23-25 September, the first-ever Fleet LatAm Conference and Training will take place in Mexico City, an event where international, regional and local

fleet decision makers will learn from industry experts, get inspired through the demonstration of best practices and case studies, and share ideas through personal networking.

To be targeted at mobility managers, car manufacturers, and fleet & mobility suppliers such as leasing, telematics, insurance, mobility, and car rental companies, the conference (23-24 September) will be held at the JW Marriot hotel.

“The goal of Fleet LatAm is to find solutions through networking and the sharing of best practices and to disclose key industry information. Through these efforts, we will be able to create more efficient, safe and sustainable ways to provide corporate and urban mobility.�

Pascal Serres, Fleet LatAm Advisory Board chairman

4 building blocks Following a welcome on 23 September

by Fleet LatAm advisory board chairman Pascal Serres and Global Fleet chief editor Steven Schoefs, the conference will focus on four building blocks aimed at addressing opportunities and challenges in the region.

1

Internationalising Fleet & Mobility Developing a regional policy throughout the continent; benchmarking your car policy with your peers; tendering with car manufacturers; and gaining insight in the leasing landscape.

2

Making fleet safety your No. 1 priority Implementing solutions to reduce accident rates, save lives and cut costs; applying training and tools to improve safety and driver management; dealing with corporate fleet insurance; and addressing tips to achieve quick wins.

3

Understanding connected fleets Buying and implementing technology for your vehicle fleet; using driver and vehicle data to support your corporate objectives; driving costs down through driver behaviour, theft control, and mobility management; and sharing success stories.

4

Global Trends impacting Latin America Addressing the transformational trends in the fleet management, leasing, and Mobility as a Service (MaaS) ecosystems; dealing with vehicle emissions, CO2 and city bans; knowing the changing role of the fleet manager; and taking advantage of the opportunities to bring your organisation to the next level.

Training session Following the conference will be a full-day training session on 25 September, featuring interactive lectures and workshops for vehicle fleet managers who have multi-country responsibilities.

After a welcome and introduction by Fleet LatAm advisory board member

“LatAm is a fascinating, diverse and complex region for any fleet manager, coming with challenges of all types: cultural differences, lack of uniformity, little centralisation tradition, confusing terminology, undeveloped infrastructure, economic instabilities, and dealing with progressive mega cities and bubbling development trends.

The Fleet LatAm Conference and Training is a unique opportunity to meet, learn, and share experiences with industry experts, colleagues and suppliers. Don’t miss it and get better prepared for your coming challenges.”

Jose Luis Criado, Fleet LatAm Advisory Board member and head of training

and head of the training Jose Luis Criado, four lectures, a roundtable, and a workshop are scheduled in the morning.

Among the lectures are: challenges and changing roles of international fleet/ mobility managers; addressing the reality in Latin America, including constraints OEMs and fleet management companies are facing in the region; knowing the importance of measuring TCO and KPIs; and tackling the hurdles of LatAm fleet policies.

Also taking place before lunch break will be a roundtable on the open and closed-end type products offered in Latin America, and a workshop on the different fleet policies in the region and the results obtained in different companies.

After lunch, three lectures and a workshop are planned. The first contemplates a lecture and discussion on tendering at a regional level, followed by a talk on technologies in practice such as telematics, and a talk on the hard reality of safety.

Finally, a workshop addressing the existing practices on safety will be organised, followed by a closing of the training day and final evaluation.

As you can see, Fleet LatAm Conference and Training 2019 will feature talks on several key and interesting topics, answering questions related to car policy, budgeting, acquisition strategies, cost savings, data & driver management, dealing with a lack of resources, and much more.

With that said, close the office door, put on your thinking caps and networking shoes, and take a few days off to come to Mexico City. We look forward to seeing you there!

“Internationalisation is the key to more efficient fleet operations. Developing common practices not only improves cost efficiency but transparency. Learn the dos & don’ts to these and other issues at Fleet LatAm Conference 2019.”

Caroline Thonnon, CEO of Nexus Communication (Fleet LatAm publisher and conference organiser)

www.fleetlatam.com/conference2019

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FLEET MANAGEMENT

Safety is non-negotiable Present in more than 60 countries, Johnson & Johnson sure has its work cut out when it comes to organising its global fleet. Here is how the 130-year-old company takes on safety and telematics in Latin America.

Daniel Bland

Name

Thiago Foroni

Company

Johnson & Johnson

Industry

Pharmaceuticals

Job title

Indirect Procurement Manager

Time at current position

One year, 8 months

Number of cars in fleet

3,500

Number of countries

19 (mainly Brazil, Mexico, Argentina, Colombia)

H

olding the position of Indirect Procurement Manager in Latin America for Johnson & Johnson since January of 2018, Thiago Foroni is responsible for negotiating with automakers and fleet management companies, seeking to consolidate as many cars as he can under a single provider.

Currently based out of São Paulo, Brazil, he has been working with indirect procurement for approximately 12 years.

Safety First of all, safety is non-negotiable for Johnson & Johnson.

The company always seeks the highest safety scores for its fleet. This does not only pertain to cars, but also to driver behaviour.

Today, the company continuously receives reports from its current supplier about traffic tickets and fines its drivers get.

They involve speeding tickets, license plate restriction days for cities such as São Paulo, and others. With these reports, Johnson & Johnson can better manage its fleet, and develop ways to deal with the situation.

“As for dealing with bad drivers, we have special governance for this. We continuously monitor driver behaviour, and for those who are getting many tickets, we set them up with extra training aimed at bettering this behaviour. This could entail online virtual classes or live classes,” says Mr Foroni.

50 #04 - SEPTEMBER 2019

According to the executive, online training is much better in terms of improving the behaviour of a driver which has been defined as a potential risk. Face-to-face, on the other hand, is better when implementing a brand-new policy in the company, one in which a new behaviour on the road needs to be explained.

“The course, this also depends on the size of the public you want to reach. For instance, imagine we wanted to develop a course for all our drivers in Brazil (nearly 2,000 cars). This is a very large group so an online course would be better,” says the procurement manager.

Telematics Telematics has already been proven to help reduce cost, improve safety, among other things. However, according to the executive, legal issues are hindering the use of this technology.

Many questions arise. Can we really have 100% of our cars monitored? How much control can we have over employee whereabouts?

“What we need to do is speak with local legislators in each and every region to iron out the details, and this can get quite complicated,” says Mr Foroni.

WIKIFLEET

Maintaining safe fleets in Chile With a total fleet of more than 4.5 million cars (approximately one in four inhabitants), Chile is home to some of the safest fleets in Latin America.

Daniel Bland

Chuquicamata in Chile, the world’s biggest open pit copper mine asks for a special blend of fleet vehicles.

O

f the top seven countries with the largest fleets in the region, the Andean country is ranked second in terms of cars requiring the most safety features.

Among the characteristics only required in Chile and Ecuador (ranked No. 1) are visual and sound alerts for seat belts, anchored seats, frontal collision protection, and lateral collision protection.

That is a good thing considering the large number of vehicle models in the country. Chile and its 18 million residents have 90 different brands from 27 countries to choose from.

Moreover, it has the fifth largest automobile fleet in Latin America, only behind Brazil, Mexico, Argentina, and Colombia.

Another factor contributing to fleet safety is insurance. In Chile, approximately 35.5% of the cars are insured. This may not seem a lot compared to countries in Europe and the United States, but it fares quite well in the region.

While full-coverage insurance is not mandatory, the country does require third-party personal accident insurance called SOAP (Seguro Obligatorio de Accidentes Personales) which consists of insurance coverage that must be contracted by the owner of any motorised vehicle.

It covers the risks of death and personal injury that are a direct consequence of accidents suffered by people in which the insured vehicle is involved.

The Makes and Models In 2018, Chile reported 417,354 new vehicle registrations, an increase of 15% year-over-year and the leading brand was Chevrolet.

As for light passenger vehicles (excluding pickups), Suzuki, Kia, Hyundai, Chevrolet, and Nissan did well. The best-selling models (including cars, pickups, and SUVs), were the Mitsubishi L200, Chevrolet Sail, Kia Rio, Kia Morning, and Toyota Hilux.

As for corporate vehicles, only about 7% of the light passenger cars in the country are for corporate use. Commercial vehicles such as LCVs and Pickups, however, account for just over a quarter of those being imported and among them with high demand are the Hyundai Tucson SUV and sedans produced

by Volvo and Audi.

LCVs (excluding pickups) such as the Peugeot Partner, Kia Frontier, Citroën Berlingo, Foton Midi, and Chevrolet N300 are also popular.

For more information on the Chilean vehicle and mobility market, visit Fleet LatAm’s Wikifleet page on the country.

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